Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document And Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Trading Symbol | 'BRO |
Entity Registrant Name | 'BROWN & BROWN INC |
Entity Central Index Key | '0000079282 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 144,544,117 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUES | ' | ' | ' | ' |
Commissions and fees | $394,690 | $324,150 | $756,697 | $657,943 |
Investment income | 194 | 239 | 297 | 425 |
Other income, net | 2,880 | 1,403 | 4,364 | 2,436 |
Total revenues | 397,764 | 325,792 | 761,358 | 660,804 |
EXPENSES | ' | ' | ' | ' |
Employee compensation and benefits | 196,397 | 163,514 | 380,507 | 323,012 |
Non-cash stock-based compensation | 5,994 | 3,623 | 13,509 | 7,473 |
Other operating expenses | 60,546 | 47,397 | 113,007 | 93,736 |
Amortization | 20,623 | 16,121 | 38,499 | 32,282 |
Depreciation | 5,242 | 4,263 | 9,882 | 8,430 |
Interest | 7,004 | 3,997 | 11,076 | 7,981 |
Change in estimated acquisition earn-out payables | 177 | 656 | 6,260 | 2,178 |
Total expenses | 295,983 | 239,571 | 572,740 | 475,092 |
Income before income taxes | 101,781 | 86,221 | 188,618 | 185,712 |
Income taxes | 40,026 | 34,214 | 74,448 | 73,574 |
Net income | $61,755 | $52,007 | $114,170 | $112,138 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.43 | $0.36 | $0.79 | $0.78 |
Diluted | $0.42 | $0.36 | $0.78 | $0.77 |
Dividends declared per share | $0.10 | $0.09 | $0.20 | $0.18 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $309,107 | $202,952 |
Restricted cash and investments | 300,354 | 250,009 |
Short-term investments | 12,300 | 10,624 |
Premiums, commissions and fees receivable | 433,113 | 395,915 |
Reinsurance recoverable | 28,109 | ' |
Prepaid reinsurance premiums | 309,020 | ' |
Deferred income taxes | 16,312 | 29,276 |
Other current assets | 50,920 | 39,260 |
Total current assets | 1,459,235 | 928,036 |
Fixed assets, net | 86,370 | 74,733 |
Goodwill | 2,509,280 | 2,006,173 |
Amortizable intangible assets, net | 828,961 | 618,888 |
Investments | 19,194 | 16 |
Other assets | 27,432 | 21,662 |
Total assets | 4,930,472 | 3,649,508 |
Current Liabilities: | ' | ' |
Premiums payable to insurance companies | 634,797 | 534,360 |
Losses and loss adjustment expense | 28,109 | ' |
Unearned premiums | 309,020 | ' |
Premium deposits and credits due customers | 98,532 | 80,959 |
Accounts payable | 55,856 | 34,158 |
Accrued expenses and other liabilities | 137,695 | 157,400 |
Current portion of long-term debt | 6,609 | 100,000 |
Total current liabilities | 1,270,618 | 906,877 |
Long-term debt | 1,168,125 | 380,000 |
Deferred income taxes, net | 337,520 | 291,704 |
Other liabilities | 72,695 | 63,786 |
Shareholders' Equity: | ' | ' |
Common stock, par value $0.10 per share; authorized 280,000 shares; issued 145,389 and outstanding 144,544 at 2014 and issued and outstanding 145,419 at 2013 | 14,539 | 14,542 |
Additional paid-in capital | 386,233 | 371,960 |
Treasury stock, at cost 845 and 0 shares at 2014 and 2013, respectively | -25,025 | ' |
Retained earnings | 1,705,767 | 1,620,639 |
Total shareholders' equity | 2,081,514 | 2,007,141 |
Total liabilities and shareholders' equity | $4,930,472 | $3,649,508 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 280,000 | 280,000 |
Common stock, shares issued | 145,389 | 145,419 |
Common stock, shares outstanding | 144,544 | 145,419 |
Treasury stock shares | 840 | 0 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $114,170 | $112,138 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Amortization | 38,499 | 32,282 |
Depreciation | 9,882 | 8,430 |
Non-cash stock-based compensation | 13,509 | 7,473 |
Change in estimated acquisition earn-out payables | 6,260 | 2,178 |
Deferred income taxes | 14,425 | 20,922 |
Income tax benefit from exercise of shares from the stock benefit plans | -2,467 | -307 |
Net gain on sales of investments, fixed assets and customer accounts | -2,804 | -974 |
Payments on acquisition earn-outs in excess of original estimated payables | -2,539 | -1,926 |
Changes in operating assets and liabilities, net of effect from acquisitions and divestitures: | ' | ' |
Restricted cash and investments (increase) | -50,345 | -45,974 |
Premiums, commissions and fees receivable (increase) | -21,396 | -6,307 |
Reinsurance recoverables (increase) | -2,871 | ' |
Prepaid reinsurance premiums (increase) | -20,007 | ' |
Other assets (increase) | -37,173 | -1,386 |
Premiums payable to insurance companies increase | 74,646 | 69,008 |
Premium deposits and credits due customers increase (decrease) | 17,542 | -1,651 |
Losses and loss adjustment expense increase | 2,871 | ' |
Unearned premiums increase | 20,007 | ' |
Accounts payable increase | 35,461 | 6,725 |
Accrued expenses and other liabilities (decrease) increase | -34,714 | 27,517 |
Other liabilities (decrease) | -18,232 | -6,263 |
Net cash provided by operating activities | 177,602 | 221,885 |
Cash flows from investing activities: | ' | ' |
Additions to fixed assets | -12,577 | -7,123 |
Payments for businesses acquired, net of cash acquired | -694,737 | -14,384 |
Proceeds from sales of fixed assets and customer accounts | 3,207 | 513 |
Purchases of investments | -8,515 | -9,935 |
Proceeds from sales of investments | 8,371 | 5,914 |
Net cash used in investing activities | -704,251 | -25,015 |
Cash flows from financing activities: | ' | ' |
Proceeds from long-term debt | 550,000 | ' |
Payments on long-term debt | -230,000 | -60 |
Payments on acquisition earn-outs | -8,890 | -6,153 |
Borrowings on revolving credit facilities | 375,000 | ' |
Income tax benefit from exercise of shares from the stock benefit plans | 2,467 | 307 |
Issuances of common stock for employee stock benefit plans | 942 | 725 |
Repurchase stock benefit plan shares for employees to fund tax withholdings | -2,648 | -73 |
Purchase of treasury stock | -25,025 | ' |
Cash dividends paid | -29,042 | -25,912 |
Net cash provided by (used in) financing activities | 632,804 | -31,166 |
Net increase in cash and cash equivalents | 106,155 | 165,704 |
Cash and cash equivalents at beginning of period | 202,952 | 219,821 |
Cash and cash equivalents at end of period | $309,107 | $385,525 |
Nature_of_Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
Brown & Brown, Inc., a Florida corporation, and its subsidiaries (collectively, “Brown & Brown” or the “Company”) is a diversified insurance agency, wholesale brokerage, insurance programs and services organization that markets and sells to its customers insurance products and services, primarily in the property and casualty area. 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 entity, professional and individual customers; the National Programs Division, acting as a managing general agent (“MGA”), provides professional liability and related package products for certain professionals, flood coverage, 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 markets; the Wholesale Brokerage Division, which markets and sells excess and surplus commercial 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, Social Security disability and Medicare benefits advocacy services, and catastrophe claims adjusting services. In addition, as the result of our acquisition of the stock of The Wright Insurance Group, LLC (“Wright”), in May 2014, we own a flood insurance carrier that is a Wright subsidiary. This carrier’s business consists of policies written pursuant to the National Flood Insurance Program (“NFIP”), the program administered by the Federal Emergency Management Agency (“FEMA”) and several excess flood insurance policies which are fully reinsured. |
Basis_of_Financial_Reporting
Basis of Financial Reporting | 6 Months Ended |
Jun. 30, 2014 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' |
Basis of Financial Reporting | ' |
NOTE 2· Basis of Financial Reporting | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 |
Net_Income_Per_Share
Net Income Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
NOTE 3· Net Income Per Share | |||||||||||||||||
Effective in 2009, the Company adopted new Financial Accounting Standards Board (“FASB”) authoritative guidance that states that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share (“EPS”) pursuant to the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Performance stock shares granted to employees under the Company’s Performance Stock Plan and under the Company’s Stock Incentive Plan are considered participating securities as they receive non-forfeitable dividend equivalents at the same rate as common stock. | |||||||||||||||||
Basic EPS is computed based on the weighted average number of common shares (including participating securities) issued and outstanding during the period. Diluted EPS is computed based on the weighted average number of common shares issued and outstanding plus equivalent shares, assuming the exercise of stock options. The dilutive effect of stock options is computed by application of the treasury-stock method. The following is a reconciliation between basic and diluted weighted average shares outstanding: | |||||||||||||||||
For the three months | For the six months | ||||||||||||||||
ended June 30, | ended June 30, | ||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $ | 61,755 | $ | 52,007 | $ | 114,170 | $ | 112,138 | |||||||||
Net income attributable to unvested awarded performance stock | (1,531 | ) | (1,157 | ) | (2,915 | ) | (2,467 | ) | |||||||||
Net income attributable to common shares | $ | 60,224 | $ | 50,850 | $ | 111,255 | $ | 109,671 | |||||||||
Weighted average number of common shares outstanding – basic | 144,840 | 144,041 | 145,133 | 143,984 | |||||||||||||
Less unvested awarded performance stock included in weighted average number of common shares outstanding – basic | (3,590 | ) | (3,205 | ) | (3,705 | ) | (3,168 | ) | |||||||||
Weighted average number of common shares outstanding for basic earnings per common share | 141,250 | 140,836 | 141,428 | 140,816 | |||||||||||||
Dilutive effect of stock options | 1,782 | 2,185 | 1,741 | 2,122 | |||||||||||||
Weighted average number of shares outstanding – diluted | 143,032 | 143,021 | 143,169 | 142,938 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.43 | $ | 0.36 | $ | 0.79 | $ | 0.78 | |||||||||
Diluted | $ | 0.42 | $ | 0.36 | $ | 0.78 | $ | 0.77 | |||||||||
Business_Combinations
Business Combinations | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||||||||||||||
Business Combinations | ' | ||||||||||||||||||||||||||||
NOTE 4· Business Combinations | |||||||||||||||||||||||||||||
Acquisitions in 2014 | |||||||||||||||||||||||||||||
During the six months ended June 30, 2014, Brown & Brown acquired the assets and assumed certain liabilities of five insurance intermediaries, all of the stock of one insurance intermediary that owns an insurance carrier and a book of business (customer accounts). Additionally, miscellaneous adjustments were recorded to the purchase price allocation of certain prior acquisitions completed within the last twelve months as permitted by ASC Topic 805 — Business Combinations (“ASC 805”). The aggregate purchase price of these acquisitions and the miscellaneous adjustments totaled $1,140,408,000 including $720,102,000 of cash payments, the issuance of $125,000 in other payables, the assumption of $407,023,000 of liabilities and $13,158,000 of recorded earn-out payables. All of these acquisitions were acquired primarily to expand Brown & Brown’s core business and to attract and hire high-quality individuals. Acquisition purchase prices are typically based on a multiple of average annual operating profit earned over a one- to three-year period within a minimum and maximum price range. The recorded purchase price for all acquisitions consummated after January 1, 2009 included an estimation of the fair value of liabilities associated with any potential earn-out provisions. Subsequent changes in the fair value of earn-out obligations will be recorded in the Condensed Consolidated Statement of Income when incurred. | |||||||||||||||||||||||||||||
The fair value of earn-out obligations is based on the present value of the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. In determining fair value, the acquired business’s future performance is estimated using financial projections developed by management for the acquired business and reflects market participant assumptions regarding revenue growth and/or profitability. The expected future payments are estimated on the basis of the earn-out formula and performance targets specified in each purchase agreement compared to the associated financial projections. These payments are then discounted to present value using a risk-adjusted rate that takes into consideration the likelihood that the forecasted earn-out payments will be made. | |||||||||||||||||||||||||||||
Based on the acquisition date and the complexity of the underlying valuation work, certain amounts included in the Company’s Condensed Consolidated Financial Statements may be provisional and thus subject to further adjustments within the permitted measurement period, as defined in ASC 805. For the six months ended June 30, 2014, several adjustments were made within the permitted measurement period that resulted in an increase in the aggregate purchase price of the affected acquisitions of $33,000 relating to the assumption of certain liabilities. | |||||||||||||||||||||||||||||
