XML 31 R20.htm IDEA: XBRL DOCUMENT v3.23.1
Segment Information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Information

10. Segment Information

The Company has four reportable segments consisting of North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. The Company's reportable segments are comprised of the following:

•
North America Loss Adjusting, which services the North American property and casualty market. This is comprised of Loss Adjusting operations in the U.S. and Canada, including Global Technical Services and edjuster. The Canadian operations include all operations within that country.
•
International Operations, which services the global property and casualty market outside North America. This is comprised of Loss Adjusting operations in the U.K., Europe, Australia, Asia and Latin America, and includes Crawford Legal Services. The International Operations include all operations within the respective countries.
•
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 months ended March 31, 2023 and 2022 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,
2023

 

 

March 31,
2022

 

Revenues:

 

 

 

 

 

 

North America Loss Adjusting

 

$

77,127

 

 

$

64,438

 

International Operations

 

 

91,863

 

 

 

89,272

 

Broadspire

 

 

81,182

 

 

 

76,454

 

Platform Solutions

 

 

62,820

 

 

 

48,861

 

Total segment revenues before reimbursements

 

 

312,992

 

 

 

279,025

 

Reimbursements

 

 

11,604

 

 

 

8,764

 

Total revenues

 

$

324,596

 

 

$

287,789

 

 

 

 

 

 

 

Segment Operating Earnings (Loss)

 

 

 

 

 

 

North America Loss Adjusting

 

$

8,065

 

 

$

4,135

 

International Operations

 

 

3,035

 

 

 

(3,067

)

Broadspire

 

 

7,927

 

 

 

6,434

 

Platform Solutions

 

 

9,966

 

 

 

8,038

 

Total segment operating earnings

 

 

28,993

 

 

 

15,540

 

 

 

 

 

 

 

Deduct:

 

 

 

 

 

 

Unallocated corporate and shared costs, net

 

 

(4,119

)

 

 

(2,995

)

Net corporate interest expense

 

 

(4,399

)

 

 

(1,519

)

Stock option expense

 

 

(156

)

 

 

(205

)

Amortization of customer-relationship intangible assets

 

 

(1,899

)

 

 

(1,726

)

Contingent earnout adjustments

 

 

(248

)

 

 

(2,056

)

Non-service pension (costs) credits

 

 

(2,171

)

 

 

543

 

Income before income taxes

 

$

16,001

 

 

$

7,582

 

 

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, non-service pension costs and credits, 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

 

(in thousands)

 

March 31,
2023

 

 

March 31,
2022

 

International Operations

 

 

 

 

 

 

International Loss Adjusting

 

$

85,994

 

 

$

83,027

 

Crawford Legal Services

 

 

5,869

 

 

 

6,245

 

Total Revenues before Reimbursements--International Operations

 

$

91,863

 

 

$

89,272

 

 

 

 

 

 

 

 

Broadspire

 

 

 

 

 

 

Claims Management

 

$

40,236

 

 

$

39,551

 

Medical Management

 

 

40,946

 

 

 

36,903

 

Total Revenues before Reimbursements--Broadspire

 

$

81,182

 

 

$

76,454

 

 

 

 

 

 

 

 

Platform Solutions

 

 

 

 

 

 

Contractor Connection

 

$

19,301

 

 

$

15,263

 

Networks

 

 

37,403

 

 

 

27,526

 

Subrogation

 

 

6,116

 

 

 

6,072

 

Total Revenues before Reimbursements--Platform Solutions

 

$

62,820

 

 

$

48,861