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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information

13. Segment and Geographic 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 field operations. 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. Intersegment sales are recorded at cost and are not material.

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.

The Company's four reportable segments represent components of the business for which separate financial information is available, and which is evaluated regularly by the chief operating decision maker ("CODM"). The Company’s CEO, Mr. Rohit Verma, is considered the CODM as he is responsible for strategic decisions including the allocation of resources to each reporting segment and the assessment of their performance. Specifically, he assesses the financial health of each segment, reviews budgeting and resource allocation, directs all strategic planning, reviews investments for new products and technology allocations, evaluates pricing strategies and cash flow management, and oversees risk management for each segment. Mr. Verma regularly meets with the segment managers to discuss financial performance, operational issues and revenue forecasts. Additionally, the segment managers create segment-level budgets and forecasts and receive incentive compensation derived from the operating results of the segments. These financial packages are discussed in the meetings with Mr. Verma.

Operating earnings is the primary financial performance measure used by the Company's senior management and the CODM to evaluate the financial performance of the Company's four reportable segments and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate reportable segment operating performance using the same criteria used by the Company's senior management and CODM. The CODM considers revenues before reimbursements and operating earnings when making decisions about the allocation of operating and capital resources. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represent segment earnings before certain unallocated corporate administrative costs, net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, goodwill impairment, non-service pension costs and credits, income taxes, reserves on certain income tax assets, 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 reportable segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process.

In the normal course of its business, the Company sometimes pays for certain out-of-pocket expenses that are thereafter reimbursed by its clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in the Company's consolidated results of operations. However, in evaluating segment results, Company management excludes these reimbursements and related expenses from segment results, as they offset each other.

Financial information as of and for the years ended December 31, 2024, 2023, and 2022 related to the Company's reportable segments is presented below:

 

 

 

Year Ended December 31, 2024

 

 

 

North America
Loss Adjusting

 

International
Operations

 

Broadspire

 

Platform
Solutions

 

Total

 

 

 

(In thousands)

 

Revenues before reimbursements

 

$

312,158

 

$

418,607

 

$

388,074

 

$

173,671

 

$

1,292,510

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

 

 

 

 

 

     Compensation

 

 

184,732

 

 

208,200

 

 

181,355

 

 

91,457

 

 

665,744

 

     Benefits and payroll taxes

 

 

35,659

 

 

39,082

 

 

36,769

 

 

14,480

 

 

125,990

 

     Non-employee labor

 

 

5,790

 

 

26,411

 

 

17,159

 

 

5,849

 

 

55,209

 

Total Compensation

 

 

226,181

 

 

273,693

 

 

235,283

 

 

111,786

 

 

846,943

 

     Office rent and occupancy

 

 

4,595

 

 

14,340

 

 

9,247

 

 

3,554

 

 

31,736

 

     Other office operating expense (1)

 

 

16,015

 

 

28,289

 

 

16,200

 

 

9,067

 

 

69,571

 

     Depreciation

 

 

3,149

 

 

3,314

 

 

4,767

 

 

6,807

 

 

18,037

 

     Professional fees

 

 

1,869

 

 

11,685

 

 

17,414

 

 

2,166

 

 

33,134

 

     Cost of risk

 

 

1,116

 

 

4,363

 

 

6,451

 

 

1,398

 

 

13,328

 

     Other, net (2)

 

 

2,464

 

 

5,466

 

 

1,170

 

 

3,991

 

 

13,091

 

Total Other Operating Expense

 

 

29,208

 

 

67,457

 

 

55,249

 

 

26,983

 

 

178,897

 

Allocated corporate, shared services, and administrative costs (3)

 

 

38,596

 

 

56,456

 

 

45,113

 

 

23,729

 

 

163,894

 

Total Segment Expenses

 

 

293,985

 

 

397,606

 

 

335,645

 

 

162,498

 

 

1,189,734

 

Segment Operating Earnings

 

$

18,173

 

$

21,001

 

$

52,429

 

$

11,173

 

$

102,776

 

Reconciliation of segment operating earnings:

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

 

 

 

 

 

(28,066

)

Net corporate interest expense

 

 

 

 

 

 

 

 

 

 

(16,862

)