The following table summarizes the aggregate purchase price allocations made as of the date of the acquisitions for the current-year acquisitions and adjustments made during the measurement period for prior-year acquisitions: | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Name | Business | Effective | Cash | Other | Recorded | Net Assets | Maximum | ||||||||||||||||||||||
Segment | Date of | Paid | Payable | Earn-Out | Acquired | Potential Earn- | |||||||||||||||||||||||
Acquisition | Payable | Out Payable | |||||||||||||||||||||||||||
The Wright Insurance Group, LLC. | National | May 1, 2014 | 610,158 | — | — | 610,158 | — | ||||||||||||||||||||||
Programs | |||||||||||||||||||||||||||||
Pacific Resources Benefits Advisors, LLC | Retail | May 1, 2014 | $ | 90,000 | $ | — | $ | 8,819 | $ | 98,819 | $ | 35,000 | |||||||||||||||||
Axia Strategies, Inc. | Wholesale | 1-May-14 | 9,870 | — | 1,824 | 11,694 | 5,200 | ||||||||||||||||||||||
Brokerage | |||||||||||||||||||||||||||||
Other | Various | Various | 10,074 | 125 | 2,515 | 12,714 | 6,028 | ||||||||||||||||||||||
Total | $ | 720,102 | $ | 125 | $ | 13,158 | $ | 733,385 | $ | 46,228 | |||||||||||||||||||
The following table summarizes the adjustments made to the estimated fair values along with the aggregate assets and liabilities acquired as of the date of each acquisition: | |||||||||||||||||||||||||||||
(in thousands) | PacRes | Axia | Wright | Other | Total | ||||||||||||||||||||||||
Cash | $ | — | $ | — | $ | 25,365 | $ | — | $ | 25,365 | |||||||||||||||||||
Other current assets | 2,383 | — | 16,768 | 436 | 19,587 | ||||||||||||||||||||||||
Fixed assets | 53 | 24 | 7,445 | 1,719 | 9,241 | ||||||||||||||||||||||||
Reinsurance recoverable | — | — | 25,238 | — | 25,238 | ||||||||||||||||||||||||
Prepaid reinsurance premiums | — | — | 289,013 | — | 289,013 | ||||||||||||||||||||||||
Goodwill | 70,255 | 7,377 | 417,539 | 7,936 | 503,107 | ||||||||||||||||||||||||
Purchased customer accounts | 26,460 | 4,252 | 213,958 | 2,842 | 247,512 | ||||||||||||||||||||||||
Non-compete agreements | 21 | 41 | 1,119 | 119 | 1,300 | ||||||||||||||||||||||||
Other assets | — | — | 20,045 | — | 20,045 | ||||||||||||||||||||||||
Total assets acquired | 99,172 | 11,694 | 1,016,490 | 13,052 | 1,140,408 | ||||||||||||||||||||||||
Other current liabilities | (353 | ) | — | (14,911 | ) | (338 | ) | (15,602 | ) | ||||||||||||||||||||
Losses and loss adjustment expense | — | — | (25,238 | ) | — | (25,238 | ) | ||||||||||||||||||||||
Unearned premiums | — | — | (289,013 | ) | — | (289,013 | ) | ||||||||||||||||||||||
Deferred income tax, net | — | — | (44,476 | ) | — | (44,476 | ) | ||||||||||||||||||||||
Other liabilities | — | — | (32,694 | ) | — | (32,694 | ) | ||||||||||||||||||||||
Total liabilities assumed | (353 | ) | — | (406,332 | ) | (338 | ) | (407,023 | ) | ||||||||||||||||||||
Net assets acquired | $ | 98,819 | 11,694 | 610,158 | $ | 12,714 | $ | 733,385 | |||||||||||||||||||||
The weighted average useful lives for the acquired amortizable intangible assets are as follows: purchased customer accounts, 15.0 years; and non-compete agreements, 3.3 years. | |||||||||||||||||||||||||||||
Goodwill of $503,107,000 was allocated to the Retail, National Programs, Wholesale Brokerage, and Services Divisions in the amounts of $78,395,000, $417,539,000, $(239,000), $7,412,000, respectively. Of the total goodwill of $503,107,000, $148,592,000 is currently deductible for income tax purposes and $341,357,000 is non-deductible. The remaining $13,158,000 relates to the recorded earn-out payables and will not be deductible until it is earned and paid. | |||||||||||||||||||||||||||||
The results of operations for the acquisitions completed during 2014 have been combined with those of the Company since the acquisition date. The total revenues and income before income taxes from the acquisitions completed through June 30, 2014, included in the Condensed Consolidated Statement of Income for the six months ended June 30, 2014, were $29,796,000 and $1,294,000, respectively. If the acquisitions had occurred as of the beginning of the period, the Company’s results of operations would be as shown in the following table. These unaudited pro forma results are not necessarily indicative of the actual results of operations that would have occurred had the acquisitions actually been made at the beginning of the respective periods. | |||||||||||||||||||||||||||||
(UNAUDITED) | For the three months | For the six months | |||||||||||||||||||||||||||
ended June 30, | ended June 30, | ||||||||||||||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Total revenues | $ | 410,801 | $ | 365,964 | $ | 812,972 | $ | 737,673 | |||||||||||||||||||||
Income before income taxes | $ | 106,186 | 99,431 | $ | 206,102 | 211,003 | |||||||||||||||||||||||
Net income | $ | 64,427 | 59,975 | $ | 124,753 | 127,408 | |||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||
Basic | $ | 0.44 | $ | 0.42 | $ | 0.86 | $ | 0.88 | |||||||||||||||||||||
Diluted | $ | 0.44 | $ | 0.41 | $ | 0.85 | $ | 0.87 | |||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||
Basic | 141,250 | 140,836 | 141,428 | 140,816 | |||||||||||||||||||||||||
Diluted | 143,032 | 143,021 | 143,169 | 142,938 | |||||||||||||||||||||||||
Acquisitions in 2013 | |||||||||||||||||||||||||||||
During the six months ended June 30, 2013, Brown & Brown acquired the assets and assumed certain liabilities of two insurance intermediaries and a book of business (customer accounts). The aggregate purchase price of these acquisitions was $17,865,000, including $14,366,000 of cash payments, the issuance of $85,000 in other payables, the assumption of $860,000 of liabilities and $2,554,000 of recorded earn-out payables. All of these acquisitions were acquired primarily to expand Brown & Brown’s core businesses and to attract and hire high-quality individuals. Acquisition purchase prices are typically based on a multiple of average annual operating profit earned over a one- to three-year period within a minimum and maximum price range. The recorded purchase price for all acquisitions consummated after January 1, 2009 included an estimation of the fair value of liabilities associated with any potential earn-out provisions. Subsequent changes in the fair value of earn-out obligations will be recorded in the condensed consolidated statement of income when incurred. | |||||||||||||||||||||||||||||
The fair value of earn-out obligations is based on the present value of the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. In determining fair value, the acquired business’s future performance is estimated using financial projections developed by management for the acquired business and reflects market participant assumptions regarding revenue growth and/or profitability. The expected future payments are estimated on the basis of the earn-out formula and performance targets specified in each purchase agreement compared to the associated financial projections. These payments are then discounted to present value using a risk-adjusted rate that takes into consideration the likelihood that the forecasted earn-out payments will be made. | |||||||||||||||||||||||||||||
Based on the acquisition date and the complexity of the underlying valuation work, certain amounts included in the Company’s Condensed Consolidated Financial Statements may be provisional and thus subject to further adjustments within the permitted measurement period, as defined in ASC Topic 805 – Business Combinations (“ASC 805”). For the six months ended June 30, 2013, several adjustments were made within the permitted measurement period that resulted in reduction to the aggregate purchase price of the applicable acquisitions of $1,115,000, including $18,000 of cash payments, a reduction of $454,000 in other payables, the assumption of $42,000 of liabilities and the reduction of $721,000 in recorded earn-out payables. | |||||||||||||||||||||||||||||
The following table summarizes the aggregate purchase price allocations made as of the date of each acquisition for current year acquisitions and adjustments made during the measurement period for prior year acquisitions: | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Name | Business | Effective | Cash | Other | Recorded | Net Assets | Maximum | ||||||||||||||||||||||
Segment | Date of | Paid | Payable | Earn-Out | Acquired | Potential Earn- | |||||||||||||||||||||||
Acquisition | Payable | Out Payable | |||||||||||||||||||||||||||
Arrowhead General Insurance Agency Superholding Corporation | National | January 9, 2012 | $ | — | $ | (454 | ) | $ | — | $ | (454 | ) | $ | — | |||||||||||||||
Programs; | |||||||||||||||||||||||||||||
Services | |||||||||||||||||||||||||||||
Insurcorp & GGM Investments LLC | Retail | 1-May-12 | — | — | (834 | ) | (834 | ) | — | ||||||||||||||||||||
Richard W. Endlar Insurance Agency, Inc. | Retail | 1-May-12 | — | — | 220 | 220 | — | ||||||||||||||||||||||
Texas Security General Insurance Agency, Inc. | Wholesale | September 1, 2012 | — | — | (107 | ) | (107 | ) | — | ||||||||||||||||||||
Brokerage | |||||||||||||||||||||||||||||
The Rollins Agency, Inc. | Retail | 1-Jun-13 | 13,792 | 50 | 2,256 | 16,098 | 4,300 | ||||||||||||||||||||||
Other | Various | Various | 592 | 35 | 298 | 925 | 448 | ||||||||||||||||||||||
Total | $ | 14,384 | $ | (369 | ) | $ | 1,833 | $ | 15,848 | $ | 4,748 | ||||||||||||||||||
The following table summarizes the estimated fair values of the aggregate assets and liabilities acquired as of the date of each acquisition and adjustments made during the measurement period for prior year acquisitions: | |||||||||||||||||||||||||||||
(in thousands) | Rollins | Arrowhead | Insurcorp | Endlar | Texas | Other | Total | ||||||||||||||||||||||
Security | |||||||||||||||||||||||||||||
Other current assets | $ | — | $ | — | $ | — | $ | — | $ | 25 | $ | 1,455 | $ | 1,480 | |||||||||||||||
Fixed assets | 30 | — | — | — | — | 1 | 31 | ||||||||||||||||||||||
Goodwill | 13,019 | (454 | ) | (566 | ) | 216 | (843 | ) | (685 | ) | 10,687 | ||||||||||||||||||
Purchased customer accounts | 3,876 | — | (268 | ) | 4 | 708 | 170 | 4,490 | |||||||||||||||||||||
Non-compete agreements | 31 | — | — | — | — | 31 | 62 | ||||||||||||||||||||||
Total assets acquired | 16,956 | (454 | ) | (834 | ) | 220 | (110 | ) | 972 | 16,750 | |||||||||||||||||||
Other current liabilities | (858 | ) | — | — | — | 3 | (47 | ) | (902 | ) | |||||||||||||||||||
Net assets acquired | $ | 16,098 | $ | (454 | ) | $ | (834 | ) | $ | 220 | $ | (107 | ) | $ | 925 | $ | 15,848 | ||||||||||||
The weighted average useful lives for the acquired amortizable intangible assets are as follows: purchased customer accounts, 15.0 years; and non-compete agreements, 5.0 years. | |||||||||||||||||||||||||||||
Goodwill of $10,687,000, was allocated to the Retail, National Programs and Wholesale Brokerage Divisions in the amounts of $11,984,000, ($454,000) and ($843,000), respectively. Of the total goodwill of $10,687,000, $9,308,000 is currently deductible for income tax purposes and ($454,000) is non-deductible. The remaining $1,833,000 relates to the earn-out payables and will not be deductible until it is earned and paid. | |||||||||||||||||||||||||||||
The results of operations for the acquisitions completed during 2013 have been combined with those of the Company since their respective acquisition dates. The total revenues and income before income taxes from the acquisitions completed through June 30, 2013, included in the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2013, were $627,000 and $142,000, respectively. If the acquisitions had occurred as of the beginning of the period, the Company’s results of operations would be as shown in the following table. These unaudited pro forma results are not necessarily indicative of the actual results of operations that would have occurred had the acquisitions actually been made at the beginning of the respective periods. | |||||||||||||||||||||||||||||
(UNAUDITED) | For the three months ended | For the six months ended | |||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
(in thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Total revenues | $ | 326,753 | $ | 292,242 | $ | 663,460 | $ | 596,931 | |||||||||||||||||||||
Income before income taxes | 86,506 | 71,528 | 186,503 | 154,953 | |||||||||||||||||||||||||
Net income | 52,179 | 42,700 | 112,616 | 92,511 | |||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||
Basic | $ | 0.36 | $ | 0.3 | $ | 0.78 | $ | 0.65 | |||||||||||||||||||||
Diluted | $ | 0.36 | $ | 0.29 | $ | 0.77 | $ | 0.63 | |||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||
Basic | 140,836 | 139,086 | 140,816 | 139,044 | |||||||||||||||||||||||||
Diluted | 143,021 | 141,828 | 142,938 | 141,664 | |||||||||||||||||||||||||
As of June 30, 2014, the maximum future contingency payments related to all acquisitions totaled $153,019,000, all of which relates to acquisitions consummated subsequent to January 1, 2009. | |||||||||||||||||||||||||||||
