Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 29, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | CRAWFORD & CO | |
Entity Central Index Key | 0000025475 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-10356 | |
Entity Incorporation, State or Country Code | GA | |
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 | |
Entity Tax Identification Number | 58-0506554 | |
City Area Code | 404 | |
Local Phone Number | 300-1000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Non-Voting | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,876,843 | |
Title of 12(b) Security | Class A Common Stock — $1.00 Par Value | |
Trading Symbol | CRD-A | |
Security Exchange Name | NYSE | |
Class B Voting | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,292,664 | |
Title of 12(b) Security | Class B Common Stock — $1.00 Par Value | |
Trading Symbol | CRD-B | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations Unaudited - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Revenues | $ 326,853,000 | $ 337,629,000 | $ 639,926,000 | $ 665,567,000 |
Costs and Expenses: | ||||
Cost of services | 234,891,000 | 247,104,000 | 460,699,000 | 485,786,000 |
Selling, general, and administrative expenses | 72,270,000 | 70,473,000 | 149,590,000 | 137,184,000 |
Corporate interest expense, net of interest income | 4,256,000 | 4,309,000 | 7,852,000 | 8,708,000 |
Total Costs and Expenses | 311,417,000 | 321,886,000 | 618,141,000 | 631,678,000 |
Other Loss, net | (2,448,000) | (2,192,000) | (4,971,000) | (4,337,000) |
Income Before Income Taxes | 12,988,000 | 13,551,000 | 16,814,000 | 29,552,000 |
Provision for Income Taxes | 4,486,000 | 5,206,000 | 5,533,000 | 10,477,000 |
Net Income | 8,502,000 | 8,345,000 | 11,281,000 | 19,075,000 |
Net Loss Attributable to Noncontrolling Interests | 82,000 | 82,000 | 140,000 | 33,000 |
Net Income Attributable to Shareholders of Crawford & Company | $ 8,584,000 | $ 8,427,000 | $ 11,421,000 | $ 19,108,000 |
Class A Non-Voting | ||||
Earnings Per Share - Basic: | ||||
Earnings per share - basic | $ 0.17 | $ 0.17 | $ 0.23 | $ 0.39 |
Earnings Per Share - Diluted: | ||||
Earnings per share - diluted | $ 0.17 | $ 0.17 | $ 0.23 | $ 0.39 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 29,728 | 28,956 | 29,657 | 28,899 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, diluted | 30,171 | 29,770 | 30,225 | 29,456 |
Class B Voting | ||||
Earnings Per Share - Basic: | ||||
Earnings per share - basic | $ 0.17 | $ 0.17 | $ 0.23 | $ 0.39 |
Earnings Per Share - Diluted: | ||||
Earnings per share - diluted | $ 0.17 | $ 0.17 | $ 0.23 | $ 0.39 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 19,374 | 19,848 | 19,458 | 19,848 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, diluted | 19,374 | 19,848 | 19,458 | 19,848 |
Service | ||||
Revenues: | ||||
Revenues | $ 314,227,000 | $ 324,556,000 | $ 615,881,000 | $ 640,890,000 |
Costs and Expenses: | ||||
Cost of services | 222,265,000 | 234,031,000 | 436,654,000 | 461,109,000 |
Reimbursements | ||||
Revenues: | ||||
Revenues | 12,626,000 | 13,073,000 | 24,045,000 | 24,677,000 |
Costs and Expenses: | ||||
Cost of services | $ 12,626,000 | $ 13,073,000 | $ 24,045,000 | $ 24,677,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Interest income | $ 817 | $ 660 | $ 1,718 | $ 936 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income Unaudited - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 8,502 | $ 8,345 | $ 11,281 | $ 19,075 |
Other Comprehensive (Loss) Income: | ||||
Net foreign currency translation (loss) gain, net of tax of $0 and $0, respectively | (2,115) | (1,984) | (916) | 5,706 |
Amortization of actuarial losses for retirement plans included in net periodic pension cost, net of tax | 2,506 | 2,653 | 5,065 | 4,739 |
Other Comprehensive Income | 391 | 669 | 4,149 | 10,445 |
Comprehensive Income | 8,893 | 9,014 | 15,430 | 29,520 |
Comprehensive loss attributable to noncontrolling interests | 81 | 76 | 204 | 69 |
Comprehensive Income Attributable to Shareholders of Crawford & Company | $ 8,974 | $ 9,090 | $ 15,634 | $ 29,589 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Loss) Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
OCI, Tax on foreign currency translation gain (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
OCI, Tax on amortization of actuarial losses on retirement plans included in net periodic pension cost | $ 628 | $ 609 | $ 1,271 | $ 1,340 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets Unaudited - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | [1] |
Current Assets: | |||
Cash and cash equivalents | $ 46,742 | $ 58,363 | |
Accounts receivable, less allowance for expected credit losses of $10,995 and $8,599, respectively | 133,847 | 131,362 | |
Unbilled revenues, at estimated billable amounts | 131,119 | 116,611 | |
Income taxes receivable | 4,894 | 4,842 | |
Prepaid expenses and other current assets | 35,393 | 58,168 | |
Total Current Assets | 351,995 | 369,346 | |
Net Property and Equipment | 20,365 | 22,742 | |
Other Assets: | |||
Operating lease right-of-use assets, net | 83,175 | 88,615 | |
Goodwill | 76,572 | 76,724 | |
Intangible assets arising from business acquisitions, net | 78,127 | 81,786 | |
Capitalized software costs, net | 103,884 | 96,770 | |
Deferred income tax assets | 25,456 | 26,247 | |
Other noncurrent assets | 46,238 | 36,969 | |
Total Other Assets | 413,452 | 407,111 | |
TOTAL ASSETS | 785,812 | 799,199 | |
Current Liabilities: | |||
Short-term borrowings | 24,425 | 14,813 | |
Accounts payable | 43,378 | 45,107 | |
Accrued compensation and related costs | 77,828 | 97,842 | |
Self-insured risks | 19,332 | 33,238 | |
Income taxes payable | 0 | 6,130 | |
Operating lease liability | 24,411 | 24,351 | |
Other accrued liabilities | 46,657 | 42,271 | |
Deferred revenues | 36,193 | 35,540 | |
Total Current Liabilities | 272,224 | 299,292 | |
Noncurrent Liabilities: | |||
Long-term debt and finance leases, less current installments | 209,410 | 194,335 | |
Operating lease liability | 70,888 | 78,029 | |
Deferred revenues | 23,768 | 24,871 | |
Accrued pension liabilities | 23,221 | 24,006 | |
Other noncurrent liabilities | 36,594 | 38,835 | |
Total Noncurrent Liabilities | 363,881 | 360,076 | |
Shareholders' Investment: | |||
Additional paid-in capital | 85,461 | 82,589 | |
Retained earnings | 231,263 | 228,564 | |
Accumulated other comprehensive loss | (214,402) | (218,615) | |
Shareholders' Investment Attributable to Shareholders of Crawford & Company | 151,389 | 141,618 | |
Noncontrolling interests | (1,682) | (1,787) | |
Total Shareholders' Investment | 149,707 | 139,831 | |
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 785,812 | 799,199 | |
Class A Non-Voting | |||
Shareholders' Investment: | |||
Common stock outstanding, value | 29,743 | 29,525 | |
Class B Voting | |||
Shareholders' Investment: | |||
Common stock outstanding, value | $ 19,324 | $ 19,555 | |
[1] Derived from the audited Consolidated Balance Sheet |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Unaudited (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Allowance for doubtful accounts | $ 8,358 | $ 8,599 |
Class A Non-Voting | ||
Shareholders' Investment: | ||
Par or stated value per share (USD per share) | $ 1 | $ 1 |
Shares authorized (shares) | 50,000 | 50,000 |
Shares issued (shares) | 29,743 | 29,525 |
Shares outstanding (shares) | 29,743 | 29,525 |
Class B Voting | ||
Shareholders' Investment: | ||
Par or stated value per share (USD per share) | $ 1 | $ 1 |
Shares authorized (shares) | 50,000 | 50,000 |
Shares issued (shares) | 19,324 | 19,555 |
Shares outstanding (shares) | 19,324 | 19,555 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows Unaudited - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows From Operating Activities: | ||
Net income | $ 11,281 | $ 19,075 |
Reconciliation of net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 18,145 | 18,241 |
Stock-based compensation | 2,831 | 2,609 |
(Gain) loss on disposal of property and equipment | (80) | 116 |
Contingent earnout adjustments | 581 | 973 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (2,537) | (15,107) |
Unbilled revenues, net | (14,234) | 1,828 |
Accrued or prepaid income taxes | (6,652) | (1,217) |
Accounts payable and accrued liabilities | (22,336) | (3,928) |
Deferred revenues | (798) | 4,529 |
Accrued retirement costs | 1,581 | 750 |
Prepaid expenses and other operating activities | 3,965 | (700) |
Net cash (used in) provided by operating activities | (8,253) | 27,169 |
Cash Flows From Investing Activities: | ||
Acquisitions of property and equipment | (1,418) | (1,914) |
Capitalization of computer software costs | (17,031) | (16,031) |
Net cash used in investing activities | (18,449) | (17,945) |
Cash Flows From Financing Activities: | ||
Cash dividends paid | (6,880) | (5,854) |
Repurchases of common stock | (2,073) | 0 |
Increases in revolving credit facility borrowings | 48,592 | 20,958 |
Payments on revolving credit facility borrowings | (23,769) | (18,879) |
Payments of contingent consideration on acquisitions | (579) | (4,916) |
Other financing activities | 364 | 213 |
Net cash provided by (used in) financing activities | 15,655 | (8,478) |
Effects of exchange rate changes on cash and cash equivalents | (155) | 1,062 |
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash | (11,202) | 1,808 |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year | 59,545 | 46,645 |
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ 48,343 | $ 48,453 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Shareholders' Investment Unaudited - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ 143,238 | $ 139,831 | [1] | $ 141,827 | $ 123,378 | $ 139,831 | [1] | $ 123,378 |
Net income | 8,502 | 2,779 | 8,345 | 10,730 | ||||
Other comprehensive income (loss) | 391 | 3,758 | 669 | 9,776 | 4,149 | 10,445 | ||
Cash dividends paid | (3,437) | (3,443) | (2,929) | (2,925) | ||||
Stock-based compensation | 1,613 | 1,218 | 1,586 | 1,023 | ||||
Repurchases of common stock | (1,340) | (733) | ||||||
Decrease in value of noncontrolling interest due to acquisitions | (79) | |||||||
Shares issued in connection with stock-based compensation plans, net | 819 | (50) | 397 | 74 | ||||
Dividends paid to noncontrolling interests | (122) | (229) | ||||||
Ending balance | 149,707 | 143,238 | 149,895 | 141,827 | 149,707 | 149,895 | ||
Common Stock | Class A Non-Voting | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 29,628 | 29,525 | 28,925 | 28,764 | 29,525 | 28,764 | ||
Shares issued in connection with stock-based compensation plans, net | 115 | 103 | 52 | 161 | ||||
Ending balance | 29,743 | 29,628 | 28,977 | 28,925 | 29,743 | 28,977 | ||
