Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 28, 2020 | |
Document Information | ||
Entity Registrant Name | CRAWFORD & CO | |
Entity Central Index Key | 0000025475 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | 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 | 30,518,579 | |
Class B Voting | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 22,510,144 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Revenues | $ 246,046 | $ 256,377 |
Costs and Expenses: | ||
Cost of services | 186,119 | 187,207 |
Selling, general, and administrative expenses | 55,754 | 58,659 |
Corporate interest expense, net of interest income of $111 and $350, respectively | 2,224 | 2,716 |
Goodwill impairment | 17,674 | 0 |
Restructuring costs | 5,714 | 0 |
Total Costs and Expenses | 267,485 | 248,582 |
Other (Expense) Income, net | (206) | 907 |
(Loss) Income Before Income Taxes | (21,645) | 8,702 |
(Benefit) Provision for Income Taxes | (8,486) | 2,933 |
Net (Loss) Income | (13,159) | 5,769 |
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests | 1,760 | 340 |
Net (Loss) Income Attributable to Shareholders of Crawford & Company | $ (11,399) | $ 6,109 |
Class A Non-Voting | ||
(Loss) Earnings Per Share - Basic: | ||
Earnings per share - basic (usd per share) | $ (0.21) | $ 0.12 |
(Loss) Earnings Per Share - Diluted: | ||
Earnings per share - diluted (usd per share) | $ (0.21) | $ 0.12 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||
Weighted-average common shares outstanding, basic (shares) | 30,562 | 30,658 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||
Weighted-average common shares outstanding, diluted (shares) | 30,562 | 31,106 |
Class B Voting | ||
(Loss) Earnings Per Share - Basic: | ||
Earnings per share - basic (usd per share) | $ (0.23) | $ 0.10 |
(Loss) Earnings Per Share - Diluted: | ||
Earnings per share - diluted (usd per share) | $ (0.23) | $ 0.10 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||
Weighted-average common shares outstanding, basic (shares) | 22,578 | 23,367 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||
Weighted-average common shares outstanding, diluted (shares) | 22,578 | 23,367 |
Service | ||
Revenues: | ||
Revenues | $ 237,531 | $ 247,058 |
Costs and Expenses: | ||
Cost of services | 177,604 | 177,888 |
Reimbursements | ||
Revenues: | ||
Revenues | 8,515 | 9,319 |
Costs and Expenses: | ||
Cost of services | $ 8,515 | $ 9,319 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Interest income | $ 111 | $ 350 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive (Loss) Income Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net (Loss) Income | $ (13,159) | $ 5,769 |
Other Comprehensive (Loss) Income: | ||
Net foreign currency translation (loss) gain, net of tax of $0 and $0, respectively | (3,472) | 3,046 |
Amortization of actuarial losses for retirement plans included in net periodic pension cost, net of tax of $651 and $690, respectively | 1,928 | 2,011 |
Other Comprehensive (Loss) Income | (1,544) | 5,057 |
Comprehensive (Loss) Income | (14,703) | 10,826 |
Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | 1,759 | 356 |
Comprehensive (Loss) Income Attributable to Shareholders of Crawford & Company | $ (12,944) | $ 11,182 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive (Loss) Income Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
OCI, Tax on foreign currency translation gains (losses) | $ 0 | $ 0 |
OCI, Tax on amortization of actuarial losses on retirement plans included in net periodic pension cost | $ 651 | $ 690 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets Unaudited - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Current Assets: | |||
Cash and cash equivalents | $ 83,110 | $ 51,802 | [1] |
Accounts receivable, less allowance for doubtful accounts of $9,374 and $9,348, respectively | 121,230 | 128,217 | [1] |
Unbilled revenues, at estimated billable amounts | 108,898 | 103,894 | [1] |
Income taxes receivable | 13,289 | 7,820 | [1] |
Prepaid expenses and other current assets | 23,470 | 23,476 | [1] |
Total Current Assets | 349,997 | 315,209 | [1] |
Net Property and Equipment | 30,680 | 31,425 | [1] |
Other Assets: | |||
Operating lease right-of-use assets, net | 108,974 | 102,354 | [1] |
Goodwill | 62,883 | 80,642 | [1] |
Intangible assets arising from business acquisitions, net | 72,625 | 75,083 | [1] |
Capitalized software costs, net | 65,850 | 66,445 | [1] |
Deferred income tax assets | 19,221 | 17,971 | [1] |
Other noncurrent assets | 71,442 | 70,884 | [1] |
Total Other Assets | 400,995 | 413,379 | [1] |
TOTAL ASSETS | 781,672 | 760,013 | [1] |
Current Liabilities: | |||
Short-term borrowings | 39,784 | 28,531 | [1] |
Accounts payable | 33,335 | 34,377 | [1] |
Accrued compensation and related costs | 58,140 | 68,499 | [1] |
Self-insured risks | 10,594 | 11,311 | [1] |
Income taxes payable | 0 | 3,030 | [1] |
Operating lease liabilities | 29,277 | 30,765 | [1] |
Other accrued liabilities | 35,948 | 31,449 | [1] |
Deferred revenues | 31,265 | 28,288 | [1] |
Current installments of finance leases | 38 | 15 | [1] |
Total Current Liabilities | 238,381 | 236,265 | [1] |
Noncurrent Liabilities: | |||
Long-term debt and finance leases, less current installments | 187,271 | 148,408 | [1] |
Operating lease liabilities | 95,522 | 87,064 | |
Deferred revenues | 24,042 | 24,080 | [1] |
Accrued pension liabilities | 60,548 | 65,909 | [1] |
Other noncurrent liabilities | 31,677 | 33,410 | [1] |
Total Noncurrent Liabilities | 399,060 | 358,871 | [1] |
Redeemable Noncontrolling Interests | 430 | 2,310 | [1] |
Shareholders' Investment: | |||
Additional paid-in capital | 63,949 | 63,392 | [1] |
Retained earnings | 231,927 | 249,551 | [1] |
Accumulated other comprehensive loss | (207,876) | (206,907) | [1] |
Shareholders' Investment Attributable to Shareholders of Crawford & Company | 141,029 | 159,317 | [1] |
Noncontrolling interests | 2,772 | 3,250 | [1] |
Total Shareholders' Investment | 143,801 | 162,567 | [1] |
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 781,672 | 760,013 | [1] |
Class A Non-Voting | |||
Shareholders' Investment: | |||
Common stock outstanding, value | 30,519 | 30,610 | [1] |
Class B Voting | |||
Shareholders' Investment: | |||
Common stock outstanding, value | $ 22,510 | $ 22,671 | [1] |
[1] | Derived from the audited Consolidated Balance Sheet |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Unaudited (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | [1] |
Current Assets: | |||
Allowance for doubtful accounts | $ 9,374 | $ 9,348 | |
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) | 30,519,000 | 30,610,000 | |
Shares outstanding (shares) | 30,519,000 | 30,610,000 | |
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) | 22,510,000 | 22,671,000 | |
Shares outstanding (shares) | 22,510,000 | 22,671,000 | |
[1] | Derived from the audited Consolidated Balance Sheet. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows Unaudited - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities: | |||
Net (loss) income | $ (13,159) | $ 5,769 | |
Reconciliation of net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 10,060 | 9,624 | |
Goodwill impairment | 17,674 | 0 | |
Stock-based compensation | 880 | (247) | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 6,084 | 1,571 | |
Unbilled revenues, net | (7,240) | (8,361) | |
Accrued or prepaid income taxes | (10,355) | 1,922 | |
Accounts payable and accrued liabilities | (4,617) | (8,257) | |
Deferred revenues | 2,898 | 1,578 | |
Accrued retirement costs | (8,638) | (3,393) | |
Prepaid expenses and other operating activities | (1,565) | 317 | |
Net cash (used in) provided by operating activities | (7,978) | 523 | |
Cash Flows From Investing Activities: | |||
Acquisitions of property and equipment | (2,708) | (1,737) | |
Capitalization of computer software costs | (4,803) | (1,605) | |
Net cash used in investing activities | (7,511) | (3,342) | |
Cash Flows From Financing Activities: | |||
Cash dividends paid | (3,268) | (3,282) | |
Proceeds (payments) from shares purchased under employee stock-based compensation plans | 10 | ||
Proceeds (payments) from shares purchased under employee stock-based compensation plans | (110) | ||
Repurchases of common stock | (2,666) | (16,418) | |
Increases in revolving credit facility borrowings | 65,179 | 30,385 | |
Payments on revolving credit facility borrowings | (11,910) | (11,578) | |
Increases in finance lease obligations | 138 | 0 | |
Payments on finance lease obligations | (2) | (54) | |
Acquisition of noncontrolling interests | (292) | $ 0 | |
Dividends paid to noncontrolling interests | 0 | (84) | |
Net cash provided by (used in) financing activities | 47,189 | (1,141) | |
Effects of exchange rate changes on cash and cash equivalents | (392) | 515 | |
Increase (decrease) in cash and cash equivalents | 31,308 | (3,445) | |
Cash and cash equivalents at beginning of year | 51,802 | 53,119 | |
Cash and cash equivalents at end of period | $ 83,110 | $ 49,674 | $ 53,119 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Shareholders' Investment Unaudited - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 162,567 | [1] | $ 175,446 | ||
Net income (loss) | (11,279) | [2] | 6,146 | [3] | |
Other comprehensive income (loss) | (1,544) | 5,057 | |||
Cash dividends paid | (3,268) | (3,282) | |||
Stock-based compensation | 880 | (247) | |||