Non-service pension costs

 

 

 

 

 

 

 

 

 

 

(9,764

)

Stock option expense

 

 

 

 

 

 

 

 

 

 

(574

)

Amortization of acquisition-related intangible assets

 

 

 

 

 

 

 

 

 

 

(7,497

)

Contingent earnout adjustments

 

 

 

 

 

 

 

 

 

 

1,099

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

41,112

 

Income taxes

 

 

 

 

 

 

 

 

 

 

(14,583

)

Net Income

 

 

 

 

 

 

 

 

 

 

26,529

 

Net Loss Attributable to Noncontrolling Interests

 

 

 

 

 

 

 

 

 

 

67

 

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

 

 

 

 

$

26,596

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

North America
Loss Adjusting

 

International
Operations

 

Broadspire

 

Platform
Solutions

 

Total

 

 

 

(In thousands)

 

Revenues before reimbursements

 

$

303,629

 

$

382,393

 

$

355,650

 

$

225,459

 

$

1,267,131

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

 

 

 

 

 

     Compensation

 

 

177,254

 

 

200,877

 

 

168,216

 

 

121,779

 

 

668,126

 

     Benefits and payroll taxes

 

 

32,539

 

 

36,383

 

 

32,478

 

 

17,602

 

 

119,002

 

     Non-employee labor

 

 

4,849

 

 

19,300

 

 

16,559

 

 

8,420

 

 

49,128

 

Total Compensation

 

 

214,642

 

 

256,560

 

 

217,253

 

 

147,801

 

 

836,256

 

     Office rent and occupancy

 

 

4,637

 

 

15,501

 

 

9,796

 

 

3,739

 

 

33,673

 

     Other office operating expense (1)

 

 

14,186

 

 

25,951

 

 

14,279

 

 

9,299

 

 

63,715

 

     Depreciation

 

 

2,098

 

 

3,155

 

 

5,664

 

 

5,570

 

 

16,487

 

     Professional fees

 

 

1,493

 

 

10,484

 

 

15,565

 

 

2,137

 

 

29,679

 

     Cost of risk

 

 

1,368

 

 

3,929

 

 

3,600

 

 

1,006

 

 

9,903

 

     Other, net (2)

 

 

3,052

 

 

6,445

 

 

860

 

 

4,322

 

 

14,679

 

Total Other Operating Expense

 

 

26,834

 

 

65,465

 

 

49,764

 

 

26,073

 

 

168,136

 

Allocated corporate, shared services, and administrative costs (3)

 

 

38,968

 

 

49,187

 

 

46,760

 

 

23,044

 

 

157,959

 

Total Segment Expenses

 

 

280,444

 

 

371,212

 

 

313,777

 

 

196,918

 

 

1,162,351

 

Segment Operating Earnings

 

$

23,185

 

$

11,181

 

$

41,873

 

$

28,541

 

$

104,780

 

Reconciliation of segment operating earnings:

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

 

 

 

 

 

(19,419

)

Net corporate interest expense

 

 

 

 

 

 

 

 

 

 

(17,036

)

Non-service pension costs

 

 

 

 

 

 

 

 

 

 

(8,601

)

Stock option expense

 

 

 

 

 

 

 

 

 

 

(552

)

Amortization of acquisition-related intangible assets

 

 

 

 

 

 

 

 

 

 

(7,790

)

Contingent earnout adjustments

 

 

 

 

 

 

 

 

 

 

(4,025

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

47,357

 

Income taxes

 

 

 

 

 

 

 

 

 

 

(17,097

)

Net Income

 

 

 

 

 

 

 

 

 

 

30,260

 

Net Loss Attributable to Noncontrolling Interests

 

 

 

 

 

 

 

 

 

 

349

 

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

 

 

 

 

$

30,609

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

North America
Loss Adjusting

 

International
Operations

 

Broadspire

 

Platform
Solutions

 

Total

 

 

 

(In thousands)

 

Revenues before reimbursements

 

$

274,755

 

$

357,452

 

$

313,564

 

$

243,711

 

$

1,189,482

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

 

 

 

 

 

     Compensation

 

 

163,220

 

 

205,086

 

 

152,581

 

 

134,006

 

