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Segment Information
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 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

 

 

Nine Months Ended

 

(in thousands)

 

September 30,
2023

 

 

September 30,
2022

 

 

September 30,
2023

 

 

September 30,
2022

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

North America Loss Adjusting

 

$

79,390

 

 

$

66,822

 

 

$

232,344

 

 

$

197,035

 

International Operations

 

 

98,066

 

 

 

86,066

 

 

 

285,241

 

 

 

269,048

 

Broadspire

 

 

88,299

 

 

 

78,381

 

 

 

253,369

 

 

 

234,949

 

Platform Solutions

 

 

59,839

 

 

 

63,655

 

 

 

188,297

 

 

 

166,262

 

Total segment revenues before reimbursements

 

 

325,594

 

 

 

294,924

 

 

 

959,251

 

 

 

867,294

 

Reimbursements

 

 

12,066

 

 

 

11,493

 

 

 

36,743

 

 

 

30,564

 

Total revenues

 

$

337,660

 

 

$

306,417

 

 

$

995,994

 

 

$

897,858

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Earnings (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

North America Loss Adjusting

 

$

10,468

 

 

$

3,750

 

 

$

22,433

 

 

$

10,533

 

International Operations

 

 

2,197

 

 

 

(3,922

)

 

 

8,974

 

 

 

(7,648

)

Broadspire

 

 

13,532

 

 

 

6,198

 

 

 

29,607

 

 

 

20,299

 

Platform Solutions

 

 

8,523

 

 

 

10,080

 

 

 

26,595

 

 

 

22,714

 

Total segment operating earnings

 

 

34,720

 

 

 

16,106

 

 

 

87,609

 

 

 

45,898

 

 

 

 

 

 

 

 

 

 

 

 

 

(Deduct) Add:

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate and shared costs, net

 

 

(4,781

)

 

 

(2,438

)

 

 

(9,998

)

 

 

(7,378

)

Net corporate interest expense

 

 

(4,556

)

 

 

(2,903

)

 

 

(13,264

)

 

 

(6,201

)

Stock option expense

 

 

(145

)

 

 

(142

)

 

 

(440

)

 

 

(478

)

Amortization of customer-relationship intangible assets

 

 

(1,986

)

 

 

(1,998

)

 

 

(5,864

)

 

 

(5,784

)

Contingent earnout adjustments

 

 

(2,127

)

 

 

(887

)

 

 

(3,100

)

 

 

(3,246

)

Non-service pension (costs) credits

 

 

(2,170

)

 

 

532

 

 

 

(6,436

)

 

 

1,646

 

Goodwill impairment

 

 

—

 

 

 

(36,808

)

 

 

—

 

 

 

(36,808

)

Income (loss) before income taxes

 

$

18,955

 

 

$

(28,538

)

 

$

48,507

 

 

$

(12,351

)

 

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, 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

 

 

Nine Months Ended

 

(in thousands)

 

September 30,
2023

 

 

September 30,
2022

 

 

September 30,
2023

 

 

September 30,
2022

 

International Operations

 

 

 

 

 

 

 

 

 

 

 

 

International Loss Adjusting

 

$

91,414

 

 

$

82,157

 

 

$

266,708

 

 

$

252,092

 

Crawford Legal Services

 

 

6,652

 

 

 

3,909

 

 

 

18,533

 

 

 

16,956

 

Total Revenues before Reimbursements--International Operations

 

$

98,066

 

 

$

86,066

 

 

$

285,241

 

 

$

269,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadspire

 

 

 

 

 

 

 

 

 

 

 

 

Claims Management

 

$

43,989

 

 

$

40,275

 

 

$

125,620

 

 

$

120,252

 

Medical Management

 

 

44,310

 

 

 

38,106

 

 

 

127,749

 

 

 

114,697

 

Total Revenues before Reimbursements--Broadspire

 

$

88,299

 

 

$

78,381

 

 

$

253,369

 

 

$

234,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Solutions

 

 

 

 

 

 

 

 

 

 

 

 

Contractor Connection

 

$

19,013

 

 

$

17,453

 

 

$

58,110

 

 

$

50,112

 

Networks

 

 

34,160

 

 

 

40,809

 

 

 

110,027

 

 

 

100,840

 

Subrogation

 

 

6,666

 

 

 

5,393

 

 

 

20,160

 

 

 

15,310

 

Total Revenues before Reimbursements--Platform Solutions

 

$

59,839

 

 

$

63,655

 

 

$

188,297

 

 

$

166,262