XML 39 R23.htm IDEA: XBRL DOCUMENT v3.20.4
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment and Geographic Information

13.

Segment and Geographic Information

The Company's three reportable segments represent components of the business for which separate financial information is available, and which is evaluated regularly by the CODM. The segments, organized based upon the nature of services, are: Crawford Claims Solutions, which primarily serves the global property and casualty insurance company markets; Crawford TPA Solutions, which serves the global casualty, disability and self-insurance marketplace; and Crawford Specialty Solutions which serves the global property and casualty insurance company markets. Intersegment sales are recorded at cost and are not material.

Operating earnings is the primary financial performance measure used by the Company's senior management and the CODM to evaluate the financial performance of the Company's three reportable segments and make resource allocation 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 and intangible asset impairments, restructuring and other costs, (gain) loss on disposition of business line, 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 reportable segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process.

In the normal course of its business, the Company sometimes pays for certain out-of-pocket expenses that are thereafter reimbursed by its clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in the Company's consolidated results of operations. However, in evaluating segment results, Company management excludes these reimbursements and related expenses from segment results, as they offset each other.

Financial information as of and for the years ended December 31, 2020, 2019, and 2018 related to the Company's reportable segments is presented below.

 

 

Crawford

Claims

Solutions

 

 

Crawford

TPA

Solutions

 

 

Crawford

Specialty

Solutions

 

 

Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

356,447

 

 

$

364,983

 

 

$

261,062

 

 

$

982,492

 

Segment operating earnings

 

 

14,375

 

 

 

21,476

 

 

 

52,553

 

 

 

88,404

 

Depreciation and amortization (1)

 

 

2,405

 

 

 

9,345

 

 

 

1,291

 

 

 

13,041

 

Assets (2)

 

 

120,777

 

 

 

88,002

 

 

 

155,522

 

 

 

364,301

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

339,837

 

 

$

393,856

 

 

$

272,109

 

 

$

1,005,802

 

Segment operating earnings

 

 

7,630

 

 

 

27,173

 

 

 

49,321

 

 

 

84,124

 

Depreciation and amortization (1)

 

 

2,461

 

 

 

10,152

 

 

 

1,811

 

 

 

14,424

 

Assets (2)

 

 

136,451

 

 

 

85,810

 

 

 

165,575

 

 

 

387,836

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

361,053

 

 

$

405,335

 

 

$

304,583

 

 

$

1,070,971

 

Segment operating earnings

 

 

11,308

 

 

 

36,909

 

 

 

49,564

 

 

 

97,781

 

Depreciation and amortization (1)

 

 

3,485

 

 

 

9,844

 

 

 

3,517

 

 

 

16,846

 

Assets (2)

 

 

163,899

 

 

 

92,007

 

 

 

165,415

 

 

 

421,321

 

 

(1)

Excludes amortization expense of finite-lived customer relationships and trade name intangible assets.

(2)

Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net.

Revenues by geographic region and major service line for the Crawford Claims Solutions, Crawford TPA Solutions and Crawford Specialty Solutions segments are shown in Note 2, "Revenue Recognition."

Capital expenditures for the years ended December 31, 2020, 2019, and 2018 are shown in the following table:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Crawford Claims Solutions

 

$

5,443

 

 

$

1,396

 

 

$

3,811

 

Crawford TPA Solutions

 

 

6,527

 

 

 

3,259

 

 

 

5,947

 

Crawford Specialty Solutions

 

 

5,686

 

 

 

458

 

 

 

2,148

 

Corporate

 

 

19,724

 

 

 

16,011

 

 

 

18,114

 

Total capital expenditures

 

$

37,380

 

 

$

21,124

 

 

$

30,020

 

The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2020, 2019, and 2018 was as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Segments' revenues before reimbursements

 

$

982,492

 

 

$

1,005,802

 

 

$

1,070,971

 

Reimbursements

 

 

33,703

 

 

 

41,825

 

 

 

52,008

 

Total consolidated revenues

 

$

1,016,195

 

 

$

1,047,627

 

 

$

1,122,979

 

 

The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2020, 2019, and 2018 were as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Operating earnings of all reportable segments

 

$

88,404

 

 

$

84,124

 

 

$

97,781

 

Unallocated corporate and shared costs and credits

 

 

(16,574

)

 

 

(6,515

)

 

 

(9,321

)

Net corporate interest expense

 

 

(7,923

)

 

 

(10,774

)

 

 

(10,109

)

Stock option expense

 

 

(1,122

)

 

 

(1,885

)

 

 

(1,742

)

Amortization of acquisition-related intangible assets

 

 

(11,653

)

 

 

(11,277

)

 

 

(11,152

)

Goodwill and intangible asset impairments

 

 

(17,674

)

 

 

(17,484

)

 

 

(1,056

)

Arbitration and claim settlements

 

 

—

 

 

 

(12,552

)

 

 

—

 

Restructuring and other costs, net

 

 

(8,133

)

 

 

—

 

 

 

—

 

Gain (loss) on disposition of businesses, net

 

 

13,763

 

 

 

—

 

 

 

(20,270

)

Income before income taxes

 

$

39,088

 

 

$

23,637

 

 

$

44,131

 

The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at December 31, 2020 and 2019 are presented in the following table:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Assets of reportable segments

 

$

364,301

 

 

$

387,836

 

Corporate assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

44,656

 

 

 

51,802

 

Income taxes receivable

 

 

1,269

 

 

 

7,820

 

Prepaid expenses and other current assets

 

 

29,490

 

 

 

23,476

 

Net property and equipment

 

 

36,402

 

 

 

31,425

 

Operating lease right-of-use asset, net

 

 

109,315

 

 

 

102,354

 

Capitalized software costs, net

 

 

71,021

 

 

 

66,445

 

Deferred income tax assets

 

 

25,595

 

 

 

17,971

 

Other noncurrent assets

 

 

70,935

 

 

 

70,884

 

Total corporate assets

 

 

388,683

 

 

 

372,177

 

Total assets

 

$

752,984

 

 

$

760,013

 

Revenues and long-lived assets for the U.S., U.K. and Canada are set out below as these countries are material for geographical area disclosure. For the purposes of these geographic area disclosures, long-lived assets consists of the net property and equipment, capitalized software costs, net and operating lease right-of-use, net line items on the Company's Consolidated Balance Sheets and excludes intangible assets and goodwill.

 

 

 

U.S.

 

 

U.K.

 

 

Canada

 

 

All Other

International

 

 

Total

Company

 

 

 

(In thousands)

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

570,822

 

 

$

128,545

 

 

$

89,163

 

 

$

193,962

 

 

$

982,492

 

Long-lived assets

 

 

151,906

 

 

 

20,290

 

 

 

14,404

 

 

 

30,138

 

 

 

216,738

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

 

569,205

 

 

 

126,337

 

 

 

114,438

 

 

 

195,822

 

 

 

1,005,802

 

Long-lived assets

 

 

140,560

 

 

 

20,749

 

 

 

17,999

 

 

 

20,916

 

 

 

200,224

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

 

615,687

 

 

 

131,651

 

 

 

121,076

 

 

 

202,557

 

 

 

1,070,971

 

Long-lived assets

 

 

88,157

 

 

 

7,631

 

 

 

7,553

 

 

 

3,172

 

 

 

106,513