ASC 805 is the authoritative guidance requiring an acquirer to recognize 100% of the fair values of acquired assets, including goodwill, and assumed liabilities (with only limited exceptions) upon initially obtaining control of an acquired entity. Additionally, the fair value of contingent consideration arrangements (such as earn-out purchase arrangements) at the acquisition date must be included in the purchase price consideration. As a result, the recorded purchase prices for all acquisitions consummated after January 1, 2009 include an estimation of the fair value of liabilities associated with any potential earn-out provisions. Subsequent changes in these earn-out obligations will be recorded in the condensed consolidated statement of income when incurred. Potential earn-out obligations are typically based upon future earnings of the acquired entities, usually between one and three years. | |||||||||||||||||||||||||||||
As of June 30, 2014 and 2013, the fair values of the estimated acquisition earn-out payables were re-evaluated and measured at fair value on a recurring basis using unobservable inputs (Level 3). The resulting additions, payments, and net changes, as well as the interest expense accretion on the estimated acquisition earn-out payables, for the three and six months ended June 30, 2014 and 2013, were as follows: | |||||||||||||||||||||||||||||
For the three months | For the six months | ||||||||||||||||||||||||||||
ended June 30, | ended June 30, | ||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 48,806 | $ | 49,469 | $ | 43,058 | $ | 52,987 | |||||||||||||||||||||
Additions to estimated acquisition earn-out payables | 14,527 | 2,554 | 14,807 | 1,833 | |||||||||||||||||||||||||
Payments for estimated acquisition earn-out payables | (10,814 | ) | (3,761 | ) | (11,429 | ) | (8,080 | ) | |||||||||||||||||||||
Subtotal | 52,519 | 48,262 | 46,436 | 46,740 | |||||||||||||||||||||||||
Net change in earnings from estimated acquisition earn-out payables: | |||||||||||||||||||||||||||||
Change in fair value on estimated acquisition earn-out payables | (375 | ) | 159 | 5,228 | 1,156 | ||||||||||||||||||||||||
Interest expense accretion | 552 | 497 | 1,032 | 1,022 | |||||||||||||||||||||||||
Net change in earnings from estimated acquisition earn-out payables | 177 | 656 | 6,260 | 2,178 | |||||||||||||||||||||||||
Balance as of June 30 | $ | 52,696 | $ | 48,918 | $ | 52,696 | $ | 48,918 | |||||||||||||||||||||
Of the $52,696,000 estimated acquisition earn-out payables as of June 30, 2014, $20,278,000 was recorded as accounts payable and $32,418,000 was recorded as other non-current liabilities. | |||||||||||||||||||||||||||||
Goodwill
Goodwill | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill | ' | ||||||||||||||||||||
NOTE 5· Goodwill | |||||||||||||||||||||
Goodwill is subject to at least an annual assessment for impairment by applying a fair value-based test. Brown & Brown completed its most recent annual assessment as of November 30, 2013, and identified no impairment as a result of the evaluation. | |||||||||||||||||||||
The changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2014 are as follows: | |||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Total | ||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||
Balance as of January 1, 2014 | $ | 1,131,257 | $ | 467,144 | $ | 287,242 | $ | 120,530 | $ | 2,006,173 | |||||||||||
Goodwill of acquired businesses | 78,395 | 417,539 | 7,412 | (239 | ) | 503,107 | |||||||||||||||
Balance as of June 30, 2014 | $ | 1,209,652 | $ | 884,683 | $ | 294,654 | $ | 120,291 | $ | 2,509,280 | |||||||||||
Amortizable_Intangible_Assets
Amortizable Intangible Assets | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Amortizable Intangible Assets | ' | ||||||||||||||||||||||||||||||||
NOTE 6· Amortizable Intangible Assets | |||||||||||||||||||||||||||||||||
Amortizable intangible assets at June 30, 2014 and December 31, 2013, consisted of the following: | |||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | |||||||||||||||||||||||||
Carrying | Amortization | Carrying | Average | Carrying | Amortization | Carrying | Average | ||||||||||||||||||||||||||
Value | Value | Life | Value | Value | Life | ||||||||||||||||||||||||||||
(Years)(1) | (Years)(1) | ||||||||||||||||||||||||||||||||
Purchased customer accounts | $ | 1,367,293 | $ | (542,432 | ) | $ | 824,861 | 15 | $ | 1,120,719 | $ | (505,137 | ) | $ | 615,582 | 14.9 | |||||||||||||||||
Non-compete agreements | 29,415 | (25,315 | ) | 4,100 | 6.8 | 28,115 | (24,809 | ) | 3,306 | 7 | |||||||||||||||||||||||
Total | $ | 1,396,708 | $ | (567,747 | ) | $ | 828,961 | $ | 1,148,834 | $ | (529,946 | ) | $ | 618,888 | |||||||||||||||||||
-1 | Weighted average life calculated as of the date of acquisition. | ||||||||||||||||||||||||||||||||
Amortization expense for amortizable intangible assets for the years ending December 31, 2014, 2015, 2016, 2017 and 2018 is estimated to be $82,503,000, $86,861,000, $82,331,000, $79,377,000, and $73,977,000, respectively. |
LongTerm_Debt
Long-Term Debt | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
NOTE 7· Long-Term Debt | |||||||||
Long-term debt at June 30, 2014 and December 31, 2013, consisted of the following: | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Unsecured senior notes | $ | 799,734 | $ | 480,000 | |||||
Revolving credit facilities | 375,000 | — | |||||||
Total debt | 1,174,734 | 480,000 | |||||||
Less current portion | (6,609 | ) | (100,000 | ) | |||||
Long-term debt | $ | 1,168,125 | $ | 380,000 | |||||
In July 2004, the Company completed a private placement of $200.0 million of unsecured senior notes (the “Notes”). The $200.0 million was divided into two series: (1) Series A, which closed on September 15, 2004, for $100.0 million due in 2011 and bore interest at 5.57% per year; and (2) Series B, which closed on July 15, 2004, for $100.0 million due in 2014 and bearing interest at 6.08% per year. The Company has used the proceeds from the Notes for general corporate purposes, including acquisitions and repayment of existing debt. On September 15, 2011, the $100.0 million of Series A Notes were redeemed on their normal maturity date through use of funds from the Master Agreement (defined below). As of June 30, 2014 and December 31, 2013, there was an outstanding balance on the Series B Notes of $100.0 million. It is management’s intention to pay off the Series B Notes at the time of maturity with proceeds from the revolving portion of the JPM Credit Facility (as described in Note 13, Subsequent Events). | |||||||||
On December 22, 2006, the Company entered into a Master Shelf and Note Purchase Agreement (the “Master Agreement”) with a national insurance company (the “Purchaser”). On September 30, 2009, the Company and the Purchaser amended the Master Agreement to extend the term of the agreement until August 20, 2012. The Purchaser also purchased Notes issued by the Company in 2004. The Master Agreement provides for a $200.0 million private uncommitted “shelf” facility for the issuance of senior unsecured notes over a three-year period, with interest rates that may be fixed or floating and with such maturity dates, not to exceed ten years, as the parties may determine. The Master Agreement includes various covenants, limitations and events of default similar to the Notes issued in 2004. The initial issuance of notes under the Master Agreement occurred on December 22, 2006, through the issuance of $25.0 million in Series C Senior Notes due December 22, 2016, with a fixed interest rate of 5.66% per year. On February 1, 2008, $25.0 million in Series D Senior Notes due January 15, 2015, with a fixed interest rate of 5.37% per year, were issued. It is managements intention to pay off the Series D Senior Notes at the time of maturity with proceeds from the revolving portion of the Credit Facility. On September 15, 2011, and pursuant to a Confirmation of Acceptance (the “Confirmation”), dated January 21, 2011, in connection with the Master Agreement, $100.0 million in Series E Senior Notes were issued and are due September 15, 2018, with a fixed interest rate of 4.50% per year. The Series E Senior Notes were issued for the sole purpose of retiring the Series A Senior Notes. As of June 30, 2014, and December 31, 2013, there was an outstanding debt balance issued under the provisions of the Master Agreement of $150.0 million. | |||||||||
On October 12, 2012, the Company entered into a Master Note Facility Agreement (the “New Master Agreement”) with another national insurance company (the “New Purchaser”). The New Purchaser also purchased Senior Notes issued by the Company in 2004. The New Master Agreement provides for a $125.0 million private uncommitted “shelf” facility for the issuance of unsecured senior notes over a three-year period, with interest rates that may be fixed or floating and with such maturity dates, not to exceed ten years, as the parties may determine. The New Master Agreement includes various covenants, limitations and events of default similar to the Master Agreement. At June 30, 2014 and December 31, 2013, there were no borrowings against this facility. | |||||||||
On January 9, 2012, the Company entered into: (1) an amended and restated revolving and term loan credit agreement (the “SunTrust Agreement”) with SunTrust Bank (“SunTrust”) that provides for (a) a $100.0 million term loan (the “SunTrust Term Loan”) and (b) a $50.0 million revolving line of credit (the “SunTrust Revolver”) and (2) a $50.0 million promissory note (the “JPM Note”) in favor of JPMorgan Chase Bank, N.A. (“JPMorgan”), pursuant to a letter agreement executed by JP Morgan (together with the JPM Note, the “JPM Agreement”) that provided for a $50.0 million uncommitted line of credit bridge facility (the “JPM Bridge Facility”). The SunTrust Term Loan, the SunTrust Revolver and the JPM Bridge Facility were each funded on January 9, 2012, and provided the financing for the Arrowhead acquisition. The SunTrust Agreement amended and restated the Prior Loan Agreement. The SunTrust Revolver and JPM Bridge Facility were paid off by the JPM Term Loan (defined below). | |||||||||
The maturity date for the SunTrust Term Loan and the SunTrust Revolver was December 31, 2016, at which time all outstanding principal and unpaid interest would have been due. Both the SunTrust Term Loan and the SunTrust Revolver were able to be increased by up to $50.0 million (bringing the total amount available to $150.0 million for the SunTrust Term Loan and $100.0 million for the SunTrust Revolver) prior to their termination. The calculation of interest and fees for the SunTrust Agreement was generally based on the Company’s funded debt-to-EBITDA ratio. Interest was charged at a rate equal to 1.00% to 1.40% above LIBOR or 1.00% below the Base Rate, each as more fully described in the SunTrust Agreement. Fees included an up-front fee, an availability fee of 0.175% to 0.25%, and a letter of credit margin fee of 1.00% to 1.40%. The obligations under the SunTrust Term Loan and SunTrust Revolver were unsecured and the SunTrust Agreement included various covenants, limitations and events of default that are customary for similar facilities for similar borrowers and that are substantially similar to those contained in the Prior Loan Agreement. On May 20, 2014, in connection with closing the Wright acquisition and funding of the Credit Facility (as defined below), the SunTrust Term Loan was paid in full using proceeds from the Credit Facility (as defined below) and the SunTrust Revolver was also terminated at that time. | |||||||||
The maturity date for the JPM Bridge Facility was February 3, 2012, at which time all outstanding principal and unpaid interest would have been due. On January 26, 2012, the Company entered into a term loan agreement (the “JPM Agreement”) with JPMorgan that provided for a $100.0 million term loan (the “JPM Term Loan”). The JPM Term Loan was fully funded on January 26, 2012, and provided the financing to fully repay (1) the JPM Bridge Facility and (2) the SunTrust Revolver. As a result of the January 26, 2012 financing and repayments, the JPM Bridge Facility was terminated and the SunTrust Revolver’s amount outstanding was reduced to zero. | |||||||||
The maturity date for the JPM Term Loan was December 31, 2016, at which time all outstanding principal and unpaid interest would have been due. Interest was charged at a rate equal to the Alternative Base Rate or 1.00% above the Adjusted LIBOR Rate, each as more fully described in the JPM Agreement. Fees included an up-front fee. The obligations under the JPM Term Loan were unsecured and the JPM Agreement includes various covenants, limitations and events of default that are customary for similar facilities for similar borrowers. On May 20, 2014, in connection with closing the Wright acquisition and funding of the Credit Facility (as defined below), the JPM Term Loan was paid in full and terminated using proceeds from the Credit Facility (as defined below). | |||||||||
On July 1, 2013, in conjunction with the acquisition of Beecher Carlson, the Company entered into: (1) a revolving loan agreement (the “Wells Fargo Agreement”) with Wells Fargo Bank, N.A. that provides for a $50.0 million revolving line of credit (the “Wells Fargo Revolver”) and (2) a term loan agreement (the “Bank of America Agreement”) with Bank of America, N.A. (“Bank of America”) that provided for a $30.0 million term loan (the “Bank of America Term Loan”). | |||||||||
