Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 07, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Entity File Number | 1-10356 | ||
Entity Registrant Name | CRAWFORD & CO | ||
Entity Incorporation, State or Country Code | GA | ||
Entity Tax Identification Number | 58-0506554 | ||
Entity Address, Address Line One | 5335 Triangle Parkway | ||
Entity Address, City or Town | Peachtree Corners | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30092 | ||
City Area Code | 404 | ||
Local Phone Number | 300-1000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 235,362,286 | ||
Documents Incorporated by Reference | Portions of the Registrant's proxy statement for its 2021 annual shareholders' meeting, which proxy statement will be filed within 120 days of the Registrant's year end, are incorporated by reference into Part III hereof. | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Central Index Key | 0000025475 | ||
Document Fiscal Period Focus | FY | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Atlanta, Georgia | ||
Auditor Firm ID | 42 | ||
Class A Non-Voting | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock — $1.00 Par Value | ||
Trading Symbol | CRD-A | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 31,084,613 | ||
Class B Voting | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class B Common Stock — $1.00 Par Value | ||
Trading Symbol | CRD-B | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 20,811,962 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from Services: | |||
Revenues | $ 1,139,231 | $ 1,016,195 | $ 1,047,627 |
Costs and Expenses: | |||
Cost of services | 847,430 | 737,320 | 752,773 |
Selling, general, and administrative expenses | 244,850 | 218,952 | 227,170 |
Corporate interest expense, net of interest income | 6,559 | 7,923 | 10,774 |
Goodwill and intangible asset impairments | 0 | 17,674 | 17,484 |
Arbitration and claim settlements | 0 | 0 | 12,552 |
Restructuring and other costs, net | 0 | 8,133 | |
Gain on disposition of businesses, net | 0 | (13,763) | 0 |
Total Costs and Expenses | 1,098,839 | 976,239 | 1,020,753 |
Other (Expense) Gain | 3,472 | (868) | (3,237) |
(Loss) Income Before Income Taxes | 43,864 | 39,088 | 23,637 |
(Benefit) Provision for Income Taxes | 13,316 | 12,013 | 14,111 |
Net (Loss) Income | 30,548 | 27,075 | 9,526 |
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests | 144 | 1,221 | 2,959 |
Net (Loss) Income Attributable to Shareholders of Crawford & Company | $ 30,692 | $ 28,296 | $ 12,485 |
Class A Non-Voting | |||
(Loss) Earnings Per Share - Basic: | |||
(Loss) Earnings Per Share - Basic: | $ 0.58 | $ 0.54 | $ 0.27 |
(Loss) Earnings Per Share - Diluted: | |||
(Loss) Earnings Per Share - Diluted: | $ 0.57 | $ 0.54 | $ 0.26 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | |||
Weighted-average common shares outstanding, basic | 30,760 | 30,605 | 30,637 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||
Weighted-average common shares outstanding, diluted | 31,743 | 30,857 | 31,090 |
Cash Dividends Per Share: | |||
Cash Dividends Per Share | $ 0.24 | $ 0.19 | $ 0.28 |
Class B Voting | |||
(Loss) Earnings Per Share - Basic: | |||
(Loss) Earnings Per Share - Basic: | 0.58 | 0.52 | 0.19 |
(Loss) Earnings Per Share - Diluted: | |||
(Loss) Earnings Per Share - Diluted: | $ 0.57 | $ 0.52 | $ 0.19 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | |||
Weighted-average common shares outstanding, basic | 22,237 | 22,527 | 22,975 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||
Weighted-average common shares outstanding, diluted | 22,237 | 22,527 | 22,975 |
Cash Dividends Per Share: | |||
Cash Dividends Per Share | $ 0.24 | $ 0.17 | $ 0.20 |
Service | |||
Revenues from Services: | |||
Revenues | $ 1,102,032 | $ 982,492 | $ 1,005,802 |
Costs and Expenses: | |||
Cost of services | 810,231 | 703,617 | 710,948 |
Reimbursements | |||
Revenues from Services: | |||
Revenues | 37,199 | 33,703 | 41,825 |
Costs and Expenses: | |||
Cost of services | $ 37,199 | $ 33,703 | $ 41,825 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Interest income | $ 424 | $ 264 | $ 745 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 30,548 | $ 27,075 | $ 9,526 | |
Other Comprehensive Income: | ||||
Net foreign currency translation gain (loss), net of tax benefit of $0, $0 and $0, respectively | 9,024 | 4,281 | (180) | |
Amounts reclassified into net income for defined benefit pension plans, net of tax provision of $2,682, $2,686 and $3,432, respectively | 7,765 | 7,959 | 8,002 | |
Net unrealized gain (loss) on defined benefit plans arising during the year, net of tax (provision) benefit of ($649), $5,333, and $236, respectively | 1,618 | (4,966) | 1,036 | |
Other Comprehensive Income | 18,407 | 7,274 | [1] | 8,858 |
Comprehensive Income | 48,955 | 34,349 | 18,384 | |
Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | 152 | 1,535 | 3,641 | |
Comprehensive Income Attributable to Shareholders of Crawford & Company | $ 49,107 | $ 35,884 | $ 22,025 | |
[1] | The total net income presented in the consolidated statement of shareholders' investment for the years ended December 31, 2019 and December 31, 2020 excludes $ 3,191 and $ 2,258 respectively, in net loss attributable to the redeemable noncontrolling interests. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
OCI, Tax on foreign currency translation loss (gain) | $ 0 | $ 0 | $ 0 |
OCI, Tax provision on reclassification adjustments to net income for pension plans | 2,691 | 2,693 | 2,682 |
OCI, Tax (provision) benefit on unrealized gains (losses) arising during the year for pension plans | $ (541) | $ 1,655 | $ 649 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 53,228,000 | $ 44,656,000 |
Accounts receivable, less allowance for expected credit losses of $8,768 and $9,464, respectively | 134,458,000 | 123,060,000 |
Unbilled revenues, at estimated billable amounts | 118,722,000 | 103,528,000 |
Income taxes receivable | 4,936,000 | 1,269,000 |
Prepaid expenses and other current assets | 34,576,000 | 29,490,000 |
Total Current Assets | 345,920,000 | 302,003,000 |
Net Property and Equipment | 33,721,000 | 36,402,000 |
Other Assets: | ||
Right-of-use lease assets | 99,369,000 | 109,315,000 |
Goodwill | 116,526,000 | 66,537,000 |
Intangible assets arising from business acquisitions, net | 97,571,000 | 71,176,000 |
Capitalized software costs, net | 75,802,000 | 71,021,000 |
Deferred income tax assets | 21,266,000 | 25,595,000 |
Other noncurrent assets | 62,464,000 | 70,935,000 |
Total Other Assets | 472,998,000 | 414,579,000 |
Total assets acquired | 852,639,000 | 752,984,000 |
Current Liabilities: | ||
Short Term Borrowings | 10,704,000 | 1,837,000 |
Accounts payable | 48,470,000 | 41,544,000 |
Accrued compensation and related costs | 96,018,000 | 81,848,000 |
Self-insured risks | 13,222,000 | 11,390,000 |
Income taxes payable | 1,200,000 | 5,822,000 |
Operating lease liability | 25,238,000 | 32,745,000 |
Other accrued liabilities | 76,884,000 | 40,375,000 |
Deferred revenues | 32,119,000 | 27,233,000 |
Total Current Liabilities | 303,855,000 | 242,794,000 |
Noncurrent Liabilities: | ||
Long-term debt and finance leases, less current installments | 164,315,000 | 111,758,000 |
Deferred revenues | 23,786,000 | 24,136,000 |
Accrued pension liabilities | 17,892,000 | 53,886,000 |
Operating lease liability | 88,408,000 | 93,228,000 |
Other noncurrent liabilities | 42,986,000 | 40,254,000 |
Total Noncurrent Liabilities | 337,387,000 | 323,262,000 |
Shareholders' Investment: | ||
Additional paid-in capital | 74,229,000 | 67,193,000 |
Retained earnings | 266,369,000 | 265,245,000 |
Accumulated other comprehensive loss | (180,441,000) | (198,856,000) |
Shareholders' Investment Attributable to Shareholders of Crawford & Company | 211,965,000 | 186,939,000 |
Noncontrolling interests | (568,000) | (11,000) |
Total Shareholders' Investment | 211,397,000 | 186,928,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 852,639,000 | 752,984,000 |
Class A Non-Voting | ||
Shareholders' Investment: | ||
Class A common stock, $1.00 par value, 50,000 shares authorized; 30,847 and 30,610 shares issued and outstanding, respectively | 30,996,000 | 30,847,000 |
Class B Voting | ||
Shareholders' Investment: | ||
Class A common stock, $1.00 par value, 50,000 shares authorized; 30,847 and 30,610 shares issued and outstanding, respectively | $ 20,812,000 | $ 22,510,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Allowance for doubtful accounts | $ 8,768 | $ 9,464 |
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) | 30,996,000 | 30,996,000 |
Shares outstanding (shares) | 30,847,000 | |
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) | 20,812,000 | 22,510,000 |
Shares outstanding (shares) | 20,812,000 | 22,510,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | |||
Net Income | $ 30,548,000 | $ 27,075,000 | $ 9,526,000 |
Reconciliation of net income to net cash provided by operating activities: | |||
Depreciation and amortization | 40,176,000 | 40,111,000 | 40,513,000 |
Goodwill impairment | 0 | 17,674,000 | 17,484,000 |
Deferred income taxes | (2,992,000) | (9,005,000) | 3,040,000 |
Gain on disposition of businesses, net | 0 | (13,763,000) | 0 |
Stock-based compensation costs | 7,585,000 | 4,384,000 | 4,109,000 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Accounts receivable, net | (5,475,000) | 5,063,000 | 5,922,000 |
Unbilled revenues, net | (9,979,000) | (3,762,000) | 5,302,000 |
Accrued or prepaid income taxes | (7,232,000) | 9,311,000 | (5,985,000) |
Accounts payable and accrued liabilities | 13,470,000 | 31,775,000 | (6,946,000) |
Deferred revenues | 3,562,000 | (1,074,000) | (281,000) |
Accrued retirement costs | (15,478,000) | (10,790,000) | 3,387,000 |
Prepaid expenses and other operating activities | 136,000 | (3,821,000) | (855,000) |
Net cash provided by operating activities | 54,321,000 | 93,178,000 | 75,216,000 |
Cash Flows from Investing Activities: | |||
Acquisitions of property and equipment | (9,225,000) | (14,226,000) | (8,688,000) |
Capitalization of computer software costs | (21,729,000) | (23,154,000) | (12,436,000) |
Cash proceeds from disposition of business line | 0 | 19,968,000 | 0 |
Payments for business acquisitions, net of cash acquired | (46,398,000) | (9,983,000) | (2,296,000) |
Proceeds from settlement of life insurance policies | 6,526,000 | 0 | 0 |
Other investing activities | 0 | 358,000 | 0 |
Net cash used in investing activities | (70,826,000) | (27,037,000) | (23,420,000) |
Cash Flows from Financing Activities: | |||
Cash dividends paid | (12,663,000) | (9,645,000) | (13,171,000) |
Payments related to shares received for withholding taxes under stock-based compensation plans | (1,411,000) | (476,000) | (827,000) |
Proceeds from shares purchased under employee stock-based compensation plans | 1,648,000 | 811,000 | 2,104,000 |
Repurchases of common stock | (19,134,000) | (2,666,000) | (26,210,000) |
Payments of contingent consideration on acquisitions | (1,544,000) | 0 | 0 |
Payments for equity investments | (106,000) | (602,000) | 0 |
Increases in short-term and revolving credit facility borrowings | 113,312,000 | 108,142,000 | 66,197,000 |
Payments on short-term and revolving credit facility borrowings | (52,306,000) | (169,675,000) | (80,948,000) |
Payments on finance lease obligations | (432,000) | (62,000) | (93,000) |
Capitalized loan costs | (2,302,000) | 0 | 0 |
Dividends paid to noncontrolling interests | (405,000) | (196,000) | (458,000) |
Net cash provided by (used in) financing activities | 24,657,000 | (74,369,000) | (53,406,000) |
Effects of exchange rate changes on cash and cash equivalents | 881,000 | 1,082,000 | 293,000 |
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 9,033,000 | (7,146,000) | (1,317,000) |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year | 44,656,000 | 51,802,000 | 53,119,000 |
Cash, Cash Equivalents, and Restricted Cash at End of Year | $ 53,689,000 | $ 44,656,000 | $ 51,802,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class Of Stock [Line Items] | |||
Net income (loss) attributable to redeemable noncontrolling interest | $ 2,258 | $ 3,191 | |
Class A Non-Voting | |||
Class Of Stock [Line Items] | |||
Cash dividends paid (in dollars per share) | $ 0.24 | $ 0.19 | $ 0.28 |
Class B Voting | |||
Class Of Stock [Line Items] | |||
Cash dividends paid (in dollars per share) | $ 0.24 | $ 0.17 | $ 0.20 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Investment - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ 186,928 | $ 162,567 | $ 175,446 | ||
Net income (loss) | [1] | 30,548 | 29,333 | 12,717 | |
Other comprehensive income (loss) | 18,407 | 7,274 | [1] | 8,858 | |
Cash dividends paid | (12,663) | (9,645) | (13,171) | ||
Stock-based compensation | 7,585 | 4,384 | 4,109 | ||
Repurchases of common stock | (19,134) | (2,666) | (26,210) | ||
Shares issued in connection with stock-based compensation plans, net | 237 | 335 | 1,276 | ||
Decrease in value of noncontrolling interest due to acquisition | (106) | (101) | |||
Increase in value of noncontrolling interest due to disposition | 3,750 | ||||
Dividends paid to noncontrolling interests | (405) | (196) | (458) | ||
Ending balance | 211,397 | 186,928 | 162,567 | ||
Adoption of Topic 326 | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ (607) | ||||
Ending balance | (607) | ||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | ||||
Common Stock | Class A Non-Voting | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ 30,847 | 30,610 | 30,927 | ||
Repurchases of common stock | (531) | (155) | (1,103) | ||
Shares issued in connection with stock-based compensation plans, net | 680 | 392 | 786 | ||
Increase in value of noncontrolling interest due to disposition | 0 | ||||
Ending balance | $ 30,996 | 30,847 | 30,610 | ||
Common Stock | Class A Non-Voting | Adoption of Topic 326 | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | ||||
Common Stock | Class B Voting | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ 22,510 | 22,671 | 24,408 | ||
Repurchases of common stock | (1,698) | (161) | (1,737) | ||
Increase in value of noncontrolling interest due to disposition | 0 | ||||
Ending balance | $ 20,812 | 22,510 | 22,671 | ||
Common Stock | Class B Voting | Adoption of Topic 326 | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | ||||
Additional Paid-In Capital | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ 67,193 | 63,392 | 58,793 | ||
Stock-based compensation | 7,585 | 4,384 | 4,109 | ||
Repurchases of common stock | 0 | ||||
Shares issued in connection with stock-based compensation plans, net | (443) | (57) | 490 | ||
Decrease in value of noncontrolling interest due to acquisition | (106) | (526) | 0 | ||
Increase in value of noncontrolling interest due to disposition | 0 | ||||
Ending balance | $ 74,229 | 67,193 | 63,392 | ||
Additional Paid-In Capital | Adoption of Topic 326 | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | ||||
Retained Earnings | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ 265,245 | 249,551 | 273,607 | ||
Net income (loss) | [1] | 30,692 | 28,296 | 12,485 | |
Cash dividends paid | (12,663) | (9,645) | (13,171) | ||
Repurchases of common stock | (16,905) | (2,350) | (23,370) | ||
Shares issued in connection with stock-based compensation plans, net | 0 | ||||
Increase in value of noncontrolling interest due to disposition | 0 | ||||
Ending balance | 266,369 | 265,245 | 249,551 | ||
Retained Earnings | Adoption of Topic 326 | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ (607) | ||||
Ending balance | (607) | ||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | ||||
AOCL attributable to shareholders of Crawford & Company | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ (198,856) | (206,907) | (216,447) | ||
Other comprehensive income (loss) | 18,415 | 7,588 | 9,540 | ||
Decrease in value of noncontrolling interest due to acquisition | 576 | ||||
Increase in value of noncontrolling interest due to disposition | (113) | ||||
Ending balance | $ (180,441) | (198,856) | (206,907) | ||
AOCL attributable to shareholders of Crawford & Company | Adoption of Topic 326 | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | ||||
Shareholders' Investment Attributable to Shareholders of Crawford & Company | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ 186,939 | 159,317 | 171,288 | ||
Net income (loss) | [1] | 30,692 | 28,296 | 12,485 | |
Other comprehensive income (loss) | 18,415 | 7,588 | 9,540 | ||
Cash dividends paid | (12,663) | (9,645) | (13,171) | ||
Stock-based compensation | 7,585 | 4,384 | 4,109 | ||
Repurchases of common stock | (19,134) | (2,666) | (26,210) | ||
Shares issued in connection with stock-based compensation plans, net | 237 | 335 | 1,276 | ||
Decrease in value of noncontrolling interest due to acquisition | (106) | 50 | 0 | ||
Increase in value of noncontrolling interest due to disposition | (113) | ||||
Ending balance | 211,965 | 186,939 | 159,317 | ||
Shareholders' Investment Attributable to Shareholders of Crawford & Company | Adoption of Topic 326 | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ (607) | ||||
Ending balance | (607) | ||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | ||||
Noncontrolling Interests | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Beginning balance | $ (11) | 3,250 | 4,158 | ||
Net income (loss) | [1] | (144) | 1,037 | 232 | |
Other comprehensive income (loss) | (8) | (314) | (682) | ||
Decrease in value of noncontrolling interest due to acquisition | (151) | ||||
Increase in value of noncontrolling interest due to disposition | (3,637) | ||||
Dividends paid to noncontrolling interests | (405) | (196) | (458) | ||
Ending balance | $ (568) | $ (11) | $ 3,250 | ||
Noncontrolling Interests | Adoption of Topic 326 | |||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | ||||
[1] | The total net income presented in the consolidated statement of shareholders' investment for the years ended December 31, 2019 and December 31, 2020 excludes $ 3,191 and $ 2,258 respectively, in net loss attributable to the redeemable noncontrolling interests. |
Significant Accounting and Repo
Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting and Reporting Policies | 1. Significant Accounting and Reporting Policies Nature of Operations Based in Atlanta, Georgia, Crawford & Company ("Crawford" or "the Company") is the world's largest publicly listed independent provider of claims management and outsourcing solutions to carriers, brokers and corporations with an expansive global network serving clients in more than 70 countries. Shares of the Company's two classes of common stock are traded on the New York Stock Exchange ("NYSE") under the symbols CRD-A and CRD-B, respectively. The Company's two classes of stock are substantially identical, except with respect to voting rights and the Company's ability to pay greater cash dividends on the non-voting Class A Common Stock than on the voting Class B Common Stock, subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of Class A Common Stock must receive the same type and amount of consideration as holders of Class B Common Stock, unless different consideration is approved by the holders of 75 % of the Class A Common Stock, voting as a class. The Company's website is www.crawco.com. The information contained on, or hyperlinked from, the Company's website is not a part of, and is not incorporated by reference into, this report. Principles of Consolidation The accompanying consolidated financial statements were prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") and include the accounts of the Company, its majority-owned subsidiaries, and variable interest entities in which the Company is deemed to be the primary beneficiary. Significant intercompany transactions are eliminated in consolidation. 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 in accordance with the provisions of Accounting Standards Codification ("ASC") 810, "Consolidation," in order to provide sufficient time for accumulation of their results. Accordingly, the Company's December 31, 2021, 2020, and 2019 consolidated financial statements include the financial position of such operations as of October 31, 2021 and 2020, respectively, and the results of their operations and cash flows for the fiscal periods ended October 31, 2021, 2020, and 2019, respectively. The Company has controlling ownership interests in several entities that are not wholly-owned by the Company. The financial results and financial positions of these controlled entities are included in the Company's consolidated financial statements, including the controlling interests, noncontrolling interests, and redeemable noncontrolling interests. The noncontrolling interests and redeemable noncontrolling interests represent the equity interests in these entities that are not attributable, either directly or indirectly, to the Company. On the Company's Consolidated Statements of Operations, net income or loss is separately attributed to the controlling interests and noncontrolling interests and redeemable noncontrolling interests. 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 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. The Company consolidates the results of a variable interest entity ("VIE") when it is determined to be the primary beneficiary. In accordance with GAAP, in determining whether the Company is the primary beneficiary of a VIE for financial reporting purposes, it considers whether it has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether it has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. The Company sold its 51 % interest in Lloyd Warwick International Limited ("LWI") to a third party in June 2020. Prior to the sale, LWI was considered a VIE of the Company. As the primary beneficiary of LWI, the Company consolidated the results of LWI because of its controlling ownership interest and because Crawford had the obligation to absorb LWI's losses through the additional financial support that Crawford may be obligated to provide. As a result of the sale, LWI is no longer considered a VIE of the Company, and the Company no longer consolidates the results of LWI nor is obligated to provide financial support to LWI. See Note 3, “Business Acquisitions and Dispositions” of our accompanying consolidated financial statements for further discussion related to the sale of the Company’s interest in LWI. 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 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 December 31, 2021 and 2020 , the liabilities of this deferred compensation plan were $ 7,060,000 and $ 7,961,000 , 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 $ 9,925,000 and $ 16,323,000 , respectively. These liabilities and assets are included in "Other noncurrent liabilities" and "Other noncurrent assets" on the Company's Consolidated Balance Sheets, respectively. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company has not applied for governmental loans from the CARES Act or any other governmental programs to support the Company’s U.S. operations. The Company took advantage of certain aspects of the CARES Act such as the deferral of payroll tax deposits during 2020. The Company deferred payroll tax filings of $ 13,000,000 in 2020 as allowed by the CARES Act, and paid $ 6,500,000 of that deferred total in 2021. The Canadian government enacted the Canada Emergency Wage Subsidy (“CEWS”) in 2020 to provide a wage subsidy to employers that suffered reductions in revenue resulting from the COVID-19 pandemic. The Company met the eligibility criteria to receive the wage subsidy in 2020 and 2021. The wage subsidy is included in "Costs of services provided, before reimbursements” or “Selling, general, and administrative expenses” on the Consolidated Statements of Operations, depending on the location of the employees, and is recorded as a reduction of compensation expense. In 2021 and 2020, the Company recognized $ 5,850,000 and $ 13,830,000 , respectively, as a reduction of compensation expense as a result of this subsidy. Reportable Segment Change As described in Note 13, in January 2021, the Company reorganized its global service line structure to consist of Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. Certain prior year amounts among the Company's reportable segments have been reclassified to conform to the current presentation. These reclassifications had no effect on the Company's reported consolidated results. Management's 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, 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. Actual results could differ materially from those estimates. Revenue Recognition Revenues are recognized when control of the promised services are 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, it has an unconditional right to consideration as outlined in the Company's contracts. The Company's Crawford Loss Adjusting segment generates revenue for claims management and adjusting services globally to insurance companies and self-insured entities related to property and casualty losses caused by physical damage to commercial and residential real property, certain types of personal property and marine losses. This segment also includes the Global Technical Services service line, which 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. The Company's Crawford TPA Solutions segment is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Company's Crawford Platform Solutions segment principally generates revenues through its Contractor Connection and Networks service lines. The Contractor Connection service line generates revenue through its independently managed contractor network, with approximately 6,000 credentialed residential and commercial contractors. See Note 2, “Revenue Recognition” for further discussion on the Company’s revenue recognition policies. Intersegment sales are recorded at cost and are not material. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. The fair value of cash and cash equivalents approximates carrying value due to their short-term nature. At December 31, 2021 and December 31, 2020 , cash and cash equivalents included time deposits of approximately $ 1,054,000 and $ 1,473,000 , respectively, that were in financial institutions outside the U.S. Cash balances that are legally restricted as to usage or withdrawal are separately included in "Prepaid expenses and other current assets" within the Consolidated Balance Sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown within the Consolidated Statement of Cash Flows: Year Ended December 31, 2021 2020 2019 (In thousands) Cash and cash equivalents $ 53,228 $ 44,656 $ 51,802 Restricted cash within prepaid expenses and other current assets 461 — — Total cash, cash equivalents and restricted cash $ 53,689 $ 44,656 $ 51,802 Accounts Receivable and Allowance for Expected Credit Losses The Company extends credit based on an evaluation of a client's financial condition and, generally, collateral is not required. Accounts receivable are typically due upon receipt of the invoice and are stated on the Company's Consolidated Balance Sheets at amounts due from clients net of an estimated allowance for expected credit losses. Accounts outstanding longer than the contractual payment terms are considered past due. The fair value of accounts receivable approximates book value due to their short-term contractual stipulations. The Company maintains an allowance for expected credit losses resulting primarily from the inability of clients to make required payments. Such losses are accounted for as bad debt expense. These allowances are established using historical write-off or adjustment information to project future experience and by considering the current creditworthiness of clients, any known specific collection problems, and an assessment of current industry and economic conditions. Actual experience may differ significantly from historical or expected loss results. The Company writes off accounts receivable when they become uncollectible, and any payments subsequently received are accounted for as recoveries. A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2021, 2020, and 2019 is as follows: 2021 2020 2019 (In thousands) Allowance for credit losses, January 1 $ 9,464 $ 9,348 $ 9,625 Add/ (Deduct): Adoption of Topic 326 — ( 464 ) — Provision for bad debt expense 448 1,504 1,588 Write-offs, net of recoveries ( 958 ) ( 908 ) ( 81 ) Adjustments for business acquisitions and dispositions ( 110 ) ( 111 ) — Currency translation and other changes ( 76 ) 95 ( 1,784 ) Allowance for credit losses, December 31 $ 8,768 $ 9,464 $ 9,348 Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived Assets 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 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, 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 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 2021, the Company performed its goodwill impairment testing. The estimated fair value of each reporting unit tested exceed their carrying value by a significant margin. The Company intends to continue to monitor the performance of its 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 our reporting units utilizing the income approach include the discount rate and the terminal growth rate. The discount rates utilized in estimating the fair value of our reporting units in 2021 range between 12.5 % and 15.0 %, 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. During the first quarter of 2020, the Company identified a goodwill impairment indicator in its former 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 the former Crawford Claims Solutions reporting unit to $ 0 as of March 31, 2020. During the fourth quarter of 2019, the Company performed its annual impairment testing on all reporting units. The Company recognized a non-cash goodwill impairment charge in 2019 of $ 17,484,000 related to the valuation of its former Crawford Claims Solutions segment, due to lower forecasts in that reporting unit. 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. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The Company depreciates the cost of property and equipment, including assets recorded under finance leases, over the shorter of the remaining lease term or the estimated useful lives of the related assets, primarily using the straight-line method. The estimated useful lives for property and equipment classifications are as follows: Classification Estimated Useful Lives Furniture and fixtures 3 - 10 years Data processing equipment 3 - 5 years Automobiles and other 3 - 4 years Buildings and improvements 7 - 40 years Property and equipment, including assets under finance leases, consisted of the following at December 31, 2021 and 2020: December 31, 2021 2020 (In thousands) Land $ — $ 338 Buildings and improvements 32,053 32,087 Furniture and fixtures 26,196 28,264 Data processing equipment 55,058 64,781 Automobiles 271 314 Total property and equipment 113,578 125,784 Less accumulated depreciation ( 79,857 ) ( 89,382 ) Net property and equipment $ 33,721 $ 36,402 At December 31, 2021, an office building in Canada and related property and equipment with a net carrying value of $ 1,209,000 was classified as held for sale. This group of assets was included as part of "Prepaid expenses and other current assets" within the Consolidated Balance Sheets. Depreciation on property and equipment, including property under finance leases and amortization of leasehold improvements, was $ 12,481,000 , $ 11,750,000 , and $ 11,363,000 for the years ended December 31, 2021, 2020, and 2019 , respectively. Capitalized Software Capitalized software costs reflect costs related to internally developed or purchased software used by the Company that has expected future economic benefits. Certain internal and external costs incurred during the application development stage are capitalized. Costs incurred during the preliminary project and post implementation stages, including training and maintenance costs, are expensed as incurred. The majority of these capitalized software costs consist of internal payroll costs and external payments for software development, purchases and related services. These capitalized software costs are typically amortized over periods ranging from three to ten years, depending on the estimated life of each software application. Amortization expense for capitalized software was $ 16,667,000 , $ 16,709,000 , and $ 17,873,000 for the years ended December 31, 2021, 2020, and 2019 , respectively. Self-Insured Risks The Company self-insures certain risks consisting primarily of professional liability, auto liability, and employee medical, disability, and workers' compensation liability. Insurance coverage is obtained for catastrophic property and casualty exposures, including professional liability on a claims-made basis, and those risks required to be insured by law or contract. Most of these self-insured risks are in the U.S. Provisions for claims under the self-insured programs are made based on the Company's estimates of the aggregate liabilities for claims incurred, including estimated legal fees, losses that have occurred but have not been reported to the Company, and for adverse developments on reported losses. The estimated liabilities are calculated based on historical claims experience, the expected lives of the claims, and other factors considered relevant by management. Changes in these estimates may occur as additional information becomes available. The Company believes its provisions for self-insured losses are adequate to cover the expected cost of losses incurred. However, these provisions are estimates and amounts ultimately settled may be significantly greater or less than the provisions established. The estimated liabilities for claims incurred under the Company's self-insured workers' compensation and employee disability programs are discounted at the prevailing risk-free interest rate for U.S. government securities of an appropriate duration. All other self-insured liabilities are undiscounted. At December 31, 2021 and 2020 , accrued liabilities for self-insured risks totaled $ 26,226,000 and $ 25,004,000 , respectively, including current liabilities of $ 13,222,000 and $ 11,390,000 , respectively. The noncurrent liabilities are included in "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets. Income Taxes The Company accounts for certain income and expense items differently for financial reporting and income tax purposes. Provisions for deferred taxes are made in recognition of these temporary differences. The most significant differences relate to accrued compensation, pension plans, self-insurance, and depreciation and amortization. For financial reporting purposes, the provision for income taxes is the sum of income taxes both currently payable and payable on a deferred basis. Currently payable income taxes represent the liability related to the income tax returns for the current year, while the net deferred tax expense or benefit represents the change in the balance of deferred income tax assets or liabilities as reported on the Company's Consolidated Balance Sheets that are not related to balances in "Accumulated other comprehensive loss." The changes in deferred income tax assets and liabilities are determined based upon changes in the differences between the basis of assets and liabilities for financial reporting purposes and the basis of assets and liabilities for income tax purposes, measured by the enacted statutory tax rates in effect for the year in which the Company estimates these differences will reverse. The Company must estimate the timing of the reversal of temporary differences, as well as whether taxable income in future periods will be sufficient to fully recognize any gross deferred tax assets. A valuation allowance is provided when it is deemed more-likely-than-not that some portion or all of a deferred tax asset will not be realized. Other factors which influence the effective tax rate used for financial reporting purposes include changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits. See Note 7, "Income Taxes" for further discussion. Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI in the year the tax is incurred. Sales and Other Taxes In certain jurisdictions, both in the U.S. and internationally, various governments and taxing authorities require the Company to assess and collect sales and other taxes, such as value added taxes, on certain services that the Company renders and bills to its customers. The majority of the Company's revenues are not currently subject to these types of taxes. These taxes are not recorded as additional revenues or expenses in the Company's Consolidated Statements of Operations, but are recorded on the Consolidated Balance Sheets as pass-through amounts until remitted. Foreign Currency Foreign currency transactions for the years ended December 31, 2021, 2020 and 2019 resulted in net losses of $ 515,000 , $ 219,000 and $ 243,000 , respectively. For operations outside the U.S. whose functional currency is other than the U.S. dollar, results of operations and cash flows are translated into U.S. dollars at average exchange rates during the period, and assets and liabilities are translated at end-of-period exchange rates. The resulting translation adjustments, on a net basis, are included in "Other Comprehensive Income" in the Company's Consolidated Statements of Comprehensive Income, and the accumulated translation adjustment is reported as a component of "Accumulated other comprehensive loss" in the Company's Consolidated Balance Sheets. Advertising Costs Advertising costs are expensed in the period in which the costs are incurred. Advertising expenses w ere $ 877,000 , $ 990,000 , and $ 2,394,000 , respectively, for the years ended December 31, 2021, 2020 and 2019 . As several conventions were cancelled as a result of the COVID-19 pandemic, the Company’s advertising costs decreased in 2020 and 2021. 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 years ended December 31, 2021 and 2020. 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 adopted this guidance on January 1, 2021 with no material impact on its disclosures related to its retirement plans. 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. The Company adopted this guidance on January 1, 2021 with no material impact on its results of operations, financial condition or cash flows. Pending Adoption of Recently Issued Accounting Standards Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is currently assessing the impact of the adoption of the new guidance. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Revenue from Contracts with Customers Revenues are recognized when control of the promised services are 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 . The Company's Crawford Loss Adjusting segment generates revenue for claims management services provided to insurance companies and self-insured entities related to property and casualty losses caused by physical damage to commercial and residential real property and certain types of personal property. This segment also 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. The Company charges on a time and expense incurred basis or 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 the 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. 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 Loss Adjusting revenues before reimbursements disaggregated by geography for the years ended December 31, 2021 and 2020. (In thousands) Year Ended December 31, 2021 2020 U.S. $ 158,451 $ 128,342 U.K. 102,326 105,446 Canada 54,675 55,552 Australia 72,751 69,407 Europe 52,488 48,732 Rest of World 34,896 31,012 Total Crawford Loss Adjusting Revenues before Reimbursements $ 475,587 $ 438,491 The Company's 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 readily available from 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 are 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 Legal Services and Risk Management Information Services. For non-claim services, revenue is recognized over time as services are provided and control of these services are 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 completion of 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. See further discussion below related to deferred revenues related to Claims Management. 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 are 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 Management services also includes medical bill review services, which 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 table presents Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2021 and 2020. Year Ended December 31, 2021 Year Ended December 31, 2020 (in thousands) Claims Medical Total Claims Medical Total U.S. $ 151,342 $ 149,693 $ 301,035 $ 143,944 $ 149,504 $ 293,448 U.K. 22,693 — 22,693 16,530 — 16,530 Canada 18,307 — 18,307 22,673 — 22,673 Europe and Rest of World 55,929 — 55,929 38,741 — 38,741 Total Crawford TPA Solutions Revenues before Reimbursements $ 248,271 $ 149,693 $ 397,964 $ 221,888 $ 149,504 $ 371,392 The Company's Crawford Platform Solutions segment principally generates revenues through its Contractor Connection and Networks service lines. 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 Networks service line generates revenues for claims management services provided to insurance companies and self-insured entities related to property, casualty and catastrophic losses. Networks also generates revenue by providing on-demand inspection, verification and other task specific field services for businesses and consumers as well as by providing subrogation services. Revenue for claims management and inspection, verification, and other services 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 the 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. Revenues for subrogation claims management and recovery services are recognized at a point in time. These methods of revenue recognition are the most accurate depiction of the transfer of the claims management services to the customer. The following table presents Crawford Platform Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2021 and 2020. Year Ended December 31, 2021 Year Ended December 31, 2020 (in thousands) Contractor Network Business Subro- Total Contractor Network Business Subro- Total U.S. $ 70,250 $ 124,727 $ 4,322 $ 199,299 $ 71,005 $ 78,025 $ — $ 149,030 U.K. 9,624 20 — 9,644 6,612 86 — 6,698 Canada 7,644 4,319 — 11,963 6,080 4,857 — 10,937 Europe and Rest of World 1,809 5,766 — 7,575 977 4,967 — 5,944 Total Crawford Platform Solutions Revenues before Reimbursements $ 89,327 $ 134,832 $ 4,322 $ 228,481 $ 84,674 $ 87,935 $ — $ 172,609 In the normal course of business, the Company incurs 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 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 types 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 their 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 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 we expect and are 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 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. As of December 31, 2021 , deferred revenues related to lifetime claim handling arrangements approximated $ 38.0 million. 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 99 % 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 timing of revenue recog nition 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, 2021 and the significant activity affecting deferred revenues during the year ended December 31, 2021: (In Thousands) Customer Contract Liabilities: Deferred Revenue Balance at January 1, 2021 $ 51,369 Annual additions 78,028 Revenue recognized from prior periods ( 30,108 ) Revenue recognized from current year additions ( 40,897 ) Deferred revenue from acquisition 659 Other adjustments ( 3,146 ) Balance as of December 31, 2021 $ 55,905 Remaining Performance Obligations As of December 31, 2021, the Company had $ 89,553,000 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 ou r remaining performance obligations as revenues within one year and the remaining balance thereafter. See the discussion below regarding the practical expedients elected for the disclosure of remaining performance obligations. 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. As a result, this remuneration would not meet the criteria to be capitalized and presented as a contract asset on the Company's 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. |
Business Acquisitions and Dispo
Business Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Acquisitions and Dispositions | 3. Business Acquisitions and Dispositions Crawford Compliance Inc. Disposition On June 1, 2020, the Company sold its 51 % interest in Crawford Compliance Inc. to a third party in exchange for a note receivable. The Company recognized a loss on the disposal of this entity of $ 912,000 in 2020. The results of Crawford Compliance Inc. were not material to the Company. Lloyd Warwick International Disposition On June 12, 2020, the Company sold its 51 % interest in Lloyd Warwick International (“LWI”) to a third party for cash proceeds of $ 19,600,000 and payment of $ 3,600,000 to settle intercompany indebtedness. The Company recognized an additional $ 700,000 related to net working capital adjustments under the terms of the acquisition agreement, which increased the purchase price to $ 20,300,000 . The Company recognized a total gain of $ 14,700,000 ($ 11,700,000 net of tax) on the disposition for the year ended December 31, 2020. WeGoLook, LLC Acquisition On July 21, 2020, the Company acquired the remaining 15 % membership interests of WeGoLook, LLC for $ 310,000 . The Company accounted for this subsequent acquisition as an equity transaction in accordance with ASC 810-10, “Consolidation”. The non-compete agreements with the former minority members were terminated under the terms of the purchase agreement. As a result, the Company recognized $ 1,100,000 of accelerated amortization on the non-compete agreement in 2020. Crawford Carvallo Acquisition On October 1, 2020, the Company acquired most of the remaining 85 % equity interests in Crawford Carvallo ("Carvallo") and its subsidiaries. Crawford Carvallo is a leading provider of loss adjusting, claims management solutions and legal services in Chile. The Company held a 15 % interest in Crawford Carvallo prior to this acquisition. In 2020, the Company recognized a pretax gain of $ 1,099,000 from the remeasurement of the previously held noncontrolling interest to the $ 3,047,000 fair value. The acquisition was funded primarily through additional borrowings under the Company's credit facility. The purchase price includes an initial cash payment of $ 11,583,000 and a maximum of $ 11,700,000 payable over the next six years based on achievement of certain EBITDA performance goals as set forth in the purchase agreement. The acquisition accounting is based on the fair value of the acquisition consideration transferred to the sellers, assets acquired and liabilities assumed as of the acquisition date. At the acquisition date, the fair value of the contingent consideration payable was estimated to be $ 5,808,000 . At December 31, 2021, there were no material changes in the range of expected outcomes or the fair value of the contingent consideration from the acquisition date. Significant assumptions and estimates used in the valuation of intangible assets and contingent consideration included, but were not limited to future expected cash flows, including projected revenues and expenses, estimated customer attrition rates, and the applicable discount rates. These assumptions and estimates were level 3 inputs and based on assumptions that the Company believes to be reasonable. However, actual results may differ from these estimates. Final acquisition accounting for this acquisition was completed as of December 31, 2021. Adjustments recorded during the year ended December 31, 2021 include an additional goodwill and deferred tax liability of $ 2,237,000 . The financial results of certain of the Company’s international subsidiaries, including Crawford Carvallo, are included in the Company’s consolidated financial statements on a two-month delayed basis. Crawford Carvallo reported $ 21,185,000 of revenue in the Loss Adjusting and TPA Solutions segments during the year ended December 31, 2021. Goodwill is attributable to the synergies of the work force in place and business resources as a result of the combination of the companies. The Company does not expect that goodwill attributable to the acquisition will be deductible for tax purposes. HBA Group Acquisition On November 1, 2020, the Company acquired 100 % of HBA Group and its subsidiaries ("HBA") in Australia. HBA is a legal services provider that will complement the Company’s Crawford TPA Solutions segment in Australia. The acquisition was funded primarily through additional borrowings under the Company's credit facility. The purchase price includes an initial cash payment of $ 4,026,000 and a maximum of $ 3,200,000 payable over the next four years based on achievement of certain revenue and EBITDA performance goals as set forth in the purchase agreement. The acquisition accounting is based on the fair value of the acquisition consideration transferred to the sellers, assets acquired and liabilities assumed as of the acquisition date. At the acquisition date, the fair value of the contingent consideration payable was estimated to be $ 2,409,000 . At December 31, 2021, there were no material changes in the range of expected outcomes or the fair value of the contingent consideration from the acquisition date. Significant assumptions and estimates used in the valuation of intangible assets and contingent consideration included, but were not limited to future expected cash flows, including projected revenues and expenses, estimated customer attrition rates, and the applicable discount rates. These assumptions and estimates were level 3 inputs and based on assumptions that the Company believes to be reasonable. However, actual results may differ from these estimates. The Company is in the process of finalizing the review of deferred tax liabilities in connection with the acquisition. As additional information becomes available, the Company may further revise its preliminary acquisition accounting during the remainder of the measurement period, which will not exceed 12 months from the date of acquisition. The Company may update certain assumptions and inputs to incorporate additional information obtained subsequent to the closing of the transaction related to facts and circumstances that existed as of the acquisition date. The financial results of certain of the Company’s international subsidiaries, including HBA, are included in the Company’s consolidated financial statements on a two-month delayed basis. HBA reported $ 8,800,000 of revenue in the TPA Solutions segment during the year ended December 31, 2021. Goodwill is attributable to the synergies of the work force in place and business resources as a result of the combination of the companies. The Company does not expect that goodwill attributable to the acquisition will be deductible for tax purposes. edjuster Inc. Acquisition On August 23, 2021, the Company acquired 100 % of edjuster Inc. in Canada and its U.S. subsidiary (collectively "edjuster"). Edjuster is a technology-enabled, end-to-end contents services provider and platform. This acquisition will enable the Company to expand its capability in the North American claims contents services market. The acquisition was funded primarily through additional borrowings under the Company’s credit facility. The purchase price included an initial cash payment of $ 20,875,000 , a working capital adjustment payable of $ 433,000 , and an earn-out potential up to $ 13,334,000 based on the achievement of certain EBITDA performance goals over two one-year periods, beginning January 2022. The acquisition accounting is based on the fair value of the acquisition consideration transferred to the sellers, assets acquired and liabilities assumed as of the acquisition date. At the acquisition date, the fair value of the contingent consideration payable was estimated to be $ 2,437,000 . At December 31, 2021, there were no material changes in the range of expected outcomes and the fair value of the contingent consideration from the acquisition date. Significant assumptions and estimates used in the valuation of intangible assets and contingent consideration included, but were not limited to future expected cash flows, including projected revenues and expenses, estimated customer attrition rates, and the applicable discount rates. These assumptions and estimates were level 3 inputs and based on assumptions that the Company believes to be reasonable. However, actual results may differ from these estimates. The Company is in the process of reviewing the fair value of the assets and liabilities assumed, including, but not limited to accounts receivable, unbilled revenue, intangible assets, accrued expenses, tax liabilities and goodwill. As additional information becomes available, the Company may further revise its preliminary acquisition accounting during the remainder of the measurement period, which will not exceed 12 months from the date of acquisition. The Company may update certain assumptions and inputs to incorporate additional information obtained subsequent to the closing of the transaction related to facts and circumstances that existed as of the acquisition date. edjuster reported $ 5,000,000 of revenue in the Crawford Loss Adjusting segment during the year ended December 31, 2021. Goodwill is attributable to the synergies of the work force in place and business resources as a result of the combination of the companies. The Company does not expect that goodwill attributable to the acquisition will be deductible for tax purposes. Praxis Consulting Inc. Acquisition On October 1, 2021, the Company acquired 100 % of Praxis Consulting Inc. ("Praxis"), and an established subrogation claims service provider in the U.S. The acquisition allows the Company to expand its footprint in the U.S. subrogation claims market. The acquisition was funded primarily through additional borrowings under the Company’s credit facility. The purchase price included a cash payment of $ 21,544,000 , a working capital adjustment payable of $ 735,000 , a deferred cash payment of $ 20,000,000 payable in February 2022, and an earn-out potential up to $ 10,000,000 based on the achievement of certain revenue performance goals over two one-year periods, beginning February 2022. The acquisition accounting is based on the fair value of the acquisition consideration transferred to the sellers, assets acquired and liabilities assumed as of the acquisition date. At the acquisition date, the fair value of the contingent consideration payable was estimated to be $ 4,068,000 . At December 31, 2021, there were no material changes in the range of expected outcomes and the fair value of the contingent consideration from the acquisition date. Significant assumptions and estimates used in the valuation of intangible assets and contingent consideration included, but were not limited to future expected cash flows, including projected revenues and expenses, estimated customer attrition rates, and the applicable discount rates. These assumptions and estimates were level 3 inputs and based on assumptions that the Company believes to be reasonable. However, actual results may differ from these estimates. The Company is in the process of reviewing the fair value of the assets and liabilities assumed, including, but not limited to accounts receivable, intangible assets, accrued expenses, tax liabilities and goodwill. As additional information becomes available, the Company may further revise its preliminary acquisition accounting during the remainder of the measurement period, which will not exceed 12 months from the date of acquisition. The Company may update certain assumptions and inputs to incorporate additional information obtained subsequent to the closing of the transaction related to facts and circumstances that existed as of the acquisition date. Praxis reported $ 4,300,000 of revenue in the Networks service line within the Crawford Platform Solutions segment during the year ended December 31, 2021. Goodwill is attributable to the synergies of the work force in place and business resources as a result of the combination of the companies. The Company expects that goodwill attributable to the acquisition will be deductible for tax purposes. BosBoon Expertise Group B.V. Acquisition On October 1, 2021, the Company acquired BosBoon Expertise Group B.V. ("BosBoon"), a specialist loss adjusting company based in the Netherlands. The acquisition supports the Company's strategic aim of strengthening its expertise in all key territories in which it operates. BosBoon offers a specialist range of loss adjusting services which will be added to the existing loss adjusting proposition in the Netherlands. The acquisition was funded primarily through additional borrowings under the Company’s credit facility. The purchase price included an initial cash payment of $ 2,066,000 , net of working capital adjustments, and an earn-out potential up to $ 1,854,000 based on the achievement of EBITDA performance goal and other nonfinancial milestones over two one-year periods, beginning January 2022. The acquisition accounting is based on the fair value of the acquisition consideration transferred to the sellers, assets acquired and liabilities assumed as of the acquisition date. At the acquisition date, the fair value of the contingent consideration payable was estimated to be $ 568,000 . At December 31, 2021, there were no material changes in the range of expected outcomes and the fair value of the contingent consideration from the acquisition date. Significant assumptions and estimates used in the valuation of intangible assets and contingent consideration included, but were not limited to future expected cash flows, including projected revenues and expenses, estimated customer attrition rates, and the applicable discount rates. These assumptions and estimates were level 3 inputs and based on assumptions that the Company believes to be reasonable. However, actual results may differ from these estimates. The Company is in the process of reviewing the fair value of the assets and liabilities assumed, including, but not limited to accounts receivable, unbilled revenue, intangible assets, accrued expenses, tax liabilities and goodwill. As additional information becomes available, the Company may further revise its preliminary acquisition accounting during the remainder of the measurement period, which will not exceed 12 months from the date of acquisition. The Company may update certain assumptions and inputs to incorporate additional information obtained subsequent to the closing of the transaction related to facts and circumstances that existed as of the acquisition date. The financial results of certain of the Company’s international subsidiaries, including BosBoon, are included in the Company’s consolidated financial statements on a two-month delayed basis. The result of BosBoon are reported in the Crawford Loss Adjusting segment. Goodwill is attributable to the synergies of the work force in place and business resources as a result of the combination of the companies. The Company does not expect that goodwill attributable to the acquisition will be deductible for tax purposes. Fair Value of Assets Acquired and Liabilities Assumed Assets acquired and liabilities assumed as of acquisition date are presented in the following table: Crawford Carvallo HBA Group edjuster Inc. Praxis Consulting Inc. BosBoon Expertise Group B.V. October 1, 2020 November 1, 2020 August 23, 2021 October 1, 2021 October 1, 2021 (In thousands) Tangible assets Cash and cash equivalents $ 1,599 $ 240 $ 1,723 $ — $ — Accounts receivable 3,631 1,081 1,518 119 469 Unbilled revenues 3,237 598 1,531 — 597 Right-of-use lease assets 8,743 1,502 418 430 586 Other assets 4,660 205 1,520 316 75 Total tangible assets 21,870 3,626 6,710 865 1,727 Intangible assets Customer relationships 4,118 1,574 5,346 20,000 1,384 Developed technology 1,300 — 2,673 1,500 — Non-compete agreements 1,600 — 157 225 — Tradenames 300 — 1,101 2,125 346 Goodwill 7,738 6,245 12,799 26,195 1,571 Total intangible assets 15,056 7,819 22,076 50,045 3,301 Total assets acquired 36,926 11,445 28,786 50,910 5,028 Liabilities assumed Current liabilities 4,657 2,532 2,066 4,133 1,430 Operating lease liabilities 8,743 1,502 418 430 586 Tax liabilities 2,599 976 2,557 — 378 Total liabilities assumed 15,999 5,010 5,041 4,563 2,394 Net assets acquired before noncontrolling interest 20,927 6,435 23,745 46,347 2,634 Noncontrolling interest 489 — — — — Net assets acquired after noncontrolling interest $ 20,438 $ 6,435 $ 23,745 $ 46,347 $ 2,634 Purchase price (cash) $ 11,583 $ 4,026 $ 20,875 $ 21,544 $ 2,066 Fair value of noncontrolling interest previously held 3,047 — — — — Deferred purchase consideration payable — — 433 20,735 — Fair value of contingent consideration 5,808 2,409 2,437 4,068 568 Fair value of total consideration transferred $ 20,438 $ 6,435 $ 23,745 $ 46,347 $ 2,634 Acquired intangible assets include customer relationships, tradenames and developed technologies. Intangible assets were valued using the multi-period excess earnings or the relief-from-royalty methods, both are forms of the income approach which utilizes a forecast of future cash flows generated from the use of each asset. The following table shows the preliminary fair values assigned to identifiable intangible assets: Fair Value Weighted-Average Amortization Period (Years) (In thousands) Amortizable tangible assets Customer relationships $ 32,422 15 Developed technology 5,473 10 Non-compete agreements 1,982 8 Tradenames 3,872 7 Total amortizable intangible assets $ 43,749 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets Goodwill The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020: Loss Adjusting Crawford TPA Solutions Platform Solutions Total (In thousands) Balance at December 31, 2019: Goodwill $ 86,025 $ 168,734 $ 44,381 $ 299,140 Accumulated impairment losses ( 50,587 ) ( 159,424 ) ( 8,487 ) ( 218,498 ) Net goodwill 35,438 9,310 35,894 80,642 2020 Activity: Goodwill of acquired businesses 2,644 2,857 — 5,501 Impairment of goodwill ( 17,674 ) — — ( 17,674 ) Goodwill of disposed business ( 1,990 ) — — ( 1,990 ) Foreign currency effects 79 12 ( 33 ) 58 Balance at December 31, 2020: Goodwill 86,758 171,603 44,348 302,709 Accumulated impairment losses ( 68,261 ) ( 159,424 ) ( 8,487 ) ( 236,172 ) Net goodwill 18,497 12,179 35,861 66,537 2021 Activity: Goodwill of acquired businesses 14,371 6,244 26,195 46,810 Adjustments to prior acquisitions 1,074 1,163 — 2,237 Foreign currency effects 358 452 132 942 Balance at December 31, 2021: Goodwill 102,561 179,462 70,675 352,698 Accumulated impairment losses ( 68,261 ) ( 159,424 ) ( 8,487 ) ( 236,172 ) Net goodwill $ 34,300 $ 20,038 $ 62,188 $ 116,526 The Company recognized a non-cash goodwill impairment charge during the year ended December 31, 2020 totaling $ 17,674,000 related to the valuation of its former 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 . The Company recognized a non-cash goodwill impairment in the former Crawford Claims Solution reporting unit of $ 17,484,000 during the year ended December 31, 2019 due to lower forecasts in that reporting unit. These impairment charges did not affect the Company's liquidity and had no effect on the Company's compliance with the financial covenants under its Credit Facility. Intangible Assets The following is a summary of finite-lived intangible assets acquired through business acquisitions as of December 31, 2021 and 2020: Gross Accumulated Net Weighted- (In thousands, except years) December 31, 2021: Customer relationships $ 160,652 $ ( 111,241 ) $ 49,411 9.3 years Technology-based 22,293 ( 11,547 ) 10,746 6.4 years Trade name 6,393 ( 2,169 ) 4,224 7.0 years Other 7,944 ( 5,706 ) 2,238 4.6 years Total $ 197,283 $ ( 130,663 ) $ 66,619 8.2 years December 31, 2020: Customer relationships $ 131,948 $ ( 101,319 ) $ 30,629 3.3 years Technology-based 18,183 ( 10,174 ) 8,009 6.5 years Trade name 3,123 ( 1,737 ) 1,386 6.0 years Other 5,794 ( 5,489 ) 305 10.1 years Total $ 159,048 $ ( 118,719 ) $ 40,329 6.7 years Amortization of finite-lived intangible assets was $ 11,029,000 , $ 11,653,000 , and $ 11,277,000 for the years ended December 31, 2021, 2020, and 2019 , respectively. These amortization expenses were excluded from segment operating earnings (see Note 13, "Segment and Geographic Information"). Intangible assets subject to amortization are amortized on a straight-line basis over lives ranging from 2 to 20 years . At December 31, 2021, annual estimated aggregate amortization expense for intangible assets subject to amortization for the next five years is as follows: Annual Year Ending December 31, (In thousands) 2022 $ 8,224 2023 7,874 2024 7,715 2025 7,438 2026 7,146 The following is a summary of indefinite-lived intangible assets at December 31, 2021 and 2020: Gross Carrying Accumulated Net Carrying (In thousands) December 31, 2021: Trade names $ 32,608 $ ( 1,656 ) $ 30,952 December 31, 2020: Trade names $ 32,503 $ ( 1,656 ) $ 30,847 |
Short-Term and Long-Term Debt,
