Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Document Information | ||
Entity Interactive Data Current | Yes | |
Entity Registrant Name | CRAWFORD & CO | |
Entity Central Index Key | 0000025475 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Class A Non-Voting | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 30,428,832 | |
Class B Voting | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 22,694,718 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Revenues | $ 265,842 | $ 264,863 | $ 790,065 | $ 848,459 |
Costs and Expenses: | ||||
Cost of services | 192,014 | 189,072 | 565,113 | 615,662 |
Selling, general, and administrative expenses | 52,564 | 63,247 | 171,407 | 188,907 |
Corporate interest expense, net of interest income of $0, $274, $539 and $1,446, respectively | 3,162 | 2,398 | 8,346 | 7,402 |
Arbitration and claim settlements | 1,200 | 0 | 12,552 | 0 |
Loss on disposition of business line | 0 | 1,201 | 0 | 18,996 |
Total Costs and Expenses | 248,940 | 255,918 | 757,418 | 830,967 |
Other (Loss) Income, net | (883) | 762 | (2,443) | 2,644 |
Income Before Income Taxes | 16,019 | 9,707 | 30,204 | 20,136 |
Provision for Income Taxes | 5,328 | 1,828 | 11,120 | 6,255 |
Net Income | 10,691 | 7,879 | 19,084 | 13,881 |
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests | 355 | 17 | 713 | 159 |
Net Income Attributable to Shareholders of Crawford & Company | $ 11,046 | $ 7,896 | $ 19,797 | $ 14,040 |
Class A Non-Voting | ||||
Earnings Per Share - Basic: | ||||
Earnings per share - basic (usd per share) | $ 0.22 | $ 0.15 | $ 0.39 | $ 0.28 |
Earnings Per Share - Diluted: | ||||
Earnings per share - diluted (usd per share) | $ 0.21 | $ 0.15 | $ 0.39 | $ 0.28 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic (shares) | 30,645 | 30,713 | 30,701 | 30,829 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, diluted (shares) | 31,140 | 31,390 | 31,116 | 31,451 |
Class B Voting | ||||
Earnings Per Share - Basic: | ||||
Earnings per share - basic (usd per share) | $ 0.19 | $ 0.13 | $ 0.33 | $ 0.22 |
Earnings Per Share - Diluted: | ||||
Earnings per share - diluted (usd per share) | $ 0.19 | $ 0.13 | $ 0.33 | $ 0.22 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic (shares) | 22,831 | 24,446 | 23,071 | 24,455 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, diluted (shares) | 22,831 | 24,446 | 23,071 | 24,455 |
Service | ||||
Revenues: | ||||
Revenues | $ 254,677 | $ 255,029 | $ 758,616 | $ 807,177 |
Costs and Expenses: | ||||
Cost of services | 180,849 | 179,238 | 533,664 | 574,380 |
Reimbursements | ||||
Revenues: | ||||
Revenues | 11,165 | 9,834 | 31,449 | 41,282 |
Costs and Expenses: | ||||
Cost of services | $ 11,165 | $ 9,834 | $ 31,449 | $ 41,282 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations Unaudited (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Interest income | $ 0 | $ 274 | $ 539 | $ 1,446 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 10,691 | $ 7,879 | $ 19,084 | $ 13,881 |
Other Comprehensive (Loss) Income: | ||||
Net foreign currency translation income, net of tax of $0, $0, $0, and $0, respectively | (3,017) | (4,730) | (2,621) | (3,333) |
Amortization of actuarial losses for retirement plans included in net periodic pension cost, net of tax of $673, $826, $2024, and $2455, respectively | 1,984 | 1,833 | 5,976 | 5,535 |
Other Comprehensive (Loss) Income | (1,033) | (2,897) | 3,355 | 2,202 |
Comprehensive Income | 9,658 | 4,982 | 22,439 | 16,083 |
Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | 900 | 468 | 1,684 | 414 |
Comprehensive Income Attributable to Shareholders of Crawford & Company | $ 10,558 | $ 5,450 | $ 24,123 | $ 16,497 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
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 | $ 673 | $ 826 | $ 2,024 | $ 2,455 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets Unaudited - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | [1] |
Current Assets: | |||
Cash and cash equivalents | $ 46,101 | $ 53,119 | |
Accounts receivable, less allowance for doubtful accounts of $9,786 and $9,625, respectively | 131,329 | 131,117 | |
Unbilled revenues, at estimated billable amounts | 115,672 | 108,291 | |
Income taxes receivable | 4,084 | 4,084 | |
Prepaid expenses and other current assets | 24,253 | 24,237 | |
Total Current Assets | 321,439 | 320,848 | |
Net Property and Equipment | 32,035 | 34,303 | |
Other Assets: | |||
Operating lease right-of-use assets, net | 93,610 | 0 | |
Goodwill | 97,152 | 96,890 | |
Intangible assets arising from business acquisitions, net | 76,529 | 85,023 | |
Capitalized software costs, net | 66,352 | 72,210 | |
Deferred income tax assets | 19,687 | 22,146 | |
Other noncurrent assets | 68,687 | 70,022 | |
Total Other Assets | 422,017 | 346,291 | |
TOTAL ASSETS | 775,491 | 701,442 | |
Current Liabilities: | |||
Short-term borrowings | 33,606 | 23,195 | |
Accounts payable | 31,178 | 37,834 | |
Accrued compensation and related costs | 66,559 | 66,530 | |
Self-insured risks | 14,873 | 15,246 | |
Income taxes payable | 2,236 | 3,145 | |
Deferred rent | 0 | 15,919 | |
Operating lease liabilities | 30,073 | 0 | |
Other accrued liabilities | 37,242 | 32,391 | |
Deferred revenues | 29,007 | 30,961 | |
Current installments of finance leases | 13 | 89 | |
Total Current Liabilities | 244,787 | 225,310 | |
Noncurrent Liabilities: | |||
Long-term debt and finance leases, less current installments | 155,761 | 167,126 | |
Operating lease liabilities | 78,371 | 0 | |
Deferred revenues | 23,839 | 21,713 | |
Accrued pension liabilities | 71,093 | 74,323 | |
Other noncurrent liabilities | 29,761 | 32,024 | |
Total Noncurrent Liabilities | 358,825 | 295,186 | |
Redeemable Noncontrolling Interests | 4,846 | 5,500 | |
Shareholders' Investment: | |||
Additional paid-in capital | 62,716 | 58,793 | |
Retained earnings | 260,621 | 273,607 | |
Accumulated other comprehensive loss | (212,122) | (216,447) | |
Shareholders' Investment Attributable to Shareholders of Crawford & Company | 164,362 | 171,288 | |
Noncontrolling interests | 2,671 | 4,158 | |
Total Shareholders' Investment | 167,033 | 175,446 | |
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 775,491 | 701,442 | |
Class A Non-Voting | |||
Shareholders' Investment: | |||
Common stock outstanding, value | 30,420 | 30,927 | |
Class B Voting | |||
Shareholders' Investment: | |||
Common stock outstanding, value | $ 22,727 | $ 24,408 | |
[1] | Derived from the audited Consolidated Balance Sheet |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Unaudited (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | [1] |
Current Assets: | |||
Allowance for doubtful accounts | $ 9,786 | $ 9,625 | |
Class A Non-Voting | |||
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) | 30,420,000 | 30,927,000 | |
Shares outstanding (shares) | 30,420,000 | 30,927,000 | |
Class B Voting | |||
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) | 22,727,000 | 24,408,000 | |
Shares outstanding (shares) | 22,727,000 | 24,408,000 | |
[1] | Derived from the audited Consolidated Balance Sheet. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows Unaudited - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 19,084 | $ 13,881 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 30,086 | 33,284 |
Stock-based compensation | 2,610 | 4,838 |
Loss on disposition of business line | 0 | 18,996 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 1,108 | 12,811 |
Unbilled revenues, net | (8,740) | (26,156) |
Accrued or prepaid income taxes | 443 | 788 |
Accounts payable and accrued liabilities | (4,361) | (10,665) |
Deferred revenues | 514 | (2,068) |
Accrued retirement costs | 1,545 | (26,486) |
Prepaid expenses and other operating activities | 36 | (3,196) |
Net cash provided by operating activities | 42,325 | 16,027 |
Cash Flows From Investing Activities: | ||
Acquisitions of property and equipment | (5,664) | (12,406) |
Cash proceeds from disposition of business line | 0 | 40,275 |
Capitalization of computer software costs | (7,276) | (13,098) |
Payments for business acquisitions, net of cash acquired | (2,296) | (2,500) |
Other investing activities | 0 | (218) |
Net cash (used in) provided by investing activities | (15,236) | 12,053 |
Cash Flows From Financing Activities: | ||
Cash dividends paid | (9,894) | (10,159) |
Proceeds from shares purchased under employee stock-based compensation plans | 1,909 | 1,301 |
Repurchases of common stock | (25,673) | (7,715) |
Increases in short-term and revolving credit facility borrowings | 65,449 | 89,554 |
Payments on short-term and revolving credit facility borrowings | (64,962) | (100,895) |
Payments on finance lease obligations | (106) | (361) |
Dividends paid to noncontrolling interests | (458) | (349) |
Net cash used in financing activities | (33,735) | (28,624) |
Effects of exchange rate changes on cash and cash equivalents | (372) | (128) |
Decrease in cash and cash equivalents | (7,018) | (672) |
Cash and cash equivalents at beginning of year | 53,119 | 54,011 |
Cash and cash equivalents at end of period | $ 46,101 | $ 53,339 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Shareholders' Investment Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | $ 164,399 | $ 166,508 | $ 175,446 | [1] | $ 187,209 | $ 194,830 | $ 186,964 | $ 175,446 | [1] | $ 186,964 | ||
Net income | [2] | 10,962 | 2,630 | 6,146 | 8,201 | (2,120) | 8,757 | |||||
Other comprehensive income (loss) | (1,033) | (669) | 5,057 | (2,897) | (4,070) | 9,169 | 3,355 | 2,202 | ||||
Cash dividends paid (Class A - $0.07 per share, Class B - $0.05 per share) | (3,299) | (3,313) | (3,282) | (3,375) | (3,363) | (3,421) | ||||||
Stock-based compensation | 1,211 | 1,646 | (247) | 1,483 | 1,790 | 1,565 | ||||||
Acquisition of noncontrolling interest | (218) | |||||||||||
Repurchases of common stock | (6,088) | (3,167) | (16,418) | (479) | (8,860) | |||||||
Common stock activity, net | 1,059 | 960 | (110) | 978 | 309 | 14 | ||||||
Dividends paid to noncontrolling interests | (178) | (196) | (84) | (182) | (167) | |||||||
Cumulative-effect adjustment of ASC 606 | $ 642 | |||||||||||
Ending balance | 167,033 | 164,399 | 166,508 | 190,720 | 187,209 | 194,830 | 167,033 | 190,720 | ||||
Shareholders' Investment Attributable to Shareholders of Crawford & Company | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 160,921 | 162,413 | 171,288 | 182,043 | 189,769 | 182,320 | 171,288 | 182,320 | ||||
Net income | [2] | 11,046 | 2,642 | 6,109 | 7,896 | (2,425) | 8,569 | |||||
Other comprehensive income (loss) | (488) | (260) | 5,073 | (2,446) | (4,037) | 8,940 | ||||||
Cash dividends paid (Class A - $0.07 per share, Class B - $0.05 per share) | (3,299) | (3,313) | (3,282) | (3,375) | (3,363) | (3,421) | ||||||
Stock-based compensation | 1,211 | 1,646 | (247) | 1,483 | 1,790 | 1,565 | ||||||
Acquisition of noncontrolling interest | (218) | |||||||||||
Repurchases of common stock | (6,088) | (3,167) | (16,418) | (479) | (8,860) | |||||||
Common stock activity, net | 1,059 | 960 | (110) | 978 | 309 | 14 | ||||||
Cumulative-effect adjustment of ASC 606 | 642 | |||||||||||
Ending balance | 164,362 | 160,921 | 162,413 | 185,882 | 182,043 | 189,769 | 164,362 | 185,882 | ||||
Additional Paid-In Capital | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 60,601 | 58,321 | 58,793 | 56,677 | 54,647 | 53,170 | 58,793 | 53,170 | ||||
Stock-based compensation | 1,211 | 1,646 | (247) | 1,483 | 1,790 | 1,565 | ||||||
Acquisition of noncontrolling interest | (218) | |||||||||||
Common stock activity, net | 904 | 634 | (225) | 823 | 240 | (88) | ||||||
Ending balance | 62,716 | 60,601 | 58,321 | 58,765 | 56,677 | 54,647 | 62,716 | 58,765 | ||||
Retained Earnings | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 258,329 | 261,814 | 273,607 | 261,894 | 267,682 | 269,686 | 273,607 | 269,686 | ||||
Net income | [2] | 11,046 | 2,642 | 6,109 | 7,896 | (2,425) | 8,569 | |||||
Cash dividends paid (Class A - $0.07 per share, Class B - $0.05 per share) | (3,299) | (3,313) | (3,282) | (3,375) | (3,363) | (3,421) | ||||||
Repurchases of common stock | (5,455) | (2,814) | (14,620) | (425) | (7,794) | |||||||
Cumulative-effect adjustment of ASC 606 | $ 642 | |||||||||||
Ending balance | 260,621 | 258,329 | 261,814 | 265,990 | 261,894 | 267,682 | 260,621 | 265,990 | ||||
Accumulated Other Comprehensive Loss | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | (211,634) | (211,374) | (216,447) | (191,574) | (187,537) | (196,477) | (216,447) | (196,477) | ||||
Other comprehensive income (loss) | (488) | (260) | 5,073 | (2,446) | (4,037) | 8,940 | ||||||
Ending balance | (212,122) | (211,634) | (211,374) | (194,020) | (191,574) | (187,537) | (212,122) | (194,020) | ||||
Noncontrolling Interests | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 3,478 | 4,095 | 4,158 | 5,166 | 5,061 | 4,644 | 4,158 | 4,644 | ||||
Net income | [2] | (84) | (12) | 37 | 305 | 305 | 188 | |||||
Other comprehensive income (loss) | (545) | (409) | (16) | (451) | (33) | 229 | ||||||
Dividends paid to noncontrolling interests | (178) | (196) | (84) | (182) | (167) | |||||||
Ending balance | 2,671 | 3,478 | 4,095 | 4,838 | 5,166 | 5,061 | 2,671 | 4,838 | ||||
Class A Non-Voting | Common Stock | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 30,667 | 30,621 | 30,927 | 30,598 | 30,529 | 31,439 | 30,927 | 31,439 | ||||
Repurchases of common stock | (402) | (280) | (421) | (43) | (1,012) | |||||||
Common stock activity, net | 155 | 326 | 115 | 155 | 69 | 102 | ||||||
Ending balance | 30,420 | 30,667 | 30,621 | 30,710 | 30,598 | 30,529 | 30,420 | 30,710 | ||||
Class B Voting | Common Stock | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 22,958 | 23,031 | 24,408 | 24,448 | 24,448 | 24,502 | 24,408 | 24,502 | ||||
Repurchases of common stock | (231) | (73) | (1,377) | (11) | (54) | |||||||
Ending balance | $ 22,727 | $ 22,958 | $ 23,031 | $ 24,437 | $ 24,448 | $ 24,448 | $ 22,727 | $ 24,437 | ||||
[1] | Derived from the audited Consolidated Balance Sheet | |||||||||||