The maturity date for the Wells Fargo Revolver is December 31, 2016, at which time all outstanding principal and unpaid interest will be due. The Wells Fargo Revolver may be increased by up to $50.0 million (bringing the total amount available to $100.0 million). The calculation of interest and fees for the Wells Fargo Agreement is generally based on the Company’s funded debt-to-EBITDA ratio. Interest is charged at a rate equal to 1.00% to 1.40% above LIBOR or 1.00% below the Base Rate, each as more fully described in the Wells Fargo Agreement. Fees include an up-front fee, an availability fee of 0.175% to 0.25%, and a letter of credit margin fee of 1.00% to 1.40%. The obligations under the Wells Fargo Revolver are unsecured and the Wells Fargo Agreement includes various covenants, limitations and events of default that are customary for similar facilities for similar borrowers. The Wells Fargo Revolver was drawn down in the amount of $30.0 million on July 1, 2013. As of April 16, 2014, in connection with the agreement of the Credit Facility (as defined below), an amendment to the agreement was established to reduce the total revolving loan commitment from $50.0 million to $25.0 million. There were no borrowings against the Wells Fargo Revolver as of June 30, 2014 and December 31, 2013. | |||||||||
The maturity date for the Bank of America Term Loan was December 31, 2016, at which time all outstanding principal and unpaid interest would have been due. The calculation of interest for the Bank of America Agreement was generally based on the Company’s fixed charge coverage ratio. Interest was charged at a rate equal to the Alternative Base Rate or 1.00% to 1.40% above the Adjusted LIBOR Rate, each as more fully described in the Bank of America Agreement. Fees included an up-front fee. The obligations under the Bank of America Term Loan were unsecured and the Bank of America Agreement included various covenants, limitations and events of default that are customary for similar facilities for similar borrowers. The Bank of America Term Loan was funded in the amount of $30.0 million on July 1, 2013. On May 20, 2014, in connection with closing the Wright acquisition and funding of the Credit Facility, the term loan was paid in full using proceeds from the Credit Facility (as defined below). | |||||||||
The 30-day Adjusted LIBOR Rate as of June 30, 2014 was 0.19%. | |||||||||
On April 17, 2014, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A. as administrative agent and certain other banks as co-syndication agents and co-documentation agents (the “Credit Agreement”). The Credit Agreement in the amount of $1,350.0 million provides for an unsecured revolving credit facility in the initial amount of $800.0 million and unsecured term loans in the initial amount of $550.0 million, either or both of which may, subject to lenders’ discretion, potentially be increased by up to $500.0 million. The Credit Facility was funded on May 20, 2014 in conjunction with the closing of the Wright acquisition, with the $550.0 million term loan being funded as well as a drawdown of $375.0 million on the revolving loan facility. Use of these proceeds were to retire existing term loan debt including the JPM Term Loan Agreement, SunTrust Term Loan Agreement and Bank of America Term Loan Agreement in total of $230.0 million (as described above) and to facilitate the closing of the Wright acquisition as well as other acquisitions. The Credit Facility terminates on May 20, 2019, but either or both of the revolving credit facility and the term loans may be extended for two additional one-year periods at the Company’s request and at the discretion of the respective lenders. Interest and facility fees in respect to the Credit Facility are based on the better of the Company’s net debt leverage ratio or a non-credit enhanced senior unsecured long-term debt rating. Based on the Company’s net debt leverage ratio, the rates of interest for the first two quarters charged on the term loan and revolving loan will be 1.375% and 1.175% respectively and above the adjusted LIBOR rate for outstanding amounts drawn. There are fees included in the facility which include a facility fee based on the revolving credit commitments of the lenders (whether used or unused) at a rate of 0.20% and letter of credit fees based on the amounts of outstanding secured or unsecured letters of credit. The Credit Facility includes various covenants, limitations and events of default customary for similar facilities for similarly rated borrowers. As of June 30, 2014, there was an outstanding debt balance issued under the provisions of the Credit Facility in total of $925.0 million. | |||||||||
The Notes, the Master Agreement and the Credit Facility Agreement all require the Company to maintain certain financial ratios and comply with certain other covenants. The Company was in compliance with all such covenants as of June 30, 2014 and December 31, 2013. | |||||||||
Supplemental_Disclosures_of_Ca
Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities | ' | ||||||||
NOTE 8· Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities | |||||||||
For the six months | |||||||||
ended June 30, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Cash paid during the period for: | |||||||||
Interest | $ | 11,070 | $ | 7,660 | |||||
Income taxes | $ | 58,079 | $ | 52,077 | |||||
Brown & Brown’s significant non-cash investing and financing activities are summarized as follows: | |||||||||
For the six months | |||||||||
ended June 30, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Other payable issued for purchased customer accounts | $ | 125 | $ | 257 | |||||
Estimated acquisition earn-out payables and related charges | $ | 13,158 | $ | 1,833 | |||||
Notes received on the sale of fixed assets and customer accounts | $ | 131 | $ | 614 |
Legal_and_Regulatory_Proceedin
Legal and Regulatory Proceedings | 6 Months Ended |
Jun. 30, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Legal and Regulatory Proceedings | ' |
NOTE 9· Legal and Regulatory Proceedings | |
The Company is involved in numerous pending or threatened proceedings by or against Brown & Brown, Inc. or one or more of its subsidiaries that arise in the ordinary course of business. The damages that may be claimed against the Company in these various proceedings are in some cases substantial, including in many instances claims for punitive or extraordinary damages. Some of these claims and lawsuits have been resolved, others are in the process of being resolved and others are still in the investigation or discovery phase. The Company will continue to respond appropriately to these claims and lawsuits and to vigorously protect its interests. | |
Although the ultimate outcome of such matters cannot be ascertained and liabilities in indeterminate amounts may be imposed on Brown & Brown, Inc. or its subsidiaries, on the basis of present information, availability of insurance and legal advice, it is the opinion of management that the disposition or ultimate determination of such claims will not have a material adverse effect on the Company’s condensed consolidated financial position. However, as (i) one or more of the Company’s insurance companies could take the position that portions of these claims are not covered by the Company’s insurance, (ii) to the extent that payments are made to resolve claims and lawsuits, applicable insurance policy limits are eroded, and (iii) the claims and lawsuits relating to these matters are continuing to develop, it is possible that future results of operations or cash flows for any particular quarterly or annual period could be materially affected by unfavorable resolutions of these matters. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||
NOTE 10· 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 provides professional liability and related package products for certain professionals delivered through nationwide networks of independent agents, and 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, Social Security disability and Medicare benefits advocacy services and catastrophe claims adjusting services. | |||||||||||||||||||||||||
Brown & Brown conducts all of its operations within the United States of America, except for one wholesale brokerage operation based in London, England, and retail operations in Bermuda and the Cayman Islands. These three operations earned $3.8 million and $2.8 million of total revenues for the three months ended June 30, 2014 and 2013, respectively. These operations earned $7.0 million and $5.9 million of total revenues for the six months ended June 30, 2014 and 2013, respectively. Additionally, these operations earned $12.2 million of total revenues for the year ended December 31, 2013. Long-lived assets held outside of the United States during the six months ended June 30, 2014 and 2013 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, 2013. 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 table. 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, 2014 | |||||||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Other | Total | |||||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||||||
Total revenues | $ | 210,976 | $ | 90,875 | $ | 60,059 | $ | 35,757 | $ | 97 | $ | 397,764 | |||||||||||||
Investment income | $ | 16 | $ | 66 | $ | 7 | $ | — | $ | 105 | $ | 194 | |||||||||||||
Amortization | $ | 10,457 | $ | 6,214 | $ | 2,932 | $ | 1,010 | $ | 10 | $ | 20,623 | |||||||||||||
Depreciation | $ | 1,614 | $ | 1,842 | $ | 670 | $ | 628 | $ | 488 | $ | 5,242 | |||||||||||||
Interest expense | $ | 11,224 | $ | 12,447 | $ | 523 | $ | 1,971 | $ | (19,161 | ) | $ | 7,004 | ||||||||||||
Income before income taxes | $ | 49,098 | $ | 9,685 | $ | 17,376 | $ | 5,008 | $ | 20,614 | $ | 101,781 | |||||||||||||
Total assets | $ | 3,166,802 | $ | 2,406,240 | $ | 990,355 | $ | 278,137 | $ | (1,911,062 | ) | $ | 4,930,472 | ||||||||||||
Capital expenditures | $ | 1,567 | $ | 5,159 | $ | 517 | $ | 244 | $ | 363 | $ | 7,850 | |||||||||||||
For the three months ended June 30, 2013 | |||||||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Other | Total | |||||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||||||
Total revenues | $ | 171,819 | $ | 68,354 | $ | 54,823 | $ | 30,403 | $ | 393 | $ | 325,792 | |||||||||||||
Investment income | $ | 23 | $ | 5 | $ | 4 | $ | — | $ | 207 | $ | 239 | |||||||||||||
Amortization | $ | 8,789 | $ | 3,511 | $ | 2,887 | $ | 925 | $ | 9 | $ | 16,121 | |||||||||||||
Depreciation | $ | 1,371 | $ | 1,326 | $ | 716 | $ | 401 | $ | 449 | $ | 4,263 | |||||||||||||
Interest expense | $ | 5,649 | $ | 5,590 | $ | 723 | $ | 1,883 | $ | (9,848 | ) | $ | 3,997 | ||||||||||||
Income before income taxes | $ | 44,482 | $ | 11,226 | $ | 15,760 | $ | 2,589 | $ | 12,164 | $ | 86,221 | |||||||||||||
Total assets | $ | 2,501,084 | $ | 1,224,175 | $ | 925,901 | $ | 246,235 | $ | (1,571,075 | ) | $ | 3,326,320 | ||||||||||||
Capital expenditures | $ | 1,488 | $ | 1,420 | $ | 561 | $ | 379 | $ | 328 | $ | 4,176 | |||||||||||||
For the six months ended June 30, 2014 | |||||||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Other | Total | |||||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||||||
Total revenues | $ | 413,667 | $ | 165,045 | $ | 115,079 | $ | 67,399 | $ | 168 | $ | 761,358 | |||||||||||||
Investment income | $ | 32 | $ | 71 | $ | 11 | $ | 2 | $ | 181 | $ | 297 | |||||||||||||
Amortization | $ | 20,608 | $ | 9,989 | $ | 5,815 | $ | 2,067 | $ | 20 | $ | 38,499 | |||||||||||||
Depreciation | $ | 3,198 | $ | 3,309 | $ | 1,320 | $ | 1,091 | $ | 964 | $ | 9,882 | |||||||||||||
Interest expense | $ | 21,937 | $ | 17,888 | $ | 942 | $ | 3,941 | $ | (33,632 | ) | $ | 11,076 | ||||||||||||
Income before income taxes | $ | 90,343 | $ | 25,808 | $ | 30,114 | $ | 7,823 | $ | 34,530 | $ | 188,618 | |||||||||||||
Total assets | $ | 3,166,802 | $ | 2,406,240 | $ | 990,355 | $ | 278,137 | $ | (1,911,062 | ) | $ | 4,930,472 | ||||||||||||
Capital expenditures | $ | 3,679 | $ | 6,857 | $ | 999 | $ | 535 | $ | 507 | $ | 12,577 | |||||||||||||
For the six months ended June 30, 2013 | |||||||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Other | Total | |||||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||||||
Total revenues | $ | 346,387 | $ | 137,294 | $ | 103,520 | $ | 73,050 | $ | 553 | $ | 660,804 | |||||||||||||
Investment income | $ | 46 | $ | 10 | $ | 9 | $ | 1 | $ | 359 | $ | 425 | |||||||||||||
Amortization | $ | 17,600 | $ | 7,030 | $ | 5,784 | $ | 1,849 | $ | 19 | $ | 32,282 | |||||||||||||
Depreciation | $ | 2,742 | $ | 2,574 | $ | 1,423 | $ | 798 | $ | 893 | $ | 8,430 | |||||||||||||
Interest expense | $ | 11,849 | $ | 11,284 | $ | 1,478 | $ | 3,804 | $ | (20,434 | ) | $ | 7,981 | ||||||||||||
Income before income taxes | $ | 90,693 | $ | 25,238 | $ | 26,122 | $ | 16,542 | $ | 27,117 | $ | 185,712 | |||||||||||||
Total assets | $ | 2,501,084 | $ | 1,224,175 | $ | 925,901 | $ | 246,235 | $ | (1,571,075 | ) | $ | 3,326,320 | ||||||||||||
Capital expenditures | $ | 2,823 | $ | 2,312 | $ | 1,097 | $ | 498 | $ | 393 | $ | 7,123 |
Investments
Investments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
NOTE 11· Investments | |||||||||||||||||
Investments at June 30, 2014 and December 31, 2013 consisted of the following: | |||||||||||||||||