Short-Term and Long-Term Debt, Including Finance Leases | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt, Including Finance Leases | 5. Short-Term and Long-Term Debt, Including Finance Leases Long-term debt consisted of the following at December 31, 2021 and 2020: December 31, 2021 2020 (In thousands) Credit Facility $ 174,594 $ 112,855 Finance lease and other obligations 425 740 Total long-term debt and finance leases 175,019 113,595 Less: portion of Credit Facility classified as short-term ( 10,616 ) ( 1,570 ) Less: current installments of finance leases and other obligations ( 88 ) ( 267 ) Total long-term debt and finance leases, less current installments $ 164,315 $ 111,758 On November 5, 2021, the Company, its subsidiaries Crawford & Company Risk Services Investments Limited (the "U.K. Borrower"), Crawford & Company (Canada) Inc. (the "Canadian Borrower") and Crawford & Company (Australia) Pty. Ltd. (the "Australian Borrower") (the Company, together with such subsidiaries, as borrowers (the "Borrowers")), Bank of America, N.A., as administrative agent and a lender ("Bank of America"), Wells Fargo Bank, National Association and Truist Bank as co-syndication agents and lenders, HSBC Bank USA, National Association and PNC Bank, N.A., as co-documentation agents and lenders, and the other lenders party thereto, entered into a Credit Facility (the "Credit Facility"), which replaced our prior agreement, dated as of December 8, 2011, by and among, inter alia, the Borrowers, Wells Fargo and the other lenders from time to time party thereto, as subsequently amended. In connection with the Credit Facility, the Company, the Company’s guarantor subsidiaries party thereto and Bank of America entered into an Security and Pledge Agreement (the "Security and Pledge Agreement") and a Guaranty Agreement (the "Guaranty Agreement"), each dated as of the date of the Credit Facility. The Credit Facility consists of a $ 450,000,000 revolving credit facility, with a letter of credit subcommitment of $ 125,000,000 . The Credit Facility contains sublimits of $ 250,000,000 for borrowings by the U.K. Borrower, $ 125,000,000 for borrowings by the Canadian Borrower, and $ 75,000,000 for borrowings by the Australian Borrower. The Credit Facility matures, and all amounts outstanding thereunder, will be due and payable on November 5, 2026. Borrowings under the Credit Facility may be made in U.S. dollars, Euros, the currencies of Canada, Japan, Australia or United Kingdom and, subject to the terms of the Credit Facility, other currencies. Borrowings under the Credit Facility bear interest, at the option of the applicable Borrower, based on the Base Rate (as defined below) or a Eurocurrency Rate or an alternative reference rate, in each case plus an applicable interest margin based on the Company's leverage ratio (as defined below), provided that borrowings in foreign currencies may bear interest based on alternative reference rate. The Credit Facility defines Benchmark Replacement to encompass accepted alternative reference rates when the London Interbank Offered Rate (“LIBOR”) is no longer quoted. The Credit Facility define s alternative reference rates for non-U.S. Dollar currencies as Alternative Currency Term Rates or Alternative Currency Daily Rates. The interest margin for Eurocurrency Rate or alternative reference rate loans ranges from 1.00 % to 1.625 % and for Base Rate loans ranges from 0.00 % to 0.625 %. Base Rate is defined as the highest of (a) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 0.50 %, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate” and (c) The Eurocurrency rate plus 1.00%, subject to interest rate floors, with a minimum rate of zero. At December 31, 2021 , a total of $ 174,594,000 was outstanding and there was an undrawn amount of $ 11,277,000 under the letters of credit subcommitment of the Credit Facility. These letter of credit commitments were for the Company's own obligations. Including the amounts committed under the letters of credit subcommitment, the available borrowing capacity under the Credit Facility totaled $ 260,242,000 at December 31, 2021. The obligations of the Borrowers under the Credit Facility are guaranteed by each existing material domestic subsidiary of the Company, certain other domestic subsidiaries of the Company and certain existing material foreign subsidiaries of the Company that are disregarded entities for U.S. income tax purposes (each such foreign subsidiary, a "Disregarded Foreign Subsidiary"), and such obligations are required to be guaranteed by each subsequently acquired or formed material domestic subsidiary and Disregarded Foreign Subsidiary (each, a "Guarantor"), and the obligations of the Borrowers other than the Company ("Foreign Borrowers") for which the Company is not the primary obligor are also guaranteed by the Company. In addition, (i) the Borrowers’ obligations under the Credit Facility are secured by a first priority lien (subject to liens permitted by the Credit Facility) on substantially all of the personal property of the Company and the Guarantors as set forth in the Security and Pledge Agreement and (ii) the obligations of the Foreign Borrowers are secured by a first priority lien on 100 % of the capital stock of the Foreign Borrowers. The representations, covenants and events of default in the Credit Facility are customary for financing transactions of this nature, including required compliance with a minimum interest coverage ratio and a maximum leverage ratio (each as defined below). Under the Credit Facility, the consolidated total leverage ratio, defined as the ratio of (i) consolidated total funded debt minus unrestricted cash (generally cash held in the U.S., U.K., Canada and Australia) to (ii) consolidated EBITDA, must not be greater 4.50 to 1.00 at the end of each fiscal quarter. Also, the consolidated interest coverage ratio, defined as the ratio of (a) consolidated EBITDA to (b) consolidated interest expense, must not be less than 2.50 to 1.00 for the four-quarter period ending at the end of each fiscal quarter. At December 31, 2021, the Company was in compliance with the financial covenants under the Credit Facility. If the Company does not meet the covenant requirements in the future, it would be in default under the Credit Facility. Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Credit Facility and ancillary loan documents. Short-term borrowings under the Credit Facility totaled $ 10,616,000 and $ 1,570,000 at December 31, 2021 and 2020, respectively. The Company expects, but is not required, to repay all of such short-term borrowings at December 31, 2021 in 2022. The Company's finance leases are primarily comprised of equipment leases with terms ranging from 24 to 60 months. Interest expense, including amortization of capitalized loan costs, on the Company's short-term and long-term borrowings was $ 6,983,000 , $ 8,187,000 , and $ 11,519,000 for the years ended December 31, 2021, 2020, and 2019 , respectively. Interest paid on the Company's short-term and long-term borrowings was $ 5,631,000 , $ 7,152,000 , and $ 10,470,000 for the years ended December 31, 2021, 2020, and 2019, respectively. Principal repayments of long-term debt, including current portions, finance leases and other obligations, as of December 31, 2021 are expected to be as follows, assuming no prepayments or extensions beyond the stated maturity: Long-term Debt Finance Lease and Other Obligations Total Year Ending December 31, (In thousands) 2022 $ 10,616 $ 88 $ 10,704 2023 — 264 264 2024 — 48 48 2025 — 25 25 2026 163,978 — 163,978 Total $ 174,594 $ 425 $ 175,019 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease Commitments | 6. 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 6 years, options to terminate the leases within 1 year, rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company's finance leases are not material as of the year ended December 31, 2021 and are excluded from the disclosures below. The following table presents the lease-related assets and liabilities recorded on the Company's Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet December 31, December 31, Assets: Operating lease Operating lease right-of-use assets, net $ 99,369 $ 109,315 Liabilities: Current operating lease liabilities Current operating lease liabilities 25,238 32,745 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 88,408 93,228 Total operating lease liabilities $ 113,646 $ 125,973 Weighted-Average Remaining Lease Term 6.16 years 6.30 years Weighted-Average Discount Rate 5.1 % 5.3 % The components of operating lease costs within the Company's Consolidated Statements of Operations consisted of the following: Year Ended (in thousands) December 31, 2021 December 31, 2020 Operating lease cost $ 38,492 $ 38,242 Variable lease cost 5,177 8,037 Sublease income 3,875 4,090 Supplemental cash flow information related to operating leases were as follows: Year Ended (in thousands) December 31, 2021 December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 40,251 $ 37,091 Right-of-use assets obtained in exchange for lease obligations $ 22,168 $ 40,535 Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows: (in thousands) December 31, 2021 2022 $ 29,944 2023 22,745 2024 18,043 2025 14,278 2026 12,859 Thereafter 35,427 Total undiscounted lease payments 133,296 Less imputed interest ( 19,650 ) Present value of future lease payments $ 113,646 The Company has entered into operating lease agreements that have not yet commenced as of December 31, 2021 with legally binding minimum lease payments of $ 2,268,000 . The leases are expected to commence during the three months ended March 31, 2022, and have lease terms of 5 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Income before income taxes consisted of the following: Year Ended December 31, 2021 2020 2019 (In thousands) U.S. $ 39,569 $ ( 1,029 ) $ ( 1,472 ) Foreign 4,295 40,117 25,109 Income before income taxes $ 43,864 $ 39,088 $ 23,637 The provision for income taxes consisted of the following: Year Ended December 31, 2021 2020 2019 (In thousands) Current: U.S. federal and state $ 11,070 $ 12,561 $ 1,546 Foreign 5,238 8,457 9,525 Deferred: U.S. federal and state ( 126 ) ( 8,870 ) 1,643 Foreign ( 2,866 ) ( 135 ) 1,397 Provision for income taxes $ 13,316 $ 12,013 $ 14,111 Net cash payments for income taxes were $ 24,936,000 , $ 12,216,000 , and $ 16,996,000 in 2021, 2020, and 2019, respectively. The provision for income taxes is reconciled to the federal statutory income tax rate of 21 % in 2021, 2020, and 2019, as follows: Year Ended December 31, 2021 2020 2019 (In thousands) Federal income taxes at statutory rate $ 9,211 $ 8,208 $ 4,964 State income taxes, net of federal benefit 2,310 325 505 Goodwill impairment — 2,322 1,883 Foreign taxes 2,896 3,328 2,276 Change in valuation allowance ( 1,185 ) ( 374 ) 3,919 Research and development credits ( 436 ) ( 1,001 ) ( 626 ) Foreign tax credits ( 1,083 ) ( 1,150 ) ( 283 ) Nondeductible meals and entertainment 254 377 724 Change in permanent reinvestment assertion 627 776 — Disposals and liquidations of businesses — ( 935 ) — Global intangible low-tax income, net of credits 531 ( 54 ) 892 Foreign-derived intangible income deduction ( 94 ) ( 115 ) ( 315 ) Tax rate changes ( 431 ) ( 359 ) 486 Other 716 665 ( 314 ) Provision for income taxes $ 13,316 $ 12,013 $ 14,111 The Company's consolidated effective income tax rate may change periodically due to changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits. The Company’s effective income tax rate in 2021 was impacted by enacted foreign tax rate changes, change in valuation allowances for certain jurisdictions, and deferred taxes attributable to certain undistributed foreign earnings that are no longer permanently reinvested. The Company's effective income tax rate in 2020 was impacted by goodwill impairment charges, disposals and liquidations of businesses, and deferred taxes attributable to undistributed foreign earnings that are no longer permanently reinvested. The Company's effective income tax rate in 2019 was impacted by goodwill impairment charges, arbitration and claim settlements, and valuation allowance establishment on certain state net operating losses. During 2021 and 2020, the Company released its permanent reinvestment position on a portion of prior year undistributed earnings for certain foreign operations and accrued deferred taxes attributable to these earnings. Beyond these earnings we have not changed the reinvestment assertion on our undistributed earnings or other outside basis differences of our remaining foreign subsidiaries. Excluding the change in position for certain foreign operations, no additional income or withholding taxes have been provided for indefinitely reinvested undistributed foreign earnings, other than those previously taxed nor have any taxes been provided for outside basis difference inherent in these entities as these amounts continue to be indefinitely reinvested in foreign operations. We have estimated that we have book over tax basis differences of approximately $ 90,269,000 . Due to withholding tax, basis computations, and other related tax considerations, it is not practicable to estimate any taxes to be provided on outside basis differences at this time. Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI in the year the tax is incurred. Deferred income taxes consisted of the following at December 31, 2021 and 2020: 2021 2020 (In thousands) Accounts receivable allowance $ 1,386 $ 1,019 Accrued compensation 16,182 14,655 Accrued pension liabilities — 4,950 Self-insured risks 5,280 5,746 Deferred revenues 5,045 5,376 Interest 2,907 2,419 Tax credit carryforwards 3,326 7,090 Loss carryforwards 28,122 22,805 Lease liability 28,547 31,435 Other 2,218 2,158 Gross deferred income tax assets 93,013 97,653 Unbilled revenues 6,290 5,311 Accrued pension liabilities 2,491 — Repatriated earnings 937 776 Depreciation and amortization 27,593 23,474 Lease right-of-use asset 24,958 27,513 Gross deferred income tax liabilities 62,269 57,074 Net deferred income tax assets before valuation allowances 30,744 40,579 Valuation allowance ( 14,114 ) ( 16,579 ) Net deferred income tax assets $ 16,630 $ 24,000 Amounts recognized in the Consolidated Balance Sheets consist of: Long-term deferred income tax assets included in "Deferred income tax assets" 21,266 25,595 Long-term deferred income tax liabilities included in "Other noncurrent liabilities" ( 4,636 ) ( 1,595 ) Net deferred income tax assets $ 16,630 $ 24,000 At December 31, 2021 , the Company had deferred tax assets related to loss carryforwards of $ 28,352,000 , before netting of unrecognized tax benefits of $ 244,000 . An estimated $ 22,288,000 of the deferred tax assets will not expire, and $ 6,064,000 will expire over the next 20 years if not utilized by the Company. Changes in the Company's deferred tax valuation allowance are recorded as adjustments to the provision for income taxes. An analysis of the Company's deferred tax asset valuation allowances is as follows for the years ended December 31, 2021, 2020, and 2019. 2021 2020 2019 (In thousands) Balance, beginning of year $ 16,579 $ 28,128 $ 25,654 Other changes ( 2,465 ) ( 11,549 ) 2,264 Balance, end of year $ 14,114 $ 16,579 $ 28,128 Changes to the valuation allowance for the year ended December 31, 2021 were primarily due to anticipated expiration of certain foreign tax credits after consideration of the four sources of taxable income and losses in certain of the Company's international operations, net of releases for certain state NOLs. Changes to the valuation allowance for the year ended December 31, 2020 were primarily due to anticipated expiration of certain foreign tax credits after consideration of the four sources of taxable income and disposals and liquidations of businesses, net of losses in certain of the Company’s international operations. Changes to the valuation allowance for the year ended December 31, 2019 were primarily due to anticipated expiration of certain state NOLs after consideration of the four sources of taxable income and losses in certain of the Company’s international operations. A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows: (In thousands) Balance at December 31, 2018 $ 7,401 Additions for tax provisions related to the current year 515 Additions for tax positions related to prior years 646 Reductions for tax positions related to the prior year ( 113 ) Reductions for settlements ( 2,642 ) Lapses of applicable statutes of limitation ( 520 ) Balance at December 31, 2019 $ 5,287 Additions for tax provisions related to the current year 92 Additions for tax positions related to prior years 2 Reductions for tax positions related to prior years ( 505 ) Reductions for settlements ( 516 ) Lapses of applicable statutes of limitation ( 582 ) Balance at December 31, 2020 $ 3,778 Reductions for tax positions related to prior years ( 11 ) Reductions for settlements ( 21 ) Currency translation adjustment 4 Balance at December 31, 2021 $ 3,750 The Company accrues interest and, if applicable, penalties related to unrecognized tax benefits in income taxes. Total accrued interest expense at December 31, 2021, 2020, and 2019 , was $ 119,000 , $ 107,000 , and $ 256,000 , respectively. Included in the total unrecognized tax benefits at December 31, 2021, 2020, and 2019 were $ 669,000 , $ 713,000 , and $ 1,940,000 , respectively, of tax benefits that, if recognized, would affect the effective income tax rate. The Company conducts business in a number of countries and, as a result, files U.S. federal and various state and foreign jurisdiction income tax returns. In the normal course of business, the Company is subject to examination by various taxing jurisdictions throughout the world, including Canada, the U.K., and the U.S. With few exceptions, the Company is no longer subject to income tax examinations for years before 2011. Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, including interest and penalties, have been provided for any adjustments that are expected to result from those years. The Company does not expect any material reductions to unrecognized income tax benefits within the next 12 months as a result of projected resolutions of income tax uncertainties. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | 8. Retirement Plans The Company and its subsidiaries sponsor various retirement plans. Substantially all employees in the U.S. and certain employees outside the U.S. are covered under the Company's defined contribution plans. Certain employees, retirees, and eligible dependents are also covered under the Company's defined benefit pension plans. Employer contributions under the Company's defined contribution plans are determined annually based on employee contributions, a percentage of each covered employee's compensation, and years of service. The Company's cost for defined contribution plans totaled $ 25,595,000 , $ 23,641,000 , and $ 25,226,000 in 2021, 2020, and 2019, respectively. The Company sponsors a qualified defined benefit pension plan in the U.S. (the "U.S. Qualified Plan") and three defined benefit pension plans in the U.K. (the "U.K. Plans"). Effective December 31, 2002, the Company elected to freeze its U.S. Qualified Plan. Benefits payable under the Company's U.S. Qualified Plan are generally based on career compensation; however, no additional benefits have accrued on this plan since December 31, 2002. The Company's U.K. Plans were closed to new participants as of October 31, 1997, but existing participants may still accrue additional limited benefits based on salary amounts in effect at the time the relevant plan was closed. Benefits payable under the U.K. Plans are generally based on an employee's final salary at the time the plan was closed. Benefits paid under the U.K. Plans are also subject to adjustments for the effects of inflation. The actuarial present value of the projected benefit payments under the U.K. Plans are based on the employees' expected dates of separation by retirement. The Bipartisan Budget Act of 2015 ("BBA2015") included pension funding reform which greatly reduced the contributions required to the U.S. Qualified Plan. Required contributions may be triggered in future years as the impact of the BBA2015 pension funding reform is phased out. The Company made voluntary contributions of $ 9,000,000 to the U.S. Qualified Plan in 2021 and 2020, respectively. The Company did not make a discretionary contribution in 2019 because it made an additional voluntary contribution of $ 10,000,000 in 2018 which generated a one-time U.S. tax benefit. Currently, the Company does not plan to make any discretionary contributions to the U.S. Qualified Plan or the U.K. Plans in 2022. Certain other employees located in the Netherlands, Norway, Germany, and the Philippines (referred to herein as the "other international plans") have retirement benefits that are accounted for as defined benefit pension plans under GAAP. External trusts are maintained to hold assets of the Company's U.S. Qualified Plan, U.K. Plans, and other international plans. The Company's funding policy is to make cash contributions in amounts at least sufficient to meet regulatory funding requirements and, in certain instances, to make contributions in excess thereof if such contributions would otherwise be in accordance with the Company's capital allocation plans. Assets of the plans are measured at fair value at the end of each reporting period, but the plan assets are not separately recorded on the Company's Consolidated Balance Sheets. Instead, the funded or unfunded status of the Company's U.S. Qualified Plan, U.K. Plans, and other international plans are recorded in "Accrued pension liabilities" or "Other noncurrent assets" on the Company's Consolidated Balance Sheets based on the projected benefit obligations less the fair values of the plans' assets. The majority of the Company's defined benefit pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2021 and 2020: December 31, 2021 2020 (In thousands) Projected benefit obligations $ 448,487 $ 494,273 Fair value of plans' assets 427,670 437,234 Certain of the Company's U.K. Plans have fair values of plan assets that exceed the projected benefit obligations. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2021 and 2020: December 31, 2021 2020 (In thousands) Projected benefit obligations $ 281,828 $ 267,200 Fair value of plans' assets 312,119 303,957 In addition, the Company sponsors two frozen nonqualified, unfunded defined benefit pension plans for certain employees and retirees, which are based on career compensation. These plans were frozen effective December 31, 2002. The liabilities of these plans, which equal their projected benefit obligations, are included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets based on the expected timing of funding these obligations, since they are funded as needed from Company assets. A reconciliation of the beginning and ending balances of the projected benefit obligations and the fair value of plans' assets for the Company's defined benefit pension plans as of the plans' most recent measurement dates is as follows: Year Ended December 31, 2021 2020 (In thousands) Projected Benefit Obligations: Beginning of measurement period $ 761,473 $ 748,258 Service cost 1,208 1,295 Interest cost 11,321 16,643 Employee contributions 36 35 Actuarial (gain) loss ( 10,034 ) 49,938 Plan settlements ( 249 ) ( 1,450 ) Plan amendments ( 1,663 ) — Benefits paid ( 48,465 ) ( 55,150 ) Foreign currency effects 16,688 1,904 End of measurement period 730,315 761,473 Fair Value of Plans' Assets: Beginning of measurement period 741,191 714,017 Actual return on plans' assets 18,490 71,446 Employer contributions 9,892 10,446 Employee contributions 36 35 Plan settlements ( 249 ) ( 1,450 ) Benefits paid ( 48,465 ) ( 55,150 ) Foreign currency effects 18,894 1,847 End of measurement period 739,789 741,191 Overfunded/(Unfunded) Status $ 9,474 $ ( 20,282 ) Due to the frozen status of the U.S. Qualified Plan and the closed status of the U.K. Plans, the accumulated benefit obligations and the projected benefit obligations are not materially different. The funded status of the Company's defined benefit pension plans recognized in the Consolidated Balance Sheets at December 31 consisted of: December 31, 2021 2020 (In thousands) U.S. Qualified Plan $ 15,181 $ 51,645 Other international plans 2,710 2,241 Subtotal, included in "Accrued pension liabilities" 17,891 53,886 U.K. prepaid pension asset included in "Other noncurrent assets" ( 30,291 ) ( 36,757 ) Unfunded status of nonqualified defined benefit deferred pension plans included in "Other accrued liabilities" 293 316 Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities" 2,633 2,837 Total (overfunded)/underfunded status $ ( 9,474 ) $ 20,282 Accumulated other comprehensive loss, before income taxes $ ( 251,629 ) $ ( 264,244 ) A fixed number of U.S. employees, retirees, and eligible dependents were previously covered under a frozen post-retirement medical benefits plan and are now provided Company-subsidized premiums for participation in health care exchanges. The liabilities for this plan are included in the Company's self-insured risks liabilities and are not material. This plan was frozen effective December 31, 2002. The following tables set forth the changes in accumulated other comprehensive loss during 2021 and 2020 for the Company's defined benefit retirement plans and post-retirement medical benefits plan on a combined basis: Defined Benefit Post-Retirement (In thousands) Net unrecognized actuarial (loss) gain, December 31, 2019 $ ( 268,427 ) $ 152 Amortization of net loss (gain) 10,804 ( 152 ) Net loss arising during the year ( 6,510 ) — Currency translation ( 111 ) — Net unrecognized actuarial loss, December 31, 2020 ( 264,244 ) — Amortization of net loss 10,455 — Net gain arising during the year 4,939 — Currency translation ( 2,779 ) — Net unrecognized actuarial loss, December 31, 2021 $ ( 251,629 ) $ — Unrecognized losses reflect changes in the discount rates and differences between expected and actual asset returns, which are being amortized over future periods. These unrecognized losses may be recovered in future periods through actuarial gains. However, unless the minimum amount required to be amortized is below a corridor amount equal to 10.0 % of the greater of the projected benefit obligation or the market-related value of plan assets, these unrecognized actuarial losses are required to be amortized and recognized in future periods. Net unrecognized actuarial losses included in accumulated other comprehensive loss and expected to be recognized in net periodic benefit costs during the year ending December 31, 2022 for the U.S. and U.K. defined benefit pension plans are $ 10,056,000 ($ 7,476,000 net of tax). Pension expense is affected by the accounting policy used to determine the value of plan assets at the measurement date. The Company applies the expected return on plan assets using fair market value as of the annual measurement date. The fair market value method results in greater volatility to pension expense than the calculated value method. The amounts recognized in the Consolidated Balance Sheets reflect the fair value of the Company's long-term pension liabilities at the plan measurement date and the fair value of plan assets as of the balance sheet date. Net periodic benefit (credit) cost related to all of the Company's defined benefit pension plans recognized in the Company's Consolidated Statements of Operations for the years ended December 31, 2021, 2020, and 2019 included the following components: Year Ended December 31, 2021 2020 2019 (In thousands) Service cost $ 1,208 $ 1,295 $ 1,278 Interest cost 11,321 16,643 22,376 Expected return on assets ( 25,248 ) ( 28,016 ) ( 29,654 ) Amortization of actuarial loss 10,455 10,804 10,837 Net periodic benefit (credit) cost $ ( 2,264 ) $ 726 $ 4,837 Benefit cost for the U.S. Qualified Plan does not include service cost since the plan is frozen. For the years ended December 31, 2021, 2020 and 2019, the non-service components of net periodic pe nsion (benefits)/costs of $( 3,472,000 ), $( 569,000 ) and $ 3,559,000 , respectively, are included in "Other (Income) Loss" on the Consolidated Statement of Operations. Over the next ten years, the following benefit payments are expected to be required to be made from the Company's U.S. and U.K. defined benefit pension plans: Year Ending December 31, Expected Benefit (In thousands) 2022 $ 40,980 2023 40,973 2024 40,855 2025 40,792 2026 40,610 2027-2031 197,809 The Company reviews its employee demographic assumptions annually and updates the assumptions as necessary. The Company updates the mortality assumptions for the U.S. plans to incorporate the current mortality tables issued by the Society of Actuaries, adjusted to reflect the Company's specific experience and future expectations. This resulted in a $ 1,176,000 decrease in the projected benefit obligation for the U.S. plans for the year ended December 31, 2021. Certain assumptions used in computing the benefit obligations and net periodic benefit cost for the U.S. and U.K. defined benefit pension plans were as follows: U.S. Qualified Plan: 2021 2020 Discount rate used to compute benefit obligations 2.76 % 2.38 % Discount rate used to compute periodic benefit cost 2.38 % 3.15 % Expected long-term rates of return on plans' assets 4.70 % 4.70 % U.K. Defined Benefit Plans: 2021 2020 Discount rate used to compute benefit obligations 1.82 % 1.60 % Discount rate used to compute periodic benefit cost 1.60 % 1.93 % Expected long-term rates of return on plans' assets 2.10 % 2.54 % The discount rate assumptions reflect the rates at which the Company believes the benefit obligations could be effectively settled. The discount rates were determined based on the yield for a portfolio of investment grade corporate bonds with maturity dates matched to the estimated future payments of the plans' benefit obligations. The Company estimates the service and interest components of net periodic benefit cost for its U.S. and international pension and other postretirement benefits. This estimation approach discounts the individual expected cash flows underlying the service cost and interest cost using the applicable spot rates derived from the yield curve used to discount the cash flows used to measure the benefit obligation. For the pension plans, the weighted average spot rates used to determine 2022 interest costs are estimated to be 2.18 % for the U.S. Qualified plan and 1.68 % for the U.K. plans. The expected long-term rates of return on plan assets were based on the plans' asset mix, historical returns on equity securities and fixed income investments, and an assessment of expected future returns. The expected long-term rates of return on plan assets assumption used to determine 2022 net periodic pension cost are estimated to be 4.80 % and 2.40 % fo r the U.S. Qualified Plan and U.K. plans, respectively. If actual long-term rates of return differ from those assumed or if the Company used materially different assumptions, actual funding obligations could differ materially from these estimates. Due to the frozen status of the U.S. plan and closed status of the U.K. plans, increases in compensation rates are not material to the computations of benefit obligations or net periodic benefit cost. Plans' Assets Asset allocations at the respective measurement dates, by asset category, for the Company's U.S. and U.K. qualified defined benefit pension plans were as follows: U.S. Qualified Plan U.K. Plans December 31, 2021 2020 2021 2020 Equity securities 16.9 % 23.4 % — 17.9 % Fixed income securities 65.5 % 67.2 % 66.2 % 68.3 % Alternative strategies 5.7 % 6.2 % 23.1 % 13.0 % Cash, cash equivalents and short-term investment funds 11.9 % 3.2 % 10.7 % 0.8 % Total asset allocation 100.0 % 100.0 % 100.0 % 100.0 % Investment objectives for the Company's U.S. and U.K. pension plan assets are to ensure availability of funds for payment of plan benefits as they become due; provide for a reasonable amount of long-term growth of capital, without undue exposure to volatility; protect the assets from erosion of purchasing power; and provide investment results that meet or exceed the plans' actuarially assumed long-term rate of return. Alternative strategies include funds that invest in derivative instruments such as futures, forward contracts, options and swaps, hedge funds, and funds that invest in real estate. These investments are used to help manage risks. The long-term goal for the U.S. and U.K. plans is to reach fully-funded status and to maintain that status. The investment policies recognize that the plans' asset return requirements and risk tolerances will change over time. Accordingly, reallocation of the portfolios' mix of return-seeking assets and liability-hedging assets will be performed as the plans' funded status improves. See Note 12, "Fair Value Measurements" for the fair value disclosures of the U.S. and U.K. qualified defined benefit pension plan assets. The assets of the Company's other international plans are primarily insurance contracts, which are measured at contract value and are not measured at fair value. Obligations of the U.S. nonqualified plans are paid from Company assets. |
Common Stock and Earnings per S
Common Stock and Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Common Stock and Earnings per Share | 9. Common Stock and Earnings per Share Shares of the Company's two classes of common stock are traded on the NYSE under the symbols CRD-A and CRD-B, respectively. The Company's two classes of stock are substantially identical, except with respect to voting rights and the Company's ability to pay greater cash dividends on the non-voting Class A Common Stock than on the voting Class B Common Stock, subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of Class A Common Stock must receive the same type and amount of consideration as holders of Class B Common Stock, unless different consideration is approved by the holders of 75 % of the Class A Common Stock, voting as a class. As described in Note 11, "Stock-Based Compensation," certain share s of CRD-A are issued with restrictions under incentive compensation plans. 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"). On December 10, 2020, the Company’s Board of Directors extended the termination date of the Company’s 2019 share repurchase authorization to December 31, 2021. 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. In 2021 the Company had repurchased 530,598 shares of CRD-A and 111,499 shares of CRD-B at an average cost of $ 9.63 and $ 8.68 , respectively. At December 31, 2021, the Company had no remaining authorized share repurchases under the 2019 Repurchase Authorization. Effective November 4, 2021, 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, 2023 (the “2021 Repurchase Authorization”). Through December 31, 2021, the Company had repurchased no shares of CRD-A and 1,586,683 shares of CRD-B at an average cost of $ 8.23 under the 2021 Repurchase Authorization. At December 31, 2021, the Company had remaining authorization to repurchase 413,317 shares under the 2021 Repurchase Authorization. Net Income Attributable to Shareholders of Crawford & Company per Common Share The Company computes earnings per share of CRD-A and CRD-B using the two-class method, which allocates the undistributed earnings for 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 CRD-A than on CRD-B, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. During 2021, the Board of Directors declared an equal dividend on CRD-A and CRD-B, while during 2020 and 2019, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. The computations of basic net income attributable to shareholders of Crawford & Company per common share were as follows: Year Ended December 31, 2021 2020 2019 CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B (In thousands, except earnings per share) Earnings per share - basic: Numerator: Allocation of undistributed earnings $ 10,464 $ 7,565 $ 10,743 $ 7,908 $ ( 392 ) $ ( 294 ) Dividends paid 7,376 5,287 5,815 3,830 8,592 4,579 Net income available to common shareholders, basic 17,840 12,852 16,558 11,738 8,200 4,285 Denominator: Weighted-average common shares outstanding, basic 30,760 22,237 30,605 22,527 30,637 22,975 Earnings per share - basic $ 0.58 $ 0.58 $ 0.54 $ 0.52 $ 0.27 $ 0.19 The computations of diluted net income attributable to shareholders of Crawford & Company per common share were as follows: Year Ended December 31, 2021 2020 2019 CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B (In thousands, except earnings (loss) per share) Earnings per share - diluted: Numerator: Allocation of undistributed earnings $ 10,602 $ 7,427 $ 10,781 $ 7,870 $ ( 394 ) $ ( 292 ) Dividends paid 7,376 5,287 5,815 3,830 8,592 4,579 Net income available to common shareholders, diluted 17,978 12,714 16,596 11,700 8,198 4,287 Denominator: Weighted-average common shares outstanding, basic 30,760 22,237 30,605 22,527 30,637 22,975 Weighted-average effect of dilutive securities (1) 983 — 252 — 453 — Weighted-average number of shares outstanding, diluted 31,743 22,237 30,857 22,527 31,090 22,975 Earnings per share - diluted $ 0.57 $ 0.57 $ 0.54 $ 0.52 $ 0.26 $ 0.19 Listed below are the shares excluded from the denominator in the above computation of diluted earnings per share for CRD-A because their inclusion would have been anti-dilutive: Year Ended December 31, 2021 2020 2019 (In thousands) Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period 838 1,996 622 Performance stock grants excluded because performance conditions had not been met (1) 335 578 717 (1) Compensation cost is recognized for these performance stock grants based on expected achievement rates; however no consideration is given for these performance stock grants when calculating earnings per share until the performance measurements are actually achieved. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 10. 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. Foreign currency translation adjustments include net unrealized gain/(losses) from intra-entity loans that are long-term in nature of $ 383,000 , $( 5,165,000 ) , and $( 928,000 ) for the years ended December 31, 2021, 2020, and 2019 , respectively. The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's Consolidated Balance Sheets were as follows: Foreign currency Retirement AOCL (In thousands) Balance at December 31, 2019 $ ( 35,850 ) $ ( 171,057 ) $ ( 206,907 ) Other comprehensive income before reclassifications 4,595 — 4,595 Unrealized net losses arising during the year — ( 4,966 ) ( 4,966 ) Amounts reclassified from accumulated other comprehensive income to net income (1) — 7,959 7,959 Net current period other comprehensive income 4,595 2,993 7,588 Acquisition/Disposition of noncontrolling interest 463 — 463 Balance at December 31, 2020 ( 30,792 ) ( 168,064 ) ( 198,856 ) Other comprehensive income before reclassifications 9,032 — 9,032 Unrealized net gains arising during the year — 1,618 1,618 Amounts reclassified from accumulated other comprehensive income to net income (1) — 7,765 7,765 Net current period other comprehensive income 9,032 9,383 18,415 Balance at December 31, 2021 $ ( 21,760 ) $ ( 158,681 ) $ ( 180,441 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's Consolidated Statements of Operations. See Note 8, "Retirement Plans" for additional details. Other comprehensive loss amounts attributable to noncontrolling interests shown in the Company's Consolidated Statements of Shareholders' Investment are foreign currency translation adjustments. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation The Company has various stock-based incentive compensation plans for its employees and members of its Board of Directors. Only shares of CRD-A can be issued under these plans. The fair value of an equity award is estimated on the grant date without regard to service or performance conditions. The fair value is recognized as compensation expense over the requisite service period for all awards that vest. When recognizing compensation expense, estimates are made for the number of awards that are expected to vest, and subsequent adjustments are made to reflect both changes in the number of shares expected to vest and actual vesting. Compensation expense recognized at the end of any year equals at least the portion of the grant-date value of an award that has vested at that date. The pretax compensation expense recognized for all stock-based compensation plans was $ 7,585,000 , $ 4,384,000 , and $ 4,109,000 for the years ended December 31, 2021, 2020, and 2019, respectively. During 2021, there was an increase in performance awards, which resulted in the increased stock-based compensation for the year as compared to 2020 and 2019. The total income tax benefit recognized in the Consolidated Statements of Operations for stock-based compensation arrangements was approximately $ 1,767,000 , $ 947,000 , and $ 888,000 for the years ended December 31, 2021, 2020, and 2019, respectively. Some of the Company's stock-based compensation awards are granted under plans which are designed not to be taxable as compensation to the recipient based on tax laws of the U.S. or other applicable country. Accordingly, the Company does not recognize tax benefits on all of its stock-based compensation expense. Adjustments to additional paid-in capital for differences between deductions taken on its income tax returns related to stock-based compensation plans and the related income tax benefits previously recognized for financial reporting purposes were not significant in any year. Stock Options The Company has granted nonqualified and incentive stock options to key employees and directors. All stock options are for shares of CRD-A. Option awards are granted with an exercise price equal to the fair market value of the Company's stock on the date of grant. The Company's stock option plans have been approved by shareholders, and the Company's Board of Directors is authorized to make specific grants of stock options under active plans. Employee stock options typically are subject to graded vesting over three years ( 33 % each year) and have a typical life of ten years . Compensation cost for stock options is recognized on an accelerated basis over the requisite service period for the entire award. For the years ended December 31, 2021, 2020 and 2019, compensation expense of $ 375,000 , $ 617,000 , and $ 1,397,000 , respectively, was recognized for employee stock option awards. A summary of option activity as of December 31, 2021, 2020 and 2019, and changes during each year, is presented below: Shares Weighted- Weighted- Aggregate (In thousands) (In thousands) Outstanding at December 31, 2018 1,294 $ 8.60 8.1 years $ 667 Granted 591 9.70 Exercised ( 111 ) 5.91 Forfeited or expired ( 80 ) 9.24 Outstanding at December 31, 2019 1,694 9.13 7.9 years 3,969 Granted 660 8.73 Exercised — — Forfeited or expired ( 458 ) 9.05 Outstanding at December 31, 2020 1,896 9.01 7.4 years 114 Granted — — Exercised — — Forfeited or expired ( 278 ) 8.90 Outstanding at December 31, 2021 1,618 $ 8.99 6.5 years $ 143 Vested and Exercisable at December 31, 2021 1,208 $ 9.02 6.0 years $ 80 There were no stock options granted in 2021. The weighted average grant date fair value of stock options granted during the year ended December 31, 2020 and 2019 was $ 2.29 and $ 2.57 , respectively. No options were exercised in 2021 or 2020. Options vested in 2021 and 2019 had an intrinsic value of $ 31,000 and $ 446,000 , respectively. Options that vested in 2020 had no intrinsic value. The fair value of options that vested in 2021, 2020 and 2019 was $ 860,000 , $ 1,084,000 , and $ 1,000,000 , respectively. At December 31, 2021, the unrecognized compensation cost related to unvested employee stock options was $ 162,000 . D irectors' stock options had no unrecognized compensation cost since directors' options vest upon grant, and the grant-date fair values were fully expensed on the grant date. The fair value of each option was estimated on the date of grant using the Black-Scholes-Merton option-pricing formula, with the following weighted average assumptions. There were no stock options granted in 2021: 2021 2020 2019 Expected dividend yield — 3.02 % 3.80 % Expected volatility — 35.48 % 36.73 % Risk-free interest rate — 1.38 % 2.56 % Expected term of options — 7 years 7 years The expected dividend yield used for 2020 was based on the Company's historical dividend yield. The expected volatility of the price of CRD-A was based on historical realized volatility. The risk-free interest rate was based on the U.S. Treasury Daily Yield Curve Rate on the grant date, with a term equal to the expected term used in the pricing formula. The expected term of the option took into account both the contractual term of the option and the effects of expected exercise behavior. Performance-Based Stock Grants Performance share grants are from time to time made to certain key employees of the Company. Such grants entitle employees to earn shares of CRD-A upon the achievement of certain individual and/or corporate objectives. Grants of performance shares are made at the discretion of the Company's Board of Directors, or the Board's Compensation Committee, and are subject to graded or cliff vesting over three-year periods. Shares are not issued until the vesting requirements have been met. Dividends are not paid or accrued on unvested/unissued shares. The grant-date fair value of a performance share grant is based on the market value of CRD-A on the date of grant, reduced for the present value of any dividends expected to be paid on CRD-A prior to the vesting of the award. Compensation expense for each award is recognized ratably from the grant date to the vesting date for each tranche. On September 23, 2020, deeming the existing performance based cliff awards granted in 2019 and 2020 to be unattainable, the Compensation Committee cancelled the existing awards and approved a new plan based on Total Shareholder Return (“TSR”), a market condition. The 2019 replacement awards were targeted to achieve 50 % of the original award it was replacing and set to vest on December 31, 2021 . The 2020 replacement awards were targeted to achieve 100 % of the original award it was replacing, with a vesting date of December 31, 2022 . TSR is defined as dividends paid during the measurement period plus share price appreciation. Share price appreciation is measured by using the 20 day trading day volume weighted average price at the start of the measurement period as the baseline, compared against the highest consecutive 20 day trading day volume weighted average price for the period between January 1, 2021 and the vesting date for the 2019 replacement awards and between January 1, 2022 and the vesting date for the 2020 replacement awards. Depending on the TSR, the number of shares earned can be between 50 % and 200 % of the ta rgeted shares granted. If the TSR is below 10 % for the 2019 replacement awards, or 20 % for the 2020 replacement awards, then no shares vest. The 2019 replacement awards vested at 200 % of the targeted shares, resulting in 135,309 incremental shares vested and issued at December 31, 2021. These incremental awards are presented as shares granted and vested during 2021 in the rollforward below. The cancellation and reissuance of these awards was treated as a Type III modification, where no cumulative expense is recognized prior to the cancellation as it was deemed improbable to vest. Expense of the modified award will be recorded ratably over the service life, based on the valuation determined by utilizing a Monte Carlo simulation. At the time of modification, employees were given an option to elect a cash payout at the vesting date, also based on a component of TSR. This one-time election had to be determined within 30 days of the grant date. Any awards where the cash payout option was elected were recorded as liability awards, which are included on the Company's Consolidated Balance Sheets in "Accrued compensation and related costs." A summary of the status of the Company's nonvested performance shares as of December 31, 2021, 2020 and 2019, and changes during each year, is presented below: Shares Weighted-Average Nonvested at December 31, 2018 988,837 $ 8.07 Granted 626,776 8.87 Vested ( 214,824 ) 8.49 Forfeited or unearned ( 427,010 ) 8.34 Nonvested at December 31, 2019 973,779 8.38 Granted 1,616,902 8.01 Vested ( 224,681 ) 8.33 Forfeited or unearned ( 1,466,729 ) 8.10 Nonvested at December 31, 2020 899,271 8.19 Granted 935,825 8.38 Vested ( 507,191 ) 8.85 Forfeited or unearned ( 151,514 ) 6.52 Nonvested at December 31, 2021 1,176,391 $ 8.25 The total fair value of the performance shares that vested in 2021, 2020, and 2019 was $ 4,487,000 , $ 1,871,000 , and $ 1,823,000 , respectively. Compensation expense recognized for all performance shares totaled $ 5,712,000 , $ 2,382,000 , and $ 1,082,000 for the years ended December 31, 2021, 2020 and 2019, respectively. Compensation cost for these awards is net of estimated or actual award forfeitures. Certain performance awards vest ratably, from grant date to vesting date of their respective tranches, without cumulative earnings per share targets. As of December 31, 2021, there was an estimated $ 5,180,000 of unearned compensation cost for nonvested performance shares. This unearned compensation cost is expected to be fully recognized by the end of 2023. Restricted Shares The Company's Board of Directors may elect to issue restricted shares of CRD-A in lieu of, or in addition to, cash payments to certain key employees. Employees receiving these shares are subject to restrictions on their ability to transfer the shares. Such restrictions generally lapse ratably over vesting periods ranging from several months to five years . The grant-date fair value of a restricted share of CRD-A is based on the market value of the stock on the date of grant. Compensation cost is recognized on an accelerated basis over the requisite service period. A summary of the status of the Company's restricted shares of CRD-A as of December 31, 2021, 2020 and 2019 and changes during each year, is presented below: Shares Weighted-Average Nonvested at December 31, 2018 72,109 $ 7.76 Granted 149,496 9.38 Vested ( 108,610 ) 9.04 Forfeited or unearned ( 31,387 ) 9.55 Nonvested at December 31, 2019 81,608 8.35 Granted 117,279 8.34 Vested ( 119,327 ) 8.52 Forfeited or unearned — — Nonvested at December 31, 2020 79,560 8.08 Granted 94,654 9.03 Vested ( 138,635 ) 8.91 Forfeited or unearned ( 10,579 ) 8.99 Nonvested at December 31, 2021 25,000 $ 7.23 Compensation expense recognized for all restricted shares for the years ended December 31, 2021, 2020, and 2019 was $ 906,000 , $ 942,000 , and $ 1,205,000 , respectively. As of December 31, 2021, there was $ 104,000 of total unearned compensation cost related to nonvested restricted shares which is expected to be recognized by December 31, 2022. Employee Stock Purchase Plans The Company has three employee stock purchase plans: the U.S. Plan, the U.K. Plan, and the International Plan. Eligible employees in Canada, Puerto Rico, and the U.S. Virgin Islands may also participate in the U.S. Plan. The International Plan is for eligible employees located in certain other countries who are not covered by the U.S. Plan or the U.K. Plan. All plans are compensatory. For all plans, the requisite service period is the period of time over which the employees contribute to the plans through payroll withholdings. For purposes of recognizing compensation expense, estimates are made for the total withholdings expected over the entire withholding period. The market price of a share of stock at the beginning of the withholding period is then used to estimate the total number of shares that will be purchased using the total estimated withholdings. Compensation cost is recognized ratably over the withholding period. Under the U.S. Plan, the Company is authorized to issue up to 1,200,000 shares of CRD-A to eligible employees. Participating employees can elect to have up to 85% of $ 25,000 of t heir eligible annual earnings withheld to purchase shares at the end of the one-year withholding period which starts each July 1 and ends the following June 30. The purchase price of the stock is 85 % of the lesser of the closing price of a share of such stock on the first day or the last day of the withholding period. Participating employees may cease payroll withholdings during the withholding period and/or request a refund of all amounts withheld before any shares are purchased. During the years ended December 31, 2021, 2020 and 2019, a total of 155,293 , 114,408 , and 131,100 shares, respectively, of CRD-A were issued under the U.S. employee stock purchase plan to the Company's employees at average purchase prices of $ 6.77 , $ 6.71 , and $ 7.38 in 2021, 2020, and 2019, respectively. At December 31, 2021, an estimated 128,000 shares will be issued and purchased under the U.S. Plan in 2022. During the years ended December 31, 2021, 2020, and 2019, compensation expense of $ 349,000 , $ 343,000 , and $ 277,000 , respectively, was recognized for the U.S. employee stock purchase plan. Under th e U.K. Plan, the Company is authorized to issue up to 1,200,000 shares of CRD-A. Under the U.K. Plan, eligible employees can elect to have up to £ 250 withheld from payroll each month to purchase shares after the end of a three-year savings period. The purchase price of a share of stock is 85 % of the market price of the stock at a date prior to the grant date as determined under the U.K. Plan. Participating employees may cease payroll withholdings and/or request a refund of all amounts withheld before any shares are purchased. At December 31, 2021, an estimated 196,000 shares will be eligible for purchase under the U.K. Plan at the end of the current withholding periods. This estimate is subject to change based on future fluctuations in the value of the British pound against the U.S. dollar, future changes in the market price of CRD-A, and future employee participation rates. The purchase price per share of CRD-A under the U.K. Plan ranges from $ 6.64 to $ 8.47 . For the years ended December 31, 2021, 2020, and 2019, compensation expense of $ 241,000 , $ 163,000 , and $ 148,000 , respectively, was recognized for the U.K. Plan. During 2021, 2020, and 2019, a total of 76,457 shares, 2,061 shares, and 289,901 shares, respectively, of CRD-A were issued under the U.K. Plan. Under the International Plan, up to 1,000,000 shares of CRD-A may be issued. Participating employees can elect to have up to $ 21,250 of their eligible annual earnings withheld to purchase up to 5,000 shares of CRD-A at the end of the one-year withholding period which starts each July 1 and ends the following June 30. The purchase price of the stock is 85 % of the lesser of the closing price for a share of such stock on the first day or the last day of the withholding period. Participating employees may cease payroll withholdings during the withholding period and/or request a refund of all amounts withheld before any shares are purchased. During 2021, 2020, and 2019, 4,080 , 4,051 , and 4,264 shares, respectively, were issued under the International Plan. Compensation expense was immaterial for this plan in all three years. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements GAAP defines fair value as the price that would be received to sell an asset or to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1— Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1. The Company values assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Recurring Fair Value Measurements The following table presents the Company's financial assets and liabilities that are measured at fair value on a recurring basis, excluding assets related to the Company's defined benefit pension plans, categorized using the fair value hierarchy: December 31, 2021 Quoted Significant Significant Total (In thousands) Assets: Money market funds (1) $ 10,028 $ — $ — $ 10,028 Liabilities: Contingent earnout liability (2) — — 12,556 12,556 December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (1) $ 10,026 $ — $ — $ 10,026 Liabilities: Contingent earnout liability (2) — — 6,151 6,151 (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 on the Company's Consolidated Balance Sheets in "Cash and cash equivalents." (2) The contingent earnout liability relates to businesses acquired in 2021 and 2020. See Note 3, "Business Acquisitions and Dispositions" for more information. The Level 3 fair value of the contingent earnout liability was estimated using internally-prepared revenue and EBITDA projections, and discount rates determined using a combination of observable and unobservable market data. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets, based upon the term of the contingent earnout agreement. The following table summarizes the change in the fair value of the Company's contingent earnout consideration balance: December 31, 2021 2020 (In thousands) Acquisition-related contingent consideration, beginning of the year $ 6,151 $ 454 Fair value of contingent consideration upon acquisition 9,482 5,808 Change in fair value of contingent consideration 650 ( 111 ) Settlement of contingent consideration ( 1,683 ) — Acquisition-related contingent consideration, end of the year $ 14,600 $ 6,151 As of December 31, 2021 , the earnout liability of $ 2,044,000 for the 2021 earnout period in connection with our acquisitions of Crawford Carvallo and HBA Group is based on the actual achievement of performance targets and is no longer subject to fair value measurement and was accordingly transferred out of Level 3. Changes in fair value of contingent consideration are included in "Other Income/(Loss)" on the Consolidated Statement of Operations. Fair Value Disclosures 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 During 2020, the Company impaired and expensed goodwill of $ 17,674,000 . During 2019, the Company impaired and expensed goodwill of $ 17,484,000 . See Note 1, "Significant Accounting and Reporting Policies" and Note 4, "Goodwill and Intangible Assets," where discussed in more detail. Fair Value Measurements for Defined Benefit Pension Plan Assets The fair value hierarchy is also applied to certain other assets that indirectly impact the Company's consolidated financial statements. Assets contributed by the Company to its defined benefit pension plans become the property of the individual plans. Even though the Company no longer has control over these assets, it is indirectly impacted by subsequent fair value adjustments to these assets. The actual return on these assets impacts the Company's future net periodic benefit cost, as well as amounts recognized in its Consolidated Balance Sheets. The Company uses the fair value hierarchy to measure the fair value of assets held by its U.S. and U.K. defined benefit pension plans. The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.S Qualified Plan at December 31, 2021 and 2020: December 31, 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Asset Category: Cash and cash equivalents $ 20,706 $ — $ — $ 20,706 $ 2,861 $ — $ — $ 2,861 Short-term investment funds — 25,569 — 25,569 — 9,827 — 9,827 Common Collective Equity funds: U.S. — 40,191 — 40,191 — 66,145 — 66,145 International — 25,879 — 25,879 — 28,529 — 28,529 Common Collective Fixed Income Funds and Fixed Income Securities: U.S. 39,304 186,542 — 225,846 36,007 207,219 — 243,226 International — 29,300 — 29,300 — 28,501 — 28,501 Alternative strategy funds — 8,784 13,414 22,198 — 9,248 15,938 25,186 Total Plan Assets $ 60,010 $ 316,265 $ 13,414 389,689 $ 38,868 $ 349,469 $ 15,938 404,275 Other plan liabilities, net (a) ( 1,522 ) ( 7,336 ) Net Plan Assets $ 388,167 $ 396,939 (a) net amounts payable for unsettled security transactions. The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.K. plans at December 31, 2021 and 2020: December 31, 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Asset Category: Cash and cash equivalents $ 33,518 $ — $ — $ 33,511 $ 2,613 $ — $ — $ 2,613 Common Collective Equity funds: U.S. — — — — — 44,461 — 44,461 International — — — — — 7,510 — 7,510 Common Collective Fixed Income Funds and Fixed Income Securities: Short-term Investment funds: — 64,704 — 64,704 — 162,276 — 162,276 Government securities — 141,870 — 141,870 — 42,564 — 42,564 Alternative strategy funds 3,896 56,883 — 60,779 — 34,958 — 34,958 Real estate funds — — 11,255 11,255 — — 9,572 9,572 Total $ 37,414 $ 263,457 $ 11,255 $ 312,119 $ 2,613 $ 291,769 $ 9,572 $ 303,954 Short-term investment funds consist primarily of funds with a maturity of 60 days or less and are valued at amortized cost which approximates fair value. Equity securities consist primarily of common collective funds (Level 2). Common collective funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. Fixed income securities consist of money market funds, government securities, corporate bonds and debt securities, mortgage-backed securities and other common collective funds. Government securities are valued by third-party pricing sources and are valued daily in an active market (Level 1). Corporate bonds are valued using either the yields currently available on comparable securities of issuers with similar credit ratings or using a discounted cash flows approach that utilizes observable inputs, such as current yields of similar instruments, and includes adjustments for valuation adjustments from internal pricing models which use observable inputs such as issuer details, interest rates, yield curves, default rates and quoted prices for similar assets (Level 2). Mortgage-backed securities are valued by pricing service providers that use broker-dealer quotations or valuation estimates from their internal pricing models (Level 2). Other common collective funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date (Level 2). Alternative strategy funds valued at the net asset value per share multiplied by the number of shares held as of the measurement date (Level 2). Alternative strategy funds may include derivative instruments such as futures, forward contracts, options and swaps and are used to help manage risks. Derivative instruments are generally valued by the investment managers or in certain instances by third party pricing sources (Level 2) or may, due to the inherent uncertainty of valuation for those investments, differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material (Level 3). Real estate funds are primarily property unit trusts whose values are primarily reported by the fund manager and are based on valuation of the underlying investments which include inputs such as cost, discounted cash flows, independent appraisals and market-based comparable data (Level 3). The fair values may, due to the inherent uncertainty of valuation for those investments, differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material. Changes in fair value related to assets still held at the reporting date are included in "Accumulated Other Comprehensive Loss" on the Consolidated Balance Sheet. The following table provides a reconciliation of the beginning and ending balance of Level 3 assets within the Company's U.S. and U.K. pension plans during the years ended December 31, 2021 and 2020: U.S U.K. (in thousands) Balance at December 31, 2019 $ 14,766 $ 9,735 Actual return on plan assets: Related to assets still held at the reporting date 1,172 ( 163 ) Balance at December 31, 2020 15,938 9,572 Actual return on plan assets: Related to assets still held at the reporting date 3,575 1,683 Purchases, sales and settlements, net ( 6,099 ) — Balance at December 31, 2021 $ 13,414 $ 11,255 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 13. Segment and Geographic Information In connection with the realignment of operating segment manager responsibilities in January 2021, the Company has realigned its operating segments by moving to a global service line reporting structure consisting of Loss Adjusting, TPA: Broadspire and Platform Solutions. The Company's revised reportable segments are comprised of the following: • Loss Adjusting, which services the global property and casualty market. This is comprised of the previously reported Crawford Claims Solutions segment, excluding Networks (as defined below) and Crawford Legal Services, and the Global Technical Services service line previously reported within Crawford Specialty Solutions. • TPA: Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers worldwide. This is comprised of the previously reported Broadspire segment and the Crawford Legal Services service line previously reported within the Crawford Claims Solutions segment. • Platform Solutions, which consists of Contractor Connection and Networks service lines. This is comprised of the previously reported Contractor Connection service line within Crawford Specialty Solutions and the Networks service line, which includes Catastrophe operations, WeGoLook, and certain international network businesses previously reported within the Crawford Claims Solutions segment. The prior periods have been restated to reflect the change in reportable segments. The Crawford Loss Adjusting and Crawford TPA Solutions reportable segments represent the aggregation of certain geographic operating segments within those service lines. The Company's three reportable segments represent components of the business for which separate financial information is available, and which is evaluated regularly by the CODM. The segments, organized based upon the nature of services, are: Crawford Loss Adjusting, which primarily serves the global property and casualty insurance company markets; Crawford TPA Solutions, which serves the global casualty, disability and self-insurance marketplace; and Crawford Platform Solutions which serves the global property and casualty insurance company markets. Intersegment sales are recorded at cost and are not material. Operating earnings is the primary financial performance measure used by the Company's senior management and the CODM to evaluate the financial performance of the Company's three reportable segments and make resource allocation 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 and other costs, gain on disposition of business line, arbitration and claim settlements, 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 reportable segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process. In the normal course of its business, the Company sometimes pays for certain out-of-pocket expenses that are thereafter reimbursed by its clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in the Company's consolidated results of operations. However, in evaluating segment results, Company management excludes these reimbursements and related expenses from segment results, as they offset each other. Financial information as of and for the years ended December 31, 2021, 2020, and 2019 related to the Company's reportable segments is presented below. Crawford Crawford Crawford Total (In thousands) 2021 Revenues before reimbursements $ 475,587 $ 397,964 $ 228,481 $ 1,102,032 Segment operating earnings 22,990 17,567 36,334 76,891 Depreciation and amortization (1) 2,884 7,966 3,793 14,643 Assets (2) 246,360 97,282 123,635 467,277 2020 Revenues before reimbursements $ 438,491 $ 371,392 $ 172,609 $ 982,492 Segment operating earnings 41,104 20,507 27,650 89,261 Depreciation and amortization (1) 2,405 9,451 2,647 14,503 Assets (2) 197,918 94,771 71,612 364,301 2019 Revenues before reimbursements $ 457,484 $ 397,626 $ 150,692 $ 1,005,802 Segment operating earnings 30,125 28,506 26,677 85,308 Depreciation and amortization (1) 3,405 10,267 2,576 16,248 Assets (2) 232,172 89,333 66,331 387,836 (1) Excludes amortization expense of finite-lived customer relationships and trade name intangible assets. (2) Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. Revenues by geographic region and major service line for the Crawford Loss Adjusting, Crawford TPA Solutions and Crawford Platform Solutions segme nts are shown in Note 2, "Revenue Recognition." Capital expenditures for the years ended December 31, 2021, 2020, and 2019 are shown in the following table: Year Ended December 31, 2021 2020 2019 (In thousands) Crawford Loss Adjusting $ 3,598 $ 1,229 $ 1,625 Crawford TPA Solutions 8,765 6,982 4,331 Crawford Platform Solutions 3,681 12,099 2,746 Corporate 14,910 17,070 12,422 Total capital expenditures $ 30,954 $ 37,380 $ 21,124 The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2021, 2020, and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In thousands) Segments' revenues before reimbursements $ 1,102,032 $ 982,492 $ 1,005,802 Reimbursements 37,199 33,703 41,825 Total consolidated revenues $ 1,139,231 $ 1,016,195 $ 1,047,627 The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2021, 2020, and 2019 were as follows: Year Ended December 31, 2021 2020 2019 (In thousands) Operating earnings of all reportable segments $ 76,891 $ 89,261 $ 85,308 Unallocated corporate and shared costs and credits ( 14,386 ) ( 17,431 ) ( 7,699 ) Net corporate interest expense ( 6,559 ) ( 7,923 ) ( 10,774 ) Stock option expense ( 1,053 ) ( 1,122 ) ( 1,885 ) Amortization of acquisition-related intangible assets ( 11,029 ) ( 11,653 ) ( 11,277 ) Goodwill and intangible asset impairment charges — ( 17,674 ) ( 17,484 ) Arbitration and claim settlements — — ( 12,552 ) Restructuring and other costs, net — ( 8,133 ) — Gain on disposition of businesses, net — 13,763 — Income before income taxes $ 43,864 $ 39,088 $ 23,637 The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at 2021 and 2020 are presented in the following table: December 31, 2021 2020 (In thousands) Assets of reportable segments $ 467,277 $ 364,301 Corporate assets: Cash and cash equivalents 53,228 44,656 Income taxes receivable 4,936 1,269 Prepaid expenses and other current assets 34,576 29,490 Net property and equipment 33,721 36,402 Operating lease right-of-use asset, net 99,369 109,315 Capitalized software costs, net 75,802 71,021 Deferred income tax assets 21,266 25,595 Other noncurrent assets 62,464 70,935 Total corporate assets 385,362 388,683 Total assets $ 852,639 $ 752,984 Revenues and long-lived assets for the U.S., U.K. and Canada are set out below as these countries are material for geographical area disclosure. For the purposes of these geographic area disclosures, long-lived assets consist of the net property and equipment, capitalized software costs, net and operating lease right-of-use, net line items on the Company's Consolidated Balance Sheets and excludes intangible assets and goodwill. U.S. U.K. Canada All Other Total (In thousands) 2021 Revenues before reimbursements $ 658,785 $ 134,663 $ 84,945 $ 223,639 $ 1,102,032 Long-lived assets 145,061 15,923 19,579 28,329 208,892 2020 Revenues before reimbursements 570,820 128,674 89,162 193,836 982,492 Long-lived assets 151,906 20,290 14,404 30,138 216,738 2019 Revenues before reimbursements 569,205 126,337 114,438 195,822 1,005,802 Long-lived assets 140,560 20,749 17,999 20,916 200,224 |
Client Funds
Client Funds | 12 Months Ended |
Dec. 31, 2021 | |
Client Funds [Abstract] | |