 

654,893

 

     Benefits and payroll taxes

 

 

30,478

 

 

36,175

 

 

30,923

 

 

19,485

 

 

117,061

 

     Non-employee labor

 

 

4,747

 

 

13,356

 

 

14,969

 

 

9,958

 

 

43,030

 

Total Compensation

 

 

198,445

 

 

254,617

 

 

198,473

 

 

163,449

 

 

814,984

 

     Office rent and occupancy

 

 

4,739

 

 

15,981

 

 

11,040

 

 

3,831

 

 

35,591

 

     Other office operating expense (1)

 

 

13,599

 

 

25,412

 

 

12,731

 

 

9,145

 

 

60,887

 

     Depreciation

 

 

2,180

 

 

2,437

 

 

5,799

 

 

4,269

 

 

14,685

 

     Professional fees

 

 

1,177

 

 

7,363

 

 

15,574

 

 

2,413

 

 

26,527

 

     Cost of risk

 

 

1,329

 

 

3,684

 

 

2,297

 

 

875

 

 

8,185

 

     Other, net (2)

 

 

1,469

 

 

6,877

 

 

(2,274

)

 

3,438

 

 

9,510

 

Total Other Operating Expense

 

 

24,493

 

 

61,754

 

 

45,167

 

 

23,971

 

 

155,385

 

Allocated corporate, shared services, and administrative costs (3)

 

 

32,709

 

 

54,027

 

 

42,903

 

 

20,545

 

 

150,184

 

Total Segment Expenses

 

 

255,647

 

 

370,398

 

 

286,543

 

 

207,965

 

 

1,120,553

 

Segment Operating Earnings (Loss)

 

$

19,108

 

$

(12,946

)

$

27,021

 

$

35,746

 

$

68,929

 

Reconciliation of segment operating earnings (loss):

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

 

 

 

 

 

(7,050

)

Net corporate interest expense

 

 

 

 

 

 

 

 

 

 

(10,311

)

Non-service pension credit

 

 

 

 

 

 

 

 

 

 

1,591

 

Stock option expense

 

 

 

 

 

 

 

 

 

 

(548

)

Amortization of acquisition-related intangible assets

 

 

 

 

 

 

 

 

 

 

(7,836

)

Contingent earnout adjustments

 

 

 

 

 

 

 

 

 

 

(2,921

)

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

(36,808

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

5,046

 

Income taxes

 

 

 

 

 

 

 

 

 

 

(23,578

)

Net Loss

 

 

 

 

 

 

 

 

 

 

(18,532

)

Net Loss Attributable to Noncontrolling Interests

 

 

 

 

 

 

 

 

 

 

227

 

Net Loss Attributable to Shareholders of Crawford & Company

 

 

 

 

 

 

 

 

 

$

(18,305

)

 

 

(1) Other office and operating expenses include travel and entertainment, automobile expenses, office operating expenses and data processing costs.

(2) Other, net primarily includes bank service charges and advertising expenses.

(3) Allocated corporate, shared services, and administrative costs, comprise of expenses for administrative functions, including direct compensation, payroll taxes, and benefits which are allocated to each segment based on usage.

(4) Unallocated corporate and shared costs and credits represent expenses for the Company's Chief Executive Officer and Board of Directors, certain adjustments to self-insured liabilities, certain unallocated legal and professional fees, and certain adjustments and recoveries to the Company's allowances for estimated credit losses.

 

Segment assets consist of accounts receivable, less allowance for expected credit losses, unbilled revenues at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. Assets for the years ended December 31, 2024, 2023, and 2022 were as follows:

 

 

 

North America Loss Adjusting

 

 

International Operations

 

 

Broadspire

 

 

Platform
Solutions

 

 

Total

 

 

 

(In thousands)

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

106,657

 

 

$

149,441

 

 

$

73,114

 

 

$

94,845

 

 

$

424,057

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

108,471

 

 

 

144,785

 

 

 

70,283

 

 

 

82,944

 

 

 

406,483

 

Revenues by geographic region and major service line for the North America Loss Adjusting, International Operations, Broadspire and Platform Solutions segments are shown in Note 2, "Revenue Recognition."