Common Stock | Class B Voting | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 19,469 | 19,555 | 19,848 | 19,848 | 19,555 | 19,848 | ||
Repurchases of common stock | (145) | (86) | ||||||
Ending balance | 19,324 | 19,469 | 19,848 | 19,848 | 19,324 | 19,848 | ||
Additional Paid-In Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 83,104 | 82,589 | 79,094 | 78,158 | 82,589 | 78,158 | ||
Stock-based compensation | 1,613 | 1,218 | 1,586 | 1,023 | ||||
Decrease in value of noncontrolling interest due to acquisitions | 40 | |||||||
Increase in value of noncontrolling interest due to acquisition | (550) | |||||||
Shares issued in connection with stock-based compensation plans, net | 704 | (153) | 345 | (87) | ||||
Ending balance | 85,461 | 83,104 | 81,025 | 79,094 | 85,461 | 81,025 | ||
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 227,311 | 228,564 | 220,850 | 213,094 | 228,564 | 213,094 | ||
Net income | 8,584 | 2,837 | 8,427 | 10,681 | ||||
Cash dividends paid | (3,437) | (3,443) | (2,929) | (2,925) | ||||
Repurchases of common stock | (1,195) | (647) | ||||||
Ending balance | 231,263 | 227,311 | 226,348 | 220,850 | 231,263 | 226,348 | ||
AOCL attributable to shareholders of Crawford & Company | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (214,792) | (218,615) | (205,503) | (215,321) | (218,615) | (215,321) | ||
Other comprehensive income (loss) | 390 | 3,823 | 663 | 9,818 | ||||
Ending balance | (214,402) | (214,792) | (204,840) | (205,503) | (214,402) | (204,840) | ||
Shareholders' Investment Attributable to Shareholders of Crawford & Company | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 144,720 | 141,618 | 143,214 | 124,543 | 141,618 | 124,543 | ||
Net income | 8,584 | 2,837 | 8,427 | 10,681 | ||||
Other comprehensive income (loss) | 390 | 3,823 | 663 | 9,818 | ||||
Cash dividends paid | (3,437) | (3,443) | (2,929) | (2,925) | ||||
Stock-based compensation | 1,613 | 1,218 | 1,586 | 1,023 | ||||
Repurchases of common stock | (1,340) | (733) | ||||||
Decrease in value of noncontrolling interest due to acquisitions | 40 | |||||||
Increase in value of noncontrolling interest due to acquisition | (550) | |||||||
Shares issued in connection with stock-based compensation plans, net | 819 | (50) | 397 | 74 | ||||
Ending balance | 151,389 | 144,720 | 151,358 | 143,214 | 151,389 | 151,358 | ||
Noncontrolling Interests | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (1,482) | (1,787) | (1,387) | (1,165) | (1,787) | (1,165) | ||
Net income | (82) | (58) | (82) | 49 | ||||
Other comprehensive income (loss) | 1 | (65) | 6 | (42) | ||||
Decrease in value of noncontrolling interest due to acquisitions | (119) | |||||||
Increase in value of noncontrolling interest due to acquisition | 550 | |||||||
Dividends paid to noncontrolling interests | (122) | (229) | ||||||
Ending balance | $ (1,682) | $ (1,482) | $ (1,463) | $ (1,387) | $ (1,682) | $ (1,463) | ||
[1] Derived from the audited Consolidated Balance Sheet |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Shareholders' Investment Unaudited (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Class A Non-Voting | ||||
Class of Stock [Line Items] | ||||
Cash dividends paid (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.06 | $ 0.06 |
Class B Voting | ||||
Class of Stock [Line Items] | ||||
Cash dividends paid (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.06 | $ 0.06 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 8,584 | $ 8,427 | $ 11,421 | $ 19,108 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (the "SEC"). These unaudited condensed consolidated financial statements omit certain notes and other financial information and therefore, should be read in conjunction with the 2023 Form 10-K. The Condensed Consolidated Balance Sheet information presented herein as of December 31, 2023 has been derived from the audited consolidated financial statements as of that date. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Form 10-K for the year ended December 31, 2023. Due to the impact of weather activity and other macroeconomic uncertainties, the Company's operating results for the three and six months ended June 30, 2024 and financial position as of June 30, 2024 are not necessarily indicative of the results or financial position that may be expected for the year ending December 31, 2024 or for other future periods. The financial results from the Company's operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines, are reported and consolidated on a two-month delayed basis (fiscal year-end of October 31) as permitted by GAAP in order to provide sufficient time for accumulation of their results. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments (consisting only of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. There have been no material changes to our significant accounting policies and estimates from those disclosed in the Company's financial statements included in Form 10-K for the year ended December 31, 2023 other than as disclosed herein. The Company has four reportable segments consisting of North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. Significant intercompany transactions have been eliminated in consolidation. The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and also considered a variable interest entity ("VIE") of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan. At June 30, 2024 and December 31, 2023 , the liabilities of the deferred compensation plan were $ 6,414,000 and $ 6,261,000 , 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 $ 10,313,000 and $ 10,237,000 , respectively. These liabilities and assets are included in "Other noncurrent liabilities" and "Other noncurrent assets," respectively, on the Company's unaudited Condens ed Consolidated Balance Sheets. Noncontrolling interests represent the minority shareholders' share of the net income or loss and share holders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the unaudited Condensed Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards Improvements to Reportable Segment Disclosures (ASU 2023-07) In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires more detailed information about a reportable segment’s expenses. The new standard is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with retrospective application required. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. Improvements to Income Tax Disclosures (ASU 2023-09) In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , a new accounting standard to enhance the transparency and decision usefulness of income tax disclosures. The new standard is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Revenue from Contracts with Customers Revenues are recognized when control of the promised services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are recognized net of any sales, use or value added taxes collected from customers, which are subsequently remitted to governmental authorities. As the Company completes its performance obligations which are identified below, it has an unconditional right to consideration as outlined in the Company's contracts. Generally, the Company's accounts receivables are expected to be collected in less than two months . The Company's North America Loss Adjusting and International Operations segments generate revenue for adjusting 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. These segments also generate 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 fee-per-claim basis for each optional purchase of the claims management services exercised by its customer. The Company also performs Legal Services within its International Operations segment. 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 North America Loss Adjusting revenues before reimbursements disaggregated by geography for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, U.S. $ 53,829 $ 51,972 $ 107,353 $ 104,955 Canada 22,201 24,390 46,042 49,004 Total North America Loss Adjusting Revenues before Reimbursements $ 76,030 $ 76,362 $ 153,395 $ 153,959 The following table presents International Operations revenues before reimbursements disaggregated by geography and service line for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, U.K. $ 38,490 $ 32,273 $ 76,389 $ 63,005 Europe 24,453 23,160 48,074 45,924 Australia 19,303 20,523 36,583 41,159 Asia 5,604 5,888 10,973 11,515 Latin America 7,591 7,456 15,787 13,691 International Loss Adjusting $ 95,441 $ 89,300 $ 187,806 $ 175,294 Crawford Legal Services $ 6,842 $ 6,012 $ 12,569 $ 11,881 Total International Operations Revenues before Reimbursements $ 102,283 $ 95,312 $ 200,375 $ 187,175 The Company’s Broadspire segment is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Claims Management service line includes Workers' Compensation, Liability, Property and Disability Claims Management. This service line also performs additional services such as Accident & Health claims programs, including Affinity type claims, and disability and leave management services. Each claim referred by the customer is considered an additional optional purchase of claims management services under the agreement with the customer. The transaction price is specified in the contract and is fixed for each service. Revenue is recognized over time as services are provided as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document, and report the claim and control of these services is transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type applied utilizing a portfolio approach based on time elapsed for these claims as the Company believes this is the most accurate depiction of the transfer of claims management services to its customer. Broadspire also provides claims management services on a monthly basis for which revenue is recognized over time monthly based on claims received and staff required to complete our claim handling obligations. Broadspire also provides Risk Management Information Services and Account Administration Services and generates revenues from income earned for managing funds maintained to administer claims for its customers. For non-claim services provided in our Claims Management service line, revenue is recognized over time as services are provided and control of these services is transferred to the customer. Revenue is recognized as time elapses as this is the most accurate depiction of the transfer of the service to the customer. The Company's obligation to manage claims under the Claims Management service line can range from less than one year , on a one- or two-year basis or for the lifetime of the claim. Under certain claims management agreements, the Company receives consideration from a customer at contract inception prior