Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document Information | ||
Entity Registrant Name | CRAWFORD & CO | |
Entity Central Index Key | 25,475 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Common Class A | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 30,966,733 | |
Common Class B | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 24,690,172 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Revenues before reimbursements | $ 277,286 | $ 293,335 | $ 836,863 | $ 885,510 |
Reimbursements | 18,101 | 16,649 | 47,101 | 55,506 |
Total revenues | 295,387 | 309,984 | 883,964 | 941,016 |
Costs and Expenses: | ||||
Costs of services provided, before reimbursements | 193,453 | 211,106 | 595,248 | 662,537 |
Reimbursements | 18,101 | 16,649 | 47,101 | 55,506 |
Total costs of services | 211,554 | 227,755 | 642,349 | 718,043 |
Selling, general, and administrative expenses | 60,325 | 61,738 | 178,182 | 179,346 |
Corporate interest expense, net of interest income of $278 and $227 for the three months ended September 30, 2016 and 2015, respectively, and $498 and $587 for the nine months ended September 30, 2016 and 2015, respectively | 2,262 | 2,332 | 7,553 | 6,238 |
Restructuring and special charges | 1,488 | 11,078 | 7,431 | 16,383 |
Total Costs and Expenses | 275,629 | 302,903 | 835,515 | 920,010 |
Other Income | 197 | 217 | 719 | 701 |
Income before income taxes | 19,955 | 7,298 | 49,168 | 21,707 |
Provision for Income Taxes | 8,606 | 8,385 | 20,029 | 15,335 |
Net Income (Loss) | 11,349 | (1,087) | 29,139 | 6,372 |
Net (Income) Loss Attributable to Noncontrolling Interests | (404) | 230 | (937) | (189) |
Net Income (Loss) Attributable to Shareholders of Crawford & Company | $ 10,945 | $ (857) | $ 28,202 | $ 6,183 |
Common Class A | ||||
Earnings (Loss) Per Share - Basic: | ||||
Earnings (Loss) Per Share - Basic (usd per share) | $ 0.21 | $ (0.01) | $ 0.54 | $ 0.14 |
Earnings (Loss) Per Share - Diluted: | ||||
Earnings (Loss) Per Share - Diluted (usd per share) | $ 0.20 | $ (0.01) | $ 0.53 | $ 0.14 |
Weighted-Average Shares Used to Compute Basic Earnings (Loss) Per Share: | ||||
Weighted Average Shares Used to Compute Basic Earnings (Loss) Per Share | 30,922 | 30,807 | 30,731 | 30,668 |
Weighted-Average Shares Used to Compute Diluted Earnings (Loss) Per Share: | ||||
Weighted Average Shares Used to Compute Diluted Earnings (Loss) Per Share | 31,665 | 30,807 | 31,200 | 31,156 |
Cash Dividends Per Share: | ||||
Cash Dividends Per Share (usd per share) | $ 0.07 | $ 0.07 | $ 0.21 | $ 0.21 |
Common Class B | ||||
Earnings (Loss) Per Share - Basic: | ||||
Earnings (Loss) Per Share - Basic (usd per share) | 0.19 | (0.03) | 0.48 | 0.08 |
Earnings (Loss) Per Share - Diluted: | ||||
Earnings (Loss) Per Share - Diluted (usd per share) | $ 0.18 | $ (0.03) | $ 0.47 | $ 0.08 |
Weighted-Average Shares Used to Compute Basic Earnings (Loss) Per Share: | ||||
Weighted Average Shares Used to Compute Basic Earnings (Loss) Per Share | 24,690 | 24,690 | 24,690 | 24,690 |
Weighted-Average Shares Used to Compute Diluted Earnings (Loss) Per Share: | ||||
Weighted Average Shares Used to Compute Diluted Earnings (Loss) Per Share | 24,690 | 24,690 | 24,690 | 24,690 |
Cash Dividends Per Share: | ||||
Cash Dividends Per Share (usd per share) | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Interest income | $ 278 | $ 227 | $ 498 | $ 587 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 11,349 | $ (1,087) | $ 29,139 | $ 6,372 |
Other Comprehensive (Loss) Income | ||||
Net foreign currency translation loss, net of tax of $0 and $0, respectively | (4,095) | (5,975) | (648) | (17,233) |
Amortization of actuarial losses for retirement plans included in net periodic pension cost, net of tax of $1,126 and $2,447 for the three months ended September 30, 2016 and 2015, respectively, and $3,339 and $4,518 for the nine months ended September 30, 2016 and 2015, respectively | 2,171 | 7,823 | 6,453 | 12,624 |
Other Comprehensive Income (Loss) | (1,924) | 1,848 | 5,805 | (4,609) |
Comprehensive Income | 9,425 | 761 | 34,944 | 1,763 |
Comprehensive (income) loss attributable to noncontrolling interests | (503) | 20 | 47 | 330 |
Comprehensive Income Attributable to Shareholders of Crawford & Company | $ 8,922 | $ 781 | $ 34,991 | $ 2,093 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
OCI, Tax on foreign currency translation gains (losses) | $ 0 | $ 0 | $ 0 | $ 0 |
OCI, Tax on amortization of actuarial losses on retirement plans included in net periodic pension cost | $ 1,126 | $ 2,447 | $ 3,339 | $ 4,518 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Current Assets: | |||
Cash and cash equivalents | $ 71,663 | $ 76,066 | [1] |
Accounts receivable, less allowance for doubtful accounts of $14,174 and $13,133, respectively | 166,993 | 164,596 | [1] |
Unbilled revenues, at estimated billable amounts | 112,775 | 98,659 | [1] |
Income taxes receivable | 4,255 | 4,255 | [1] |
Prepaid expenses and other current assets | 25,319 | 26,601 | [1] |
Total Current Assets | 381,005 | 370,177 | [1] |
Property and Equipment: | |||
Property and equipment | 131,939 | 140,383 | [1] |
Less accumulated depreciation | (102,649) | (102,331) | [1] |
Net Property and Equipment | 29,290 | 38,052 | [1] |
Other Assets: | |||
Goodwill | 92,895 | 95,616 | [1] |
Intangible assets arising from business acquisitions, net | 91,812 | 104,861 | [1] |
Capitalized software costs, net | 80,990 | 79,996 | [1] |
Deferred income tax assets | 43,995 | 47,371 | [1] |
Other noncurrent assets | 45,844 | 47,333 | [1] |
Total Other Assets | 355,536 | 375,177 | [1] |
TOTAL ASSETS | 765,831 | 783,406 | [1] |
Current Liabilities: | |||
Short-term borrowings | 8,007 | 19,958 | [1] |
Accounts payable | 47,634 | 44,615 | [1] |
Accrued compensation and related costs | 71,180 | 68,843 | [1] |
Self-insured risks | 14,020 | 14,122 | [1] |
Income taxes payable | 12,170 | 4,419 | [1] |
Deferred rent | 12,408 | 13,303 | [1] |
Other accrued liabilities | 39,806 | 44,577 | [1] |
Deferred revenues | 42,180 | 46,552 | [1] |
Current installments of long-term debt and capital leases | 1,327 | 1,959 | [1] |
Total Current Liabilities | 248,732 | 258,348 | [1] |
Noncurrent Liabilities: | |||
Long-term debt and capital leases, less current installments | 205,248 | 225,365 | [1] |
Deferred revenues | 26,231 | 26,592 | [1] |
Self-insured risks | 8,844 | 9,354 | [1] |
Accrued pension liabilities | 110,722 | 121,732 | [1] |
Other noncurrent liabilities | 16,663 | 17,664 | [1] |
Total Noncurrent Liabilities | 367,708 | 400,707 | [1] |
Shareholders' Investment: | |||
Additional paid-in capital | 47,248 | 41,936 | [1] |
Retained earnings | 257,201 | 239,161 | [1] |
Accumulated other comprehensive loss | (215,842) | (222,631) | [1] |
Shareholders' Investment Attributable to Shareholders of Crawford & Company | 144,249 | 113,693 | |
Noncontrolling interests | 5,142 | 10,658 | |
Total Shareholders' Investment | 149,391 | 124,351 | |
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 765,831 | 783,406 | |
Common Class A | |||
Shareholders' Investment: | |||
Class A common stock, $1.00 par value; 50,000 shares authorized; 30,952 and 30,537 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively. Class B common stock, $1.00 par value; 50,000 shares authorized; 24,690 shares issued and outstanding | 30,952 | 30,537 | [1] |
Common Class B | |||
Shareholders' Investment: | |||
Class A common stock, $1.00 par value; 50,000 shares authorized; 30,952 and 30,537 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively. Class B common stock, $1.00 par value; 50,000 shares authorized; 24,690 shares issued and outstanding | $ 24,690 | $ 24,690 | [1] |
[1] | Derived from the audited Consolidated Balance Sheet |
Condensed Consolidated Balance7
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | [1] |
Current Assets: | |||
Allowance for doubtful accounts | $ 14,174 | $ 13,133 | |
Common Class A | |||
Shareholders' Investment: | |||
Par or stated value per share (usd per share) | $ 1 | $ 1 | |
Shares authorized (shares) | 50,000,000 | 50,000,000 | |
Shares issued (shares) | 30,952,000 | 30,537,000 | |
Shares outstanding (shares) | 30,952,000 | 30,537,000 | |
Common Class B | |||
Shareholders' Investment: | |||
Par or stated value per share (usd per share) | $ 1 | $ 1 | |
Shares authorized (shares) | 50,000,000 | 50,000,000 | |
Shares issued (shares) | 24,690,000 | 24,690,000 | |
Shares outstanding (shares) | 24,690,000 | 24,690,000 | |
[1] | Derived from the audited Consolidated Balance Sheet. |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 29,139 | $ 6,372 | |
Reconciliation of net income to net cash provided by operating activities: | |||
Depreciation and amortization | 30,643 | 32,219 | |
Stock-based compensation | 3,246 | 2,369 | |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Accounts receivable, net | (7,628) | 14,190 | |
Unbilled revenues, net | (16,118) | (8,604) | |
Accrued or prepaid income taxes | 9,067 | 9,838 | |
Accounts payable and accrued liabilities | 5,410 | (31,247) | |
Deferred revenues | (4,153) | 1,064 | |
Accrued retirement costs | (7,128) | (14,952) | |
Prepaid expenses and other operating activities | 7,605 | 9,890 | |
Net cash provided by operating activities | 50,083 | 21,139 | |
Cash Flows From Investing Activities: | |||
Acquisitions of property and equipment | (5,782) | (10,296) | |
Capitalization of computer software costs | (13,653) | (16,182) | |
Payments for business acquisitions, net of cash acquired | (3,672) | (68,259) | |
Other investing activities | (95) | 0 | |
Net cash used in investing activities | (23,202) | (94,737) | |
Cash Flows From Financing Activities: | |||
Cash dividends paid | (10,162) | (10,151) | |
Payments related to shares received for withholding taxes under stock-based compensation plans | (15) | (2) | |
Proceeds from shares purchased under employee stock-based compensation plans | 1,208 | 1,196 | |
Decrease in note payable for stock repurchase | (2,206) | 0 | |
Repurchases of common stock | 0 | (137) | |
Increases in short-term and revolving credit facility borrowings | 79,664 | 126,032 | |
Payments on short-term and revolving credit facility borrowings | (95,855) | (31,645) | |
Payments on capital lease obligations | (1,119) | (1,586) | |
Dividends paid to noncontrolling interests | (381) | (186) | |
Other financing activities | (12) | (4) | |
Net cash (used in) provided by financing activities | (28,878) | 83,517 | |
Effects of exchange rate changes on cash and cash equivalents | (2,406) | (4,046) | |
(Decrease) increase in cash and cash equivalents | (4,403) | 5,873 | |
Cash and cash equivalents at beginning of year | 76,066 | [1] | 52,456 |
Cash and cash equivalents at end of period | $ 71,663 | $ 58,329 | |
[1] | Derived from the audited Consolidated Balance Sheet |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Shareholders' Investment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ 141,501 | $ 126,088 | $ 124,351 | $ 181,109 | $ 177,595 | $ 179,353 | $ 124,351 | $ 179,353 |
Net Income (Loss) | 11,349 | 9,161 | 8,629 | (1,087) | 4,178 | 3,281 | 29,139 | 6,372 |
Other comprehensive income (loss) | (1,924) | 8,005 | (276) | 1,848 | 1,411 | (7,868) | 5,805 | (4,609) |
