Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
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 | 2Q | |
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 | 30,644,984 | |
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 | 22,510,144 | |
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, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Revenues | $ 261,669 | $ 265,842 | $ 750,590 | $ 790,065 |
Costs and Expenses: | ||||
Cost of services | 185,606 | 192,014 | 543,782 | 565,113 |
Selling, general, and administrative expenses | 52,065 | 52,564 | 163,327 | 171,407 |
Corporate interest expense, net of interest income | 1,599 | 3,162 | 6,275 | 8,346 |
Goodwill impairment | 17,674 | 0 | ||
Restructuring costs | 5,714 | |||
Arbitration and claim settlements | 1,200 | 12,552 | ||
Gain on disposition of businesses, net | (14,104) | (13,763) | 0 | |
Total Costs and Expenses | 225,166 | 248,940 | 723,009 | 757,418 |
Other Expense, net | (65) | (883) | (355) | (2,443) |
Income Before Income Taxes | 36,438 | 16,019 | 27,226 | 30,204 |
Provision for Income Taxes | 11,729 | 5,328 | 9,554 | 11,120 |
Net Income | 24,709 | 10,691 | 17,672 | 19,084 |
Net (Income) Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests | (312) | 355 | 1,224 | 713 |
Net Income Attributable to Shareholders of Crawford & Company | $ 24,397 | $ 11,046 | $ 18,896 | $ 19,797 |
Class A Non-Voting | ||||
Earnings Per Share - Basic: | ||||
Earnings per share - basic | $ 0.46 | $ 0.22 | $ 0.36 | $ 0.39 |
Earnings Per Share - Diluted: | ||||
Earnings per share - diluted | $ 0.46 | $ 0.21 | $ 0.36 | $ 0.39 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 30,643 | 30,645 | 30,575 | 30,701 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, diluted | 30,937 | 31,140 | 30,810 | 31,116 |
Class B Voting | ||||
Earnings Per Share - Basic: | ||||
Earnings per share - basic | $ 0.46 | $ 0.19 | $ 0.34 | $ 0.33 |
Earnings Per Share - Diluted: | ||||
Earnings per share - diluted | $ 0.46 | $ 0.19 | $ 0.34 | $ 0.33 |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 22,510 | 22,831 | 22,533 | 23,071 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, diluted | 22,510 | 22,831 | 22,533 | 23,071 |
Service | ||||
Revenues: | ||||
Revenues | $ 253,124 | $ 254,677 | $ 725,071 | $ 758,616 |
Costs and Expenses: | ||||
Cost of services | 177,061 | 180,849 | 518,263 | 533,664 |
Reimbursements | ||||
Revenues: | ||||
Revenues | 8,545 | 11,165 | 25,519 | 31,449 |
Costs and Expenses: | ||||
Cost of services | $ 8,545 | $ 11,165 | $ 25,519 | $ 31,449 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Interest income | $ 98 | $ 0 | $ 131 | $ 539 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income | $ 24,709 | $ 10,691 | $ 17,672 | $ 19,084 |
Other Comprehensive Income (Loss): | ||||
Net foreign currency translation gain (loss), net of tax of $0 and $0, respectively | 11,845 | (3,017) | 5,152 | (2,621) |
Amortization of actuarial losses for retirement plans included in net periodic pension cost, net of tax of $676, $673, $1,977, and $2,024 respectively | 2,036 | 1,984 | 5,849 | 5,976 |
Other Comprehensive Income (Loss) | 13,881 | (1,033) | 11,001 | 3,355 |
Comprehensive (Loss) Income | 38,590 | 9,658 | 28,673 | 22,439 |
Comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (247) | 900 | 1,665 | 1,684 |
Comprehensive (Loss) Income Attributable to Shareholders of Crawford & Company | $ 38,343 | $ 10,558 | $ 30,338 | $ 24,123 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Loss) Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
OCI, Tax on foreign currency translation gains (losses) | $ 0 | $ 0 | $ 0 | $ 0 |
OCI, Tax on amortization of actuarial losses on retirement plans included in net periodic pension cost | $ 676 | $ 673 | $ 1,977 | $ 2,024 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets Unaudited - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | [1] |
Current Assets: | |||
Cash and cash equivalents | $ 48,739,000 | $ 51,802,000 | |
Accounts receivable, less allowance for doubtful accounts of $9,476 and $9,348, respectively | 123,563,000 | 128,217,000 | |
Unbilled revenues, at estimated billable amounts | 106,610,000 | 103,894,000 | |
Income taxes receivable | 7,820,000 | 7,820,000 | |
Prepaid expenses and other current assets | 26,641,000 | 23,476,000 | |
Total Current Assets | 313,373,000 | 315,209,000 | |
Net Property and Equipment | 34,160,000 | 31,425,000 | |
Other Assets: | |||
Operating lease right-of-use assets, net | 107,956,000 | 102,354,000 | |
Goodwill | 61,151,000 | 80,642,000 | |
Intangible assets arising from business acquisitions, net | 66,223,000 | 75,083,000 | |
Capitalized software costs, net | 64,130,000 | 66,445,000 | |
Deferred income tax assets | 18,107,000 | 17,971,000 | |
Other noncurrent assets | 74,522,000 | 70,884,000 | |
Total Other Assets | 392,089,000 | 413,379,000 | |
TOTAL ASSETS | 739,622,000 | 760,013,000 | |
Current Liabilities: | |||
Short-term borrowings | 3,028,000 | 28,531,000 | |
Accounts payable | 33,592,000 | 34,377,000 | |
Accrued compensation and related costs | 74,681,000 | 68,499,000 | |
Self-insured risks | 9,941,000 | 11,311,000 | |
Income taxes payable | 7,022,000 | 3,030,000 | |
Operating lease liabilities | 31,918,000 | 30,765,000 | |