to transferring services to the customer, however, it would begin performing services immediately. The period between a customer’s payment of consideration and the completion of the promised services could be greater than one year. There is no difference between the amount of promised consideration and the cash selling price of the promised services. The fee is billed upfront by the Company in order to provide customers with simplified and predictable ways of purchasing its services and it is customary to invoice service fees when the claim is assigned. The Company considered whether a significant financing component exists and determined that there is not a significant financing component at the contract level. The Medical Management service line offers case managers who provide administration services by proactively managing medical treatment plans for claimants while facilitating an understanding of and participation in their rehabilitation process. Revenue for Medical Management services is recognized over time as the performance obligations are satisfied through the effort expended to manage the medical treatment for claimants and control of these services is transferred to the customer. Medical Management services are generally billed based on time incurred, are considered variable consideration, and revenue is recognized at the amount in which the Company has the right to invoice for services performed. This method of revenue recognition is the most accurate depiction of the transfer of the Medical Management services to the customer. The Company also performs medical bill review services. Medical bill review services provide an analysis of medical charges for clients’ claims to identify opportunities for savings. Medical bill review services revenues are recognized over time as control of the service is transferred to the customer. Revenue is recognized based upon the transfer of the results of the medical bill review service to the customer as this is the most accurate depiction of the transfer of the service to the customer. The following table presents Broadspire revenues before reimbursements disaggregated by service line for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Claims Management $ 49,858 $ 44,750 $ 98,256 $ 87,858 Medical Management 47,229 42,494 93,129 83,440 Total Broadspire Revenues before Reimbursements $ 97,087 $ 87,244 $ 191,385 $ 171,298 The Company's Platform Solutions segment principally generates revenues through its Contractor Connection, Networks and Subrogation 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. 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 based on time elapsed for these claims. For claims billed on a time and expense incurred basis, which are considered variable consideration, the Company recognizes revenue at the amount in which it has the right to invoice for services performed. These methods of revenue recognition are the most accurate depiction of the transfer of the claims management services to the customer. The Subrogation service line provides subrogation recovery and consultative services for the property and casualty insurance industry. Revenue is recognized at a point in time when the subrogation is successful and cash consideration is received. The following table presents Platform Solutions revenues before reimbursements disaggregated by service line for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Contractor Connection $ 18,118 $ 19,797 $ 35,063 $ 39,098 Networks 13,373 38,464 21,116 75,867 Subrogation 7,336 7,377 14,547 13,493 Total Platform Solutions Revenues before Reimbursements $ 38,827 $ 65,638 $ 70,726 $ 128,458 In the normal course of business, the Company's segments incur certain out-of-pocket expenses that are thereafter reimbursed by its customers. The Company controls the promised good or service before it is transferred to its customer, therefore it is a principal in the transaction. These out-of-pocket expenses and associated reimbursements are reported on a gross basis within expenses and revenues, respectively, in the Company's unaudited Condensed Consolidated Statements of Operations. Claims Management Performance Obligations For claims management services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company sells multiple lines of claims processing and different levels of processing depending on the complexity of the claims. The Company typically provides a menu of offerings from which the customer chooses to purchase at its option. The price of each service is separate and distinct and provides a separate and distinct value to the customer. Pricing is consistent for each service irrespective of the other services or quantities requested by the customer. For example, if the Company provides claims processing for both auto and general liability, those services are priced and delivered independently. These additional services represent optional purchases of additional claims management services and do not represent arrangements with multiple performance obligations. Performance-based fees The Company, from time-to-time, entered into contracts with certain clients within its International Operations that provided for additional fee revenues or revenue reductions based on its efficiency in managing claim portfolios and on the basis of claim outcomes and the resulting average claim costs for the respective portfolios. These amounts were in addition to, or a reduction of, the fee revenues discussed above. These performance-based revenues, which represented variable consideration, were based on performance metrics set forth in the underlying contracts. These were generally under multi-year contracts but with discrete individual contract year measurement periods that remained subject to adjustment until claim closure. Each period, the Company based its estimates of performance-based revenues on an individual contract year basis, which were subject to adjustment in future years based on changes in average claim costs. Accordingly, the amounts represented the Company's best estimate of amounts earned using historical averages and other factors. Because the expectation of the ultimate contingent revenue amounts to be earned could vary from period to period, these estimates could change significantly from quarter to quarter, and such adjustments could occur in future periods until the individual contract year measurement period was closed. Variable consideration was recognized when the Company concluded, based on all the facts and information available at the reporting date, that it was probable that a significant revenue reversal would not occur in future periods. In the 2023 fourth quarter, the Company completed its obligations for performance-based revenues under these contracts. Contract Balances The timing of revenue recognition, billings and cash collections result in billed accounts receivables, unbilled accounts receivable reported as "Unbilled revenues, at estimated billable amounts," and "Deferred revenues" on the Company’s unaudited Condensed Consolidated Balance Sheets. Unbilled revenues is recorded for revenue that has been recognized in advance of billing the customer, resulting from professional services delivered that the Company expects and is entitled to receive as consideration under certain contracts. Billing requirements vary by contract but substantially, all unbilled revenues are billed within one year . When the Company receives consideration from a customer prior to transferring services to the customer under the terms of certain claims management agreements, it records deferred revenues on its unaudited Condensed Consolidated Balance Sheets, which represents a contract liability. These fixed-fee service agreements typically result from the Broadspire 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 . De ferred 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. Deferred revenues related to lifetime claim handling arrangements approximated $ 40,123,000 and $ 39,800,000 as of June 30, 2024 and December 31, 2023, respectively. 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 adjusts deferred revenues as necessary. As a portfolio approach is utilized to recognize deferred revenues, any changes in estimates will impact the timing of revenue recognition and any changes in estimates are recognized in the period in which they are determined. The table below presents the deferred revenues balance as of January 1, 2024 and the significant activity affecting deferred revenues during the six months ended June 30, 2024: (In Thousands) Customer Contract Liabilities Deferred Balance at January 1, 2024 $ 60,411 Quarterly additions 24,919 Revenue recognized from the prior periods ( 15,358 ) Revenue recognized from current quarter additions ( 8,941 ) Balance as of March 31, 2024 $ 61,031 Quarterly additions 23,753 Revenue recognized from the prior periods ( 15,799 ) Revenue recognized from current quarter additions ( 9,024 ) Balance as of June 30, 2024 $ 59,961 Remaining Performance Obligations As of June 30, 2024, the Company had $ 108,800,000 of remaining performance obligations related to claims and non-claims services for which the price is fixed. Remaining performance obligations consist of deferred revenues as well as certain unbilled receivables where the claims processing has not yet occurred. The Company expects to recognize approximately 73 % of its re maining performance obligations as revenues within one year and the remaining balance thereafter. Costs to Obtain a Contract The Company has a sales incentive compensation program where payment is based on the revenues recognized in the period. The payment does not represent an incremental cost to the Company that provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented as a contract asset on the Company's unaudited Condensed Consolidated Balance Sheets. Practical Expedients Elected As a practical expedient, the Company does not adjust the consideration in a contract for the effects of a significant financing component it expects, at contract inception, when the period between a customer’s payment of consideration and the transfer of promised services to the customer will be one year or less. For claims management services that are billed on a time and expense incurred or per unit basis, 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, or (ii) contracts with variable consideration allocated entirely to a single performance obligation. |
Credit Losses
Credit Losses | 6 Months Ended |
Jun. 30, 2024 | |
Credit Loss [Abstract] | |