Capital expenditures for the years ended December 31, 2024, 2023, and 2022 are shown in the following table:

 

Year Ended December 31,

 

2024

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

North America Loss Adjusting

 

$

4,458

 

 

$

3,052

 

 

$

2,276

 

International Operations

 

 

2,225

 

 

 

1,061

 

 

 

1,625

 

Broadspire

 

 

12,643

 

 

 

12,494

 

 

 

10,680

 

Platform Solutions

 

 

5,405

 

 

 

4,815

 

 

 

7,362

 

Corporate

 

 

16,916

 

 

 

15,174

 

 

 

12,656

 

Total capital expenditures

 

$

41,647

 

 

$

36,596

 

 

$

34,599

 

The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2024, 2023, and 2022 was as follows:

 

Year Ended December 31,

 

2024

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Segments' revenues before reimbursements

 

$

1,292,510

 

 

$

1,267,131

 

 

$

1,189,482

 

Reimbursements

 

 

48,460

 

 

 

49,788

 

 

 

41,744

 

Total consolidated revenues

 

$

1,340,970

 

 

$

1,316,919

 

 

$

1,231,226

 

The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2024, 2023, and 2022 were as follows:

 

Year Ended December 31,

 

2024

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Operating earnings of all reportable segments

 

$

102,776

 

 

$

104,780

 

 

$

68,929

 

Unallocated corporate and shared costs and credits

 

 

(28,066

)

 

 

(19,419

)

 

 

(7,050

)

Net corporate interest expense

 

 

(16,862

)

 

 

(17,036

)

 

 

(10,311

)

Stock option expense

 

 

(574

)

 

 

(552

)

 

 

(548

)

Amortization of acquisition-related intangible assets

 

 

(7,497

)

 

 

(7,790

)

 

 

(7,836

)

Goodwill and intangible asset impairment charges

 

 

—

 

 

 

—

 

 

 

(36,808

)

Non-service pension (costs) credits

 

 

(9,764

)

 

 

(8,601

)

 

 

1,591

 

Contingent earnout adjustments

 

 

1,099

 

 

 

(4,025

)

 

 

(2,921

)

Income before income taxes

 

$

41,112

 

 

$

47,357

 

 

$

5,046

 

 

The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at 2024 and 2023 are presented in the following table:

 

December 31,

 

2024

 

 

2023

 

 

 

(In thousands)

 

Assets of reportable segments

 

$

424,057

 

 

$

406,483

 

Corporate assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 

55,412

 

 

 

58,363

 

Income taxes receivable

 

 

5,337

 

 

 

4,842

 

Prepaid expenses and other current assets

 

 

40,334

 

 

 

58,168

 

Net property and equipment

 

 

20,554

 

 

 

22,742

 

Operating lease right-of-use asset, net

 

 

78,808

 

 

 

88,615

 

Capitalized software costs, net

 

 

111,854

 

 

 

96,770

 

Deferred income tax assets

 

 

25,305

 

 

 

26,247

 

Other noncurrent assets

 

 

42,094

 

 

 

36,969

 

Total corporate assets

 

 

379,698

 

 

 

392,716

 

Total assets

 

$

803,755

 

 

$

799,199

 

Revenues and long-lived assets for the U.S., U.K. and Canada are set out below as these countries are material for geographical area disclosure. For the purposes of these geographic area disclosures, long-lived assets consist of the net property and equipment, capitalized software costs, net and operating lease right-of-use, net line items on the Company's Consolidated Balance Sheets and excludes intangible assets and goodwill.

 

 

 

U.S.

 

 

U.K.

 

 

Canada

 

 

All Other
International

 

 

Total
Company

 

 

 

(In thousands)

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

783,024

 

 

$

168,357

 

 

$

90,879

 

 

$

250,250

 

 

$

1,292,510

 

Long-lived assets

 

 

140,701

 

 

 

23,101

 

 

 

16,676

 

 

 

30,737

 

 

 

211,215

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

 

788,364

 

 

 

143,353

 

 

 

96,374

 

 

 

239,040

 

 

 

1,267,131

 

Long-lived assets

 

 

136,087

 

 

 

20,847

 

 

 

18,213

 

 

 

32,981

 

 

 

208,128