Repurchases of common stock | (2,666) | (16,418) | |||
Shares issued in connection with stock-based compensation plans, net | 10 | (110) | |||
Increase in value of noncontrolling interest due to acquisition | (292) | ||||
Adoption of Topic 326 | $ (607) | ||||
Dividends paid to noncontrolling interests | (84) | ||||
Ending balance | 143,801 | 166,508 | |||
Shareholders' Investment Attributable to Shareholders of Crawford & Company | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 159,317 | 171,288 | |||
Net income (loss) | (11,399) | [2] | 6,109 | [3] | |
Other comprehensive income (loss) | (1,545) | 5,073 | |||
Cash dividends paid | (3,268) | (3,282) | |||
Stock-based compensation | 880 | (247) | |||
Repurchases of common stock | (2,666) | (16,418) | |||
Shares issued in connection with stock-based compensation plans, net | 10 | (110) | |||
Increase in value of noncontrolling interest due to acquisition | 307 | ||||
Adoption of Topic 326 | (607) | ||||
Ending balance | 141,029 | 162,413 | |||
Additional Paid-In Capital | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 63,392 | 58,793 | |||
Stock-based compensation | 880 | (247) | |||
Shares issued in connection with stock-based compensation plans, net | (54) | (225) | |||
Increase in value of noncontrolling interest due to acquisition | (269) | ||||
Ending balance | 63,949 | 58,321 | |||
Retained Earnings | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 249,551 | 273,607 | |||
Net income (loss) | (11,399) | [2] | 6,109 | [3] | |
Cash dividends paid | (3,268) | (3,282) | |||
Repurchases of common stock | (2,350) | (14,620) | |||
Adoption of Topic 326 | $ (607) | ||||
Ending balance | 231,927 | 261,814 | |||
AOCL attributable to shareholders of Crawford & Company | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | (206,907) | (216,447) | |||
Other comprehensive income (loss) | (1,545) | 5,073 | |||
Increase in value of noncontrolling interest due to acquisition | 576 | ||||
Ending balance | (207,876) | (211,374) | |||
Noncontrolling Interests | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 3,250 | 4,158 | |||
Net income (loss) | 120 | [2] | 37 | [3] | |
Other comprehensive income (loss) | 1 | (16) | |||
Increase in value of noncontrolling interest due to acquisition | (599) | ||||
Dividends paid to noncontrolling interests | (84) | ||||
Ending balance | 2,772 | 4,095 | |||
Class A Non-Voting | Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 30,610 | 30,927 | |||
Repurchases of common stock | (155) | (421) | |||
Shares issued in connection with stock-based compensation plans, net | 64 | 115 | |||
Ending balance | 30,519 | 30,621 | |||
Class B Voting | Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 22,671 | 24,408 | |||
Repurchases of common stock | (161) | (1,377) | |||
Ending balance | $ 22,510 | $ 23,031 | |||
[1] | Derived from the audited Consolidated Balance Sheet | ||||
[2] | The total net loss presented in the condensed consolidated statements of shareholders' investment for the three months ended March 31, 2020 excludes $1,880 in net loss attributable to the redeemable noncontrolling interests. | ||||
[3] | The total net income presented in the condensed consolidated statements of shareholders' investment for the three months ended March 31, 2019 excludes $377 in net loss attributable to the redeemable noncontrolling interests. |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Shareholders' Investment Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Net income (loss) attributable to redeemable noncontrolling interest | $ 1,880 | $ 377 |
Class A Non-Voting | ||
Class of Stock [Line Items] | ||
Cash dividends paid (in dollars per share) | $ 0.07 | $ 0.07 |
Class B Voting | ||
Class of Stock [Line Items] | ||
Cash dividends paid (in dollars per share) | $ 0.05 | $ 0.05 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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. Due to the impact of weather activity and the economic contraction resulting from the COVID-19 pandemic, the Company's operating results for the three months ended and financial position as of March 31, 2020 are not necessarily indicative of the results or financial position that may be expected for the year ending December 31, 2020 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, 2019 other than as disclosed herein. The Company recognized a goodwill impairment in the 2020 first quarter within its Crawford Claims Solutions segment, due to lower forecasts in that reporting unit, and the overall decline in market conditions from the COVID-19 pandemic. See Note 9, "Fair Value Measurements" of our accompanying consolidated financial statements for further discussion about goodwill impairment. 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, 2019 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, 2019 . 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 March 31, 2020 and December 31, 2019 , the liabilities of the deferred compensation plan were $8,462,000 and $8,428,000 , 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 $16,414,000 and $16,527,000 , 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 March 31, 2020 were $14,979,000 and $8,528,000 , respectively. Total assets and liabilities of LWI as of December 31, 2019 were $14,686,000 and $9,176,000 , respectively. Included in LWI's total liabilities is a loan from Crawford of $4,284,000 as of March 31, 2020 and December 31, 2019 . 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 | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of New 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 Company estimates its expected credit losses based on past experience, current conditions and reasonable and supportable forecasts affecting collectability of these assets. We evaluate the risks related to our trade receivables and contract assets by considering customer type, geography, and aging. Topic 326 is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted Topic 326 on January 1, 2020 using a modified retrospective approach. As a result of adopting Topic 326, the Company recognized a cumulative effect adjustment to decrease the opening balance of retained earnings by $607,000 . The Company has included assumptions related to expected credit losses from the impact of the COVID-19 pandemic in its results of operations for the quarter ended March 31, 2020. 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. The Company adopted this guidance on January 1, 2020 with no impact on its results of operation, financial condition and cash flows. 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 amortization expense in the statement of income, the presentation of the capitalized costs on the statement of financial position and the classification of payments for capitalized costs in the statement of cash flows related to capitalized implementation costs to be treated the same as the fees for service component of the associated hosting arrangement. The update is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on its results of operation, financial condition and cash flows. Pending Adoption of Recently Issued Accounting Standards 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. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 amends ASC 740 to simplify the accounting for income taxes by removing certain exceptions for foreign equity investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in the accounting standard under the FASB’s simplification initiative. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Upon adoption, the amendments in ASU 2019-12 should be applied on a prospective basis to all periods presented. Early adoption is permitted. The Company is currently assessing the impact of the adoption of the new guidance. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 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 ended March 31, 2020 and 2019 : Three Months Ended (in thousands) March 31, March 31, U.S. $ 31,428 $ 33,936 U.K. 15,345 16,371 Canada 10,139 12,121 Australia 9,945 10,519 Europe 6,961 6,465 Rest of World 3,769 3,907 Total Crawford Claims Solutions Revenues before Reimbursements $ 77,587 $ 83,319 The Crawford TPA Solutions segment 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 ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 36,024 $ 42,069 $ 78,093 $ 36,313 $ 40,883 $ 77,196 U.K. 2,865 — 2,865 2,530 — 2,530 Canada 7,463 — 7,463 9,372 — 9,372 Europe and Rest of World 8,514 — 8,514 8,696 — 8,696 Total Crawford TPA Solutions Revenues before Reimbursements $ 54,866 $ 42,069 $ 96,935 $ 56,911 $ 40,883 $ 97,794 The Company's Crawford Specialty Solutions segment principally generates revenues through its Global Technical Services and Contractor Connection service lines. 