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Segment Information
 6 Months Ended
Jun. 30, 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. International Operations includes 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 and six months ended June 30, 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

 

 

Six Months Ended

 

(in thousands)

 

June 30,
2024

 

 

June 30,
2023

 

 

June 30,
2024

 

 

June 30,
2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

North America Loss Adjusting

 

$

76,030

 

 

$

76,362

 

 

$

153,395

 

 

$

153,959

 

International Operations

 

 

102,283

 

 

 

95,312

 

 

 

200,375

 

 

 

187,175

 

Broadspire

 

 

97,087

 

 

 

87,244

 

 

 

191,385

 

 

 

171,298

 

Platform Solutions

 

 

38,827

 

 

 

65,638

 

 

 

70,726

 

 

 

128,458

 

Total segment revenues before reimbursements

 

 

314,227

 

 

 

324,556

 

 

 

615,881

 

 

 

640,890

 

Reimbursements

 

 

12,626

 

 

 

13,073

 

 

 

24,045

 

 

 

24,677

 

Total revenues

 

$

326,853

 

 

$

337,629

 

 

$

639,926

 

 

$

665,567

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

North America Loss Adjusting

 

$

4,885

 

 

$

3,900

 

 

$

9,364

 

 

$

11,965

 

International Operations

 

 

5,702

 

 

 

3,742

 

 

 

7,392

 

 

 

6,777

 

Broadspire

 

 

15,091

 

 

 

8,148

 

 

 

27,895

 

 

 

16,075

 

Platform Solutions

 

 

1,469

 

 

 

8,106

 

 

 

2,584

 

 

 

18,072

 

Total segment operating earnings

 

 

27,147

 

 

 

23,896

 

 

 

47,235

 

 

 

52,889

 

 

 

 

 

 

 

 

 

 

 

 

 

Deduct:

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate and shared costs, net

 

 

(5,079

)

 

 

(1,098

)

 

 

(13,086

)

 

 

(5,217

)

Net corporate interest expense

 

 

(4,256

)

 

 

(4,309

)

 

 

(7,852

)

 

 

(8,708

)

Stock option expense

 

 

(139

)

 

 

(139

)

 

 

(306

)

 

 

(295

)

Amortization of acquisition-related intangible assets

 

 

(1,856

)

 

 

(1,979

)

 

 

(3,724

)

 

 

(3,878

)

Contingent earnout adjustments

 

 

(430

)

 

 

(725

)

 

 

(581

)

 

 

(973

)

Non-service pension costs

 

 

(2,399

)

 

 

(2,095

)

 

 

(4,872

)

 

 

(4,266

)

Income before income taxes

 

$

12,988

 

 

$

13,551

 

 

$

16,814

 

 

$

29,552

 

 

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

 

 

Six Months Ended

 

(in thousands)

 

June 30,
2024

 

 

June 30,
2023

 

 

June 30,
2024

 

 

June 30,
2023

 

International Operations

 

 

 

 

 

 

 

 

 

 

 

 

International Loss Adjusting

 

$

95,441

 

 

$

89,300

 

 

$

187,806

 

 

$

175,294

 

Crawford Legal Services

 

 

6,842

 

 

 

6,012

 

 

 

12,569

 

 

 

11,881

 

Total Revenues before Reimbursements--International Operations

 

$

102,283

 

 

$

95,312

 

 

$

200,375

 

 

$

187,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadspire

 

 

 

 

 

 

 

 

 

 

 

 

Claims Management

 

$

49,858

 

 

$

44,750

 

 

$

98,256

 

 

$

87,858

 

Medical Management

 

 

47,229

 

 

 

42,494

 

 

 

93,129

 

 

 

83,440

 

Total Revenues before Reimbursements--Broadspire

 

$

97,087

 

 

$

87,244

 

 

$

191,385

 

 

$

171,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Solutions

 

 

 

 

 

 

 

 

 

 

 

 

Contractor Connection

 

$

18,118

 

 

$

19,797

 

 

$

35,063

 

 

$

39,098

 

Networks

 

 

13,373

 

 

 

38,464

 

 

 

21,116

 

 

 

75,867

 

Subrogation

 

 

7,336

 

 

 

7,377

 

 

 

14,547

 

 

 

13,493

 

Total Revenues before Reimbursements--Platform Solutions

 

$

38,827

 

 

$

65,638

 

 

$

70,726

 

 

$

128,458