Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Significant Components of Provision for Income Taxes

Significant components of the provision for income taxes for the years ended December 31 are as follows:

(in thousands)	2014			2013		2012
Current:
Federal	$	109,893		$	94,007	$	75,522
State		15,482			13,438		11,852
Foreign		109			805		669
Total current provision		125,484			108,250		88,043
Deferred:
Federal		5,987			28,469		27,348
State		1,440			3,723		5,375
Foreign		(58	)		55		—
Total deferred provision		7,369			32,247		32,723
Total tax provision	$	132,853		$	140,497	$	120,766

Reconciliation of Differences Between Effective Tax Rate and Federal Statutory Tax Rate

A reconciliation of the differences between the effective tax rate and the federal statutory tax rate for the years ended December 31 is as follows:

	2014			2013			2012
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		3.3			3.5			4.3
Non-deductible employee stock purchase plan expense		0.3			0.3			0.3
Non-deductible meals and entertainment		0.4			0.3			0.3
Other, net		0.1			0.2			(0.3	)
Effective tax rate		39.1	%		39.3	%		39.6	%

Significant Components of Current Deferred Tax Assets

Significant components of Brown & Brown’s current deferred tax assets as of December 31 are as follows:

(in thousands)	2014		2013
Current deferred tax assets:
Deferred profit-sharing contingent commissions	$	10,335	$	9,713
Net operating loss carryforwards		951		8,408
Accruals and reserves		14,145		11,155
Total current deferred tax assets	$	25,431	$	29,276

Significant Components of Non-Current Deferred Tax Liabilities and Assets

Significant components of Brown & Brown’s non-current deferred tax liabilities and assets as of December 31 are as follows:

(in thousands)	2014			2013
Non-current deferred tax liabilities:
Fixed assets	$	10,368		$	11,651
Net unrealized holding gain on available-for-sale securities		56			—
Intangible assets		364,938			306,009
Total non-current deferred tax liabilities		375,362			317,660
Non-current deferred tax assets:
Deferred compensation		31,580			22,598
Net operating loss carryforwards		2,796			3,843
Valuation allowance for deferred tax assets		(511	)		(485	)
Total non-current deferred tax assets		33,865			25,956
Net non-current deferred tax liability	$	341,497		$	291,704

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in thousands)	2014			2013			2012
Unrecognized tax benefits balance at January 1	$	391		$	294		$	806
Gross increases for tax positions of prior years		—			232			222
Gross decreases for tax positions of prior years		(21	)		—			(409	)
Settlements		(257	)		(135	)		(325	)
Unrecognized tax benefits balance at December 31	$	113		$	391		$	294