Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

NOTE 10· 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 service, 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 $2.3 million and $2.0 million of total revenues for the three months ended September 30, 2013 and 2012, respectively. This operation earned $8.2 million and $7.8 million of total revenues for the nine months ended September 30, 2013 and 2012, respectively. Additionally, this operation earned $9.7 million of total revenues for the year ended December 31, 2012. Long-lived assets held outside of the United States during the nine months ended September 30, 2013 and 2012 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, 2012. 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 tables. 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, 2013
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	192,845	$	77,816	$	59,324	$	30,020	$	(695	)	$	359,310
Investment income	$	19	$	4	$	7	$	—	$	55		$	85
Amortization	$	10,258	$	3,781	$	2,884	$	925	$	10		$	17,858
Depreciation	$	1,536	$	1,384	$	684	$	402	$	460		$	4,466
Interest expense	$	11,127	$	6,245	$	642	$	1,804	$	(15,683	)	$	4,135
Income before income taxes	$	37,441	$	17,450	$	20,152	$	5,763	$	14,649		$	95,455
Total assets	$	2,918,824	$	1,350,689	$	915,515	$	252,801	$	(1,883,041	)	$	3,554,788
Capital expenditures	$	1,696	$	1,349	$	277	$	639	$	369		$	4,330

	For the three months ended September 30, 2012
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	157,824	$	66,847	$	50,464	$	28,695	$	(30	)	$	303,800
Investment income	$	32	$	5	$	6	$	—	$	196		$	239
Amortization	$	8,686	$	3,286	$	2,819	$	1,155	$	10		$	15,956
Depreciation	$	1,296	$	1,204	$	704	$	351	$	403		$	3,958
Interest expense	$	6,635	$	5,737	$	922	$	2,981	$	(12,269	)	$	4,006
Income before income taxes	$	34,925	$	17,989	$	15,688	$	2,922	$	10,125		$	81,649
Total assets	$	2,250,245	$	1,163,807	$	784,736	$	273,346	$	(1,337,405	)	$	3,134,729
Capital expenditures	$	1,376	$	1,993	$	471	$	1,470	$	928		$	6,238

	For the nine months ended September 30, 2013
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	539,232	$	215,110	$	162,844	$	103,070	$	(142	)	$	1,020,114
Investment income	$	65	$	14	$	16	$	1	$	414		$	510
Amortization	$	27,858	$	10,811	$	8,668	$	2,774	$	29		$	50,140
Depreciation	$	4,278	$	3,958	$	2,107	$	1,200	$	1,353		$	12,896
Interest expense	$	22,976	$	17,529	$	2,120	$	5,608	$	(36,117	)	$	12,116
Income before income taxes	$	128,134	$	42,688	$	46,274	$	22,305	$	41,766		$	281,167
Total assets	$	2,918,824	$	1,350,689	$	915,515	$	252,801	$	(1,883,041	)	$	3,554,788
Capital expenditures	$	4,519	$	3,661	$	1,374	$	1,137	$	762		$	11,453

	For the nine months ended September 30, 2012
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	487,047	$	184,420	$	141,251	$	82,185	$	2,299		$	897,202
Investment income	$	84	$	16	$	17	$	—	$	444		$	561
Amortization	$	25,865	$	9,740	$	8,392	$	3,424	$	29		$	47,450
Depreciation	$	3,848	$	3,482	$	2,021	$	880	$	1,152		$	11,383
Interest expense	$	20,273	$	16,740	$	3,043	$	8,982	$	(36,945	)	$	12,093
Income before income taxes	$	111,011	$	43,184	$	35,760	$	8,527	$	37,102		$	235,584
Total assets	$	2,250,245	$	1,163,807	$	784,736	$	273,346	$	(1,337,405	)	$	3,134,729
Capital expenditures	$	4,011	$	7,843	$	2,357	$	2,275	$	2,429		$	18,915