[2] | (1) The total net income presented in the condensed consolidated statements of shareholders' investment for the three months ended March 31, June 30 and September 30, 2018 excludes $327, $308 and $322 respectively, in net loss attributable to the redeemable noncontrolling interests. |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Shareholders' Investment Unaudited (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Class of Stock [Line Items] | ||||||
Net income (loss) attributable to redeemable noncontrolling interest | $ 271 | $ 6 | $ 377 | $ 322 | $ 308 | $ 327 |
Class A Non-Voting | ||||||
Class of Stock [Line Items] | ||||||
Cash dividends paid (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 |
Class B Voting | ||||||
Class of Stock [Line Items] | ||||||
Cash dividends paid (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
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. The Company's operating results for the three months and nine months ended and financial position as of September 30, 2019 are not necessarily indicative of the results or financial position that may be expected for the year ending December 31, 2019 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, and 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, 2018 other than as disclosed herein. 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, 2018 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, 2018 . The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and also 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, 2019 and December 31, 2018 , the liabilities of the deferred compensation plan were $8,790,000 and $8,914,000 , 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 $16,634,000 and $16,402,000 , 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, 2019 were $12,468,000 and $8,261,000 , respectively. Total assets and liabilities of LWI as of December 31, 2018 were $12,232,000 and $10,423,000 , respectively. Included in LWI's total liabilities is a loan from Crawford of $4,217,000 and $6,934,000 as of September 30, 2019 and December 31, 2018 , respectively. Noncontrolling interests represent the minority shareholders' share of the net income or loss and shareholders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the unaudited Condensed Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' investment as "Redeemable Noncontrolling Interests" and are recorded at either their initial fair value plus any profits or losses or estimated redemption value if an adjustment is required. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of New Accounting Standards Financial Accounting for Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, "Financial Accounting for Leases" together with its subsequent related amendments in 2018 and 2019, collectively referred to as Topic 842. Under Topic 842, a lessee is required to recognize assets and liabilities for leases with lease terms of more than 12 months. Topic 842 also requires 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 Company adopted Topic 842 as of January 1, 2019 ("transition date") using the modified retrospective approach and as a result did not adjust the comparative period financial information or make the Topic 842 required lease disclosures for periods before the transition date. The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification, lease term and initial direct costs as well as the practical expedient to choose not to separate nonlease components from lease components and instead account for each as a single lease component for all classes of its assets. As a result of adopting Topic 842, the Company recognized operating lease right-of-use assets of $ 107.3 million and current and noncurrent operating lease liabilities of $ 33.0 million and $ 89.3 million , respectively, and reversed deferred rents of $ 15.0 million on its unaudited Condensed Consolidated Balance Sheets. The adoption of Topic 842 resulted in no material impact to the Company's results of operations or cash flows and did not impact the Company's compliance with the financial covenants under its credit facility. See Note 4, "Lease Commitments" for further discussion on the Company's leases. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This update allows companies to reclassify stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act ("Tax Act"), from accumulated other comprehensive income (loss) to retained earnings. This update is effective for annual periods beginning after December 15, 2018, and interim periods thereafter. The Company adopted this ASU for the period ended March 31, 2019 and elected not to reclassify the income tax effects of the Tax Act from accumulated other comprehensive loss to retained earnings. Pending Adoption of Recently Issued Accounting Standards Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" together with its subsequent related amendments in 2018 and 2019, collectively referred to as Topic 326. Topic 326 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, including trade receivables, with gains and losses recognized through income. The expected credit loss methodology incorporates past experience, current conditions and reasonable and supportable forecasts affecting collectability of these assets. Topic 326 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 plans to adopt Topic 326 on January 1, 2020 using a modified retrospective approach. The Company is currently evaluating the effect Topic 326 may have on its results of operations, financial condition and cash flows. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This update amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, by removing and modifying certain disclosure requirements and adding others. This update removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. This update requires the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, this update clarifies that transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities are required to be disclosed. These updates are effective for annual periods beginning after December 15, 2019, and interim periods thereafter. Early adoption is permitted and early adoption of any removed or modified disclosures upon issuance of this update is permitted while delaying adoption of the additional disclosures until the effective date. The Company is currently evaluating the effect this ASU will have on its Fair Value Measurements disclosure. Compensation-Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)." This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This update removes certain disclosure requirements including, but not limited to, the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the amount and timing of plan assets expected to be returned to the employer. This update requires the disclosure of the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This update also clarifies requirements for entities that provide aggregate disclosures for two or more plans. The update is effective for annual periods beginning after December 15, 2020, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on its Retirement Plans disclosure. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40).” This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. This update also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Further, this update requires the presentation of the expense in the statement of income, the presentation of the costs on the statement of financial position and the classification of payments in the statement of cash flows related to capitalized implementation costs to be treated the same as the fees of the associated hosting arrangement. The update is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on its results of operations, financial condition and cash flows. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition As of January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") 606 using the modified retrospective method for those contracts which were not substantially completed as of the transition date. The reported results for the three and nine months ended September 30, 2019 and 2018 reflect the application of ASC 606. Revenue from Contracts with Customers Revenues are recognized when control of the promised services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are recognized net of any sales, use or value added taxes collected from customers, which are subsequently remitted to governmental authorities. As the Company completes its performance obligations which are identified below, it has an unconditional right to consideration as outlined in the Company's contracts. Generally, the Company's accounts receivable are expected to be collected in less than two months, in accordance with the underlying payment terms. The Company's Crawford Claims Solutions segment generates revenue for adjusting services provided to insurance companies and self-insured entities related to property, casualty and catastrophe losses caused by physical damage to commercial and residential real property and certain types of personal property. The Company charges on a fee-per-claim basis for each optional purchase of the claims management services exercised by its customer. Revenue is recognized over time as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document and report the claim and control of these services is transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type for fixed fee claims applied utilizing a portfolio approach based on time elapsed for these claims. For claims billed on a time and expense incurred basis, which are considered variable consideration, the Company recognizes revenue at the amount in which it has the right to invoice for services performed. These methods of revenue recognition are the most accurate depiction of the transfer of the claims management services to the customer. The Company also generates revenue by providing on-demand inspection, verification and other task specific field services for businesses and consumers. Task assignment services are single optional purchase performance obligations which are generally satisfied at a point in time when the control of the service is transferred to the customer. Therefore, revenue is recognized when the customer receives the service requested. The following table presents Crawford Claims Solutions revenues before reimbursements disaggregated by geography for the three months and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended (in thousands) September 30, September 30, September 30, September 30, U.S. $ 35,982 $ 34,480 $ 103,743 $ 110,426 U.K. 15,123 15,803 47,325 47,397 Canada 12,008 11,692 36,276 38,857 Australia 11,886 11,739 35,220 33,889 Europe 7,429 7,234 21,265 23,887 Rest of World 3,822 4,384 11,743 14,432 Total Crawford Claims Solutions Revenues before Reimbursements $ 86,250 $ 85,332 $ 255,572 $ 268,888 The Crawford TPA Solutions segment (formerly referred to as "Global TPA Solutions: Broadspire") is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Claims Management service line includes Workers' Compensation, Liability, Property and Disability Claims Management. This service line also performs additional services such as Accident & Health claims programs, including Affinity type claims, and disability and leave management services. Each claim referred by the customer is considered an additional optional purchase of claims management services under the agreement with the customer. The transaction price is specified in the contract and is fixed for each service. Revenue is recognized over time as services are provided as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document, and report the claim and control of these services is transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type applied utilizing a portfolio approach based on time elapsed for these claims as the Company believes this is the most accurate depiction of the transfer of the claims management services to its customer. This service line also provides Risk Management Information Services. For non-claim services, revenue is recognized over time as services are provided and control of these services is transferred to the customer. Revenue is recognized as time elapses as this is the most accurate depiction of the transfer of the service to the customer. The Company's obligation to manage claims under the Claims Management service line can range from less than one year, on a one - or two -year basis or for the lifetime of the claim. Under certain claims management agreements, the Company receives consideration from a customer at contract inception prior to transferring services to the customer, however, it would begin performing services immediately. The period between a customer’s payment of consideration and the completion of the promised services could be greater than one year. There is no difference between the amount of promised consideration and the cash selling price of the promised services. The fee is billed upfront by the Company in order to provide customers with simplified and predictable ways of purchasing its services and it is customary to invoice service fees when the claim is assigned. The Company considered whether a significant financing component exists and determined that there is not a significant financing component at the contract level. The Medical Management service line offers case managers who provide administration services by proactively managing medical treatment for claimants while facilitating an understanding of and participation in their rehabilitation process. Revenue for Medical Management services is recognized over time as the performance obligations are satisfied through the effort expended to manage the medical treatment for claimants and control of these services is transferred to the customer. Medical Management services are generally billed based on time incurred, are considered variable consideration, and revenue is recognized at the amount in which the Company has the right to invoice for services performed. This method of revenue recognition is the most accurate depiction of the transfer of the Medical Management service to the customer. Medical bill review services provide