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Segment Information | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Segment Information | 10. Segment Information As of January 1, 2022, the Company has realigned its operating segments by moving to a geographic reporting structure consisting of North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. The Company's revised reportable segments are comprised of the following: • North America Loss Adjusting, which services the North American property and casualty market. This is comprised of the previously reported Crawford Loss Adjusting segment in the U.S. and Canada, including Global Technical Services and edjuster. The Canadian operations include all operations within that country, including those previously reported within the Crawford TPA Solutions and Crawford Platform Solutions segments. • International Operations, which services the global property and casualty market outside North America. This is comprised of the previously reported Crawford Loss Adjusting segment outside of North America, including Crawford Legal Services which was previously within the Crawford TPA Solutions segment. The International Operations include all operations within the respective countries, including those previously reported within the Crawford TPA Solutions and Crawford Platform Solutions segments. • 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 in the U.S. • Platform Solutions, which consists of the Contractor Connection, Networks, and Subrogation service lines in the U.S. The Networks service line includes Catastrophe operations and WeGoLook. Financial information for the three and nine months ended September 30, 2022 and 2021 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 |  |  | Nine Months Ended |
(in thousands) |  | September 30, 2022 |  |  | September 30, 2021 |  |  | September 30, 2022 |  |  | September 30, 2021 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
North America Loss Adjusting |  | $ | 66,822 |  |  | $ | 64,334 |  |  | $ | 197,035 |  |  | $ | 176,844 |
International Operations |  |  | 86,066 |  |  |  | 91,888 |  |  |  | 269,048 |  |  |  | 269,624 |
Broadspire |  |  | 78,381 |  |  |  | 75,804 |  |  |  | 234,949 |  |  |  | 225,982 |
Platform Solutions |  |  | 63,655 |  |  |  | 56,474 |  |  |  | 166,262 |  |  |  | 136,688 |
Total segment revenues before reimbursements |  |  | 294,924 |  |  |  | 288,500 |  |  |  | 867,294 |  |  |  | 809,138 |
Reimbursements |  |  | 11,493 |  |  |  | 9,062 |  |  |  | 30,564 |  |  |  | 27,124 |
Total revenues |  | $ | 306,417 |  |  | $ | 297,562 |  |  | $ | 897,858 |  |  | $ | 836,262 |
Segment Operating Earnings (Loss) |  |  |  |  |  |  |  |  |  |  |  |
North America Loss Adjusting |  | $ | 3,678 |  |  | $ | 4,362 |  |  | $ | 10,508 |  |  | $ | 11,804 |
International Operations |  |  | (3,849 | ) |  |  | 1,947 |  |  |  | (7,623 | ) |  |  | 3,400 |
Broadspire |  |  | 6,198 |  |  |  | 6,939 |  |  |  | 20,299 |  |  |  | 20,243 |
Platform Solutions |  |  | 10,080 |  |  |  | 9,724 |  |  |  | 22,714 |  |  |  | 22,833 |
Total segment operating earnings |  |  | 16,107 |  |  |  | 22,972 |  |  |  | 45,898 |  |  |  | 58,280 |
Deduct: |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate and shared costs, net |  |  | (1,907 | ) |  |  | (2,173 | ) |  |  | (5,732 | ) |  |  | (4,835 | )
Net corporate interest expense |  |  | (2,903 | ) |  |  | (1,648 | ) |  |  | (6,201 | ) |  |  | (4,443 | )
Stock option expense |  |  | (142 | ) |  |  | (296 | ) |  |  | (478 | ) |  |  | (700 | )
Amortization of customer-relationship intangible assets |  |  | (1,998 | ) |  |  | (2,877 | ) |  |  | (5,784 | ) |  |  | (8,426 | )
Contingent earnout adjustments |  |  | (887 | ) |  |  | — |  |  |  | (3,246 | ) |  |  | — |
Goodwill impairment |  |  | (36,808 | ) |  |  | — |  |  |  | (36,808 | ) |  |  | — |
(Loss) income before income taxes |  | $ | (28,538 | ) |  | $ | 15,978 |  |  | $ | (12,351 | ) |  | $ | 39,876 |
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 represents segment earnings before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, contingent earnout adjustments, goodwill impairments, income taxes, and net income or loss attributable to 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 four 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. Certain of the Company’s reportable segments represent the aggregation of certain business units which represent separate operating segments. Revenues before reimbursements by major service line in the International Operations, Broadspire and Platform Solutions segments are shown in the following table. The Company considers all North America Loss Adjusting revenues to be primarily derived from one service line.
|  | Three Months Ended |  |  | Nine Months Ended |
(in thousands) |  | September 30, 2022 |  |  | September 30, 2021 |  |  | September 30, 2022 |  |  | September 30, 2021 |
International Operations |  |  |  |  |  |  |  |  |  |  |  |
International Loss Adjusting |  | $ | 82,157 |  |  | $ | 84,653 |  |  | $ | 252,092 |  |  | $ | 249,955 |
Crawford Legal Services |  |  | 3,909 |  |  |  | 7,235 |  |  |  | 16,956 |  |  |  | 19,669 |
Total Revenues before Reimbursements--International Operations |  | $ | 86,066 |  |  | $ | 91,888 |  |  | $ | 269,048 |  |  | $ | 269,624 |
Broadspire |  |  |  |  |  |  |  |  |  |  |  |
Claims Management |  | $ | 40,275 |  |  | $ | 38,326 |  |  | $ | 120,252 |  |  | $ | 114,028 |
Medical Management |  |  | 38,106 |  |  |  | 37,478 |  |  |  | 114,697 |  |  |  | 111,954 |
Total Revenues before Reimbursements--Broadspire |  | $ | 78,381 |  |  | $ | 75,804 |  |  | $ | 234,949 |  |  | $ | 225,982 |
Platform Solutions |  |  |  |  |  |  |  |  |  |  |  |
Contractor Connection |  | $ | 17,453 |  |  | $ | 18,592 |  |  | $ | 50,112 |  |  | $ | 54,643 |
Networks |  |  | 40,809 |  |  |  | 37,882 |  |  |  | 100,840 |  |  |  | 82,045 |
Subrogation |  |  | 5,393 |  |  |  | — |  |  |  | 15,310 |  |  |  | — |
Total Revenues before Reimbursements--Platform Solutions |  | $ | 63,655 |  |  | $ | 56,474 |  |  | $ | 166,262 |  |  | $ | 136,688 |

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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