Other accrued liabilities | 34,117,000 | 31,449,000 | |
Deferred revenues | 27,129,000 | 28,288,000 | |
Current installments of finance leases | 49,000 | 15,000 | |
Total Current Liabilities | 221,477,000 | 236,265,000 | |
Noncurrent Liabilities: | |||
Long-term debt and finance leases, less current installments | 124,684,000 | 148,408,000 | |
Operating lease liabilities | 91,963,000 | 87,064,000 | |
Deferred revenues | 23,921,000 | 24,080,000 | |
Accrued pension liabilities | 56,542,000 | 65,909,000 | |
Other noncurrent liabilities | 38,749,000 | 33,410,000 | |
Total Noncurrent Liabilities | 335,859,000 | 358,871,000 | |
Redeemable Noncontrolling Interests | 0 | 2,310,000 | |
Shareholders' Investment: | |||
Additional paid-in capital | 66,339,000 | 63,392,000 | |
Retained earnings | 258,504,000 | 249,551,000 | |
Accumulated other comprehensive loss | (195,002,000) | (206,907,000) | |
Shareholders' Investment Attributable to Shareholders of Crawford & Company | 182,996,000 | 159,317,000 | |
Noncontrolling interests | (710,000) | 3,250,000 | |
Total Shareholders' Investment | 182,286,000 | 162,567,000 | |
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 739,622,000 | 760,013,000 | |
Class A Non-Voting | |||
Shareholders' Investment: | |||
Common stock outstanding, value | 30,645,000 | 30,610,000 | |
Class B Voting | |||
Shareholders' Investment: | |||
Common stock outstanding, value | $ 22,510,000 | $ 22,671,000 | |
[1] | Derived from the audited Consolidated Balance Sheet |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Unaudited (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | [1] |
Current Assets: | |||
Allowance for doubtful accounts | $ 9,476 | $ 9,348 | |
Class A Non-Voting | |||
Shareholders' Investment: | |||
Par or stated value per share (USD per share) | $ 1 | $ 1 | |
Shares authorized (shares) | 50,000,000 | 50,000,000 | |
Shares issued (shares) | 30,645,000 | 30,610,000 | |
Shares outstanding (shares) | 30,645,000 | 30,610,000 | |
Class B Voting | |||
Shareholders' Investment: | |||
Par or stated value per share (USD per share) | $ 1 | $ 1 | |
Shares authorized (shares) | 50,000,000 | 50,000,000 | |
Shares issued (shares) | 22,510,000 | 22,671,000 | |
Shares outstanding (shares) | 22,510,000 | 22,671,000 | |
[1] | Derived from the audited Consolidated Balance Sheet |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows Unaudited - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows From Operating Activities: | ||
Net income | $ 17,672 | $ 19,084 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 30,150 | 30,086 |
Goodwill impairment | 17,674 | 0 |
Gain on disposition of businesses, net | (13,763) | 0 |
Stock-based compensation | 2,732 | 2,610 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 485 | 1,108 |
Unbilled revenues, net | (9,223) | (8,740) |
Accrued or prepaid income taxes | 2,462 | 443 |
Accounts payable and accrued liabilities | 16,097 | (4,361) |
Deferred revenues | (1,491) | 514 |
Accrued retirement costs | (6,101) | 1,545 |
Prepaid expenses and other operating activities | 622 | 36 |
Net cash provided by operating activities | 57,316 | 42,325 |
Cash Flows From Investing Activities: | ||
Acquisitions of property and equipment | (10,850) | (5,664) |
Capitalization of computer software costs | (12,793) | (7,276) |
Cash proceeds from disposition of business, net of cash disposed | 19,273 | 0 |
Payments for business acquisitions, net of cash acquired | 0 | (2,296) |
Net cash used in investing activities | (4,370) | (15,236) |
Cash Flows From Financing Activities: | ||
Cash dividends paid | (6,986) | (9,894) |
Proceeds from shares purchased under employee stock-based compensation plans | 811 | 1,909 |
Repurchases of common stock | (2,666) | (25,673) |
Increases in revolving credit facility borrowings | 76,876 | 65,449 |
Payments on revolving credit facility borrowings | (124,454) | (64,962) |
Payments on finance lease obligations | (33) | (106) |
Cash paid for equity investments | (603) | 0 |
Dividends paid to noncontrolling interests | (196) | (458) |
Net cash used in financing activities | (57,251) | (33,735) |
Effects of exchange rate changes on cash and cash equivalents | 1,242 | (372) |
Decrease in cash and cash equivalents | (3,063) | (7,018) |
Cash and cash equivalents at beginning of year | 51,802 | 53,119 |
Cash and cash equivalents at end of period | $ 48,739 | $ 46,101 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Shareholders' Investment Unaudited - USD ($) $ in Thousands | Jan. 01, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | $ 162,567 | [1] | $ 149,620 | $ 143,801 | $ 162,567 | [1] | $ 164,399 | $ 166,508 | $ 175,446 | $ 162,567 | [1] | $ 175,446 | |||||
Net income (loss) | 24,709 | [2] | 6,379 | [2] | (11,279) | [2] | 10,962 | [3] | 2,630 | [3] | 6,146 | [3] | |||||
Other comprehensive income (loss) | 13,881 | (1,336) | (1,544) | (1,033) | (669) | 5,057 | 11,001 | 3,355 | |||||||||
Cash dividends paid | (2,323) | (1,591) | (3,268) | (3,299) | (3,509) | (3,366) | |||||||||||
Stock-based compensation | 734 | 1,118 | 880 | 1,211 | 1,646 | (247) | |||||||||||
Repurchases of common stock | (2,666) | (6,088) | (3,167) | (16,418) | |||||||||||||
Shares issued in connection with stock-based compensation plans, net | 801 | 10 | 1,059 | 960 | (110) | ||||||||||||