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 ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 9,601 $ 15,326 $ 24,927 $ 10,271 $ 18,187 $ 28,458 U.K. 12,015 2,157 14,172 11,157 1,531 12,688 Canada 6,137 1,481 7,618 6,711 1,680 8,391 Australia 4,848 130 4,978 5,143 174 5,317 Europe 5,152 7 5,159 4,759 — 4,759 Rest of World 6,155 — 6,155 6,332 — 6,332 Total Crawford Specialty Solutions Revenues before Reimbursements $ 43,908 $ 19,101 $ 63,009 $ 44,373 $ 21,572 $ 65,945 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, 2020 and the significant activity affecting deferred revenues during the three months ended March 31, 2020: (In Thousands) Customer Contract Liabilities Deferred Revenue Balance at January 1, 2020 $ 52,368 Quarterly additions 22,226 Revenue recognized from the prior periods (14,293 ) Revenue recognized from current quarter additions (4,994 ) Balance as of March 31, 2020 $ 55,307 Remaining Performance Obligations As of March 31, 2020 , the Company had $95.0 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 Commitments | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments During the three months ended March 31, 2020, the Company entered into a material lease in Allen, TX, related to a new client contract. This lease has an opening ROU asset and lease liability balance of $11,455,000 . The Company has included the below annual lease disclosures for comparability between reporting periods. 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 estimates 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 $ 3.2 million during the remainder of 2020, $ 4.2 million in 2021 and $ 0.1 million in 2022. The Company's finance leases are not material for the three months ended as of March 31, 2020 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 March 31, 2020 December 31, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 108,974 $ 102,354 Liabilities: Current operating lease liabilities Current operating lease liabilities 29,277 30,765 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 95,522 87,064 Total operating lease liabilities $ 124,799 $ 117,829 Weighted-Average Remaining Lease Term 6.14 years 5.72 years Weighted-Average Discount Rate (1) 5.3 % 5.4 % (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 ended March 31, 2020 : Three Months Ended Three Months Ended (in thousands) March 31, 2020 March 31, 2019 Operating lease cost $ 9,535 $ 9,394 Variable lease cost 2,193 2,009 Sublease income 1,099 943 Supplemental cash flow information related to operating leases for the three months ended March 31, 2020 were as follows: Three Months Ended Three Months Ended (in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,495 $ 9,596 Right-of-use assets obtained in exchange for lease obligations (1) $ 16,173 $ 4,220 (1) 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) March 31, 2020 2020 $ 25,883 2021 32,656 2022 20,461 2023 14,540 2024 11,289 Thereafter 43,035 Total undiscounted lease payments 147,864 Less imputed interest (23,064 ) Present value of future lease payments $ 124,799 |
Lease Commitments | Lease Commitments During the three months ended March 31, 2020, the Company entered into a material lease in Allen, TX, related to a new client contract. This lease has an opening ROU asset and lease liability balance of $11,455,000 . The Company has included the below annual lease disclosures for comparability between reporting periods. 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 estimates 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 $ 3.2 million during the remainder of 2020, $ 4.2 million in 2021 and $ 0.1 million in 2022. The Company's finance leases are not material for the three months ended as of March 31, 2020 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 March 31, 2020 December 31, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 108,974 $ 102,354 Liabilities: Current operating lease liabilities Current operating lease liabilities 29,277 30,765 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 95,522 87,064 Total operating lease liabilities $ 124,799 $ 117,829 Weighted-Average Remaining Lease Term 6.14 years 5.72 years Weighted-Average Discount Rate (1) 5.3 % 5.4 % (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 ended March 31, 2020 : Three Months Ended Three Months Ended (in thousands) March 31, 2020 March 31, 2019 Operating lease cost $ 9,535 $ 9,394 Variable lease cost 2,193 2,009 Sublease income 1,099 943 Supplemental cash flow information related to operating leases for the three months ended March 31, 2020 were as follows: Three Months Ended Three Months Ended (in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,495 $ 9,596 Right-of-use assets obtained in exchange for lease obligations (1) $ 16,173 $ 4,220 (1) 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) March 31, 2020 2020 $ 25,883 2021 32,656 2022 20,461 2023 14,540 2024 11,289 Thereafter 43,035 Total undiscounted lease payments 147,864 Less imputed interest (23,064 ) Present value of future lease payments $ 124,799 |
Lease Commitments | Lease Commitments During the three months ended March 31, 2020, the Company entered into a material lease in Allen, TX, related to a new client contract. This lease has an opening ROU asset and lease liability balance of $11,455,000 . The Company has included the below annual lease disclosures for comparability between reporting periods. 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 estimates 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 $ 3.2 million during the remainder of 2020, $ 4.2 million in 2021 and $ 0.1 million in 2022. The Company's finance leases are not material for the three months ended as of March 31, 2020 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 March 31, 2020 December 31, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 108,974 $ 102,354 Liabilities: Current operating lease liabilities Current operating lease liabilities 29,277 30,765 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 95,522 87,064 Total operating lease liabilities $ 124,799 $ 117,829 Weighted-Average Remaining Lease Term 6.14 years 5.72 years Weighted-Average Discount Rate (1) 5.3 % 5.4 % (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 ended March 31, 2020 : Three Months Ended Three Months Ended (in thousands) March 31, 2020 March 31, 2019 Operating lease cost $ 9,535 $ 9,394 Variable lease cost 2,193 2,009 Sublease income 1,099 943 Supplemental cash flow information related to operating leases for the three months ended March 31, 2020 were as follows: Three Months Ended Three Months Ended (in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,495 $ 9,596 Right-of-use assets obtained in exchange for lease obligations (1) $ 16,173 $ 4,220 (1) 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) March 31, 2020 2020 $ 25,883 2021 32,656 2022 20,461 2023 14,540 2024 11,289 Thereafter 43,035 Total undiscounted lease payments 147,864 Less imputed interest (23,064 ) Present value of future lease payments $ 124,799 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
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 a benefit of $(8.5) million and a provision of $2.9 million for the three months ended March 31, 2020 and 2019 , respectively. The overall effective tax rate increased to 39.2% for the three months ended March 31, 2020 compared with 33.7% for the 2019 period primarily due to the impact of goodwill impairment. On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). We do not intend to apply for governmental loans from the CARES Act or any other governmental programs to support the Company’s operations. We are taking advantage of certain aspects of the CARES Act such as the deferral of payroll tax deposits and continuing to evaluate the other provisions of the CARES Act. In addition, there are numerous international legislative responses that we continue to evaluate, such as the Canadian Emergency Wage Subsidy program, among other enactments. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Defined Benefit Pension Plans | Defined Benefit Pension Plans Net periodic cost related to all of the Company's defined benefit pension plans recognized in the Company's unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 included the following components: Three Months Ended (in thousands) March 31, March 31, Service cost $ 320 $ 316 Interest cost 4,141 5,584 Expected return on assets (7,018 ) (7,471 ) Amortization of actuarial loss 2,620 2,722 Net periodic cost $ 63 $ 1,151 For the three months ended March 31, 2020 and 2019 , the non-service components of net periodic pension (benefit) cost of $ (257,000) and $835,000 , respectively, are included in "Other (Expense) Income, net" on the unaudited Condensed Consolidated Statement of Operations. For the three month period ended March 31, 2020 , the Company made contributions of $3,000,000 and $156,000 to the U.S. and U.K. defined benefit pension plans, respectively, compared with no contributions to the U.S. defined benefit plan and $193,000 to the U.K. defined benefit pension plans during the three month period ended March 31, 2019 . The Company does not expect to make any additional contributions to its U.S. and U.K. plans during the remainder of 2020. |
Net (Loss) Income Attributable