Cash dividends paid | (3,400) | (3,389) | (3,373) | (3,394) | (3,384) | (3,373) | ||
Stock-based compensation | 1,289 | 1,228 | 729 | 1,089 | 876 | 404 | ||
Common stock activity, net | 748 | 431 | 14 | (2,558) | 433 | (128) | ||
Acquisition of noncontrolling interests | 0 | (3,800) | ||||||
Dividends paid to noncontrolling interests | (172) | (23) | (186) | (186) | ||||
Increase in value of noncontrolling interest due to acquisition | 5,926 | |||||||
Ending balance | 149,391 | 141,501 | 126,088 | 176,821 | 181,109 | 177,595 | 149,391 | 176,821 |
Shareholders' Investment Attributable to Shareholders of Crawford & Company | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 136,481 | 121,110 | 113,693 | 169,077 | 165,381 | 172,937 | 113,693 | 172,937 |
Net Income (Loss) | 10,945 | 8,627 | 8,630 | (857) | 4,054 | 2,986 | ||
Other comprehensive income (loss) | (2,023) | 8,474 | 338 | 1,638 | 1,717 | (7,445) | ||
Cash dividends paid | (3,400) | (3,389) | (3,373) | (3,394) | (3,384) | (3,373) | ||
Stock-based compensation | 1,289 | 1,228 | 729 | 1,089 | 876 | 404 | ||
Common stock activity, net | 748 | 431 | 14 | (2,558) | 433 | (128) | ||
Acquisition of noncontrolling interests | 209 | 1,079 | ||||||
Ending balance | 144,249 | 136,481 | 121,110 | 164,995 | 169,077 | 165,381 | 144,249 | 164,995 |
Additional Paid-In Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 45,153 | 43,744 | 41,936 | 40,113 | 38,977 | 38,617 | 41,936 | 38,617 |
Stock-based compensation | 1,289 | 1,228 | 729 | 1,089 | 876 | 404 | ||
Common stock activity, net | 597 | 181 | 611 | 260 | (44) | |||
Acquisition of noncontrolling interests | 209 | 1,079 | ||||||
Ending balance | 47,248 | 45,153 | 43,744 | 41,813 | 40,113 | 38,977 | 47,248 | 41,813 |
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 249,656 | 244,418 | 239,161 | 301,254 | 300,584 | 301,091 | 239,161 | 301,091 |
Net Income (Loss) | 10,945 | 8,627 | 8,630 | (857) | 4,054 | 2,986 | ||
Cash dividends paid | (3,400) | (3,389) | (3,373) | (3,394) | (3,384) | (3,373) | ||
Common stock activity, net | 0 | (2,810) | (120) | |||||
Ending balance | 257,201 | 249,656 | 244,418 | 294,193 | 301,254 | 300,584 | 257,201 | 294,193 |
Accumulated Other Comprehensive Loss | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (213,819) | (222,293) | (222,631) | (227,686) | (229,403) | (221,958) | (222,631) | (221,958) |
Other comprehensive income (loss) | (2,023) | 8,474 | 338 | 1,638 | 1,717 | (7,445) | ||
Ending balance | (215,842) | (213,819) | (222,293) | (226,048) | (227,686) | (229,403) | (215,842) | (226,048) |
Noncontrolling Interests | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 5,020 | 4,978 | 10,658 | 12,032 | 12,214 | 6,416 | 10,658 | 6,416 |
Net Income (Loss) | 404 | 534 | (1) | (230) | 124 | 295 | ||
Other comprehensive income (loss) | 99 | (469) | (614) | 210 | (306) | (423) | ||
Acquisition of noncontrolling interests | (209) | (4,879) | ||||||
Dividends paid to noncontrolling interests | (172) | (23) | (186) | (186) | ||||
Increase in value of noncontrolling interest due to acquisition | 5,926 | |||||||
Ending balance | 5,142 | 5,020 | 4,978 | 11,826 | 12,032 | 12,214 | 5,142 | 11,826 |
Common Class A | Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 30,801 | 30,551 | 30,537 | 30,706 | 30,533 | 30,497 | 30,537 | 30,497 |
Common stock activity, net | 151 | 250 | 14 | (359) | 173 | 36 | ||
Ending balance | 30,952 | 30,801 | 30,551 | 30,347 | 30,706 | 30,533 | 30,952 | 30,347 |
Common Class B | Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 24,690 | 24,690 | 24,690 | 24,690 | 24,690 | 24,690 | 24,690 | 24,690 |
Common stock activity, net | 0 | 0 | 0 | 0 | 0 | |||
Ending balance | $ 24,690 | $ 24,690 | $ 24,690 | $ 24,690 | $ 24,690 | $ 24,690 | $ 24,690 | $ 24,690 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the "SEC"). Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Operating results for the three months and nine months ended, and the Company's financial position as of, September 30, 2016 are not necessarily indicative of the results or financial position that may be expected for the year ending December 31, 2016 or for other future periods. The financial results from the Company's operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines, are reported and consolidated on a two-month delayed basis (fiscal year-end of October 31) as permitted by GAAP in order to provide sufficient time for accumulation of their results. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments (consisting only of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. There have been no material changes to our significant accounting policies and estimates from those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . Certain prior period amounts among the segments have been reclassified to conform to the current presentation. These reclassifications had no effect on the Company's reported consolidated results. Significant intercompany transactions have been eliminated in consolidation. The Condensed Consolidated Balance Sheet information presented herein as of December 31, 2015 has been derived from the audited consolidated financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and considered a variable interest entity ("VIE") of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan . At September 30, 2016 and December 31, 2015 , the liabilities of the deferred compensation plan were $9,464,000 and $9,861,000 , respectively, which represented obligations of the Company rather than of the rabbi trust, and the values of the assets held in the related rabbi trust were $16,143,000 and $15,881,000 , respectively. These liabilities and assets are included in "Other noncurrent liabilities" and "Other noncurrent assets," respectively, on the Company's unaudited Condensed Consolidated Balance Sheets. The Company owns 51% of the capital stock of Lloyd Warwick International Limited ("LWI"). The Company has also agreed to provide financial support to LWI of up to approximately $10,000,000 . Because of this controlling financial interest, and because Crawford has the obligation to absorb certain of LWI's losses through the additional financial support that LWI may require, LWI is considered a VIE of the Company. LWI also does not meet the business scope exception, as Crawford provides more than half of its financial support, and because LWI lacks sufficient equity at risk to permit it to carry on its activities without this additional financial support. Creditors of LWI have no recourse to Crawford's general credit. Accordingly, Crawford is considered the primary beneficiary and consolidates LWI. Total assets and liabilities of LWI as of September 30, 2016 were $9,352,000 and $11,026,000 , respectively. Total assets and liabilities of LWI as of December 31, 2015 were $8,831,000 and $11,841,000 , respectively. Included in LWI's total liabilities is a loan from Crawford of $9,322,000 and $10,214,000 as of September 30, 2016 and December 31, 2015 respectively. |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions On December 1, 2014, the Company acquired 100% of the capital stock of GAB Robins Holdings UK Limited ("GAB Robins"), a U.K. based international loss adjusting and claims management provider, for cash consideration of $71,812,000 . During 2015, the Company paid an additional $2,182,000 related to net debt and net working capital adjustments under the terms of the acquisition agreement, which increased the purchase price to $73,994,000 . The purchase was accounted for under the guidance of Accounting Standards Codification ("ASC") 805-10 as a business combination under the acquisition method. The purchase price included $6,329,000 placed in escrow for up to two years related to certain acquired contingencies per the terms of the acquisition agreement. As of September 30, 2016 , $1,600,000 of the escrowed amount has been released. The acquisition was funded primarily through borrowings in the U.K. under the Company's credit facility. Intangible assets acquired include customer relationships, trademarks, internally developed software and non-compete agreements. The intangibles acquired are made up largely of customer relationships of $38,210,000 being amortized over an estimated life of 14 years, and the remaining intangible assets are being amortized over periods ranging from two to five years. For the three months and nine months ended September 30, 2016 , the Company recognized amortization expense of $841,000 and $ 2,595,000 , respectively, in its unaudited condensed consolidated financial statements related to these intangibles. Goodwill is attributable to the synergies of the work force in place and business resources as a result of the combination of the companies. Goodwill attributable to the acquisition will not be deductible for tax purposes. On December 15, 2015, the Company acquired an additional 36% of the capital stock of GAB Robins Aviation Limited, a U.K.-based international aviation loss adjusting and claims management provider, for $3,672,000 , bringing its total ownership interest to 95% . The Company acquired its initial 59% ownership interest in GAB Robins Aviation Limited through its acquisition of GAB Robins and because of its controlling financial interest, the Company consolidates GAB Robins Aviation Limited. The Company accounted for this subsequent acquisition as an equity transaction in accordance with ASC 810-10. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Classification of Certain Cash Receipts and Cash Payments in the Statement of Cash Flows In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, "Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments." The update addresses diversity in cash flow reporting issues. The guidance specifically addresses issues concerning debt repayment costs, settlement of zero coupon debt instruments, contingent consideration payments made after a business combination, proceeds from insurance claims and corporate owned life insurance beneficial interests in securitization transactions, and distributions from equity method investees. The guidance also clarifies how the predominant principle should be applied when cash receipts and cash payments have more than one class of cash flows. The update is effective for annual periods beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this amendment may have on its cash flows. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." This update replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value with gains and losses recognized through income. The amendment is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the effect this amendment may have on its results of operations, financial condition and cash flows. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." This update was issued as part of a simplification effort for the accounting of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment is effective for annual periods beginning after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this amendment may have on its results of operations, financial condition and cash flows. Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued ASU 2016-07, "Simplifying the Transition to the Equity Method of Accounting." This update eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments in this update are effective for all entities for annual periods beginning after December 15, 2016, and interim periods thereafter. The Company is currently evaluating the effect this amendment may have on its results of operations, financial condition and cash flows. Financial Accounting for Leases In February 2016, the FASB issued ASU 2016-02, "Financial Accounting for Leases." Under this update, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, this ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The update is effective for annual periods beginning after December 15, 2018, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this update may have on its results of operations, financial condition and cash flows. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." Under ASU 2014-09, companies will be required to recognize revenue to depict the transfer of control for goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and modify guidance for multiple-element arrangements. In August 2015, the FASB issued ASU 2015-14, which deferred by one year the effective date of ASU 2014-09. The one year deferral of the effective date of this standard changed the effective date for the Company to January 1, 2018. Early adoption is permitted, but not before the original effective date. In March 2016 the FASB issued ASU 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." The amendments in this update clarify the implementation guidance on principal versus agent consideration. ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," was issued in April 2016 to clarify the identification of performance obligations and to provide additional implementation guidance related to revenue from licensing arrangements. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," to clarify the collectibility criteria in the identification of a valid contract with a customer in step one of the revenue recognition process, among other clarifications. All of the above amendments to the guidance were issued with the same effective dates as ASU 2014-09. The Company is currently evaluating its arrangements with customers and revenue streams against the requirements of this standard and the expected effect this update may have on its results of operations, financial condition and cash flows. The Company currently expects to adopt this new standard using the modified retrospective method that may result in a cumulative effect adjustment as of the date of adoption. Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued ASU 2015-05, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU amended guidance on internal use software to clarify how customers in cloud computing arrangements should determine whether the arrangement includes a software license. The new guidance specifies that these licenses should be accounted for as licenses of intangible assets. The guidance is effective for annual periods, including interim periods within those annual periods beginning after December 15, 2015. The Company adopted this guidance during the quarter ended March 31, 2016, and it did not have a material effect on its results of operations, financial condition and cash flows. Amendments to the Consolidation Analysis In February 2015, FASB issued ASU 2015-02, "Consolidation (topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 focuses on the consolidation evaluation for reporting organizations (public and private companies) that are required to evaluate whether they should consolidate certain legal entities. The standard was effective for fiscal years beginning after December 15, 2015, and interim periods within those years. The Company adopted this standard during the quarter ended March 31, 2016 with no effect to its results of operations, financial condition and cash flows. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments In February 2011, the Company entered into a U.S. dollar and Canadian dollar ("CAD") cross currency basis swap with an initial notional amount of CAD 34,749,000 as an economic hedge to an intercompany note payable to the U.S. parent by a Canadian subsidiary. The cross currency basis swap required the Canadian subsidiary to deliver quarterly payments of CAD 589,000 to the counterparty and entitled the U.S. parent to receive quarterly payments of U.S. $593,000 . The Canadian subsidiary also made interest payments to the counterparty based on 3-month Canada Bankers Acceptances plus a spread, and the U.S. parent received payments based on U.S. 3-month LIBOR. The cross currency basis swap had a scheduled expiration date of September 30, 2025. The Company elected not to designate this swap as a hedge of the intercompany note from the Canadian subsidiary. Accordingly, changes in the fair value of this swap, as well as changes in the value of the intercompany note, were recorded as gains or losses in "Selling, general, and administrative expenses" in the Company's unaudited Condensed Consolidated Statements of Operations over the term of the swap and substantially offset one another prior to the settlement defined below. The changes in the fair value of the cross currency basis swap did not exactly offset changes in the value of the intercompany note, as the fair value of this swap was determined based on forward rates while the value of the intercompany note was determined based on end of period spot rates. The net gains and losses for the swap historically were not significant. During September 2016, the Company entered into a transaction ("settlement") in which the Canadian subsidiary repaid the intercompany note payable to the U.S. parent and the Company terminated the cross currency basis swap. In connection with the settlement in the third quarter of 2016, the Company received proceeds of $4,100,000 in exchange for terminating the cross currency basis swap. For the three months ended September 30, 2016, the Company recognized a net loss of $585,000 due to changes in the fair value of the cross currency basis swap, the value of the intercompany note, and on the settlement. A net loss was recognized on the settlement due to a change in the forward rates used to value the cross currency basis swap which was not substantially offset by the change in the value of the intercompany note based on the spot rate on the day of the settlement. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's consolidated effective income tax rate may change periodically due to changes in enacted tax rates, fluctuations in the mix of income earned from the Company's various domestic and international operations, which are subject to income taxes at different rates, the Company's ability to utilize net operating loss and tax credit carryforwards, and amounts related to uncertain income tax positions. At September 30, 2016 , the Company estimates that its effective income tax rate for 2016 will be approximately 40% after considering known discrete items. The Company's effective tax rate was lower in the 2016 periods compared with the comparable periods of 2015 primarily due to the fluctuations in the mix of income earned, lower current year losses in jurisdictions where the losses are unable to be benefited, permanent extension of the U.S. federal research and development credit and changes in enacted tax rates. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Defined Benefit Pension Plans | Defined Benefit Pension Plans Net periodic benefit cost related to all of the Company's defined benefit pension plans recognized in the Company's unaudited Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2016 and 2015 included the following components: Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Service cost $ 167 $ (208 ) $ 825 $ 1,224 Interest cost 6,726 8,187 23,298 24,459 Expected return on assets (8,024 ) (10,604 ) (28,782 ) (31,428 ) Amortization of actuarial loss 2,911 3,396 9,729 9,660 Net periodic benefit cost $ 1,780 $ 771 $ 5,070 $ 3,915 For the nine -month period ended September 30, 2016 , the Company made contributions of $9,000,000 and $4,564,000 to its U.S. and U.K. defined benefit pension plans, respectively, compared with contributions of $9,000,000 and $4,945,000 , respectively, in the comparable periods of 2015 . The Company is not required to make any additional contributions to its U.S. or U.K. defined benefit pension plans for the remainder of 2016; however, the Company expects to make additional contributions of approximately $1,400,000 to its U.K. plan during the remainder of 2016 . No additional contributions are expected to be made for the U.S. plan during the remainder of 2016. |
Net Income (Loss) Attributable
Net Income (Loss) Attributable to Shareholders of Crawford & Company per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Attributable to Shareholders of Crawford & Company per Common Share | Net Income (Loss) Attributable to Shareholders of Crawford & Company per Common Share The Company computes earnings per share of its non-voting Class A Common Stock ("CRD-A") and voting Class B Common Stock ("CRD-B") using the two-class method, which allocates the undistributed earnings in each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on the CRD-A shares than on the CRD-B shares, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. For all three quarters of 2016 and 2015 the Board of Directors declared a higher dividend on CRD-A than on CRD-B. The computations of basic net income (loss) attributable to shareholders of Crawford & Company per common share were as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B Earnings (loss) per share - basic: Numerator: Allocation of undistributed earnings (loss) $ 4,196 $ 3,350 $ (2,360 ) $ (1,891 ) $ 10,003 $ 8,037 $ (2,198 ) $ (1,770 ) Dividends paid 2,166 1,234 2,160 1,234 6,459 3,703 6,447 3,704 Net income (loss) attributable to common shareholders, basic $ 6,362 $ 4,584 $ (200 ) $ (657 ) $ 16,462 $ 11,740 $ 4,249 $ 1,934 Denominator: Weighted-average common shares outstanding, basic 30,922 24,690 30,807 24,690 30,731 24,690 30,668 24,690 Earnings (loss) per share - basic $ 0.21 $ 0.19 $ (0.01 ) $ (0.03 ) $ 0.54 $ 0.48 $ 0.14 $ 0.08 The computations of diluted net income (loss) attributable to shareholders of Crawford & Company per common share were as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B Earnings (loss) per share - diluted: Numerator: Allocation of undistributed earnings (loss) $ 4,240 $ 3,306 $ (2,360 ) $ (1,891 ) $ 10,071 $ 7,969 $ (2,214 ) $ (1,754 ) Dividends paid 2,166 1,234 2,160 1,234 6,459 3,703 6,447 3,704 Net income (loss) attributable to common shareholders, diluted $ 6,406 $ 4,540 $ (200 ) $ (657 ) $ 16,530 $ 11,672 $ 4,233 $ 1,950 Denominator: Weighted-average common shares outstanding, basic 30,922 24,690 30,807 24,690 30,731 24,690 30,668 24,690 Weighted-average effect of dilutive securities 743 — — — 469 — 488 — Weighted-average common shares outstanding, diluted 31,665 24,690 30,807 24,690 31,200 24,690 31,156 24,690 Earnings (loss) per share - diluted $ 0.20 $ 0.18 $ (0.01 ) $ (0.03 ) $ 0.53 $ 0.47 $ 0.14 $ 0.08 Listed below are the shares excluded from the denominator in the above computation of diluted earnings (loss) per share for CRD-A because their inclusion would have been antidilutive: Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period 50 15 70 32 Performance stock grants excluded because performance conditions have not been met (1) 895 1,819 895 1,969 ________________________________________________ (1) Compensation cost is recognized for these performance stock grants based on expected achievement rates; however, no consideration is given to these performance stock grants when calculating earnings per share until the performance measurements have been achieved. The performance measurements for approximately 529,000 outstanding performance stock grants as of September 30, 2016 are expected to be achieved by December 31, 2016 . The following table details shares issued during the three months and nine months ended September 30, 2016 and September 30, 2015 . These shares are included from their dates of issuance in the weighted-average common shares used to compute basic earnings per share for CRD-A in the table above. There were no shares of CRD-B issued during any of these periods. Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, CRD-A issued under non-employee director stock plan 2 4 121 59 CRD-A issued under the Employee Stock Purchase Plan 119 107 119 107 CRD-A issued under the U.K. ShareSave Scheme 10 5 151 101 CRD-A issued under the International Employee Stock Purchase Plan 7 7 7 7 CRD-A issued under the Executive Stock Bonus Plan 13 20 17 94 The Company's share repurchase authorization, approved in August 2014, provides the Company with the ability to repurchase up to 2,000,000 shares of CRD-A or CRD-B (or both) through July 2017 (the "2014 Repurchase Authorization"). Under the 2014 Repurchase Authorization, repurchases may be made in open market or privately negotiated transactions at such times and for such prices as management deems appropriate, subject to applicable contractual and regulatory restrictions. During the three months and nine months ended September 30, 2016 , the Company did not repurchase any shares. During the three months and nine months ended September 30, 2015 , the Company repurchased 500,000 and 517,700 shares of CRD-A, respectively, at an average cost of $6.62 and $6.66 per share, respectively. The Company did not repurchase any shares of CRD-B during any of these periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Comprehensive income (loss) for the Company consists of the total of net income, foreign currency translation adjustments, and accrued pension and retiree medical liability adjustments. The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's unaudited condensed consolidated financial statements were as follows: Three months ended September 30, 2016 Nine months ended September 30, 2016 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (19,817 ) $ (194,002 ) $ (213,819 ) $ (24,347 ) $ (198,284 ) $ (222,631 ) Other comprehensive (loss) income before reclassifications (4,194 ) — (4,194 ) 336 — 336 Amounts reclassified from accumulated other comprehensive income — 2,171 2,171 — 6,453 6,453 Net current period other comprehensive (loss) income (4,194 ) 2,171 (2,023 ) 336 6,453 6,789 Ending balance $ (24,011 ) $ (191,831 ) $ (215,842 ) $ (24,011 ) $ (191,831 ) $ (215,842 ) Three months ended September 30, 2015 Nine months ended September 30, 2015 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (15,188 ) $ (212,498 ) $ (227,686 ) $ (4,659 ) $ (217,299 ) $ (221,958 ) Other comprehensive loss before reclassifications (6,185 ) — (6,185 ) (16,714 ) — (16,714 ) Amounts reclassified from accumulated other comprehensive income — 7,823 7,823 — 12,624 12,624 Net current period other comprehensive (loss) income (6,185 ) 7,823 1,638 (16,714 ) 12,624 (4,090 ) Ending balance $ (21,373 ) $ (204,675 ) $ (226,048 ) $ (21,373 ) $ (204,675 ) $ (226,048 ) ________________________________________________ (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's unaudited Condensed Consolidated Statements of Operations. See Note 6, "Defined Benefit Pension Plans" for additional details. The other comprehensive loss amounts attributable to noncontrolling interests shown in the Company's unaudited Condensed Consolidated Statements of Shareholders' Investment are foreign currency translation adjustments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis and that are categorized using the fair value hierarchy: Fair Value Measurements at September 30, 2016 Significant Other Significant Quoted Prices in Observable Unobservable Active Markets Inputs Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 10,042 $ 10,042 $ — $ — Liabilities: Contingent earnout liability (2) 1,742 — — 1,742 ________________________________________________ (1) The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included in the Company's unaudited Condensed Consolidated Balance Sheets as "Cash and cash equivalents." (2) The fair value of the contingent earnout liability for the 2014 acquisition of Buckley Scott Holdings Limited ("Buckley Scott") was estimated using an internally-prepared probability-weighted discounted cash flow analysis. The fair value analysis relied upon both Level 2 data (publicly observable data such as market interest rates and capital structures of peer companies) and Level 3 data (internal data such as the Company's operating projections). As such, the liability is a Level 3 fair value measurement. The valuation is sensitive to Level 3 data, with a maximum possible earnout of $1,742,000 at September 30, 2016 , the same as the fair value recorded. The fair value of the contingent earnout liability is included in "Other accrued liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of the contingent earnout agreement. The fair value of the earnout was $1,921,000 , with a maximum possible earnout of $2,027,000 , at December 31, 2015 . The change in the Level 3 fair value at September 30, 2016 was due to foreign currency translation adjustments and imputed interest. Fair Value Disclosures There were no transfers of assets between fair value levels during the three months or nine months ended September 30, 2016 . The categorization of assets and liabilities within the fair value hierarchy and the measurement techniques are reviewed quarterly. Any transfers between levels are deemed to have occurred at the end of the quarter. The fair values of accounts receivable, unbilled revenues, accounts payable and short-term borrowings approximate their respective carrying values due to the short-term maturities of the instruments. The interest rate on the Company's variable rate long-term debt resets at least every 90 days ; therefore, the carrying value approximates fair value. These assets and liabilities are measured within Level 2 of the hierarchy . |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Financial information for the three months and nine months ended September 30, 2016 and 2015 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, September 30, September 30, September 30, Revenues: U.S. Services $ 56,470 $ 62,080 $ 173,813 $ 185,683 International 121,644 128,198 362,401 381,706 Broadspire 76,676 74,225 227,975 217,590 Garden City Group 22,496 28,832 72,674 100,531 Total segment revenues before reimbursements 277,286 293,335 836,863 885,510 Reimbursements 18,101 16,649 47,101 55,506 Total revenues $ 295,387 $ 309,984 $ 883,964 $ 941,016 Segment Operating Earnings: U.S. Services $ 9,379 $ 10,841 $ 28,012 $ 24,837 International 13,236 7,974 31,243 11,484 Broadspire 8,263 7,435 23,497 16,981 Garden City Group 2,351 1,141 6,537 9,813 Total segment operating earnings 33,229 27,391 89,289 63,115 Deduct: Unallocated corporate and shared costs, net (6,947 ) (4,303 ) (17,454 ) (11,648 ) Net corporate interest expense (2,262 ) (2,332 ) (7,553 ) (6,238 ) Stock option expense (176 ) (30 ) (403 ) (357 ) Amortization of customer-relationship intangible assets (2,401 ) (2,350 ) (7,280 ) (6,782 ) Restructuring and special charges (1,488 ) (11,078 ) (7,431 ) (16,383 ) Income before income taxes $ 19,955 $ 7,298 $ 49,168 $ 21,707 Intersegment transactions are not material for any period presented. 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 four operating segments and make resource allocation decisions. The Company believes this measure is useful to others 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 represent segment earnings before certain unallocated corporate and shared costs, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, restructuring and special charges, 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. Revenues before reimbursements by major service line in the U.S. Services segment and the Broadspire segment are shown in the following table. It is not practicable to provide revenues by service line for the International segment. The Company considers all Garden City Group revenues to be derived from one service line. Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, U.S. Services U.S. Claims Field Operations $ 21,598 $ 21,468 $ 62,207 $ 65,164 U.S. Technical Services 7,126 7,661 21,056 21,747 U.S. Catastrophe Services 9,198 17,305 35,153 54,274 Subtotal U.S. Claims Services 37,922 46,434 118,416 141,185 U.S. Contractor Connection 18,548 15,646 55,397 44,498 Total Revenues before Reimbursements--U.S. Services $ 56,470 $ 62,080 $ 173,813 $ 185,683 Broadspire Workers' Compensation, Disability and Liability Claims Management $ 32,028 $ 30,583 $ 95,910 $ 90,120 Medical Management Services 41,149 39,983 121,433 116,301 Risk Management Information Services 3,499 3,659 10,632 11,169 Total Revenues before Reimbursements--Broadspire $ 76,676 $ 74,225 $ 227,975 $ 217,590 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As part of the Company's credit facility, the Company maintains a letter of credit facility to satisfy certain of its own contractual requirements. At September 30, 2016 , the aggregate committed amount of letters of credit outstanding under the credit facility was $13,809,000 . In the normal course of its business, the Company is sometimes named as a defendant or responsible party in suits or other actions by insureds or claimants contesting decisions made by the Company or its clients with respect to the settlement of claims. Additionally, certain clients of the Company have in the past brought, and may, in the future bring, claims for indemnification on the basis of alleged actions by the Company, its agents, or its employees in rendering services to clients. The majority of these claims are of the type covered by insurance maintained by the Company. However, the Company is responsible for the deductibles and self-insured retentions under various insurance coverages. In the opinion of Company management, adequate provisions have been made for such known and foreseeable risks. The Company is subject to numerous federal, state, and foreign labor, employment, worker health and safety, antitrust and competition, environmental and consumer protection, import/export, anti-corruption, and