Increase (Decrease) value of noncontrolling interest due to dispositions and acquisition | (5,136) | 1,249 | (292) | ||||||||||||||
Dividends paid to noncontrolling interests | (178) | ||||||||||||||||
Ending balance | 182,286 | 149,620 | 143,801 | 167,033 | 164,399 | 166,508 | 182,286 | 167,033 | |||||||||
Adoption of Topic 326 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | (607) | ||||||||||||||||
Ending balance | $ (607) | ||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||||||||
Common Stock | Class A Non-Voting | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | 30,610 | 30,523 | 30,519 | $ 30,610 | 30,667 | 30,621 | 30,927 | 30,610 | 30,927 | ||||||||
Repurchases of common stock | (155) | (402) | (280) | (421) | |||||||||||||
Shares issued in connection with stock-based compensation plans, net | 122 | 4 | 64 | 155 | 326 | 115 | |||||||||||
Ending balance | 30,645 | 30,523 | 30,519 | 30,420 | 30,667 | 30,621 | 30,645 | 30,420 | |||||||||
Common Stock | Class B Voting | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | 22,671 | 22,510 | 22,510 | 22,671 | 22,958 | 23,031 | 24,408 | 22,671 | 24,408 | ||||||||
Repurchases of common stock | (161) | (231) | (73) | (1,377) | |||||||||||||
Ending balance | 22,510 | 22,510 | 22,510 | 22,727 | 22,958 | 23,031 | 22,510 | 22,727 | |||||||||
Additional Paid-In Capital | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | 63,392 | 65,063 | 63,949 | 63,392 | 60,601 | 58,321 | 58,793 | 63,392 | 58,793 | ||||||||
Stock-based compensation | 734 | 1,118 | 880 | 1,211 | 1,646 | (247) | |||||||||||
Shares issued in connection with stock-based compensation plans, net | 679 | (4) | (54) | 904 | 634 | (225) | |||||||||||
Increase (Decrease) value of noncontrolling interest due to dispositions and acquisition | (137) | (269) | |||||||||||||||
Ending balance | 66,339 | 65,063 | 63,949 | 62,716 | 60,601 | 58,321 | 66,339 | 62,716 | |||||||||
Retained Earnings | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | $ 249,551 | 236,234 | 231,927 | 249,551 | 258,329 | 261,814 | 273,607 | 249,551 | 273,607 | ||||||||
Net income (loss) | 24,397 | [2] | 5,898 | [2] | (11,399) | [2] | 11,046 | [3] | 2,642 | [3] | 6,109 | [3] | |||||
Cash dividends paid | (2,127) | (1,591) | (3,268) | (3,299) | (3,313) | (3,282) | |||||||||||
Repurchases of common stock | (2,350) | (5,455) | (2,814) | (14,620) | |||||||||||||
Ending balance | 258,504 | 236,234 | 231,927 | 260,621 | 258,329 | 261,814 | 258,504 | 260,621 | |||||||||
Retained Earnings | Adoption of Topic 326 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | (607) | ||||||||||||||||
Ending balance | $ (607) | ||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||||
AOCL attributable to shareholders of Crawford & Company | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | $ (206,907) | (208,835) | (207,876) | $ (206,907) | (211,634) | (211,374) | (216,447) | (206,907) | (216,447) | ||||||||
Other comprehensive income (loss) | 13,946 | (959) | (1,545) | (488) | (260) | 5,073 | |||||||||||
Increase (Decrease) value of noncontrolling interest due to dispositions and acquisition | (113) | 576 | |||||||||||||||
Ending balance | (195,002) | (208,835) | (207,876) | (212,122) | (211,634) | (211,374) | (195,002) | (212,122) | |||||||||
Shareholders' Investment Attributable to Shareholders of Crawford & Company | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | 159,317 | 145,495 | 141,029 | 159,317 | 160,921 | 162,413 | 171,288 | 159,317 | 171,288 | ||||||||
Net income (loss) | 24,397 | [2] | 5,898 | [2] | (11,399) | [2] | 11,046 | [3] | 2,642 | [3] | 6,109 | [3] | |||||
Other comprehensive income (loss) | 13,946 | (959) | (1,545) | (488) | (260) | 5,073 | |||||||||||
Cash dividends paid | (2,127) | (1,591) | (3,268) | (3,299) | (3,313) | (3,282) | |||||||||||
Stock-based compensation | 734 | 1,118 | 880 | 1,211 | 1,646 | (247) | |||||||||||
Repurchases of common stock | (2,666) | (6,088) | (3,167) | (16,418) | |||||||||||||
Shares issued in connection with stock-based compensation plans, net | 801 | 10 | 1,059 | 960 | (110) | ||||||||||||
Increase (Decrease) value of noncontrolling interest due to dispositions and acquisition | (250) | 307 | |||||||||||||||
Ending balance | 182,996 | 145,495 | 141,029 | 164,362 | 160,921 | 162,413 | 182,996 | 164,362 | |||||||||
Shareholders' Investment Attributable to Shareholders of Crawford & Company | Adoption of Topic 326 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | (607) | ||||||||||||||||
Ending balance | $ (607) | ||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||||||||
Noncontrolling Interests | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Beginning balance | $ 3,250 | 4,125 | 2,772 | $ 3,250 | 3,478 | 4,095 | 4,158 | 3,250 | 4,158 | ||||||||
Net income (loss) | 312 | [2] | 481 | [2] | 120 | [2] | (84) | [3] | (12) | [3] | 37 | [3] | |||||
Other comprehensive income (loss) | (65) | (377) | 1 | (545) | (409) | (16) | |||||||||||
Cash dividends paid | (196) | (196) | (84) | ||||||||||||||
Increase (Decrease) value of noncontrolling interest due to dispositions and acquisition | (4,886) | 1,249 | (599) | ||||||||||||||
Dividends paid to noncontrolling interests | (178) | ||||||||||||||||
Ending balance | $ (710) | $ 4,125 | $ 2,772 | $ 2,671 | $ 3,478 | $ 4,095 | $ (710) | $ 2,671 | |||||||||