30-Jun-14 | December 31,2013 | ||||||||||||||||
Carrying Value | Carrying Value | ||||||||||||||||
(in thousands) | Current | Non- | Current | Non- | |||||||||||||
Current | Current | ||||||||||||||||
Certificates of deposit, U.S. Treasury securities and obligations of U.S. Government agencies, Corporate debt and other securities | $ | 12,300 | $ | 19,021 | $ | 10,624 | $ | 16 | |||||||||
Certificates of deposit and other securities with maturities of less than one year are classified as short-term investments and are carried at fair value, which approximates cost. Fixed maturity securities are classified as available-for-sale and are carried at fair value. The contractual cash flows of the U.S. Treasury Securities and obligations of U.S. Government agencies investments are either guaranteed by the U.S. Government or an agency of the U.S. Government. The corporate securities are highly rated securities with no indicators of potential impairment. | |||||||||||||||||
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2014 | |
Insurance [Abstract] | ' |
Reinsurance | ' |
NOTE 12· Reinsurance | |
The Company protects itself from claims related losses by reinsuring all claims related risk exposure. The only line of insurance the Company writes is flood insurance associated with the Wright acquisition, with all exposure reinsured with the FEMA for basic admitted policies conforming to the NFIP. For excess flood insurance policies, all exposure is reinsured with a reinsurance carrier. Reinsurance does not legally discharge the ceding insurer from the primary liability for the full amount due under the reinsured policies. Reinsurance premiums, commissions, expense reimbursement and related reserves related to ceded business are accounted for on a basis consistent with the accounting for the original policies issued and the terms of reinsurance contracts. Premiums earned and losses and loss adjustment expenses incurred are reported net of reinsurance amounts. Other underwriting expenses are shown net of earned ceding commission income. The liabilities for unpaid losses and loss adjustment expenses and unearned premiums are reported gross of ceded reinsurance recoverable. | |
Balances due from reinsurers on unpaid losses and loss adjustment expenses, including an estimate of such recoverables related to reserves for incurred but not reported (“IBNR”) losses, are reported as assets and are included in reinsurance recoverable even though amounts due on unpaid loss and loss adjustment expense are not recoverable from the reinsurer until such losses are paid. The Company does not believe it is exposed to any material credit risk through its reinsurance as the reinsurer is the FEMA for basic admitted flood policies and a national reinsurance carrier for excess flood policies, which is rated A+ from AM Best. Historically, no amounts due from reinsurance have been written off as uncollectible. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
NOTE 13· Subsequent Events | |
On July 15, 2014, the Series B Senior Notes totaling $100.0 million matured and the principal plus remaining interest were paid off. In a planned event to retire the notes on the maturity date, the Company borrowed $100.0 million from the revolving portion of the Credit Facility Revolving Loan. The Company has an outstanding balance of $475.0 million of the $800.0 million revolving portion of the Credit Facility Revolving Loan. | |
Nature_of_Operations_Policies
Nature of Operations (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
Brown & Brown, Inc., a Florida corporation, and its subsidiaries (collectively, “Brown & Brown” or the “Company”) is a diversified insurance agency, wholesale brokerage, insurance programs and services organization that markets and sells to its customers insurance products and services, primarily in the property and casualty area. 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 entity, professional and individual customers; the National Programs Division, acting as a managing general agent (“MGA”), provides professional liability and related package products for certain professionals, flood coverage, 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 markets; the Wholesale Brokerage Division, which markets and sells excess and surplus commercial 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, Social Security disability and Medicare benefits advocacy services, and catastrophe claims adjusting services. In addition, as the result of our acquisition of the stock of The Wright Insurance Group, LLC (“Wright”), in May 2014, we own a flood insurance carrier that is a Wright subsidiary. This carrier’s business consists of policies written pursuant to the National Flood Insurance Program (“NFIP”), the program administered by the Federal Emergency Management Agency (“FEMA”) and several excess flood insurance policies which are fully reinsured. | |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciliation between Basic and Diluted Weighted Average Shares Outstanding | ' | ||||||||||||||||
The following is a reconciliation between basic and diluted weighted average shares outstanding: | |||||||||||||||||
For the three months | For the six months | ||||||||||||||||
ended June 30, | ended June 30, | ||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $ | 61,755 | $ | 52,007 | $ | 114,170 | $ | 112,138 | |||||||||
Net income attributable to unvested awarded performance stock | (1,531 | ) | (1,157 | ) | (2,915 | ) | (2,467 | ) | |||||||||
Net income attributable to common shares | $ | 60,224 | $ | 50,850 | $ | 111,255 | $ | 109,671 | |||||||||
Weighted average number of common shares outstanding – basic | 144,840 | 144,041 | 145,133 | 143,984 | |||||||||||||
Less unvested awarded performance stock included in weighted average number of common shares outstanding – basic | (3,590 | ) | (3,205 | ) | (3,705 | ) | (3,168 | ) | |||||||||
Weighted average number of common shares outstanding for basic earnings per common share | 141,250 | 140,836 | 141,428 | 140,816 | |||||||||||||
Dilutive effect of stock options | 1,782 | 2,185 | 1,741 | 2,122 | |||||||||||||
Weighted average number of shares outstanding – diluted | 143,032 | 143,021 | 143,169 | 142,938 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.43 | $ | 0.36 | $ | 0.79 | $ | 0.78 | |||||||||
Diluted | $ | 0.42 | $ | 0.36 | $ | 0.78 | $ | 0.77 | |||||||||
Business_Combinations_Tables
Business Combinations (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
2014 Acquisitions [Member] | ' | ||||||||||||||||||||||||||||
Acquisitions Accounted for Business Combinations | ' | ||||||||||||||||||||||||||||
The following table summarizes the aggregate purchase price allocations made as of the date of the acquisitions for the current-year acquisitions and adjustments made during the measurement period for prior-year acquisitions: | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Name | Business | Effective | Cash | Other | Recorded | Net Assets | Maximum | ||||||||||||||||||||||
Segment | Date of | Paid | Payable | Earn-Out | Acquired | Potential Earn- | |||||||||||||||||||||||
Acquisition | Payable | Out Payable | |||||||||||||||||||||||||||
The Wright Insurance Group, LLC. | National | May 1, 2014 | 610,158 | — | — | 610,158 | — | ||||||||||||||||||||||
Programs | |||||||||||||||||||||||||||||
Pacific Resources Benefits Advisors, LLC | Retail | May 1, 2014 | $ | 90,000 | $ | — | $ | 8,819 | $ | 98,819 | $ | 35,000 | |||||||||||||||||
Axia Strategies, Inc. | Wholesale | 1-May-14 | 9,870 | — | 1,824 | 11,694 | 5,200 | ||||||||||||||||||||||
Brokerage | |||||||||||||||||||||||||||||
Other | Various | Various | 10,074 | 125 | 2,515 | 12,714 | 6,028 | ||||||||||||||||||||||
Total | $ | 720,102 | $ | 125 | $ | 13,158 | $ | 733,385 | $ | 46,228 | |||||||||||||||||||
Estimated Fair Values of Aggregate Assets and Liabilities Acquired | ' | ||||||||||||||||||||||||||||
The following table summarizes the adjustments made to the estimated fair values along with the aggregate assets and liabilities acquired as of the date of each acquisition: | |||||||||||||||||||||||||||||
(in thousands) | PacRes | Axia | Wright | Other | Total | ||||||||||||||||||||||||
Cash | $ | — | $ | — | $ | 25,365 | $ | — | $ | 25,365 | |||||||||||||||||||
Other current assets | 2,383 | — | 16,768 | 436 | 19,587 | ||||||||||||||||||||||||
Fixed assets | 53 | 24 | 7,445 | 1,719 | 9,241 | ||||||||||||||||||||||||
Reinsurance recoverable | — | — | 25,238 | — | 25,238 | ||||||||||||||||||||||||
Prepaid reinsurance premiums | — | — | 289,013 | — | 289,013 | ||||||||||||||||||||||||
Goodwill | 70,255 | 7,377 | 417,539 | 7,936 | 503,107 | ||||||||||||||||||||||||
Purchased customer accounts | 26,460 | 4,252 | 213,958 | 2,842 | 247,512 | ||||||||||||||||||||||||
Non-compete agreements | 21 | 41 | 1,119 | 119 | 1,300 | ||||||||||||||||||||||||
Other assets | — | — | 20,045 | — | 20,045 | ||||||||||||||||||||||||
Total assets acquired | 99,172 | 11,694 | 1,016,490 | 13,052 | 1,140,408 | ||||||||||||||||||||||||
Other current liabilities | (353 | ) | — | (14,911 | ) | (338 | ) | (15,602 | ) | ||||||||||||||||||||
Losses and loss adjustment expense | — | — | (25,238 | ) | — | (25,238 | ) | ||||||||||||||||||||||
Unearned premiums | — | — | (289,013 | ) | — | (289,013 | ) | ||||||||||||||||||||||
Deferred income tax, net | — | — | (44,476 | ) | — | (44,476 | ) | ||||||||||||||||||||||
Other liabilities | — | — | (32,694 | ) | — | (32,694 | ) | ||||||||||||||||||||||
Total liabilities assumed | (353 | ) | — | (406,332 | ) | (338 | ) | (407,023 | ) | ||||||||||||||||||||
Net assets acquired | $ | 98,819 | 11,694 | 610,158 | $ | 12,714 | $ | 733,385 | |||||||||||||||||||||
Results of Operations | ' | ||||||||||||||||||||||||||||
These unaudited pro forma results are not necessarily indicative of the actual results of operations that would have occurred had the acquisitions actually been made at the beginning of the respective periods. | |||||||||||||||||||||||||||||
(UNAUDITED) | For the three months | For the six months | |||||||||||||||||||||||||||
ended June 30, | ended June 30, | ||||||||||||||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Total revenues | $ | 410,801 | $ | 365,964 | $ | 812,972 | $ | 737,673 | |||||||||||||||||||||
Income before income taxes | $ | 106,186 | 99,431 | $ | 206,102 | 211,003 | |||||||||||||||||||||||
Net income | $ | 64,427 | 59,975 | $ | 124,753 | 127,408 | |||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||
Basic | $ | 0.44 | $ | 0.42 | $ | 0.86 | $ | 0.88 | |||||||||||||||||||||
Diluted | $ | 0.44 | $ | 0.41 | $ | 0.85 | $ | 0.87 | |||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||
Basic | 141,250 | 140,836 | 141,428 | 140,816 | |||||||||||||||||||||||||
Diluted | 143,032 | 143,021 | 143,169 | 142,938 | |||||||||||||||||||||||||
2013 Acquisitions [Member] | ' | ||||||||||||||||||||||||||||
Acquisitions Accounted for Business Combinations | ' | ||||||||||||||||||||||||||||
The following table summarizes the aggregate purchase price allocations made as of the date of each acquisition for current year acquisitions and adjustments made during the measurement period for prior year acquisitions: | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Name | Business | Effective | Cash | Other | Recorded | Net Assets | Maximum | ||||||||||||||||||||||
Segment | Date of | Paid | Payable | Earn-Out | Acquired | Potential Earn- | |||||||||||||||||||||||
Acquisition | Payable | Out Payable | |||||||||||||||||||||||||||
Arrowhead General Insurance Agency Superholding Corporation | National | January 9, 2012 | $ | — | $ | (454 | ) | $ | — | $ | (454 | ) | $ | — | |||||||||||||||
Programs; | |||||||||||||||||||||||||||||
Services | |||||||||||||||||||||||||||||
Insurcorp & GGM Investments LLC | Retail | 1-May-12 | — | — | (834 | ) | (834 | ) | — | ||||||||||||||||||||
Richard W. Endlar Insurance Agency, Inc. | Retail | 1-May-12 | — | — | 220 | 220 | — | ||||||||||||||||||||||
Texas Security General Insurance Agency, Inc. | Wholesale | September 1, 2012 | — | — | (107 | ) | (107 | ) | — | ||||||||||||||||||||
Brokerage | |||||||||||||||||||||||||||||
The Rollins Agency, Inc. | Retail | 1-Jun-13 | 13,792 | 50 | 2,256 | 16,098 | 4,300 | ||||||||||||||||||||||
Other | Various | Various | 592 | 35 | 298 | 925 | 448 | ||||||||||||||||||||||
Total | $ | 14,384 | $ | (369 | ) | $ | 1,833 | $ | 15,848 | $ | 4,748 | ||||||||||||||||||
Estimated Fair Values of Aggregate Assets and Liabilities Acquired | ' | ||||||||||||||||||||||||||||
The following table summarizes the estimated fair values of the aggregate assets and liabilities acquired as of the date of each acquisition and adjustments made during the measurement period for prior year acquisitions: | |||||||||||||||||||||||||||||
(in thousands) | Rollins | Arrowhead | Insurcorp | Endlar | Texas | Other | Total | ||||||||||||||||||||||
Security | |||||||||||||||||||||||||||||
Other current assets | $ | — | $ | — | $ | — | $ | — | $ | 25 | $ | 1,455 | $ | 1,480 | |||||||||||||||
Fixed assets | 30 | — | — | — | — | 1 | 31 | ||||||||||||||||||||||
Goodwill | 13,019 | (454 | ) | (566 | ) | 216 | (843 | ) | (685 | ) | 10,687 | ||||||||||||||||||
Purchased customer accounts | 3,876 | — | (268 | ) | 4 | 708 | 170 | 4,490 | |||||||||||||||||||||