other laws, and from time to time the Company faces claims and investigations by employees, former employees, and governmental entities under such laws. Such claims, investigations, and any litigation involving the Company could divert management's time and attention from the Company's business operations and could potentially result in substantial costs of defense, settlement or other disposition, which could have a material adverse effect on the Company's results of operations, financial position, and cash flows. In the opinion of Company management, adequate provisions have been made for any items that are probable and reasonably estimable. The agreement relating to the 2014 acquisition of Buckley Scott contains an earnout provision based on Buckley Scott achieving certain financial results during the two -year period following the completion of the acquisition, with a current estimated fair value of $1,742,000 , the same as the maximum potential earnout. The Company has voluntarily self-reported to the Securities and Exchange Commission (the "SEC") and the Department of Justice (the "DOJ") certain potential violations of the Foreign Corrupt Practices Act discovered by the Company during the course of its regular internal audit process. Upon discovery, the Company, with the oversight of the Audit Committee and the Board of Directors, proactively initiated an investigation into this matter with the assistance of external legal counsel and external forensic accountants. The Company has been cooperating fully, and expects to continue to cooperate fully, with the SEC and the DOJ in this matter. The Company cannot currently predict when or what, if any, action may be taken by the SEC or the DOJ, or other governmental authorities, or the effect any such actions may have on the Company's results of operations, cash flows or financial position. |
Restructuring and Special Charg
Restructuring and Special Charges | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Special Charges | Restructuring and Special Charges Total restructuring and special charges for the three months ended September 30, 2016 and 2015 were $1,488,000 and $11,078,000 , respectively. Total restructuring and special charges for the nine months ended September 30, 2016 and 2015 were $7,431,000 and $16,383,000 , respectively. Restructuring Charges Restructuring charges for the three months and nine months ended September 30, 2016 of $1,361,000 and $6,531,000 were incurred related to the establishment and phase in of the Company's Global Business Services Center in Manila, Philippines and Global Technology Services Center in Pune, India (the "Centers"). Other restructuring charges consist of asset impairments and lease termination costs, integration costs related to the GAB Robins acquisition and other restructuring activities. The following table shows the restructuring charges incurred by type of activity: Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Implementation and phase-in of the Centers $ 775 $ 1,604 $ 3,177 $ 3,863 Asset impairments and lease termination costs — — 1,165 — Integration costs related to the GAB Robins acquisition and International segment restructuring 586 4,177 2,189 5,224 Restructuring activities for U.S. Services segment — 319 — 2,318 Total restructuring charges $ 1,361 $ 6,100 $ 6,531 $ 11,405 Costs associated with the Centers were primarily for professional fees and severance costs. Integration costs related to the GAB Robins acquisition and International segment restructuring were predominantly made up of severance and professional fees and other costs. As of September 30, 2016 , the following liabilities remained on the Company's unaudited Condensed Consolidated Balance Sheets related to restructuring charges recorded in 2012, 2015, and 2016. The rollforward of these costs to September 30, 2016 were as follows: Three months ended September 30, 2016 (in thousands) Deferred rent Accrued compensation and related costs Accounts payable Other accrued liabilities Total Beginning balance, June 30, 2016 $ 3,381 $ 3,566 $ 805 $ 3,149 $ 10,901 Additions — 382 1,380 (401 ) 1,361 Adjustments to accruals (391 ) — — — (391 ) Cash payments — (1,769 ) (2,025 ) (1,557 ) (5,351 ) Ending balance, September 30, 2016 $ 2,990 $ 2,179 $ 160 $ 1,191 $ 6,520 Nine months ended September 30, 2016 (in thousands) Deferred rent Accrued compensation and related costs Accounts payable Other accrued liabilities Total Beginning balance, January 1, 2016 $ 3,571 $ 7,006 $ 1,066 $ 3,257 $ 14,900 Additions 1,271 2,751 3,018 (509 ) 6,531 Adjustments to accruals (933 ) — — — (933 ) Cash payments (919 ) (7,578 ) (3,924 ) (1,557 ) (13,978 ) Ending balance, September 30, 2016 $ 2,990 $ 2,179 $ 160 $ 1,191 $ 6,520 Special Charges The Company recorded special charges for the three months and nine months ended September 30, 2016 of $127,000 and $900,000 . The special charges consisted of legal and professional fees related to the ongoing investigation as disclosed in Note 11 "Commitments and Contingencies" and other professional fees. At September 30, 2016, substantially all special charges had been paid. The Company recorded special charges for both the three months and nine months ended September 30, 2015 of $4,978,000 . The special charges were comprised of two components: (1) $1,627,000 in expenses related to the separation of the Company's former president and chief executive officer, and (2) legal and professional fees of $3,351,000 . |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event Effective October 10, 2016, the Company entered into a 13 year operating lease for approximately 109,000 square feet of office space in Atlanta, Georgia, as a replacement and consolidation for its Atlanta Support Center beginning late 2017. The Company has future total lease payments associated with the lease of approximately $31,000,000 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation, variable interest entity, policy | The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and considered a variable interest entity ("VIE") of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan . |
New accounting pronouncements, policy | Classification of Certain Cash Receipts and Cash Payments in the Statement of Cash Flows In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, "Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments." The update addresses diversity in cash flow reporting issues. The guidance specifically addresses issues concerning debt repayment costs, settlement of zero coupon debt instruments, contingent consideration payments made after a business combination, proceeds from insurance claims and corporate owned life insurance beneficial interests in securitization transactions, and distributions from equity method investees. The guidance also clarifies how the predominant principle should be applied when cash receipts and cash payments have more than one class of cash flows. The update is effective for annual periods beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this amendment may have on its cash flows. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." This update replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value with gains and losses recognized through income. The amendment is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the effect this amendment may have on its results of operations, financial condition and cash flows. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." This update was issued as part of a simplification effort for the accounting of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment is effective for annual periods beginning after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this amendment may have on its results of operations, financial condition and cash flows. Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued ASU 2016-07, "Simplifying the Transition to the Equity Method of Accounting." This update eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments in this update are effective for all entities for annual periods beginning after December 15, 2016, and interim periods thereafter. The Company is currently evaluating the effect this amendment may have on its results of operations, financial condition and cash flows. Financial Accounting for Leases In February 2016, the FASB issued ASU 2016-02, "Financial Accounting for Leases." Under this update, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, this ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The update is effective for annual periods beginning after December 15, 2018, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this update may have on its results of operations, financial condition and cash flows. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." Under ASU 2014-09, companies will be required to recognize revenue to depict the transfer of control for goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and modify guidance for multiple-element arrangements. In August 2015, the FASB issued ASU 2015-14, which deferred by one year the effective date of ASU 2014-09. The one year deferral of the effective date of this standard changed the effective date for the Company to January 1, 2018. Early adoption is permitted, but not before the original effective date. In March 2016 the FASB issued ASU 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." The amendments in this update clarify the implementation guidance on principal versus agent consideration. ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," was issued in April 2016 to clarify the identification of performance obligations and to provide additional implementation guidance related to revenue from licensing arrangements. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," to clarify the collectibility criteria in the identification of a valid contract with a customer in step one of the revenue recognition process, among other clarifications. All of the above amendments to the guidance were issued with the same effective dates as ASU 2014-09. The Company is currently evaluating its arrangements with customers and revenue streams against the requirements of this standard and the expected effect this update may have on its results of operations, financial condition and cash flows. The Company currently expects to adopt this new standard using the modified retrospective method that may result in a cumulative effect adjustment as of the date of adoption. Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued ASU 2015-05, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU amended guidance on internal use software to clarify how customers in cloud computing arrangements should determine whether the arrangement includes a software license. The new guidance specifies that these licenses should be accounted for as licenses of intangible assets. The guidance is effective for annual periods, including interim periods within those annual periods beginning after December 15, 2015. The Company adopted this guidance during the quarter ended March 31, 2016, and it did not have a material effect on its results of operations, financial condition and cash flows. Amendments to the Consolidation Analysis In February 2015, FASB issued ASU 2015-02, "Consolidation (topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 focuses on the consolidation evaluation for reporting organizations (public and private companies) that are required to evaluate whether they should consolidate certain legal entities. The standard was effective for fiscal years beginning after December 15, 2015, and interim periods within those years. The Company adopted this standard during the quarter ended March 31, 2016 with no effect to its results of operations, financial condition and cash flows. |