[1] | Derived from the audited Consolidated Balance Sheet | ||||||||||||||||
[2] | The total net (loss)/income presented in the condensed consolidated | ||||||||||||||||
[3] | The total net income presented in the condensed consolidated statements of shareholders' investment for the three months ended March 31, June 30 and September 2019 excludes $377, $6 and $271, respectively, in net loss attributable to the redeemable noncontrolling interests. |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Shareholders' Investment Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Class of Stock [Line Items] | ||||||
Net loss (income) attributable to redeemable noncontrolling interest | $ 0 | $ 257 | $ 1,880 | $ 271 | $ 6 | $ 377 |
Class A Non-Voting | ||||||
Class of Stock [Line Items] | ||||||
Cash dividends paid (in dollars per share) | $ 0.04 | $ 0.03 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 |
Class B Voting | ||||||
Class of Stock [Line Items] | ||||||
Cash dividends paid (in dollars per share) | $ 0.04 | $ 0.03 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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 promulgated by the United States Securities and Exchange Commission (the "SEC"). Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Due to the impact of weather activity and the continued economic uncertainty resulting from the COVID-19 pandemic, the Company's operating results for the three and nine months ended September 30, 2020 and financial position as of September 30, 2020 are not necessarily indicative of the results or financial position that may be expected for the year ending December 31, 2020 or for other future periods. The financial results from the Company's operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines, are reported and consolidated on a two-month delayed basis (fiscal year-end of October 31) as permitted by GAAP in order to provide sufficient time for accumulation of their results. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments (consisting only of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. There have been no material changes to our significant accounting policies and estimates from those disclosed in the Company's financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2019 other than as disclosed herein. The Company recognized a goodwill impairment in the 2020 first quarter within its Crawford Claims Solutions segment, due to lower forecasts in that reporting unit and the overall decline in market conditions from the COVID-19 pandemic. See Note 9, "Fair Value Measurements" of our accompanying consolidated financial statements for further discussion about goodwill impairment. Certain prior period amounts among the segments have been reclassified to conform to the current presentation. These reclassifications had no effect on the Company's reported consolidated results. Significant intercompany transactions have been eliminated in consolidation. The Condensed Consolidated Balance Sheet information presented herein as of December 31, 2019 has been derived from the audited consolidated financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and also considered a variable interest entity ("VIE") of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan. At September 30, 2020 and December 31, 2019, the liabilities of the deferred compensation plan were $8,273,000 and $8,428,000, respectively, which represented obligations of the Company rather than of the rabbi trust, and the values of the assets held in the related rabbi trust were $16,247,000 and $16,527,000, respectively. These liabilities and assets are included in "Other noncurrent liabilities" and "Other noncurrent assets," respectively, on the Company's unaudited Condensed Consolidated Balance Sheets. The Company sold its 51% interest in Lloyd Warwick International Limited ("LWI") to a third party on June 12, 2020. Prior to the sale, LWI was considered a VIE to the Company. As the primary beneficiary of LWI, the Company consolidated the results of LWI because of its controlling ownership interest and because Crawford had the obligation to absorb LWI’s losses through the additional financial support that Crawford was obligated to provide. As a result of the sale, LWI is no longer considered a VIE of the Company, and the Company no longer consolidates the results of LWI nor is obligated to provide financial support to LWI. See Note 13, “Business Acquisition and Dispositions” of our accompanying consolidated financial statements for further discussion related to the sale of the Company’s interest in LWI. Noncontrolling interests represent the minority shareholders' share of the net income or loss and shareholders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the unaudited Condensed Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' investment as "Redeemable Noncontrolling Interests" and are recorded at either their initial fair value plus any profits or losses or estimated redemption value if an adjustment is required. On July 21, 2020, the Company acquired the remaining 15% membership interests of WeGoLook, LLC. On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company has not applied for governmental loans from the CARES Act or