Client Funds | 14. Client Funds The Company maintains funds in custodial accounts at financial institutions to administer claims for certain clients. These funds are not available for the Company's general operating activities and, as such, have not been recorded in the accompanying Consolidated Balance Sheets. The amount of these funds tot aled $ 555,821,000 and $ 537,531,000 at December 31, 2021 and 2020 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. 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 December 31, 2021 , the aggregate committed amount of letters of credit outstanding under the facility was $ 11,277,000 . From time to time, the Company enters into certain agreements for the purchase or sale of assets or businesses that contain provisions that may require the Company to make additional payments in the future depending upon the achievement of specified operating results of the acquired company, or provide the Company with an option or similar right to purchase additional assets. 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 probable risks. No assurances can be provided, however, that the result of any such action, claim or proceeding, now known or occurring in the future, will not result in a material adverse effect on our business, financial condition or results of operations. 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. I n 2019 the Company recognized $ 12,552,000 for an arbitration settlement related to additional payments awarded to former executives of its former Garden City Group related to their departure in 2015. There are no other potential claimants related to this matter. This pretax expense is presented in the Consolidated Statements of Operations as a separate charge "Arbitration and claim settlements." |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs, Net | 16. Restructuring and Other Costs, Net The Company incurred net restructuring and other costs of $ 8,133,000 in 2020. There were no restructuring and other costs in 2021 or 2019. Restructuring costs incurred during the year ended December 31, 2020 were predominantly comprised of severance costs, asset impairments, and lease termination costs. Severance and other termination costs relate to efforts to consolidate and streamline various functions of our workforce, both in operations and administrative functions. Asset impairments, including costs incurred for obsolete software, relate to decisions to close certain operations, and lease termination costs related to the exiting of certain leased facilities. These costs were partially offset by certain non-operating credits that occurred related to a cost method investment and sale of internet protocol addresses. The following table shows the costs incurred by type of restructuring activity: Year ended December 31 2021 2020 2019 (In thousands) Severance benefits $ — $ 9,350 $ — Asset impairments and lease termination costs — 2,538 — Gain on fair value remeasurement of cost and equity method investments — ( 1,099 ) — Liquidation dividend from a cost method investment — ( 1,247 ) — Gain on sale of internet protocol addresses — ( 1,409 ) — Total restructuring and other costs, net $ — $ 8,133 $ — As of December 31, 2021, the following liabilities remained on the Company's Consolidated Balance Sheets related to restructuring charges recorded in 2020. The rollforwards of these costs to December 31, 2021 were as follows: Restructuring Charges Accrued compensation and related costs Other accrued liabilities Total Balance at December 31, 2019 342 472 814 Additions 9,112 648 9,760 Adjustments to accruals ( 453 ) ( 472 ) ( 925 ) Cash payments ( 5,632 ) ( 58 ) ( 5,690 ) Balance at December 31, 2020 3,369 590 3,959 Additions — — — Adjustments to accruals ( 561 ) 27 ( 534 ) Cash payments ( 2,520 ) ( 489 ) ( 3,009 ) Balance at December 31, 2021 $ 288 $ 128 $ 416 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events Segment Realignment In connection with the realignment of management responsibilities subsequent to January 1, 2022, the Company has realigned its operating segments by moving to a geographic reporting structure consisting of North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. The Company's revised reportable segments are comprised of the following: • North America Loss Adjusting, which services the North American property and casualty market. This is comprised of the previously reported Crawford Loss Adjusting segment in the U.S. and Canada, including Global Technical Services and edjuster. The Canadian operations will include all operations within that country, including those previously reported within the Crawford TPA Solutions and Crawford Platform Solutions segments. • International Operations, which services the global property and casualty market outside North America. This is comprised of the previously reported Crawford Loss Adjusting segment outside of North America, including Crawford Legal Services which was previously within the Crawford TPA Solutions segment. The International Operations will include all operations within the respective countries, including those previously reported within the Crawford TPA Solutions and Crawford Platform Solutions segments. • Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers in the U.S. • Platform Solutions, which consists of the Contractor Connection, Networks, and Subrogation service lines in the U.S. The Networks service line includes Catastrophe operations and WeGoLook. The succeeding interim and annual periods will disclose the reportable segments under the new basis with prior periods restated to reflect the change. Asset Disposition The Company sold its Canadian head office building in Kitchener, Ontario Canada in the first quarter of 2022 for $ 3.1 million and expects to recognize an estimated pretax gain on disposal of $ 1.8 million. Repurchase Authorization On February 10, 2022, the Company's Board of Directors authorized the addition of 5,000,000 shares of CRD-A or CRD-B (or a combination of the two) to its 2021 Repurchase Authorization which had a remaining authorization to purchase 413,317 shares at December 31, 2021. Under the new repurchase program, repurchases may be made through December 31, 2023 in the open market or privately negotiated transactions at such times and for such prices as management deems appropriate, subject to applicable regulatory guidelines. The new authorization does not obligate Crawford to acquire any stock, and purchases may be commenced or suspended at any time based on market conditions and other factors that the Company deems appropriate. |
Significant Accounting and Re_2
Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements were prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") and include the accounts of the Company, its majority-owned subsidiaries, and variable interest entities in which the Company is deemed to be the primary beneficiary. Significant intercompany transactions are eliminated in consolidation. 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 in accordance with the provisions of Accounting Standards Codification ("ASC") 810, "Consolidation," in order to provide sufficient time for accumulation of their results. Accordingly, the Company's December 31, 2021, 2020, and 2019 consolidated financial statements include the financial position of such operations as of October 31, 2021 and 2020, respectively, and the results of their operations and cash flows for the fiscal periods ended October 31, 2021, 2020, and 2019, respectively. The Company has controlling ownership interests in several entities that are not wholly-owned by the Company. The financial results and financial positions of these controlled entities are included in the Company's consolidated financial statements, including the controlling interests, noncontrolling interests, and redeemable noncontrolling interests. The noncontrolling interests and redeemable noncontrolling interests represent the equity interests in these entities that are not attributable, either directly or indirectly, to the Company. On the Company's Consolidated Statements of Operations, net income or loss is separately attributed to the controlling interests and noncontrolling interests and redeemable noncontrolling interests. 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 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. The Company consolidates the results of a variable interest entity ("VIE") when it is determined to be the primary beneficiary. In accordance with GAAP, in determining whether the Company is the primary beneficiary of a VIE for financial reporting purposes, it considers whether it has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether it has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. The Company sold its 51 % interest in Lloyd Warwick International Limited ("LWI") to a third party in June 2020. Prior to the sale, LWI was considered a VIE of the Company. As the primary beneficiary of LWI, the Company consolidated the results of LWI because of its controlling ownership interest and because Crawford had the obligation to absorb LWI's losses through the additional financial support that Crawford may be obligated to provide. As a result of the sale, LWI is no longer considered a VIE of the Company, and the Company no longer consolidates the results of LWI nor is obligated to provide financial support to LWI. See Note 3, “Business Acquisitions and Dispositions” of our accompanying consolidated financial statements for further discussion related to the sale of the Company’s interest in LWI. 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 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 December 31, 2021 and 2020 , the liabilities of this deferred compensation plan were $ 7,060,000 and $ 7,961,000 , 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 $ 9,925,000 and $ 16,323,000 , respectively. These liabilities and assets are included in "Other noncurrent liabilities" and "Other noncurrent assets" on the Company's Consolidated Balance Sheets, respectively. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company has not applied for governmental loans from the CARES Act or any other governmental programs to support the Company’s U.S. operations. The Company took advantage of certain aspects of the CARES Act such as the deferral of payroll tax deposits during 2020. The Company deferred payroll tax filings of $ 13,000,000 in 2020 as allowed by the CARES Act, and paid $ 6,500,000 of that deferred total in 2021. The Canadian government enacted the Canada Emergency Wage Subsidy (“CEWS”) in 2020 to provide a wage subsidy to employers that suffered reductions in revenue resulting from the COVID-19 pandemic. The Company met the eligibility criteria to receive the wage subsidy in 2020 and 2021. The wage subsidy is included in "Costs of services provided, before reimbursements” or “Selling, general, and administrative expenses” on the Consolidated Statements of Operations, depending on the location of the employees, and is recorded as a reduction of compensation expense. In 2021 and 2020, the Company recognized $ 5,850,000 and $ 13,830,000 , respectively, as a reduction of compensation expense as a result of this subsidy. |
Reportable Segment Change | As described in Note 13, in January 2021, the Company reorganized its global service line structure to consist of Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. Certain prior year amounts among the Company's reportable segments have been reclassified to conform to the current presentation. These reclassifications had no effect on the Company's reported consolidated results. |
Management's Use of Estimates | Management's 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, 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. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition Revenues are recognized when control of the promised services are 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, it has an unconditional right to consideration as outlined in the Company's contracts. The Company's Crawford Loss Adjusting segment generates revenue for claims management and adjusting services globally to insurance companies and self-insured entities related to property and casualty losses caused by physical damage to commercial and residential real property, certain types of personal property and marine losses. This segment also includes the Global Technical Services service line, which 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. The Company's Crawford TPA Solutions segment is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Company's Crawford Platform Solutions segment principally generates revenues through its Contractor Connection and Networks service lines. The Contractor Connection service line generates revenue through its independently managed contractor network, with approximately 6,000 credentialed residential and commercial contractors. See Note 2, “Revenue Recognition” for further discussion on the Company’s revenue recognition policies. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. The fair value of cash and cash equivalents approximates carrying value due to their short-term nature. At December 31, 2021 and December 31, 2020 , cash and cash equivalents included time deposits of approximately $ 1,054,000 and $ 1,473,000 , respectively, that were in financial institutions outside the U.S. Cash balances that are legally restricted as to usage or withdrawal are separately included in "Prepaid expenses and other current assets" within the Consolidated Balance Sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown within the Consolidated Statement of Cash Flows: Year Ended December 31, 2021 2020 2019 (In thousands) Cash and cash equivalents $ 53,228 $ 44,656 $ 51,802 Restricted cash within prepaid expenses and other current assets 461 — — Total cash, cash equivalents and restricted cash $ 53,689 $ 44,656 $ 51,802 |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Expected Credit Losses The Company extends credit based on an evaluation of a client's financial condition and, generally, collateral is not required. Accounts receivable are typically due upon receipt of the invoice and are stated on the Company's Consolidated Balance Sheets at amounts due from clients net of an estimated allowance for expected credit losses. Accounts outstanding longer than the contractual payment terms are considered past due. The fair value of accounts receivable approximates book value due to their short-term contractual stipulations. The Company maintains an allowance for expected credit losses resulting primarily from the inability of clients to make required payments. Such losses are accounted for as bad debt expense. These allowances are established using historical write-off or adjustment information to project future experience and by considering the current creditworthiness of clients, any known specific collection problems, and an assessment of current industry and economic conditions. Actual experience may differ significantly from historical or expected loss results. The Company writes off accounts receivable when they become uncollectible, and any payments subsequently received are accounted for as recoveries. A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2021, 2020, and 2019 is as follows: 2021 2020 2019 (In thousands) Allowance for credit losses, January 1 $ 9,464 $ 9,348 $ 9,625 Add/ (Deduct): Adoption of Topic 326 — ( 464 ) — Provision for bad debt expense 448 1,504 1,588 Write-offs, net of recoveries ( 958 ) ( 908 ) ( 81 ) Adjustments for business acquisitions and dispositions ( 110 ) ( 111 ) — Currency translation and other changes ( 76 ) 95 ( 1,784 ) Allowance for credit losses, December 31 $ 8,768 $ 9,464 $ 9,348 |
Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived Assets | Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived Assets 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 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, 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 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 2021, the Company performed its goodwill impairment testing. The estimated fair value of each reporting unit tested exceed their carrying value by a significant margin. The Company intends to continue to monitor the performance of its 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 our reporting units utilizing the income approach include the discount rate and the terminal growth rate. The discount rates utilized in estimating the fair value of our reporting units in 2021 range between 12.5 % and 15.0 %, 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. During the first quarter of 2020, the Company identified a goodwill impairment indicator in its former 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 the former Crawford Claims Solutions reporting unit to $ 0 as of March 31, 2020. During the fourth quarter of 2019, the Company performed its annual impairment testing on all reporting units. The Company recognized a non-cash goodwill impairment charge in 2019 of $ 17,484,000 related to the valuation of its former Crawford Claims Solutions segment, due to lower forecasts in that reporting unit. 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. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The Company depreciates the cost of property and equipment, including assets recorded under finance leases, over the shorter of the remaining lease term or the estimated useful lives of the related assets, primarily using the straight-line method. The estimated useful lives for property and equipment classifications are as follows: Classification Estimated Useful Lives Furniture and fixtures 3 - 10 years Data processing equipment 3 - 5 years Automobiles and other 3 - 4 years Buildings and improvements 7 - 40 years Property and equipment, including assets under finance leases, consisted of the following at December 31, 2021 and 2020: December 31, 2021 2020 (In thousands) Land $ — $ 338 Buildings and improvements 32,053 32,087 Furniture and fixtures 26,196 28,264 Data processing equipment 55,058 64,781 Automobiles 271 314 Total property and equipment 113,578 125,784 Less accumulated depreciation ( 79,857 ) ( 89,382 ) Net property and equipment $ 33,721 $ 36,402 At December 31, 2021, an office building in Canada and related property and equipment with a net carrying value of $ 1,209,000 was classified as held for sale. This group of assets was included as part of "Prepaid expenses and other current assets" within the Consolidated Balance Sheets. Depreciation on property and equipment, including property under finance leases and amortization of leasehold improvements, was $ 12,481,000 , $ 11,750,000 , and $ 11,363,000 for the years ended December 31, 2021, 2020, and 2019 , respectively. |
Capitalized Software | Capitalized Software Capitalized software costs reflect costs related to internally developed or purchased software used by the Company that has expected future economic benefits. Certain internal and external costs incurred during the application development stage are capitalized. Costs incurred during the preliminary project and post implementation stages, including training and maintenance costs, are expensed as incurred. The majority of these capitalized software costs consist of internal payroll costs and external payments for software development, purchases and related services. These capitalized software costs are typically amortized over periods ranging from three to ten years, depending on the estimated life of each software application. Amortization expense for capitalized software was $ 16,667,000 , $ 16,709,000 , and $ 17,873,000 for the years ended December 31, 2021, 2020, and 2019 , respectively. |
Self-Insured Risks | Self-Insured Risks The Company self-insures certain risks consisting primarily of professional liability, auto liability, and employee medical, disability, and workers' compensation liability. Insurance coverage is obtained for catastrophic property and casualty exposures, including professional liability on a claims-made basis, and those risks required to be insured by law or contract. Most of these self-insured risks are in the U.S. Provisions for claims under the self-insured programs are made based on the Company's estimates of the aggregate liabilities for claims incurred, including estimated legal fees, losses that have occurred but have not been reported to the Company, and for adverse developments on reported losses. The estimated liabilities are calculated based on historical claims experience, the expected lives of the claims, and other factors considered relevant by management. Changes in these estimates may occur as additional information becomes available. The Company believes its provisions for self-insured losses are adequate to cover the expected cost of losses incurred. However, these provisions are estimates and amounts ultimately settled may be significantly greater or less than the provisions established. The estimated liabilities for claims incurred under the Company's self-insured workers' compensation and employee disability programs are discounted at the prevailing risk-free interest rate for U.S. government securities of an appropriate duration. All other self-insured liabilities are undiscounted. At December 31, 2021 and 2020 , accrued liabilities for self-insured risks totaled $ 26,226,000 and $ 25,004,000 , respectively, including current liabilities of $ 13,222,000 and $ 11,390,000 , respectively. The noncurrent liabilities are included in "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets. |
Income Taxes | Income Taxes The Company accounts for certain income and expense items differently for financial reporting and income tax purposes. Provisions for deferred taxes are made in recognition of these temporary differences. The most significant differences relate to accrued compensation, pension plans, self-insurance, and depreciation and amortization. For financial reporting purposes, the provision for income taxes is the sum of income taxes both currently payable and payable on a deferred basis. Currently payable income taxes represent the liability related to the income tax returns for the current year, while the net deferred tax expense or benefit represents the change in the balance of deferred income tax assets or liabilities as reported on the Company's Consolidated Balance Sheets that are not related to balances in "Accumulated other comprehensive loss." The changes in deferred income tax assets and liabilities are determined based upon changes in the differences between the basis of assets and liabilities for financial reporting purposes and the basis of assets and liabilities for income tax purposes, measured by the enacted statutory tax rates in effect for the year in which the Company estimates these differences will reverse. The Company must estimate the timing of the reversal of temporary differences, as well as whether taxable income in future periods will be sufficient to fully recognize any gross deferred tax assets. A valuation allowance is provided when it is deemed more-likely-than-not that some portion or all of a deferred tax asset will not be realized. Other factors which influence the effective tax rate used for financial reporting purposes include changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits. See Note 7, "Income Taxes" for further discussion. Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI in the year the tax is incurred. |
Sales And Other Tax Policy | Sales and Other Taxes In certain jurisdictions, both in the U.S. and internationally, various governments and taxing authorities require the Company to assess and collect sales and other taxes, such as value added taxes, on certain services that the Company renders and bills to its customers. The majority of the Company's revenues are not currently subject to these types of taxes. These taxes are not recorded as additional revenues or expenses in the Company's Consolidated Statements of Operations, but are recorded on the Consolidated Balance Sheets as pass-through amounts until remitted. |
Foreign Currency | Foreign Currency Foreign currency transactions for the years ended December 31, 2021, 2020 and 2019 resulted in net losses of $ 515,000 , $ 219,000 and $ 243,000 , respectively. For operations outside the U.S. whose functional currency is other than the U.S. dollar, results of operations and cash flows are translated into U.S. dollars at average exchange rates during the period, and assets and liabilities are translated at end-of-period exchange rates. The resulting translation adjustments, on a net basis, are included in "Other Comprehensive Income" in the Company's Consolidated Statements of Comprehensive Income, and the accumulated translation adjustment is reported as a component of "Accumulated other comprehensive loss" in the Company's Consolidated Balance Sheets. |
Advertising Costs | Advertising Costs Advertising costs are expensed in the period in which the costs are incurred. Advertising expenses w ere $ 877,000 , $ 990,000 , and $ 2,394,000 , respectively, for the years ended December 31, 2021, 2020 and 2019 . As several conventions were cancelled as a result of the COVID-19 pandemic, the Company’s advertising costs decreased in 2020 and 2021. |
Adoption and Pending Adoption of New 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 years ended December 31, 2021 and 2020. 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 adopted this guidance on January 1, 2021 with no material impact on its disclosures related to its retirement plans. 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. The Company adopted this guidance on January 1, 2021 with no material impact on its results of operations, financial condition or cash flows. Pending Adoption of Recently Issued Accounting Standards Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is currently assessing the impact of the adoption of the new guidance. |
Earnings per Share | Net Income Attributable to Shareholders of Crawford & Company per Common Share The Company computes earnings per share of CRD-A and CRD-B using the two-class method, which allocates the undistributed earnings for 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 CRD-A than on CRD-B, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. During 2021, the Board of Directors declared an equal dividend on CRD-A and CRD-B, while during 2020 and 2019, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. |
Significant Accounting and Re_3
Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown within the Consolidated Statement of Cash Flows: Year Ended December 31, 2021 2020 2019 (In thousands) Cash and cash equivalents $ 53,228 $ 44,656 $ 51,802 Restricted cash within prepaid expenses and other current assets 461 — — Total cash, cash equivalents and restricted cash $ 53,689 $ 44,656 $ 51,802 |
Allowance For Expected Credit Losses | A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2021, 2020, and 2019 is as follows: 2021 2020 2019 (In thousands) Allowance for credit losses, January 1 $ 9,464 $ 9,348 $ 9,625 Add/ (Deduct): Adoption of Topic 326 — ( 464 ) — Provision for bad debt expense 448 1,504 1,588 Write-offs, net of recoveries ( 958 ) ( 908 ) ( 81 ) Adjustments for business acquisitions and dispositions ( 110 ) ( 111 ) — Currency translation and other changes ( 76 ) 95 ( 1,784 ) Allowance for credit losses, December 31 $ 8,768 $ 9,464 $ 9,348 |
Property and Equipment | The estimated useful lives for property and equipment classifications are as follows: Classification Estimated Useful Lives Furniture and fixtures 3 - 10 years Data processing equipment 3 - 5 years Automobiles and other 3 - 4 years Buildings and improvements 7 - 40 years Property and equipment, including assets under finance leases, consisted of the following at December 31, 2021 and 2020: December 31, 2021 2020 (In thousands) Land $ — $ 338 Buildings and improvements 32,053 32,087 Furniture and fixtures 26,196 28,264 Data processing equipment 55,058 64,781 Automobiles 271 314 Total property and equipment 113,578 125,784 Less accumulated depreciation ( 79,857 ) ( 89,382 ) Net property and equipment $ 33,721 $ 36,402 At December 31, 2021, |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents Crawford Loss Adjusting revenues before reimbursements disaggregated by geography for the years ended December 31, 2021 and 2020. (In thousands) Year Ended December 31, 2021 2020 U.S. $ 158,451 $ 128,342 U.K. 102,326 105,446 Canada 54,675 55,552 Australia 72,751 69,407 Europe 52,488 48,732 Rest of World 34,896 31,012 Total Crawford Loss Adjusting Revenues before Reimbursements $ 475,587 $ 438,491 The following table presents Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2021 and 2020. Year Ended December 31, 2021 Year Ended December 31, 2020 (in thousands) Claims Medical Total Claims Medical Total U.S. $ 151,342 $ 149,693 $ 301,035 $ 143,944 $ 149,504 $ 293,448 U.K. 22,693 — 22,693 16,530 — 16,530 Canada 18,307 — 18,307 22,673 — 22,673 Europe and Rest of World 55,929 — 55,929 38,741 — 38,741 Total Crawford TPA Solutions Revenues before Reimbursements $ 248,271 $ 149,693 $ 397,964 $ 221,888 $ 149,504 $ 371,392 The following table presents Crawford Platform Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2021 and 2020. Year Ended December 31, 2021 Year Ended December 31, 2020 (in thousands) Contractor Network Business Subro- Total Contractor Network Business Subro- Total U.S. $ 70,250 $ 124,727 $ 4,322 $ 199,299 $ 71,005 $ 78,025 $ — $ 149,030 U.K. 9,624 20 — 9,644 6,612 86 — 6,698 Canada 7,644 4,319 — 11,963 6,080 4,857 — 10,937 Europe and Rest of World 1,809 5,766 — 7,575 977 4,967 — 5,944 Total Crawford Platform Solutions Revenues before Reimbursements $ 89,327 $ 134,832 $ 4,322 $ 228,481 $ 84,674 $ 87,935 $ — $ 172,609 |
Schedule of Customer Contract Liabilities | The table below presents the deferred revenues balance as of January 1, 2021 and the significant activity affecting deferred revenues during the year ended December 31, 2021: (In Thousands) Customer Contract Liabilities: Deferred Revenue Balance at January 1, 2021 $ 51,369 Annual additions 78,028 Revenue recognized from prior periods ( 30,108 ) Revenue recognized from current year additions ( 40,897 ) Deferred revenue from acquisition 659 Other adjustments ( 3,146 ) Balance as of December 31, 2021 $ 55,905 |
Business Acquisitions and Dis_2
Business Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Valuation Identified Assets Acquired and Liabilities Assumed | Assets acquired and liabilities assumed as of acquisition date are presented in the following table: Crawford Carvallo HBA Group edjuster Inc. Praxis Consulting Inc. BosBoon Expertise Group B.V. October 1, 2020 November 1, 2020 August 23, 2021 October 1, 2021 October 1, 2021 (In thousands) Tangible assets Cash and cash equivalents $ 1,599 $ 240 $ 1,723 $ — $ — Accounts receivable 3,631 1,081 1,518 119 469 Unbilled revenues 3,237 598 1,531 — 597 Right-of-use lease assets 8,743 1,502 418 430 586 Other assets 4,660 205 1,520 316 75 Total tangible assets 21,870 3,626 6,710 865 1,727 Intangible assets Customer relationships 4,118 1,574 5,346 20,000 1,384 Developed technology 1,300 — 2,673 1,500 — Non-compete agreements 1,600 — 157 225 — Tradenames 300 — 1,101 2,125 346 Goodwill 7,738 6,245 12,799 26,195 1,571 Total intangible assets 15,056 7,819 22,076 50,045 3,301 Total assets acquired 36,926 11,445 28,786 50,910 5,028 Liabilities assumed Current liabilities 4,657 2,532 2,066 4,133 1,430 Operating lease liabilities 8,743 1,502 418 430 586 Tax liabilities 2,599 976 2,557 — 378 Total liabilities assumed 15,999 5,010 5,041 4,563 2,394 Net assets acquired before noncontrolling interest 20,927 6,435 23,745 46,347 2,634 Noncontrolling interest 489 — — — — Net assets acquired after noncontrolling interest $ 20,438 $ 6,435 $ 23,745 $ 46,347 $ 2,634 Purchase price (cash) $ 11,583 $ 4,026 $ 20,875 $ 21,544 $ 2,066 Fair value of noncontrolling interest previously held 3,047 — — — — Deferred purchase consideration payable — — 433 20,735 — Fair value of contingent consideration 5,808 2,409 2,437 4,068 568 Fair value of total consideration transferred $ 20,438 $ 6,435 $ 23,745 $ 46,347 $ 2,634 |
Schedule - Preliminary Fair Values Assigned to Identifiable Intangible Assets | The following table shows the preliminary fair values assigned to identifiable intangible assets: Fair Value Weighted-Average Amortization Period (Years) (In thousands) Amortizable tangible assets Customer relationships $ 32,422 15 Developed technology 5,473 10 Non-compete agreements 1,982 8 Tradenames 3,872 7 Total amortizable intangible assets $ 43,749 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020: Loss Adjusting Crawford TPA Solutions Platform Solutions Total (In thousands) Balance at December 31, 2019: Goodwill $ 86,025 $ 168,734 $ 44,381 $ 299,140 Accumulated impairment losses ( 50,587 ) ( 159,424 ) ( 8,487 ) ( 218,498 ) Net goodwill 35,438 9,310 35,894 80,642 2020 Activity: Goodwill of acquired businesses 2,644 2,857 — 5,501 Impairment of goodwill ( 17,674 ) — — ( 17,674 ) Goodwill of disposed business ( 1,990 ) — — ( 1,990 ) Foreign currency effects 79 12 ( 33 ) 58 Balance at December 31, 2020: Goodwill 86,758 171,603 44,348 302,709 Accumulated impairment losses ( 68,261 ) ( 159,424 ) ( 8,487 ) ( 236,172 ) Net goodwill 18,497 12,179 35,861 66,537 2021 Activity: Goodwill of acquired businesses 14,371 6,244 26,195 46,810 Adjustments to prior acquisitions 1,074 1,163 — 2,237 Foreign currency effects 358 452 132 942 Balance at December 31, 2021: Goodwill 102,561 179,462 70,675 352,698 Accumulated impairment losses ( 68,261 ) ( 159,424 ) ( 8,487 ) ( 236,172 ) Net goodwill $ 34,300 $ 20,038 $ 62,188 $ 116,526 |
Schedule of Finite-Lived Intangible Assets | The following is a summary of finite-lived intangible assets acquired through business acquisitions as of December 31, 2021 and 2020: Gross Accumulated Net Weighted- (In thousands, except years) December 31, 2021: Customer relationships $ 160,652 $ ( 111,241 ) $ 49,411 9.3 years Technology-based 22,293 ( 11,547 ) 10,746 6.4 years Trade name 6,393 ( 2,169 ) 4,224 7.0 years Other 7,944 ( 5,706 ) 2,238 4.6 years Total $ 197,283 $ ( 130,663 ) $ 66,619 8.2 years December 31, 2020: Customer relationships $ 131,948 $ ( 101,319 ) $ 30,629 3.3 years Technology-based 18,183 ( 10,174 ) 8,009 6.5 years Trade name 3,123 ( 1,737 ) 1,386 6.0 years Other 5,794 ( 5,489 ) 305 10.1 years Total $ 159,048 $ ( 118,719 ) $ 40,329 6.7 years |
Schedule of Finite-lived Intangible Assets, Future Amortization Expense | At December 31, 2021, annual estimated aggregate amortization expense for intangible assets subject to amortization for the next five years is as follows: Annual Year Ending December 31, (In thousands) 2022 $ 8,224 2023 7,874 2024 7,715 2025 7,438 2026 7,146 |
Schedule of Indefinite-Lived Intangible Assets | The following is a summary of indefinite-lived intangible assets at December 31, 2021 and 2020: Gross Carrying Accumulated Net Carrying (In thousands) December 31, 2021: Trade names $ 32,608 $ ( 1,656 ) $ 30,952 December 31, 2020: Trade names $ 32,503 $ ( 1,656 ) $ 30,847 |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt, Including Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt Instruments | Long-term debt consisted of the following at December 31, 2021 and 2020: December 31, 2021 2020 (In thousands) Credit Facility $ 174,594 $ 112,855 Finance lease and other obligations 425 740 Total long-term debt and finance leases 175,019 113,595 Less: portion of Credit Facility classified as short-term ( 10,616 ) ( 1,570 ) Less: current installments of finance leases and other obligations ( 88 ) ( 267 ) Total long-term debt and finance leases, less current installments $ 164,315 $ 111,758 |
Schedule of Maturities of Long-Term Debt | Principal repayments of long-term debt, including current portions, finance leases and other obligations, as of December 31, 2021 are expected to be as follows, assuming no prepayments or extensions beyond the stated maturity: Long-term Debt Finance Lease and Other Obligations Total Year Ending December 31, (In thousands) 2022 $ 10,616 $ 88 $ 10,704 2023 — 264 264 2024 — 48 48 2025 — 25 25 2026 163,978 — 163,978 Total $ 174,594 $ 425 $ 175,019 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease-Related Assets and Liabilities | The following table presents the lease-related assets and liabilities recorded on the Company's Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet December 31, December 31, Assets: Operating lease Operating lease right-of-use assets, net $ 99,369 $ 109,315 Liabilities: Current operating lease liabilities Current operating lease liabilities 25,238 32,745 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 88,408 93,228 Total operating lease liabilities $ 113,646 $ 125,973 Weighted-Average Remaining Lease Term 6.16 years 6.30 years Weighted-Average Discount Rate 5.1 % 5.3 % |
Lease Cost | The components of operating lease costs within the Company's Consolidated Statements of Operations consisted of the following: Year Ended (in thousands) December 31, 2021 December 31, 2020 Operating lease cost $ 38,492 $ 38,242 Variable lease cost 5,177 8,037 Sublease income 3,875 4,090 |
Supplemental Cash Flow Information Related to Operating leases | Supplemental cash flow information related to operating leases were as follows: Year Ended (in thousands) December 31, 2021 December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 40,251 $ 37,091 Right-of-use assets obtained in exchange for lease obligations $ 22,168 $ 40,535 |
Operating Lease Maturities | Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows: (in thousands) December 31, 2021 2022 $ 29,944 2023 22,745 2024 18,043 2025 14,278 2026 12,859 Thereafter 35,427 Total undiscounted lease payments 133,296 Less imputed interest ( 19,650 ) Present value of future lease payments $ 113,646 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (loss) Before Income Taxes | Income before income taxes consisted of the following: Year Ended December 31, 2021 2020 2019 (In thousands) U.S. $ 39,569 $ ( 1,029 ) $ ( 1,472 ) Foreign 4,295 40,117 25,109 Income before income taxes $ 43,864 $ 39,088 $ 23,637 |