Earnings per share, policy | The Company computes earnings per share of its non-voting Class A Common Stock ("CRD-A") and voting Class B Common Stock ("CRD-B") using the two-class method, which allocates the undistributed earnings in each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on the CRD-A shares than on the CRD-B shares, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. For all three quarters of 2016 and 2015 the Board of Directors declared a higher dividend on CRD-A than on CRD-B. |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of defined benefit plans disclosures | Net periodic benefit cost related to all of the Company's defined benefit pension plans recognized in the Company's unaudited Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2016 and 2015 included the following components: Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Service cost $ 167 $ (208 ) $ 825 $ 1,224 Interest cost 6,726 8,187 23,298 24,459 Expected return on assets (8,024 ) (10,604 ) (28,782 ) (31,428 ) Amortization of actuarial loss 2,911 3,396 9,729 9,660 Net periodic benefit cost $ 1,780 $ 771 $ 5,070 $ 3,915 |
Net Income (Loss) Attributabl25
Net Income (Loss) Attributable to Shareholders of Crawford & Company per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic | The computations of basic net income (loss) attributable to shareholders of Crawford & Company per common share were as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B Earnings (loss) per share - basic: Numerator: Allocation of undistributed earnings (loss) $ 4,196 $ 3,350 $ (2,360 ) $ (1,891 ) $ 10,003 $ 8,037 $ (2,198 ) $ (1,770 ) Dividends paid 2,166 1,234 2,160 1,234 6,459 3,703 6,447 3,704 Net income (loss) attributable to common shareholders, basic $ 6,362 $ 4,584 $ (200 ) $ (657 ) $ 16,462 $ 11,740 $ 4,249 $ 1,934 Denominator: Weighted-average common shares outstanding, basic 30,922 24,690 30,807 24,690 30,731 24,690 30,668 24,690 Earnings (loss) per share - basic $ 0.21 $ 0.19 $ (0.01 ) $ (0.03 ) $ 0.54 $ 0.48 $ 0.14 $ 0.08 |
Schedule of earnings per share, diluted | The computations of diluted net income (loss) attributable to shareholders of Crawford & Company per common share were as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B Earnings (loss) per share - diluted: Numerator: Allocation of undistributed earnings (loss) $ 4,240 $ 3,306 $ (2,360 ) $ (1,891 ) $ 10,071 $ 7,969 $ (2,214 ) $ (1,754 ) Dividends paid 2,166 1,234 2,160 1,234 6,459 3,703 6,447 3,704 Net income (loss) attributable to common shareholders, diluted $ 6,406 $ 4,540 $ (200 ) $ (657 ) $ 16,530 $ 11,672 $ 4,233 $ 1,950 Denominator: Weighted-average common shares outstanding, basic 30,922 24,690 30,807 24,690 30,731 24,690 30,668 24,690 Weighted-average effect of dilutive securities 743 — — — 469 — 488 — Weighted-average common shares outstanding, diluted 31,665 24,690 30,807 24,690 31,200 24,690 31,156 24,690 Earnings (loss) per share - diluted $ 0.20 $ 0.18 $ (0.01 ) $ (0.03 ) $ 0.53 $ 0.47 $ 0.14 $ 0.08 |
Schedule of antidilutive securities excluded from computation of earnings per share | Listed below are the shares excluded from the denominator in the above computation of diluted earnings (loss) per share for CRD-A because their inclusion would have been antidilutive: Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period 50 15 70 32 Performance stock grants excluded because performance conditions have not been met (1) 895 1,819 895 1,969 ________________________________________________ (1) Compensation cost is recognized for these performance stock grants based on expected achievement rates; however, no consideration is given to these performance stock grants when calculating earnings per share until the performance measurements have been achieved. The performance measurements for approximately 529,000 outstanding performance stock grants as of September 30, 2016 are expected to be achieved by December 31, 2016 . |
Schedule of shares issued under stock plans used in weighted average calc | The following table details shares issued during the three months and nine months ended September 30, 2016 and September 30, 2015 . These shares are included from their dates of issuance in the weighted-average common shares used to compute basic earnings per share for CRD-A in the table above. There were no shares of CRD-B issued during any of these periods. Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, CRD-A issued under non-employee director stock plan 2 4 121 59 CRD-A issued under the Employee Stock Purchase Plan 119 107 119 107 CRD-A issued under the U.K. ShareSave Scheme 10 5 151 101 CRD-A issued under the International Employee Stock Purchase Plan 7 7 7 7 CRD-A issued under the Executive Stock Bonus Plan 13 20 17 94 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's unaudited condensed consolidated financial statements were as follows: Three months ended September 30, 2016 Nine months ended September 30, 2016 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (19,817 ) $ (194,002 ) $ (213,819 ) $ (24,347 ) $ (198,284 ) $ (222,631 ) Other comprehensive (loss) income before reclassifications (4,194 ) — (4,194 ) 336 — 336 Amounts reclassified from accumulated other comprehensive income — 2,171 2,171 — 6,453 6,453 Net current period other comprehensive (loss) income (4,194 ) 2,171 (2,023 ) 336 6,453 6,789 Ending balance $ (24,011 ) $ (191,831 ) $ (215,842 ) $ (24,011 ) $ (191,831 ) $ (215,842 ) Three months ended September 30, 2015 Nine months ended September 30, 2015 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (15,188 ) $ (212,498 ) $ (227,686 ) $ (4,659 ) $ (217,299 ) $ (221,958 ) Other comprehensive loss before reclassifications (6,185 ) — (6,185 ) (16,714 ) — (16,714 ) Amounts reclassified from accumulated other comprehensive income — 7,823 7,823 — 12,624 12,624 Net current period other comprehensive (loss) income (6,185 ) 7,823 1,638 (16,714 ) 12,624 (4,090 ) Ending balance $ (21,373 ) $ (204,675 ) $ (226,048 ) $ (21,373 ) $ (204,675 ) $ (226,048 ) ________________________________________________ (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's unaudited Condensed Consolidated Statements of Operations. See Note 6, "Defined Benefit Pension Plans" for additional details. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis and that are categorized using the fair value hierarchy: Fair Value Measurements at September 30, 2016 Significant Other Significant Quoted Prices in Observable Unobservable Active Markets Inputs Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 10,042 $ 10,042 $ — $ — Liabilities: Contingent earnout liability (2) 1,742 — — 1,742 ________________________________________________ (1) The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included in the Company's unaudited Condensed Consolidated Balance Sheets as "Cash and cash equivalents." (2) The fair value of the contingent earnout liability for the 2014 acquisition of Buckley Scott Holdings Limited ("Buckley Scott") was estimated using an internally-prepared probability-weighted discounted cash flow analysis. The fair value analysis relied upon both Level 2 data (publicly observable data such as market interest rates and capital structures of peer companies) and Level 3 data (internal data such as the Company's operating projections). As such, the liability is a Level 3 fair value measurement. The valuation is sensitive to Level 3 data, with a maximum possible earnout of $1,742,000 at September 30, 2016 , the same as the fair value recorded. The fair value of the contingent earnout liability is included in "Other accrued liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of the contingent earnout agreement. The fair value of the earnout was $1,921,000 , with a maximum possible earnout of $2,027,000 , at December 31, 2015 . The change in the Level 3 fair value at September 30, 2016 was due to foreign currency translation adjustments and imputed interest. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of operating profit from segments to consolidated | Financial information for the three months and nine months ended September 30, 2016 and 2015 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, September 30, September 30, September 30, Revenues: U.S. Services $ 56,470 $ 62,080 $ 173,813 $ 185,683 International 121,644 128,198 362,401 381,706 Broadspire 76,676 74,225 227,975 217,590 Garden City Group 22,496 28,832 72,674 100,531 Total segment revenues before reimbursements 277,286 293,335 836,863 885,510 Reimbursements 18,101 16,649 47,101 55,506 Total revenues $ 295,387 $ 309,984 $ 883,964 $ 941,016 Segment Operating Earnings: U.S. Services $ 9,379 $ 10,841 $ 28,012 $ 24,837 International 13,236 7,974 31,243 11,484 Broadspire 8,263 7,435 23,497 16,981 Garden City Group 2,351 1,141 6,537 9,813 Total segment operating earnings 33,229 27,391 89,289 63,115 Deduct: Unallocated corporate and shared costs, net (6,947 ) (4,303 ) (17,454 ) (11,648 ) Net corporate interest expense (2,262 ) (2,332 ) (7,553 ) (6,238 ) Stock option expense (176 ) (30 ) (403 ) (357 ) Amortization of customer-relationship intangible assets (2,401 ) (2,350 ) (7,280 ) (6,782 ) Restructuring and special charges (1,488 ) (11,078 ) (7,431 ) (16,383 ) Income before income taxes $ 19,955 $ 7,298 $ 49,168 $ 21,707 |
Schedule of revenues by major service line | Revenues before reimbursements by major service line in the U.S. Services segment and the Broadspire segment are shown in the following table. It is not practicable to provide revenues by service line for the International segment. The Company considers all Garden City Group revenues to be derived from one service line. Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, U.S. Services U.S. Claims Field Operations $ 21,598 $ 21,468 $ 62,207 $ 65,164 U.S. Technical Services 7,126 7,661 21,056 21,747 U.S. Catastrophe Services 9,198 17,305 35,153 54,274 Subtotal U.S. Claims Services 37,922 46,434 118,416 141,185 U.S. Contractor Connection 18,548 15,646 55,397 44,498 Total Revenues before Reimbursements--U.S. Services $ 56,470 $ 62,080 $ 173,813 $ 185,683 Broadspire Workers' Compensation, Disability and Liability Claims Management $ 32,028 $ 30,583 $ 95,910 $ 90,120 Medical Management Services 41,149 39,983 121,433 116,301 Risk Management Information Services 3,499 3,659 10,632 11,169 Total Revenues before Reimbursements--Broadspire $ 76,676 $ 74,225 $ 227,975 $ 217,590 |
Restructuring and Special Cha29