Non-compete agreements | 31 | — | — | — | — | 31 | 62 | ||||||||||||||||||||||
Total assets acquired | 16,956 | (454 | ) | (834 | ) | 220 | (110 | ) | 972 | 16,750 | |||||||||||||||||||
Other current liabilities | (858 | ) | — | — | — | 3 | (47 | ) | (902 | ) | |||||||||||||||||||
Net assets acquired | $ | 16,098 | $ | (454 | ) | $ | (834 | ) | $ | 220 | $ | (107 | ) | $ | 925 | $ | 15,848 | ||||||||||||
Results of Operations | ' | ||||||||||||||||||||||||||||
These unaudited pro forma results are not necessarily indicative of the actual results of operations that would have occurred had the acquisitions actually been made at the beginning of the respective periods. | |||||||||||||||||||||||||||||
(UNAUDITED) | For the three months ended | For the six months ended | |||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
(in thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Total revenues | $ | 326,753 | $ | 292,242 | $ | 663,460 | $ | 596,931 | |||||||||||||||||||||
Income before income taxes | 86,506 | 71,528 | 186,503 | 154,953 | |||||||||||||||||||||||||
Net income | 52,179 | 42,700 | 112,616 | 92,511 | |||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||
Basic | $ | 0.36 | $ | 0.3 | $ | 0.78 | $ | 0.65 | |||||||||||||||||||||
Diluted | $ | 0.36 | $ | 0.29 | $ | 0.77 | $ | 0.63 | |||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||
Basic | 140,836 | 139,086 | 140,816 | 139,044 | |||||||||||||||||||||||||
Diluted | 143,021 | 141,828 | 142,938 | 141,664 | |||||||||||||||||||||||||
Additions, Payments, and Net Changes, as well as Interest Expense Accretion on Estimated Acquisition Earn-Out Payables | ' | ||||||||||||||||||||||||||||
The resulting additions, payments, and net changes, as well as the interest expense accretion on the estimated acquisition earn-out payables, for the three and six months ended June 30, 2014 and 2013, were as follows: | |||||||||||||||||||||||||||||
For the three months | For the six months | ||||||||||||||||||||||||||||
ended June 30, | ended June 30, | ||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 48,806 | $ | 49,469 | $ | 43,058 | $ | 52,987 | |||||||||||||||||||||
Additions to estimated acquisition earn-out payables | 14,527 | 2,554 | 14,807 | 1,833 | |||||||||||||||||||||||||
Payments for estimated acquisition earn-out payables | (10,814 | ) | (3,761 | ) | (11,429 | ) | (8,080 | ) | |||||||||||||||||||||
Subtotal | 52,519 | 48,262 | 46,436 | 46,740 | |||||||||||||||||||||||||
Net change in earnings from estimated acquisition earn-out payables: | |||||||||||||||||||||||||||||
Change in fair value on estimated acquisition earn-out payables | (375 | ) | 159 | 5,228 | 1,156 | ||||||||||||||||||||||||
Interest expense accretion | 552 | 497 | 1,032 | 1,022 | |||||||||||||||||||||||||
Net change in earnings from estimated acquisition earn-out payables | 177 | 656 | 6,260 | 2,178 | |||||||||||||||||||||||||
Balance as of June 30 | $ | 52,696 | $ | 48,918 | $ | 52,696 | $ | 48,918 | |||||||||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Changes in Carrying Value of Goodwill by Operating Segment | ' | ||||||||||||||||||||
The changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2014 are as follows: | |||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Total | ||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||
Balance as of January 1, 2014 | $ | 1,131,257 | $ | 467,144 | $ | 287,242 | $ | 120,530 | $ | 2,006,173 | |||||||||||
Goodwill of acquired businesses | 78,395 | 417,539 | 7,412 | (239 | ) | 503,107 | |||||||||||||||
Balance as of June 30, 2014 | $ | 1,209,652 | $ | 884,683 | $ | 294,654 | $ | 120,291 | $ | 2,509,280 | |||||||||||
Amortizable_Intangible_Assets_
Amortizable Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Amortizable Intangible Assets | ' | ||||||||||||||||||||||||||||||||
Amortizable intangible assets at June 30, 2014 and December 31, 2013, consisted of the following: | |||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | |||||||||||||||||||||||||
Carrying | Amortization | Carrying | Average | Carrying | Amortization | Carrying | Average | ||||||||||||||||||||||||||
Value | Value | Life | Value | Value | Life | ||||||||||||||||||||||||||||
(Years)(1) | (Years)(1) | ||||||||||||||||||||||||||||||||
Purchased customer accounts | $ | 1,367,293 | $ | (542,432 | ) | $ | 824,861 | 15 | $ | 1,120,719 | $ | (505,137 | ) | $ | 615,582 | 14.9 | |||||||||||||||||
Non-compete agreements | 29,415 | (25,315 | ) | 4,100 | 6.8 | 28,115 | (24,809 | ) | 3,306 | 7 | |||||||||||||||||||||||
Total | $ | 1,396,708 | $ | (567,747 | ) | $ | 828,961 | $ | 1,148,834 | $ | (529,946 | ) | $ | 618,888 | |||||||||||||||||||
-1 | Weighted average life calculated as of the date of acquisition. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt Instrument | ' | ||||||||
Long-term debt at June 30, 2014 and December 31, 2013, consisted of the following: | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Unsecured senior notes | $ | 799,734 | $ | 480,000 | |||||
Revolving credit facilities | 375,000 | — | |||||||
Total debt | 1,174,734 | 480,000 | |||||||
Less current portion | (6,609 | ) | (100,000 | ) | |||||
Long-term debt | $ | 1,168,125 | $ | 380,000 | |||||
Supplemental_Disclosures_of_Ca1
Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Summary of Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities | ' | ||||||||
For the six months | |||||||||
ended June 30, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Cash paid during the period for: | |||||||||
Interest | $ | 11,070 | $ | 7,660 | |||||
Income taxes | $ | 58,079 | $ | 52,077 | |||||
Brown & Brown’s significant non-cash investing and financing activities are summarized as follows: | |||||||||
For the six months | |||||||||
ended June 30, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Other payable issued for purchased customer accounts | $ | 125 | $ | 257 | |||||
Estimated acquisition earn-out payables and related charges | $ | 13,158 | $ | 1,833 | |||||
Notes received on the sale of fixed assets and customer accounts | $ | 131 | $ | 614 |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Summarized Financial Information Reportable Segments | ' | ||||||||||||||||||||||||
Summarized financial information concerning Brown & Brown’s reportable segments is shown in the following table. 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, 2014 | |||||||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Other | Total | |||||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||||||
Total revenues | $ | 210,976 | $ | 90,875 | $ | 60,059 | $ | 35,757 | $ | 97 | $ | 397,764 | |||||||||||||
Investment income | $ | 16 | $ | 66 | $ | 7 | $ | — | $ | 105 | $ | 194 | |||||||||||||
Amortization | $ | 10,457 | $ | 6,214 | $ | 2,932 | $ | 1,010 | $ | 10 | $ | 20,623 | |||||||||||||
Depreciation | $ | 1,614 | $ | 1,842 | $ | 670 | $ | 628 | $ | 488 | $ | 5,242 | |||||||||||||
Interest expense | $ | 11,224 | $ | 12,447 | $ | 523 | $ | 1,971 | $ | (19,161 | ) | $ | 7,004 | ||||||||||||
Income before income taxes | $ | 49,098 | $ | 9,685 | $ | 17,376 | $ | 5,008 | $ | 20,614 | $ | 101,781 | |||||||||||||
Total assets | $ | 3,166,802 | $ | 2,406,240 | $ | 990,355 | $ | 278,137 | $ | (1,911,062 | ) | $ | 4,930,472 | ||||||||||||
Capital expenditures | $ | 1,567 | $ | 5,159 | $ | 517 | $ | 244 | $ | 363 | $ | 7,850 | |||||||||||||
For the three months ended June 30, 2013 | |||||||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Other | Total | |||||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||||||
Total revenues | $ | 171,819 | $ | 68,354 | $ | 54,823 | $ | 30,403 | $ | 393 | $ | 325,792 | |||||||||||||
Investment income | $ | 23 | $ | 5 | $ | 4 | $ | — | $ | 207 | $ | 239 | |||||||||||||
Amortization | $ | 8,789 | $ | 3,511 | $ | 2,887 | $ | 925 | $ | 9 | $ | 16,121 | |||||||||||||
Depreciation | $ | 1,371 | $ | 1,326 | $ | 716 | $ | 401 | $ | 449 | $ | 4,263 | |||||||||||||
Interest expense | $ | 5,649 | $ | 5,590 | $ | 723 | $ | 1,883 | $ | (9,848 | ) | $ | 3,997 | ||||||||||||
Income before income taxes | $ | 44,482 | $ | 11,226 | $ | 15,760 | $ | 2,589 | $ | 12,164 | $ | 86,221 | |||||||||||||
Total assets | $ | 2,501,084 | $ | 1,224,175 | $ | 925,901 | $ | 246,235 | $ | (1,571,075 | ) | $ | 3,326,320 | ||||||||||||
Capital expenditures | $ | 1,488 | $ | 1,420 | $ | 561 | $ | 379 | $ | 328 | $ | 4,176 | |||||||||||||
For the six months ended June 30, 2014 | |||||||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Other | Total | |||||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||||||
Total revenues | $ | 413,667 | $ | 165,045 | $ | 115,079 | $ | 67,399 | $ | 168 | $ | 761,358 | |||||||||||||
Investment income | $ | 32 | $ | 71 | $ | 11 | $ | 2 | $ | 181 | $ | 297 | |||||||||||||
Amortization | $ | 20,608 | $ | 9,989 | $ | 5,815 | $ | 2,067 | $ | 20 | $ | 38,499 | |||||||||||||
Depreciation | $ | 3,198 | $ | 3,309 | $ | 1,320 | $ | 1,091 | $ | 964 | $ | 9,882 | |||||||||||||
Interest expense | $ | 21,937 | $ | 17,888 | $ | 942 | $ | 3,941 | $ | (33,632 | ) | $ | 11,076 | ||||||||||||
Income before income taxes | $ | 90,343 | $ | 25,808 | $ | 30,114 | $ | 7,823 | $ | 34,530 | $ | 188,618 | |||||||||||||
Total assets | $ | 3,166,802 | $ | 2,406,240 | $ | 990,355 | $ | 278,137 | $ | (1,911,062 | ) | $ | 4,930,472 | ||||||||||||
Capital expenditures | $ | 3,679 | $ | 6,857 | $ | 999 | $ | 535 | $ | 507 | $ | 12,577 | |||||||||||||
For the six months ended June 30, 2013 | |||||||||||||||||||||||||
(in thousands) | Retail | National | Wholesale | Services | Other | Total | |||||||||||||||||||
Programs | Brokerage | ||||||||||||||||||||||||
Total revenues | $ | 346,387 | $ | 137,294 | $ | 103,520 | $ | 73,050 | $ | 553 | $ | 660,804 | |||||||||||||
Investment income | $ | 46 | $ | 10 | $ | 9 | $ | 1 | $ | 359 | $ | 425 | |||||||||||||
Amortization | $ | 17,600 | $ | 7,030 | $ | 5,784 | $ | 1,849 | $ | 19 | $ | 32,282 | |||||||||||||
Depreciation | $ | 2,742 | $ | 2,574 | $ | 1,423 | $ | 798 | $ | 893 | $ | 8,430 | |||||||||||||
Interest expense | $ | 11,849 | $ | 11,284 | $ | 1,478 | $ | 3,804 | $ | (20,434 | ) | $ | 7,981 | ||||||||||||
Income before income taxes | $ | 90,693 | $ | 25,238 | $ | 26,122 | $ | 16,542 | $ | 27,117 | $ | 185,712 | |||||||||||||
Total assets | $ | 2,501,084 | $ | 1,224,175 | $ | 925,901 | $ | 246,235 | $ | (1,571,075 | ) | $ | 3,326,320 | ||||||||||||
Capital expenditures | $ | 2,823 | $ | 2,312 | $ | 1,097 | $ | 498 | $ | 393 | $ | 7,123 |
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Summary of Investments | ' | ||||||||||||||||
Investments at June 30, 2014 and December 31, 2013 consisted of the following: | |||||||||||||||||
30-Jun-14 | December 31,2013 | ||||||||||||||||
Carrying Value | Carrying Value | ||||||||||||||||
(in thousands) | Current | Non- | Current | Non- | |||||||||||||
Current | Current | ||||||||||||||||
Certificates of deposit, U.S. Treasury securities and obligations of U.S. Government agencies, Corporate debt and other securities | $ | 12,300 | $ | 19,021 | $ | 10,624 | $ | 16 |
Nature_of_Operations_Additiona
Nature of Operations - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Number of reportable segments | 4 |
Net_Income_Per_Share_Reconcili
Net Income Per Share - Reconciliation between Basic and Diluted Weighted Average Shares Outstanding (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $61,755 | $52,007 | $114,170 | $112,138 |
Net income attributable to unvested awarded performance stock | -1,531 | -1,157 | -2,915 | -2,467 |
Net income attributable to common shares | $60,224 | $50,850 | $111,255 | $109,671 |
Weighted average number of common shares outstanding - basic | 144,840 | 144,041 | 145,133 | 143,984 |
Less unvested awarded performance stock included in weighted average number of common shares outstanding - basic | -3,590 | -3,205 | -3,705 | -3,168 |
Weighted average number of common shares outstanding for basic earnings per common share | 141,250 | 140,836 | 141,428 | 140,816 |
Weighted average number of common shares outstanding for basic earnings per common share | 141,250 | 140,836 | 141,428 | 140,816 |
Dilutive effect of stock options | 1,782 | 2,185 | 1,741 | 2,122 |
Weighted average number of shares outstanding - diluted | 143,032 | 143,021 | 143,169 | 142,938 |
Basic | $0.43 | $0.36 | $0.79 | $0.78 |
Diluted | $0.42 | $0.36 | $0.78 | $0.77 |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price of acquisitions | $17,865,000 | $1,140,408,000 | $17,865,000 | ' | ' | ' | ' |
Cash payment for acquisition | ' | 720,102,000 | 14,366,000 | ' | ' | ' | ' |
Other payables for acquisition | 85,000 | 125,000 | 85,000 | ' | ' | ' | ' |
Assumption of liabilities | ' | 407,023,000 | 860,000 | ' | ' | ' | ' |
Recorded earn-out payables | ' | 13,158,000 | 2,554,000 | ' | ' | ' | ' |
Average annual operating profit earned period, minimum (years) | ' | '1 year | '1 year | ' | ' | ' | ' |
Average annual operating profit earned period, maximum (years) | ' | '3 years | '3 years | ' | ' | ' | ' |
Aggregate purchase price of acquisitions | ' | 33,000 | ' | ' | ' | ' | ' |
Total goodwill | 10,687,000 | 503,107,000 | 10,687,000 | ' | ' | ' | ' |
Goodwill assigned | 10,687,000 | 503,107,000 | 10,687,000 | ' | ' | ' | ' |
Goodwill currently deductible for income tax purposes | 9,308,000 | 148,592,000 | 9,308,000 | ' | ' | ' | ' |