Net (Loss) Income Attributable to Shareholders of Crawford & Company per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Attributable to Shareholders of Crawford & Company per Common Share | Net (Loss) 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 (loss) 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 (loss) earnings per share for CRD-A and CRD-B. During the first quarter of 2020 and 2019, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. The computations of basic net (loss) income attributable to shareholders of Crawford & Company per common share were as follows: Three Months Ended March 31, March 31, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B (Loss) earnings per share - basic: Numerator: Allocation of undistributed (loss) earnings $ (8,436 ) $ (6,232 ) $ 1,604 $ 1,223 Dividends paid 2,140 1,129 2,131 1,151 Net (loss) income attributable to common shareholders, basic $ (6,296 ) $ (5,103 ) $ 3,735 $ 2,374 Denominator: Weighted-average common shares outstanding, basic 30,562 22,578 30,658 23,367 (Loss) earnings per share - basic $ (0.21 ) $ (0.23 ) $ 0.12 $ 0.10 The computations of diluted net (loss) income attributable to shareholders of Crawford & Company per common share were as follows: Three Months Ended March 31, March 31, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B (Loss) earnings per share - diluted: Numerator: Allocation of undistributed (loss) earnings $ (8,436 ) $ (6,232 ) $ 1,614 $ 1,213 Dividends paid 2,140 1,129 2,131 1,151 Net (loss) income attributable to common shareholders, diluted $ (6,296 ) $ (5,103 ) $ 3,745 $ 2,364 Denominator: Weighted-average common shares outstanding, basic 30,562 22,578 30,658 23,367 Weighted-average effect of dilutive securities — — 448 — Weighted-average common shares outstanding, diluted 30,562 22,578 31,106 23,367 (Loss) earnings per share - diluted $ (0.21 ) $ (0.23 ) $ 0.12 $ 0.10 Listed below are the shares excluded from the denominator in the preceding computation of diluted (loss) earnings per share for CRD-A because their inclusion would have been antidilutive: Three Months Ended (in thousands) March 31, March 31, Shares underlying stock options excluded 1,904 931 Performance stock grants excluded because performance conditions have not been met (1) 932 1,144 (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 months ended March 31, 2020 and March 31, 2019 . These shares are included from their dates of issuance in the weighted-average common shares used to compute basic and diluted (loss) 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 (in thousands) March 31, March 31, CRD-A issued under Non-Employee Director Stock Plan 81 76 CRD-A issued under the U.K. ShareSave Scheme 1 9 CRD-A issued under Executive Stock Bonus Plan — 30 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 March 31, 2020 , the Company had remaining authorization to repurchase 642,097 shares under the 2019 Repurchase Authorization. During the three months ended March 31, 2020 , the Company repurchased 155,351 shares of CRD-A and 161,459 shares of CRD-B at an average cost of $8.42 for each share. During the three months ended March 31, 2019 , the Company repurchased 421,427 shares of CRD-A and 1,376,889 shares of CRD-B at an average cost of $9.13 for each share. All shares repurchased during the three months ended March 31, 2019 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (35,850 ) $ (171,057 ) $ (206,907 ) Other comprehensive loss before reclassifications (3,473 ) — (3,473 ) Amounts reclassified from accumulated other comprehensive income — 1,928 1,928 Net current period other comprehensive (loss) income (3,473 ) 1,928 (1,545 ) Acquisition of noncontrolling interest 576 — 576 Ending balance $ (38,747 ) $ (169,129 ) $ (207,876 ) Three Months Ended March 31, 2019 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (36,352 ) $ (180,095 ) $ (216,447 ) Other comprehensive income before reclassifications 3,062 — 3,062 Amounts reclassified from accumulated other comprehensive income — 2,011 2,011 Net current period other comprehensive income 3,062 2,011 5,073 Ending balance $ (33,290 ) $ (178,084 ) $ (211,374 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other (Expense) 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 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) $ 10,021 $ 10,021 $ — $ — Liabilities: Contingent earnout liability (2) 440 — — 440 (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 $813,000 . 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 ended March 31, 2020 . 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. Nonrecurring Fair Value Disclosures Goodwill is an asset that represents the excess of the purchase price over the fair value of the separately identifiable net assets (tangible and intangible) acquired in certain business combinations. Indefinite-lived intangible assets consist of trade names associated with acquired businesses. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing at least annually. Other long-lived assets consist primarily of property and equipment, deferred income tax assets, capitalized software, and amortizable intangible assets related to customer relationships, technology, and trade names with finite lives. Other long-lived assets are evaluated for impairment when impairment indicators are identified. Subsequent to a business acquisition in which goodwill and indefinite-lived intangibles are recorded as assets, post-acquisition accounting requires that both be tested to determine whether there has been an impairment. The Company performs an impairment test of goodwill and indefinite-lived intangible assets at least annually on October 1 of each year. The Company regularly evaluates whether events and circumstances have occurred which indicate potential impairment of goodwill or indefinite-lived intangible assets. When factors indicate that such assets should be evaluated for possible impairment between the scheduled annual impairment tests, the Company performs an interim impairment test. Goodwill impairment testing is performed on a reporting unit basis. If the fair value of the reporting unit exceeds its carrying value, including goodwill, goodwill is considered not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The loss recognized cannot subsequently be reversed. The Company currently has four reporting units for goodwill impairment purposes. These reporting units are the Crawford Claims Solutions and Crawford TPA Solutions operating segments and the Global Technical Services and Contractor Connection service lines. The carrying value of the reporting unit, including goodwill, is compared with the estimated fair value of the reporting unit as determined utilizing a combination of the income and market approaches. The income approach, which is a level 3 fair value measurement, is based on projected debt-free cash flow which is discounted to the present value using discount factors that consider the timing and risk of the cash flows. The market approach is based on the Guideline Public Company Method, which uses market pricing metrics to select multiples to value the Company's reporting units. The resulting estimated fair values of the combined reporting units are reconciled to the Company's market capitalization including an estimated implied control premium. The Company believes that the combination of these approaches is appropriate because it provides a fair value estimate based upon the combination of the reporting unit's expected long-term operating cash flow performance and multiples with which similar publicly traded companies are valued. The Company weights the income and market approaches equally. During the first quarter of 2020 , the Company identified a goodwill impairment indicator in its Crawford Claims Solutions reporting unit as a result of lower operating results and the overall decline in market conditions as a result of the COVID-19 pandemic. As a result, the Company recognized a goodwill impairment of $17,674,000 , reducing the goodwill carrying value of Crawford Claims Solutions to $0 as of March 31, 2020. During the fourth quarter of 2019, as part the Company's 2019 annual assessment, the Company recognized a goodwill impairment of $17,484,000 in the Crawford Claims Solutions segment, due to lower forecasts in that reporting unit. Cumulative goodwill impairment in the Crawford Claims Solutions reporting unit is $55,565,000 . The Company intends to continue to monitor the performance of its other three reporting units for potential indicators of impairment. If impairment indicators exist, the Company will perform an interim goodwill impairment analysis. The key assumptions used in estimating the fair value of the CCS reporting unit utilizing the income approach include the discount rate and the terminal growth rate. The discount rates utilized in estimating the fair value of the CCS reporting unit in 2020 was 17.5% , reflecting the Company's assessment of a market participant's view of the risks associated with the projected cash flows. The terminal growth rate used in the analysis was 2.0% . The assumptions used in estimating the fair values are based on currently available data and management's best estimates of revenues and cash flows and, accordingly, a change in market conditions or other factors could have a material effect on the estimated values. There are inherent uncertainties related to the assumptions used and to management's application of these assumptions. If changes to the Company's reporting structure impact the composition of its reporting units, existing goodwill is reallocated to the revised reporting units based on their relative estimated fair values as determined by a combination of the income and market approaches. If all of the assets and liabilities of an acquired business are assigned to a specific reporting unit, the goodwill associated with that acquisition is assigned to that reporting unit at acquisition unless another reporting unit is also expected to benefit from the acquisition. For impairment testing of indefinite-lived intangible assets, the carrying value is compared with the estimated fair value, which is estimated based on the present value of the after-tax cash flows attributable solely to the asset. If carrying value exceeds the estimated fair value, an impairment is recognized based on the excess. The fair values of the Company's trade names are established using the relief-from-royalty method, a form of the income approach. This method recognizes that, by virtue of owning the trade name as opposed to licensing it, a company or reporting unit is relieved from paying a royalty, usually expressed as a percentage of net sales, for the asset's use. The present value of the after-tax costs savings (i.e., royalty relief) at an appropriate discount rate including a tax amortization benefit indicates the value of the trade name. The Company determined the discount rate based on its performance compared to similar market participants, factored by risk in forecasting using a modified capital asset pricing model. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Financial information for the three months ended March 31, 2020 and 2019 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below. Three Months Ended (in thousands) March 31, March 31, Revenues: Crawford Claims Solutions $ 77,587 $ 83,319 Crawford TPA Solutions 96,935 97,794 Crawford Specialty Solutions 63,009 65,945 Total segment revenues before reimbursements 237,531 247,058 Reimbursements 8,515 9,319 Total revenues $ 246,046 $ 256,377 Segment Operating Earnings Crawford Claims Solutions $ (3,679 ) $ (313 ) Crawford TPA Solutions 6,285 6,733 Crawford Specialty Solutions 6,957 12,195 Total segment operating earnings 9,563 18,615 Deduct: Unallocated corporate and shared costs, net (2,550 ) (3,914 ) Net corporate interest expense (2,224 ) (2,716 ) Stock option expense (290 ) (485 ) Amortization of customer-relationship intangible assets (2,756 ) (2,798 ) Goodwill impairment (17,674 ) — Restructuring costs (5,714 ) — (Loss) Income before income taxes $ (21,645 ) $ 8,702 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 impairment, restructuring costs, 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. Intersegment transactions are not material for any period presented. Revenues before reimbursements by major service line in the Crawford TPA Solutions segment, which operates 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 (in thousands) March 31, March 31, Crawford TPA Solutions Claims Management Services $ 54,866 $ 56,911 Medical Management Services 42,069 40,883 Total Revenues before Reimbursements--Crawford TPA Solutions $ 96,935 $ 97,794 Crawford Specialty Solutions Global Technical Services $ 43,908 $ 44,373 Contractor Connection 19,101 21,572 Total Revenues before Reimbursements--Crawford Specialty Solutions $ 63,009 $ 65,945 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , 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. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Total restructuring costs for the three months ended March 31, 2020 were $5,714,000 . There were no restructuring costs for the three months ended March 31, 2019. Restructuring costs incurred during the three months ended March 31, 2020 , related primarily to severance and other termination costs in an effort to consolidate and streamline various functions of our workforce. Costs associated with these activities were incurred in each of the Company's operating segments and in administrative functions. Asset impairments were incurred for obsolete software. The following table shows the restructuring costs incurred by type of activity: Three months ended (in thousands) March 31, March 31, Personnel related costs $ 5,076 $ — Asset impairments 638 — Total restructuring costs $ 5,714 $ — As of March 31, 2020 , the following liabilities remained on the Company's unaudited Condensed Consolidated Balance Sheets related to restructuring costs. The rollforward of these liabilities to March 31, 2020 were as follows: Three months ended March 31, 2020 (in thousands) Accrued compensation and related costs Other accrued liabilities Total Beginning balance, December 31, 2019 $ 342 $ 472 $ 814 Additions 5,076 — 5,076 Adjustments to accruals (372 ) (467 ) (839 ) Cash payments (1,264 ) — (1,264 ) Ending balance, March 31, 2020 $ 3,782 $ 5 $ 3,787 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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. Due to the impact of weather activity and the economic contraction resulting from the COVID-19 pandemic, the Company's operating results for the three months ended and financial position as of March 31, 2020 are not necessarily indicative of the results or financial position that may be expected for the year ending December 31, 2020 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, 2019 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 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 Company estimates its expected credit losses based on past experience, current conditions and reasonable and supportable forecasts affecting collectability of these assets. We evaluate the risks related to our trade receivables and contract assets by considering customer type, geography, and aging. Topic 326 is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted Topic 326 on January 1, 2020 using a modified retrospective approach. As a result of adopting Topic 326, the Company recognized a cumulative effect adjustment to decrease the opening balance of retained earnings by $607,000 . The Company has included assumptions related to expected credit losses from the impact of the COVID-19 pandemic in its results of operations for the quarter ended March 31, 2020. 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. The Company adopted this guidance on January 1, 2020 with no impact on its results of operation, financial condition and cash flows. 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 amortization expense in the statement of income, the presentation of the capitalized costs on the statement of financial position and the classification of payments for capitalized costs in the statement of cash flows related to capitalized implementation costs to be treated the same as the fees for service component of the associated hosting arrangement. The update is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on its results of operation, financial condition and cash flows. Pending Adoption of Recently Issued Accounting Standards 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. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 amends ASC 740 to simplify the accounting for income taxes by removing certain exceptions for foreign equity investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in the accounting standard under the FASB’s simplification initiative. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Upon adoption, the amendments in ASU 2019-12 should be applied on a prospective basis to all periods presented. Early adoption is permitted. The Company is currently assessing the impact of the adoption of the new guidance. |
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 estimates 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 (loss) 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 (loss) earnings per share for CRD-A and CRD-B. During the first quarter of 2020 and 2019, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 9,601 $ 15,326 $ 24,927 $ 10,271 $ 18,187 $ 28,458 U.K. 12,015 2,157 14,172 11,157 1,531 12,688 Canada 6,137 1,481 7,618 6,711 1,680 8,391 Australia 4,848 130 4,978 5,143 174 5,317 Europe 5,152 7 5,159 4,759 — 4,759 Rest of World 6,155 — 6,155 6,332 — 6,332 Total Crawford Specialty Solutions Revenues before Reimbursements $ 43,908 $ 19,101 $ 63,009 $ 44,373 $ 21,572 $ 65,945 The following tables present Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 36,024 $ 42,069 $ 78,093 $ 36,313 $ 40,883 $ 77,196 U.K. 2,865 — 2,865 2,530 — 2,530 Canada 7,463 — 7,463 9,372 — 9,372 Europe and Rest of World 8,514 — 8,514 8,696 — 8,696 Total Crawford TPA Solutions Revenues before Reimbursements $ 54,866 $ 42,069 $ 96,935 $ 56,911 $ 40,883 $ 97,794 The following table presents Crawford Claims Solutions revenues before reimbursements disaggregated by geography for the three months ended March 31, 2020 and 2019 : Three Months Ended (in thousands) March 31, March 31, U.S. $ 31,428 $ 33,936 U.K. 15,345 16,371 Canada 10,139 12,121 Australia 9,945 10,519 Europe 6,961 6,465 Rest of World 3,769 3,907 Total Crawford Claims Solutions Revenues before Reimbursements $ 77,587 $ 83,319 |
