Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

NOTE 12 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, and non-insurance risk-mitigating products through our F&I businesses, (2) the National Programs Segment, which acts as an 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 agents, 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 claims adjusting services.

Brown & Brown conducts most of its operations within the United States of America. International operations include a Wholesale Brokerage operation based in London, England, Retail operations in Bermuda and the Cayman Islands, and a National Programs operation in Canada. These operations earned $9.1 million and $4.4 million of total revenues for the three months ended September 30, 2020 and 2019, respectively. These operations earned $25.4 million and $12.4 million of total revenues for the nine months ended September 30, 2020 and 2019, respectively. Tangible long-lived assets held outside of the United States as of September 30, 2020 and 2019 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, 2019. Intersegment revenues are eliminated.

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

	Three months ended September 30, 2020
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	359,473	$	168,018	$	101,239	$	43,497	$	1,735		$	673,962
Investment income	$	19	$	205	$	45	$	-	$	80		$	349
Amortization	$	16,624	$	7,100	$	1,945	$	1,390	$	—		$	27,059
Depreciation	$	2,347	$	2,300	$	548	$	355	$	1,097		$	6,647
Interest expense	$	20,519	$	5,335	$	2,488	$	1,004	$	(16,112	)	$	13,234
Income before income taxes	$	56,057	$	47,171	$	35,038	$	6,041	$	14,221		$	158,528
Total assets	$	6,583,606	$	3,530,345	$	1,646,287	$	467,889	$	(3,432,748	)	$	8,795,379
Capital expenditures	$	5,232	$	2,203	$	1,170	$	584	$	10,693		$	19,882

	Three months ended September 30, 2019
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	337,712	$	142,854	$	87,109	$	50,106	$	902		$	618,683
Investment income	$	28	$	375	$	48	$	35	$	1,182		$	1,668
Amortization	$	15,821	$	6,264	$	2,797	$	1,390	$	—		$	26,272
Depreciation	$	1,897	$	1,779	$	422	$	315	$	1,402		$	5,815
Interest expense	$	22,287	$	3,557	$	1,105	$	1,164	$	(11,799	)	$	16,314
Income before income taxes	$	51,133	$	46,629	$	28,908	$	14,775	$	10,393		$	151,838
Total assets	$	6,155,670	$	3,315,656	$	1,406,709	$	469,292	$	(3,666,663	)	$	7,680,664
Capital expenditures	$	2,266	$	1,276	$	768	$	209	$	7,665		$	12,184

	Nine months ended September 30, 2020
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	1,119,524	$	451,098	$	267,790	$	130,879	$	1,973		$	1,971,264
Investment income	$	143	$	597	$	141	$	-	$	963		$	1,844
Amortization	$	49,363	$	20,331	$	6,326	$	4,170	$	—		$	80,190
Depreciation	$	6,530	$	6,298	$	1,446	$	1,059	$	3,503		$	18,836
Interest expense	$	63,620	$	15,212	$	6,793	$	3,137	$	(46,428	)	$	42,334
Income before income taxes	$	221,549	$	125,160	$	77,432	$	22,557	$	46,485		$	493,183
Total assets	$	6,583,606	$	3,530,345	$	1,646,287	$	467,889	$	(3,432,748	)	$	8,795,379
Capital expenditures	$	10,959	$	5,248	$	2,952	$	1,057	$	35,604		$	55,820

	Nine months ended September 30, 2019
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	1,037,681	$	384,231	$	238,789	$	150,395	$	2,086		$	1,813,182
Investment income	$	45	$	1,071	$	131	$	117	$	2,910		$	4,274
Amortization	$	46,622	$	19,217	$	8,490	$	4,089	$	—		$	78,418
Depreciation	$	5,440	$	4,990	$	1,251	$	902	$	4,933		$	17,516
Interest expense	$	64,641	$	13,134	$	3,692	$	3,239	$	(36,901	)	$	47,805
Income before income taxes	$	189,191	$	106,188	$	67,421	$	33,220	$	27,860		$	423,880
Total assets	$	6,155,670	$	3,315,656	$	1,406,709	$	469,292	$	(3,666,663	)	$	7,680,664
Capital expenditures	$	7,810	$	7,786	$	2,470	$	540	$	28,752		$	47,358