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following: Year Ended December 31, 2021 2020 2019 (In thousands) Current: U.S. federal and state $ 11,070 $ 12,561 $ 1,546 Foreign 5,238 8,457 9,525 Deferred: U.S. federal and state ( 126 ) ( 8,870 ) 1,643 Foreign ( 2,866 ) ( 135 ) 1,397 Provision for income taxes $ 13,316 $ 12,013 $ 14,111 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes is reconciled to the federal statutory income tax rate of 21 % in 2021, 2020, and 2019, as follows: Year Ended December 31, 2021 2020 2019 (In thousands) Federal income taxes at statutory rate $ 9,211 $ 8,208 $ 4,964 State income taxes, net of federal benefit 2,310 325 505 Goodwill impairment — 2,322 1,883 Foreign taxes 2,896 3,328 2,276 Change in valuation allowance ( 1,185 ) ( 374 ) 3,919 Research and development credits ( 436 ) ( 1,001 ) ( 626 ) Foreign tax credits ( 1,083 ) ( 1,150 ) ( 283 ) Nondeductible meals and entertainment 254 377 724 Change in permanent reinvestment assertion 627 776 — Disposals and liquidations of businesses — ( 935 ) — Global intangible low-tax income, net of credits 531 ( 54 ) 892 Foreign-derived intangible income deduction ( 94 ) ( 115 ) ( 315 ) Tax rate changes ( 431 ) ( 359 ) 486 Other 716 665 ( 314 ) Provision for income taxes $ 13,316 $ 12,013 $ 14,111 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes consisted of the following at December 31, 2021 and 2020: 2021 2020 (In thousands) Accounts receivable allowance $ 1,386 $ 1,019 Accrued compensation 16,182 14,655 Accrued pension liabilities — 4,950 Self-insured risks 5,280 5,746 Deferred revenues 5,045 5,376 Interest 2,907 2,419 Tax credit carryforwards 3,326 7,090 Loss carryforwards 28,122 22,805 Lease liability 28,547 31,435 Other 2,218 2,158 Gross deferred income tax assets 93,013 97,653 Unbilled revenues 6,290 5,311 Accrued pension liabilities 2,491 — Repatriated earnings 937 776 Depreciation and amortization 27,593 23,474 Lease right-of-use asset 24,958 27,513 Gross deferred income tax liabilities 62,269 57,074 Net deferred income tax assets before valuation allowances 30,744 40,579 Valuation allowance ( 14,114 ) ( 16,579 ) Net deferred income tax assets $ 16,630 $ 24,000 Amounts recognized in the Consolidated Balance Sheets consist of: Long-term deferred income tax assets included in "Deferred income tax assets" 21,266 25,595 Long-term deferred income tax liabilities included in "Other noncurrent liabilities" ( 4,636 ) ( 1,595 ) Net deferred income tax assets $ 16,630 $ 24,000 |
Summary of Valuation Allowance | Changes in the Company's deferred tax valuation allowance are recorded as adjustments to the provision for income taxes. An analysis of the Company's deferred tax asset valuation allowances is as follows for the years ended December 31, 2021, 2020, and 2019. 2021 2020 2019 (In thousands) Balance, beginning of year $ 16,579 $ 28,128 $ 25,654 Other changes ( 2,465 ) ( 11,549 ) 2,264 Balance, end of year $ 14,114 $ 16,579 $ 28,128 |
Summary of Unrecognized Income Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows: (In thousands) Balance at December 31, 2018 $ 7,401 Additions for tax provisions related to the current year 515 Additions for tax positions related to prior years 646 Reductions for tax positions related to the prior year ( 113 ) Reductions for settlements ( 2,642 ) Lapses of applicable statutes of limitation ( 520 ) Balance at December 31, 2019 $ 5,287 Additions for tax provisions related to the current year 92 Additions for tax positions related to prior years 2 Reductions for tax positions related to prior years ( 505 ) Reductions for settlements ( 516 ) Lapses of applicable statutes of limitation ( 582 ) Balance at December 31, 2020 $ 3,778 Reductions for tax positions related to prior years ( 11 ) Reductions for settlements ( 21 ) Currency translation adjustment 4 Balance at December 31, 2021 $ 3,750 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The majority of the Company's defined benefit pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2021 and 2020: December 31, 2021 2020 (In thousands) Projected benefit obligations $ 448,487 $ 494,273 Fair value of plans' assets 427,670 437,234 |
Schedule Of Fair Value Of Plan Assets In Excess Of Benefit Obligations Table Text Block | Certain of the Company's U.K. Plans have fair values of plan assets that exceed the projected benefit obligations. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2021 and 2020: December 31, 2021 2020 (In thousands) Projected benefit obligations $ 281,828 $ 267,200 Fair value of plans' assets 312,119 303,957 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | A reconciliation of the beginning and ending balances of the projected benefit obligations and the fair value of plans' assets for the Company's defined benefit pension plans as of the plans' most recent measurement dates is as follows: Year Ended December 31, 2021 2020 (In thousands) Projected Benefit Obligations: Beginning of measurement period $ 761,473 $ 748,258 Service cost 1,208 1,295 Interest cost 11,321 16,643 Employee contributions 36 35 Actuarial (gain) loss ( 10,034 ) 49,938 Plan settlements ( 249 ) ( 1,450 ) Plan amendments ( 1,663 ) — Benefits paid ( 48,465 ) ( 55,150 ) Foreign currency effects 16,688 1,904 End of measurement period 730,315 761,473 Fair Value of Plans' Assets: Beginning of measurement period 741,191 714,017 Actual return on plans' assets 18,490 71,446 Employer contributions 9,892 10,446 Employee contributions 36 35 Plan settlements ( 249 ) ( 1,450 ) Benefits paid ( 48,465 ) ( 55,150 ) Foreign currency effects 18,894 1,847 End of measurement period 739,789 741,191 Overfunded/(Unfunded) Status $ 9,474 $ ( 20,282 ) |
Schedule of Net Funded Status | The funded status of the Company's defined benefit pension plans recognized in the Consolidated Balance Sheets at December 31 consisted of: December 31, 2021 2020 (In thousands) U.S. Qualified Plan $ 15,181 $ 51,645 Other international plans 2,710 2,241 Subtotal, included in "Accrued pension liabilities" 17,891 53,886 U.K. prepaid pension asset included in "Other noncurrent assets" ( 30,291 ) ( 36,757 ) Unfunded status of nonqualified defined benefit deferred pension plans included in "Other accrued liabilities" 293 316 Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities" 2,633 2,837 Total (overfunded)/underfunded status $ ( 9,474 ) $ 20,282 Accumulated other comprehensive loss, before income taxes $ ( 251,629 ) $ ( 264,244 ) |
Schedule of Net Unrecognized Actuarial Gain (loss) | The following tables set forth the changes in accumulated other comprehensive loss during 2021 and 2020 for the Company's defined benefit retirement plans and post-retirement medical benefits plan on a combined basis: Defined Benefit Post-Retirement (In thousands) Net unrecognized actuarial (loss) gain, December 31, 2019 $ ( 268,427 ) $ 152 Amortization of net loss (gain) 10,804 ( 152 ) Net loss arising during the year ( 6,510 ) — Currency translation ( 111 ) — Net unrecognized actuarial loss, December 31, 2020 ( 264,244 ) — Amortization of net loss 10,455 — Net gain arising during the year 4,939 — Currency translation ( 2,779 ) — Net unrecognized actuarial loss, December 31, 2021 $ ( 251,629 ) $ — |
Schedule of Expected Benefit Payments | Net periodic benefit (credit) cost related to all of the Company's defined benefit pension plans recognized in the Company's Consolidated Statements of Operations for the years ended December 31, 2021, 2020, and 2019 included the following components: Year Ended December 31, 2021 2020 2019 (In thousands) Service cost $ 1,208 $ 1,295 $ 1,278 Interest cost 11,321 16,643 22,376 Expected return on assets ( 25,248 ) ( 28,016 ) ( 29,654 ) Amortization of actuarial loss 10,455 10,804 10,837 Net periodic benefit (credit) cost $ ( 2,264 ) $ 726 $ 4,837 Over the next ten years, the following benefit payments are expected to be required to be made from the Company's U.S. and U.K. defined benefit pension plans: Year Ending December 31, Expected Benefit (In thousands) 2022 $ 40,980 2023 40,973 2024 40,855 2025 40,792 2026 40,610 2027-2031 197,809 |
Schedule of Assumptions Used | Certain assumptions used in computing the benefit obligations and net periodic benefit cost for the U.S. and U.K. defined benefit pension plans were as follows: U.S. Qualified Plan: 2021 2020 Discount rate used to compute benefit obligations 2.76 % 2.38 % Discount rate used to compute periodic benefit cost 2.38 % 3.15 % Expected long-term rates of return on plans' assets 4.70 % 4.70 % U.K. Defined Benefit Plans: 2021 2020 Discount rate used to compute benefit obligations 1.82 % 1.60 % Discount rate used to compute periodic benefit cost 1.60 % 1.93 % Expected long-term rates of return on plans' assets 2.10 % 2.54 % |
Schedule of Allocation of Plan Assets | Asset allocations at the respective measurement dates, by asset category, for the Company's U.S. and U.K. qualified defined benefit pension plans were as follows: U.S. Qualified Plan U.K. Plans December 31, 2021 2020 2021 2020 Equity securities 16.9 % 23.4 % — 17.9 % Fixed income securities 65.5 % 67.2 % 66.2 % 68.3 % Alternative strategies 5.7 % 6.2 % 23.1 % 13.0 % Cash, cash equivalents and short-term investment funds 11.9 % 3.2 % 10.7 % 0.8 % Total asset allocation 100.0 % 100.0 % 100.0 % 100.0 % |
Common Stock and Earnings per_2
Common Stock and Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computations of Basic Net Income Attributable to Shareholders of Crawford & Company per Common Share | The computations of basic net income attributable to shareholders of Crawford & Company per common share were as follows: Year Ended December 31, 2021 2020 2019 CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B (In thousands, except earnings per share) Earnings per share - basic: Numerator: Allocation of undistributed earnings $ 10,464 $ 7,565 $ 10,743 $ 7,908 $ ( 392 ) $ ( 294 ) Dividends paid 7,376 5,287 5,815 3,830 8,592 4,579 Net income available to common shareholders, basic 17,840 12,852 16,558 11,738 8,200 4,285 Denominator: Weighted-average common shares outstanding, basic 30,760 22,237 30,605 22,527 30,637 22,975 Earnings per share - basic $ 0.58 $ 0.58 $ 0.54 $ 0.52 $ 0.27 $ 0.19 |
Schedule of Computations of Diluted Net Income Attributable to Shareholders of Crawford & Company per Common Share | The computations of diluted net income attributable to shareholders of Crawford & Company per common share were as follows: Year Ended December 31, 2021 2020 2019 CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B (In thousands, except earnings (loss) per share) Earnings per share - diluted: Numerator: Allocation of undistributed earnings $ 10,602 $ 7,427 $ 10,781 $ 7,870 $ ( 394 ) $ ( 292 ) Dividends paid 7,376 5,287 5,815 3,830 8,592 4,579 Net income available to common shareholders, diluted 17,978 12,714 16,596 11,700 8,198 4,287 Denominator: Weighted-average common shares outstanding, basic 30,760 22,237 30,605 22,527 30,637 22,975 Weighted-average effect of dilutive securities (1) 983 — 252 — 453 — Weighted-average number of shares outstanding, diluted 31,743 22,237 30,857 22,527 31,090 22,975 Earnings per share - diluted $ 0.57 $ 0.57 $ 0.54 $ 0.52 $ 0.26 $ 0.19 |
Schedule of Antidilutive Shares Excluded from Computation of Diluted Earnings per Share | Listed below are the shares excluded from the denominator in the above computation of diluted earnings per share for CRD-A because their inclusion would have been anti-dilutive: Year Ended December 31, 2021 2020 2019 (In thousands) Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period 838 1,996 622 Performance stock grants excluded because performance conditions had not been met (1) 335 578 717 (1) Compensation cost is recognized for these performance stock grants based on expected achievement rates; however no consideration is given for these performance stock grants when calculating earnings per share until the performance measurements are actually achieved. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 Consolidated Balance Sheets were as follows: Foreign currency Retirement AOCL (In thousands) Balance at December 31, 2019 $ ( 35,850 ) $ ( 171,057 ) $ ( 206,907 ) Other comprehensive income before reclassifications 4,595 — 4,595 Unrealized net losses arising during the year — ( 4,966 ) ( 4,966 ) Amounts reclassified from accumulated other comprehensive income to net income (1) — 7,959 7,959 Net current period other comprehensive income 4,595 2,993 7,588 Acquisition/Disposition of noncontrolling interest 463 — 463 Balance at December 31, 2020 ( 30,792 ) ( 168,064 ) ( 198,856 ) Other comprehensive income before reclassifications 9,032 — 9,032 Unrealized net gains arising during the year — 1,618 1,618 Amounts reclassified from accumulated other comprehensive income to net income (1) — 7,765 7,765 Net current period other comprehensive income 9,032 9,383 18,415 Balance at December 31, 2021 $ ( 21,760 ) $ ( 158,681 ) $ ( 180,441 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's Consolidated Statements of Operations. See Note 8, "Retirement Plans" for additional details. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of Option Activity | A summary of option activity as of December 31, 2021, 2020 and 2019, and changes during each year, is presented below: Shares Weighted- Weighted- Aggregate (In thousands) (In thousands) Outstanding at December 31, 2018 1,294 $ 8.60 8.1 years $ 667 Granted 591 9.70 Exercised ( 111 ) 5.91 Forfeited or expired ( 80 ) 9.24 Outstanding at December 31, 2019 1,694 9.13 7.9 years 3,969 Granted 660 8.73 Exercised — — Forfeited or expired ( 458 ) 9.05 Outstanding at December 31, 2020 1,896 9.01 7.4 years 114 Granted — — Exercised — — Forfeited or expired ( 278 ) 8.90 Outstanding at December 31, 2021 1,618 $ 8.99 6.5 years $ 143 Vested and Exercisable at December 31, 2021 1,208 $ 9.02 6.0 years $ 80 |
Schedule of Weighted-Average Assumptions to Estimate Fair Value of Each Option | The fair value of each option was estimated on the date of grant using the Black-Scholes-Merton option-pricing formula, with the following weighted average assumptions. There were no stock options granted in 2021: 2021 2020 2019 Expected dividend yield — 3.02 % 3.80 % Expected volatility — 35.48 % 36.73 % Risk-free interest rate — 1.38 % 2.56 % Expected term of options — 7 years 7 years |
Nonvested Performance Shares | A summary of the status of the Company's nonvested performance shares as of December 31, 2021, 2020 and 2019, and changes during each year, is presented below: Shares Weighted-Average Nonvested at December 31, 2018 988,837 $ 8.07 Granted 626,776 8.87 Vested ( 214,824 ) 8.49 Forfeited or unearned ( 427,010 ) 8.34 Nonvested at December 31, 2019 973,779 8.38 Granted 1,616,902 8.01 Vested ( 224,681 ) 8.33 Forfeited or unearned ( 1,466,729 ) 8.10 Nonvested at December 31, 2020 899,271 8.19 Granted 935,825 8.38 Vested ( 507,191 ) 8.85 Forfeited or unearned ( 151,514 ) 6.52 Nonvested at December 31, 2021 1,176,391 $ 8.25 |
Restricted Shares | A summary of the status of the Company's restricted shares of CRD-A as of December 31, 2021, 2020 and 2019 and changes during each year, is presented below: Shares Weighted-Average Nonvested at December 31, 2018 72,109 $ 7.76 Granted 149,496 9.38 Vested ( 108,610 ) 9.04 Forfeited or unearned ( 31,387 ) 9.55 Nonvested at December 31, 2019 81,608 8.35 Granted 117,279 8.34 Vested ( 119,327 ) 8.52 Forfeited or unearned — — Nonvested at December 31, 2020 79,560 8.08 Granted 94,654 9.03 Vested ( 138,635 ) 8.91 Forfeited or unearned ( 10,579 ) 8.99 Nonvested at December 31, 2021 25,000 $ 7.23 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's financial assets and liabilities that are measured at fair value on a recurring basis, excluding assets related to the Company's defined benefit pension plans, categorized using the fair value hierarchy: December 31, 2021 Quoted Significant Significant Total (In thousands) Assets: Money market funds (1) $ 10,028 $ — $ — $ 10,028 Liabilities: Contingent earnout liability (2) — — 12,556 12,556 December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (1) $ 10,026 $ — $ — $ 10,026 Liabilities: Contingent earnout liability (2) — — 6,151 6,151 (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 on the Company's Consolidated Balance Sheets in "Cash and cash equivalents." (2) The contingent earnout liability relates to businesses acquired in 2021 and 2020. See Note 3, "Business Acquisitions and Dispositions" for more information. The Level 3 fair value of the contingent earnout liability was estimated using internally-prepared revenue and EBITDA projections, and discount rates determined using a combination of observable and unobservable market data. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets, based upon the term of the contingent earnout agreement. |
Schedule of change in the fair value of the Company's contingent earnout consideration | The following table summarizes the change in the fair value of the Company's contingent earnout consideration balance: December 31, 2021 2020 (In thousands) Acquisition-related contingent consideration, beginning of the year $ 6,151 $ 454 Fair value of contingent consideration upon acquisition 9,482 5,808 Change in fair value of contingent consideration 650 ( 111 ) Settlement of contingent consideration ( 1,683 ) — Acquisition-related contingent consideration, end of the year $ 14,600 $ 6,151 |
Pension Plan Assets within Fair Value Hierarchy | The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.S Qualified Plan at December 31, 2021 and 2020: December 31, 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Asset Category: Cash and cash equivalents $ 20,706 $ — $ — $ 20,706 $ 2,861 $ — $ — $ 2,861 Short-term investment funds — 25,569 — 25,569 — 9,827 — 9,827 Common Collective Equity funds: U.S. — 40,191 — 40,191 — 66,145 — 66,145 International — 25,879 — 25,879 — 28,529 — 28,529 Common Collective Fixed Income Funds and Fixed Income Securities: U.S. 39,304 186,542 — 225,846 36,007 207,219 — 243,226 International — 29,300 — 29,300 — 28,501 — 28,501 Alternative strategy funds — 8,784 13,414 22,198 — 9,248 15,938 25,186 Total Plan Assets $ 60,010 $ 316,265 $ 13,414 389,689 $ 38,868 $ 349,469 $ 15,938 404,275 Other plan liabilities, net (a) ( 1,522 ) ( 7,336 ) Net Plan Assets $ 388,167 $ 396,939 (a) net amounts payable for unsettled security transactions. The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.K. plans at December 31, 2021 and 2020: December 31, 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Asset Category: Cash and cash equivalents $ 33,518 $ — $ — $ 33,511 $ 2,613 $ — $ — $ 2,613 Common Collective Equity funds: U.S. — — — — — 44,461 — 44,461 International — — — — — 7,510 — 7,510 Common Collective Fixed Income Funds and Fixed Income Securities: Short-term Investment funds: — 64,704 — 64,704 — 162,276 — 162,276 Government securities — 141,870 — 141,870 — 42,564 — 42,564 Alternative strategy funds 3,896 56,883 — 60,779 — 34,958 — 34,958 Real estate funds — — 11,255 11,255 — — 9,572 9,572 Total $ 37,414 $ 263,457 $ 11,255 $ 312,119 $ 2,613 $ 291,769 $ 9,572 $ 303,954 |
Reconciliation Of Level 3 Assets | The following table provides a reconciliation of the beginning and ending balance of Level 3 assets within the Company's U.S. and U.K. pension plans during the years ended December 31, 2021 and 2020: U.S U.K. (in thousands) Balance at December 31, 2019 $ 14,766 $ 9,735 Actual return on plan assets: Related to assets still held at the reporting date 1,172 ( 163 ) Balance at December 31, 2020 15,938 9,572 Actual return on plan assets: Related to assets still held at the reporting date 3,575 1,683 Purchases, sales and settlements, net ( 6,099 ) — Balance at December 31, 2021 $ 13,414 $ 11,255 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Financial information as of and for the years ended December 31, 2021, 2020, and 2019 related to the Company's reportable segments is presented below. Crawford Crawford Crawford Total (In thousands) 2021 Revenues before reimbursements $ 475,587 $ 397,964 $ 228,481 $ 1,102,032 Segment operating earnings 22,990 17,567 36,334 76,891 Depreciation and amortization (1) 2,884 7,966 3,793 14,643 Assets (2) 246,360 97,282 123,635 467,277 2020 Revenues before reimbursements $ 438,491 $ 371,392 $ 172,609 $ 982,492 Segment operating earnings 41,104 20,507 27,650 89,261 Depreciation and amortization (1) 2,405 9,451 2,647 14,503 Assets (2) 197,918 94,771 71,612 364,301 2019 Revenues before reimbursements $ 457,484 $ 397,626 $ 150,692 $ 1,005,802 Segment operating earnings 30,125 28,506 26,677 85,308 Depreciation and amortization (1) 3,405 10,267 2,576 16,248 Assets (2) 232,172 89,333 66,331 387,836 (1) Excludes amortization expense of finite-lived customer relationships and trade name intangible assets. (2) Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. Revenues by geographic region and major service line for the Crawford Loss Adjusting, Crawford TPA Solutions and Crawford Platform Solutions segme nts are shown in Note 2, "Revenue Recognition." |
Reconciliation Of Capital Expenditures From Segments To Consolidated [Table Text Block] | Capital expenditures for the years ended December 31, 2021, 2020, and 2019 are shown in the following table: Year Ended December 31, 2021 2020 2019 (In thousands) Crawford Loss Adjusting $ 3,598 $ 1,229 $ 1,625 Crawford TPA Solutions 8,765 6,982 4,331 Crawford Platform Solutions 3,681 12,099 2,746 Corporate 14,910 17,070 12,422 Total capital expenditures $ 30,954 $ 37,380 $ 21,124 |
Reconciliation of Revenues from Segments to Consolidated | The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2021, 2020, and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In thousands) Segments' revenues before reimbursements $ 1,102,032 $ 982,492 $ 1,005,802 Reimbursements 37,199 33,703 41,825 Total consolidated revenues $ 1,139,231 $ 1,016,195 $ 1,047,627 |
Reconciliation of Segment Operating Earnings from Segments to Consolidated | The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2021, 2020, and 2019 were as follows: Year Ended December 31, 2021 2020 2019 (In thousands) Operating earnings of all reportable segments $ 76,891 $ 89,261 $ 85,308 Unallocated corporate and shared costs and credits ( 14,386 ) ( 17,431 ) ( 7,699 ) Net corporate interest expense ( 6,559 ) ( 7,923 ) ( 10,774 ) Stock option expense ( 1,053 ) ( 1,122 ) ( 1,885 ) Amortization of acquisition-related intangible assets ( 11,029 ) ( 11,653 ) ( 11,277 ) Goodwill and intangible asset impairment charges — ( 17,674 ) ( 17,484 ) Arbitration and claim settlements — — ( 12,552 ) Restructuring and other costs, net — ( 8,133 ) — Gain on disposition of businesses, net — 13,763 — Income before income taxes $ 43,864 $ 39,088 $ 23,637 |
Reconciliation of Assets from Segment to Consolidated | The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at 2021 and 2020 are presented in the following table: December 31, 2021 2020 (In thousands) Assets of reportable segments $ 467,277 $ 364,301 Corporate assets: Cash and cash equivalents 53,228 44,656 Income taxes receivable 4,936 1,269 Prepaid expenses and other current assets 34,576 29,490 Net property and equipment 33,721 36,402 Operating lease right-of-use asset, net 99,369 109,315 Capitalized software costs, net 75,802 71,021 Deferred income tax assets 21,266 25,595 Other noncurrent assets 62,464 70,935 Total corporate assets 385,362 388,683 Total assets $ 852,639 $ 752,984 |
Schedule of Disclosure on Geographic Areas, Revenue and Long-Lived Assets in Individual Foreign Countries by Country | Revenues and long-lived assets for the U.S., U.K. and Canada are set out below as these countries are material for geographical area disclosure. For the purposes of these geographic area disclosures, long-lived assets consist of the net property and equipment, capitalized software costs, net and operating lease right-of-use, net line items on the Company's Consolidated Balance Sheets and excludes intangible assets and goodwill. U.S. U.K. Canada All Other Total (In thousands) 2021 Revenues before reimbursements $ 658,785 $ 134,663 $ 84,945 $ 223,639 $ 1,102,032 Long-lived assets 145,061 15,923 19,579 28,329 208,892 2020 Revenues before reimbursements 570,820 128,674 89,162 193,836 982,492 Long-lived assets 151,906 20,290 14,404 30,138 216,738 2019 Revenues before reimbursements 569,205 126,337 114,438 195,822 1,005,802 Long-lived assets 140,560 20,749 17,999 20,916 200,224 |
Restructuring and Other Costs,
Restructuring and Other Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table shows the costs incurred by type of restructuring activity: Year ended December 31 2021 2020 2019 (In thousands) Severance benefits $ — $ 9,350 $ — Asset impairments and lease termination costs — 2,538 — Gain on fair value remeasurement of cost and equity method investments — ( 1,099 ) — Liquidation dividend from a cost method investment — ( 1,247 ) — Gain on sale of internet protocol addresses — ( 1,409 ) — Total restructuring and other costs, net $ — $ 8,133 $ — |
Schedule of Restructuring Reserve Liabilities by Type | As of December 31, 2021, the following liabilities remained on the Company's Consolidated Balance Sheets related to restructuring charges recorded in 2020. The rollforwards of these costs to December 31, 2021 were as follows: Restructuring Charges Accrued compensation and related costs Other accrued liabilities Total Balance at December 31, 2019 342 472 814 Additions 9,112 648 9,760 Adjustments to accruals ( 453 ) ( 472 ) ( 925 ) Cash payments ( 5,632 ) ( 58 ) ( 5,690 ) Balance at December 31, 2020 3,369 590 3,959 Additions — — — Adjustments to accruals ( 561 ) 27 ( 534 ) Cash payments ( 2,520 ) ( 489 ) ( 3,009 ) Balance at December 31, 2021 $ 288 $ 128 $ 416 |
Significant Accounting and Re_4
Significant Accounting and Reporting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)ClassofstockContractor | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Variable Interest Entity [Line Items] | ||||
Number of countries in which entity operates (more than) | 70 | |||
Number of classes of common stock | Classofstock | 2 | |||
Deferred compensation plan liabilities | $ 7,060,000 | $ 7,961,000 | ||
Assets held in the related rabbi trust | 9,925,000 | 16,323,000 | ||
Increase in deferred tax liabilities | 13,000,000 | |||
Payments of deferred taxes | $ 6,500,000 | |||
Number of residential and commercial contractors | Contractor | 6,000 | |||
Goodwill impairment | $ 0 | 17,674,000 | $ 17,484,000 | |
Goodwill | 116,526,000 | 66,537,000 | 80,642,000 | |
Carrying value of property and equipment held for sale | 1,209,000 | |||
Depreciation | 12,481,000 | 11,750,000 | 11,363,000 | |
Self insurance reserve | 26,226,000 | 25,004,000 | ||
Self-insured risks | 13,222,000 | 11,390,000 | ||
Foreign currency transaction gain (loss) | (515,000) | (219,000) | (243,000) | |
Advertising expense | 877,000 | 990,000 | 2,394,000 | |
Capitalized software | ||||
Variable Interest Entity [Line Items] | ||||
Amortization of intangible assets | $ 16,667,000 | 16,709,000 | 17,873,000 | |
Measurement Input, Discount Rate | Minimum | ||||
Variable Interest Entity [Line Items] | ||||
Measurement input | 0.125 | |||
Measurement Input, Discount Rate | Maximum | ||||
Variable Interest Entity [Line Items] | ||||
Measurement input | 0.150 | |||
Terminal growth rate | ||||
Variable Interest Entity [Line Items] | ||||
Measurement input | 0.020 | |||
Loss Adjusting | ||||
Variable Interest Entity [Line Items] | ||||
Goodwill impairment | $ 17,674,000 | 17,674,000 | 17,484,000 | |
Goodwill | $ 0 | $ 34,300,000 | 18,497,000 | $ 35,438,000 |
Outside the US | ||||
Variable Interest Entity [Line Items] | ||||
Time deposits, at carrying value | 1,054,000 | 1,473,000 | ||
Canada Emergency Wage Subsidy Program of 2020 | ||||
Variable Interest Entity [Line Items] | ||||
Recognition of reduction in compensation expense | $ 5,850,000 | $ 13,830,000 | ||
Lloyd Warwick International | ||||
Variable Interest Entity [Line Items] | ||||
Variable interest entity, ownership percentage | 51.00% | |||
Class A Non-Voting | ||||
Variable Interest Entity [Line Items] | ||||
Approval rate to waive equal consideration rights | 75.00% |
Significant Accounting and Re_5
Significant Accounting and Reporting Policies - Schedule of reconciliation of cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash and cash equivalents | $ 53,228 | $ 44,656 | $ 51,802 |
Restricted cash within prepaid expenses and other current assets | 461 | 0 | 0 |
Restricted Cash And Cash Equivalents | $ 53,689 | $ 44,656 | $ 51,802 |
Significant Accounting and Re_6
Significant Accounting and Reporting Policies - Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Allowance for expected credit losses, January 1 | $ 9,464 | $ 9,348 | $ 9,625 |
Add/ (Deduct): | |||
Provision for bad debt expense | 448 | 1,504 | 1,588 |
Write-offs, net of recoveries | (958) | (908) | (81) |
Adjustments for business acquisitions and dispositions | (110) | (111) | |
Currency translation and other changes | (76) | (95) | (1,784) |
Allowance for expected credit losses, December 31 | $ 8,768 | 9,464 | $ 9,348 |
Fresh start adjustment | |||
Add/ (Deduct): | |||
Adoption of Topic 326 | $ (464) |
Significant Accounting and Re_7
Significant Accounting and Reporting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 113,578 | $ 125,784 |
Less accumulated depreciation | (79,857) | (89,382) |
Net property and equipment | 33,721 | 36,402 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 26,196 | 28,264 |
Furniture and Fixtures | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
Furniture and Fixtures | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 10 years | |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 55,058 | 64,781 |
Computer Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
Computer Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Automobiles | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 271 | 314 |
Automobiles | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
Automobiles | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 4 years | |
Building and Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 32,053 | 32,087 |
Building and Building Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 7 years | |
Building and Building Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 40 years | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | $ 338 |
Significant Accounting and Re_8
Significant Accounting and Reporting Policies - New Accounting Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect adjustment | $ 211,965 | $ 186,939 | |
Adoption of Topic 326 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | ||
Retained Earnings | Adoption of Topic 326 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect adjustment | $ 607,000 | ||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, days sales outstanding | 2 months | |
Billing after contract completion, years | 1 year | |
Revenue, remaining performance obligation | $ 89,553,000 | |
Amount of performance obligation Intend to recognize within next year | 70.00% | |
Revenue from contracts with customers, practical expedient, consideration adjustment period | 1 year | |
Accounts payable days payable outstanding | 1 year | |
Lifetime Claim | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred revenue | $ 38,000,000 | |
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 remaining performance obligation expected timing of satisfaction explanation | 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. | |
Revenue from contracts with customers, duration, average time to close case from time of referral | 5 years | |
Percentage of closed cases | 99.00% | |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,139,231 | $ 1,016,195 | $ 1,047,627 |
Crawford Loss Adjusting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 475,587 | 438,491 | |
Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 397,964 | 371,392 | |
Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 228,481 | 172,609 | |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 658,785 | 570,820 | 569,205 |
U.S. | Crawford Loss Adjusting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 158,451 | 128,342 | |
U.S. | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 301,035 | 293,448 | |
U.S. | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 199,299 | 149,030 | |
U.K. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 134,663 | 128,674 | 126,337 |
U.K. | Crawford Loss Adjusting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 102,326 | 105,446 | |
U.K. | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 22,693 | 16,530 | |
U.K. | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 9,644 | 6,698 | |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 84,945 | 89,162 | $ 114,438 |
Canada | Crawford Loss Adjusting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 54,675 | 55,552 | |
Canada | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 18,307 | 22,673 | |
Canada | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 11,963 | 10,937 | |
Australia | Crawford Loss Adjusting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 72,751 | 69,407 | |
Europe | Crawford Loss Adjusting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 52,488 | 48,732 | |
Rest of World | Crawford Loss Adjusting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 34,896 | 31,012 | |
Europe and Rest of World | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 55,929 | 38,741 | |
Europe and Rest of World | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 7,575 | 5,944 | |
Claims Management Services | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 248,271 | 221,888 | |
Claims Management Services | U.S. | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 151,342 | 143,944 | |
Claims Management Services | U.K. | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 22,693 | 16,530 | |
Claims Management Services | Canada | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 18,307 | 22,673 | |
Claims Management Services | Europe and Rest of World | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 55,929 | 38,741 | |
Medical Management Services | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 149,693 | 149,504 | |
Medical Management Services | U.S. | Crawford TPA Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 149,693 | 149,504 | |
Network Business | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 134,832 | 87,935 | |
Network Business | U.S. | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 124,727 | 78,025 | |
Network Business | U.K. | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 20 | 86 | |