an analysis of medical charges for clients’ claims to identify opportunities for savings. Medical bill review services revenues are recognized over time as control of the service is transferred to the customer. Revenue is recognized based upon the transfer of the results of the medical bill review service to the customer as this is the most accurate depiction of the transfer of the service to the customer. The following tables present Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the three months and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 37,352 $ 43,024 $ 80,376 $ 37,294 $ 42,685 $ 79,979 U.K. 2,730 — $ 2,730 2,863 — 2,863 Canada 8,210 — 8,210 9,081 — 9,081 Europe and Rest of World 8,179 — 8,179 8,348 — 8,348 Total Crawford TPA Solutions Revenues before Reimbursements $ 56,471 $ 43,024 $ 99,495 $ 57,586 $ 42,685 $ 100,271 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 109,700 $ 127,691 $ 237,391 $ 112,616 $ 128,359 $ 240,975 U.K. 8,243 — $ 8,243 9,387 — 9,387 Canada 25,466 — 25,466 27,580 — 27,580 Europe and Rest of World 25,707 — 25,707 25,210 — 25,210 Total Crawford TPA Solutions Revenues before Reimbursements $ 169,116 $ 127,691 $ 296,807 $ 174,793 $ 128,359 $ 303,152 The Company's Crawford Specialty Solutions segment principally generates revenues through its Global Technical Services and Contractor Connection service lines. The Garden City Group business, which was part of Crawford Specialty Solutions, was disposed of as of June 15, 2018. See Note 13, "Disposition of Business Line" for further discussion about this transaction. The Global Technical Services service line generates revenues for claims management services provided to insurance companies and self-insured entities related to large, complex losses with technical adjusting and industry experts servicing a broad range of industries. Revenue is recognized over time as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document and report the claim and control of these services is transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type for fixed fee claims, applied utilizing a portfolio approach based on time elapsed for these claims. For claims billed on a time and expense incurred basis, which are considered variable consideration, the Company recognizes revenue at the amount in which it has the right to invoice for services performed. These methods of revenue recognition are the most accurate depiction of the transfer of the claims management services to the customer. The Contractor Connection service line generates revenue through its independently managed contractor network. Contractor Connection primarily generates revenue by receiving a fee for each project that is sold by its network of contractors. Revenue is recognized at a point in time once the consumer accepts the contractor's proposal as Contractor Connection’s performance obligation of referring projects to its contractors has been completed and the Company is entitled to consideration at that time. The contractor takes control of the service upon the consumer’s acceptance of the contractor’s proposal. The following table presents Crawford Specialty Solutions revenues before reimbursements disaggregated by service line and geography for the three months and nine months ended September 30, 2019 : Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 10,202 $ 19,617 $ 29,819 $ 10,003 $ 18,682 $ 28,685 U.K. 11,728 1,263 12,991 11,931 2,034 13,965 Canada 6,294 1,838 8,132 6,117 2,268 8,385 Australia 5,935 222 6,157 6,494 240 6,734 Europe 5,141 2 5,143 5,277 1 5,278 Rest of World 6,690 — 6,690 6,379 — 6,379 Total Crawford Specialty Solutions Revenues before Reimbursements $ 45,990 $ 22,942 $ 68,932 $ 46,201 $ 23,225 $ 69,426 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in thousands) Global Technical Services Contractor Connection Garden City Group Total Global Technical Services Contractor Connection Garden City Group Total U.S. $ 30,888 $ 60,270 $ — $ 91,158 $ 29,607 $ 56,706 $ 28,827 $ 115,140 U.K. 34,444 3,955 — 38,399 34,446 6,308 — 40,754 Canada 19,522 5,773 — 25,295 18,761 6,208 1,048 26,017 Australia 16,881 608 — 17,489 17,833 999 — 18,832 Europe 14,793 3 — 14,796 16,356 3 — 16,359 Rest of World 19,100 — — 19,100 18,035 — — 18,035 Total Crawford Specialty Solutions Revenues before Reimbursements $ 135,628 $ 70,609 $ — $ 206,237 $ 135,038 $ 70,224 $ 29,875 $ 235,137 In the normal course of business, the Company's operating segments incur certain out-of-pocket expenses that are thereafter reimbursed by its customers. The Company controls the promised good or service before it is transferred to its customer, therefore it is a principal in the transaction. These out-of-pocket expenses and associated reimbursements are reported on a gross basis within expenses and revenues, respectively, in the Company's unaudited Condensed Consolidated Statements of Operations. Arrangements with Multiple Performance Obligations For claims management services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company sells multiple lines of claims processing and different levels of processing depending on the complexity of the claims. The Company typically provides a menu of offerings from which the customer chooses to purchase at its option. The price of each service is separate and distinct and provides a separate and distinct value to the customer. Pricing is consistent for each service irrespective of the other services or quantities requested by the customer. For example, if the Company provides claims processing for both auto and general liability, those services are priced and delivered independently. Contract Balances The timing of revenue recognition, billings and cash collections result in billed accounts receivables, contract assets (reported as "Unbilled revenues at estimated billable amounts") and contract liabilities (reported as "Deferred revenues") on the Company’s unaudited Condensed Consolidated Balance Sheets. Unbilled revenues is a contract asset for revenue that has been recognized in advance of billing the customer, resulting from professional services delivered that the Company expects and is entitled to receive as consideration under certain contracts. Billing requirements vary by contract but substantially all unbilled revenues are billed within one year. When the Company receives consideration from a customer prior to transferring services to the customer under the terms of certain claims management agreements, it records deferred revenues on the Company’s unaudited Condensed Consolidated Balance Sheets, which represents a contract liability. These fixed-fee service agreements typically result from the Crawford TPA Solutions segment and require the Company to handle claims on either a one - or two -year basis, or for the lifetime of the claim. In cases where it handles a claim on a non-lifetime basis, the Company typically receives an additional fee on each anniversary date that the claim remains open. For service agreements where it provides services for the life of the claim, the Company is paid one upfront fee regardless of the duration of the claim. The Company recognizes deferred revenues as revenues as it performs services and transfers control of the services to the customer and satisfies the performance obligation which it determines utilizing a portfolio approach. The Company's deferred revenues for claims handled for one or two years are not as sensitive to changes in claim closing rates since the performance obligations are satisfied within a fixed length of time. Deferred revenues for lifetime claim handling are more sensitive to changes in claim closing rates since the Company is obligated to handle these claims to conclusion with no additional fees received for long-lived claims. For all fixed fee service agreements, revenues are recognized over the expected service periods by type of claim. Based upon its historical averages, the Company closes approximately 98% of all cases referred to it under lifetime claim service agreements within five years from the date of referral. Also, within that five-year period, the percentage of cases remaining open in any one particular year has remained relatively consistent from period to period. Each quarter the Company evaluates its historical case closing rates by type of claim utilizing a portfolio approach and makes adjustments to deferred revenues as necessary. As a portfolio approach is utilized to recognize deferred revenues, any changes in estimates will impact the timing of revenue recognition and any changes in estimates are recognized in the period in which they are determined. The table below presents the deferred revenues balance as of January 1, 2019 and the significant activity affecting deferred revenues during the nine months ended September 30, 2019 : (In Thousands) Customer Contract Liabilities Deferred Revenue Balance at January 1, 2019 $ 52,673 Quarterly additions 20,790 Revenue recognized from the prior periods (13,871 ) Revenue recognized from current quarter additions (5,485 ) Balance as of March 31, 2019 54,107 Quarterly additions 18,536 Revenue recognized from the prior periods (12,640 ) Revenue recognized from current quarter additions (6,322 ) Balance as of June 30, 2019 53,681 Quarterly additions 20,411 Revenue recognized from the prior periods (16,597 ) Revenue recognized from current quarter additions (4,649 ) Balance as of September 30, 2019 $ 52,846 Remaining Performance Obligations As of September 30, 2019 , the Company had $92.0 million of remaining performance obligations related to claims and non-claims services in which the price is fixed. Remaining performance obligations consist of deferred revenues as well as certain unbilled receivables that are considered contract assets. The Company expects to recognize approximately 70% of our remaining performance obligations as revenues within one year and the remaining balance thereafter. Costs to Obtain a Contract The Company has a sales incentive compensation program where remuneration is based on the revenues recognized in the period and does not represent an incremental cost to the Company which provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented as a contract asset on the Company's unaudited Condensed Consolidated Balance Sheets. Practical Expedients Elected As a practical expedient, the Company does not adjust the consideration in a contract for the effects of a significant financing component it expects, at contract inception, when the period between a customer’s payment of consideration and the transfer of promised services to the customer will be one year or less. For claims management services that are billed on a time and expense incurred or per unit basis and revenue is recognized over time, the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not disclose the value of remaining performance obligations for (i) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed, and (ii) contracts with variable consideration allocated entirely to a single performance obligation. |
Lease Commitments Lease Commitm
Lease Commitments Lease Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company determines if an arrangement is a lease at inception. The Company's and its subsidiaries' leases include office space, computer equipment, and automobiles under operating and finance leases. These lease agreements have remaining lease terms of 1 to 11 years . Some of these lease agreements include options to extend the leases for up to 5 years , options to terminate the leases within 1 year , rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company, as sublessor, subleases certain office space which mostly consists of a two-building office complex in Plantation, Florida in which the terms of the primary lease and the related subleases end in December 2021. Under all of its executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $1.1 million during the remainder of 2019, $ 4.3 million in 2020, $ 4.2 million in 2021 and $0.2 million in 2022. The Company's finance leases are not material for the three months or nine months ended or as of September 30, 2019 and are excluded from the disclosures below. The following table presents the lease-related assets and liabilities recorded on the Company's unaudited Condensed Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet September 30, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 93,610 Liabilities: Current operating lease liabilities Current operating lease liabilities 30,073 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 78,371 Total operating lease liabilities $ 108,444 Weighted-Average Remaining Lease Term 5.43 years Weighted-Average Discount Rate (1) 5.6 % (1) Upon adoption of Topic 842, discount rates used for existing leases were established at the transition date. The components of operating lease costs within the Company's unaudited Condensed Consolidated Statements of Operations consisted of the following for the three months and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 9,298 $ 28,410 Variable lease cost 2,078 5,849 Sublease income 1,114 3,086 Supplemental cash flow information related to operating leases for the three months and nine months ended September 30, 2019 were as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,806 $ 29,220 Right-of-use assets obtained in exchange for lease obligations (1) $ 1,294 $ 13,310 (1) The nine months ended September 30, 2019 amount excludes $ 122.3 million of right-of-use assets recognized upon adoption of Topic 842. Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows: (in thousands) September 30, 2019 2019 $ 9,398 2020 32,187 2021 25,827 2022 14,876 2023 10,875 Thereafter 33,540 Total undiscounted lease payments 126,703 Less imputed interest (18,259 ) Present value of future lease payments $ 108,444 The Company has entered into operating lease agreements that have not yet commenced as of September 30, 2019 with legally binding minimum lease payments of $4.5 million . The leases are expected to commence during the three months ended December 31, 2019, and have lease terms between 3 years and 10 years . |