any other governmental programs to support the Company’s operations. The Company is taking advantage of certain aspects of the CARES Act such as the deferral of payroll tax deposits. The Canadian government enacted the Canada Emergency Wage Subsidy (“CEWS”) in 2020 to provide a wage subsidy to employers that suffered reductions in revenue resulting from the COVID-19 pandemic. The Company met the eligibility criteria to receive the wage subsidy in the second and third quarters. The wage subsidy is included in "Costs of services provided, before reimbursements” or “Selling, general, and administrative expenses” on the Company's unaudited Condensed Consolidated Statements of Operations, depending on the location of the employees, and is recorded as a reduction of compensation expense once the application is filed. The Company recognized $4,711,000 and $9,056,000 as a reduction of compensation expense for the three and nine months ended September 30, 2020, respectively. In July 2020, the Canadian government announced an extension of this program that may benefit the Company through end of 2020. The Company will continue to evaluate the impact of government subsidies each period. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards Adoption of New Accounting Standards Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" together with its subsequent related amendments in 2018 and 2019, collectively referred to as Topic 326. Topic 326 replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value, including trade receivables, with gains and losses recognized through income. The Company estimates its expected credit losses based on past experience, current conditions and reasonable and supportable forecasts affecting collectability of these assets. We evaluate the risks related to our trade receivables and contract assets by considering customer type, geography, and aging. Topic 326 is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted Topic 326 on January 1, 2020 using a modified retrospective approach. As a result of adopting Topic 326, the Company recognized a cumulative effect adjustment to decrease the opening balance of retained earnings by $607,000. The Company has included assumptions related to expected credit losses from the impact of the COVID-19 pandemic in its results of operations for the three months and nine months ended September 30, 2020. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This update amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, by removing and modifying certain disclosure requirements and adding others. This update removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. This update requires the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, this update clarifies that transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities are required to be disclosed. These updates are effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on disclosures related to fair value measurement. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40).” This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. This update also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Further, this update requires the presentation of the amortization expense in the statement of income, the presentation of the capitalized costs on the statement of financial position and the classification of payments for capitalized costs in the statement of cash flows related to capitalized implementation costs to be treated the same as the fees for service component of the associated hosting arrangement. The update is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on its results of operation, financial condition or cash flows. Pending Adoption of Recently Issued Accounting Standards Compensation-Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)." This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This update removes certain disclosure requirements including, but not limited to, the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the amount and timing of plan assets expected to be returned to the employer. This update requires the disclosure of the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This update also clarifies requirements for entities that provide aggregate disclosures for two or more plans. The update is effective for annual periods beginning after December 15, 2020, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on disclosures related to its retirement plans. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 amends ASC 740 to simplify the accounting for income taxes by removing certain exceptions for foreign equity investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in the accounting standard under the FASB’s simplification initiative. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Upon adoption, the amendments in ASU 2019-12 should be applied on a prospective basis to all periods presented. Early adoption is permitted. The Company is currently assessing the impact of the adoption of the new guidance. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition As of January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") 606 using the modified retrospective method for those contracts which were not substantially completed as of the transition date. The reported results for the three and nine months ended September 30, 2020 and 2019 reflect the application of ASC 606. Revenue from Contracts with Customers Revenues are recognized when control of the promised services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are recognized net of any sales, use or value added taxes collected from customers, which are subsequently remitted to governmental authorities. As the Company completes its performance obligations which are identified below, it has an unconditional right to consideration as outlined in the Company's contracts. Generally, the Company's accounts receivable are expected to be collected in less than two months, in accordance with the underlying payment terms. The Company's Crawford Claims Solutions segment generates revenue for adjusting services provided to insurance companies and self-insured entities related to property, casualty and catastrophe losses caused by physical damage to commercial and residential real property and certain types of personal property. The Company charges on a fee-per-claim basis for each optional purchase of the claims management services exercised by its customer. Revenue is recognized over time as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document and report the claim and control of these services is transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type for fixed fee claims applied utilizing a portfolio approach based on time elapsed for these claims. For claims billed on a time and expense incurred basis, which are considered variable consideration, the Company recognizes revenue at the amount in which it has the right to invoice for services performed. These methods of revenue recognition are the most accurate depiction of the transfer of the claims management services to the customer. The Company also generates revenue by providing on-demand inspection, verification and other task specific field services for businesses and consumers. Task assignment services are single optional purchase performance obligations which are generally satisfied at a point in time when the control of the service is transferred to the customer. Therefore, revenue is recognized when the customer receives the service requested. The following table presents Crawford Claims Solutions revenues before reimbursements disaggregated by geography for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 U.S. $ 51,716 $ 35,982 $ 117,488 $ 103,743 U.K. 15,394 15,123 47,033 47,325 Australia 13,066 11,886 35,211 35,220 Canada 8,272 12,008 26,382 36,276 Europe 6,537 7,429 20,734 21,265 Rest of World 3,384 3,822 10,559 11,743 Total Crawford Claims Solutions Revenues before Reimbursements $ 98,369 $ 86,250 $ 257,407 $ 255,572 The Crawford TPA Solutions segment is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Claims Management service line includes Workers' Compensation, Liability, Property and Disability Claims Management. This service line also performs additional services such as Accident & Health claims programs, including Affinity type claims, and disability and leave management services. Each claim referred by the customer is considered an additional optional purchase of claims management services under the agreement with the customer. The transaction price is specified in the contract and is fixed for each service. Revenue is recognized over time as services are provided as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document, and report the claim and control of these services is transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type applied utilizing a portfolio approach based on time elapsed for these claims as the Company believes this is the most accurate depiction of the transfer of the claims management services to its customer. This service line also provides Risk Management Information Services. For non-claim services, revenue is recognized over time as services are provided and control of these services is transferred to the customer. Revenue is recognized as time elapses as this is the most accurate depiction of the transfer of the service to the customer. The Company's obligation to manage claims under the Claims Management service line can range from less than one year, on a one- or two-year The Medical Management service line offers case managers who provide administration services by proactively managing medical treatment for claimants while facilitating an understanding of and participation in their rehabilitation process. Revenue for Medical Management services is recognized over time as the performance obligations are satisfied through the effort expended to manage the medical treatment for claimants and control of these services is transferred to the customer. Medical Management services are generally billed based on time incurred, are considered variable consideration, and revenue is recognized at the amount in which the Company has the right to invoice for services performed. This method of revenue recognition is the most accurate depiction of the transfer of the Medical Management service to the customer. Medical bill review services provide an analysis of medical charges for clients’ claims to identify opportunities for savings. Medical bill review services revenues