Credit Losses | 4. Credit Losses 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. The Company evaluates the risks related to its trade receivables and contract assets by considering customer type, geography, and aging. Actual experience may differ significantly from historical or expected loss results. The Company writes off account receivables and unbilled revenues when they become uncollectible, and any payments subsequently received are accounted for as recoveries. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company's consolidated effective income tax rate may change periodically due to changes in enacted tax rates, fluctuations in the mix of income earned from the Company's various domestic and international operations, which are subject to income taxes at different rates, the Company's ability to utilize net operating loss and tax credit carryforwards, amounts related to uncertain income tax positions and goodwill impairments. The provision for income taxes on consolidated income before income taxes totaled $ 4,486,000 and $ 5,206,000 for the three months ended June 30, 2024 and 2023 , respectively. The overall effective tax rate decreased to 34.5 % for the three months ended June 30, 2024 compared with 38.4 % for the 2023 period primarily due to one-time discrete tax items in the prior year period. The provision for income taxes on consolidated income before income taxes totaled $ 5,533,000 and $ 10,477,000 for the six months ended June 30, 2024 and 2023 , respectively. The overall effective tax rate decreased to 32.9 % for the six months ended June 30, 2024 compared with 35.5 % for the 2023 period primarily due to one-time discrete tax items in the prior year period. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension Plans | 6. Defined Benefit Pension Plans Net periodic cost related to all of the Company's defined benefit pension plans recognized in the Company's unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 included the following components: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Service cost $ 378 $ 356 $ 762 $ 713 Interest cost 5,734 5,983 11,480 11,922 Expected return on assets ( 6,414 ) ( 6,796 ) ( 12,823 ) ( 13,568 ) Amortization of actuarial loss 3,128 3,005 6,314 5,983 Net periodic cost $ 2,826 $ 2,548 $ 5,733 $ 5,050 For the three months ended June 30, 2024 and 2023, the non-service components of net periodic pension expense totaled $ 2,448,000 and $ 2,192,000 , respectively. For the six months ended June 30, 2024 and 2023, the non-service components of net periodic pension expense totaled $ 4,971,000 and $ 4,337,000 , respectively. These amounts are included in "Other Loss, net" on the unaudited Condensed Consolidated Statements of Operations. For the six months ended June 30, 2024 , the Company made no contributions to the U.S. defined benefit pension plan and $ 1,205,000 to the U.K. defined benefit pension plans, as compared with no contributions to the U.S. defined benefit pension plan and $ 1,025,000 to the U.K. defined benefit pension plans during the six months ended June 30, 2023 . |
Net Income Attributable to Shar
Net Income Attributable to Shareholders of Crawford & Company per Common Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Shareholders of Crawford & Company per Common Share | 7. Net Income Attributable to Shareholders of Crawford & Company per Common Share The Company computes earnings per share of its non-voting Class A Common Stock ("CRD-A") and voting Class B Common Stock ("CRD-B") using the two-class method, which allocates the undistributed earnings in each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on the CRD-A shares than on the CRD-B shares, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. During 2024 and 2023, the Board of Directors has declared the same dividend on CRD-A and CRD-B. The computations of basic net income attributable to shareholders of Crawford & Company per common share were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B Earnings per share - basic: Numerator: Allocation of undistributed earnings $ 3,116 $ 2,031 $ 3,262 $ 2,236 $ 2,742 $ 1,799 $ 7,857 $ 5,397 Dividends paid 2,081 1,356 1,738 1,191 4,155 2,725 3,472 2,382 Net income attributable to common shareholders, basic $ 5,197 $ 3,387 $ 5,000 $ 3,427 $ 6,897 $ 4,524 $ 11,329 $ 7,779 Denominator: Weighted-average common shares outstanding, basic 29,728 19,374 28,956 19,848 29,657 19,458 28,899 19,848 Earnings per share - basic $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.23 $ 0.23 $ 0.39 $ 0.39 The computations of diluted net income attributable to shareholders of Crawford & Company per common share were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B Earnings per share - diluted: Numerator: Allocation of undistributed earnings $ 3,134 $ 2,013 $ 3,299 $ 2,199 $ 2,763 $ 1,778 $ 7,918 $ 5,336 Dividends paid 2,081 1,356 1,738 1,191 4,155 2,725 3,472 2,382 Net income attributable to common shareholders, diluted $ 5,215 $ 3,369 $ 5,037 $ 3,390 $ 6,918 $ 4,503 $ 11,390 $ 7,718 Denominator: Weighted-average common shares outstanding, basic 29,728 19,374 28,956 19,848 29,657 19,458 28,899 19,848 Weighted-average effect of dilutive securities 443 — 814 — 568 — 557 — Weighted-average common shares outstanding, diluted 30,171 19,374 29,770 19,848 30,225 19,458 29,456 19,848 Earnings per share - diluted $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.23 $ 0.23 $ 0.39 $ 0.39 Listed below are the shares excluded from the denominator in the preceding computation of diluted earnings per share for CRD-A because their inclusion would have been antidilutive: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Shares underlying stock options excluded 255 456 128 1,482 Performance stock grants excluded because performance conditions have not been met (1) 1,180 1,059 1,140 908 (1) Compensation cost is recognized for these performance stock grants based on expected achievement rates; however, no consideration is given to these performance stock grants when calculating diluted earnings per share until the performance measurements have been achieved. The following table details shares issued during the three and six months ended June 30, 2024 and 2023, including restricted shares that were returned prior to vesting. These shares are included from their dates of issuance in the weighted-average common shares used to compute basic and diluted earnings per share for CRD-A in the table above. There were no shares of CRD-B issued during any of these periods. Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, CRD-A issued under the Non-Employee Director Stock Plan ( 9 ) — 62 134 CRD-A issued under the U.K. ShareSave Scheme 124 52 124 52 CRD-A issued under the Employee Stock Purchase Plan — — 32 27 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 Re purchase 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. The Company's Board of Directors subsequently amended this authorization to allow for repurchases through December 31, 2024. Under the repurchase program, repurchases may be made through December 31, 2024 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 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. At June 30, 2024, there were 1,268,558 remaining shares authorized to repurchase under the 2021 Repurchase Authorization. During the six months ended June 30, 2024 , the Company did no t repurchase any shares o f CRD-A and repurchased 230,861 shares of CRD-B at an average cost of $ 8.98 . During the six months ended June 30, 2023 , the Company did no t repurchase any shares of CRD-A or CRD-B. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 8. Accumulated Other Comprehensive Loss Comprehensive (loss) income 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 the net realized (losses) gains from intra-entity loans that are long-term in nature of $( 2,000 ) and $ 820,000 for the three and six months ended June 30, 2024 . The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's unaudited condensed consolidated financial statements were as follows: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (in thousands) Foreign Retirement (1) AOCL Foreign Retirement AOCL Beginning balance $ ( 48,222 ) $ ( 166,570 ) $ ( 214,792 ) $ ( 49,486 ) $ ( 169,129 ) $ ( 218,615 ) Other comprehensive loss before reclassifications ( 2,116 ) — ( 2,116 ) ( 852 ) — ( 852 ) Amounts reclassified from accumulated other comprehensive income to net income — 2,506 2,506 — 5,065 5,065 Net current period other comprehensive (loss) income ( 2,116 ) 2,506 390 ( 852 ) 5,065 4,213 Ending balance $ ( 50,338 ) $ ( 164,064 ) $ ( 214,402 ) $ ( 50,338 ) $ ( 164,064 ) $ ( 214,402 ) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (in thousands) Foreign Retirement (1) AOCL Foreign Retirement (1) AOCL Beginning balance $ ( 44,849 ) $ ( 160,654 ) $ ( 205,503 ) $ ( 52,581 ) $ ( 162,740 ) $ ( 215,321 ) Other comprehensive (loss) income before reclassifications ( 1,990 ) — ( 1,990 ) 5,742 5,742 Amounts reclassified from accumulated other comprehensive income to net income — 2,653 2,653 4,739 4,739 Net current period other comprehensive (loss) income ( 1,990 ) 2,653 663 5,742 4,739 10,481 Ending balance $ ( 46,839 ) $ ( 158,001 ) $ ( 204,840 ) $ ( 46,839 ) $ ( 158,001 ) $ ( 204,840 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other Loss, net" in the Company's unaudited Condensed Consolidated Statements of Operations. See Note 6, "Defined Benefit Pension Plans" for additional details. The other comprehensive loss amounts attributable to noncontrolling interests presented in the Company's unaudited Condensed Consolidated Statements of Shareholders' Investment are foreign currency translation adjustments. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9. Fair Value Measurements The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Fair Value Measurements at June 30, 2024 Significant Other Significant Quoted Prices in Observable Unobservable Active Markets Inputs Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 10,983 $ 10,983 $ — $ — Liabilities: Contingent earnout liability (2) $ 4,561 $ — $ — $ 4,561 (1) The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included in the Company's unaudited Condensed Consolidated Balance Sheets as "Cash and cash equivalents." (2) The 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 updated quarterly based on changes to projections of acquire d entities over the respective earnout periods, which span multiple years. The Company recognized a pretax contingent earnout expense totaling $ 433,000 and $ 581,000 in the three months and six months ended June 30, 2024, respectively, related to the fair value adjustment of earnout liabilities. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of the contingent earnout agreement. Fair Value Disclosures There were no transfers of assets between fair value levels during the three and six months ended June 30, 2024. 