Lease Commitments | Lease Commitments The Company determines if an arrangement is a lease at inception. The Company's and its subsidiaries' leases include office space, computer equipment, and automobiles under operating and finance leases. These lease agreements have remaining lease terms of 1 to 11 years . Some of these lease agreements include options to extend the leases for up to 5 years , options to terminate the leases within 1 year , rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company, as sublessor, subleases certain office space which mostly consists of a two-building office complex in Plantation, Florida in which the terms of the primary lease and the related subleases end in December 2021. Under all of its executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $1.1 million during the remainder of 2019, $ 4.3 million in 2020, $ 4.2 million in 2021 and $0.2 million in 2022. The Company's finance leases are not material for the three months or nine months ended or as of September 30, 2019 and are excluded from the disclosures below. The following table presents the lease-related assets and liabilities recorded on the Company's unaudited Condensed Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet September 30, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 93,610 Liabilities: Current operating lease liabilities Current operating lease liabilities 30,073 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 78,371 Total operating lease liabilities $ 108,444 Weighted-Average Remaining Lease Term 5.43 years Weighted-Average Discount Rate (1) 5.6 % (1) Upon adoption of Topic 842, discount rates used for existing leases were established at the transition date. The components of operating lease costs within the Company's unaudited Condensed Consolidated Statements of Operations consisted of the following for the three months and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 9,298 $ 28,410 Variable lease cost 2,078 5,849 Sublease income 1,114 3,086 Supplemental cash flow information related to operating leases for the three months and nine months ended September 30, 2019 were as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,806 $ 29,220 Right-of-use assets obtained in exchange for lease obligations (1) $ 1,294 $ 13,310 (1) The nine months ended September 30, 2019 amount excludes $ 122.3 million of right-of-use assets recognized upon adoption of Topic 842. Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows: (in thousands) September 30, 2019 2019 $ 9,398 2020 32,187 2021 25,827 2022 14,876 2023 10,875 Thereafter 33,540 Total undiscounted lease payments 126,703 Less imputed interest (18,259 ) Present value of future lease payments $ 108,444 The Company has entered into operating lease agreements that have not yet commenced as of September 30, 2019 with legally binding minimum lease payments of $4.5 million . The leases are expected to commence during the three months ended December 31, 2019, and have lease terms between 3 years and 10 years . |
Lease Commitments | Lease Commitments The Company determines if an arrangement is a lease at inception. The Company's and its subsidiaries' leases include office space, computer equipment, and automobiles under operating and finance leases. These lease agreements have remaining lease terms of 1 to 11 years . Some of these lease agreements include options to extend the leases for up to 5 years , options to terminate the leases within 1 year , rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company, as sublessor, subleases certain office space which mostly consists of a two-building office complex in Plantation, Florida in which the terms of the primary lease and the related subleases end in December 2021. Under all of its executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $1.1 million during the remainder of 2019, $ 4.3 million in 2020, $ 4.2 million in 2021 and $0.2 million in 2022. The Company's finance leases are not material for the three months or nine months ended or as of September 30, 2019 and are excluded from the disclosures below. The following table presents the lease-related assets and liabilities recorded on the Company's unaudited Condensed Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet September 30, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 93,610 Liabilities: Current operating lease liabilities Current operating lease liabilities 30,073 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 78,371 Total operating lease liabilities $ 108,444 Weighted-Average Remaining Lease Term 5.43 years Weighted-Average Discount Rate (1) 5.6 % (1) Upon adoption of Topic 842, discount rates used for existing leases were established at the transition date. The components of operating lease costs within the Company's unaudited Condensed Consolidated Statements of Operations consisted of the following for the three months and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 9,298 $ 28,410 Variable lease cost 2,078 5,849 Sublease income 1,114 3,086 Supplemental cash flow information related to operating leases for the three months and nine months ended September 30, 2019 were as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,806 $ 29,220 Right-of-use assets obtained in exchange for lease obligations (1) $ 1,294 $ 13,310 (1) The nine months ended September 30, 2019 amount excludes $ 122.3 million of right-of-use assets recognized upon adoption of Topic 842. Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows: (in thousands) September 30, 2019 2019 $ 9,398 2020 32,187 2021 25,827 2022 14,876 2023 10,875 Thereafter 33,540 Total undiscounted lease payments 126,703 Less imputed interest (18,259 ) Present value of future lease payments $ 108,444 The Company has entered into operating lease agreements that have not yet commenced as of September 30, 2019 with legally binding minimum lease payments of $4.5 million . The leases are expected to commence during the three months ended December 31, 2019, and have lease terms between 3 years and 10 years . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
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. The provision for income taxes on consolidated income before income taxes totaled $5.3 million and $1.8 million for the three months ended September 30, 2019 and 2018 , respectively. The provision for income taxes on consolidated income before income taxes totaled $11.1 million and $6.3 million for the nine months ended September 30, 2019 and 2018 , respectively. The overall effective tax rate increased to 36.8% for the nine months ended September 30, 2019 compared with 31.1% for the 2018 period primarily due to a one-time tax planning benefit in 2018 related to the voluntary contribution of $10.0 million to the Company's U.S. defined benefit pension plan, the impact of the sale of the Garden City Group business (the “GCG Business”) in 2018, and the arbitration and claim settlements in 2019. See Note 13, "Disposition of Business Line" and Note 11, "Commitments and Contingencies" for further discussion of these items. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Defined Benefit Pension Plans | Defined Benefit Pension Plans Net periodic cost (benefit) 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, 2019 and 2018 included the following components: Three Months Ended Nine Months Ended (in thousands) September 30, September 30, September 30, September 30, Service cost $ 332 $ 355 $ 1,004 $ 1,099 Interest cost 5,565 5,282 16,763 16,017 Expected return on assets (7,371 ) (8,718 ) (22,214 ) (26,478 ) Amortization of actuarial loss 2,689 2,696 8,073 8,117 Net periodic cost (benefit) $ 1,215 $ (385 ) $ 3,626 $ (1,245 ) For the three months ended September 30, 2019 and 2018 , the non-service components of net periodic pension costs of $883,000 of expense and $740,000 of income, respectively, are included in "Other (Loss) Income, net" on the unaudited Condensed Consolidated Statement of Operations. For the nine months ended September 30, 2019 and 2018 , the non-service components of net periodic pension costs of $2,622,000 of expense and $2,344,000 of income, respectively, are included in "Other (Loss) Income, net" on the unaudited Condensed Consolidated Statement of Operations. For the nine month period ended September 30, 2019 , the Company made no contributions to the U.S. defined benefit pension plan and contributions of $527,000 to the U.K. defined benefit pension plans, compared with contributions of $19,000,000 and $4,168,000 , respectively, in the comparable 2018 period. |
Net Income Attributable to Shar
Net Income Attributable to Shareholders of Crawford & Company per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Shareholders of Crawford & Company per Common Share | Net Income 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. During the first three quarters of 2019 and 2018, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. The computations of basic net income 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 per share - basic: Numerator: Allocation of undistributed earnings $ 4,439 $ 3,308 $ 2,518 $ 2,004 $ 5,654 $ 4,249 $ 2,165 $ 1,717 Dividends paid 2,157 1,142 2,152 1,223 6,449 3,445 6,491 3,668 Net income attributable to common shareholders, basic $ 6,596 $ 4,450 $ 4,670 $ 3,227 $ 12,103 $ 7,694 $ 8,656 $ 5,385 Denominator: Weighted-average common shares outstanding, basic 30,645 22,831 30,713 24,446 30,701 23,071 30,829 24,455 Earnings per share - basic $ 0.22 $ 0.19 $ 0.15 $ 0.13 $ 0.39 $ 0.33 $ 0.28 $ 0.22 The computations of diluted net income 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 per share - diluted: Numerator: Allocation of undistributed earnings $ 4,470 $ 3,277 $ 2,542 $ 1,980 $ 5,687 $ 4,216 $ 2,184 $ 1,698 Dividends paid 2,157 1,142 2,152 1,223 6,449 3,445 6,491 3,668 Net income attributable to common shareholders, diluted $ 6,627 $ 4,419 $ 4,694 $ 3,203 $ 12,136 $ 7,661 $ 8,675 $ 5,366 Denominator: Weighted-average common shares outstanding, basic 30,645 22,831 30,713 24,446 30,701 23,071 30,829 24,455 Weighted-average effect of dilutive securities 495 — 677 — 415 — 622 — Weighted-average common shares outstanding, diluted 31,140 22,831 31,390 24,446 31,116 23,071 31,451 24,455 Earnings per share - diluted $ 0.21 $ 0.19 $ 0.15 $ 0.13 $ 0.39 $ 0.33 $ 0.28 $ 0.22 Listed below are the shares excluded from the denominator in the preceding computation of diluted earnings 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 572 1,230 592 1,172 Performance stock grants excluded because performance conditions have not been met (1) 1,094 778 1,041 778 (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 diluted earnings per share until the performance measurements have been achieved. The following table details shares issued during the three and nine months ended September 30, 2019 and September 30, 2018 . These shares are included from their dates of issuance in the weighted-average common shares used to compute basic and diluted 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 7 87 114 CRD-A issued under the Employee Stock Purchase Plan 131 144 131 144 CRD-A issued under the U.K. ShareSave Scheme 14 3 280 57 CRD-A issued under International Plan 4 9 4 9 CRD-A issued under Executive Stock Bonus Plan — — 30 — CRD-A issued under 2016 Omnibus Stock and Incentive Plan 3 — 62 — The Company's share repurchase authorization, approved in July 2017 (the "2017 Repurchase Authorization"), provided the Company with the ability to repurchase up to 2,000,000 shares of CRD-A or CRD-B (or both). The 2017 Repurchase Authorization was terminated on May 8, 2019. Effective May 9, 2019, the Company's Board of Directors authorized the repurchase of up to 2,000,000 shares of CRD-A or CRD-B (or a combination of the two) through December 31, 2020 (the "2019 Repurchase Authorization"). Under the 2019 Repurchase Authorization, repurchases may be made for cash, in the open market or privately negotiated transactions at such times and for such prices as management deems appropriate, subject to applicable contractual and regulatory restrictions. At September 30, 2019 , the Company had remaining authorization to repurchase 1,014,541 shares under the 2019 Repurchase Authorization. During the three months ended September 30, 2019 , the Company repurchased 401,892 shares of CRD-A and 231,137 shares of CRD-B at an average cost of $9.72 and $9.43 , respectively. During the three months ended September 30, 2018 , the Company repurchased 43,190 shares of CRD-A and 10,867 shares of CRD-B at an average cost of $8.86 and $8.87 , respectively. During the nine months ended September 30, 2019 , the Company repurchased 1,103,398 shares of CRD-A and 1,680,377 shares of CRD-B at an average cost of $9.33 and $9.16 , respectively, of which 421,427 shares of CRD-A and 1,376,889 shares of CRD-B were purchased pursuant to a stock purchase agreement authorized by the Board of Directors separate from the 2017 Repurchase Authorization and the 2019 Repurchase Authorization. During the nine months ended September 30, 2018 , the Company repurchased 1,055,148 shares of CRD-A and 64,755 shares of CRD-B at an average cost of $8.30 and $8.95 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 Nine Months Ended September 30, 2019 (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 $ (35,531 ) $ (176,103 ) $ (211,634 ) $ (36,352 ) $ (180,095 ) $ (216,447 ) Other comprehensive loss before reclassifications (2,472 ) — (2,472 ) (1,651 ) — (1,651 ) Amounts reclassified from accumulated other comprehensive income — 1,984 1,984 — 5,976 5,976 Net current period other comprehensive (loss) income (2,472 ) 1,984 (488 ) (1,651 ) 5,976 4,325 Ending balance $ (38,003 ) $ (174,119 ) $ (212,122 ) $ (38,003 ) $ (174,119 ) $ (212,122 ) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (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 $ (25,119 ) $ (166,455 ) $ (191,574 ) $ (26,320 ) $ (170,157 ) $ (196,477 ) Other comprehensive loss before reclassifications (4,279 ) — (4,279 ) (3,078 ) — (3,078 ) Amounts reclassified from accumulated other comprehensive income — 1,833 1,833 — 5,535 5,535 Net current period other comprehensive (loss) income (4,279 ) 1,833 (2,446 ) (3,078 ) 5,535 2,457 Ending balance $ (29,398 ) $ (164,622 ) $ (194,020 ) $ (29,398 ) $ (164,622 ) $ (194,020 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other (Loss) Income, net" 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 presented 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, 2019 | |