Network Business | Canada | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,319 | 4,857 | |
Network Business | Europe and Rest of World | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5,766 | 4,967 | |
Contractor Connection | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 89,327 | 84,674 | |
Contractor Connection | U.S. | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 70,250 | 71,005 | |
Contractor Connection | U.K. | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 9,624 | 6,612 | |
Contractor Connection | Canada | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 7,644 | 6,080 | |
Contractor Connection | Europe and Rest of World | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,809 | 977 | |
Subrogation | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,322 | 0 | |
Subrogation | U.S. | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,322 | 0 | |
Subrogation | U.K. | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | |
Subrogation | Canada | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | |
Subrogation | Europe and Rest of World | Crawford Platform Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 0 | $ 0 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Customer Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Customer Contract Liabilities: | |
Beginning balance | $ 51,369 |
Annual additions | 78,028 |
Revenue recognized from prior periods | (30,108) |
Revenue recognized from current year additions | (40,897) |
Deferred revenue from acquisition | 659 |
Other adjustments | (3,146) |
Ending balance | $ 55,905 |
Business Acquisitions and Dis_3
Business Acquisitions and Dispositions - Additional Information (Details) - USD ($) | Oct. 01, 2021 | Aug. 23, 2021 | Nov. 01, 2020 | Oct. 01, 2020 | Jul. 21, 2020 | Jun. 12, 2020 | Jun. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||||||||
Loss on disposal of entity | $ 0 | $ (13,763,000) | $ 0 | |||||||
Business combinations, total consideration | 14,600,000 | 6,151,000 | $ 454,000 | |||||||
Noncontrolling interests | (568,000) | (11,000) | ||||||||
Crawford Carvallo | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Membership interest percentage | 85.00% | |||||||||
Percentage of held interest prior to acquisition | 15.00% | |||||||||
Initial lump-sum payment of purchase price | $ 11,583,000 | |||||||||
Revenues | 21,185,000 | |||||||||
Business combinations, total consideration | 5,808,000 | |||||||||
Business combination, deferred taxes | 2,237,000 | |||||||||
Pretax gain recognized | 1,099,000 | |||||||||
Noncontrolling interests | 489,000 | 3,047,000 | ||||||||
HBA Group | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Membership interest percentage | 100.00% | |||||||||
Initial lump-sum payment of purchase price | $ 4,026,000 | |||||||||
Revenues | 8,800,000 | |||||||||
Business combinations, total consideration | 2,409,000 | |||||||||
Edjuster Inc | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Membership interest percentage | 100.00% | |||||||||
earnout potential amount | $ 13,334,000 | |||||||||
Initial lump-sum payment of purchase price | 20,875,000 | |||||||||
Revenues | 5,000,000 | |||||||||
Business combinations, total consideration | 2,437,000 | |||||||||
Working capital adjustment payable | $ 433,000 | |||||||||
Praxis Consulting Inc | ||||||||||
Business Acquisition [Line Items] | ||||||||||
business combination deferred cash payment | $ 20,000,000 | |||||||||
Membership interest percentage | 100.00% | |||||||||
earnout potential amount | $ 10,000,000 | |||||||||
Initial lump-sum payment of purchase price | 21,544,000 | |||||||||
Revenues | 4,300,000 | |||||||||
Business combinations, total consideration | 4,068,000 | |||||||||
Working capital adjustment payable | 735,000 | |||||||||
Bosboon Expertise Group B V | ||||||||||
Business Acquisition [Line Items] | ||||||||||
earnout potential amount | 1,854,000 | |||||||||
Initial lump-sum payment of purchase price | 2,066,000 | |||||||||
Business combinations, total consideration | $ 568,000 | |||||||||
Maximum | Crawford Carvallo | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment to acquire business | $ 11,700,000 | |||||||||
Maximum | HBA Group | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment to acquire business | $ 3,200,000 | |||||||||
Crawford Compliance Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Variable interest entity, ownership percentage | 51.00% | |||||||||
Loss on disposal of entity | 912,000 | |||||||||
Lloyd Warwick International | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Variable interest entity, ownership percentage | 51.00% | |||||||||
Loss on disposal of entity | (14,700,000) | |||||||||
Consolidated variable interest entity investment | $ 19,600,000 | |||||||||
Repayment of debt | $ 3,600,000 | |||||||||
Working capital adjustments recognized under acquisition agreement | 700,000 | |||||||||
Purchase price | 20,300,000 | |||||||||
Gain on disposition, net of tax | 11,700,000 | |||||||||
WeGoLook, LC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment to acquire business | $ 310,000 | |||||||||
Accelerated amortization amount recognized | $ 1,100,000 | |||||||||
WeGoLook, LC | Global Technical Services | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Membership interest percentage | 15.00% | |||||||||
Crawford Carvallo | HBA Group | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combinations, total consideration | $ 2,044,000 |
Business Acquisitions and Dis_4
Business Acquisitions and Dispositions - Schedule of Valuation Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) | Oct. 01, 2021 | Aug. 23, 2021 | Nov. 01, 2020 | Oct. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||||
Total intangible assets | $ 43,749,000 | |||||
Liabilities: | ||||||
Noncontrolling interests | (568,000) | $ (11,000) | ||||
Customer Relationships | ||||||
ASSETS | ||||||
Total intangible assets | 32,422,000 | |||||
Developed technology | ||||||
ASSETS | ||||||
Total intangible assets | 5,473,000 | |||||
Non-compete agreements | ||||||
ASSETS | ||||||
Total intangible assets | 1,982,000 | |||||
Tradenames | ||||||
ASSETS | ||||||
Total intangible assets | $ 3,872,000 | |||||
Crawford Carvallo | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ 1,599,000 | |||||
Accounts receivable | 3,631,000 | |||||
Unbilled revenues | 3,237,000 | |||||
Right-of-use lease assets | 8,743,000 | |||||
Other assets | 4,660,000 | |||||
Total tangible assets | 21,870,000 | |||||
Total intangible assets | 15,056,000 | |||||
Total assets acquired | 36,926,000 | |||||
Liabilities: | ||||||
Current liabilities | 4,657,000 | |||||
Operating lease liability | 8,743,000 | |||||
Tax liabilities | 2,599,000 | |||||
Total liabilities assumed | 15,999,000 | |||||
Net Assets Acquired, Before Noncontrolling Interests | 20,927,000 | |||||
Noncontrolling interests | 489,000 | $ 3,047,000 | ||||
Net Assets Acquired, After Noncontrolling Interests | 20,438,000 | |||||
Purchase price (cash) | 11,583,000 | |||||
Fair value of noncontrolling interest previously held | 3,047,000 | |||||
Deferred purchase consideration payable | 0 | |||||
Fair value of contingent consideration | 5,808,000 | |||||
Fair value of total consideration transferred | 20,438,000 | |||||
Crawford Carvallo | Customer Relationships | ||||||
ASSETS | ||||||
Total intangible assets | 4,118,000 | |||||
Crawford Carvallo | Developed technology | ||||||
ASSETS | ||||||
Total intangible assets | 1,300,000 | |||||
Crawford Carvallo | Non-compete agreements | ||||||
ASSETS | ||||||
Total intangible assets | 1,600,000 | |||||
Crawford Carvallo | Tradenames | ||||||
ASSETS | ||||||
Total intangible assets | 300,000 | |||||
Crawford Carvallo | Goodwill | ||||||
ASSETS | ||||||
Total intangible assets | $ 7,738,000 | |||||
HBA Group | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ 240,000 | |||||
Accounts receivable | 1,081,000 | |||||
Unbilled revenues | 598,000 | |||||
Right-of-use lease assets | 1,502,000 | |||||
Other assets | 205,000 | |||||
Total tangible assets | 3,626,000 | |||||
Total intangible assets | 7,819,000 | |||||
Total assets acquired | 11,445,000 | |||||
Liabilities: | ||||||
Current liabilities | 2,532,000 | |||||
Operating lease liability | 1,502,000 | |||||
Tax liabilities | 976,000 | |||||
Total liabilities assumed | 5,010,000 | |||||
Net Assets Acquired, Before Noncontrolling Interests | 6,435,000 | |||||
Net Assets Acquired, After Noncontrolling Interests | 6,435,000 | |||||
Purchase price (cash) | 4,026,000 | |||||
Fair value of noncontrolling interest previously held | 0 | |||||
Deferred purchase consideration payable | 0 | |||||
Fair value of contingent consideration | 2,409,000 | |||||
Fair value of total consideration transferred | 6,435,000 | |||||
HBA Group | Customer Relationships | ||||||
ASSETS | ||||||
Total intangible assets | 1,574,000 | |||||
HBA Group | Developed technology | ||||||
ASSETS | ||||||
Total intangible assets | 0 | |||||
HBA Group | Non-compete agreements | ||||||
ASSETS | ||||||
Total intangible assets | 0 | |||||
HBA Group | Tradenames | ||||||
ASSETS | ||||||
Total intangible assets | 0 | |||||
HBA Group | Goodwill | ||||||
ASSETS | ||||||
Total intangible assets | $ 6,245,000 | |||||
Edjuster Inc | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ 1,723,000 | |||||
Accounts receivable | 1,518,000 | |||||
Unbilled revenues | 1,531,000 | |||||
Right-of-use lease assets | 418,000 | |||||
Other assets | 1,520,000 | |||||
Total tangible assets | 6,710,000 | |||||
Total intangible assets | 22,076,000 | |||||
Total assets acquired | 28,786,000 | |||||
Liabilities: | ||||||
Current liabilities | 2,066,000 | |||||
Operating lease liability | 418,000 | |||||
Tax liabilities | 2,557,000 | |||||
Total liabilities assumed | 5,041,000 | |||||
Net Assets Acquired, Before Noncontrolling Interests | 23,745,000 | |||||
Net Assets Acquired, After Noncontrolling Interests | 23,745,000 | |||||
Purchase price (cash) | 20,875,000 | |||||
Fair value of noncontrolling interest previously held | 0 | |||||
Deferred purchase consideration payable | 433,000 | |||||
Fair value of contingent consideration | 2,437,000 | |||||
Fair value of total consideration transferred | 23,745,000 | |||||
Edjuster Inc | Customer Relationships | ||||||
ASSETS | ||||||
Total intangible assets | 5,346,000 | |||||
Edjuster Inc | Developed technology | ||||||
ASSETS | ||||||
Total intangible assets | 2,673,000 | |||||
Edjuster Inc | Non-compete agreements | ||||||
ASSETS | ||||||
Total intangible assets | 157,000 | |||||
Edjuster Inc | Tradenames | ||||||
ASSETS | ||||||
Total intangible assets | 1,101,000 | |||||
Edjuster Inc | Goodwill | ||||||
ASSETS | ||||||
Total intangible assets | $ 12,799,000 | |||||
Praxis Consulting Inc | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ 0 | |||||
Accounts receivable | 119,000 | |||||
Unbilled revenues | 0 | |||||
Right-of-use lease assets | 430,000 | |||||
Other assets | 316,000 | |||||
Total tangible assets | 865,000 | |||||
Total intangible assets | 50,045,000 | |||||
Total assets acquired | 50,910,000 | |||||
Liabilities: | ||||||
Current liabilities | 4,133,000 | |||||
Operating lease liability | 430,000 | |||||
Tax liabilities | 0 | |||||
Total liabilities assumed | 4,563,000 | |||||
Net Assets Acquired, Before Noncontrolling Interests | 46,347,000 | |||||
Net Assets Acquired, After Noncontrolling Interests | 46,347,000 | |||||
Purchase price (cash) | 21,544,000 | |||||
Fair value of noncontrolling interest previously held | 0 | |||||
Deferred purchase consideration payable | 20,735,000 | |||||
Fair value of contingent consideration | 4,068,000 | |||||
Fair value of total consideration transferred | 46,347,000 | |||||
Praxis Consulting Inc | Customer Relationships | ||||||
ASSETS | ||||||
Total intangible assets | 20,000,000 | |||||
Praxis Consulting Inc | Developed technology | ||||||
ASSETS | ||||||
Total intangible assets | 1,500,000 | |||||
Praxis Consulting Inc | Non-compete agreements | ||||||
ASSETS | ||||||
Total intangible assets | 225,000 | |||||
Praxis Consulting Inc | Tradenames | ||||||
ASSETS | ||||||
Total intangible assets | 2,125,000 | |||||
Praxis Consulting Inc | Goodwill | ||||||
ASSETS | ||||||
Total intangible assets | 26,195,000 | |||||
Bosboon Expertise Group B V | ||||||
ASSETS | ||||||
Cash and cash equivalents | 0 | |||||
Accounts receivable | 469,000 | |||||
Unbilled revenues | 597,000 | |||||
Right-of-use lease assets | 586,000 | |||||
Other assets | 75,000 | |||||
Total tangible assets | 1,727,000 | |||||
Total intangible assets | 3,301,000 | |||||
Total assets acquired | 5,028,000 | |||||
Liabilities: | ||||||
Current liabilities | 1,430,000 | |||||
Operating lease liability | 586,000 | |||||
Tax liabilities | 378,000 | |||||
Total liabilities assumed | 2,394,000 | |||||
Net Assets Acquired, Before Noncontrolling Interests | 2,634,000 | |||||
Net Assets Acquired, After Noncontrolling Interests | 2,634,000 | |||||
Purchase price (cash) | 2,066,000 | |||||
Fair value of noncontrolling interest previously held | 0 | |||||
Deferred purchase consideration payable | 0 | |||||
Fair value of contingent consideration | 568,000 | |||||
Fair value of total consideration transferred | 2,634,000 | |||||
Bosboon Expertise Group B V | Customer Relationships | ||||||
ASSETS | ||||||
Total intangible assets | 1,384,000 | |||||
Bosboon Expertise Group B V | Developed technology | ||||||
ASSETS | ||||||
Total intangible assets | 0 | |||||
Bosboon Expertise Group B V | Non-compete agreements | ||||||
ASSETS | ||||||
Total intangible assets | 0 | |||||
Bosboon Expertise Group B V | Tradenames | ||||||
ASSETS | ||||||
Total intangible assets | 346,000 | |||||
Bosboon Expertise Group B V | Goodwill | ||||||
ASSETS | ||||||
Total intangible assets | $ 1,571,000 |
Business Acquisitions and Dis_5
Business Acquisitions and Dispositions - Schedule of preliminary fair values assigned to identifiable intangible assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 43,749 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 32,422 |
Weighted-Average Amortization Period (Years) | 15 years |
Developed Technology Rights [Member] | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 5,473 |
Weighted-Average Amortization Period (Years) | 10 years |
Noncompete Agreements [Member] | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 1,982 |
Weighted-Average Amortization Period (Years) | 8 years |
Trade Names [Member] | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 3,872 |
Weighted-Average Amortization Period (Years) | 7 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||||
Goodwill | $ 352,698,000 | $ 302,709,000 | $ 299,140,000 | |
Accumulated impairment losses | (236,172,000) | (236,172,000) | (218,498,000) | |
Net goodwill | 116,526,000 | 66,537,000 | 80,642,000 | |
Goodwill of acquired businesses | 46,810,000 | 5,501,000 | ||
Impairment of goodwill | 0 | (17,674,000) | (17,484,000) | |
Goodwill of disposed business | (1,990,000) | |||
Foreign currency effects | 942,000 | 58,000 | ||
Adjustments to prior acquisitions | 2,237,000 | |||
Loss Adjusting | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 102,561,000 | 86,758,000 | 86,025,000 | |
Accumulated impairment losses | (68,261,000) | (68,261,000) | (50,587,000) | |
Net goodwill | $ 0 | 34,300,000 | 18,497,000 | 35,438,000 |
Goodwill of acquired businesses | 14,371,000 | 2,644,000 | ||
Impairment of goodwill | $ (17,674,000) | (17,674,000) | (17,484,000) | |
Goodwill of disposed business | (1,990,000) | |||
Foreign currency effects | 358,000 | 79,000 | ||
Adjustments to prior acquisitions | 1,074,000 | |||
TPA | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 179,462,000 | 171,603,000 | 168,734,000 | |
Accumulated impairment losses | (159,424,000) | (159,424,000) | (159,424,000) | |
Net goodwill | 20,038,000 | 12,179,000 | 9,310,000 | |
Goodwill of acquired businesses | 6,244,000 | 2,857,000 | ||
Impairment of goodwill | 0 | |||
Goodwill of disposed business | 0 | |||
Foreign currency effects | 452,000 | 12,000 | ||
Adjustments to prior acquisitions | 1,163,000 | |||
Platform Solutions | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 70,675,000 | 44,348,000 | 44,381,000 | |
Accumulated impairment losses | (8,487,000) | (8,487,000) | (8,487,000) | |
Net goodwill | 62,188,000 | 35,861,000 | $ 35,894,000 | |
Goodwill of acquired businesses | 26,195,000 | 0 | ||
Impairment of goodwill | 0 | |||
Goodwill of disposed business | 0 | |||
Foreign currency effects | 132,000 | $ (33,000) | ||
Adjustments to prior acquisitions | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||
Goodwill and intangible asset impairment charges | $ 0 | $ 17,674,000 | $ 17,484,000 | |
Minimum | ||||
Goodwill [Line Items] | ||||
Finite-lived intangible asset, useful life | 2 years | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Finite-lived intangible asset, useful life | 20 years | |||
Customer relationships and trade names | ||||
Goodwill [Line Items] | ||||
Amortization of intangible assets | $ 11,029,000 | 11,653,000 | 11,277,000 | |
Crawford Claims Solutions | ||||
Goodwill [Line Items] | ||||
Goodwill and intangible asset impairment charges | $ 17,674,000 | $ 17,674,000 | $ 17,484,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Acquired Finite-Lived Intangible Asset by Major Class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 197,283 | $ 159,048 |
Finite-Lived Intangible Assets, Accumulated Amortization | (130,663) | (118,719) |
Net Carrying Value | $ 66,619 | $ 40,329 |
Weighted-average amortization period | 8 years 2 months 12 days | 6 years 8 months 12 days |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2022 | $ 8,224 | |
2023 | 7,874 | |
2024 | 7,715 | |
2025 | 7,438 | |
2026 | 7,146 | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 160,652 | $ 131,948 |
Finite-Lived Intangible Assets, Accumulated Amortization | (111,241) | (101,319) |
Net Carrying Value | $ 49,411 | $ 30,629 |
Weighted-average amortization period | 9 years 3 months 18 days | 3 years 3 months 18 days |
Technology-based | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 22,293 | $ 18,183 |
Finite-Lived Intangible Assets, Accumulated Amortization | (11,547) | (10,174) |
Net Carrying Value | $ 10,746 | $ 8,009 |
Weighted-average amortization period | 6 years 4 months 24 days | 6 years 6 months |
Tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,393 | $ 3,123 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,169) | (1,737) |
Net Carrying Value | $ 4,224 | $ 1,386 |
Weighted-average amortization period | 7 years | 6 years |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,944 | $ 5,794 |
Finite-Lived Intangible Assets, Accumulated Amortization | (5,706) | (5,489) |
Net Carrying Value | $ 2,238 | $ 305 |
Weighted-average amortization period | 4 years 7 months 6 days | 10 years 1 month 6 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Acquired Indefinite-Lived Intangible Assets (Details) - Tradenames - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 32,608 | $ 32,503 |
Accumulated Impairments | (1,656) | (1,656) |
Net Carrying Value | $ 30,952 | $ 30,847 |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt, Including Finance Leases - Long-term debt instruments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Finance lease and other obligations | $ 425,000 | $ 740,000 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current | Liabilities, Current |
Total long-term debt and finance leases | $ 175,019,000 | $ 113,595,000 |
Less: portion of Credit Facility classified as short term | (10,704,000) | (1,837,000) |
Less: current installments of finance leases and other obligations | (88,000) | (267,000) |
Total long-term debt and finance leases, less current installments | 164,315,000 | 111,758,000 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit Facility | 174,594,000 | 112,855,000 |
Less: portion of Credit Facility classified as short term | $ (10,616,000) | $ (1,570,000) |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt, Including Finance Leases - Credit Facility (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Line of credit facility, collateral, capital stock, percent | 100.00% | ||
Debt instrument, maximum senior secured leverage ratio | 4.50 | ||
Short Term Borrowings | $ 10,704,000 | $ 1,837,000 | |
Interest expense, debt | 6,983,000 | 8,187,000 | $ 11,519,000 |
Interest paid | 5,631,000 | 7,152,000 | $ 10,470,000 |
Australian Borrower | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 75,000,000 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Lessee leasing arrangements, finance leases, term of contract | 24 months | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Lessee leasing arrangements, finance leases, term of contract | 60 months | ||
Letter of credit subcommitment | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 125,000,000 | ||
Line of credit facility, remaining borrowing capacity | 11,277,000 | ||
Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 450,000,000 | ||
Debt instrument, basis spread on variable rate (percent) | 0.50% | ||
Credit Facility | $ 174,594,000 | 112,855,000 | |
Line of credit facility, remaining borrowing capacity | 260,242,000 | ||
Short Term Borrowings | 10,616,000 | $ 1,570,000 | |
Credit Facility | UK Borrower | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowing capacity | 250,000,000 | ||
Credit Facility | Canadian Borrower | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 125,000,000 | ||
Credit Facility | Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (percent) | 0.625% | ||
Credit Facility | Maximum | Eurocurrency Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (percent) | 1.625% | ||
Credit Facility | Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (percent) | 0.00% | ||
Credit Facility | Minimum | Eurocurrency Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate (percent) | 1.00% |
Short-Term and Long-Term Debt_5
Short-Term and Long-Term Debt, Including Finance Leases - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Long-term Debt, 2022 | $ 10,616 | |
Long-term Debt, 2023 | 0 | |
Long-term Debt, 2024 | 0 | |
Long-term Debt, 2025 | 0 | |
Long-term Debt, 2026 | 163,978 | |
Long-term Debt | 174,594 | |
Finance Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Finance Lease Obligations, 2022 | 88 | |
Finance Lease Obligations, 2023 | 264 | |
Finance Lease Obligations, 2024 | 48 | |
Finance Lease Obligations, 2025 | 25 | |
Finance Lease Obligations, 2026 | 0 | |
Finance Leases, Future Minimum Payments Due | 425 | |
Long-term Debt and Capital Lease Obligations, Fiscal Year Maturity [Abstract] | ||
Total, 2022 | 10,704 | |
Total, 2023 | 264 | |
Total, 2024 | 48 | |
Total, 2025 | 25 | |
Total, 2026 | 163,978 | |
Total long-term debt and finance leases | $ 175,019 | $ 113,595 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 6 years |
Termination period | 1 year |
Leases, not yet commenced | $ 2,268,000 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Lease term, not yet commenced | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 11 years |
Lease Commitments - Lease-Relat
Lease Commitments - Lease-Related Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets, net | $ 99,369 | $ 109,315 |
Current operating lease liabilities | 25,238 | 32,745 |
Noncurrent operating lease liabilities | 88,408 | 93,228 |
Total operating lease liabilities | $ 113,646 | $ 125,973 |
Weighted-Average Remaining Lease Term | 6 years 1 month 28 days | 6 years 3 months 18 days |
Weighted-Average Discount Rate | 5.10% | 5.30% |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 38,492 | $ 38,242 |
Variable lease cost | 5,177 | 8,037 |
Sublease income | $ 3,875 | $ 4,090 |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 40,251 | $ 37,091 |
Right-of-use assets obtained in exchange for lease obligations | 22,168 | 40,535 |
Operating lease right-of-use assets, net | $ 99,369 | $ 109,315 |
Lease Commitments - Operating L
Lease Commitments - Operating Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 29,944 | |
2023 | 22,745 | |
2024 | 18,043 | |
2025 | 14,278 | |
2026 | 12,859 | |
Thereafter | 35,427 | |
Total undiscounted lease payments | 133,296 | |
Less imputed interest | (19,650) | |
Present value of future lease payments | $ 113,646 | $ 125,973 |
Income Taxes - Income (loss) be
Income Taxes - Income (loss) before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 39,569 | $ (1,029) | $ (1,472) |
Foreign | 4,295 | 40,117 | 25,109 |
Income before income taxes | $ 43,864 | $ 39,088 | $ 23,637 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
U.S. federal and state | $ 11,070 | $ 12,561 | $ 1,546 |
Foreign | 5,238 | 8,457 | 9,525 |
Deferred: | |||
U.S. federal and state | (126) | (8,870) | 1,643 |
Foreign | (2,866) | (135) | 1,397 |
Provision for income taxes | $ 13,316 | $ 12,013 | $ 14,111 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Net cash payments for income taxes | $ 24,936,000 | $ 12,216,000 | $ 16,996,000 |
Provision for income taxes | 21.00% | 21.00% | 21.00% |
Estimated tax over book differences | $ 90,269,000 | ||
Loss carryforwards | 28,352,000 | ||
Unrecognized tax benefits, loss carryforwards | 244,000 | ||
Operating loss carryforwards, not subject to expiration | 22,288,000 | ||
Operating loss carryforwards, subject to expiration | $ 6,064,000 | ||
Operating loss carryforwards, expiration period | 20 years | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 119,000 | $ 107,000 | $ 256,000 |
Unrecognized tax benefits that would impact effective tax rate | $ 669,000 | $ 713,000 | $ 1,940,000 |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to federal statutory rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal income taxes at statutory rate | $ 9,211 | $ 8,208 | $ 4,964 |
State income taxes, net of federal benefit | 2,310 | 325 | 505 |
Goodwill impairment | 0 | 2,322 | 1,883 |
Foreign taxes | 2,896 | 3,328 | (2,276) |
Change in valuation allowance | (1,185) | (374) | 3,919 |
Research and development credits | (436) | (1,001) | (626) |
Foreign tax credits | (1,083) | (1,150) | (283) |
Nondeductible meals and entertainment | 254 | 377 | 724 |
Change in permanent reinvestment assertion | 627 | 776 | 0 |
Disposals and liquidations of businesses | 0 | (935) | 0 |
Global intangible low-tax income, net of credits | 531 | (54) | 892 |
Foreign-derived intangible income deduction | (94) | (115) | (315) |
Tax rate changes | (431) | (359) | (486) |
Other | 716 | 665 | (314) |
Provision for income taxes | $ 13,316 | $ 12,013 | $ 14,111 |
Income Taxes - Deferred income
Income Taxes - Deferred income taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||||
Accounts receivable allowance | $ 1,386 | $ 1,019 | ||
Accrued compensation | 16,182 | 14,655 | ||
Accrued pension liabilities | 0 | 4,950 | ||
Self-insured risks | 5,280 | 5,746 | ||
Deferred revenues | 5,045 | 5,376 | ||
Interest | 2,907 | 2,419 | ||
Tax credit carryforwards | 3,326 | 7,090 | ||
Loss carryforwards | 28,122 | 22,805 | ||
Lease liability | 28,547 | 31,435 | ||
Other | 2,218 | 2,158 | ||
Gross deferred income tax assets | 93,013 | 97,653 | ||
Unbilled revenues | 6,290 | 5,311 | ||
Accrued pension liabilities | 2,491 | 0 | ||
Repatriated earnings | 937 | 776 | ||
Depreciation and amortization | 27,593 | 23,474 | ||
Lease right-of-use asset | 24,958 | 27,513 | ||
Gross deferred income tax liabilities | 62,269 | 57,074 | ||
Net deferred income tax assets before valuation allowance | 30,744 | 40,579 | ||
Valuation allowance | (14,114) | (16,579) | $ (28,128) | $ (25,654) |
Net deferred income tax assets | 16,630 | 24,000 | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Deferred income tax assets | 21,266 | 25,595 | ||
Long-term deferred income tax liabilities included in "Other noncurrent liabilities" | (4,636) | (1,595) | ||
Net deferred income tax assets | $ 16,630 | $ 24,000 |
Income Taxes - Deferred tax val
Income Taxes - Deferred tax valuation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance, Deferred Tax Asset [Roll Forward] | |||
Balance, beginning of year | $ 16,579 | $ 28,128 | $ 25,654 |
Other changes | 2,465 | 11,549 | 2,264 |
Balance, end of year | $ 14,114 | $ 16,579 | $ 28,128 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Unrecognized income tax benefits [Rollforward] | |||
Beginning of year | $ 3,778 | $ 5,287 | $ 7,401 |
Additions for tax provisions related to the current year | 92 | 515 | |
Reductions for tax positions related to the current year | 113 | ||
Additions for tax positions related to prior years | 2 | 646 | |
Reductions for tax positions related to prior years | (11) | (505) | |
Currency translation adjustment | (4) | ||
Reductions for settlements | (21) | (516) | (2,642) |
Lapses of applicable statutes of limitation | (582) | (520) | |
Ending of year | $ 3,750 | $ 3,778 | $ 5,287 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, cost recognized | $ 25,595,000 | $ 23,641,000 | $ 25,226,000 | ||
Defined benefit plan, voluntary contribution | $ 9,892,000 | 10,446,000 | |||
Corridor amount | 10.00% | ||||
Net unrecognized actuarial losses expected to be recognized in 2022 | $ 10,056,000 | ||||
Net unrecognized actuarial losses expected to be recognized in 2022, net of tax | 7,476,000 | ||||
Net periodic benefit cost (income), non-service cost | (3,472,000) | (569,000) | $ 3,559,000 | ||
U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, voluntary contribution | 9,000,000 | $ 9,000,000 | $ 10,000,000 | ||
Increase (decrease) in projected benefit obligation | $ (1,176,000) | ||||
Discount rate used to compute periodic benefit cost | 2.18% | ||||
Expected long-term rates of return on plans' assets in next fiscal year | 4.80% | ||||
U.K Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate used to compute periodic benefit cost | 1.68% | ||||
Expected long-term rates of return on plans' assets in next fiscal year | 2.40% |
Retirement Plans - Projected Be
Retirement Plans - Projected Benefit Obligations and Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligations | $ 448,487 | $ 494,273 |
Fair value of plans' assets | 427,670 | 437,234 |
U.K Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligations | 281,828 | 267,200 |
Fair value of plans' assets | $ 312,119 | $ 303,957 |
Retirement Plans - Reconciliati
Retirement Plans - Reconciliation of Projected Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Projected Benefit Obligations: | ||
Beginning of measurement period | $ 761,473 | $ 748,258 |
Service cost | 1,208 | 1,295 |
Interest cost | 11,321 | 16,643 |
Employee contributions | 36 | 35 |
Actuarial (gain) loss | (10,034) | 49,938 |
Plan settlements | (249) | (1,450) |
Plan amendments | (1,663) | 0 |
Benefits paid | (48,465) | (55,150) |
Foreign currency effects | 16,688 | 1,904 |
End of measurement period | 730,315 | 761,473 |
Fair Value of Plans' Assets: | ||
Beginning of measurement period | 741,191 | 714,017 |
Actual return on plans' assets | 18,490 | 71,446 |
Defined benefit plan, voluntary contribution | 9,892 | 10,446 |
Employee contributions | 36 | 35 |
Plan settlements | (249) | (1,450) |
Benefits paid | (48,465) | (55,150) |
Foreign currency effects | 18,894 | 1,847 |
End of measurement period | 739,789 | 741,191 |
Overfunded/(Unfunded) Status | $ 9,474 | $ (20,282) |
Retirement Plans - Fund Status
Retirement Plans - Fund Status (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total (overfunded)/underfunded status | $ 9,474 | $ (20,282) |
Accumulated other comprehensive loss, before income taxes | (251,629) | (264,244) |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
U.S. Qualified Plan | 17,891 | 53,886 |
U.K. prepaid pension asset included in "Other noncurrent assets" | (30,291) | (36,757) |
US | Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
U.S. Qualified Plan | 15,181 | 51,645 |
U.K Plan | Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
U.S. Qualified Plan | 2,710 | 2,241 |
Defined Benefit Plan, Unfunded Plan | Nonqualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
U.S. Qualified Plan | 293 | 316 |
Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities" | 2,633 | 2,837 |
Total (overfunded)/underfunded status | $ (9,474) | $ 20,282 |
Retirement Plans - AOCI (Detail
Retirement Plans - AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2018 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net unrecognized actuarial (loss) gain at beginning of period | $ (268,427) | |
Amortization of net loss (gain) | $ 10,455 | 10,804 |
Net gain arising during the year | 4,939 | (6,510) |
Currency translation | (2,779) | (111) |
Net unrecognized actuarial (loss) gain at end of period | (251,629) | (264,244) |
Post-Retirement Medical Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net unrecognized actuarial (loss) gain at beginning of period | 0 | 152 |
Amortization of net loss (gain) | $ 0 | $ (152) |
Retirement Plans - Net Periodic
Retirement Plans - Net Periodic Benefit Costs and Benefit Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 1,208 | $ 1,295 | |
Interest cost | 11,321 | 16,643 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2022 | 40,980 | ||
2023 | 40,973 | ||
2024 | 40,855 | ||
2025 | 40,792 | ||
2026 | 40,610 | ||
2027-2031 | 197,809 | ||
Defined Benefit Pension Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 1,208 | 1,295 | $ 1,278 |
Interest cost | 11,321 | 16,643 | 22,376 |
Expected return on assets | (25,248) | (28,016) | (29,654) |
Amortization of actuarial loss | 10,455 | 10,804 | 10,837 |
Net periodic benefit cost (credit) | $ (2,264) | $ 726 | $ 4,837 |
Retirement Plans - Assumptions
Retirement Plans - Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate used to compute benefit obligations | 2.76% | 2.38% |
Discount rate used to compute periodic benefit cost | 2.38% | 3.15% |
Expected long-term rates of return on plans' assets | 4.70% | 4.70% |
U.K Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate used to compute benefit obligations | 1.82% | 1.60% |
Discount rate used to compute periodic benefit cost | 1.60% | 1.93% |
Expected long-term rates of return on plans' assets | 2.10% | 2.54% |
Retirement Plans - Plan Asset A
Retirement Plans - Plan Asset Allocation (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 100.00% | 100.00% |
U.S. | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 16.90% | 23.40% |
U.S. | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 65.50% | 67.20% |
U.S. | Alternative strategies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 5.70% | 6.20% |
U.S. | Cash, cash equivalents and short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 11.90% | 3.20% |
U.K Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 0.00% | 17.90% |
U.K Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 66.20% | 68.30% |
U.K Plan | Alternative strategies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 23.10% | 13.00% |
U.K Plan | Cash, cash equivalents and short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 10.70% | 0.80% |
Common Stock and Earnings per_3
