Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

NOTE 17 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 automobile dealer services (“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 all of its operations within the United States of America, except for 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 $35.1 million, $17.7 million and $15.2 million of total revenues for the years ended December 31, 2020, 2019 and 2018, 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. 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 intercompany interest expense charge to the reporting segment. In addition, the total assets balance in “Other” is negative, reflecting the historical accumulation of the purchase price for acquisitions which are funded at the Corporate level, net of a portion returned to Corporate through intercompany interest charges, as well as the historical accumulation of payments for income taxes, dividends, and share repurchases which are paid by Corporate, but not pushed down to the segments.

	Year Ended December 31, 2020
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	1,472,766	$	610,640	$	352,797	$	174,012	$	3,160		$	2,613,375
Investment income	$	163	$	756	$	184	$	—	$	1,708		$	2,811
Amortization	$	67,315	$	27,166	$	8,481	$	5,561	$	—		$	108,523
Depreciation	$	9,071	$	8,658	$	1,948	$	1,424	$	5,175		$	26,276
Interest expense	$	85,968	$	20,597	$	10,281	$	4,142	$	(62,015	)	$	58,973
Income before income taxes	$	262,245	$	182,892	$	93,593	$	27,994	$	57,375		$	624,099
Total assets	$	7,093,627	$	3,510,983	$	1,791,717	$	480,440	$	(3,910,275	)	$	8,966,492
Capital expenditures	$	13,175	$	7,208	$	3,324	$	1,424	$	45,569		$	70,700

	Year Ended December 31, 2019
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	1,367,261	$	518,384	$	310,087	$	193,781	$	2,658		$	2,392,171
Investment income	$	149	$	1,397	$	178	$	139	$	3,917		$	5,780
Amortization	$	63,146	$	25,482	$	11,191	$	5,479	$	—		$	105,298
Depreciation	$	7,390	$	6,791	$	1,674	$	1,229	$	6,333		$	23,417
Interest expense	$	87,295	$	16,690	$	4,756	$	4,404	$	(49,485	)	$	63,660
Income before income taxes	$	222,875	$	143,737	$	82,739	$	40,337	$	36,241		$	525,929
Total assets	$	6,413,459	$	3,110,368	$	1,390,250	$	481,336	$	(3,772,592	)	$	7,622,821
Capital expenditures	$	12,497	$	10,365	$	6,171	$	804	$	43,271		$	73,108

	Year Ended December 31, 2018
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	1,042,763	$	494,463	$	287,014	$	189,246	$	760		$	2,014,246
Investment income	$	2	$	506	$	165	$	205	$	1,868		$	2,746
Amortization	$	44,386	$	25,954	$	11,391	$	4,813	$	—		$	86,544
Depreciation	$	5,289	$	5,486	$	1,628	$	1,558	$	8,873		$	22,834
Interest expense	$	35,969	$	26,181	$	5,254	$	2,869	$	(29,693	)	$	40,580
Income before income taxes	$	217,845	$	117,375	$	70,171	$	34,508	$	22,563		$	462,462
Total assets	$	5,850,045	$	2,940,097	$	1,283,877	$	471,572	$	(3,856,923	)	$	6,688,668
Capital expenditures	$	6,858	$	12,391	$	2,518	$	1,525	$	18,228		$	41,520