XML 31 R19.htm IDEA: XBRL DOCUMENT v3.21.1
Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information

10. Segment Information

Financial information for the three months ended March 31, 2021 and 2020 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

 

(in thousands)

 

March 31,

2021

 

 

March 31,

2020

 

Revenues:

 

 

 

 

 

 

 

 

Crawford Loss Adjusting

 

$

112,537

 

 

$

107,104

 

Crawford TPA Solutions

 

 

98,245

 

 

 

97,997

 

Crawford Platform Solutions

 

 

42,399

 

 

 

32,430

 

Total segment revenues before reimbursements

 

 

253,181

 

 

 

237,531

 

Reimbursements

 

 

8,974

 

 

 

8,515

 

Total revenues

 

$

262,155

 

 

$

246,046

 

 

 

 

 

 

 

 

 

 

Segment Operating Earnings

 

 

 

 

 

 

 

 

Crawford Loss Adjusting

 

$

4,862

 

 

$

672

 

Crawford TPA Solutions

 

 

4,716

 

 

 

6,298

 

Crawford Platform Solutions

 

 

4,601

 

 

 

3,139

 

Total segment operating earnings

 

 

14,179

 

 

 

10,109

 

 

 

 

 

 

 

 

 

 

Deduct:

 

 

 

 

 

 

 

 

Unallocated corporate and shared costs, net

 

 

(1,153

)

 

 

(3,096

)

Net corporate interest expense

 

 

(1,582

)

 

 

(2,224

)

Stock option expense

 

 

(140

)

 

 

(290

)

Amortization of customer-relationship intangible assets

 

 

(2,799

)

 

 

(2,756

)

Goodwill impairment

 

 

—

 

 

 

(17,674

)

Restructuring costs

 

 

—

 

 

 

(5,714

)

Income before income taxes

 

$

8,505

 

 

$

(21,645

)

 

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 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, 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.

As of January 1, 2021, the Company realigned its operating segment manager responsibilities and reorganized its global service line structure to consist of Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. The Company's revised reportable segments are comprised of the following:

 

•

Crawford Loss Adjusting, which services the global property and casualty market. This is comprised of the previously reported Crawford Claims Solutions segment, excluding both Networks (as defined below) and Crawford Legal Services, and including the Global Technical Services service line previously reported within Crawford Specialty Solutions.

 

•

Crawford TPA Solutions, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers worldwide. This is comprised of the previously reported Crawford TPA Solutions segment and the Crawford Legal Services service line previously reported within the Crawford Claims Solutions segment.

 

•

Crawford Platform Solutions, which consists of the Contractor Connection and Networks service lines and serves the global property and casualty insurance company markets. This is comprised of the previously reported Contractor Connection service line within Crawford Specialty Solutions and the Networks service line, which includes Catastrophe operations, WeGoLook, and certain international network businesses previously reported within the Crawford Claims Solutions segment.

The Crawford Loss Adjusting and Crawford TPA Solutions reportable segments represent the aggregation of certain geographic operating segments within those service lines.

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

 

 

 

Three Months Ended

 

(in thousands)

 

March 31,

2021

 

 

March 31,

2020

 

Crawford TPA Solutions

 

 

 

 

 

 

 

 

Claims Management Services

 

$

62,119

 

 

$

55,928

 

Medical Management Services

 

 

36,126

 

 

 

42,069

 

Total Revenues before Reimbursements--Crawford TPA Solutions

 

$

98,245

 

 

$

97,997

 

Crawford Platform Solutions

 

 

 

 

 

 

 

 

Contractor Connection

 

$

20,982

 

 

$

19,038

 

Network Business

 

 

21,417

 

 

 

13,392

 

Total Revenues before Reimbursements--Crawford Platform Solutions

 

$

42,399

 

 

$

32,430