Restructuring and Special Charges (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | As of September 30, 2016 , the following liabilities remained on the Company's unaudited Condensed Consolidated Balance Sheets related to restructuring charges recorded in 2012, 2015, and 2016. The rollforward of these costs to September 30, 2016 were as follows: Three months ended September 30, 2016 (in thousands) Deferred rent Accrued compensation and related costs Accounts payable Other accrued liabilities Total Beginning balance, June 30, 2016 $ 3,381 $ 3,566 $ 805 $ 3,149 $ 10,901 Additions — 382 1,380 (401 ) 1,361 Adjustments to accruals (391 ) — — — (391 ) Cash payments — (1,769 ) (2,025 ) (1,557 ) (5,351 ) Ending balance, September 30, 2016 $ 2,990 $ 2,179 $ 160 $ 1,191 $ 6,520 Nine months ended September 30, 2016 (in thousands) Deferred rent Accrued compensation and related costs Accounts payable Other accrued liabilities Total Beginning balance, January 1, 2016 $ 3,571 $ 7,006 $ 1,066 $ 3,257 $ 14,900 Additions 1,271 2,751 3,018 (509 ) 6,531 Adjustments to accruals (933 ) — — — (933 ) Cash payments (919 ) (7,578 ) (3,924 ) (1,557 ) (13,978 ) Ending balance, September 30, 2016 $ 2,990 $ 2,179 $ 160 $ 1,191 $ 6,520 The following table shows the restructuring charges incurred by type of activity: Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Implementation and phase-in of the Centers $ 775 $ 1,604 $ 3,177 $ 3,863 Asset impairments and lease termination costs — — 1,165 — Integration costs related to the GAB Robins acquisition and International segment restructuring 586 4,177 2,189 5,224 Restructuring activities for U.S. Services segment — 319 — 2,318 Total restructuring charges $ 1,361 $ 6,100 $ 6,531 $ 11,405 |
Basis of Presentation (Details)
Basis of Presentation (Details) - Primary beneficiary - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity | ||
Liabilities of the deferred compensation plan | $ 9,464 | $ 9,861 |
Assets held in the related rabbi trust | $ 16,143 | $ 15,881 |
Basis of Presentation (Acquisit
Basis of Presentation (Acquisition) (Details) - Lloyd Warwick International - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Business Acquisitions | ||
Ownership percentage | 51.00% | |
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | $ 10,000 | |
Asset carrying amount | 9,352 | $ 8,831 |
Liability carrying amount | 11,026 | 11,841 |
Loan from parent | ||
Business Acquisitions | ||
Liability carrying amount | $ 9,322 | $ 10,214 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Thousands | Dec. 15, 2015 | Dec. 01, 2014 | Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
GAB Robins | |||||
Business Acquisitions | |||||
Business acquisition, percentage of voting interests acquired | 100.00% | ||||
Payments to acquire businesses, preliminary gross | $ 71,812 | ||||
Business combination, provisional information, initial accounting incomplete, adjustment, consideration transferred | $ 2,182 | ||||
Payments to acquire businesses, gross | $ 73,994 | ||||
Business combination, indemnification assets, amount as of acquisition date | $ 6,329 | ||||
Business combination, indemnification period | 2 years | ||||
Business combination, preacquisition contingency, amounts released from escrow | $ 1,600 | $ 1,600 | |||
Amortization of intangible assets | 841 | 2,595 | |||
GAB Robins | Customer relationships | |||||
Business Acquisitions | |||||
Business combination, intangible assets | $ 38,210 | $ 38,210 | |||
Finite-lived intangible asset, useful life | 14 years | ||||
GAB Robins | Intangible assets not including customer relationships | Minimum | |||||
Business Acquisitions | |||||
Finite-lived intangible asset, useful life | 2 years | ||||
GAB Robins | Intangible assets not including customer relationships | Maximum | |||||
Business Acquisitions | |||||
Finite-lived intangible asset, useful life | 5 years | ||||
GAB Robins Aviation Limited | |||||
Business Acquisitions | |||||
Business acquisition, percentage of voting interests acquired | 36.00% | 59.00% | 95.00% | 95.00% | |
Payments to acquire businesses, gross | $ 3,672 |
Derivative Instruments (Details
Derivative Instruments (Details) - Not designated as hedging instrument - Currency swap | Sep. 30, 2016USD ($) | Feb. 28, 2011CAD | Feb. 28, 2011USD ($) |
Derivative | |||
Notional amount of derivative | CAD | CAD 34,749,000 | ||
Periodic payment on derivative instrument | CAD | CAD 589,000 | ||
Periodic receivable on derivative instrument | $ 593,000 | ||
Derivative instruments | $ 4,100,000 | ||
Gain (loss) on derivative instruments, net, pretax | $ 585,000 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Scenario, forecast | |
Effective income tax rate reconciliation, percent | 40.00% |
Defined Benefit Pension Plans35
Defined Benefit Pension Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||
Service cost | $ 167 | $ (208) | $ 825 | $ 1,224 |
Interest cost | 6,726 | 8,187 | 23,298 | 24,459 |
Expected return on assets | (8,024) | (10,604) | (28,782) | (31,428) |
Amortization of actuarial loss | 2,911 | 3,396 | 9,729 | 9,660 |
Net periodic benefit cost | $ 1,780 | $ 771 | $ 5,070 | $ 3,915 |
Defined Benefit Pension Plans36
Defined Benefit Pension Plans (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. pension plans | ||
Defined Benefit Plan Disclosure | ||
Contributions by employer | $ 9,000,000 | $ 9,000,000 |
Estimated future employer contributions | 0 | |
U.K. pension plans | ||
Defined Benefit Plan Disclosure | ||
Contributions by employer | 4,564,000 | $ 4,945,000 |
Estimated future employer contributions | $ 1,400,000 |
Net Income (Loss) Attributabl37
Net Income (Loss) Attributable to Shareholders of Crawford & Company per Common Share (Schedule of Earnings Per Share, Basic) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Common Class A | ||||
Numerator: | ||||
Allocation of undistributed earnings (loss) | $ 4,196 | $ (2,360) | $ 10,003 | $ (2,198) |
Dividends paid | 2,166 | 2,160 | 6,459 | 6,447 |
Net income (loss) attributable to common shareholders, basic | $ 6,362 | $ (200) | $ 16,462 | $ 4,249 |
Denominator: | ||||
Weighted-average common shares outstanding, basic | 30,922 | 30,807 | 30,731 | 30,668 |
Earnings (loss) per share - basic (usd per share) | $ 0.21 | $ (0.01) | $ 0.54 | $ 0.14 |
Common Class B | ||||
Numerator: | ||||
Allocation of undistributed earnings (loss) | $ 3,350 | $ (1,891) | $ 8,037 | $ (1,770) |
Dividends paid | 1,234 | 1,234 | 3,703 | 3,704 |
Net income (loss) attributable to common shareholders, basic | $ 4,584 | $ (657) | $ 11,740 | $ 1,934 |
Denominator: | ||||
Weighted-average common shares outstanding, basic | 24,690 | 24,690 | 24,690 | 24,690 |
Earnings (loss) per share - basic (usd per share) | $ 0.19 | $ (0.03) | $ 0.48 | $ 0.08 |
Net Income (Loss) Attributabl38
Net Income (Loss) Attributable to Shareholders of Crawford & Company per Common Share (Schedule of Earnings Per Share, Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Common Class A | ||||
Numerator: | ||||
Allocation of undistributed earnings (loss) | $ 4,240 | $ (2,360) | $ 10,071 | $ (2,214) |
Dividends paid | 2,166 | 2,160 | 6,459 | 6,447 |
Net income (loss) attributable to common shareholders, diluted | $ 6,406 | $ (200) | $ 16,530 | $ 4,233 |
Denominator: | ||||
Weighted-average common shares outstanding, basic | 30,922 | 30,807 | 30,731 | 30,668 |
Weighted-average number of dilutive securities (shares) | 743 | 0 | 469 | 488 |
Weighted-average common shares outstanding, diluted | 31,665 | 30,807 | 31,200 | 31,156 |
Earnings (loss) per share - diluted (usd per share) | $ 0.20 | $ (0.01) | $ 0.53 | $ 0.14 |
Common Class B | ||||
Numerator: | ||||
Allocation of undistributed earnings (loss) | $ 3,306 | $ (1,891) | $ 7,969 | $ (1,754) |
Dividends paid | 1,234 | 1,234 | 3,703 | 3,704 |
Net income (loss) attributable to common shareholders, diluted | $ 4,540 | $ (657) | $ 11,672 | $ 1,950 |
Denominator: | ||||
Weighted-average common shares outstanding, basic | 24,690 | 24,690 | 24,690 | 24,690 |
Weighted-average number of dilutive securities (shares) | 0 | 0 | 0 | 0 |
Weighted-average common shares outstanding, diluted | 24,690 | 24,690 | 24,690 | 24,690 |
Earnings (loss) per share - diluted (usd per share) | $ 0.18 | $ (0.03) | $ 0.47 | $ 0.08 |
Net Income (Loss) Attributabl39
Net Income (Loss) Attributable to Shareholders of Crawford & Company per Common Share (Antidilutive Securities) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | ||
Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period | ||||||
Antidilutive Securities Excluded from Computation of (Loss) Earnings Per Share | ||||||
Shares excluded from diluted earnings per share (shares) | 50 | 15 | 70 | 32 | ||
Performance stock grants excluded because performance conditions had not been met | ||||||
Antidilutive Securities Excluded from Computation of (Loss) Earnings Per Share | ||||||
Shares excluded from diluted earnings per share (shares) | [1] | 895 | 1,819 | 895 | 1,969 | |
Scenario, forecast | Performance stock grants excluded because performance conditions had not been met | ||||||
Antidilutive Securities Excluded from Computation of (Loss) Earnings Per Share | ||||||
Shares excluded from diluted earnings per share (shares) | 529 | |||||
[1] | Compensation cost is recognized for these performance stock grants based on expected achievement rates; however, no consideration is given to these performance stock grants when calculating earnings per share until the performance measurements have been achieved. The performance measurements for approximately 529,000 outstanding performance stock grants as of September 30, 2016 are expected to be achieved by December 31, 2016. |
Net Income (Loss) Attributabl40
Net Income (Loss) Attributable to Shareholders of Crawford & Company per Common Share (Weighted Average Shares Issued) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Common Class A | CRD-A issued under non-employee director stock plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 2,000 | 4,000 | 121,000 | 59,000 |
Common Class A | CRD-A issued under the Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 119,000 | 107,000 | 119,000 | 107,000 |
Common Class A | CRD-A issued under the U.K. ShareSave Scheme | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 10,000 | 5,000 | 151,000 | 101,000 |
Common Class A | CRD-A issued under the International Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 7,000 | 7,000 | 7,000 | 7,000 |
Common Class A | CRD-A issued under the Executive Stock Bonus Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 13,000 | 20,000 | 17,000 | 94,000 |
Common Class B | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributabl41
Net Income (Loss) Attributable to Shareholders of Crawford & Company per Common Share (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Aug. 31, 2014 | |
Common Class A | |||||
Equity, Class of Treasury Stock | |||||
Shares repurchased (shares) | 0 | 500,000 | 0 | 517,700 | |
Average cost (usd per share) | $ 6.62 | $ 6.66 | |||
Common Class B | |||||
Equity, Class of Treasury Stock | |||||
Shares repurchased (shares) | 0 | 0 | 0 | 0 | |
Repurchase Authorization 2014 | Common Stock | |||||
Equity, Class of Treasury Stock | |||||