Goodwill currently non-deductible for income tax purposes | -454,000 | 341,357,000 | -454,000 | ' | ' | ' | ' |
Goodwill related to the recorded earn-out payables | 1,833,000 | 13,158,000 | 1,833,000 | ' | ' | ' | ' |
Total revenues related to acquisitions | 627,000 | 29,796,000 | 627,000 | ' | ' | ' | ' |
Income before income taxes related to acquisitions | 142,000 | 1,294,000 | 142,000 | ' | ' | ' | ' |
Recorded earn-out payable | ' | 13,158,000 | 1,833,000 | ' | ' | ' | ' |
Maximum future contingency payments related to acquisitions | ' | 153,019,000 | ' | ' | ' | ' | ' |
Percentage recognition by acquirer of fair value of acquired assets | ' | 100.00% | ' | ' | ' | ' | ' |
Future earnings of acquired entities, term basis of potential earn-out obligations, minimum (years) | ' | '1 year | ' | ' | ' | ' | ' |
Future earnings of acquired entities, term basis of potential earn-out obligations, maximum (years) | ' | '3 years | ' | ' | ' | ' | ' |
Estimated acquisition earn-out payables | 48,918,000 | 52,696,000 | 48,918,000 | 48,806,000 | 43,058,000 | 49,469,000 | 52,987,000 |
Scenario, Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price of acquisitions | 1,115,000 | ' | 1,115,000 | ' | ' | ' | ' |
Cash payment for acquisition | ' | ' | 18,000 | ' | ' | ' | ' |
Other payables for acquisition | 454,000 | ' | 454,000 | ' | ' | ' | ' |
Assumption of liabilities | ' | ' | 42,000 | ' | ' | ' | ' |
Recorded earn-out payable | ' | ' | 721,000 | ' | ' | ' | ' |
Accounts Payable [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Estimated acquisition earn-out payables | ' | 20,278,000 | ' | ' | ' | ' | ' |
Purchased customer accounts [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Weighted average life (years) | ' | '15 years | '15 years | ' | ' | ' | ' |
Non-compete agreements [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Weighted average life (years) | ' | '3 years 3 months 18 days | '5 years | ' | ' | ' | ' |
Retail [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Goodwill assigned | 11,984,000 | 78,395,000 | 11,984,000 | ' | ' | ' | ' |
National Programs [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Goodwill assigned | -454,000 | 417,539,000 | -454,000 | ' | ' | ' | ' |
Services [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Goodwill assigned | ' | -239,000 | ' | ' | ' | ' | ' |
Wholesale Brokerage [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Goodwill assigned | -843,000 | 7,412,000 | -843,000 | ' | ' | ' | ' |
Asset Acquisitions [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of acquisitions | ' | 5 | 2 | ' | ' | ' | ' |
Stock Acquisitions [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of acquisitions | ' | 1 | ' | ' | ' | ' | ' |
Other Non-Current Liability [Member] | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Estimated acquisition earn-out payables | ' | $32,418,000 | ' | ' | ' | ' | ' |
Business_Combinations_Acquisit
Business Combinations - Acquisitions Accounted for Business Combinations (Detail) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Cash Paid | $720,102,000 | $14,366,000 |
Other Payable | 125,000 | 85,000 |
Net Assets Acquired | 733,385,000 | 15,848,000 |
The Wright Insurance Group, LLC. [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Net Assets Acquired | 610,158,000 | ' |
Pacific Resources Benefits Advisors, LLC [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Net Assets Acquired | 98,819,000 | ' |
Axia Strategies, Inc. [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Net Assets Acquired | 11,694,000 | ' |
Other Acquisitions [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Net Assets Acquired | 12,714,000 | 925,000 |
Arrowhead General Insurance Agency Superholding Corporation [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Net Assets Acquired | ' | -454,000 |
Insurcorp & GGM Investments LLC [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Net Assets Acquired | ' | -834,000 |
Richard W. Endlar Insurance Agency, Inc. [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Net Assets Acquired | ' | 220,000 |
Texas Security General Insurance Agency, Inc. [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Net Assets Acquired | ' | -107,000 |
The Rollins Agency, Inc. [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Net Assets Acquired | ' | 16,098,000 |
2014 Acquisitions [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Cash Paid | 720,102,000 | ' |
Other Payable | 125,000 | ' |
Recorded Earn-Out Payable | 13,158,000 | ' |
Net Assets Acquired | 733,385,000 | ' |
Maximum Potential Earn-Out Payable | 46,228,000 | ' |
2014 Acquisitions [Member] | The Wright Insurance Group, LLC. [Member] | National Programs Divisions [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Effective Date of Acquisition | 1-May-14 | ' |
Cash Paid | 610,158,000 | ' |
Net Assets Acquired | 610,158,000 | ' |
2014 Acquisitions [Member] | Pacific Resources Benefits Advisors, LLC [Member] | Retail [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Effective Date of Acquisition | 1-May-14 | ' |
Cash Paid | 90,000,000 | ' |
Recorded Earn-Out Payable | 8,819,000 | ' |
Net Assets Acquired | 98,819,000 | ' |
Maximum Potential Earn-Out Payable | 35,000,000 | ' |
2014 Acquisitions [Member] | Axia Strategies, Inc. [Member] | Wholesale Brokerage [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Effective Date of Acquisition | 1-May-14 | ' |
Cash Paid | 9,870,000 | ' |
Recorded Earn-Out Payable | 1,824,000 | ' |
Net Assets Acquired | 11,694,000 | ' |
Maximum Potential Earn-Out Payable | 5,200,000 | ' |
2014 Acquisitions [Member] | Other Acquisitions [Member] | Various [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Cash Paid | 10,074,000 | ' |
Other Payable | 125,000 | ' |
Recorded Earn-Out Payable | 2,515,000 | ' |
Net Assets Acquired | 12,714,000 | ' |
Maximum Potential Earn-Out Payable | 6,028,000 | ' |
2013 Acquisitions [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Cash Paid | ' | 14,384,000 |
Other Payable | ' | -369,000 |
Recorded Earn-Out Payable | ' | 1,833,000 |
Net Assets Acquired | ' | 15,848,000 |
Maximum Potential Earn-Out Payable | ' | 4,748,000 |
2013 Acquisitions [Member] | Other Acquisitions [Member] | Various [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Cash Paid | ' | 592,000 |
Other Payable | ' | 35,000 |
Recorded Earn-Out Payable | ' | 298,000 |
Net Assets Acquired | ' | 925,000 |
Maximum Potential Earn-Out Payable | ' | 448,000 |
2013 Acquisitions [Member] | Arrowhead General Insurance Agency Superholding Corporation [Member] | National Programs & Services [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Effective Date of Acquisition | ' | 9-Jan-12 |
Other Payable | ' | -454,000 |
Net Assets Acquired | ' | -454,000 |
2013 Acquisitions [Member] | Insurcorp & GGM Investments LLC [Member] | Retail [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Effective Date of Acquisition | ' | 1-May-12 |
Recorded Earn-Out Payable | ' | -834,000 |
Net Assets Acquired | ' | -834,000 |
2013 Acquisitions [Member] | Richard W. Endlar Insurance Agency, Inc. [Member] | Retail [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Effective Date of Acquisition | ' | 1-May-12 |
Recorded Earn-Out Payable | ' | 220,000 |
Net Assets Acquired | ' | 220,000 |
2013 Acquisitions [Member] | Texas Security General Insurance Agency, Inc. [Member] | Wholesale Brokerage [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Effective Date of Acquisition | ' | 1-Sep-12 |
Recorded Earn-Out Payable | ' | -107,000 |
Net Assets Acquired | ' | -107,000 |
2013 Acquisitions [Member] | The Rollins Agency, Inc. [Member] | Retail [Member] | ' | ' |
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' |
Effective Date of Acquisition | ' | 1-Jun-13 |
Cash Paid | ' | 13,792,000 |
Other Payable | ' | 50,000 |
Recorded Earn-Out Payable | ' | 2,256,000 |
Net Assets Acquired | ' | 16,098,000 |
Maximum Potential Earn-Out Payable | ' | $4,300,000 |
Business_Combinations_Estimate
Business Combinations - Estimated Fair Values of Aggregate Assets and Liabilities Acquired (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Cash | $25,365,000 | ' |
Other current assets | 19,587,000 | 1,480,000 |
Fixed assets | 9,241,000 | 31,000 |
Reinsurance recoverable | 25,238,000 | ' |
Prepaid reinsurance premiums | 289,013,000 | ' |
Goodwill | 503,107,000 | 10,687,000 |
Purchased customer accounts | 247,512,000 | 4,490,000 |
Non-compete agreements | 1,300,000 | 62,000 |
Other assets | 20,045,000 | ' |
Total assets acquired | 1,140,408,000 | 16,750,000 |
Other current liabilities | -15,602,000 | -902,000 |
Losses and loss adjustment expense | -25,238,000 | ' |
Unearned premiums | -289,013,000 | ' |
Deferred income tax, net | -44,476,000 | ' |
Other liabilities | -32,694,000 | ' |
Total liabilities assumed | -407,023,000 | ' |
Net assets acquired | 733,385,000 | 15,848,000 |
Pacific Resources Benefits Advisors, LLC [Member] | ' | ' |
Other current assets | 2,383,000 | ' |
Fixed assets | 53,000 | ' |
Goodwill | 70,255,000 | ' |
Purchased customer accounts | 26,460,000 | ' |
Non-compete agreements | 21,000 | ' |
Total assets acquired | 99,172,000 | ' |
Other current liabilities | -353,000 | ' |
Total liabilities assumed | -353,000 | ' |
Net assets acquired | 98,819,000 | ' |
Axia Strategies, Inc. [Member] | ' | ' |
Fixed assets | 24,000 | ' |
Goodwill | 7,377,000 | ' |
Purchased customer accounts | 4,252,000 | ' |
Non-compete agreements | 41,000 | ' |
Total assets acquired | 11,694,000 | ' |
Net assets acquired | 11,694,000 | ' |
The Wright Insurance Group, LLC. [Member] | ' | ' |
Cash | 25,365,000 | ' |
Other current assets | 16,768,000 | ' |
Fixed assets | 7,445,000 | ' |
Reinsurance recoverable | 25,238,000 | ' |
Prepaid reinsurance premiums | 289,013,000 | ' |
Goodwill | 417,539,000 | ' |
Purchased customer accounts | 213,958,000 | ' |
Non-compete agreements | 1,119,000 | ' |
Other assets | 20,045,000 | ' |
Total assets acquired | 1,016,490,000 | ' |
Other current liabilities | -14,911,000 | ' |
Losses and loss adjustment expense | -25,238,000 | ' |
Unearned premiums | -289,013,000 | ' |
Deferred income tax, net | -44,476,000 | ' |
Other liabilities | -32,694,000 | ' |
Total liabilities assumed | -406,332,000 | ' |
Net assets acquired | 610,158,000 | ' |
Other Acquisitions [Member] | ' | ' |
Other current assets | 436,000 | 1,455,000 |
Fixed assets | 1,719,000 | 1,000 |
Goodwill | 7,936,000 | -685,000 |
Purchased customer accounts | 2,842,000 | 170,000 |
Non-compete agreements | 119,000 | 31,000 |
Total assets acquired | 13,052,000 | 972,000 |
Other current liabilities | -338,000 | -47,000 |
Total liabilities assumed | -338,000 | ' |
Net assets acquired | 12,714,000 | 925,000 |
The Rollins Agency, Inc. [Member] | ' | ' |
Fixed assets | ' | 30,000 |
Goodwill | ' | 13,019,000 |
Purchased customer accounts | ' | 3,876,000 |
Non-compete agreements | ' | 31,000 |
Total assets acquired | ' | 16,956,000 |
Other current liabilities | ' | -858,000 |
Net assets acquired | ' | 16,098,000 |
Arrowhead General Insurance Agency Superholding Corporation [Member] | ' | ' |
Goodwill | ' | -454,000 |
Total assets acquired | ' | -454,000 |
Net assets acquired | ' | -454,000 |
Insurcorp & GGM Investments LLC [Member] | ' | ' |
Goodwill | ' | -566,000 |
Purchased customer accounts | ' | -268,000 |
Total assets acquired | ' | -834,000 |
Net assets acquired | ' | -834,000 |
Richard W. Endlar Insurance Agency, Inc. [Member] | ' | ' |
Goodwill | ' | 216,000 |
Purchased customer accounts | ' | 4,000 |
Total assets acquired | ' | 220,000 |
Net assets acquired | ' | 220,000 |
Texas Security General Insurance Agency, Inc. [Member] | ' | ' |
Other current assets | ' | 25,000 |
Goodwill | ' | -843,000 |
Purchased customer accounts | ' | 708,000 |
Total assets acquired | ' | -110,000 |
Other current liabilities | ' | 3,000 |
Net assets acquired | ' | ($107,000) |
Business_Combinations_Results_
Business Combinations - Results of Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
2014 Acquisitions [Member] | 2014 Acquisitions [Member] | 2014 Acquisitions [Member] | 2014 Acquisitions [Member] | 2013 Acquisitions [Member] | 2013 Acquisitions [Member] | 2013 Acquisitions [Member] | 2013 Acquisitions [Member] | |||||
Business Acquisition, Pro Forma Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | $410,801 | $365,964 | $812,972 | $737,673 | $326,753 | $292,242 | $663,460 | $596,931 |
Income before income taxes | ' | ' | ' | ' | 106,186 | 99,431 | 206,102 | 211,003 | 86,506 | 71,528 | 186,503 | 154,953 |
Net income | ' | ' | ' | ' | $64,427 | $59,975 | $124,753 | $127,408 | $52,179 | $42,700 | $112,616 | $92,511 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | ' | ' | ' | ' | $0.44 | $0.42 | $0.86 | $0.88 | $0.36 | $0.30 | $0.78 | $0.65 |
Diluted | ' | ' | ' | ' | $0.44 | $0.41 | $0.85 | $0.87 | $0.36 | $0.29 | $0.77 | $0.63 |
Weighted average number of shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | 141,250 | 140,836 | 141,428 | 140,816 | 141,250 | 140,836 | 141,428 | 140,816 | 140,836 | 139,086 | 140,816 | 139,044 |
Diluted | 143,032 | 143,021 | 143,169 | 142,938 | 143,032 | 143,021 | 143,169 | 142,938 | 143,021 | 141,828 | 142,938 | 141,664 |
Business_Combinations_Addition1
Business Combinations - Additions, Payments, and Net Changes, as well as Interest Expense Accretion on Estimated Acquisition Earn-Out Payables (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Business Combinations [Abstract] | ' | ' | ' | ' |
