XML 46 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 9 Months Ended
Sep. 30, 2012
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 to professional and individual customers; the National Programs Division, which is comprised 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, as well as Medicare set-aside 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 which commenced business in March 2008. This operation earned $2.0 million and $2.1 million of total revenues for the three months ended September 30, 2012 and 2011, respectively. This operation earned $7.8 million and $7.2 million of total revenues for the nine months ended September 30, 2012 and 2011, respectively. Additionally, this operation earned $9.1 million of total revenues for the year ended December 31, 2011. Long-lived assets held outside of the United States during the nine months ended September 30, 2012 and 2011, respectively, were not material.

The accounting policies of the reportable segments are the same as those described in Note 1. Brown & Brown evaluates the performance of its segments based upon revenues and income before income taxes. Inter-segment revenues are eliminated.

Summarized financial information concerning Brown & Brown’s reportable segments is shown in the following tables. 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 September 30, 2012  
(in thousands)    Retail      National
Programs		      Wholesale
Brokerage		      Services      Other     Total  

Total revenues

    $ 157,824       $ 66,847       $ 50,464       $ 28,695       $ (30 )    $ 303,800   

Investment income

    $ 32       $ 5       $ 6       $ —         $ 196      $ 239   

Amortization

    $ 8,686       $ 3,286       $ 2,819       $ 1,155       $ 10      $ 15,956   

Depreciation

    $ 1,296       $ 1,204       $ 704       $ 351       $ 403      $ 3,958   

Interest expense

    $ 6,635       $ 5,737       $ 922       $ 2,981       $ (12,269 )    $ 4,006   

Income before income taxes

    $ 34,925       $ 17,989       $ 15,688       $ 2,922       $ 10,125      $ 81,649   

Total assets

    $ 2,250,245       $ 1,163,807       $ 784,736       $ 273,346       $ (1,337,405 )    $ 3,134,729   

Capital expenditures

    $ 1,376       $ 1,993       $ 471       $ 1,470       $ 928      $ 6,238   

 

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

Total revenues

    $ 151,714       $ 42,095       $ 48,169       $ 17,229       $ 1,194      $ 260,401   

Investment income

    $ 28       $ —         $ 9       $ 1       $ 279      $ 317   

Amortization

    $ 8,390       $ 1,922       $ 2,769       $ 634       $ 10      $ 13,725   

Depreciation

    $ 1,262       $ 694       $ 641       $ 155       $ 310      $ 3,062   

Interest expense

    $ 6,825       $ 263       $ 1,800       $ 1,404       $ (6,727 )    $ 3,565   

Income before income taxes

    $ 36,662       $ 16,880       $ 13,057       $ 842       $ 5,251      $ 72,692   

Total assets

    $ 2,086,900       $ 664,266       $ 718,026       $ 148,752       $ (1,056,641 )    $ 2,561,303   

Capital expenditures

    $ 1,943       $ 394       $ 235       $ 92       $ 330      $ 2,994   

 

     For the nine months ended September 30, 2012  
(in thousands)    Retail      National
Programs		      Wholesale
Brokerage		      Services      Other     Total  

Total revenues

    $ 487,047       $ 184,420       $ 141,251       $ 82,185       $ 2,299      $ 897,202   

Investment income

    $ 84       $ 16       $ 17       $ —         $ 444      $ 561   

Amortization

    $ 25,865       $ 9,740       $ 8,392       $ 3,424       $ 29      $ 47,450   

Depreciation

    $ 3,848       $ 3,482       $ 2,021       $ 880       $ 1,152      $ 11,383   

Interest expense

    $ 20,273       $ 16,740       $ 3,043       $ 8,982       $ (36,945 )    $ 12,093   

Income before income taxes

    $ 111,011       $ 43,184       $ 35,760       $ 8,527       $ 37,102      $ 235,584   

Total assets

    $ 2,250,245       $ 1,163,807       $ 784,736       $ 273,346       $ (1,337,405 )    $ 3,134,729   

Capital expenditures

    $ 4,011       $ 7,843       $ 2,357       $ 2,275       $ 2,429      $ 18,915   

 

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

Total revenues

    $ 462,629       $ 120,240       $ 135,637       $ 49,515       $ 1,424      $ 769,445   

Investment income

    $ 72       $ —         $ 26       $ 127       $ 709      $ 934   

Amortization

    $ 24,830       $ 5,769       $ 8,256       $ 1,906       $ 29      $ 40,790   

Depreciation

    $ 3,758       $ 2,218       $ 1,960       $ 434       $ 906      $ 9,276   

Interest expense

    $ 20,538       $ 1,036       $ 5,902       $ 4,392       $ (21,088 )    $ 10,780   

Income before income taxes

    $ 108,212       $ 44,309       $ 30,952       $ 5,160       $ 22,197      $ 210,830   

Total assets

    $ 2,086,900       $ 664,266       $ 718,026       $ 148,752       $ (1,056,641 )    $ 2,561,303   

Capital expenditures

    $ 5,059       $ 1,126       $ 1,852       $ 596       $ 874      $ 9,507