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. Nonrecurring Fair Value Disclosures Goodwill is an asset that represents the excess of the purchase price over the fair value of the separately identifiable net assets (tangible and intangible) acquired in certain business combinations. Indefinite-lived intangible assets consist of trade names associated with acquired businesses. Goodwill and indefinite-lived intangible assets are not amortized but are subject to impairment testing at least annually. Other long-lived assets consist primarily of property and equipment, 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. Goodwill is tested for impairment on October 1st of each year, or between annual impairment tests, if events or circumstances have occurred which indicate potential impairment of goodwill. When testing for impairment, the carrying value of each reporting unit, including goodwill, is compared with the estimated fair value of the respective reporting unit as determined utilizing a combination of the income and market approaches and is classified in Level 3 of the fair value hierarchy. There were no goodwill impairments in 2023. The Company did not identify any impairment indicators during the three months ended March 31, 2024 or June 30, 2024. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information The Company has four reportable segments consisting of North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. The Company's reportable segments are comprised of the following: • North America Loss Adjusting, which services the North American property and casualty market. This is comprised of Loss Adjusting operations in the U.S. and Canada, including Global Technical Services and edjuster. The Canadian operations include all operations within that country including third party administration and Contractor Connection. • International Operations, which services the global property and casualty market outside North America. This is comprised of Loss Adjusting operations in the U.K., Europe, Australia, Asia and Latin America, and includes Crawford Legal Services. International Operations includes all operations within the respective countries, including Loss Adjusting, Global Technical Services, Legal Services, third party administration, and where applicable, Contractor Connection services. • Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers in the U.S. • Platform Solutions, which consists of the Contractor Connection, Networks, and Subrogation service lines in the U.S. The Networks service line includes Catastrophe operations. The Platform Solutions reportable segment represents the aggregation of certain service line operating segments. Effective January 1, 2024, the Company combined the operating segments within North America Loss Adjusting and International Operations, and accordingly, there are no operating segments within these reportable segments to aggregate. Financial information for the three and six months ended June 30, 2024 and 2023 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Revenues: North America Loss Adjusting $ 76,030 $ 76,362 $ 153,395 $ 153,959 International Operations 102,283 95,312 200,375 187,175 Broadspire 97,087 87,244 191,385 171,298 Platform Solutions 38,827 65,638 70,726 128,458 Total segment revenues before reimbursements 314,227 324,556 615,881 640,890 Reimbursements 12,626 13,073 24,045 24,677 Total revenues $ 326,853 $ 337,629 $ 639,926 $ 665,567 Segment Operating Earnings: North America Loss Adjusting $ 4,885 $ 3,900 $ 9,364 $ 11,965 International Operations 5,702 3,742 7,392 6,777 Broadspire 15,091 8,148 27,895 16,075 Platform Solutions 1,469 8,106 2,584 18,072 Total segment operating earnings 27,147 23,896 47,235 52,889 Deduct: Unallocated corporate and shared costs, net ( 5,079 ) ( 1,098 ) ( 13,086 ) ( 5,217 ) Net corporate interest expense ( 4,256 ) ( 4,309 ) ( 7,852 ) ( 8,708 ) Stock option expense ( 139 ) ( 139 ) ( 306 ) ( 295 ) Amortization of acquisition-related intangible assets ( 1,856 ) ( 1,979 ) ( 3,724 ) ( 3,878 ) Contingent earnout adjustments ( 430 ) ( 725 ) ( 581 ) ( 973 ) Non-service pension costs ( 2,399 ) ( 2,095 ) ( 4,872 ) ( 4,266 ) Income before income taxes $ 12,988 $ 13,551 $ 16,814 $ 29,552 Operating earnings is the primary financial performance measure used by the Company's senior management and chief operating decision maker ("CODM") to evaluate the financial performance of the Company's operating segments and make resource allocation and certain compensation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate segment operating performance using the same criteria used by the Company's senior management and CODM. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represents segment earnings before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, non-service pension costs, income taxes, and net income or loss attributable to noncontrolling interests. Segment operating earnings includes allocations of certain corporate and shared costs. If the Company changes its allocation methods or changes the types of costs that are allocated to its four operating segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process. Intersegment transactions are not material for any period presented. Certain of the Company’s reportable segments represent the aggregation of certain business units which represent separate operating segments. Revenues before reimbursements by major service line in the International Operations, Broadspire and Platform Solutions segments are shown in the following table. The Company considers all North America Loss Adjusting revenues to be primarily derived from one service line. Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, International Operations International Loss Adjusting $ 95,441 $ 89,300 $ 187,806 $ 175,294 Crawford Legal Services 6,842 6,012 12,569 11,881 Total Revenues before Reimbursements--International Operations $ 102,283 $ 95,312 $ 200,375 $ 187,175 Broadspire Claims Management $ 49,858 $ 44,750 $ 98,256 $ 87,858 Medical Management 47,229 42,494 93,129 83,440 Total Revenues before Reimbursements--Broadspire $ 97,087 $ 87,244 $ 191,385 $ 171,298 Platform Solutions Contractor Connection $ 18,118 $ 19,797 $ 35,063 $ 39,098 Networks 13,373 38,464 21,116 75,867 Subrogation 7,336 7,377 14,547 13,493 Total Revenues before Reimbursements--Platform Solutions $ 38,827 $ 65,638 $ 70,726 $ 128,458 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies As part of the Company's credit facility, the Company maintains a letter of credit to satisfy certain of its own contractual requirements. On June 30, 2024 , the aggregate committed amount of letters of credit outstanding under the credit facility was $ 8,870,000 . In the normal course of its business, the Company is sometimes named as a defendant or responsible party in suits or other actions by insureds or claimants contesting decisions made by the Company or its clients with respect to the settlement of claims. Additionally, certain clients of the Company have in the past brought, and may, in the future bring, claims for indemnification on the basis of alleged actions by the Company, its agents, or its employees in rendering services to clients. The majority of these claims are of the type covered by insurance maintained by the Company. However, the Company is responsible for the deductibles and self-insured retentions under various insurance coverages. In the opinion of Company management, adequate provisions have been made for such known and foreseeable risks. However, given the inherent unpredictability of litigation and disputes related to these matters, it is possible an adverse outcome or settlement, if not covered by insurance, could have a material effect on the Company's results of operations, financial position, or cash flows. 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. In addition, the Company may on occasion be engaged in disputes with certain of its clients, vendors or other trading partners. Such claims, investigations, negotiations, 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. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 12. 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. Cash balances that are legally restricted as to usage or withdrawal are separately included in "Prepaid expenses and other current assets" within the Company's unaudited Condensed Consolidated Balance Sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company's unaudited Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown within the Company's unaudited Condensed Consolidated Statements of Cash Flows: (In thousands) June 30, 2024 December 31, 2023 June 30, 2023 December 31, 2022 Cash and cash equivalents $ 46,742 $ 58,363 $ 47,479 $ 46,007 Restricted cash within prepaid expenses and other current assets 1,601 1,182 974 638 Total cash, cash equivalents and restricted cash $ 48,343 $ 59,545 $ 48,453 $ 46,645 |
Client Funds
Client Funds | 6 Months Ended |
Jun. 30, 2024 | |
Client Funds [Abstract] | |
Client Funds | 13. Client Funds Th e 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 re corded in the accompanying unaudited Condensed Consolidated Balance Sheets. The amount of these funds totaled $ 554,110,000 a nd $ 494,329,000 at June 30, 2024 and December 31, 2023, respectively. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (the "SEC"). These unaudited condensed consolidated financial statements omit certain notes and other financial information and therefore, should be read in conjunction with the 2023 Form 10-K. The Condensed Consolidated Balance Sheet information presented herein as of December 31, 2023 has been derived from the audited consolidated financial statements as of that date. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Form 10-K for the year ended December 31, 2023. Due to the impact of weather activity and other macroeconomic uncertainties, the Company's operating results for the three and six months ended June 30, 2024 and financial position as of June 30, 2024 are not necessarily indicative of the results or financial position that may be expected for the year ending December 31, 2024 or for other future periods. The financial results from the Company's operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines, are reported and consolidated on a two-month delayed basis (fiscal year-end of October 31) as permitted by GAAP in order to provide sufficient time for accumulation of their results. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments (consisting only of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. There have been no material changes to our significant accounting policies and estimates from those disclosed in the Company's financial statements included in Form 10-K for the year ended December 31, 2023 other than as disclosed herein. |