Number of shares authorized to be repurchased (shares) | 2,000,000 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss (Rollforward of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||||||
Beginning balance | $ (213,819) | $ (227,686) | $ (222,631) | [1] | $ (221,958) | |
Other comprehensive (loss) income before reclassifications | (4,194) | (6,185) | 336 | (16,714) | ||
Amounts reclassified from accumulated other comprehensive income | 2,171 | 7,823 | 6,453 | 12,624 | ||
Net current period other comprehensive (loss) income | (2,023) | 1,638 | 6,789 | (4,090) | ||
Ending balance | (215,842) | (226,048) | (215,842) | (226,048) | ||
Foreign currency translation adjustments | ||||||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||||||
Beginning balance | (19,817) | (15,188) | (24,347) | (4,659) | ||
Other comprehensive (loss) income before reclassifications | (4,194) | (6,185) | 336 | (16,714) | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||
Net current period other comprehensive (loss) income | (4,194) | (6,185) | 336 | (16,714) | ||
Ending balance | (24,011) | (21,373) | (24,011) | (21,373) | ||
Retirement liabilities | ||||||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||||||
Beginning balance | [2] | (194,002) | (212,498) | (198,284) | (217,299) | |
Other comprehensive (loss) income before reclassifications | [2] | 0 | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | [2] | 2,171 | 7,823 | 6,453 | 12,624 | |
Net current period other comprehensive (loss) income | [2] | 2,171 | 7,823 | 6,453 | 12,624 | |
Ending balance | [2] | $ (191,831) | $ (204,675) | $ (191,831) | $ (204,675) | |
[1] | Derived from the audited Consolidated Balance Sheet | |||||
[2] | Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's unaudited Condensed Consolidated Statements of Operations. See Note 6, "Defined Benefit Pension Plans" for additional details. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | |||
Liabilities: | ||||
Maximum contingent consideration liability | $ 1,742 | |||
Debt instrument, variable interest rate duration between resets | 90 days | |||
Buckley Scott | ||||
Liabilities: | ||||
Maximum contingent consideration liability | $ 1,742 | $ 2,027 | ||
Cash and cash equivalents | Measured on a recurring basis | ||||
Assets: | ||||
Money market funds | [1] | 10,042 | ||
Cash and cash equivalents | Level 1 | Measured on a recurring basis | ||||
Assets: | ||||
Money market funds | [1] | 10,042 | ||
Other noncurrent liabilities | Measured on a recurring basis | ||||
Liabilities: | ||||
Contingent earnout liability | [2] | 1,742 | ||
Other noncurrent liabilities | Level 3 | Measured on a recurring basis | ||||
Liabilities: | ||||
Contingent earnout liability | $ 1,742 | [2] | $ 1,921 | |
[1] | The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included in the Company's unaudited Condensed Consolidated Balance Sheets as "Cash and cash equivalents." | |||
[2] | The fair value of the contingent earnout liability for the 2014 acquisition of Buckley Scott Holdings Limited ("Buckley Scott") was estimated using an internally-prepared probability-weighted discounted cash flow analysis. The fair value analysis relied upon both Level 2 data (publicly observable data such as market interest rates and capital structures of peer companies) and Level 3 data (internal data such as the Company's operating projections). As such, the liability is a Level 3 fair value measurement. The valuation is sensitive to Level 3 data, with a maximum possible earnout of $1,742,000 at September 30, 2016, the same as the fair value recorded. The fair value of the contingent earnout liability is included in "Other accrued liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of the contingent earnout agreement. The fair value of the earnout was $1,921,000, with a maximum possible earnout of $2,027,000, at December 31, 2015. The change in the Level 3 fair value at September 30, 2016 was due to foreign currency translation adjustments and imputed interest. |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)segment | Sep. 30, 2015USD ($) | |
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | $ 277,286 | $ 293,335 | $ 836,863 | $ 885,510 |
Reimbursements | 18,101 | 16,649 | 47,101 | 55,506 |
Total revenues | 295,387 | 309,984 | 883,964 | 941,016 |
Net corporate interest expense | (2,262) | (2,332) | (7,553) | (6,238) |
Restructuring and special charges | (1,488) | (11,078) | (7,431) | (16,383) |
Income before income taxes | 19,955 | 7,298 | $ 49,168 | 21,707 |
Number of operating segments (segments) | segment | 4 | |||
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Total segment operating earnings | 33,229 | 27,391 | $ 89,289 | 63,115 |
Corporate, Non-Segment | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Unallocated corporate and shared costs, net | (6,947) | (4,303) | (17,454) | (11,648) |
Net corporate interest expense | (2,262) | (2,332) | (7,553) | (6,238) |
Stock option expense | (176) | (30) | (403) | (357) |
Restructuring and special charges | (1,488) | (11,078) | (7,431) | (16,383) |
Corporate, Non-Segment | Customer relationships and trade names | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Amortization of customer-relationship intangible assets | (2,401) | (2,350) | (7,280) | (6,782) |
U.S. Services | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 56,470 | 62,080 | 173,813 | 185,683 |
U.S. Services | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 56,470 | 62,080 | 173,813 | 185,683 |
Total segment operating earnings | 9,379 | 10,841 | 28,012 | 24,837 |
International | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 121,644 | 128,198 | 362,401 | 381,706 |
Total segment operating earnings | 13,236 | 7,974 | 31,243 | 11,484 |
Broadspire | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 76,676 | 74,225 | 227,975 | 217,590 |
Broadspire | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 76,676 | 74,225 | 227,975 | 217,590 |
Total segment operating earnings | 8,263 | 7,435 | 23,497 | 16,981 |
Garden City Group | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 22,496 | 28,832 | 72,674 | 100,531 |
Total segment operating earnings | $ 2,351 | $ 1,141 | $ 6,537 | $ 9,813 |
Segment Information (Revenues B
Segment Information (Revenues By Major Service Line) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue from External Customer | ||||
Revenues before reimbursements | $ 277,286 | $ 293,335 | $ 836,863 | $ 885,510 |
U.S. Services | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | 56,470 | 62,080 | 173,813 | 185,683 |
Broadspire | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | 76,676 | 74,225 | 227,975 | 217,590 |
U.S. Claims Field Operations | U.S. Services | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | 21,598 | 21,468 | 62,207 | 65,164 |
U.S. Technical Services | U.S. Services | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | 7,126 | 7,661 | 21,056 | 21,747 |
U.S. Catastrophe Services | U.S. Services | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | 9,198 | 17,305 | 35,153 | 54,274 |
Subtotal U.S. Claims Services | U.S. Services | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | 37,922 | 46,434 | 118,416 | 141,185 |
U.S. Contractor Connection | U.S. Services | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | 18,548 | 15,646 | 55,397 | 44,498 |
Workers' Compensation, Disability and Liability Claims Management | Broadspire | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | 32,028 | 30,583 | 95,910 | 90,120 |
Medical Management Services | Broadspire | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | 41,149 | 39,983 | 121,433 | 116,301 |
Risk Management Information Services | Broadspire | ||||
Revenue from External Customer | ||||
Revenues before reimbursements | $ 3,499 | $ 3,659 | $ 10,632 | $ 11,169 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2016 | Dec. 31, 2015 | |
Loss Contingencies | |||
Letters of credit outstanding amount | $ 13,809 | ||
Maximum contingent consideration liability | 1,742 | ||
Buckley Scott | |||
Loss Contingencies | |||
Period of contingent earnout provision | 2 years | ||
Business combination, contingent consideration, liability | 1,742 | ||
Maximum contingent consideration liability | $ 1,742 | $ 2,027 |
Restructuring and Special Cha47
Restructuring and Special Charges (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring and Special Charges | ||||
Restructuring and special charges | $ 1,488,000 | $ 11,078,000 | $ 7,431,000 | $ 16,383,000 |
Restructuring charges incurred | 1,361,000 | 6,100,000 | 6,531,000 | 11,405,000 |
Special charges | ||||
Restructuring and Special Charges | ||||
Special charges | 4,978,000 | 4,978,000 | ||
Severance costs | 1,627,000 | 1,627,000 | ||
Special charges | Pending litigation | ||||
Restructuring and Special Charges | ||||
Legal and professional fees | 3,351,000 | 3,351,000 | ||
Special charges | 127,000 | 900,000 | ||
Implementation and phase-in of the Centers | ||||
Restructuring and Special Charges | ||||
Restructuring charges incurred | 775,000 | 1,604,000 | 3,177,000 | 3,863,000 |
Asset impairments and lease termination costs | ||||
Restructuring and Special Charges | ||||
Restructuring charges incurred | 0 | 0 | 1,165,000 | 0 |
Integration costs related to the GAB Robins acquisition and International segment restructuring | ||||
Restructuring and Special Charges | ||||
Restructuring charges incurred | 586,000 | 4,177,000 | 2,189,000 | 5,224,000 |
Restructuring activities for U.S. Services segment | ||||
Restructuring and Special Charges | ||||
Restructuring charges incurred | $ 0 | $ 319,000 | $ 0 | $ 2,318,000 |
Restructuring and Special Cha48
Restructuring and Special Charges (Rollforward of accrued liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 10,901 | $ 14,900 | ||
Additions | 1,361 | $ 6,100 | 6,531 | $ 11,405 |
Adjustments to accruals | (391) | (933) | ||
Cash payments | (5,351) | (13,978) | ||
Ending balance | 6,520 | 6,520 | ||
Deferred rent | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 3,381 | 3,571 | ||
Additions | 0 | 1,271 | ||
Adjustments to accruals | (391) | (933) | ||
Cash payments | 0 | (919) | ||
Ending balance | 2,990 | 2,990 | ||
Accrued compensation and related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 3,566 | 7,006 | ||
Additions | 382 | 2,751 | ||
Adjustments to accruals | 0 | 0 | ||
Cash payments | (1,769) | (7,578) | ||
Ending balance | 2,179 | 2,179 | ||
Accounts payable | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 805 | 1,066 | ||
Additions | 1,380 | 3,018 | ||
Adjustments to accruals | 0 | 0 | ||
Cash payments | (2,025) | (3,924) | ||
Ending balance | 160 | 160 | ||
Other accrued liabilities | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 3,149 | 3,257 | ||
Additions | (401) | (509) | ||
Adjustments to accruals | 0 | 0 | ||
Cash payments | (1,557) | (1,557) | ||
Ending balance | $ 1,191 | $ 1,191 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event ft² in Thousands, $ in Millions | Oct. 10, 2016USD ($)ft² |
Subsequent Event | |
Lessee leasing arrangements, operating leases, term of contract | 13 years |
Area of real estate property | ft² | 109 |
Operating leases, future minimum payments due | $ | $ 31 |