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 are categorized using the fair value hierarchy: Fair Value Measurements at September 30, 2019 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) $ 10,031 $ 10,031 $ — $ — Liabilities: Contingent earnout liability (2) 697 — — 697 (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 contingent earnout liability relates to recent business acquisitions by the Crawford Specialty Solutions operating segment. The fair value of the contingent earnout liability was estimated using internally-prepared revenue projections, which is Level 3 data, with the maximum possible earnout of $1,152,000 . As such, the fair value is not expected to vary materially. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of each contingent earnout agreement. Fair Value Disclosures There were no transfers of assets between fair value levels during the three months and nine months ended September 30, 2019 . 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 recorded value approximates fair value. These assets and liabilities are measured within Level 2 of the fair value hierarchy. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Financial information for the three months and nine months ended September 30, 2019 and 2018 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: Crawford Claims Solutions $ 86,250 $ 85,332 $ 255,572 $ 268,888 Crawford TPA Solutions 99,495 100,271 296,807 303,152 Crawford Specialty Solutions 68,932 69,426 206,237 235,137 Total segment revenues before reimbursements 254,677 255,029 758,616 807,177 Reimbursements 11,165 9,834 31,449 41,282 Total revenues $ 265,842 $ 264,863 $ 790,065 $ 848,459 Segment Operating Earnings Crawford Claims Solutions $ 2,661 $ (135 ) $ 4,058 $ 5,110 Crawford TPA Solutions 9,347 8,055 21,106 24,014 Crawford Specialty Solutions 13,301 14,363 38,108 34,423 Total segment operating earnings 25,309 22,283 63,272 63,547 Deduct: Unallocated corporate and shared costs, net (1,649 ) (5,798 ) (2,393 ) (7,316 ) Net corporate interest expense (3,162 ) (2,398 ) (8,346 ) (7,402 ) Stock option expense (450 ) (393 ) (1,348 ) (1,355 ) Amortization of customer-relationship intangible assets (2,829 ) (2,786 ) (8,429 ) (8,342 ) Arbitration and claim settlements (1,200 ) — (12,552 ) — Loss on disposition of business line — (1,201 ) — (18,996 ) Income before income taxes $ 16,019 $ 9,707 $ 30,204 $ 20,136 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 three operating segments and make resource allocation and certain compensation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate segment operating performance using the same criteria used by the Company's senior management and CODM. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represent segment earnings before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, goodwill and intangible asset impairment charges, restructuring and special charges, a rbitration and claim settlements , loss on disposition of business line, income taxes, and net income or loss attributable to noncontrolling interests and redeemable 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 three operating segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process. During the 2019 first quarter, the Company realigned certain operations within Canada from the Crawford Claims Solutions segment to the Crawford Specialty Solutions segment to be consistent with current operating segment responsibilities. Previously reported amounts have been reclassified to reflect these changes. No other changes in operating responsibilities occurred. These transfers are not material to the Company's financial statements. Intersegment transactions are not material for any period presented. The Company has a global service line reporting structure consisting of Crawford Claims Solutions, Crawford TPA Solutions (formerly referred to as "Crawford TPA Solutions: Broadspire") and Crawford Specialty Solutions, which is comprised of the Global Technical Services and Contractor Connection service lines, and the Garden City Group prior to its disposal on June 15, 2018. Revenues before reimbursements by major service line in the Crawford TPA Solutions segment, which trades under the Broadspire brand globally, and the Crawford Specialty Solutions segment are shown in the following table. The Company considers all Crawford Claims Solutions revenues to be derived from one service line. Three Months Ended Nine Months Ended (in thousands) September 30, September 30, September 30, September 30, Crawford TPA Solutions Claims Management Services $ 56,471 $ 57,586 $ 169,116 $ 174,793 Medical Management Services 43,024 42,685 127,691 128,359 Total Revenues before Reimbursements--Crawford TPA Solutions $ 99,495 $ 100,271 $ 296,807 $ 303,152 Crawford Specialty Solutions Global Technical Services $ 45,990 $ 46,201 $ 135,628 $ 135,038 Contractor Connection 22,942 23,225 70,609 70,224 Garden City Group — — — 29,875 Total Revenues before Reimbursements--Crawford Specialty Solutions $ 68,932 $ 69,426 $ 206,237 $ 235,137 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 , the aggregate committed amount of letters of credit outstanding under the credit facility was $11,636,000 . 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. From time to time the Company faces claims and investigations by employees, former employees, and governmental entities under such laws or employment contracts with such employees or former employees. 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. During the three months ended June 30, 2019, the Company recognized an expense in the amount of $11.4 million related to an arbitration panel awarding three of four former executives of the Company's former Garden City Group business unit additional payments associated with their departure from the Garden City Group on December 31, 2015. In August 2019, the Company received a claim from the fourth former executive of the Garden City Group. This claim was settled in October for $1.2 million , which is reflected in the three months ended September 30, 2019 as "Arbitration and claim settlements" on the unaudited Condensed Consolidated Statements of Operations. The total for the nine months ended September 30, 2019 is $12.6 million , and is presented as "Arbitration and claim settlements" on the unaudited Condensed Consolidated Statements of Operations. There are no other potential claimants related to this matter. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges There were no restructuring charges for the three months and nine months ended September 30, 2019 and 2018. As of September 30, 2019 , the following liabilities remained on the Company's unaudited Condensed Consolidated Balance Sheets related to restructuring charges. The rollforward of these liabilities to September 30, 2019 were as follows: Three Months Ended September 30, 2019 (in thousands) Deferred rent Accrued compensation and related costs Other accrued liabilities Total Beginning balance, June 30, 2019 $ — $ 401 $ 486 $ 887 Additions — — — — Adjustments to accruals — — — — Cash payments — (19 ) (8 ) (27 ) Ending balance, September 30, 2019 $ — $ 382 $ 478 $ 860 Nine Months Ended September 30, 2019 (in thousands) Deferred rent Accrued compensation and related costs Other accrued liabilities Total Beginning balance, December 31, 2018 $ 1,302 $ 477 $ 486 $ 2,265 Additions — — — — Adjustments to accruals (1) (1,302 ) — — (1,302 ) Cash payments — (95 ) (8 ) (103 ) Ending balance, September 30, 2019 $ — $ 382 $ 478 $ 860 (1) The deferred rent adjustment relates to the Company's adoption of Topic 842 as of the transition date in which the deferred rent liabilities were reclassed against the right-of-use assets to which the liabilities relate. |
Disposition of Business Line
Disposition of Business Line | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition of Business Line | Disposition of Business Line On June 15, 2018, the Company completed the sale of its GCG Business which was a component of the Crawford Specialty Services segment. The disposal of this business did not represent a strategic shift in the Company's operations. Pretax losses for the GCG Business, inclusive of retained corporate overhead, of $3,932,000 are included in the unaudited Condensed Consolidated Statements of Operations for the nine months ended September 30, 2018. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of accounting | 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. The Company's operating results for the three months and nine months ended and financial position as of September 30, 2019 are not necessarily indicative of the results or financial position that may be expected for the year ending December 31, 2019 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. |
Use of estimates | 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, and 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, 2018 other than as disclosed herein. |
Reclassification | 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. |
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 also 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 |
Consolidation, noncontrolling interests and redeemable noncontrolling interests, policy | Noncontrolling interests represent the minority shareholders' share of the net income or loss and shareholders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the unaudited Condensed Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' investment as "Redeemable Noncontrolling Interests" and are recorded at either their initial fair value plus any profits or losses or estimated redemption value if an adjustment is required. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of New Accounting Standards Financial Accounting for Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, "Financial Accounting for Leases" together with its subsequent related amendments in 2018 and 2019, collectively referred to as Topic 842. Under Topic 842, a lessee is required to recognize assets and liabilities for leases with lease terms of more than 12 months. Topic 842 also requires 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 Company adopted Topic 842 as of January 1, 2019 ("transition date") using the modified retrospective approach and as a result did not adjust the comparative period financial information or make the Topic 842 required lease disclosures for periods before the transition date. The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification, lease term and initial direct costs as well as the practical expedient to choose not to separate nonlease components from lease components and instead account for each as a single lease component for all classes of its assets. As a result of adopting Topic 842, the Company recognized operating lease right-of-use assets of $ 107.3 million and current and noncurrent operating lease liabilities of $ 33.0 million and $ 89.3 million , respectively, and reversed deferred rents of $ 15.0 million on its unaudited Condensed Consolidated Balance Sheets. The adoption of Topic 842 resulted in no material impact to the Company's results of operations or cash flows and did not impact the Company's compliance with the financial covenants under its credit facility. See Note 4, "Lease Commitments" for further discussion on the Company's leases. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This update allows companies to reclassify stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act ("Tax Act"), from accumulated other comprehensive income (loss) to retained earnings. This update is effective for annual periods beginning after December 15, 2018, and interim periods thereafter. The Company adopted this ASU for the period ended March 31, 2019 and elected not to reclassify the income tax effects of the Tax Act from accumulated other comprehensive loss to retained earnings. Pending Adoption of Recently Issued Accounting Standards Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" together with its subsequent related amendments in 2018 and 2019, collectively referred to as Topic 326. Topic 326 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, including trade receivables, with gains and losses recognized through income. The expected credit loss methodology incorporates past experience, current conditions and reasonable and supportable forecasts affecting collectability of these assets. Topic 326 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 plans to adopt Topic 326 on January 1, 2020 using a modified retrospective approach. The Company is currently evaluating the effect Topic 326 may have on its results of operations, financial condition and cash flows. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This update amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, by removing and modifying certain disclosure requirements and adding others. This update removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. This update requires the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, this update clarifies that transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities are required to be disclosed. These updates are effective for annual periods beginning after December 15, 2019, and interim periods thereafter. Early adoption is permitted and early adoption of any removed or modified disclosures upon issuance of this update is permitted while delaying adoption of the additional disclosures until the effective date. The Company is currently evaluating the effect this ASU will have on its Fair Value Measurements disclosure. Compensation-Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)." This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This update removes certain disclosure requirements including, but not limited to, the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the amount and timing of plan assets expected to be returned to the employer. This update requires the disclosure of the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This update also clarifies requirements for entities that provide aggregate disclosures for two or more plans. The update is effective for annual periods beginning after December 15, 2020, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on its Retirement Plans disclosure. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40).” This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. This update also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Further, this update requires the presentation of the expense in the statement of income, the presentation of the costs on the statement of financial position and the classification of payments in the statement of cash flows related to capitalized implementation costs to be treated the same as the fees of the associated hosting arrangement. The update is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on its results of operations, financial condition and cash flows. |
