Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

NOTE 15 Segment Information

Brown & Brown’s business is divided into four reportable segments: the Retail Division, which provides a broad range of insurance products and services to commercial, public and quasi-public entities, and to professional and individual customers; the National Programs Division, which provides professional liability and related package products for certain professionals delivered through nationwide networks of independent agents, and markets targeted products and services designed for specific industries, trade groups, public and quasi-public entities, and market niches; the Wholesale Brokerage Division, which markets and sells excess and surplus commercial and personal lines insurance, and reinsurance, primarily through independent agents and brokers; and the Services Division, 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 which commenced business in March 2008. This operation earned $9.7 million, $9.1 million and $9.9 million of total revenues for the years ended December 31, 2012, 2011 and 2010, respectively. Long-lived assets held outside of the United States during each of these three years were not material.

The accounting policies of the reportable segments are the same as those described in Note 1. Brown & Brown evaluates the performance of its segments based upon revenues and income before income taxes. Inter-segment revenues are eliminated.

Summarized financial information concerning Brown & Brown’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.

	Year Ended December 31, 2012
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	644,429	$	252,943	$	183,565	$	116,736	$	2,359		$	1,200,032
Investment income	$	108	$	20	$	22	$	1	$	646		$	797
Amortization	$	34,639	$	13,936	$	11,280	$	3,680	$	38		$	63,573
Depreciation	$	5,181	$	4,600	$	2,718	$	1,278	$	1,596		$	15,373
Interest expense	$	26,641	$	25,674	$	3,974	$	8,602	$	(48,794	)	$	16,097
Income before income taxes	$	145,214	$	51,491	$	43,355	$	16,770	$	47,981		$	304,811
Total assets	$	2,420,759	$	1,183,191	$	837,364	$	238,430	$	(1,551,686	)	$	3,128,058
Capital expenditures	$	5,732	$	9,633	$	3,383	$	2,519	$	2,761		$	24,028
	Year Ended December 31, 2011
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	607,199	$	164,427	$	174,158	$	65,972	$	1,786		$	1,013,542
Investment income	$	102	$	—	$	34	$	128	$	1,003		$	1,267
Amortization	$	33,373	$	7,770	$	11,032	$	2,541	$	39		$	54,755
Depreciation	$	5,046	$	2,937	$	2,594	$	590	$	1,225		$	12,392
Interest expense	$	27,688	$	1,381	$	7,495	$	5,746	$	(28,178	)	$	14,132
Income before income taxes	$	137,807	$	60,465	$	36,511	$	7,729	$	28,009		$	270,521
Total assets	$	2,155,413	$	680,251	$	712,212	$	166,060	$	(1,106,925	)	$	2,607,011
Capital expenditures	$	6,102	$	1,968	$	2,658	$	689	$	2,191		$	13,608
	Year Ended December 31, 2010
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	575,061	$	176,051	$	171,813	$	46,447	$	4,120		$	973,492
Investment income	$	170	$	1	$	29	$	15	$	1,111		$	1,326
Amortization	$	30,725	$	8,427	$	10,987	$	1,264	$	39		$	51,442
Depreciation	$	5,349	$	3,004	$	2,740	$	352	$	1,194		$	12,639
Interest expense	$	27,037	$	2,670	$	11,342	$	2,592	$	(29,170	)	$	14,471
Income before income taxes	$	128,026	$	70,264	$	29,911	$	7,693	$	30,204		$	266,098
Total assets	$	1,914,587	$	624,540	$	673,927	$	145,321	$	(957,561	)	$	2,400,814
Capital expenditures	$	4,852	$	2,377	$	1,893	$	419	$	913		$	10,454