Customer contract liabilities | The table below presents the deferred revenues balance as of January 1, 2020 and the significant activity affecting deferred revenues during the three months ended March 31, 2020: (In Thousands) Customer Contract Liabilities Deferred Revenue Balance at January 1, 2020 $ 52,368 Quarterly additions 22,226 Revenue recognized from the prior periods (14,293 ) Revenue recognized from current quarter additions (4,994 ) Balance as of March 31, 2020 $ 55,307 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease-related assets and liabilities | 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 March 31, 2020 December 31, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 108,974 $ 102,354 Liabilities: Current operating lease liabilities Current operating lease liabilities 29,277 30,765 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 95,522 87,064 Total operating lease liabilities $ 124,799 $ 117,829 Weighted-Average Remaining Lease Term 6.14 years 5.72 years Weighted-Average Discount Rate (1) 5.3 % 5.4 % (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 ended March 31, 2020 : Three Months Ended Three Months Ended (in thousands) March 31, 2020 March 31, 2019 Operating lease cost $ 9,535 $ 9,394 Variable lease cost 2,193 2,009 Sublease income 1,099 943 Supplemental cash flow information related to operating leases for the three months ended March 31, 2020 were as follows: Three Months Ended Three Months Ended (in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,495 $ 9,596 Right-of-use assets obtained in exchange for lease obligations (1) $ 16,173 $ 4,220 (1) 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) March 31, 2020 2020 $ 25,883 2021 32,656 2022 20,461 2023 14,540 2024 11,289 Thereafter 43,035 Total undiscounted lease payments 147,864 Less imputed interest (23,064 ) Present value of future lease payments $ 124,799 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Schedule of defined benefit plans disclosures | Net periodic cost related to all of the Company's defined benefit pension plans recognized in the Company's unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 included the following components: Three Months Ended (in thousands) March 31, March 31, Service cost $ 320 $ 316 Interest cost 4,141 5,584 Expected return on assets (7,018 ) (7,471 ) Amortization of actuarial loss 2,620 2,722 Net periodic cost $ 63 $ 1,151 |
Net Income Attributable to Shar
Net Income Attributable to Shareholders of Crawford & Company per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic | The computations of basic net (loss) income attributable to shareholders of Crawford & Company per common share were as follows: Three Months Ended March 31, March 31, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B (Loss) earnings per share - basic: Numerator: Allocation of undistributed (loss) earnings $ (8,436 ) $ (6,232 ) $ 1,604 $ 1,223 Dividends paid 2,140 1,129 2,131 1,151 Net (loss) income attributable to common shareholders, basic $ (6,296 ) $ (5,103 ) $ 3,735 $ 2,374 Denominator: Weighted-average common shares outstanding, basic 30,562 22,578 30,658 23,367 (Loss) earnings per share - basic $ (0.21 ) $ (0.23 ) $ 0.12 $ 0.10 |
Schedule of earnings per share, diluted | The computations of diluted net (loss) income attributable to shareholders of Crawford & Company per common share were as follows: Three Months Ended March 31, March 31, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B (Loss) earnings per share - diluted: Numerator: Allocation of undistributed (loss) earnings $ (8,436 ) $ (6,232 ) $ 1,614 $ 1,213 Dividends paid 2,140 1,129 2,131 1,151 Net (loss) income attributable to common shareholders, diluted $ (6,296 ) $ (5,103 ) $ 3,745 $ 2,364 Denominator: Weighted-average common shares outstanding, basic 30,562 22,578 30,658 23,367 Weighted-average effect of dilutive securities — — 448 — Weighted-average common shares outstanding, diluted 30,562 22,578 31,106 23,367 (Loss) earnings per share - diluted $ (0.21 ) $ (0.23 ) $ 0.12 $ 0.10 |
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 (loss) earnings per share for CRD-A because their inclusion would have been antidilutive: Three Months Ended (in thousands) March 31, March 31, Shares underlying stock options excluded 1,904 931 Performance stock grants excluded because performance conditions have not been met (1) 932 1,144 (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 months ended March 31, 2020 and March 31, 2019 . These shares are included from their dates of issuance in the weighted-average common shares used to compute basic and diluted (loss) 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 (in thousands) March 31, March 31, CRD-A issued under Non-Employee Director Stock Plan 81 76 CRD-A issued under the U.K. ShareSave Scheme 1 9 CRD-A issued under Executive Stock Bonus Plan — 30 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (35,850 ) $ (171,057 ) $ (206,907 ) Other comprehensive loss before reclassifications (3,473 ) — (3,473 ) Amounts reclassified from accumulated other comprehensive income — 1,928 1,928 Net current period other comprehensive (loss) income (3,473 ) 1,928 (1,545 ) Acquisition of noncontrolling interest 576 — 576 Ending balance $ (38,747 ) $ (169,129 ) $ (207,876 ) Three Months Ended March 31, 2019 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (36,352 ) $ (180,095 ) $ (216,447 ) Other comprehensive income before reclassifications 3,062 — 3,062 Amounts reclassified from accumulated other comprehensive income — 2,011 2,011 Net current period other comprehensive income 3,062 2,011 5,073 Ending balance $ (33,290 ) $ (178,084 ) $ (211,374 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other (Expense) 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 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) $ 10,021 $ 10,021 $ — $ — Liabilities: Contingent earnout liability (2) 440 — — 440 (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 $813,000 . 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) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of operating profit from segments to consolidated | Financial information for the three months ended March 31, 2020 and 2019 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below. Three Months Ended (in thousands) March 31, March 31, Revenues: Crawford Claims Solutions $ 77,587 $ 83,319 Crawford TPA Solutions 96,935 97,794 Crawford Specialty Solutions 63,009 65,945 Total segment revenues before reimbursements 237,531 247,058 Reimbursements 8,515 9,319 Total revenues $ 246,046 $ 256,377 Segment Operating Earnings Crawford Claims Solutions $ (3,679 ) $ (313 ) Crawford TPA Solutions 6,285 6,733 Crawford Specialty Solutions 6,957 12,195 Total segment operating earnings 9,563 18,615 Deduct: Unallocated corporate and shared costs, net (2,550 ) (3,914 ) Net corporate interest expense (2,224 ) (2,716 ) Stock option expense (290 ) (485 ) Amortization of customer-relationship intangible assets (2,756 ) (2,798 ) Goodwill impairment (17,674 ) — Restructuring costs (5,714 ) — (Loss) Income before income taxes $ (21,645 ) $ 8,702 |
Schedule of revenues by major service line | Revenues before reimbursements by major service line in the Crawford TPA Solutions segment, which operates 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 (in thousands) March 31, March 31, Crawford TPA Solutions Claims Management Services $ 54,866 $ 56,911 Medical Management Services 42,069 40,883 Total Revenues before Reimbursements--Crawford TPA Solutions $ 96,935 $ 97,794 Crawford Specialty Solutions Global Technical Services $ 43,908 $ 44,373 Contractor Connection 19,101 21,572 Total Revenues before Reimbursements--Crawford Specialty Solutions $ 63,009 $ 65,945 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | The following table shows the restructuring costs incurred by type of activity: Three months ended (in thousands) March 31, March 31, Personnel related costs $ 5,076 $ — Asset impairments 638 — Total restructuring costs $ 5,714 $ — |
Schedule of restructuring reserve liabilities by type | The rollforward of these liabilities to March 31, 2020 were as follows: Three months ended March 31, 2020 (in thousands) Accrued compensation and related costs Other accrued liabilities Total Beginning balance, December 31, 2019 $ 342 $ 472 $ 814 Additions 5,076 — 5,076 Adjustments to accruals (372 ) (467 ) (839 ) Cash payments (1,264 ) — (1,264 ) Ending balance, March 31, 2020 $ 3,782 $ 5 $ 3,787 |
Basis of Presentation (VIE) (De
Basis of Presentation (VIE) (Details) - Primary beneficiary - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity | ||
Liabilities of the deferred compensation plan | $ 8,462 | $ 8,428 |
Assets held in the related rabbi trust | $ 16,414 | $ 16,527 |
Basis of Presentation (Acquisit
Basis of Presentation (Acquisition) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | ||
Variable Interest Entity | |||
Asset carrying amount | $ 781,672,000 | $ 760,013,000 | [1] |
LWI | |||
Variable Interest Entity | |||
Ownership percentage | 51.00% | ||
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | $ 10,000,000 | ||
LWI | Primary beneficiary | |||
Variable Interest Entity | |||
Asset carrying amount | 14,979,000 | 14,686,000 | |
Liabilities | 8,528,000 | 9,176,000 | |
LWI | Principal owner | Primary beneficiary | |||
Variable Interest Entity | |||
Liabilities | $ 4,284,000 | $ 4,284,000,000 | |
[1] | Derived from the audited Consolidated Balance Sheet |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) $ in Thousands | Jan. 01, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | $ 607 |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | 607 |
Retained Earnings | ASU 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | $ 607 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
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 | $ 95 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 246,046 | $ 256,377 |
Crawford Claims Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 77,587 | 83,319 |
Crawford Claims Solutions | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 31,428 | 33,936 |