Consolidation, Variable Interest Entity, Policy | The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and also considered a variable interest entity ("VIE") of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan. |
Consolidation Noncontrolling Interests | Noncontrolling interests represent the minority shareholders' share of the net income or loss and share holders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the unaudited Condensed Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. |
Earnings per Share | The Company computes earnings per share of its non-voting Class A Common Stock ("CRD-A") and voting Class B Common Stock ("CRD-B") using the two-class method, which allocates the undistributed earnings in each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on the CRD-A shares than on the CRD-B shares, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. During 2024 and 2023, the Board of Directors has declared the same dividend on CRD-A and CRD-B. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents North America Loss Adjusting revenues before reimbursements disaggregated by geography for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, U.S. $ 53,829 $ 51,972 $ 107,353 $ 104,955 Canada 22,201 24,390 46,042 49,004 Total North America Loss Adjusting Revenues before Reimbursements $ 76,030 $ 76,362 $ 153,395 $ 153,959 The following table presents International Operations revenues before reimbursements disaggregated by geography and service line for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, U.K. $ 38,490 $ 32,273 $ 76,389 $ 63,005 Europe 24,453 23,160 48,074 45,924 Australia 19,303 20,523 36,583 41,159 Asia 5,604 5,888 10,973 11,515 Latin America 7,591 7,456 15,787 13,691 International Loss Adjusting $ 95,441 $ 89,300 $ 187,806 $ 175,294 Crawford Legal Services $ 6,842 $ 6,012 $ 12,569 $ 11,881 Total International Operations Revenues before Reimbursements $ 102,283 $ 95,312 $ 200,375 $ 187,175 The following table presents Broadspire revenues before reimbursements disaggregated by service line for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Claims Management $ 49,858 $ 44,750 $ 98,256 $ 87,858 Medical Management 47,229 42,494 93,129 83,440 Total Broadspire Revenues before Reimbursements $ 97,087 $ 87,244 $ 191,385 $ 171,298 The following table presents Platform Solutions revenues before reimbursements disaggregated by service line for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Contractor Connection $ 18,118 $ 19,797 $ 35,063 $ 39,098 Networks 13,373 38,464 21,116 75,867 Subrogation 7,336 7,377 14,547 13,493 Total Platform Solutions Revenues before Reimbursements $ 38,827 $ 65,638 $ 70,726 $ 128,458 |
Schedule of Customer Contract Liabilities | The table below presents the deferred revenues balance as of January 1, 2024 and the significant activity affecting deferred revenues during the six months ended June 30, 2024: (In Thousands) Customer Contract Liabilities Deferred Balance at January 1, 2024 $ 60,411 Quarterly additions 24,919 Revenue recognized from the prior periods ( 15,358 ) Revenue recognized from current quarter additions ( 8,941 ) Balance as of March 31, 2024 $ 61,031 Quarterly additions 23,753 Revenue recognized from the prior periods ( 15,799 ) Revenue recognized from current quarter additions ( 9,024 ) Balance as of June 30, 2024 $ 59,961 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Net periodic cost related to all of the Company's defined benefit pension plans recognized in the Company's unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 included the following components: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Service cost $ 378 $ 356 $ 762 $ 713 Interest cost 5,734 5,983 11,480 11,922 Expected return on assets ( 6,414 ) ( 6,796 ) ( 12,823 ) ( 13,568 ) Amortization of actuarial loss 3,128 3,005 6,314 5,983 Net periodic cost $ 2,826 $ 2,548 $ 5,733 $ 5,050 |
Net Income Attributable to Sh_2
Net Income Attributable to Shareholders of Crawford & Company per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B Earnings per share - basic: Numerator: Allocation of undistributed earnings $ 3,116 $ 2,031 $ 3,262 $ 2,236 $ 2,742 $ 1,799 $ 7,857 $ 5,397 Dividends paid 2,081 1,356 1,738 1,191 4,155 2,725 3,472 2,382 Net income attributable to common shareholders, basic $ 5,197 $ 3,387 $ 5,000 $ 3,427 $ 6,897 $ 4,524 $ 11,329 $ 7,779 Denominator: Weighted-average common shares outstanding, basic 29,728 19,374 28,956 19,848 29,657 19,458 28,899 19,848 Earnings per share - basic $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.23 $ 0.23 $ 0.39 $ 0.39 |
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: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (in thousands, except per share amounts) CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B Earnings per share - diluted: Numerator: Allocation of undistributed earnings $ 3,134 $ 2,013 $ 3,299 $ 2,199 $ 2,763 $ 1,778 $ 7,918 $ 5,336 Dividends paid 2,081 1,356 1,738 1,191 4,155 2,725 3,472 2,382 Net income attributable to common shareholders, diluted $ 5,215 $ 3,369 $ 5,037 $ 3,390 $ 6,918 $ 4,503 $ 11,390 $ 7,718 Denominator: Weighted-average common shares outstanding, basic 29,728 19,374 28,956 19,848 29,657 19,458 28,899 19,848 Weighted-average effect of dilutive securities 443 — 814 — 568 — 557 — Weighted-average common shares outstanding, diluted 30,171 19,374 29,770 19,848 30,225 19,458 29,456 19,848 Earnings per share - diluted $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.23 $ 0.23 $ 0.39 $ 0.39 |
Schedule of Antidilutive Shares Excluded from Computation of Diluted Earnings per Share | Listed below are the shares excluded from the denominator in the preceding computation of diluted earnings per share for CRD-A because their inclusion would have been antidilutive: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Shares underlying stock options excluded 255 456 128 1,482 Performance stock grants excluded because performance conditions have not been met (1) 1,180 1,059 1,140 908 (1) Compensation cost is recognized for these performance stock grants based on expected achievement rates; however, no consideration is given to these performance stock grants when calculating diluted earnings per share until the performance measurements have been achieved. |
Schedule of Shares Issued and Included in Weighted-average Common Shares used to Compute Basic and Diluted Earnings per Share | The following table details shares issued during the three and six months ended June 30, 2024 and 2023, including restricted shares that were returned prior to vesting. These shares are included from their dates of issuance in the weighted-average common shares used to compute basic and diluted earnings per share for CRD-A in the table above. There were no shares of CRD-B issued during any of these periods. Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, CRD-A issued under the Non-Employee Director Stock Plan ( 9 ) — 62 134 CRD-A issued under the U.K. ShareSave Scheme 124 52 124 52 CRD-A issued under the Employee Stock Purchase Plan — — 32 27 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's unaudited condensed consolidated financial statements were as follows: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (in thousands) Foreign Retirement (1) AOCL Foreign Retirement AOCL Beginning balance $ ( 48,222 ) $ ( 166,570 ) $ ( 214,792 ) $ ( 49,486 ) $ ( 169,129 ) $ ( 218,615 ) Other comprehensive loss before reclassifications ( 2,116 ) — ( 2,116 ) ( 852 ) — ( 852 ) Amounts reclassified from accumulated other comprehensive income to net income — 2,506 2,506 — 5,065 5,065 Net current period other comprehensive (loss) income ( 2,116 ) 2,506 390 ( 852 ) 5,065 4,213 Ending balance $ ( 50,338 ) $ ( 164,064 ) $ ( 214,402 ) $ ( 50,338 ) $ ( 164,064 ) $ ( 214,402 ) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (in thousands) Foreign Retirement (1) AOCL Foreign Retirement (1) AOCL Beginning balance $ ( 44,849 ) $ ( 160,654 ) $ ( 205,503 ) $ ( 52,581 ) $ ( 162,740 ) $ ( 215,321 ) Other comprehensive (loss) income before reclassifications ( 1,990 ) — ( 1,990 ) 5,742 5,742 Amounts reclassified from accumulated other comprehensive income to net income — 2,653 2,653 4,739 4,739 Net current period other comprehensive (loss) income ( 1,990 ) 2,653 663 5,742 4,739 10,481 Ending balance $ ( 46,839 ) $ ( 158,001 ) $ ( 204,840 ) $ ( 46,839 ) $ ( 158,001 ) $ ( 204,840 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other Loss, net" in the Company's unaudited Condensed Consolidated Statements of Operations. See Note 6, "Defined Benefit Pension Plans" for additional details. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Fair Value Measurements at June 30, 2024 Significant Other Significant Quoted Prices in Observable Unobservable Active Markets Inputs Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 10,983 $ 10,983 $ — $ — Liabilities: Contingent earnout liability (2) $ 4,561 $ — $ — $ 4,561 (1) The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included in the Company's unaudited Condensed Consolidated Balance Sheets as "Cash and cash equivalents." (2) The 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 updated quarterly based on changes to projections of acquire d entities over the respective earnout periods, which span multiple years. The Company recognized a pretax contingent earnout expense totaling $ 433,000 and $ 581,000 in the three months and six months ended June 30, 2024, respectively, related to the fair value adjustment of earnout liabilities. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of the contingent earnout agreement. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Operating Profit from Segment operating earnings to income before income taxes | Financial information for the three and six months ended June 30, 2024 and 2023 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Revenues: North America Loss Adjusting $ 76,030 $ 76,362 $ 153,395 $ 153,959 International Operations 102,283 95,312 200,375 187,175 Broadspire 97,087 87,244 191,385 171,298 Platform Solutions 38,827 65,638 70,726 128,458 Total segment revenues before reimbursements 314,227 324,556 615,881 640,890 Reimbursements 12,626 13,073 24,045 24,677 Total revenues $ 326,853 $ 337,629 $ 639,926 $ 665,567 Segment Operating Earnings: North America Loss Adjusting $ 4,885 $ 3,900 $ 9,364 $ 11,965 International Operations 5,702 3,742 7,392 6,777 Broadspire 15,091 8,148 27,895 16,075 Platform Solutions 1,469 8,106 2,584 18,072 Total segment operating earnings 27,147 23,896 47,235 52,889 Deduct: Unallocated corporate and shared costs, net ( 5,079 ) ( 1,098 ) ( 13,086 ) ( 5,217 ) Net corporate interest expense ( 4,256 ) ( 4,309 ) ( 7,852 ) ( 8,708 ) Stock option expense ( 139 ) ( 139 ) ( 306 ) ( 295 ) Amortization of acquisition-related intangible assets ( 1,856 ) ( 1,979 ) ( 3,724 ) ( 3,878 ) Contingent earnout adjustments ( 430 ) ( 725 ) ( 581 ) ( 973 ) Non-service pension costs ( 2,399 ) ( 2,095 ) ( 4,872 ) ( 4,266 ) Income before income taxes $ 12,988 $ 13,551 $ 16,814 $ 29,552 |
