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Segment Information
 9 Months Ended
Sep. 30, 2018
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, retail operations in Bermuda and the Cayman Islands, and national programs operations in Canada. These operations earned $3.7 million and $3.9 million of total revenues for the three months ended September 30, 2018 and 2017, respectively. These operations earned $11.3 million and $11.1 million of total revenues for the nine months ended September 30, 2018 and 2017, respectively. Long-lived assets held outside of the United States as of September 30, 2018 and 2017 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, 2017. 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 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, 2018
(in thousands)
Retail
 
National
Programs
 
Wholesale
Brokerage
 
Services
 
Other
 
Total
Total revenues
$
261,087

 
$
143,519

 
$
78,009

 
$
48,105

 
$
130

 
$
530,850

Investment income
$
1

 
$
138

 
$
44

 
$
51

 
$
485

 
$
719

Amortization
$
10,754

 
$
6,736

 
$
2,878

 
$
1,269

 
$
—

 
$
21,637

Depreciation
$
1,236

 
$
1,346

 
$
385

 
$
393

 
$
1,899

 
$
5,259

Interest expense
$
7,468

 
$
6,147

 
$
1,233

 
$
846

 
$
(6,731
)
 
$
8,963

Income before income taxes
$
61,224

 
$
46,707

 
$
23,614

 
$
6,988

 
$
3,967

 
$
142,500

Total assets
$
4,651,080

 
$
2,933,465

 
$
1,272,795

 
$
448,027

 
$
(3,502,561
)
 
$
5,802,806

Capital expenditures
$
1,467

 
$
2,420

 
$
895

 
$
366

 
$
4,321

 
$
9,469

 
Three months ended September 30, 2017
(in thousands)
Retail
 
National
Programs
 
Wholesale
Brokerage
 
Services
 
Other
 
Total
Total revenues
$
234,483

 
$
127,718

 
$
71,574

 
$
41,491

 
$
380

 
$
475,646

Investment income
$
3

 
$
124

 
$
—

 
$
72

 
$
292

 
$
491

Amortization
$
10,540

 
$
6,913

 
$
2,845

 
$
1,137

 
$
—

 
$
21,435

Depreciation
$
1,262

 
$
1,412

 
$
471

 
$
402

 
$
1,942

 
$
5,489

Interest expense
$
7,216

 
$
8,304

 
$
1,515

 
$
876

 
$
(8,518
)
 
$
9,393

Income before income taxes
$
54,950

 
$
32,203

 
$
21,219

 
$
7,910

 
$
8,137

 
$
124,419

Total assets
$
4,246,422

 
$
5,026,918

 
$
1,258,783

 
$
432,331

 
$
(3,550,177
)
 
$
7,414,277

Capital expenditures
$
844

 
$
1,357

 
$
214

 
$
364

 
$
1,270

 
$
4,049

 
Nine months ended September 30, 2018
(in thousands)
Retail
 
National
Programs
 
Wholesale
Brokerage
 
Services
 
Other
 
Total
Total revenues
$
772,806

 
$
374,434

 
$
219,725

 
$
138,038

 
$
495

 
$
1,505,498

Investment income
$
2

 
$
384

 
$
125

 
$
160

 
$
1,380

 
$
2,051

Amortization
$
31,498

 
$
19,383

 
$
8,537

 
$
3,543

 
$
—

 
$
62,961

Depreciation
$
3,746

 
$
4,087

 
$
1,238

 
$
1,183

 
$
6,156

 
$
16,410

Interest expense
$
21,377

 
$
20,019

 
$
4,039

 
$
2,023

 
$
(18,772
)
 
$
28,686

Income before income taxes
$
175,984

 
$
91,809

 
$
55,544

 
$
23,889

 
$
14,625

 
$
361,851

Total assets
$
4,651,080

 
$
2,933,465

 
$
1,272,795

 
$
448,027

 
$
(3,502,561
)
 
$
5,802,806

Capital expenditures
$
5,828

 
$
7,313

 
$
1,762

 
$
798

 
$
13,158

 
$
28,859

 
Nine months ended September 30, 2017
(in thousands)
Retail
 
National
Programs
 
Wholesale
Brokerage
 
Services
 
Other
 
Total
Total revenues
$
712,739

 
$
342,576

 
$
208,812

 
$
122,397

 
$
20,507

 
$
1,407,031

Investment income
$
6

 
$
279

 
$
—

 
$
224

 
$
576

 
$
1,085

Amortization
$
31,704

 
$
20,664

 
$
8,621

 
$
3,412

 
$
1

 
$
64,402

Depreciation
$
3,975

 
$
4,975

 
$
1,438

 
$
1,191

 
$
5,663

 
$
17,242

Interest expense
$
23,918

 
$
27,257

 
$
4,803

 
$
2,783

 
$
(29,812
)
 
$
28,949

Income before income taxes
$
151,783

 
$
68,127

 
$
56,569

 
$
22,480

 
$
44,429

 
$
343,388

Total assets
$
4,246,422

 
$
5,026,918

 
$
1,258,783

 
$
432,331

 
$
(3,550,177
)
 
$
7,414,277

Capital expenditures
$
3,384

 
$
3,885

 
$
1,606

 
$
856

 
$
3,166

 
$
12,897