Income Taxes (Tables) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Significant Components of Current Deferred Tax Assets

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for income tax reporting purposes.

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



(in thousands)	2015		2014
Current deferred tax assets:
Deferred profit-sharing contingent commissions	$	9,767	$	10,335
Net operating loss carryforwards	10		951
Accruals and reserves	14,858		14,145
Total current deferred tax assets	$	24,635	$	25,431

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

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



(in thousands)	2015			2014
Non-current deferred tax liabilities:
Fixed assets	$	8,585		$	10,368
Net unrealized holding (loss)/gain on available-for-sale securities	(9		)	56
Intangible assets	393,251			364,938
Total non-current deferred tax liabilities	401,827			375,362
Non-current deferred tax assets:
Deferred compensation	38,966			31,580
Net operating loss carryforwards	2,518			2,796
Valuation allowance for deferred tax assets	(606		)	(511		)
Total non-current deferred tax assets	40,878			33,865
Net non-current deferred tax liability	$	360,949		$	341,497

Income Tax Disclosure [Text Block]

Income Taxes

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



(in thousands)	2015		2014			2013
Current:
Federal	$	118,490	$	109,893		$	94,007
State	17,625		15,482			13,438
Foreign	430		109			805
Total current provision	136,545		125,484			108,250
Deferred:
Federal	18,416		5,987			28,469
State	4,280		1,440			3,723
Foreign	—		(58		)	55
Total deferred provision	22,696		7,369			32,247
Total tax provision	$	159,241	$	132,853		$	140,497

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:



	2015	2014	2013
Federal statutory tax rate	35.0%	35.0%	35.0%
State income taxes, net of federal income tax benefit	3.9	3.3	3.5
Non-deductible employee stock purchase plan expense	0.3	0.3	0.3
Non-deductible meals and entertainment	0.3	0.4	0.3
Other, net	0.1	0.1	0.2
Effective tax rate	39.6%	39.1%	39.3%

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



(in thousands)	2015		2014
Current deferred tax assets:
Deferred profit-sharing contingent commissions	$	9,767	$	10,335
Net operating loss carryforwards	10		951
Accruals and reserves	14,858		14,145
Total current deferred tax assets	$	24,635	$	25,431

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



(in thousands)	2015			2014
Non-current deferred tax liabilities:
Fixed assets	$	8,585		$	10,368
Net unrealized holding (loss)/gain on available-for-sale securities	(9		)	56
Intangible assets	393,251			364,938
Total non-current deferred tax liabilities	401,827			375,362
Non-current deferred tax assets:
Deferred compensation	38,966			31,580
Net operating loss carryforwards	2,518			2,796
Valuation allowance for deferred tax assets	(606		)	(511		)
Total non-current deferred tax assets	40,878			33,865
Net non-current deferred tax liability	$	360,949		$	341,497

Income taxes paid in 2015, 2014 and 2013 were $132.9 million, $118.3 million, and $110.2 million respectively.

At December 31, 2015, Brown & Brown had net operating loss carryforwards of $184,218 and $61,217,003 for federal and state income tax reporting purposes, respectively, portions of which expire in the years 2016 through 2034. The federal carryforward is derived from insurance operations acquired by Brown & Brown in 2001. The state carryforward amount is derived from the operating results of certain subsidiaries and from the 2013 stock acquisition Beecher Carlson Holdings, Inc.

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



(in thousands)	2015			2014			2013
Unrecognized tax benefits balance at January 1	$	113		$	391		$	294
Gross increases for tax positions of prior years	773			—			232
Gross decreases for tax positions of prior years	—			(21		)	—
Settlements	(302		)	(257		)	(135		)
Unrecognized tax benefits balance at December 31	$	584		$	113		$	391

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2015 and 2014, the Company had $102,171 and $65,772 of accrued interest and penalties related to uncertain tax positions, respectively.

The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate if recognized was $583,977 as of December 31, 2015 and $113,032 as of December 31, 2014. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.

As a result of a 2006 Internal Revenue Service (“IRS”) audit, the Company agreed to accrue at each December 31, for tax purposes only, a known amount of profit-sharing contingent commissions represented by the actual amount of profit-sharing contingent commissions received in the first quarter of the related year, with a true-up adjustment to the actual amount received by the end of the following March. Since this method for tax purposes differs from the method used for book purposes, it will result in a current deferred tax asset as of December 31 each year which will reverse by the following March 31 when the related profit-sharing contingent commissions are recognized for financial accounting purposes.

The Company is subject to taxation in the United States and various state jurisdictions. The Company is also subject to taxation in the United Kingdom. In the United States, federal returns for fiscal years 2012 through 2015 remain open and subject to examination by the IRS. The Company files and remits state income taxes in various states where the Company has determined it is required to file state income taxes. The Company’s filings with those states remain open for audit for the fiscal years 2010 through 2015. In the United Kingdom, the Company’s filings remain open for audit for the fiscal years 2014 and 2015.

The federal income tax returns of The Wright Insurance Group are currently under IRS audit for the year ended December 31, 2013 and the short period ended May 1, 2014. Also during 2015, the previously disclosed 2013 IRS audit of Beecher Carlson Holding, Inc. was closed with no adjustments. The Company’s 2009 through 2012 State of Oregon tax returns were under audit in 2014. The audit was settled in early 2015 with the State of Oregon for an insignificant amount. The Company is currently under audit in the State of Kansas for fiscal years 2012 through 2014. There are no other federal or state income tax audits as of December 31, 2015.

Summary of Income Tax Contingencies [Table Text Block]

$ 22,696

$ 7,369

$ 32,247

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

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



(in thousands)	2015			2014			2013
Unrecognized tax benefits balance at January 1	$	113		$	391		$	294
Gross increases for tax positions of prior years	773			—			232
Gross decreases for tax positions of prior years	—			(21		)	—
Settlements	(302		)	(257		)	(135		)
Unrecognized tax benefits balance at December 31	$	584		$	113		$	391

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

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



(in thousands)	2015		2014			2013
Current:
Federal	$	118,490	$	109,893		$	94,007
State	17,625		15,482			13,438
Foreign	430		109			805
Total current provision	136,545		125,484			108,250
Deferred:
Federal	18,416		5,987			28,469
State	4,280		1,440			3,723
Foreign	—		(58		)	55
Total deferred provision	22,696		7,369			32,247
Total tax provision	$	159,241	$	132,853		$	140,497