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Segment Information
6 Months Ended
Jun. 30, 2011
Segment Information  
Segment Information

NOTE 11· Segment Information

Brown & Brown's business is divided into four reportable segments: the Retail Division, which provides a broad range of insurance products and services to commercial, public and quasi-public entities, and professional and individual customers; the National Programs Division, which is composed of two units - Professional Programs, which provides professional liability and related package products for certain professionals delivered through nationwide networks of independent agents, and Special Programs, which markets targeted products and services designed for specific industries, trade groups, public and quasi-public entities, and market niches; the Wholesale Brokerage Division, which markets and sells excess and surplus commercial and personal lines insurance, and reinsurance, primarily through independent agents and brokers; and the Services Division, 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, Medicare Secondary Payer statute compliance-related services, and Social Security disability and Medicare benefits advocacy services.

Brown & Brown conducts all of its operations within the United States of America, except for one wholesale brokerage operation based in London, England. Our London operation earned $2.6 million and $3.3 million of total revenues for the three months ended June 30, 2011 and 2010, respectively. This operation earned $5.1 million and $5.9 million of total revenues for the six months ended June 30, 2011 and 2010, respectively. Additionally, this operation earned $9.9 million of total revenues for the year ended December 31, 2010.

 

The following table shows summarized financial information concerning Brown & Brown's reportable segments for the three months ended June 30, 2011, and 2010. 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.

 

     For the three months ended June 30, 2011  
(in thousands)    Retail      National
Programs
     Wholesale
Brokerage
     Services      Other     Total  

Total revenues

   $ 153,135       $ 33,483       $ 43,712       $ 16,440       $ 46      $ 246,816   

Investment income

   $ 28       $ —         $ 9       $ 123       $ 233      $ 393   

Amortization

   $ 8,236       $ 2,139       $ 2,537       $ 635       $ 9      $ 13,556   

Depreciation

   $ 1,238       $ 753       $ 640       $ 147       $ 301      $ 3,079   

Interest

   $ 6,799       $ 434       $ 1,773       $ 1,479       $ (6,877   $ 3,608   

Income before income taxes

   $ 32,572       $ 7,305       $ 10,225       $ 2,587       $ 8,779      $ 61,468   

Total assets

   $ 2,063,215       $ 679,298       $ 689,729       $ 146,522       $ (1,053,892   $ 2,524,872   

Capital expenditures

   $ 1,824       $ 312       $ 977       $ 209       $ 274      $ 3,596   
     For the three months ended June 30, 2010  
(in thousands)    Retail      National
Programs
     Wholesale
Brokerage
     Services      Other     Total  

Total revenues

   $ 147,179       $ 38,304       $ 46,549       $ 9,781       $ 1,852      $ 243,665   

Investment income

   $ 57       $ —         $ 6       $ 4       $ 279      $ 346   

Amortization

   $ 7,623       $ 2,303       $ 2,554       $ 161       $ 9      $ 12,650   

Depreciation

   $ 1,334       $ 745       $ 676       $ 75       $ 299      $ 3,129   

Interest

   $ 6,676       $ 844       $ 2,676       $ 218       $ (6,782   $ 3,632   

Income before income taxes

   $ 34,460       $ 12,079       $ 11,508       $ 1,957       $ 8,009      $ 68,013   

Total assets

   $ 1,835,552       $ 638,560       $ 681,610       $ 56,924       $ (875,834   $ 2,336,812   

Capital expenditures

   $ 966       $ 1,304       $ 461       $ 155       $ 24      $ 2,910   

The following table shows summarized financial information concerning Brown & Brown's reportable segments for the six months ended June 30, 2011 and 2010. 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.

 

     For the six months ended June 30, 2011  
(in thousands)    Retail      National
Programs
     Wholesale
Brokerage
     Services      Other     Total  

Total revenues

   $ 310,915       $ 83,761       $ 81,852       $ 32,286       $ 230      $ 509,044   

Investment income

   $ 44       $ —         $ 17       $ 126       $ 430      $ 617   

Amortization

   $ 16,440       $ 4,259       $ 5,075       $ 1,272       $ 19      $ 27,065   

Depreciation

   $ 2,496       $ 1,551       $ 1,292       $ 279       $ 596      $ 6,214   

Interest

   $ 13,713       $ 998       $ 3,877       $ 2,988       $ (14,361   $ 7,215   

Income before income taxes

   $ 71,550       $ 28,736       $ 16,588       $ 4,318       $ 16,946      $ 138,138   

Total assets

   $ 2,063,215       $ 679,298       $ 689,729       $ 146,522       $ (1,053,892   $ 2,524,872   

Capital expenditures

   $ 3,116       $ 758       $ 1,591       $ 504       $ 544      $ 6,513   
     For the six months ended June 30, 2010  
(in thousands)    Retail      National
Programs
     Wholesale
Brokerage
     Services      Other     Total  

Total revenues

   $ 296,431       $ 93,303       $ 84,973       $ 18,791       $ 2,440      $ 495,938   

Investment income

   $ 117       $ 1       $ 11       $ 9       $ 539      $ 677   

Amortization

   $ 15,158       $ 4,608       $ 5,111       $ 307       $ 19      $ 25,203   

Depreciation

   $ 2,734       $ 1,509       $ 1,391       $ 146       $ 602      $ 6,382   

Interest

   $ 13,687       $ 1,832       $ 5,678       $ 432       $ (14,389   $ 7,240   

Income before income taxes

   $ 69,937       $ 36,840       $ 15,672       $ 3,423       $ 15,225      $ 141,097   

Total assets

   $ 1,835,552       $ 638,560       $ 681,610       $ 56,924       $ (875,834   $ 2,336,812   

Capital expenditures

   $ 1,750       $ 1,532       $ 954       $ 211       $ 517      $ 4,964