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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
Segment and Geographic Information | 13. Segment and Geographic Information In connection with the realignment of operating segment manager responsibilities in January 2021, the Company has realigned its operating segments by moving to a global service line reporting structure consisting of Loss Adjusting, TPA: Broadspire and Platform Solutions. The Company's revised reportable segments are comprised of the following: • Loss Adjusting, which services the global property and casualty market. This is comprised of the previously reported Crawford Claims Solutions segment, excluding Networks (as defined below) and Crawford Legal Services, and the Global Technical Services service line previously reported within Crawford Specialty Solutions. • TPA: Broadspire, 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 Broadspire segment and the Crawford Legal Services service line previously reported within the Crawford Claims Solutions segment. • Platform Solutions, which consists of Contractor Connection and Networks service lines. 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 prior periods have been restated to reflect the change in reportable segments. The Crawford Loss Adjusting and Crawford TPA Solutions reportable segments represent the aggregation of certain geographic operating segments within those service lines. 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 Loss Adjusting, 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 Platform 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 impairment, restructuring and other costs, gain 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, 2021, 2020, and 2019 related to the Company's reportable segments is presented below.
|  | Crawford Loss Adjusting |  |  | Crawford TPA Solutions |  |  | Crawford Platform Solutions |  |  | Total |
|  | (In thousands) |
2021 |  |  |  |  |  |  |  |  |  |  |  |
Revenues before reimbursements |  | $ | 475,587 |  |  | $ | 397,964 |  |  | $ | 228,481 |  |  | $ | 1,102,032 |
Segment operating earnings |  |  | 22,990 |  |  |  | 17,567 |  |  |  | 36,334 |  |  |  | 76,891 |
Depreciation and amortization (1) |  |  | 2,884 |  |  |  | 7,966 |  |  |  | 3,793 |  |  |  | 14,643 |
Assets (2) |  |  | 246,360 |  |  |  | 97,282 |  |  |  | 123,635 |  |  |  | 467,277 |
2020 |  |  |  |  |  |  |  |  |  |  |  |
Revenues before reimbursements |  | $ | 438,491 |  |  | $ | 371,392 |  |  | $ | 172,609 |  |  | $ | 982,492 |
Segment operating earnings |  |  | 41,104 |  |  |  | 20,507 |  |  |  | 27,650 |  |  |  | 89,261 |
Depreciation and amortization (1) |  |  | 2,405 |  |  |  | 9,451 |  |  |  | 2,647 |  |  |  | 14,503 |
Assets (2) |  |  | 197,918 |  |  |  | 94,771 |  |  |  | 71,612 |  |  |  | 364,301 |
2019 |  |  |  |  |  |  |  |  |  |  |  |
Revenues before reimbursements |  | $ | 457,484 |  |  | $ | 397,626 |  |  | $ | 150,692 |  |  | $ | 1,005,802 |
Segment operating earnings |  |  | 30,125 |  |  |  | 28,506 |  |  |  | 26,677 |  |  |  | 85,308 |
Depreciation and amortization (1) |  |  | 3,405 |  |  |  | 10,267 |  |  |  | 2,576 |  |  |  | 16,248 |
Assets (2) |  |  | 232,172 |  |  |  | 89,333 |  |  |  | 66,331 |  |  |  | 387,836 |
(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 Loss Adjusting, Crawford TPA Solutions and Crawford Platform Solutions segme nts are shown in Note 2, "Revenue Recognition." Capital expenditures for the years ended December 31, 2021, 2020, and 2019 are shown in the following table:
Year Ended December 31, |  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (In thousands) |
Crawford Loss Adjusting |  | $ | 3,598 |  |  | $ | 1,229 |  |  | $ | 1,625 |
Crawford TPA Solutions |  |  | 8,765 |  |  |  | 6,982 |  |  |  | 4,331 |
Crawford Platform Solutions |  |  | 3,681 |  |  |  | 12,099 |  |  |  | 2,746 |
Corporate |  |  | 14,910 |  |  |  | 17,070 |  |  |  | 12,422 |
Total capital expenditures |  | $ | 30,954 |  |  | $ | 37,380 |  |  | $ | 21,124 |
The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2021, 2020, and 2019 was as follows:
Year Ended December 31, |  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (In thousands) |
Segments' revenues before reimbursements |  | $ | 1,102,032 |  |  | $ | 982,492 |  |  | $ | 1,005,802 |
Reimbursements |  |  | 37,199 |  |  |  | 33,703 |  |  |  | 41,825 |
Total consolidated revenues |  | $ | 1,139,231 |  |  | $ | 1,016,195 |  |  | $ | 1,047,627 |
The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2021, 2020, and 2019 were as follows:
Year Ended December 31, |  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (In thousands) |
Operating earnings of all reportable segments |  | $ | 76,891 |  |  | $ | 89,261 |  |  | $ | 85,308 |
Unallocated corporate and shared costs and credits |  |  | (14,386 | ) |  |  | (17,431 | ) |  |  | (7,699 | )
Net corporate interest expense |  |  | (6,559 | ) |  |  | (7,923 | ) |  |  | (10,774 | )
Stock option expense |  |  | (1,053 | ) |  |  | (1,122 | ) |  |  | (1,885 | )
Amortization of acquisition-related intangible assets |  |  | (11,029 | ) |  |  | (11,653 | ) |  |  | (11,277 | )
Goodwill and intangible asset impairment charges |  |  | — |  |  |  | (17,674 | ) |  |  | (17,484 | )
Arbitration and claim settlements |  |  | — |  |  |  | — |  |  |  | (12,552 | )
Restructuring and other costs, net |  |  | — |  |  |  | (8,133 | ) |  |  | — |
Gain on disposition of businesses, net |  |  | — |  |  |  | 13,763 |  |  |  | — |
Income before income taxes |  | $ | 43,864 |  |  | $ | 39,088 |  |  | $ | 23,637 |
The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at 2021 and 2020 are presented in the following table:
December 31, |  | 2021 |  |  | 2020 |
|  | (In thousands) |
Assets of reportable segments |  | $ | 467,277 |  |  | $ | 364,301 |
Corporate assets: |  |  |  |  |  |
Cash and cash equivalents |  |  | 53,228 |  |  |  | 44,656 |
Income taxes receivable |  |  | 4,936 |  |  |  | 1,269 |
Prepaid expenses and other current assets |  |  | 34,576 |  |  |  | 29,490 |
Net property and equipment |  |  | 33,721 |  |  |  | 36,402 |
Operating lease right-of-use asset, net |  |  | 99,369 |  |  |  | 109,315 |
Capitalized software costs, net |  |  | 75,802 |  |  |  | 71,021 |
Deferred income tax assets |  |  | 21,266 |  |  |  | 25,595 |
Other noncurrent assets |  |  | 62,464 |  |  |  | 70,935 |
Total corporate assets |  |  | 385,362 |  |  |  | 388,683 |
Total assets |  | $ | 852,639 |  |  | $ | 752,984 |
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 consist 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) |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues before reimbursements |  | $ | 658,785 |  |  | $ | 134,663 |  |  | $ | 84,945 |  |  | $ | 223,639 |  |  | $ | 1,102,032 |
Long-lived assets |  |  | 145,061 |  |  |  | 15,923 |  |  |  | 19,579 |  |  |  | 28,329 |  |  |  | 208,892 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues before reimbursements |  |  | 570,820 |  |  |  | 128,674 |  |  |  | 89,162 |  |  |  | 193,836 |  |  |  | 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 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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