are recognized over time as control of the service is transferred to the customer. Revenue is recognized based upon the transfer of the results of the medical bill review service to the customer as this is the most accurate depiction of the transfer of the service to the customer. The following tables present Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 35,133 $ 35,593 $ 70,726 $ 37,352 $ 43,024 $ 80,376 U.K. 2,522 — 2,522 2,730 — 2,730 Canada 6,415 — 6,415 8,210 — 8,210 Europe and Rest of World 7,547 — 7,547 8,179 — 8,179 Total Crawford TPA Solutions Revenues before Reimbursements $ 51,617 $ 35,593 $ 87,210 $ 56,471 $ 43,024 $ 99,495 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 105,755 $ 112,237 $ 217,992 $ 109,700 $ 127,691 $ 237,391 U.K. 8,150 — 8,150 8,243 — 8,243 Canada 19,924 — 19,924 25,466 — 25,466 Europe and Rest of World 24,804 — 24,804 25,707 — 25,707 Total Crawford TPA Solutions Revenues before Reimbursements $ 158,633 $ 112,237 $ 270,870 $ 169,116 $ 127,691 $ 296,807 The Company's Crawford Specialty Solutions segment principally generates revenues through its Global Technical Services and Contractor Connection service lines. The Global Technical Services service line generates revenues for claims management services provided to insurance companies and self-insured entities related to large, complex losses with technical adjusting and industry experts servicing a broad range of industries. Revenue is recognized over time as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document and report the claim and control of these services is transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type for fixed fee claims, applied utilizing a portfolio approach based on time elapsed for these claims. For claims billed on a time and expense incurred basis, which are considered variable consideration, the Company recognizes revenue at the amount in which it has the right to invoice for services performed. These methods of revenue recognition are the most accurate depiction of the transfer of the claims management services to the customer. The Contractor Connection service line generates revenue through its independently managed contractor network. Contractor Connection primarily generates revenue by receiving a fee for each project that is sold by its network of contractors. Revenue is recognized at a point in time once the consumer accepts the contractor's proposal as Contractor Connection’s performance obligation of referring projects to its contractors has been completed and the Company is entitled to consideration at that time. The contractor takes control of the service upon the consumer’s acceptance of the contractor’s proposal. The following table presents Crawford Specialty Solutions revenues before reimbursements disaggregated by service line and geography for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 10,210 $ 20,075 $ 30,285 $ 10,202 $ 19,617 $ 29,819 U.K. 10,805 1,339 12,144 11,728 1,263 12,991 Australia 5,789 333 6,122 5,935 222 6,157 Canada 5,793 1,787 7,580 6,294 1,838 8,132 Europe 5,090 9 5,099 5,141 2 5,143 Rest of World 6,315 — 6,315 6,690 — 6,690 Total Crawford Specialty Solutions Revenues before Reimbursements $ 44,002 $ 23,543 $ 67,545 $ 45,990 $ 22,942 $ 68,932 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 30,311 $ 53,271 $ 83,582 $ 30,888 $ 60,270 $ 91,158 U.K. 34,835 4,984 39,819 34,444 3,955 38,399 Australia 16,379 651 17,030 16,881 608 17,489 Canada 17,549 4,484 22,033 19,522 5,773 25,295 Europe 15,354 24 15,378 14,793 3 14,796 Rest of World 18,952 — 18,952 19,100 — 19,100 Total Crawford Specialty Solutions Revenues before Reimbursements $ 133,380 $ 63,414 $ 196,794 $ 135,628 $ 70,609 $ 206,237 In the normal course of business, the Company's operating segments incur certain out-of-pocket expenses that are thereafter reimbursed by its customers. The Company controls the promised good or service before it is transferred to its customer, therefore it is a principal in the transaction. These out-of-pocket expenses and associated reimbursements are reported on a gross basis within expenses and revenues, respectively, in the Company's unaudited Condensed Consolidated Statements of Operations. Arrangements with Multiple Performance Obligations For claims management services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company sells multiple lines of claims processing and different levels of processing depending on the complexity of the claims. The Company typically provides a menu of offerings from which the customer chooses to purchase at its option. The price of each service is separate and distinct and provides a separate and distinct value to the customer. Pricing is consistent for each service irrespective of the other services or quantities requested by the customer. For example, if the Company provides claims processing for both auto and general liability, those services are priced and delivered independently. Contract Balances The timing of revenue recognition, billings and cash collections result in billed accounts receivables, contract assets (reported as "Unbilled revenues at estimated billable amounts") and contract liabilities (reported as "Deferred revenues") on the Company’s unaudited Condensed Consolidated Balance Sheets. Unbilled