Lease Commitments | The Company determines if an arrangement is a lease at inception. The Company's and its subsidiaries' leases include office space, computer equipment, and automobiles under operating and finance leases. These lease agreements have remaining lease terms of 1 to 11 years . Some of these lease agreements include options to extend the leases for up to 5 years , options to terminate the leases within 1 year , rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company, as sublessor, subleases certain office space which mostly consists of a two-building office complex in Plantation, Florida in which the terms of the primary lease and the related subleases end in December 2021. |
Earnings per 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. During the first three quarters of 2019 and 2018, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents Crawford Specialty Solutions revenues before reimbursements disaggregated by service line and geography for the three months and nine months ended September 30, 2019 : Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 10,202 $ 19,617 $ 29,819 $ 10,003 $ 18,682 $ 28,685 U.K. 11,728 1,263 12,991 11,931 2,034 13,965 Canada 6,294 1,838 8,132 6,117 2,268 8,385 Australia 5,935 222 6,157 6,494 240 6,734 Europe 5,141 2 5,143 5,277 1 5,278 Rest of World 6,690 — 6,690 6,379 — 6,379 Total Crawford Specialty Solutions Revenues before Reimbursements $ 45,990 $ 22,942 $ 68,932 $ 46,201 $ 23,225 $ 69,426 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in thousands) Global Technical Services Contractor Connection Garden City Group Total Global Technical Services Contractor Connection Garden City Group Total U.S. $ 30,888 $ 60,270 $ — $ 91,158 $ 29,607 $ 56,706 $ 28,827 $ 115,140 U.K. 34,444 3,955 — 38,399 34,446 6,308 — 40,754 Canada 19,522 5,773 — 25,295 18,761 6,208 1,048 26,017 Australia 16,881 608 — 17,489 17,833 999 — 18,832 Europe 14,793 3 — 14,796 16,356 3 — 16,359 Rest of World 19,100 — — 19,100 18,035 — — 18,035 Total Crawford Specialty Solutions Revenues before Reimbursements $ 135,628 $ 70,609 $ — $ 206,237 $ 135,038 $ 70,224 $ 29,875 $ 235,137 The following tables present Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the three months and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 37,352 $ 43,024 $ 80,376 $ 37,294 $ 42,685 $ 79,979 U.K. 2,730 — $ 2,730 2,863 — 2,863 Canada 8,210 — 8,210 9,081 — 9,081 Europe and Rest of World 8,179 — 8,179 8,348 — 8,348 Total Crawford TPA Solutions Revenues before Reimbursements $ 56,471 $ 43,024 $ 99,495 $ 57,586 $ 42,685 $ 100,271 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 109,700 $ 127,691 $ 237,391 $ 112,616 $ 128,359 $ 240,975 U.K. 8,243 — $ 8,243 9,387 — 9,387 Canada 25,466 — 25,466 27,580 — 27,580 Europe and Rest of World 25,707 — 25,707 25,210 — 25,210 Total Crawford TPA Solutions Revenues before Reimbursements $ 169,116 $ 127,691 $ 296,807 $ 174,793 $ 128,359 $ 303,152 The following table presents Crawford Claims Solutions revenues before reimbursements disaggregated by geography for the three months and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended (in thousands) September 30, September 30, September 30, September 30, U.S. $ 35,982 $ 34,480 $ 103,743 $ 110,426 U.K. 15,123 15,803 47,325 47,397 Canada 12,008 11,692 36,276 38,857 Australia 11,886 11,739 35,220 33,889 Europe 7,429 7,234 21,265 23,887 Rest of World 3,822 4,384 11,743 14,432 Total Crawford Claims Solutions Revenues before Reimbursements $ 86,250 $ 85,332 $ 255,572 $ 268,888 |
Customer Contract Liabilities | The table below presents the deferred revenues balance as of January 1, 2019 and the significant activity affecting deferred revenues during the nine months ended September 30, 2019 : (In Thousands) Customer Contract Liabilities Deferred Revenue Balance at January 1, 2019 $ 52,673 Quarterly additions 20,790 Revenue recognized from the prior periods (13,871 ) Revenue recognized from current quarter additions (5,485 ) Balance as of March 31, 2019 54,107 Quarterly additions 18,536 Revenue recognized from the prior periods (12,640 ) Revenue recognized from current quarter additions (6,322 ) Balance as of June 30, 2019 53,681 Quarterly additions 20,411 Revenue recognized from the prior periods (16,597 ) Revenue recognized from current quarter additions (4,649 ) Balance as of September 30, 2019 $ 52,846 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | The following table presents the lease-related assets and liabilities recorded on the Company's unaudited Condensed Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet September 30, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 93,610 Liabilities: Current operating lease liabilities Current operating lease liabilities 30,073 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 78,371 Total operating lease liabilities $ 108,444 Weighted-Average Remaining Lease Term 5.43 years Weighted-Average Discount Rate (1) 5.6 % (1) Upon adoption of Topic 842, discount rates used for existing leases were established at the transition date. |
Lease Cost | The components of operating lease costs within the Company's unaudited Condensed Consolidated Statements of Operations consisted of the following for the three months and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 9,298 $ 28,410 Variable lease cost 2,078 5,849 Sublease income 1,114 3,086 Supplemental cash flow information related to operating leases for the three months and nine months ended September 30, 2019 were as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,806 $ 29,220 Right-of-use assets obtained in exchange for lease obligations (1) $ 1,294 $ 13,310 (1) The nine months ended September 30, 2019 amount excludes $ 122.3 million of right-of-use assets recognized upon adoption of Topic 842. |
Operating Lease Maturities | Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows: (in thousands) September 30, 2019 2019 $ 9,398 2020 32,187 2021 25,827 2022 14,876 2023 10,875 Thereafter 33,540 Total undiscounted lease payments 126,703 Less imputed interest (18,259 ) Present value of future lease payments $ 108,444 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of defined benefit plans disclosures | Net periodic cost (benefit) 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, 2019 and 2018 included the following components: Three Months Ended Nine Months Ended (in thousands) September 30, September 30, September 30, September 30, Service cost $ 332 $ 355 $ 1,004 $ 1,099 Interest cost 5,565 5,282 16,763 16,017 Expected return on assets (7,371 ) (8,718 ) (22,214 ) (26,478 ) Amortization of actuarial loss 2,689 2,696 8,073 8,117 Net periodic cost (benefit) $ 1,215 $ (385 ) $ 3,626 $ (1,245 ) |
Net Income Attributable to Sh_2
Net Income Attributable to Shareholders of Crawford & Company per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic | The computations of basic net income 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 per share - basic: Numerator: Allocation of undistributed earnings $ 4,439 $ 3,308 $ 2,518 $ 2,004 $ 5,654 $ 4,249 $ 2,165 $ 1,717 Dividends paid 2,157 1,142 2,152 1,223 6,449 3,445 6,491 3,668 Net income attributable to common shareholders, basic $ 6,596 $ 4,450 $ 4,670 $ 3,227 $ 12,103 $ 7,694 $ 8,656 $ 5,385 Denominator: Weighted-average common shares outstanding, basic 30,645 22,831 30,713 24,446 30,701 23,071 30,829 24,455 Earnings per share - basic $ 0.22 $ 0.19 $ 0.15 $ 0.13 $ 0.39 $ 0.33 $ 0.28 $ 0.22 |
Schedule of earnings per share, diluted | The computations of diluted net income 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 per share - diluted: Numerator: Allocation of undistributed earnings $ 4,470 $ 3,277 $ 2,542 $ 1,980 $ 5,687 $ 4,216 $ 2,184 $ 1,698 Dividends paid 2,157 1,142 2,152 1,223 6,449 3,445 6,491 3,668 Net income attributable to common shareholders, diluted $ 6,627 $ 4,419 $ 4,694 $ 3,203 $ 12,136 $ 7,661 $ 8,675 $ 5,366 Denominator: Weighted-average common shares outstanding, basic 30,645 22,831 30,713 24,446 30,701 23,071 30,829 24,455 Weighted-average effect of dilutive securities 495 — 677 — 415 — 622 — Weighted-average common shares outstanding, diluted 31,140 22,831 31,390 24,446 31,116 23,071 31,451 24,455 Earnings per share - diluted $ 0.21 $ 0.19 $ 0.15 $ 0.13 $ 0.39 $ 0.33 $ 0.28 $ 0.22 |
Schedule of antidilutive securities excluded from computation of earnings per share | Listed below are the shares excluded from the denominator in the preceding computation of diluted earnings 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 572 1,230 592 1,172 Performance stock grants excluded because performance conditions have not been met (1) 1,094 778 1,041 778 (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 diluted earnings per share until the performance measurements have been achieved. |
Schedule of shares issued under stock plans used in weighted average calc | The following table details shares issued during the three and nine months ended September 30, 2019 and September 30, 2018 . These shares are included from their dates of issuance in the weighted-average common shares used to compute basic and diluted 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 7 87 114 CRD-A issued under the Employee Stock Purchase Plan 131 144 131 144 CRD-A issued under the U.K. ShareSave Scheme 14 3 280 57 CRD-A issued under International Plan 4 9 4 9 CRD-A issued under Executive Stock Bonus Plan — — 30 — CRD-A issued under 2016 Omnibus Stock and Incentive Plan 3 — 62 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 Nine Months Ended September 30, 2019 (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 $ (35,531 ) $ (176,103 ) $ (211,634 ) $ (36,352 ) $ (180,095 ) $ (216,447 ) Other comprehensive loss before reclassifications (2,472 ) — (2,472 ) (1,651 ) — (1,651 ) Amounts reclassified from accumulated other comprehensive income — 1,984 1,984 — 5,976 5,976 Net current period other comprehensive (loss) income (2,472 ) 1,984 (488 ) (1,651 ) 5,976 4,325 Ending balance $ (38,003 ) $ (174,119 ) $ (212,122 ) $ (38,003 ) $ (174,119 ) $ (212,122 ) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (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 $ (25,119 ) $ (166,455 ) $ (191,574 ) $ (26,320 ) $ (170,157 ) $ (196,477 ) Other comprehensive loss before reclassifications (4,279 ) — (4,279 ) (3,078 ) — (3,078 ) Amounts reclassified from accumulated other comprehensive income — 1,833 1,833 — 5,535 5,535 Net current period other comprehensive (loss) income (4,279 ) 1,833 (2,446 ) (3,078 ) 5,535 2,457 Ending balance $ (29,398 ) $ (164,622 ) $ (194,020 ) $ (29,398 ) $ (164,622 ) $ (194,020 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other (Loss) Income, net" 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, 2019 | |
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 are categorized using the fair value hierarchy: Fair Value Measurements at September 30, 2019 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) $ 10,031 $ 10,031 $ — $ — Liabilities: Contingent earnout liability (2) 697 — — 697 (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 contingent earnout liability relates to recent business acquisitions by the Crawford Specialty Solutions operating segment. The fair value of the contingent earnout liability was estimated using internally-prepared revenue projections, which is Level 3 data, with the maximum possible earnout of $1,152,000 . As such, the fair value is not expected to vary materially. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of each contingent earnout agreement. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of operating profit from segments to consolidated | Financial information for the three months and nine months ended September 30, 2019 and 2018 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: Crawford Claims Solutions $ 86,250 $ 85,332 $ 255,572 $ 268,888 Crawford TPA Solutions 99,495 100,271 296,807 303,152 Crawford Specialty Solutions 68,932 69,426 206,237 235,137 Total segment revenues before reimbursements 254,677 255,029 758,616 807,177 Reimbursements 11,165 9,834 31,449 41,282 Total revenues $ 265,842 $ 264,863 $ 790,065 $ 848,459 Segment Operating Earnings Crawford Claims Solutions $ 2,661 $ (135 ) $ 4,058 $ 5,110 Crawford TPA Solutions 9,347 8,055 21,106 24,014 Crawford Specialty Solutions 13,301 14,363 38,108 34,423 Total segment operating earnings 25,309 22,283 63,272 63,547 Deduct: Unallocated corporate and shared costs, net (1,649 ) (5,798 ) (2,393 ) (7,316 ) Net corporate interest expense (3,162 ) (2,398 ) (8,346 ) (7,402 ) Stock option expense (450 ) (393 ) (1,348 ) (1,355 ) Amortization of customer-relationship intangible assets (2,829 ) (2,786 ) (8,429 ) (8,342 ) Arbitration and claim settlements (1,200 ) — (12,552 ) — Loss on disposition of business line — (1,201 ) — (18,996 ) Income before income taxes $ 16,019 $ 9,707 $ 30,204 $ 20,136 |
