Brown & Brown Insurance 2016 Annual Report

Notes
to Consolidated Financial Statements
The following table summarizes the estimated fair values of the aggregate assets and liabilities acquired as of the date
of each acquisition. The data included in the “Other” column shows a negative adjustment for purchased customer accounts.
This is driven mainly by the final valuation adjustment for the acquisition of Wright.
Belling-
(in thousands) Liberty Spain ham Fitness SBA Bentrust MBA Smith Other Total
56
Other current
assets $ 2,486 $ 324 $ — $ 9 $ 652 $ — $ — $ — $ 169 $ 3,640
Fixed assets 40 50 25 17 41 36 33 73 59 374
Goodwill 10,010 15,748 9,608 8,105 39,859 8,166 13,471 10,374 21,040 136,381
Purchased
customer
accounts 4,506 7,430 3,223 3,715 23,000 2,789 7,338 3,526 (2,135) 53,392
Non-compete
agreements 24 21 21 — 21 43 11 31 156 328
Other assets — — — — 14 — — — — 14
Total assets
acquired 17,066 23,573 12,877 11,846 63,587 11,034 20,853 14,004 19,289 194,129
Other current
liabilities (42) (250) (48) (12) — (182) (6,280) (504) (4,895) (12,213)
Deferred income
tax, net — — — — — — — — 2,576 2,576
Other liabilities (2,043) — — — — — — (157) 635 (1,565)
Total liabilities
assumed (2,085) (250) (48) (12) — (182) (6,280) (661) (1,684) (11,202)
Net assets
acquired $ 14,981 $ 23,323 $ 12,829 $ 11,834 $ 63,587 $ 10,852 $ 14,573 $ 13,343 $ 17,605 $ 182,927
Brown & Brown, Inc.
The weighted-average useful lives for the acquired amortizable intangible assets are as follows: purchased customer
accounts, 15 years; and non-compete agreements, 5 years.
Goodwill of $136.4 million was allocated to the Retail, National Programs and Wholesale Brokerage Segments in the
amounts of $113.8 million, $18.0 million and $4.6 million, respectively. Of the total goodwill of $136.4 million, $91.1 million is
currently deductible for income tax purposes and $8.4 million is non-deductible. The remaining $36.9 million relates to the
recorded earn-out payables and will not be deductible until it is earned and paid.
For the acquisitions completed during 2015, the results of operations since the acquisition dates have been combined
with those of the Company. The total revenues from the acquisitions completed through December 31, 2015, included in the
Consolidated Statement of Income for the year ended December 31, 2015, were $28.2 million. The income before income
taxes, including the intercompany cost of capital charge, from the acquisitions completed through December 31, 2015,
included in the Consolidated Statement of Income for the year ended December 31, 2015, was $1.5 million. If the acquisitions
had occurred as of the beginning of the respective periods, 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.