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 $4.2 million and $3.7 million of total revenues for the three months ended June 30, 2017 and 2016, respectively. These operations earned $7.2 million and $6.5 million of total revenues for the six months ended June 30, 2017 and 2016, respectively. Long-lived assets held outside of the United States as of June 30, 2017 and 2016 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, 2016. 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, corporate-related items, including the inter-company interest expense charge to the reporting segment, and the elimination of inter-segment activities.



	For the three months ended June 30, 2017
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	238,969	$	113,675	$	71,991	$	41,580	$	90		$	466,305
Investment income	$	1	$	81	$	—	$	72	$	197		$	351
Amortization	$	10,517	$	6,847	$	2,845	$	1,137	$	1		$	21,347
Depreciation	$	1,324	$	1,604	$	477	$	390	$	1,860		$	5,655
Interest expense	$	8,126	$	8,918	$	1,613	$	946	$	(9,729	)	$	9,874
Income before income taxes	$	47,978	$	23,397	$	20,085	$	8,449	$	8,093		$	108,002
Total assets	$	4,090,094	$	2,723,177	$	1,204,184	$	396,165	$	(3,134,611	)	$	5,279,009
Capital expenditures	$	1,404	$	1,448	$	1,014	$	342	$	1,608		$	5,816



	For the three months ended June 30, 2016
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	234,560	$	108,820	$	61,287	$	41,752	$	99		$	446,518
Investment income	$	7	$	239	$	1	$	83	$	172		$	502
Amortization	$	10,893	$	6,982	$	2,591	$	1,140	$	4		$	21,610
Depreciation	$	1,616	$	2,007	$	488	$	472	$	771		$	5,354
Interest expense	$	9,986	$	11,461	$	685	$	1,327	$	(13,622	)	$	9,837
Income before income taxes	$	49,150	$	22,245	$	16,287	$	6,906	$	14,489		$	109,077
Total assets	$	3,593,733	$	2,556,293	$	1,018,689	$	327,957	$	(2,289,795	)	$	5,206,877
Capital expenditures	$	2,172	$	1,314	$	322	$	276	$	608		$	4,692



	For the six months ended June 30, 2017
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	478,256	$	214,858	$	137,238	$	80,906	$	20,127		$	931,385
Investment income	$	3	$	155	$	—	$	152	$	284		$	594
Amortization	$	21,164	$	13,751	$	5,776	$	2,275	$	1		$	42,967
Depreciation	$	2,713	$	3,563	$	967	$	789	$	3,721		$	11,753
Interest expense	$	16,702	$	18,953	$	3,288	$	1,907	$	(21,294	)	$	19,556
Income before income taxes	$	96,833	$	35,924	$	35,350	$	14,570	$	36,292		$	218,969
Total assets	$	4,090,094	$	2,723,177	$	1,204,184	$	396,165	$	(3,134,611	)	$	5,279,009
Capital expenditures	$	2,540	$	2,528	$	1,392	$	492	$	1,896		$	8,848



	For the six months ended June 30, 2016
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	466,748	$	209,890	$	114,701	$	78,320	$	1,032		$	870,691
Investment income	$	28	$	487	$	4	$	147	$	254		$	920
Amortization	$	21,882	$	14,090	$	5,033	$	2,205	$	10		$	43,220
Depreciation	$	3,253	$	3,936	$	984	$	959	$	1,540		$	10,672
Interest expense	$	20,389	$	24,051	$	932	$	2,563	$	(28,201	)	$	19,734
Income before income taxes	$	99,602	$	36,048	$	30,849	$	11,958	$	33,169		$	211,626
Total assets	$	3,593,733	$	2,556,293	$	1,018,689	$	327,957	$	(2,289,795	)	$	5,206,877
Capital expenditures	$	3,221	$	3,246	$	914	$	481	$	1,082		$	8,944