Schedule of revenues by major service line | Revenues before reimbursements by major service line in the Crawford TPA Solutions segment, which trades under the Broadspire brand globally, and the Crawford Specialty Solutions segment are shown in the following table. The Company considers all Crawford Claims Solutions revenues to be derived from one service line. Three Months Ended Nine Months Ended (in thousands) September 30, September 30, September 30, September 30, Crawford TPA Solutions Claims Management Services $ 56,471 $ 57,586 $ 169,116 $ 174,793 Medical Management Services 43,024 42,685 127,691 128,359 Total Revenues before Reimbursements--Crawford TPA Solutions $ 99,495 $ 100,271 $ 296,807 $ 303,152 Crawford Specialty Solutions Global Technical Services $ 45,990 $ 46,201 $ 135,628 $ 135,038 Contractor Connection 22,942 23,225 70,609 70,224 Garden City Group — — — 29,875 Total Revenues before Reimbursements--Crawford Specialty Solutions $ 68,932 $ 69,426 $ 206,237 $ 235,137 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | As of September 30, 2019 , the following liabilities remained on the Company's unaudited Condensed Consolidated Balance Sheets related to restructuring charges. The rollforward of these liabilities to September 30, 2019 were as follows: Three Months Ended September 30, 2019 (in thousands) Deferred rent Accrued compensation and related costs Other accrued liabilities Total Beginning balance, June 30, 2019 $ — $ 401 $ 486 $ 887 Additions — — — — Adjustments to accruals — — — — Cash payments — (19 ) (8 ) (27 ) Ending balance, September 30, 2019 $ — $ 382 $ 478 $ 860 Nine Months Ended September 30, 2019 (in thousands) Deferred rent Accrued compensation and related costs Other accrued liabilities Total Beginning balance, December 31, 2018 $ 1,302 $ 477 $ 486 $ 2,265 Additions — — — — Adjustments to accruals (1) (1,302 ) — — (1,302 ) Cash payments — (95 ) (8 ) (103 ) Ending balance, September 30, 2019 $ — $ 382 $ 478 $ 860 (1) The deferred rent adjustment relates to the Company's adoption of Topic 842 as of the transition date in which the deferred rent liabilities were reclassed against the right-of-use assets to which the liabilities relate. |
Basis of Presentation (VIE) (De
Basis of Presentation (VIE) (Details) - Primary beneficiary - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity | ||
Liabilities of the deferred compensation plan | $ 8,790 | $ 8,914 |
Assets held in the related rabbi trust | $ 16,634 | $ 16,402 |
Basis of Presentation (Acquisit
Basis of Presentation (Acquisition) (Details) - Lloyd Warwick International - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity | ||
Ownership percentage | 51.00% | |
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | $ 10,000 | |
Asset carrying amount | 12,468 | $ 12,232 |
Liability carrying amount | 8,261 | 10,423 |
Principal Owner | ||
Variable Interest Entity | ||
Liability carrying amount | $ 4,217 | $ 6,934 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | $ 93,610 | $ 122,300 | $ 0 | |
Operating lease liabilities | 30,073 | 0 | ||
Operating lease liabilities | $ 78,371 | $ 0 | ||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | 107,300 | |||
Operating lease liabilities | 33,000 | |||
Operating lease liabilities | 89,300 | |||
Deferred rent reversal | $ 15,000 | |||
[1] | Derived from the audited Consolidated Balance Sheet |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Accounts receivable, days sales outstanding | 2 months |
Accounts payable, days payable outstanding | 1 year |
Billing after contract completion, years | 1 year |
Revenue, remaining performance obligation | $ 92 |
Performance obligations to be recognized as revenues within one year, percent | 70.00% |
Revenue from contracts with customers, practical expedient, consideration adjustment period | 1 year |
Minimum | Crawford TPA Solutions | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 1 year |
Maximum | Crawford TPA Solutions | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 2 years |
Claims Management Services | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 1 year |
Percentage of closed cases | 98.00% |
Revenue from contracts with customers, duration, average time to close case from time of referral | 5 years |
Claims Management Services | Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 1 year |
Claims Management Services | Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 2 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation Of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 265,842 | $ 264,863 | $ 790,065 | $ 848,459 |
Crawford Claims Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 86,250 | 85,332 | 255,572 | 268,888 |
Crawford Claims Solutions | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,982 | 34,480 | 103,743 | 110,426 |
Crawford Claims Solutions | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,123 | 15,803 | 47,325 | 47,397 |
Crawford Claims Solutions | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,008 | 11,692 | 36,276 | 38,857 |
Crawford Claims Solutions | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,886 | 11,739 | 35,220 | 33,889 |
Crawford Claims Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,429 | 7,234 | 21,265 | 23,887 |
Crawford Claims Solutions | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,822 | 4,384 | 11,743 | 14,432 |
Crawford TPA Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 99,495 | 100,271 | 296,807 | 303,152 |
Crawford TPA Solutions | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 80,376 | 79,979 | 237,391 | 240,975 |
Crawford TPA Solutions | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,730 | 2,863 | 8,243 | 9,387 |
Crawford TPA Solutions | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,210 | 9,081 | 25,466 | 27,580 |
Crawford TPA Solutions | Europe and Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,179 | 8,348 | 25,707 | 25,210 |
Crawford TPA Solutions | Claims Management Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 56,471 | 57,586 | 169,116 | 174,793 |
Crawford TPA Solutions | Claims Management Services | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 37,352 | 37,294 | 109,700 | 112,616 |
Crawford TPA Solutions | Claims Management Services | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,730 | 2,863 | 8,243 | 9,387 |
Crawford TPA Solutions | Claims Management Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,210 | 9,081 | 25,466 | 27,580 |
Crawford TPA Solutions | Claims Management Services | Europe and Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,179 | 8,348 | 25,707 | 25,210 |
Crawford TPA Solutions | Medical Management Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43,024 | 42,685 | 127,691 | 128,359 |
Crawford TPA Solutions | Medical Management Services | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43,024 | 42,685 | 127,691 | 128,359 |
Crawford TPA Solutions | Medical Management Services | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Crawford TPA Solutions | Medical Management Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Crawford TPA Solutions | Medical Management Services | Europe and Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Crawford Specialty Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68,932 | 69,426 | 206,237 | 235,137 |
Crawford Specialty Solutions | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 29,819 | 28,685 | 91,158 | 115,140 |
Crawford Specialty Solutions | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,991 | 13,965 | 38,399 | 40,754 |
Crawford Specialty Solutions | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,132 | 8,385 | 25,295 | 26,017 |
Crawford Specialty Solutions | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,157 | 6,734 | 17,489 | 18,832 |
Crawford Specialty Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,143 | 5,278 | 14,796 | 16,359 |
Crawford Specialty Solutions | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,690 | 6,379 | 19,100 | 18,035 |
Crawford Specialty Solutions | Global Technical Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 45,990 | 46,201 | 135,628 | 135,038 |
Crawford Specialty Solutions | Global Technical Services | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,202 | 10,003 | 30,888 | 29,607 |
Crawford Specialty Solutions | Global Technical Services | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,728 | 11,931 | 34,444 | 34,446 |
Crawford Specialty Solutions | Global Technical Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,294 | 6,117 | 19,522 | 18,761 |
Crawford Specialty Solutions | Global Technical Services | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,935 | 6,494 | 16,881 | 17,833 |
Crawford Specialty Solutions | Global Technical Services | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,141 | 5,277 | 14,793 | 16,356 |
Crawford Specialty Solutions | Global Technical Services | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,690 | 6,379 | 19,100 | 18,035 |
Crawford Specialty Solutions | Contractor Connection | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,942 | 23,225 | 70,609 | 70,224 |
Crawford Specialty Solutions | Contractor Connection | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 19,617 | 18,682 | 60,270 | 56,706 |
Crawford Specialty Solutions | Contractor Connection | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,263 | 2,034 | 3,955 | 6,308 |
Crawford Specialty Solutions | Contractor Connection | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,838 | 2,268 | 5,773 | 6,208 |
Crawford Specialty Solutions | Contractor Connection | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 222 | 240 | 608 | 999 |
Crawford Specialty Solutions | Contractor Connection | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2 | 1 | 3 | 3 |
Crawford Specialty Solutions | Contractor Connection | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Crawford Specialty Solutions | Garden City Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | 0 | 29,875 |
Crawford Specialty Solutions | Garden City Group | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 28,827 | ||
Crawford Specialty Solutions | Garden City Group | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Crawford Specialty Solutions | Garden City Group | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 1,048 | ||
Crawford Specialty Solutions | Garden City Group | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Crawford Specialty Solutions | Garden City Group | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Crawford Specialty Solutions | Garden City Group | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule Of Customer Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Customer Contract Liabilities | |||
Beginning balance (current and noncurrent) | $ 53,681 | $ 54,107 | $ 52,673 |
Quarterly additions | 20,411 | 18,536 | 20,790 |
Revenue recognized from the prior periods | (16,597) | (12,640) | (13,871) |
Revenue recognized from current quarter additions | (4,649) | (6,322) | (5,485) |
Ending balance (current and noncurrent) | $ 52,846 | $ 53,681 | $ 54,107 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 5 years |
Termination period | 1 year |
Sublease income, remainder of 2019 | $ 1.1 |
Sublease income, 2020 | 4.3 |
Sublease income, 2021 | 4.2 |
Sublease income, 2022 | 0.2 |
Leases not yet commenced | $ 4.5 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Lease term, not yet commenced | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 11 years |
Lease term, not yet commenced | 10 years |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] |
Leases [Abstract] | ||||
Operating lease right-of-use assets, net | $ 93,610 | $ 122,300 | $ 0 | |
Current operating lease liabilities | 30,073 | 0 | ||
Noncurrent operating lease liabilities | 78,371 | $ 0 | ||
Total operating lease liabilities | $ 108,444 | |||
Weighted-Average Remaining Lease Term | 5 years 5 months 5 days | |||
Weighted-Average Discount Rate | 5.60% | |||
[1] | Derived from the audited Consolidated Balance Sheet |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 9,298 | $ 28,410 |
Variable lease cost | 2,078 | 5,849 |
Sublease income | $ 1,114 | $ 3,086 |
Lease Commitments - Supplemen_2
Lease Commitments - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] | |
Leases [Abstract] | |||||
Operating cash flows for operating leases | $ 9,806 | $ 29,220 | |||
Right-of-use assets obtained in exchange for lease obligations | 1,294 | 13,310 | |||
Operating lease right-of-use assets, net | $ 93,610 | $ 93,610 | $ 122,300 | $ 0 | |
[1] | Derived from the audited Consolidated Balance Sheet |
Lease Commitments - Lease Matur
Lease Commitments - Lease Maturities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 9,398 |
2020 | 32,187 |
2021 | 25,827 |
2022 | 14,876 |
2023 | 10,875 |
Thereafter | 33,540 |
Total undiscounted lease payments | 126,703 |
Less imputed interest | (18,259) |
Present value of future lease payments | $ 108,444 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 5,328 | $ 1,828 | $ 11,120 | $ 6,255 |
Effective income tax rate reconciliation, percent | 36.80% | 31.10% | ||
Contributions by employer | $ 10,000 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans (Defined Benefit Plans) (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 332 | $ 355 | $ 1,004 | $ 1,099 |
Interest cost | 5,565 | 5,282 | 16,763 | 16,017 |
Expected return on assets | (7,371) | (8,718) | (22,214) | (26,478) |
Amortization of actuarial loss | 2,689 | 2,696 | 8,073 | 8,117 |
Net periodic cost (benefit) | $ 1,215 | $ (385) | $ 3,626 | $ (1,245) |
Defined Benefit Pension Plans_3
Defined Benefit Pension Plans (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | $ 10,000,000 | |||
Accounting Standard Update 2017-07 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost, non-service cost | $ 883,000 | $ 740,000 | 2,622,000 | $ 2,344,000 |
Domestic Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | 0 | 19,000,000 | ||
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | $ 527,000 | $ 4,168,000 |
Net Income Attributable to Sh_3
