Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

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; (2) the National Programs Segment, which acts as a 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, and retail operations in Bermuda and the Cayman Islands. These operations earned $13.4 million, $13.3 million and $12.2 million of total revenues for the years ended December 31, 2015, 2014 and 2013, 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 inter-company interest expense charge to the reporting segment.

Segment results for prior periods have been recast to reflect the current year segmental structure. Certain reclassifications

have been made to the prior-year amounts reported in this Annual Report on Form 10-K in order to conform to the current year

presentation.

	For the year ended December 31, 2015
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	870,346	$	428,734	$	216,996	$	145,365	$	(932	)	$	1,660,509
Investment income	$	87	$	210	$	150	$	42	$	515		$	1,004
Amortization	$	45,145	$	28,479	$	9,739	$	4,019	$	39		$	87,421
Depreciation	$	6,558	$	7,250	$	2,142	$	1,988	$	2,952		$	20,890
Interest expense	$	41,036	$	55,705	$	891	$	5,970	$	(64,354	)	$	39,248
Income before income taxes	$	181,938	$	67,673	$	64,708	$	19,713	$	68,527		$	402,559
Total assets	$	3,507,476	$	2,505,752	$	895,782	$	285,459	$	(2,181,730	)	$	5,012,739
Capital expenditures	$	6,797	$	6,001	$	3,084	$	1,088	$	1,405		$	18,375

	For the year ended December 31, 2014
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	823,686	$	404,239	$	211,911	$	136,558	$	(598	)	$	1,575,796
Investment income	$	67	$	164	$	26	$	3	$	487		$	747
Amortization	$	42,935	$	25,129	$	10,703	$	4,135	$	39		$	82,941
Depreciation	$	6,449	$	7,805	$	2,470	$	2,213	$	1,958		$	20,895
Interest expense	$	43,502	$	49,663	$	1,294	$	7,678	$	(73,729	)	$	28,408
Income before income taxes	$	157,491	$	73,178	$	8,276	$	17,870	$	82,934		$	339,749
Total assets	$	3,229,484	$	2,455,749	$	857,804	$	296,034	$	(1,882,613	)	$	4,956,458
Capital expenditures	$	6,873	$	14,133	$	1,526	$	1,210	$	1,181		$	24,923

	For the year ended December 31, 2013
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	737,349	$	301,372	$	193,710	$	131,489	$	(641	)	$	1,363,279
Investment income	$	82	$	19	$	22	$	1	$	514		$	638
Amortization	$	38,523	$	14,953	$	10,719	$	3,698	$	39		$	67,932
Depreciation	$	5,874	$	5,492	$	2,674	$	1,623	$	1,822		$	17,485
Interest expense	$	34,658	$	24,014	$	2,316	$	7,322	$	(51,870	)	$	16,440
Income before income taxes	$	161,787	$	61,223	$	47,501	$	25,791	$	61,307		$	357,609
Total assets	$	3,012,688	$	1,377,404	$	865,731	$	277,652	$	(1,883,967	)	$	3,649,508
Capital expenditures	$	6,886	$	4,810	$	1,825	$	1,811	$	1,034		$	16,366