Brown & Brown Insurance 2016 Annual Report

Ten-Year Statistical Summary
(in thousands, except per share data and other information) 2016 2015 2014
Revenues
Commissions & fees $ 1,762,787 $ 1,656,951 $ 1,567,460
Investment income 1,456 1,004 747
Other income, net 2,386 2,554 7,589
Total revenues 1,766,629 1,660,509 1,575,796
Expenses
Employee compensation and benefits 925,217 856,952 811,112
Other operating expenses 262,872 251,055 235,328
(Gain) Loss on disposal operations (1,291) (619) 47,425
Amortization 86,663 87,421 82,941
Depreciation 21,003 20,890 20,895
Interest expense 39,481 39,248 28,408
Change in estimated earn-out payables 9,185 3,003 9,938
Total expenses 1,343,130 1,257,950 1,236,047
Income before income taxes 423,499 402,559 339,749
Income taxes 166,008 159,241 132,853
Net income $ 257,491 $ 243,318 $ 206,896
Employee compensation and benefits relative to total revenues 52.4% 51.6% 51.5%
Other operating expenses relative to total revenues 14.9% 15.1% 14.9%
Earnings per Share Information
Net income per share—diluted $ 1.82 $ 1.70 $ 1.41
Weighted average number of shares outstanding—diluted 137,804 140,112 142,891
Dividends paid per share $ 0.50 $ 0.45 $ 0.41
Year-End Financial Position
Total assets $ 5,287,343 $ 5,004,479 $ 4,946,560
Long-term debt $ 1,018,372 $ 1,071,618 $ 1,142,948 (2)
Total shareholders’ equity $ 2,360,211 $ 2,149,776 $ 2,113,745
Total shares outstanding 140,104 138,985 143,486
Other Information
Number of full-time equivalent employees at year-end 8,297 7,807 7,591
Total revenues per average number of employees (3) $ 219,403 $ 215,679 $ 216,114
Stock price at year-end $ 44.86 $ 32.10 $ 32.91
Stock price earnings multiple at year-end (5) 24.6 18.9 23.3
Return on beginning shareholders’ equity (6) 12% 12% 10%
(1) Includes an $18,664 gain on the sale of our investment in Rock-Tenn Company.
(2) Represents the incremental new debt associated with the acquisition of Wright and evolution of our capital structure. Please refer to Part I, Item 7
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 8 “Long-Term Debt” for more details.
(3) Represents total revenues divided by the average of the number of full-time equivalent employees at the beginning of the year and the number of
full-time equivalent employees at the end of the year.
(4) Of the 881 increase in the number of full-time equivalent employees from 2011 to 2012, 523 employees related to the January 9, 2012 acquisition of
Arrowhead, and therefore, are considered to be full-time equivalent as of January 1, 2012. Thus, the average number of full-time equivalent employees for
2012 is considered to be 6,259.