Schedule of Revenues By Major Service Line | Revenues before reimbursements by major service line in the International Operations, Broadspire and Platform Solutions segments are shown in the following table. The Company considers all North America Loss Adjusting revenues to be primarily derived from one service line. Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, International Operations International Loss Adjusting $ 95,441 $ 89,300 $ 187,806 $ 175,294 Crawford Legal Services 6,842 6,012 12,569 11,881 Total Revenues before Reimbursements--International Operations $ 102,283 $ 95,312 $ 200,375 $ 187,175 Broadspire Claims Management $ 49,858 $ 44,750 $ 98,256 $ 87,858 Medical Management 47,229 42,494 93,129 83,440 Total Revenues before Reimbursements--Broadspire $ 97,087 $ 87,244 $ 191,385 $ 171,298 Platform Solutions Contractor Connection $ 18,118 $ 19,797 $ 35,063 $ 39,098 Networks 13,373 38,464 21,116 75,867 Subrogation 7,336 7,377 14,547 13,493 Total Revenues before Reimbursements--Platform Solutions $ 38,827 $ 65,638 $ 70,726 $ 128,458 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [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 Company's unaudited Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown within the Company's unaudited Condensed Consolidated Statements of Cash Flows: (In thousands) June 30, 2024 December 31, 2023 June 30, 2023 December 31, 2022 Cash and cash equivalents $ 46,742 $ 58,363 $ 47,479 $ 46,007 Restricted cash within prepaid expenses and other current assets 1,601 1,182 974 638 Total cash, cash equivalents and restricted cash $ 48,343 $ 59,545 $ 48,453 $ 46,645 |
Basis of Presentation - VIE - A
Basis of Presentation - VIE - Additional Information (Details) - Primary Beneficiary - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Interest Entity | ||
Liabilities of the deferred compensation plan | $ 6,414,000 | $ 6,261,000 |
Assets held in the related rabbi trust | $ 10,313,000 | $ 10,237,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable, days sales outstanding | 2 months | |
Billing after contract completion, years | 1 year | |
Revenue, remaining performance obligation | $ 108,800,000 | |
Amount of performance obligation percentage intend to recognize within next year | 73% | |
Revenue from contracts with customers, practical expedient, consideration adjustment period | 1 year | |
Accounts payable days payable outstanding | 1 year | |
Lifetime Claim | ||
Disaggregation of Revenue [Line Items] | ||
Deferred Revenue | $ 40,123,000 | $ 39,800,000 |
Maximum | Broadspire | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers, performance obligation term | 2 years | |
Claims Management Services | ||
Disaggregation of Revenue [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 | |
Percentage of closed cases | 99% | |
Revenue from contracts with customers, duration, average time to close case from time of referral | 5 years | |
Claims Management Services | Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers, performance obligation term | 1 year | |
Claims Management Services | Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers, performance obligation term | 2 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 326,853 | $ 337,629 | $ 639,926 | $ 665,567 |
North America Loss Adjusting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 76,030 | 76,362 | 153,395 | 153,959 |
North America Loss Adjusting | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 53,829 | 51,972 | 107,353 | 104,955 |
North America Loss Adjusting | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,201 | 24,390 | 46,042 | 49,004 |
International Loss Adjusting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 95,441 | 89,300 | 187,806 | 175,294 |
International Loss Adjusting | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 38,490 | 32,273 | 76,389 | 63,005 |
International Loss Adjusting | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,453 | 23,160 | 48,074 | 45,924 |
International Loss Adjusting | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 19,303 | 20,523 | 36,583 | 41,159 |
International Loss Adjusting | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,604 | 5,888 | 10,973 | 11,515 |
International Loss Adjusting | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,591 | 7,456 | 15,787 | 13,691 |
Crawford Legal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,842 | 6,012 | 12,569 | 11,881 |
International Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 102,283 | 95,312 | 200,375 | 187,175 |
Broadspire | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 97,087 | 87,244 | 191,385 | 171,298 |
Platform Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 38,827 | 65,638 | 70,726 | 128,458 |
Claims Management | Broadspire | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 49,858 | 44,750 | 98,256 | 87,858 |
Medical Management | Broadspire | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 47,229 | 42,494 | 93,129 | 83,440 |
Contractor Connection | Platform Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,118 | 19,797 | 35,063 | 39,098 |
Networks | Platform Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,373 | 38,464 | 21,116 | 75,867 |
Subrogation | Platform Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 7,336 | $ 7,377 | $ 14,547 | $ 13,493 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Customer Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Customer Contract Liabilities | ||
Beginning balance | $ 61,031 | $ 60,411 |
Quarterly additions | 23,753 | 24,919 |
Revenue recognized from the prior periods | (15,799) | (15,358) |
Revenue recognized from current quarter additions | (9,024) | (8,941) |
Ending balance | $ 59,961 | $ 61,031 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for Income Taxes | $ 4,486,000 | $ 5,206,000 | $ 5,533,000 | $ 10,477,000 |
Effective income tax rate reconciliation, percent | 34.50% | 38.40% | 32.90% | 35.50% |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Schedule of Defined Benefit Plans Disclosures (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 378 | $ 356 | $ 762 | $ 713 |
Interest cost | 5,734 | 5,983 | 11,480 | 11,922 |
Expected return on assets | (6,414) | (6,796) | (12,823) | (13,568) |
Amortization of actuarial loss | 3,128 | 3,005 | 6,314 | 5,983 |
Net periodic cost | $ 2,826 | $ 2,548 | $ 5,733 | $ 5,050 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost, non-service cost | $ 2,448,000 | $ 2,192,000 | $ 4,971,000 | $ 4,337,000 |
Contributions by employer | 0 | 0 | ||
U.K. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | $ 1,205,000 | $ 1,025,000 |
Net Income Attributable to Sh_3
Net Income Attributable to Shareholders of Crawford & Company per Common 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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class A Non-Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 3,116 | $ 3,262 | $ 2,742 | $ 7,857 |
Dividends paid | 2,081 | 1,738 | 4,155 | 3,472 |
Net income attributable to common shareholders, basic | $ 5,197 | $ 5,000 | $ 6,897 | $ 11,329 |
Denominator: | ||||
Weighted-average common shares outstanding, basic | 29,728 | 28,956 | 29,657 | 28,899 |
Earnings per share - basic | $ 0.17 | $ 0.17 | $ 0.23 | $ 0.39 |
Class B Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 2,031 | $ 2,236 | $ 1,799 | $ 5,397 |
Dividends paid | 1,356 | 1,191 | 2,725 | 2,382 |
Net income attributable to common shareholders, basic | $ 3,387 | $ 3,427 | $ 4,524 | $ 7,779 |
Denominator: | ||||
Weighted-average common shares outstanding, basic | 19,374 | 19,848 | 19,458 | 19,848 |
Earnings per share - basic | $ 0.17 | $ 0.17 | $ 0.23 | $ 0.39 |
Net Income Attributable to Sh_4
Net Income Attributable to Shareholders of Crawford & Company per Common Share - Schedule of Computations of Diluted Net Income Attributable to Shareholders of Crawford & Company per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class A Non-Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 3,134 | $ 3,299 | $ 2,763 | $ 7,918 |
Dividends paid | 2,081 | 1,738 | 4,155 | 3,472 |
Net income attributable to common shareholders, diluted | $ 5,215 | $ 5,037 | $ 6,918 | $ 11,390 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 29,728 | 28,956 | 29,657 | 28,899 |
Weighted-average effect of dilutive securities | 443 | 814 | 568 | 557 |
Weighted-average common shares outstanding, diluted | 30,171 | 29,770 | 30,225 | 29,456 |
Earnings per share - diluted | $ 0.17 | $ 0.17 | $ 0.23 | $ 0.39 |
Class B Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 2,013 | $ 2,199 | $ 1,778 | $ 5,336 |
Dividends paid | 1,356 | 1,191 | 2,725 | 2,382 |
Net income attributable to common shareholders, diluted | $ 3,369 | $ 3,390 | $ 4,503 | $ 7,718 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 19,374 | 19,848 | 19,458 | 19,848 |
Weighted-average effect of dilutive securities | 0 | 0 | 0 | 0 |
Weighted-average common shares outstanding, diluted | 19,374 | 19,848 | 19,458 | 19,848 |
Earnings per share - diluted | $ 0.17 | $ 0.17 | $ 0.23 | $ 0.39 |
Net Income Attributable to Sh_5
Net Income Attributable to Shareholders of Crawford & Company per Common Share - Schedule of Antidilutive Shares Excluded from Computation of Diluted Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Performance Stock Grants Excluded because Performance Conditions Have Not Been Met | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Shares underlying stock options excluded | [1] | 1,180 | 1,059 | 1,140 | 908 |
Employee Stock Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Shares underlying stock options excluded | 255 | 456 | 128 | 1,482 | |
[1] Compensation cost is recognized for these performance stock grants based on expected achievement rates; however, no consideration is given to these performance stock grants when calculating diluted earnings per share until the performance measurements have been achieved. |
Net Income Attributable to Sh_6
Net Income Attributable to Shareholders of Crawford & Company per Common Share - Schedule of Shares Issued and Included in Weighted-average Common Shares used to Compute Basic and Diluted Earnings per Share (Details) - Class A Non-Voting - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CRD-A Issued under the Non-Employee Director Stock Plan | ||||