Crawford Claims Solutions | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 15,345 | 16,371 |
Crawford Claims Solutions | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 10,139 | 12,121 |
Crawford Claims Solutions | Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9,945 | 10,519 |
Crawford Claims Solutions | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,961 | 6,465 |
Crawford Claims Solutions | Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,769 | 3,907 |
Crawford TPA Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 96,935 | 97,794 |
Crawford TPA Solutions | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 78,093 | 77,196 |
Crawford TPA Solutions | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,865 | 2,530 |
Crawford TPA Solutions | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,463 | 9,372 |
Crawford TPA Solutions | Europe and Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8,514 | 8,696 |
Crawford TPA Solutions | Claims Management Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 54,866 | 56,911 |
Crawford TPA Solutions | Claims Management Services | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 36,024 | 36,313 |
Crawford TPA Solutions | Claims Management Services | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,865 | 2,530 |
Crawford TPA Solutions | Claims Management Services | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,463 | 9,372 |
Crawford TPA Solutions | Claims Management Services | Europe and Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8,514 | 8,696 |
Crawford TPA Solutions | Medical Management Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 42,069 | 40,883 |
Crawford TPA Solutions | Medical Management Services | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Crawford TPA Solutions | Medical Management Services | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Crawford TPA Solutions | Medical Management Services | Europe and Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Crawford Specialty Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 63,009 | 65,945 |
Crawford Specialty Solutions | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 24,927 | 28,458 |
Crawford Specialty Solutions | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,172 | 12,688 |
Crawford Specialty Solutions | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,618 | 8,391 |
Crawford Specialty Solutions | Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,978 | 5,317 |
Crawford Specialty Solutions | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,159 | 4,759 |
Crawford Specialty Solutions | Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,155 | 6,332 |
Crawford Specialty Solutions | Global Technical Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 43,908 | 44,373 |
Crawford Specialty Solutions | Global Technical Services | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9,601 | 10,271 |
Crawford Specialty Solutions | Global Technical Services | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 12,015 | 11,157 |
Crawford Specialty Solutions | Global Technical Services | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,137 | 6,711 |
Crawford Specialty Solutions | Global Technical Services | Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,848 | 5,143 |
Crawford Specialty Solutions | Global Technical Services | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,152 | 4,759 |
Crawford Specialty Solutions | Global Technical Services | Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,155 | 6,332 |
Crawford Specialty Solutions | Contractor Connection | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 19,101 | 21,572 |
Crawford Specialty Solutions | Contractor Connection | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 15,326 | 18,187 |
Crawford Specialty Solutions | Contractor Connection | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,157 | 1,531 |
Crawford Specialty Solutions | Contractor Connection | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,481 | 1,680 |
Crawford Specialty Solutions | Contractor Connection | Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 130 | 174 |
Crawford Specialty Solutions | Contractor Connection | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7 | 0 |
Crawford Specialty Solutions | Contractor Connection | Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 | $ 0 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule Of Customer Contract Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Customer Contract Liabilities | |
Beginning balance (current and noncurrent) | $ 52,368 |
Quarterly additions | 22,226 |
Revenue recognized from the prior periods | (14,293) |
Revenue recognized from current quarter additions | (4,994) |
Ending balance (current and noncurrent) | $ 55,307 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | ||
Lessee, Lease, Description [Line Items] | ||||
Operating lease ROU asset | $ 108,974 | $ 102,354 | [1] | $ 122,300 |
Lease liability | $ 124,799 | $ 117,829 | ||
Renewal term | 5 years | |||
Termination period | 1 year | |||
Sublease income, remainder of 2020 | $ 3,200 | |||
Sublease income, 2021 | 4,200 | |||
Sublease income, 2022 | $ 100 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 11 years | |||
Allen, TX | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease ROU asset | $ 11,455 | |||
Lease liability | $ 11,455 | |||
[1] | Derived from the audited Consolidated Balance Sheet |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||||
Operating lease right-of-use assets, net | $ 108,974 | $ 102,354 | [1] | $ 122,300 |
Current operating lease liabilities | 29,277 | 30,765 | [1] | |
Noncurrent operating lease liabilities | 95,522 | 87,064 | ||
Total operating lease liabilities | $ 124,799 | $ 117,829 | ||
Weighted-Average Remaining Lease Term | 6 years 1 month 19 days | 5 years 8 months 19 days | ||
Weighted-Average Discount Rate | 5.30% | 5.40% | ||
[1] | Derived from the audited Consolidated Balance Sheet |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 9,535 | $ 9,394 |
Variable lease cost | 2,193 | 2,009 |
Sublease income | $ 1,099 | $ 943 |
Lease Commitments - Supplemen_2
Lease Commitments - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | [1] | Jan. 01, 2019 | |
Leases [Abstract] | |||||
Operating cash flows for operating leases | $ 9,495 | $ 9,596 | |||
Right-of-use assets obtained in exchange for lease obligations | 16,173 | $ 4,220 | |||
Operating lease right-of-use assets, net | $ 108,974 | $ 102,354 | $ 122,300 | ||
[1] | Derived from the audited Consolidated Balance Sheet |
Lease Commitments - Lease Matur
Lease Commitments - Lease Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 25,883 | |
2021 | 32,656 | |
2022 | 20,461 | |
2023 | 14,540 | |
2024 | 11,289 | |
Thereafter | 43,035 | |
Total undiscounted lease payments | 147,864 | |
Less imputed interest | (23,064) | |
Present value of future lease payments | $ 124,799 | $ 117,829 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
(Benefit) provision for income taxes | $ (8,486) | $ 2,933 |
Effective income tax rate reconciliation, percent | 39.20% | 33.70% |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans (Defined Benefit Plans) (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 320 | $ 316 |
Interest cost | 4,141 | 5,584 |
Expected return on assets | (7,018) | (7,471) |
Amortization of actuarial loss | 2,620 | 2,722 |
Net periodic cost | $ 63 | $ 1,151 |
Defined Benefit Pension Plans_3
Defined Benefit Pension Plans (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost, non-service cost | $ (257,000) | $ 835,000 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | 3,000,000 | 0 |
U.K. Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 156,000 | $ 193,000 |
Net Income Attributable to Sh_2
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Class A Non-Voting | ||
Numerator: | ||
Allocation of undistributed (loss) earnings | $ (8,436) | $ 1,604 |
Dividends paid | 2,140 | 2,131 |
Net (loss) income attributable to common shareholders, basic | $ (6,296) | $ 3,735 |
Denominator: | ||
Weighted-average common shares outstanding, basic (shares) | 30,562 | 30,658 |
Earnings per share - basic (usd per share) | $ (0.21) | $ 0.12 |
Class B Voting | ||
Numerator: | ||
Allocation of undistributed (loss) earnings | $ (6,232) | $ 1,223 |
Dividends paid | 1,129 | 1,151 |
Net (loss) income attributable to common shareholders, basic | $ (5,103) | $ 2,374 |
Denominator: | ||
Weighted-average common shares outstanding, basic (shares) | 22,578 | 23,367 |
Earnings per share - basic (usd per share) | $ (0.23) | $ 0.10 |
Net Income Attributable to Sh_3
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Class A Non-Voting | ||
Numerator: | ||
Allocation of undistributed (loss) earnings | $ (8,436) | $ 1,614 |
Dividends paid | 2,140 | 2,131 |
Net (loss) income attributable to common shareholders, diluted | $ (6,296) | $ 3,745 |
Denominator: | ||
Weighted-average common shares outstanding, basic (shares) | 30,562 | 30,658 |
Weighted-average number of dilutive securities (shares) | 0 | 448 |
Weighted-average common shares outstanding, diluted (shares) | 30,562 | 31,106 |
Earnings per share - diluted (usd per share) | $ (0.21) | $ 0.12 |
Class B Voting | ||
Numerator: | ||
Allocation of undistributed (loss) earnings | $ (6,232) | $ 1,213 |
Dividends paid | 1,129 | 1,151 |
