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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information

10. Segment Information

Financial information for the three and six months ended June 30, 2020 and 2019 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

 

June 30,

2020

 

 

June 30,

2019

 

 

June 30,

2020

 

 

June 30,

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crawford Claims Solutions

 

$

81,451

 

 

$

86,003

 

 

$

159,038

 

 

$

169,322

 

Crawford TPA Solutions

 

 

86,725

 

 

 

99,518

 

 

 

183,660

 

 

 

197,312

 

Crawford Specialty Solutions

 

 

66,240

 

 

 

71,360

 

 

 

129,249

 

 

 

137,305

 

Total segment revenues before reimbursements

 

 

234,416

 

 

 

256,881

 

 

 

471,947

 

 

 

503,939

 

Reimbursements

 

 

8,459

 

 

 

10,965

 

 

 

16,974

 

 

 

20,284

 

Total revenues

 

$

242,875

 

 

$

267,846

 

 

$

488,921

 

 

$

524,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crawford Claims Solutions

 

$

2,789

 

 

$

1,710

 

 

$

(890

)

 

$

1,397

 

Crawford TPA Solutions

 

 

3,171

 

 

 

5,026

 

 

 

9,456

 

 

 

11,759

 

Crawford Specialty Solutions

 

 

13,993

 

 

 

12,612

 

 

 

20,950

 

 

 

24,807

 

Total segment operating earnings

 

 

19,953

 

 

 

19,348

 

 

 

29,516

 

 

 

37,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deduct:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate and shared costs, net

 

 

(1,709

)

 

 

3,170

 

 

 

(4,259

)

 

 

(744

)

Net corporate interest expense

 

 

(2,452

)

 

 

(2,468

)

 

 

(4,676

)

 

 

(5,184

)

Stock option expense

 

 

(286

)

 

 

(413

)

 

 

(576

)

 

 

(898

)

Amortization of customer-relationship intangible assets

 

 

(2,732

)

 

 

(2,802

)

 

 

(5,488

)

 

 

(5,600

)

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

(17,674

)

 

 

—

 

Restructuring costs

 

 

—

 

 

 

—

 

 

 

(5,714

)

 

 

—

 

Arbitration and claim settlements

 

 

—

 

 

 

(11,352

)

 

 

—

 

 

 

(11,352

)

Loss on disposition of business

 

 

(341

)

 

 

—

 

 

 

(341

)

 

 

—

 

Income (Loss) before income taxes

 

$

12,433

 

 

$

5,483

 

 

$

(9,212

)

 

$

14,185

 

 

Operating earnings is the primary financial performance measure used by the Company's senior management and chief operating decision maker ("CODM") to evaluate the financial performance of the Company's three operating segments and make resource allocation and certain compensation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate segment operating performance using the same criteria used by the Company's senior management and CODM. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represent segment earnings before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, goodwill impairment, restructuring costs, loss on disposition of business, arbitration and claim settlements, income taxes, and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests.

Segment operating earnings includes allocations of certain corporate and shared costs. If the Company changes its allocation methods or changes the types of costs that are allocated to its three operating segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process.

Intersegment transactions are not material for any period presented.

Revenues before reimbursements by major service line in the Crawford TPA Solutions segment, which operates under the Broadspire brand globally, and the Crawford Specialty Solutions segment are shown in the following table. The Company considers all Crawford Claims Solutions revenues to be derived from one service line.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

 

June 30,

2020

 

 

June 30,

2019

 

 

June 30,

2020

 

 

June 30,

2019

 

Crawford TPA Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Claims Management Services

 

$

52,150

 

 

$

55,734

 

 

$

107,016

 

 

$

112,645

 

Medical Management Services

 

 

34,575

 

 

 

43,784

 

 

 

76,644

 

 

 

84,667

 

Total Revenues before Reimbursements--Crawford TPA Solutions

 

$

86,725

 

 

$

99,518

 

 

$

183,660

 

 

$

197,312

 

Crawford Specialty Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Technical Services

 

$

45,470

 

 

$

45,265

 

 

$

89,378

 

 

$

89,638

 

Contractor Connection

 

 

20,770

 

 

 

26,095

 

 

 

39,871

 

 

 

47,667

 

Total Revenues before Reimbursements--Crawford Specialty Solutions

 

$

66,240

 

 

$

71,360

 

 

$

129,249

 

 

$

137,305