Beginning balance | $48,806,000 | $49,469,000 | $43,058,000 | $52,987,000 |
Additions to estimated acquisition earn-out payables | 14,527,000 | 2,554,000 | 14,807,000 | 1,833,000 |
Payments for estimated acquisition earn-out payables | -10,814,000 | -3,761,000 | -11,429,000 | -8,080,000 |
Subtotal | 52,519,000 | 48,262,000 | 46,436,000 | 46,740,000 |
Change in fair value on estimated acquisition earn-out payables | -375,000 | 159,000 | 5,228,000 | 1,156,000 |
Interest expense accretion | 552,000 | 497,000 | 1,032,000 | 1,022,000 |
Net change in earnings from estimated acquisition earn-out payables | 177,000 | 656,000 | 6,260,000 | 2,178,000 |
Ending balance | $52,696,000 | $48,918,000 | $52,696,000 | $48,918,000 |
Goodwill_Changes_in_Carrying_V
Goodwill - Changes in Carrying Value of Goodwill by Operating Segment (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Line Items] | ' |
Beginning balance | $2,006,173 |
Goodwill of acquired businesses | 503,107 |
Ending balance | 2,509,280 |
Retail [Member] | ' |
Goodwill [Line Items] | ' |
Beginning balance | 1,131,257 |
Goodwill of acquired businesses | 78,395 |
Ending balance | 1,209,652 |
National Programs [Member] | ' |
Goodwill [Line Items] | ' |
Beginning balance | 467,144 |
Goodwill of acquired businesses | 417,539 |
Ending balance | 884,683 |
Wholesale Brokerage [Member] | ' |
Goodwill [Line Items] | ' |
Beginning balance | 287,242 |
Goodwill of acquired businesses | 7,412 |
Ending balance | 294,654 |
Services [Member] | ' |
Goodwill [Line Items] | ' |
Beginning balance | 120,530 |
Goodwill of acquired businesses | -239 |
Ending balance | $120,291 |
Amortizable_Intangible_Assets_1
Amortizable Intangible Assets - Amortizable Intangible Assets (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | $1,396,708 | $1,148,834 |
Accumulated Amortization | -567,747 | -529,946 |
Net Carrying Value | 828,961 | 618,888 |
Purchased customer accounts [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 1,367,293 | 1,120,719 |
Accumulated Amortization | -542,432 | -505,137 |
Net Carrying Value | 824,861 | 615,582 |
Weighted Average Life (Years) | '15 years | '14 years 10 months 24 days |
Non-compete agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 29,415 | 28,115 |
Accumulated Amortization | -25,315 | -24,809 |
Net Carrying Value | $4,100 | $3,306 |
Weighted Average Life (Years) | '6 years 9 months 18 days | '7 years |
Amortizable_Intangible_Assets_2
Amortizable Intangible Assets - Additional Information (Detail) (USD $) | Jun. 30, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Amortization expense estimated, year one (2014) | $82,503,000 |
Amortization expense estimated, year two (2015) | 86,861,000 |
Amortization expense estimated, year three (2016) | 82,331,000 |
Amortization expense estimated, year four (2017) | 79,377,000 |
Amortization expense estimated, year five (2018) | $73,977,000 |
LongTerm_Debt_LongTerm_Debt_In
Long-Term Debt - Long-Term Debt Instrument (Detail) (USD $) | Jun. 30, 2014 | Apr. 16, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Debt Disclosure [Abstract] | ' | ' | ' |
Unsecured senior notes | $799,734 | ' | $480,000 |
Revolving credit facilities | 375,000 | 25,000 | ' |
Total debt | 1,174,734 | ' | 480,000 |
Less current portion | -6,609 | ' | -100,000 |
Long-term debt | 1,168,125 | ' | 380,000 |
Total debt | $1,174,734 | ' | $480,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | Apr. 17, 2014 | Apr. 16, 2014 | Dec. 31, 2013 | 20-May-14 | Jun. 30, 2014 | Apr. 17, 2014 | Jan. 09, 2012 | Jun. 30, 2014 | Jan. 09, 2012 | Jan. 09, 2012 | Jan. 09, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 20-May-14 | Jun. 30, 2014 | 20-May-14 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 12, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Sun Trust Term Loan [Member] | Sun Trust Term Loan [Member] | JPM Bridge Facility [Member] | JPMorgan Chase Bank, N.A. [Member] | Sun Trust Revolver [Member] | Sun Trust Revolver [Member] | JPM Term Loan [Member] | Wells Fargo Revolver [Member] | Wells Fargo Revolver [Member] | Wells Fargo Revolver [Member] | Bank Of America Loan Term Loan [Member] | Bank Of America Loan Term Loan [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Term Loan [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Master Agreement [Member] | Master Agreement [Member] | Master Agreement [Member] | Master Agreement [Member] | Master Agreement [Member] | New Master Agreement [Member] | New Master Agreement [Member] | New Master Agreement [Member] | LIBOR [Member] | |||||
Beecher Acquisition [Member] | Beecher Acquisition [Member] | Series B [Member] | Series B [Member] | Series A [Member] | Senior Notes[Member] | Sun Trust Revolver [Member] | Wells Fargo Revolver [Member] | Bank Of America Loan Term Loan [Member] | Series C [Member] | Series D [Member] | Series E [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured senior notes outstanding | $799,734,000 | ' | ' | $480,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | $100,000,000 | $100,000,000 | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | $150,000,000 | $25,000,000 | $25,000,000 | $100,000,000 | ' | $0 | $0 | ' |
Debt instrument, issuance date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jul-04 | ' | 15-Sep-04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22-Dec-06 | 1-Feb-08 | 15-Sep-11 | ' | ' | ' | ' |
Debt instrument interest rate stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.08% | ' | 5.57% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.66% | 5.37% | 4.50% | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-16 | ' | ' | ' | ' | ' | 31-Dec-16 | ' | ' | 31-Dec-16 | ' | 15-Jul-14 | ' | 15-Sep-11 | ' | ' | 31-Dec-16 | ' | ' | ' | ' | ' | ' | ' | ' | 22-Dec-16 | 15-Jan-15 | 15-Sep-18 | ' | ' | ' | ' |
Notes redeemed on maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shelf facility capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | 125,000,000 | ' | ' | ' |
Length of the issuance period of long-term debt (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | '3 years | ' | ' | ' |
Long-term debt maturity, period length, maximum (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Maturity dates, not to exceed ten years | ' | ' | ' | ' | ' | 'Maturity dates, not to exceed ten years | ' | ' |
Revolving and term loan | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | 50,000,000 | 50,000,000 | 50,000,000 | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential increased in line of credit facility | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | 100,000,000 | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit usage fee, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit usage fee, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.40% | ' | 1.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR below base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability fees, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.18% | ' | 0.18% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability fees, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.40% | ' | 1.40% | 1.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted LIBOR Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facilities | 375,000,000 | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550,000,000 | ' | 375,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving and term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility remaining amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
30-day Adjusted LIBOR Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.19% |
Unsecured revolving credit facility | ' | 800,000,000 | ' | ' | ' | ' | 1,350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured term loans | ' | 550,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term Loan Agreement | ' | ' | ' | ' | 230,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility interest rate above adjusted LIBOR rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.38% | ' | 1.18% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit fees | 0.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt balance outstanding | ' | ' | ' | ' | ' | $925,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplemental_Disclosures_of_Ca2
Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities - Significant Non-Cash Investing and Financing Activities (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Supplemental Cash Flow Elements [Abstract] | ' | ' |
Interest | $11,070 | $7,660 |
Income taxes | 58,079 | 52,077 |
Other payable issued for purchased customer accounts | 125 | 257 |
Estimated acquisition earn-out payables and related charges | 13,158 | 1,833 |
Notes received on the sale of fixed assets and customer accounts | $131 | $614 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 4 | ' | ' |
Total revenues | $397,764 | $325,792 | $761,358 | $660,804 | ' |
London, Bermuda and Cayman Islands [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | $3,800 | $2,800 | $7,000 | $5,900 | $12,200 |
Segment_Information_Summarized
Segment Information - Summarized Financial Information Reportable Segments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | $397,764 | $325,792 | $761,358 | $660,804 | ' |
Investment income | 194 | 239 | 297 | 425 | ' |
Amortization | 20,623 | 16,121 | 38,499 | 32,282 | ' |
Depreciation | 5,242 | 4,263 | 9,882 | 8,430 | ' |
Interest expense | 7,004 | 3,997 | 11,076 | 7,981 | ' |
Income before income taxes | 101,781 | 86,221 | 188,618 | 185,712 | ' |
Total assets | 4,930,472 | 3,326,320 | 4,930,472 | 3,326,320 | 3,649,508 |
Capital expenditures | 7,850 | 4,176 | 12,577 | 7,123 | ' |
Operating Segments [Member] | Retail [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | 210,976 | 171,819 | 413,667 | 346,387 | ' |
Investment income | 16 | 23 | 32 | 46 | ' |
Amortization | 10,457 | 8,789 | 20,608 | 17,600 | ' |
Depreciation | 1,614 | 1,371 | 3,198 | 2,742 | ' |
Interest expense | 11,224 | 5,649 | 21,937 | 11,849 | ' |
Income before income taxes | 49,098 | 44,482 | 90,343 | 90,693 | ' |
Total assets | 3,166,802 | 2,501,084 | 3,166,802 | 2,501,084 | ' |
Capital expenditures | 1,567 | 1,488 | 3,679 | 2,823 | ' |
Operating Segments [Member] | National Programs [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | 90,875 | 68,354 | 165,045 | 137,294 | ' |
Investment income | 66 | 5 | 71 | 10 | ' |
Amortization | 6,214 | 3,511 | 9,989 | 7,030 | ' |
Depreciation | 1,842 | 1,326 | 3,309 | 2,574 | ' |
Interest expense | 12,447 | 5,590 | 17,888 | 11,284 | ' |
Income before income taxes | 9,685 | 11,226 | 25,808 | 25,238 | ' |
Total assets | 2,406,240 | 1,224,175 | 2,406,240 | 1,224,175 | ' |
Capital expenditures | 5,159 | 1,420 | 6,857 | 2,312 | ' |
Operating Segments [Member] | Wholesale Brokerage [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | 60,059 | 54,823 | 115,079 | 103,520 | ' |
Investment income | 7 | 4 | 11 | 9 | ' |
Amortization | 2,932 | 2,887 | 5,815 | 5,784 | ' |
Depreciation | 670 | 716 | 1,320 | 1,423 | ' |
Interest expense | 523 | 723 | 942 | 1,478 | ' |
Income before income taxes | 17,376 | 15,760 | 30,114 | 26,122 | ' |
Total assets | 990,355 | 925,901 | 990,355 | 925,901 | ' |
Capital expenditures | 517 | 561 | 999 | 1,097 | ' |
Operating Segments [Member] | Services [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | 35,757 | 30,403 | 67,399 | 73,050 | ' |
Investment income | ' | ' | 2 | 1 | ' |
Amortization | 1,010 | 925 | 2,067 | 1,849 | ' |
Depreciation | 628 | 401 | 1,091 | 798 | ' |
Interest expense | 1,971 | 1,883 | 3,941 | 3,804 | ' |
Income before income taxes | 5,008 | 2,589 | 7,823 | 16,542 | ' |
Total assets | 278,137 | 246,235 | 278,137 | 246,235 | ' |
Capital expenditures | 244 | 379 | 535 | 498 | ' |
Other [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | 97 | 393 | 168 | 553 | ' |
Investment income | 105 | 207 | 181 | 359 | ' |
Amortization | 10 | 9 | 20 | 19 | ' |
Depreciation | 488 | 449 | 964 | 893 | ' |
Interest expense | -19,161 | -9,848 | -33,632 | -20,434 | ' |
Income before income taxes | 20,614 | 12,164 | 34,530 | 27,117 | ' |
Total assets | -1,911,062 | -1,571,075 | -1,911,062 | -1,571,075 | ' |
Capital expenditures | $363 | $328 | $507 | $393 | ' |
Investments_Summary_of_Investm
Investments - Summary of Investments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments Debt And Equity Securities [Abstract] | ' | ' |
Certificates of deposit, U.S. Treasury securities and obligations of U.S. Government agencies, Corporate debt and other securities,Current | $12,300 | $10,624 |
Certificates of deposit, U.S. Treasury securities and obligations of U.S. Government agencies, Corporate debt and other securities,Non-Current | $19,021 | $16 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Apr. 17, 2014 | Apr. 16, 2014 | Jul. 15, 2014 | Jul. 15, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | ||||
Series B Senior Notes [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Series B Senior Notes repaid | ' | ' | ' | ' | $100,000,000 |
Revolving loan facility | 375,000,000 | ' | 25,000,000 | 100,000,000 | ' |
Outstanding Balance | ' | ' | ' | 475,000,000 | ' |
Outstanding Amount | ' | $500,000,000 | ' | $800,000,000 | ' |