Share-based Compensation Arrangement | ||||
Shares issued repurchased activity | (9) | 0 | 62 | 134 |
CRD-A Issued under the U.K. ShareSave Scheme | ||||
Share-based Compensation Arrangement | ||||
Shares issued repurchased activity | 124 | 52 | 124 | 52 |
CRD-A issued under the Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement | ||||
Shares issued repurchased activity | 0 | 0 | 32 | 27 |
Net Income Attributable to Sh_7
Net Income Attributable to Shareholders of Crawford & Company per Common Share - Additional Information (Details) - $ / shares | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Feb. 10, 2022 | Nov. 04, 2021 | |
Equity, Class of Treasury Stock | ||||
Number of shares authorized to be repurchased (shares) | 5,000,000 | |||
Number of shares remaining to be repurchased (shares) | 1,268,558 | |||
Class A Non-Voting | ||||
Equity, Class of Treasury Stock | ||||
Shares repurchased (shares) | 0 | 0 | ||
Class B Voting | ||||
Equity, Class of Treasury Stock | ||||
Shares repurchased (shares) | 230,861 | 0 | ||
Average cost (USD per share) | $ 8.98 | |||
Repurchase Authorization 2021 | Common Stock | ||||
Equity, Class of Treasury Stock | ||||
Number of shares authorized to be repurchased (shares) | 2,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Adjustment for long-term intercompany transactions, net of tax | $ (2,000) | $ 820,000 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | $ 143,238 | $ 141,827 | $ 139,831 | [1] | $ 123,378 | |
Ending balance | 149,707 | 149,895 | 149,707 | 149,895 | ||
Foreign Currency Translation Adjustments | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | (48,222) | (44,849) | (49,486) | (52,581) | ||
Other comprehensive loss before reclassifications | (2,116) | (1,990) | (852) | 5,742 | ||
Amounts reclassified from accumulated other comprehensive income to net income | 0 | 0 | ||||
Net current period other comprehensive (loss) income | (2,116) | (1,990) | (852) | 5,742 | ||
Ending balance | (50,338) | (46,839) | (50,338) | (46,839) | ||
Retirement Liabilities | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | [2] | (166,570) | (160,654) | (169,129) | (162,740) | |
Other comprehensive loss before reclassifications | [2] | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income to net income | [2] | 2,506 | 2,653 | 5,065 | 4,739 | |
Net current period other comprehensive (loss) income | [2] | 2,506 | 2,653 | 5,065 | 4,739 | |
Ending balance | [2] | (164,064) | (158,001) | (164,064) | (158,001) | |
AOCL attributable to shareholders of Crawford & Company | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | (214,792) | (205,503) | (218,615) | (215,321) | ||
Other comprehensive loss before reclassifications | (2,116) | (1,990) | (852) | 5,742 | ||
Amounts reclassified from accumulated other comprehensive income to net income | 2,506 | 2,653 | 5,065 | 4,739 | ||
Net current period other comprehensive (loss) income | 390 | 663 | 4,213 | 10,481 | ||
Ending balance | $ (214,402) | $ (204,840) | $ (214,402) | $ (204,840) | ||
[1] Derived from the audited Consolidated Balance Sheet (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other Loss, net" in the Company's unaudited Condensed Consolidated Statements of Operations. See Note 6, "Defined Benefit Pension Plans" for additional details. |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Liabilities: | |
Contingent earnout liability | $ 4,561 |
Quoted Prices in Active Markets (Level 1) | |
Liabilities: | |
Contingent earnout liability | 0 |
Significant Other Observable Inputs (Level 2) | |
Liabilities: | |
Contingent earnout liability | 0 |
Significant Unobservable Inputs (Level 3) | |
Liabilities: | |
Contingent earnout liability | 4,561 |
Money Market Funds | |
ASSETS | |
Money market funds | 10,983 |
Money Market Funds | Quoted Prices in Active Markets (Level 1) | |
ASSETS | |
Money market funds | 10,983 |
Money Market Funds | Significant Other Observable Inputs (Level 2) | |
ASSETS | |
Money market funds | 0 |
Money Market Funds | Significant Unobservable Inputs (Level 3) | |
ASSETS | |
Money market funds | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | ||
Pretax Contingent Earnout Expense | $ 433,000 | $ 581,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Liabilities: | ||
Transfers of assets measured on a recurring basis into Level 3 | $ 0 | $ 0 |
Transfers of assets measured on a recurring basis out Level 3 | 0 | 0 |
Transfers of assets measured on a recurring basis out of Level 1 into Level 2 | 0 | 0 |
Transfers of assets measured on a recurring basis out of Level 2 into Level 1 | $ 0 | $ 0 |
Debt instrument, variable interest rate duration between resets | 90 days |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Profit from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | $ 326,853 | $ 337,629 | $ 639,926 | $ 665,567 |
Net corporate interest expense | (4,256) | (4,309) | (7,852) | (8,708) |
Contingent earnout adjustments | (581) | (973) | ||
Income Before Income Taxes | 12,988 | 13,551 | 16,814 | 29,552 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Total segment operating earnings | 27,147 | 23,896 | 47,235 | 52,889 |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Unallocated corporate and shared costs, net | (5,079) | (1,098) | (13,086) | (5,217) |
Net corporate interest expense | (4,256) | (4,309) | (7,852) | (8,708) |
Stock option expense | (139) | (139) | (306) | (295) |
Amortization of acquisition-related intangible assets | (1,856) | (1,979) | (3,724) | (3,878) |
Contingent earnout adjustments | (430) | (725) | (581) | (973) |
Non-service pension costs | (2,399) | (2,095) | (4,872) | (4,266) |
Income Before Income Taxes | 12,988 | 13,551 | 16,814 | 29,552 |
North America Loss Adjusting | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 76,030 | 76,362 | 153,395 | 153,959 |
North America Loss Adjusting | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 76,030 | 76,362 | 153,395 | 153,959 |
International Operations | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 102,283 | 95,312 | 200,375 | 187,175 |
International Operations | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Total segment operating earnings | 5,702 | 3,742 | 7,392 | 6,777 |
Broadspire | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 97,087 | 87,244 | 191,385 | 171,298 |
Broadspire | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Total segment operating earnings | 15,091 | 8,148 | 27,895 | 16,075 |
Platform Solutions | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 38,827 | 65,638 | 70,726 | 128,458 |
Platform Solutions | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 38,827 | 65,638 | 70,726 | 128,458 |
Service | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 314,227 | 324,556 | 615,881 | 640,890 |
Service | North America Loss Adjusting | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Total segment operating earnings | 4,885 | 3,900 | 9,364 | 11,965 |
Service | International Operations | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 102,283 | 95,312 | 200,375 | 187,175 |
Service | International Operations | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 102,283 | 95,312 | 200,375 | 187,175 |
Service | Broadspire | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 97,087 | 87,244 | 191,385 | 171,298 |
Service | Broadspire | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 97,087 | 87,244 | 191,385 | 171,298 |
Service | Platform Solutions | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | 38,827 | 65,638 | 70,726 | 128,458 |
Service | Platform Solutions | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Total segment operating earnings | 1,469 | 8,106 | 2,584 | 18,072 |
Reimbursements | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | ||||
Revenues | $ 12,626 | $ 13,073 | $ 24,045 | $ 24,677 |
Segment Information - Schedule
Segment Information - Schedule of Revenues By Major Service Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from External Customer | ||||
Revenues | $ 326,853 | $ 337,629 | $ 639,926 | $ 665,567 |
International Operations | ||||
Revenue from External Customer | ||||
Revenues | 102,283 | 95,312 | 200,375 | 187,175 |
Broadspire | ||||
Revenue from External Customer | ||||
Revenues | 97,087 | 87,244 | 191,385 | 171,298 |
Platform Solutions | ||||
Revenue from External Customer | ||||
Revenues | 38,827 | 65,638 | 70,726 | 128,458 |
International Loss Adjusting | International Operations | ||||
Revenue from External Customer | ||||
Revenues | 95,441 | 89,300 | 187,806 | 175,294 |
Crawford Legal Services | International Operations | ||||
Revenue from External Customer | ||||
Revenues | 6,842 | 6,012 | 12,569 | 11,881 |
Claims Management | Broadspire | ||||
Revenue from External Customer | ||||
Revenues | 49,858 | 44,750 | 98,256 | 87,858 |
Medical Management | Broadspire | ||||
Revenue from External Customer | ||||
Revenues | 47,229 | 42,494 | 93,129 | 83,440 |
Service | ||||
Revenue from External Customer | ||||
Revenues | 314,227 | 324,556 | 615,881 | 640,890 |
Service | International Operations | ||||
Revenue from External Customer | ||||
Revenues | 102,283 | 95,312 | 200,375 | 187,175 |
Service | Broadspire | ||||
Revenue from External Customer | ||||
Revenues | 97,087 | 87,244 | 191,385 | 171,298 |
Service | Platform Solutions | ||||
Revenue from External Customer | ||||
Revenues | 38,827 | 65,638 | 70,726 | 128,458 |
Contractor Connection | Platform Solutions | ||||
Revenue from External Customer | ||||
Revenues | 18,118 | 19,797 | 35,063 | 39,098 |
Networks | Platform Solutions | ||||
Revenue from External Customer | ||||
Revenues | 13,373 | 38,464 | 21,116 | 75,867 |
Subrogation | Platform Solutions | ||||
Revenue from External Customer | ||||
Revenues | $ 7,336 | $ 7,377 | $ 14,547 | $ 13,493 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Jun. 30, 2024 USD ($) |
Letter of credit subcommitment | |
Loss Contingencies [Line Items] | |
Letters of credit outstanding amount | $ 8,870,000 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | $ 46,742 | $ 58,363 | [1] | $ 47,479 | $ 46,007 |
Restricted Cash and Cash Equivalents, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | |
Restricted Cash and Cash Equivalents | $ 1,601 | $ 1,182 | $ 974 | $ 638 | |
Total cash, cash equivalents and restricted cash | $ 48,343 | $ 59,545 | $ 48,453 | $ 46,645 | |
[1] Derived from the audited Consolidated Balance Sheet |
Client Funds - Additional Infor
Client Funds - Additional Information (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Custodial | ||
Funds Held for Clients [Line Items] | ||
Funds held for clients | $ 554,110,000 | $ 494,329,000 |