Net Income 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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class A Non-Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 4,439 | $ 2,518 | $ 5,654 | $ 2,165 |
Dividends paid | 2,157 | 2,152 | 6,449 | 6,491 |
Net income attributable to common shareholders, basic | $ 6,596 | $ 4,670 | $ 12,103 | $ 8,656 |
Denominator: | ||||
Weighted-average common shares outstanding, basic (shares) | 30,645 | 30,713 | 30,701 | 30,829 |
Earnings per share - basic (usd per share) | $ 0.22 | $ 0.15 | $ 0.39 | $ 0.28 |
Class B Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 3,308 | $ 2,004 | $ 4,249 | $ 1,717 |
Dividends paid | 1,142 | 1,223 | 3,445 | 3,668 |
Net income attributable to common shareholders, basic | $ 4,450 | $ 3,227 | $ 7,694 | $ 5,385 |
Denominator: | ||||
Weighted-average common shares outstanding, basic (shares) | 22,831 | 24,446 | 23,071 | 24,455 |
Earnings per share - basic (usd per share) | $ 0.19 | $ 0.13 | $ 0.33 | $ 0.22 |
Net Income Attributable to Sh_4
Net Income 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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class A Non-Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 4,470 | $ 2,542 | $ 5,687 | $ 2,184 |
Dividends paid | 2,157 | 2,152 | 6,449 | 6,491 |
Net income attributable to common shareholders, diluted | $ 6,627 | $ 4,694 | $ 12,136 | $ 8,675 |
Denominator: | ||||
Weighted-average common shares outstanding, basic (shares) | 30,645 | 30,713 | 30,701 | 30,829 |
Weighted-average number of dilutive securities (shares) | 495 | 677 | 415 | 622 |
Weighted-average common shares outstanding, diluted (shares) | 31,140 | 31,390 | 31,116 | 31,451 |
Earnings per share - diluted (usd per share) | $ 0.21 | $ 0.15 | $ 0.39 | $ 0.28 |
Class B Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 3,277 | $ 1,980 | $ 4,216 | $ 1,698 |
Dividends paid | 1,142 | 1,223 | 3,445 | 3,668 |
Net income attributable to common shareholders, diluted | $ 4,419 | $ 3,203 | $ 7,661 | $ 5,366 |
Denominator: | ||||
Weighted-average common shares outstanding, basic (shares) | 22,831 | 24,446 | 23,071 | 24,455 |
Weighted-average number of dilutive securities (shares) | 0 | 0 | 0 | 0 |
Weighted-average common shares outstanding, diluted (shares) | 22,831 | 24,446 | 23,071 | 24,455 |
Earnings per share - diluted (usd per share) | $ 0.19 | $ 0.13 | $ 0.33 | $ 0.22 |
Net Income Attributable to Sh_5
Net Income Attributable to Shareholders of Crawford & Company per Common Share (Antidilutive Securities) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Shares underlying stock options excluded | ||||
Antidilutive Securities Excluded from Computation of (Loss) Earnings Per Share | ||||
Shares excluded from diluted earnings per share (shares) | 572 | 1,230 | 592 | 1,172 |
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) | 1,094 | 778 | 1,041 | 778 |
Net Income Attributable to Sh_6
Net Income Attributable to Shareholders of Crawford & Company per Common Share (Weighted Average Shares Issued) (Details) - Class A Non-Voting - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CRD-A issued under Non-Employee Director Stock Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 2 | 7 | 87 | 114 |
CRD-A issued under the Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 131 | 144 | 131 | 144 |
CRD-A issued under the U.K. ShareSave Scheme | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 14 | 3 | 280 | 57 |
CRD-A issued under International Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 4 | 9 | 4 | 9 |
CRD-A issued under Executive Stock Bonus Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 0 | 0 | 30 | 0 |
CRD-A issued under 2016 Omnibus Stock and Incentive Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period (shares) | 3 | 0 | 62 | 0 |
Net Income Attributable to Sh_7
Net Income Attributable to Shareholders of Crawford & Company per Common Share (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | May 09, 2019 | Jul. 29, 2017 | |
Class A Non-Voting | |||||
Equity, Class of Treasury Stock | |||||
Shares repurchased (shares) | 401,892 | 1,103,398 | 43,190 | ||
Average cost (usd per share) | $ 9.72 | $ 9.33 | $ 8.86 | ||
Class B Voting | |||||
Equity, Class of Treasury Stock | |||||
Shares repurchased (shares) | 231,137 | 1,680,377 | 10,867 | ||
Average cost (usd per share) | $ 9.43 | $ 9.16 | $ 8.87 | ||
Repurchase Authorization 2017 | Common Stock | |||||
Equity, Class of Treasury Stock | |||||
Number of shares authorized to be repurchased (shares) | 2,000,000 | 2,000,000 | |||
Number of shares remaining to be repurchased (shares) | 1,014,541 | 1,014,541 | |||
Stock Purchase Agreement | Class A Non-Voting | |||||
Equity, Class of Treasury Stock | |||||
Shares repurchased (shares) | 421,427 | ||||
Stock Purchase Agreement | Class B Voting | |||||
Equity, Class of Treasury Stock | |||||
Shares repurchased (shares) | 1,376,889 | ||||
Separate Repurchase Authorization | Class A Non-Voting | |||||
Equity, Class of Treasury Stock | |||||
Shares repurchased (shares) | 1,055,148 | ||||
Average cost (usd per share) | $ 8.30 | ||||
Separate Repurchase Authorization | Class B Voting | |||||
Equity, Class of Treasury Stock | |||||
Shares repurchased (shares) | 64,755 | ||||
Average cost (usd per share) | $ 8.95 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Rollforward of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | |||||
Beginning balance | $ 164,399 | $ 187,209 | $ 175,446 | [1] | $ 186,964 |
Other comprehensive loss before reclassifications | (2,472) | (4,279) | (1,651) | (3,078) | |
Amounts reclassified from accumulated other comprehensive income | 1,984 | 1,833 | 5,976 | 5,535 | |
Net current period other comprehensive (loss) income | (488) | (2,446) | 4,325 | 2,457 | |
Ending balance | 167,033 | 190,720 | 167,033 | 190,720 | |
AOCL attributable to shareholders of Crawford & Company | |||||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | |||||
Beginning balance | (211,634) | (191,574) | (216,447) | (196,477) | |
Ending balance | (212,122) | (194,020) | (212,122) | (194,020) | |
Foreign currency translation adjustments | |||||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | |||||
Beginning balance | (35,531) | (25,119) | (36,352) | (26,320) | |
Other comprehensive loss before reclassifications | (2,472) | (4,279) | (1,651) | (3,078) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | |
Net current period other comprehensive (loss) income | (2,472) | (4,279) | (1,651) | (3,078) | |
Ending balance | (38,003) | (29,398) | (38,003) | (29,398) | |
Retirement liabilities | |||||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | |||||
Beginning balance | (176,103) | (166,455) | (180,095) | (170,157) | |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | 1,984 | 1,833 | 5,976 | 5,535 | |
Net current period other comprehensive (loss) income | 1,984 | 1,833 | 5,976 | 5,535 | |
Ending balance | $ (174,119) | $ (164,622) | $ (174,119) | $ (164,622) | |
[1] | Derived from the audited Consolidated Balance Sheet |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Liabilities: | |
Debt instrument, variable interest rate duration between resets | 90 days |
Cash and cash equivalents | |
Assets: | |
Money market funds | $ 10,031 |
Cash and cash equivalents | Quoted Prices in Active Markets (Level 1) | |
Assets: | |
Money market funds | 10,031 |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | |
Assets: | |
Money market funds | 0 |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | |
Assets: | |
Money market funds | 0 |
Other Noncurrent Liabilities | |
Liabilities: | |
Contingent earnout liability | 697 |
Other Noncurrent Liabilities | Quoted Prices in Active Markets (Level 1) | |
Liabilities: | |
Contingent earnout liability | 0 |
Other Noncurrent Liabilities | Significant Other Observable Inputs (Level 2) | |
Liabilities: | |
Contingent earnout liability | 0 |
Other Noncurrent Liabilities | Significant Unobservable Inputs (Level 3) | |
Liabilities: | |
Contingent earnout liability | 697 |
Maximum | |
Liabilities: | |
Contingent earnout liability | $ 1,152 |
Segment Information (Reportable
Segment Information (Reportable Segments) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | $ 265,842 | $ 264,863 | $ 790,065 | $ 848,459 | |
Net corporate interest expense | (3,162) | (2,398) | (8,346) | (7,402) | |
Arbitration and claim settlements | (1,200) | $ (11,400) | 0 | (12,552) | 0 |
Loss on disposition of business line | 0 | (1,201) | 0 | (18,996) | |
Income Before Income Taxes | 16,019 | 9,707 | $ 30,204 | 20,136 | |
Number of operating segments (segments) | segment | 3 | ||||
Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Total segment operating earnings | 25,309 | 22,283 | $ 63,272 | 63,547 | |
Segment Reconciling Items | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Unallocated corporate and shared costs, net | (1,649) | (5,798) | (2,393) | (7,316) | |
Net corporate interest expense | (3,162) | (2,398) | (8,346) | (7,402) | |
Stock option expense | (450) | (393) | (1,348) | (1,355) | |
Amortization of customer-relationship intangible assets | (2,829) | (2,786) | (8,429) | (8,342) | |
Arbitration and claim settlements | (1,200) | 0 | (12,552) | 0 | |
Loss on disposition of business line | 0 | (1,201) | 0 | (18,996) | |
Crawford Claims Solutions | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Total segment operating earnings | 2,661 | (135) | 4,058 | 5,110 | |
Crawford TPA Solutions | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 99,495 | 100,271 | 296,807 | 303,152 | |
Crawford TPA Solutions | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Total segment operating earnings | 9,347 | 8,055 | 21,106 | 24,014 | |
Crawford Specialty Solutions | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 68,932 | 69,426 | 206,237 | 235,137 | |
Crawford Specialty Solutions | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Total segment operating earnings | 13,301 | 14,363 | 38,108 | 34,423 | |
Service | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 254,677 | 255,029 | 758,616 | 807,177 | |
Service | Crawford Claims Solutions | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 86,250 | 85,332 | 255,572 | 268,888 | |
Service | Crawford TPA Solutions | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 99,495 | 100,271 | 296,807 | 303,152 | |
Service | Crawford TPA Solutions | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 99,495 | 100,271 | 296,807 | 303,152 | |
Service | Crawford Specialty Solutions | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 68,932 | 69,426 | 206,237 | 235,137 | |
Service | Crawford Specialty Solutions | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 68,932 | 69,426 | 206,237 | 235,137 | |
Reimbursements | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | $ 11,165 | $ 9,834 | $ 31,449 | $ 41,282 |
Segment Information (Revenues B
Segment Information (Revenues By Major Service Line) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from External Customer | ||||
Revenues | $ 265,842 | $ 264,863 | $ 790,065 | $ 848,459 |
Crawford TPA Solutions | ||||
Revenue from External Customer | ||||
Revenues | 99,495 | 100,271 | 296,807 | 303,152 |
Crawford Specialty Solutions | ||||
Revenue from External Customer | ||||
Revenues | 68,932 | 69,426 | 206,237 | 235,137 |
Service | ||||
Revenue from External Customer | ||||
Revenues | 254,677 | 255,029 | 758,616 | 807,177 |
Service | Crawford TPA Solutions | ||||
Revenue from External Customer | ||||
Revenues | 99,495 | 100,271 | 296,807 | 303,152 |
Service | Crawford Specialty Solutions | ||||
Revenue from External Customer | ||||
Revenues | 68,932 | 69,426 | 206,237 | 235,137 |
Claims Management Services | Crawford TPA Solutions | ||||
Revenue from External Customer | ||||
Revenues | 56,471 | 57,586 | 169,116 | 174,793 |
Medical Management Services | Crawford TPA Solutions | ||||
Revenue from External Customer | ||||
Revenues | 43,024 | 42,685 | 127,691 | 128,359 |
Global Technical Services | Crawford Specialty Solutions | ||||
Revenue from External Customer | ||||
Revenues | 45,990 | 46,201 | 135,628 | 135,038 |
Contractor Connection | Crawford Specialty Solutions | ||||
Revenue from External Customer | ||||
Revenues | 22,942 | 23,225 | 70,609 | 70,224 |
Garden City Group | Crawford Specialty Solutions | ||||
Revenue from External Customer | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 29,875 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Loss Contingencies | |||||
Arbitration and claim settlements | $ 1,200 | $ 11,400 | $ 0 | $ 12,552 | $ 0 |
Letter of Credit | |||||
Loss Contingencies | |||||
Letters of credit outstanding amount | $ 11,636 | $ 11,636 |
Restructuring Charges (Special
Restructuring Charges (Special and Restructuring Charges) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring and Special Charges | ||||
Restructuring charges | $ 0 | $ 0 | ||
Segment Reconciling Items | ||||
Restructuring and Special Charges | ||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring Charges (Rollforw
Restructuring Charges (Rollforward of Accrued Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 887 | $ 2,265 |
Additions | 0 | 0 |
Adjustments to accruals | 0 | (1,302) |
Cash payments | (27) | (103) |
Ending balance | 860 | 860 |
Deferred rent | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | 1,302 |
Additions | 0 | 0 |
Adjustments to accruals | 0 | (1,302) |
Cash payments | 0 | 0 |
Ending balance | 0 | 0 |
Accrued compensation and related costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 401 | 477 |
Additions | 0 | 0 |
Adjustments to accruals | 0 | 0 |
Cash payments | (19) | (95) |
Ending balance | 382 | 382 |
Other accrued liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 486 | 486 |
Additions | 0 | 0 |
Adjustments to accruals | 0 | 0 |
Cash payments | (8) | (8) |
Ending balance | $ 478 | $ 478 |
Disposition of Business Line -
Disposition of Business Line - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on disposition of business line | $ 0 | $ (18,996) |
Garden City Group | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on disposition of business line | $ 3,932 |