Net (loss) income attributable to common shareholders, diluted | $ (5,103) | $ 2,364 |
Denominator: | ||
Weighted-average common shares outstanding, basic (shares) | 22,578 | 23,367 |
Weighted-average number of dilutive securities (shares) | 0 | 0 |
Weighted-average common shares outstanding, diluted (shares) | 22,578 | 23,367 |
Earnings per share - diluted (usd per share) | $ (0.23) | $ 0.10 |
Net Income Attributable to Sh_4
Net Income Attributable to Shareholders of Crawford & Company per Common Share (Antidilutive Securities) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Shares underlying stock options excluded | ||
Antidilutive Securities Excluded from Computation of (Loss) Earnings Per Share | ||
Shares excluded from diluted earnings per share (shares) | 1,904 | 931 |
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) | 932 | 1,144 |
Net Income Attributable to Sh_5
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CRD-A issued under Non-Employee Director Stock Plan | ||
Share-based Compensation Arrangement | ||
Stock issued during period (shares) | 81 | 76 |
CRD-A issued under the U.K. ShareSave Scheme | ||
Share-based Compensation Arrangement | ||
Stock issued during period (shares) | 1 | 9 |
CRD-A issued under Executive Stock Bonus Plan | ||
Share-based Compensation Arrangement | ||
Stock issued during period (shares) | 0 | 30 |
Net Income Attributable to Sh_6
Net Income Attributable to Shareholders of Crawford & Company per Common Share (Narrative) (Details) - $ / shares | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | May 09, 2019 | Jul. 29, 2017 | |
Class A Non-Voting | ||||
Equity, Class of Treasury Stock | ||||
Shares repurchased (shares) | 155,351 | 421,427 | ||
Average cost (usd per share) | $ 8.42 | $ 9.13 | ||
Class B Voting | ||||
Equity, Class of Treasury Stock | ||||
Shares repurchased (shares) | 161,459 | 1,376,889 | ||
Average cost (usd per share) | $ 8.42 | $ 9.13 | ||
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) | 642,097 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Rollforward of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | $ 162,567 | [1] | $ 175,446 |
Other comprehensive loss before reclassifications | (3,473) | 3,062 | |
Amounts reclassified from accumulated other comprehensive income | 1,928 | 2,011 | |
Net current period other comprehensive (loss) income | (1,545) | 5,073 | |
Acquisition of noncontrolling interest | 576 | ||
Ending balance | 143,801 | 166,508 | |
AOCL attributable to shareholders of Crawford & Company | |||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (206,907) | (216,447) | |
Ending balance | (207,876) | (211,374) | |
Foreign currency translation adjustments | |||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (35,850) | (36,352) | |
Other comprehensive loss before reclassifications | (3,473) | 3,062 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Net current period other comprehensive (loss) income | (3,473) | 3,062 | |
Acquisition of noncontrolling interest | 576 | ||
Ending balance | (38,747) | (33,290) | |
Retirement liabilities | |||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (171,057) | (180,095) | |
Other comprehensive loss before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | 1,928 | 2,011 | |
Net current period other comprehensive (loss) income | 1,928 | 2,011 | |
Ending balance | $ (169,129) | $ (178,084) | |
[1] | Derived from the audited Consolidated Balance Sheet |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)reporting_unit | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | ||
Liabilities: | ||||
Debt instrument, variable interest rate duration between resets | 90 days | |||
Number of reporting units | reporting_unit | 4 | |||
Goodwill impairment | $ 17,674,000 | $ 0 | ||
Goodwill | 62,883,000 | $ 80,642,000 | [1] | |
Cash and cash equivalents | ||||
Assets: | ||||
Money market funds | 10,021,000 | |||
Cash and cash equivalents | Quoted Prices in Active Markets (Level 1) | ||||
Assets: | ||||
Money market funds | 10,021,000 | |||
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 | 440,000 | |||
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 | 440,000 | |||
Crawford Specialty Solutions | ||||
Liabilities: | ||||
Maximum possible earnout liability | 813,000 | |||
Crawford Claims Solutions | ||||
Liabilities: | ||||
Goodwill impairment | 17,674,000 | $ 17,484,000 | ||
Cumulative goodwill impairment | 55,565,000 | |||
Goodwill | $ 0 | |||
Discount rate | ||||
Liabilities: | ||||
Measurement input | 0.175 | |||
Terminal growth rate | ||||
Liabilities: | ||||
Measurement input | 0.020 | |||
[1] | Derived from the audited Consolidated Balance Sheet |
Segment Information (Reportable
Segment Information (Reportable Segments) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | |
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | $ 246,046 | $ 256,377 | |
Net corporate interest expense | (2,224) | (2,716) | |
Goodwill impairment | (17,674) | 0 | |
Restructuring costs | (5,076) | ||
(Loss) Income Before Income Taxes | $ (21,645) | 8,702 | |
Number of operating segments (segments) | segment | 3 | ||
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Total segment operating earnings | $ 9,563 | 18,615 | |
Segment Reconciling Items | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Unallocated corporate and shared costs, net | (2,550) | (3,914) | |
Net corporate interest expense | (2,224) | (2,716) | |
Stock option expense | (290) | (485) | |
Amortization of customer-relationship intangible assets | (2,756) | (2,798) | |
Goodwill impairment | (17,674) | 0 | |
Restructuring costs | (5,714) | 0 | |
Crawford Claims Solutions | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Goodwill impairment | (17,674) | $ (17,484) | |
Crawford Claims Solutions | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Total segment operating earnings | (3,679) | (313) | |
Crawford TPA Solutions | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | 96,935 | 97,794 | |
Crawford TPA Solutions | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Total segment operating earnings | 6,285 | 6,733 | |
Crawford Specialty Solutions | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | 63,009 | 65,945 | |
Crawford Specialty Solutions | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Total segment operating earnings | 6,957 | 12,195 | |
Service | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | 237,531 | 247,058 | |
Service | Crawford Claims Solutions | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | 77,587 | 83,319 | |
Service | Crawford TPA Solutions | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | 96,935 | 97,794 | |
Service | Crawford TPA Solutions | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | 96,935 | 97,794 | |
Service | Crawford Specialty Solutions | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | 63,009 | 65,945 | |
Service | Crawford Specialty Solutions | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | 63,009 | 65,945 | |
Reimbursements | |||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||
Revenues | $ 8,515 | $ 9,319 |
Segment Information (Revenues B
Segment Information (Revenues By Major Service Line) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from External Customer | ||
Revenues | $ 246,046 | $ 256,377 |
Crawford TPA Solutions | ||
Revenue from External Customer | ||
Revenues | 96,935 | 97,794 |
Crawford Specialty Solutions | ||
Revenue from External Customer | ||
Revenues | 63,009 | 65,945 |
Service | ||
Revenue from External Customer | ||
Revenues | 237,531 | 247,058 |
Service | Crawford TPA Solutions | ||
Revenue from External Customer | ||
Revenues | 96,935 | 97,794 |
Service | Crawford Specialty Solutions | ||
Revenue from External Customer | ||
Revenues | 63,009 | 65,945 |
Claims Management Services | Crawford TPA Solutions | ||
Revenue from External Customer | ||
Revenues | 54,866 | 56,911 |
Medical Management Services | Crawford TPA Solutions | ||
Revenue from External Customer | ||
Revenues | 42,069 | 40,883 |
Global Technical Services | Crawford Specialty Solutions | ||
Revenue from External Customer | ||
Revenues | 43,908 | 44,373 |
Contractor Connection | Crawford Specialty Solutions | ||
Revenue from External Customer | ||
Revenues | $ 19,101 | $ 21,572 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Letter of Credit | |
Loss Contingencies | |
Letters of credit outstanding amount | $ 11,636 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring costs | $ 5,714,000 | $ 0 |
Restructuring Costs (Type of Ac
Restructuring Costs (Type of Activity) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||
Personnel related costs | $ 5,076,000 | $ 0 |
Asset impairments | 638,000 | 0 |
Total restructuring costs | $ 5,714,000 | $ 0 |
Restructuring Costs (Rollforwar
Restructuring Costs (Rollforward of Restructuring Cost Liabilities) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 814 |
Additions | 5,076 |
Adjustments to accruals | (839) |
Cash payments | (1,264) |
Ending balance | 3,787 |
Accrued compensation and related costs | |
Restructuring Reserve [Roll Forward] | |
Additions | 5,076 |
Adjustments to accruals | (372) |
Cash payments | (1,264) |
Ending balance | 3,782 |
Other accrued liabilities | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 472 |
Additions | 0 |
Adjustments to accruals | (467) |
Cash payments | 0 |
Ending balance | $ 5 |