Segment Information

Brown & Brown’s business is divided into four reportable segments: (1) the Retail Segment, which provides a broad range of insurance products and services to commercial, public and quasi-public entities, and to professional and individual customers; (2) the National Programs Segment, which acts as a MGA, provides professional liability and related package products for certain professionals, a range of insurance products for individuals, flood coverage, and targeted products and services designated for specific industries, trade groups, governmental entities and market niches, all of which are delivered through nationwide networks of independent agents, and Brown & Brown retail agents; (3) the Wholesale Brokerage Segment, which markets and sells excess and surplus commercial and personal lines insurance, primarily through independent agents and brokers, as well as Brown & Brown Retail offices; and (4) the Services Segment, which provides insurance-related services, including third-party claims administration and comprehensive medical utilization management services in both the workers’ compensation and all-lines liability arenas, as well as Medicare Set-aside services, Social Security disability and Medicare benefits advocacy services and catastrophe claims adjusting services.

Brown & Brown conducts all of its operations within the United States of America, except for one wholesale brokerage operation based in London, England, and retail operations in Bermuda and the Cayman Islands. These non-United States operations earned $3.2 million and $3.2 million of total revenues for the three months ended September 30, 2015 and 2014, respectively. These operations earned $9.3 million and $10.2 million of total revenues for the nine months ended September 30, 2015 and 2014, respectively. Long-lived assets held outside of the United States as of September 30, 2015 and 2014 were not material.

The accounting policies of the reportable segments are the same as those described in Note 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company evaluates the performance of its segments based upon revenues and income before income taxes. Inter-segment revenues are eliminated.

Summarized financial information concerning the Company’s reportable segments is shown in the following table. The “Other” column includes any income and expenses not allocated to reportable segments and corporate-related items, including the inter-company interest expense charge to the reporting segment.



	For the three months ended September 30, 2015
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	216,249	$	116,966	$	61,374	$	37,980	$	(402	)	$	432,167
Investment income	$	19	$	49	$	3	$	—	$	157		$	228
Amortization	$	11,552	$	7,133	$	2,441	$	1,022	$	10		$	22,158
Depreciation	$	1,632	$	1,850	$	506	$	474	$	753		$	5,215
Interest expense	$	10,121	$	13,398	$	200	$	1,527	$	(15,364	)	$	9,882
Income before income taxes	$	41,785	$	25,281	$	22,276	$	6,022	$	17,466		$	112,830
Total assets	$	3,400,407	$	2,542,619	$	880,454	$	296,659	$	(2,117,947	)	$	5,002,192
Capital expenditures	$	1,637	$	1,754	$	425	$	233	$	127		$	4,176



	For the three months ended September 30, 2014
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	206,504	$	117,926	$	61,620	$	35,492	$	(124	)	$	421,418
Investment income	$	16	$	48	$	9	$	—	$	152		$	225
Amortization	$	10,920	$	7,343	$	2,676	$	1,034	$	10		$	21,983
Depreciation	$	1,632	$	2,143	$	640	$	555	$	486		$	5,456
Interest expense	$	10,882	$	15,915	$	299	$	1,937	$	(21,735	)	$	7,298
Income before income taxes	$	39,823	$	20,694	$	21,750	$	5,145	$	25,273		$	112,685
Total assets	$	3,163,014	$	2,508,815	$	895,943	$	285,307	$	(1,907,331	)	$	4,945,748
Capital expenditures	$	1,320	$	5,243	$	492	$	325	$	232		$	7,612



	For the nine months ended September 30, 2015
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	657,314	$	319,577	$	168,619	$	111,128	$	(726	)	$	1,255,912
Investment income	$	62	$	150	$	148	$	1	$	347		$	708
Amortization	$	33,671	$	21,343	$	7,296	$	3,067	$	29		$	65,406
Depreciation	$	4,908	$	5,372	$	1,630	$	1,533	$	2,192		$	15,635
Interest expense	$	30,841	$	42,306	$	645	$	4,722	$	(49,110	)	$	29,404
Income before income taxes	$	137,249	$	48,567	$	53,150	$	16,062	$	52,494		$	307,522
Total assets	$	3,400,407	$	2,542,619	$	880,454	$	296,659	$	(2,117,947	)	$	5,002,192
Capital expenditures	$	4,410	$	5,004	$	2,087	$	774	$	498		$	12,773



	For the nine months ended September 30, 2014
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	626,194	$	288,087	$	165,894	$	102,891	$	(290	)	$	1,182,776
Investment income	$	48	$	119	$	20	$	2	$	333		$	522
Amortization	$	31,812	$	17,512	$	8,028	$	3,101	$	29		$	60,482
Depreciation	$	4,850	$	5,503	$	1,890	$	1,646	$	1,449		$	15,338
Interest expense	$	33,000	$	33,803	$	1,060	$	5,878	$	(55,367	)	$	18,374
Income before income taxes	$	129,213	$	47,640	$	47,863	$	12,977	$	63,610		$	301,303
Total assets	$	3,163,014	$	2,508,815	$	895,943	$	285,307	$	(1,907,331	)	$	4,945,748
Capital expenditures	$	5,016	$	12,369	$	1,205	$	860	$	739		$	20,189