Common Stock and Earnings per Share - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2021Classofstock$ / sharesshares | Feb. 10, 2022shares | Nov. 04, 2021shares | May 09, 2019shares | |
Equity, Class of Treasury Stock | ||||
Number of classes of common stock | Classofstock | 2 | |||
Number of shares authorized to be repurchased (shares) | 5,000,000 | |||
Average cost (USD per share) | $ / shares | $ 8.68 | |||
Class A Non-Voting | ||||
Equity, Class of Treasury Stock | ||||
Approval rate to waive equal consideration rights | 75.00% | |||
Shares repurchased (shares) | 530,598 | |||
Average cost (USD per share) | $ / shares | $ 9.63 | |||
Class A Non-Voting | Repurchase Authorization 2021 | ||||
Equity, Class of Treasury Stock | ||||
Shares repurchased (shares) | 0 | |||
Average cost (USD per share) | $ / shares | $ 8.23 | |||
Common Stock | Repurchase Authorization 2019 | ||||
Equity, Class of Treasury Stock | ||||
Number of shares authorized to be repurchased (shares) | 2,000,000 | |||
Number of shares remaining to be repurchased (shares) | 0 | |||
Common Stock | Repurchase Authorization 2021 | ||||
Equity, Class of Treasury Stock | ||||
Number of shares authorized to be repurchased (shares) | 2,000,000 | |||
Number of shares remaining to be repurchased (shares) | 413,317 | |||
Class B Voting | ||||
Equity, Class of Treasury Stock | ||||
Shares repurchased (shares) | 111,499 | |||
Class B Voting | Repurchase Authorization 2021 | ||||
Equity, Class of Treasury Stock | ||||
Shares repurchased (shares) | 1,586,683 |
Common Stock and Earnings per_4
Common Stock and Earnings per Share - Schedule of Computations of Basic Net Income Attributable to Shareholders of Crawford & Company per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class A Non-Voting | |||
Numerator: | |||
Allocation of undistributed earnings (loss) | $ 10,464 | $ (10,743) | $ (392) |
Dividends paid | 7,376 | 5,815 | 8,592 |
Net income available to common shareholders, basic | $ 17,840 | $ 16,558 | $ 8,200 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||
Weighted-average common shares outstanding, basic | 30,760 | 30,605 | 30,637 |
Earnings per share - basic | $ 0.58 | $ 0.54 | $ 0.27 |
Class B Voting | |||
Numerator: | |||
Allocation of undistributed earnings (loss) | $ 7,565 | $ (7,908) | $ (294) |
Dividends paid | 5,287 | 3,830 | 4,579 |
Net income available to common shareholders, basic | $ 12,852 | $ 11,738 | $ 4,285 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||
Weighted-average common shares outstanding, basic | 22,237 | 22,527 | 22,975 |
Earnings per share - basic | $ 0.58 | $ 0.52 | $ 0.19 |
Common Stock and Earnings per_5
Common Stock and Earnings per Share - Schedule of Computations of Diluted Net Income Attributable to Shareholders of Crawford & Company per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class A Non-Voting | |||
Numerator: | |||
Allocation of undistributed earnings (loss) | $ 10,602 | $ 10,781 | $ (394) |
Dividends paid | 7,376 | 5,815 | 8,592 |
Net income available to common shareholders, diluted | $ 17,978 | $ 16,596 | $ 8,198 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||
Weighted-average common shares outstanding, basic | 30,760,000 | 30,605,000 | 30,637,000 |
Weighted-average effect of dilutive securities (1) | 983 | 252,000 | 453,000 |
Weighted-average number of shares outstanding, diluted | 31,743,000 | 30,857,000 | 31,090,000 |
Earnings per share - diluted | $ 0.57 | $ 0.54 | $ 0.26 |
Class B Voting | |||
Numerator: | |||
Allocation of undistributed earnings (loss) | $ 7,427 | $ 7,870 | $ (292) |
Dividends paid | 5,287 | 3,830 | 4,579 |
Net income available to common shareholders, diluted | $ 12,714 | $ 11,700 | $ 4,287 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||
Weighted-average common shares outstanding, basic | 22,237,000 | 22,527,000 | 22,975,000 |
Weighted-average effect of dilutive securities (1) | 0 | 0 | 0 |
Weighted-average number of shares outstanding, diluted | 22,237,000 | 22,527,000 | 22,975,000 |
Earnings per share - diluted | $ 0.57 | $ 0.52 | $ 0.19 |
Common Stock and Earnings per_6
Common Stock and Earnings per Share - Schedule of Antidilutive Shares Excluded from Computation of Diluted Earnings per Share (Details) - shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Shares Underlying Stock Options Excluded | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share (shares) | 838,000 | 1,996,000 | 622,000 | |
Performance Stock Grants Excluded because Performance Conditions Have Not Been Met | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from diluted earnings per share (shares) | [1] | 335,000 | 578,000 | 717,000 |
[1] | Compensation cost is recognized for these performance stock grants based on expected achievement rates; however no consideration is given for these performance stock grants when calculating earnings per share until the performance measurements are actually achieved. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Adjustment for long-term intercompany transactions, net of tax | $ 383,000 | $ (5,165,000) | $ (928,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ 186,928 | $ 162,567 | $ 175,446 | |
Unrealized net gains (losses) arising during the year | 1,618 | (4,966) | 1,036 | |
Ending balance | 211,397 | 186,928 | 162,567 | |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (30,792) | (35,850) | ||
Other comprehensive income before reclassifications | 9,032 | 4,595 | ||
Unrealized net gains (losses) arising during the year | 0 | |||
Amounts reclassified from accumulated other comprehensive income | [1] | 0 | 0 | |
Net current period other comprehensive income | 9,032 | 4,595 | ||
Acquisition/Disposition of noncontrolling interest | 463 | |||
Ending balance | (21,760) | (30,792) | (35,850) | |
Retirement Liabilities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (168,064) | (171,057) | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Unrealized net gains (losses) arising during the year | 1,618 | (4,966) | ||
Amounts reclassified from accumulated other comprehensive income | [1] | 7,765 | 7,959 | |
Net current period other comprehensive income | 9,383 | 2,993 | ||
Acquisition/Disposition of noncontrolling interest | 0 | |||
Ending balance | (158,681) | (168,064) | (171,057) | |
AOCL Attributable to Shareholders of Crawford & Company | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (198,856) | (206,907) | (216,447) | |
Other comprehensive income before reclassifications | 9,032 | 4,595 | ||
Unrealized net gains (losses) arising during the year | 1,618 | (4,966) | ||
Amounts reclassified from accumulated other comprehensive income | [1] | 7,765 | 7,959 | |
Net current period other comprehensive income | 18,415 | 7,588 | ||
Acquisition/Disposition of noncontrolling interest | 463 | |||
Ending balance | $ (180,441) | $ (198,856) | $ (206,907) | |
[1] | Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's Consolidated Statements of Operations. See Note 8, "Retirement Plans" for additional details. |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation costs | $ 7,585,000 | $ 4,384,000 | $ 4,109,000 | |
Tax benefit from compensation expense | $ 1,767,000 | $ 947,000 | $ 888,000 | |
Share based award vesting period | 5 years | |||
Class A Non-Voting | ||||
Summary of Option Activity, Shares | ||||
Outstanding beginning balance (in shares) | 1,896,000 | 1,694,000 | 1,294,000 | |
Granted (in shares) | 0 | 660,000 | 591,000 | |
Exercised (in shares) | 0 | 0 | (111,000) | |
Forfeited or expired (in shares) | (278,000) | (458,000) | (80,000) | |
Outstanding ending balance (in shares) | 1,618,000 | 1,896,000 | 1,694,000 | 1,294,000 |
Exercisable at end of period (in shares) | 1,208,000 | |||
Summary of Option Activity, Weighted-Average Exercise Price | ||||
Outstanding beginning balance, weighted-average exercise price (in usd per share) | $ 9.01 | $ 9.13 | $ 8.60 | |
Granted, weighted-average exercise price (in usd per share) | 8.73 | 9.70 | ||
Exercised, weighted-average exercise price (in usd per share) | 0 | 5.91 | ||
Forfeited or expired, weighted-average exercise price (in usd per share) | 8.90 | 9.05 | 9.24 | |
Outstanding ending balance, weighted-average exercise price (in usd per share) | 8.99 | $ 9.01 | $ 9.13 | $ 8.60 |
Exercisable at end of period, weighted-average exercise price (in usd per share) | $ 9.02 | |||
Summary of Option Activity, Weighted-Average Remaining Contractual Term | ||||
Outstanding, weighted-average remaining contractual term | 6 years 6 months | 7 years 4 months 24 days | 7 years 10 months 24 days | 8 years 1 month 6 days |
Weighted- Average Remaining Contractual Term | 6 years | |||
Outstanding, aggregate intrinsic value | $ 143,000 | $ 114,000 | $ 3,969,000 | $ 667,000 |
Exercisable at end of period, aggregate intrinsic value | $ 80,000 | |||
Shares Underlying Stock Options Excluded | ||||
Summary of Option Activity, Weighted-Average Remaining Contractual Term | ||||
Expected dividend yield | 0.00% | 3.02% | 3.80% | |
Expected volatility | 0.00% | 35.48% | 36.73% | |
Risk-free interest rate | 0.00% | 1.38% | 2.56% | |
Expected term of options | 0 years | 7 years | 7 years | |
Shares Underlying Stock Options Excluded | Class A Non-Voting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based award vesting period | 3 years | |||
Stock option vesting per year (percent) | 33.00% | |||
Stock options expiration period | 10 years | |||
Share-based compensation expense | $ 375,000 | $ 617,000 | $ 1,397,000 | |
Summary of Option Activity, Shares | ||||
Granted (in shares) | 0 | |||
Exercised (in shares) | 0 | 0 | ||
Summary of Option Activity, Weighted-Average Remaining Contractual Term | ||||
Weighted average grant date fair value, options granted during period (in usd per share) | $ 2.29 | $ 2.57 | ||
Options, exercised in period, intrinsic value | $ 31,000 | $ 0 | $ 446,000 | |
Options, vested in period, fair value | 860,000 | $ 1,084,000 | $ 1,000,000 | |
Unearned compensation cost | $ 162,000 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance-Based Stock Grants (Details) | Sep. 23, 2020shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based award vesting period | 5 years | ||||
Weighted-Average Grant-Date Fair Value | |||||
Number of share to vest | shares | 0 | ||||
Shares | |||||
Nonvested at the beginning of the period (in shares) | shares | 25,000 | 79,560 | 81,608 | 72,109 | |
Granted (in shares) | shares | 94,654 | 117,279 | 149,496 | ||
Vested (in shares) | shares | (138,635) | (119,327) | (108,610) | ||
Forfeited or unearned (in shares) | shares | (10,579) | 0 | (31,387) | ||
Nonvested at the beginning of the period, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 7.23 | $ 8.08 | $ 8.35 | $ 7.76 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | 7.23 | 8.08 | 8.35 | $ 7.76 | |
Granted, weighted-average grant-date fair value (in usd per share) | $ / shares | 9.03 | 8.34 | 9.38 | ||
Vested, weighted-average grant-date fair value (in usd per share) | $ / shares | 8.91 | 8.52 | 9.04 | ||
Forfeited or unearned, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 8.99 | $ 0 | $ 9.55 | ||
Minimum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Percentage of number of share earned of target share granted | 50 | ||||
Maximum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Percentage of number of share earned of target share granted | 200 | ||||
Shares Underlying Stock Options Excluded | Class A Non-Voting | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based award vesting period | 3 years | ||||
Weighted-Average Grant-Date Fair Value | |||||
Stock option vesting per year (percent) | 33.00% | ||||
Shares | |||||
Share-based compensation expense | $ | $ 375,000 | $ 617,000 | $ 1,397,000 | ||
Unearned compensation cost | $ | $ 162,000 | ||||
2019 Replacement Awards | |||||
Weighted-Average Grant-Date Fair Value | |||||
Stock option vesting per year (percent) | 50.00% | ||||
Percentage of stock units awards vested of targeted shares | 200.00% | ||||
Vesting date | December 31, 2021 | ||||
Shares | |||||
Vested (in shares) | shares | (135,309) | ||||
2019 Replacement Awards | Minimum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Total shareholder return | 10 | ||||
2020 Replacement Awards | |||||
Weighted-Average Grant-Date Fair Value | |||||
Stock option vesting per year (percent) | 100.00% | ||||
Vesting date | December 31, 2022 | ||||
2020 Replacement Awards | Minimum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Total shareholder return | 20 | ||||
Performance Stock Grants Excluded because Performance Conditions Have Not Been Met | Class A Non-Voting | |||||
Shares | |||||
Nonvested at the beginning of the period (in shares) | shares | 1,176,391 | 899,271 | 973,779 | 988,837 | |
Granted (in shares) | shares | 935,825 | 1,616,902 | 626,776 | ||
Vested (in shares) | shares | (507,191) | (224,681) | (214,824) | ||
Forfeited or unearned (in shares) | shares | (151,514) | (1,466,729) | (427,010) | ||
Nonvested at the beginning of the period, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 8.25 | $ 8.19 | $ 8.38 | $ 8.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | 8.25 | 8.19 | 8.38 | $ 8.07 | |
Granted, weighted-average grant-date fair value (in usd per share) | $ / shares | 8.38 | 8.01 | 8.87 | ||
Vested, weighted-average grant-date fair value (in usd per share) | $ / shares | 8.85 | 8.33 | 8.49 | ||
Forfeited or unearned, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 6.52 | $ 8.10 | $ 8.34 | ||
Fair value of performance shares vested | $ | $ 4,487,000 | $ 1,871,000 | $ 1,823,000 | ||
Share-based compensation expense | $ | 5,712,000 | $ 2,382,000 | $ 1,082,000 | ||
Unearned compensation cost | $ | $ 5,180,000 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based award vesting period | 5 years | ||
Shares | |||
Nonvested at the beginning of the period (in shares) | 79,560 | 81,608 | 72,109 |
Granted (in shares) | 94,654 | 117,279 | 149,496 |
Vested (in shares) | (138,635) | (119,327) | (108,610) |
Forfeited or unearned (in shares) | (10,579) | 0 | (31,387) |
Nonvested at the end of the period (in shares) | 25,000 | 79,560 | 81,608 |
Weighted-Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period, weighted-average grant-date fair value (in usd per share) | $ 8.08 | $ 8.35 | $ 7.76 |
Granted, weighted-average grant-date fair value (in usd per share) | 9.03 | 8.34 | 9.38 |
Vested, weighted-average grant-date fair value (in usd per share) | 8.91 | 8.52 | 9.04 |
Forfeited or unearned, weighted-average grant-date fair value (in usd per share) | 8.99 | 0 | 9.55 |
Nonvested at the end of the period, weighted-average grant-date fair value (in usd per share) | $ 7.23 | $ 8.08 | $ 8.35 |
Restricted stock | Class A Non-Voting | |||
Weighted-Average Grant-Date Fair Value | |||
Share-based compensation expense | $ 906,000 | $ 942,000 | $ 1,205,000 |
Unearned compensation cost | $ 104,000 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plans (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($)StockPurchasePlan$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2021GBP (£)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of employee stock purchase plans | StockPurchasePlan | 3 | |||
United States Stock Repurchase Program | Class A Non-Voting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares authorized (in shares) | 1,200,000 | 1,200,000 | ||
Maximum annual earnings withheld to purchase shares | $ | $ 25,000 | |||
Purchase price of stock, percent of market price (percent) | 85.00% | |||
Shares issued (in shares) | 155,293 | 114,408 | 131,100 | |
Purchase price of shares during period (in usd per share) | $ / shares | $ 6.77 | $ 6.71 | $ 7.38 | |
Projected exercises in period (in shares) | 128,000 | 128,000 | ||
Share-based compensation expense | $ | $ 349,000 | $ 343,000 | $ 277,000 | |
U.K. Stock Repurchase Plan | Class A Non-Voting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares authorized (in shares) | 1,200,000 | 1,200,000 | ||
Purchase price of stock, percent of market price (percent) | 85.00% | |||
Shares issued (in shares) | 76,457 | 2,061 | 289,901 | |
Share-based compensation expense | $ | $ 241,000 | $ 163,000 | $ 148,000 | |
Maximum monthly earnings withheld to purchase shares (in gbp) | £ | £ 250 | |||
Estimated shares eligible for purchase (in shares) | 196,000 | 196,000 | ||
U.K. Stock Repurchase Plan | Class A Non-Voting | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Purchase price of shares during period (in usd per share) | $ / shares | $ 6.64 | |||
U.K. Stock Repurchase Plan | Class A Non-Voting | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Purchase price of shares during period (in usd per share) | $ / shares | $ 8.47 | |||
International stock based compensation plan | Class A Non-Voting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares authorized (in shares) | 1,000,000 | 1,000,000 | ||
Shares issued (in shares) | 4,080 | 4,051 | 4,264 | |
Purchase price of stock, percent of market price (percent) | 85.00% | |||
International stock based compensation plan | Class A Non-Voting | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum annual earnings withheld to purchase shares | $ | $ 21,250 | |||
International stock based compensation plan | Class A Non-Voting | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum number of shares per employee | 5,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Liabilities: | ||
Contingent earnout liability | $ 12,556 | $ 6,151 |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Contingent earnout liability | 12,556 | 6,151 |
Money Market Funds | ||
ASSETS | ||
Money market funds | 10,028 | 10,026 |
Money Market Funds | Quoted Prices in Active Markets (Level 1) | ||
ASSETS | ||
Money market funds | $ 10,028 | $ 10,026 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of change in the fair value of the Company's contingent earnout consideration (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Acquisition-related contingent consideration, beginning of the year | $ 6,151 | $ 454 |
Fair value of contingent consideration upon acquisition | 9,482 | 5,808 |
Change in fair value of contingent consideration | 650 | (111) |
Settlement of contingent consideration | (1,683) | 0 |
Acquisition-related contingent consideration, end of the year | $ 14,600 | $ 6,151 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 01, 2020 | |
Debt instrument, variable interest rate duration between resets | 90 days | |||
Goodwill impairment | $ 0 | $ 17,674,000 | $ 17,484,000 | |
Earnout liability | 14,600,000 | $ 6,151,000 | $ 454,000 | |
HBA Group | ||||
Earnout liability | $ 2,409,000 | |||
Crawford Carvallo | HBA Group | ||||
Earnout liability | $ 2,044,000 |
Fair Value Measurements - Pensi
Fair Value Measurements - Pension Plan Assets within Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | $ 739,789 | $ 741,191 | $ 714,017 | |
US | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 389,689 | 404,275 | ||
Other plan liabilities, net | [1] | (1,522) | (7,336) | |
Net plan assets | 388,167 | 396,939 | ||
US | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 20,706 | 2,861 | ||
US | Short-term Investments | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 25,569 | 9,827 | ||
US | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 40,191 | 66,145 | ||
US | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 25,879 | 28,529 | ||
US | United States Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 225,846 | 243,226 | ||
US | International Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 29,300 | 28,501 | ||
US | Asset Categories Other | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 22,198 | 25,186 | ||
US | Quoted Prices in Active Markets (Level 1) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 60,010 | 38,868 | ||
US | Quoted Prices in Active Markets (Level 1) | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 20,706 | 2,861 | ||
US | Quoted Prices in Active Markets (Level 1) | Short-term Investments | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Quoted Prices in Active Markets (Level 1) | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Quoted Prices in Active Markets (Level 1) | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Quoted Prices in Active Markets (Level 1) | United States Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 39,304 | 36,007 | ||
US | Quoted Prices in Active Markets (Level 1) | International Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Quoted Prices in Active Markets (Level 1) | Asset Categories Other | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Significant Other Observable Inputs (Level 2) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 316,265 | 349,469 | ||
US | Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Significant Other Observable Inputs (Level 2) | Short-term Investments | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 25,569 | 9,827 | ||
US | Significant Other Observable Inputs (Level 2) | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 40,191 | 66,145 | ||
US | Significant Other Observable Inputs (Level 2) | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 25,879 | 28,529 | ||
US | Significant Other Observable Inputs (Level 2) | United States Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 186,542 | 207,219 | ||
US | Significant Other Observable Inputs (Level 2) | International Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 29,300 | 28,501 | ||
US | Significant Other Observable Inputs (Level 2) | Asset Categories Other | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 8,784 | 9,248 | ||
US | Significant Unobservable Inputs (Level 3) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 13,414 | 15,938 | 14,766 | |
US | Significant Unobservable Inputs (Level 3) | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Significant Unobservable Inputs (Level 3) | Short-term Investments | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Significant Unobservable Inputs (Level 3) | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Significant Unobservable Inputs (Level 3) | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Significant Unobservable Inputs (Level 3) | United States Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Significant Unobservable Inputs (Level 3) | International Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
US | Significant Unobservable Inputs (Level 3) | Asset Categories Other | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 13,414 | 15,938 | ||
U.K Plan | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 312,119 | 303,954 | ||
U.K Plan | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 33,511 | 2,613 | ||
U.K Plan | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 44,461 | ||
U.K Plan | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 7,510 | ||
U.K Plan | Money Market Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 64,704 | 162,276 | ||
U.K Plan | US Government Agencies Debt Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 141,870 | 42,564 | ||
U.K Plan | Alternative strategies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 60,779 | 34,958 | ||
U.K Plan | Real Estate Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 11,255 | 9,572 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 37,414 | 2,613 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 33,518 | 2,613 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | Money Market Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | US Government Agencies Debt Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | Alternative strategies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 3,896 | 0 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | Real Estate Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 263,457 | 291,769 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 44,461 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 7,510 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | Money Market Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 64,704 | 162,276 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | US Government Agencies Debt Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 141,870 | 42,564 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | Alternative strategies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 56,883 | 34,958 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | Real Estate Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Significant Unobservable Inputs (Level 3) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 11,255 | 9,572 | $ 9,735 | |
U.K Plan | Significant Unobservable Inputs (Level 3) | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Significant Unobservable Inputs (Level 3) | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Significant Unobservable Inputs (Level 3) | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Significant Unobservable Inputs (Level 3) | Money Market Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Significant Unobservable Inputs (Level 3) | US Government Agencies Debt Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Significant Unobservable Inputs (Level 3) | Alternative strategies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 0 | 0 | ||
U.K Plan | Significant Unobservable Inputs (Level 3) | Real Estate Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | $ 11,255 | $ 9,572 | ||
[1] | net amounts payable for unsettled security transactions. |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | $ 741,191 | $ 714,017 |
Actual return on plan assets: | ||
End of measurement period | 739,789 | 741,191 |
U.S. | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | 404,275 | |
Actual return on plan assets: | ||
End of measurement period | 389,689 | 404,275 |
U.K Plan | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | 303,954 | |
Actual return on plan assets: | ||
End of measurement period | 312,119 | 303,954 |
Significant Unobservable Inputs (Level 3) | U.S. | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | 15,938 | 14,766 |
Actual return on plan assets: | ||
Related to assets still held at the reporting date | (3,575) | 1,172 |
Purchases, sales and settlements, net | 6,099 | |
End of measurement period | 13,414 | 15,938 |
Significant Unobservable Inputs (Level 3) | U.K Plan | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | 9,572 | 9,735 |
Actual return on plan assets: | ||
Related to assets still held at the reporting date | 1,683 | (163) |
Purchases, sales and settlements, net | 0 | |
End of measurement period | $ 11,255 | $ 9,572 |
Segment and Geographic Inform_3
Segment and Geographic Information - Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,139,231 | $ 1,016,195 | $ 1,047,627 | |
Assets | 852,639 | 752,984 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating earnings | 76,891 | 89,261 | 85,308 | |
Depreciation and amortization | [1] | 14,643 | 14,503 | 16,248 |
Assets | [2] | 467,277 | 364,301 | 387,836 |
Service | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,102,032 | 982,492 | 1,005,802 | |
Loss Adjusting | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating earnings | 22,990 | 41,104 | 30,125 | |
Depreciation and amortization | [1] | 2,884 | 2,405 | 3,405 |
Assets | [2] | 246,360 | 197,918 | 232,172 |
Loss Adjusting | Service | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 475,587 | 438,491 | 457,484 | |
Crawford TPA Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 397,964 | 371,392 | ||
Crawford TPA Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating earnings | 17,567 | 20,507 | 28,506 | |
Depreciation and amortization | [1] | 7,966 | 9,451 | 10,267 |
Assets | [2] | 97,282 | 94,771 | 89,333 |
Crawford TPA Solutions | Service | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 397,964 | 371,392 | 397,626 | |
Crawford Platform Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating earnings | 36,334 | 27,650 | 26,677 | |
Depreciation and amortization | [1] | 3,793 | 2,647 | 2,576 |
Assets | [2] | 123,635 | 71,612 | 66,331 |
Crawford Platform Solutions | Service | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 228,481 | $ 172,609 | $ 150,692 | |
[1] | Excludes amortization expense of finite-lived customer relationships and trade name intangible assets. | |||
[2] | Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. |
Segment and Geographic Inform_4
Segment and Geographic Information - Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total capital expenditures | $ 30,954 | $ 37,380 | $ 21,124 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 14,910 | 17,070 | 12,422 |
Loss Adjusting | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 3,598 | 1,229 | 1,625 |
Crawford TPA Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 8,765 | 6,982 | 4,331 |
Crawford Platform Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | $ 3,681 | $ 12,099 | $ 2,746 |
Segment and Geographic Inform_5
Segment and Geographic Information - Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,139,231 | $ 1,016,195 | $ 1,047,627 |
Service | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,102,032 | 982,492 | 1,005,802 |
Reimbursements | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 37,199 | $ 33,703 | $ 41,825 |
Segment and Geographic Inform_6
Segment and Geographic Information - Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net corporate interest expense | $ (6,559) | $ (7,923) | $ (10,774) |
Goodwill and intangible asset impairments | 0 | (17,674) | (17,484) |
Arbitration and claim settlements | 0 | 0 | (12,552) |
Restructuring and other costs, net | 0 | (9,760) | |
(Loss) Income Before Income Taxes | 43,864 | 39,088 | 23,637 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Segment operating earnings | 76,891 | 89,261 | 85,308 |
Unallocated corporate and shared costs and credits | (14,386) | (17,431) | (7,699) |
Net corporate interest expense | (6,559) | (7,923) | (10,774) |
Stock option expense | (1,053) | (1,122) | (1,885) |
Amortization of acquisition-related intangible assets | (11,029) | (11,653) | (11,277) |
Goodwill and intangible asset impairments | 0 | (17,674) | (17,484) |
Arbitration and claim settlements | 0 | (12,552) | |
Restructuring and other costs, net | 0 | 8,133 | |
Gain (loss) on disposition of businesses, net | 0 | 13,763 | 0 |
(Loss) Income Before Income Taxes | $ 43,864 | $ 39,088 | $ 23,637 |
Segment and Geographic Inform_7
Segment and Geographic Information - Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | $ 852,639 | $ 752,984 | ||
ASSETS | ||||
Cash and cash equivalents | 53,228 | 44,656 | $ 51,802 | |
Income taxes receivable | 4,936 | 1,269 | ||
Prepaid expenses and other current assets | 34,576 | 29,490 | ||
Net Property and Equipment | 33,721 | 36,402 | ||
Right-of-use lease assets | 99,369 | 109,315 | ||
Capitalized software costs, net | 75,802 | 71,021 | ||
Deferred income tax assets | 21,266 | 25,595 | ||
Other noncurrent assets | 62,464 | 70,935 | ||
Total assets acquired | 852,639 | 752,984 | ||
Operating Segments | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | [1] | 467,277 | 364,301 | 387,836 |
ASSETS | ||||
Total assets acquired | [1] | 467,277 | 364,301 | $ 387,836 |
Corporate, Non-Segment | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 385,362 | 388,683 | ||
ASSETS | ||||
Cash and cash equivalents | 53,228 | 44,656 | ||
Income taxes receivable | 4,936 | 1,269 | ||
Prepaid expenses and other current assets | 34,576 | 29,490 | ||
Net Property and Equipment | 33,721 | 36,402 | ||
Right-of-use lease assets | 99,369 | 109,315 | ||
Capitalized software costs, net | 75,802 | 71,021 | ||
Deferred income tax assets | 21,266 | 25,595 | ||
Other noncurrent assets | 62,464 | 70,935 | ||
Total assets acquired | $ 385,362 | $ 388,683 | ||
[1] | Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. |
Segment and Geographic Inform_8
Segment and Geographic Information - Revenues and Long-lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | $ 1,139,231 | $ 1,016,195 | $ 1,047,627 |
TPA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 1,102,032 | 982,492 | 1,005,802 |
Long-lived assets | 208,892 | 216,738 | 200,224 |
U.S. | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 658,785 | 570,820 | 569,205 |
Long-lived assets | 145,061 | 151,906 | 140,560 |
U.K. | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 134,663 | 128,674 | 126,337 |
Long-lived assets | 15,923 | 20,290 | 20,749 |
Canada | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 84,945 | 89,162 | 114,438 |
Long-lived assets | 19,579 | 14,404 | 17,999 |
International Countries_ Otherthan U K And Canada | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 223,639 | 193,836 | 195,822 |
Long-lived assets | $ 28,329 | $ 30,138 | $ 20,916 |
Client Funds - Additional Infor
Client Funds - Additional Information (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Custodial | ||
Funds Heldfor Clients [Line Items] | ||
Funds held for clients | $ 555,821,000 | $ 537,531,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Arbitration settlement | $ 12,552,000 | |
Letter of credit subcommitment | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding amount | $ 11,277,000 |
Restructuring and Other Costs_2
Restructuring and Other Costs, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring and other costs | $ 0 | $ 8,133,000 | $ 0 |
Restructuring and Other Costs_3
Restructuring and Other Costs, Net - Restructuring and Related Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |||
Severance benefits | $ 0 | $ 9,350,000 | $ 0 |
Asset impairments and lease termination costs | 0 | 2,538,000 | 0 |
Gain on fair value remeasurement of cost and equity method investments | 0 | (1,099,000) | 0 |
Liquidation dividend from a cost method investment | 0 | (1,247,000) | 0 |
Gain on sale of internet protocol addresses | 0 | (1,409,000) | 0 |
Total restructuring and other costs, net | $ 0 | $ 8,133,000 | $ 0 |
Restructuring and Other Costs_4
Restructuring and Other Costs, Net - Schedule of Restructuring Reserve Liabilities by Type (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 3,959 | $ 814 |
Additions | 0 | 9,760 |
Adjustments to accruals | (534) | (925) |
Cash payments | (3,009) | (5,690) |
Ending balance | 416 | 3,959 |
Accrued Compensation and Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 3,369 | 342 |
Additions | 0 | 9,112 |
Adjustments to accruals | (561) | (453) |
Cash payments | (2,520) | (5,632) |
Ending balance | 288 | 3,369 |
Other Accrued Liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 590 | 472 |
Additions | 0 | 648 |
Adjustments to accruals | 27 | (472) |
Cash payments | (489) | (58) |
Ending balance | $ 128 | $ 590 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Feb. 10, 2022 | |
Subsequent Event [Line Items] | ||
Number of shares authorized to be repurchased (shares) | 5,000,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Net Proceeds from Sale of the Facility | $ 3.1 | |
Gains (Losses) on Sale of the Facility | $ 1.8 | |
Number of shares remaining to be repurchased (shares) | 413,317 |