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Segment Information
 3 Months Ended
Mar. 31, 2024
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 including third party administration and Contractor Connection.
•
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, including Loss Adjusting, Global Technical Services, Legal Services, third party administration, and where applicable, Contractor Connection services.
•
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.

The Platform Solutions reportable segment represents the aggregation of certain service line operating segments.

Effective January 1, 2024, the Company combined the operating segments within North America Loss Adjusting and International Operations, and accordingly, there are no operating segments within these reportable segments to aggregate.

Financial information for the three months ended March 31, 2024 and 2023 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,
2024

 

 

March 31,
2023

 

Revenues:

 

 

 

 

 

 

North America Loss Adjusting

 

$

77,365

 

 

$

77,597

 

International Operations

 

 

98,092

 

 

 

91,863

 

Broadspire

 

 

94,298

 

 

 

84,054

 

Platform Solutions

 

 

31,899

 

 

 

62,820

 

Total segment revenues before reimbursements

 

 

301,654

 

 

 

316,334

 

Reimbursements

 

 

11,419

 

 

 

11,604

 

Total revenues

 

$

313,073

 

 

$

327,938

 

 

 

 

 

 

 

Segment Operating Earnings:

 

 

 

 

 

 

North America Loss Adjusting

 

$

4,479

 

 

$

8,065

 

International Operations

 

 

1,690

 

 

 

3,035

 

Broadspire

 

 

12,804

 

 

 

7,927

 

Platform Solutions

 

 

1,115

 

 

 

9,966

 

Total segment operating earnings

 

 

20,088

 

 

 

28,993

 

 

 

 

 

 

 

Deduct:

 

 

 

 

 

 

Unallocated corporate and shared costs, net

 

 

(8,007

)

 

 

(4,119

)

Net corporate interest expense

 

 

(3,596

)

 

 

(4,399

)

Stock option expense

 

 

(167

)

 

 

(156

)

Amortization of acquisition-related intangible assets

 

 

(1,868

)

 

 

(1,899

)

Contingent earnout adjustments

 

 

(151

)

 

 

(248

)

Non-service pension costs

 

 

(2,473

)

 

 

(2,171

)

Income before income taxes

 

$

3,826

 

 

$

16,001

 

 

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 acquisition-related intangible assets, contingent earnout adjustments, non-service pension costs, 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,
2024

 

 

March 31,
2023

 

International Operations

 

 

 

 

 

 

International Loss Adjusting

 

$

92,365

 

 

$

85,994

 

Crawford Legal Services

 

 

5,727

 

 

 

5,869

 

Total Revenues before Reimbursements--International Operations

 

$

98,092

 

 

$

91,863

 

 

 

 

 

 

 

 

Broadspire

 

 

 

 

 

 

Claims Management

 

$

48,398

 

 

$

43,108

 

Medical Management

 

 

45,900

 

 

 

40,946

 

Total Revenues before Reimbursements--Broadspire

 

$

94,298

 

 

$

84,054

 

 

 

 

 

 

 

 

Platform Solutions

 

 

 

 

 

 

Contractor Connection

 

$

16,945

 

 

$

19,301

 

Networks

 

 

7,743

 

 

 

37,403

 

Subrogation

 

 

7,211

 

 

 

6,116

 

Total Revenues before Reimbursements--Platform Solutions

 

$

31,899

 

 

$

62,820