revenues is a contract asset for revenue that has been recognized in advance of billing the customer, resulting from professional services delivered that the Company expects and is entitled to receive as consideration under certain contracts. Billing requirements vary by contract but substantially all unbilled revenues are billed within one year. When the Company receives consideration from a customer prior to transferring services to the customer under the terms of certain claims management agreements, it records deferred revenues on the Company’s unaudited Condensed Consolidated Balance Sheets, which represents a contract liability. These fixed-fee service agreements typically result from the Crawford TPA Solutions segment and require the Company to handle claims on either a one- or two-year The Company's deferred revenues for claims handled for one or two years are not as sensitive to changes in claim closing rates since the performance obligations are satisfied within a fixed length of time. Deferred revenues for lifetime claim handling are more sensitive to changes in claim closing rates since the Company is obligated to handle these claims to conclusion with no additional fees received for long-lived claims. For all fixed fee service agreements, revenues are recognized over the expected service periods by type of claim. Based upon its historical averages, the Company closes approximately 98% of all cases referred to it under lifetime claim service agreements within five years from the date of referral. Also, within that five-year period, the percentage of cases remaining open in any one particular year has remained relatively consistent from period to period. Each quarter the Company evaluates its historical case closing rates by type of claim utilizing a portfolio approach and makes adjustments to deferred revenues as necessary. As a portfolio approach is utilized to recognize deferred revenues, any changes in estimates will impact the timing of revenue recognition and any changes in estimates are recognized in the period in which they are determined. The table below presents the deferred revenues balance as of January 1, 2020 and the significant activity affecting deferred revenues during the nine months ended September 30, 2020: (In Thousands) Customer Contract Liabilities Deferred Revenue Balance at January 1, 2020 $ 52,368 Quarterly additions 22,226 Revenue recognized from the prior periods (14,293 ) Revenue recognized from current quarter additions (4,994 ) Balance as of March 31, 2020 $ 55,307 Quarterly additions 15,389 Revenue recognized from the prior periods (15,407 ) Revenue recognized from current quarter additions (3,568 ) Balance as of June 30, 2020 $ 51,721 Quarterly additions 17,600 Revenue recognized from the prior periods (14,134 ) Revenue recognized from current quarter additions (4,137 ) Balance as of September 30, 2020 $ 51,050 Remaining Performance Obligations As of September 30, 2020, the Company had $88,565,000 of remaining performance obligations related to claims and non-claims services in which the price is fixed. Remaining performance obligations consist of deferred revenues as well as certain unbilled receivables that are considered contract assets. The Company expects to recognize approximately 70% of our remaining performance obligations as revenues within one year and the remaining balance thereafter. Costs to Obtain a Contract The Company has a sales incentive compensation program where remuneration is based on the revenues recognized in the period and does not represent an incremental cost to the Company which provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented as a contract asset on the Company's unaudited Condensed Consolidated Balance Sheets. Practical Expedients Elected As a practical expedient, the Company does not adjust the consideration in a contract for the effects of a significant financing component it expects, at contract inception, when the period between a customer’s payment of consideration and the transfer of promised services to the customer will be one year or less. For claims management services that are billed on a time and expense incurred or per unit basis and revenue is recognized over time, the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not disclose the value of remaining performance obligations for (i) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed, and (ii) contracts with variable consideration allocated entirely to a single performance obligation. |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Commitments | 4. Lease Commitments During the three months ended March 31, 2020, the Company entered into a lease in Allen, TX, related to a new client contract. This lease had an opening ROU asset and lease liability balance of $11,455,000. The Company has included the below annual lease disclosures for comparability between reporting periods. The Company determines if an arrangement is a lease at inception. The Company's and its subsidiaries' leases include office space, computer equipment, and automobiles under operating and finance leases. These lease agreements have remaining lease terms of 1 to 11 years. Some of these lease agreements include options to extend the leases for up to 5 years, options to terminate the leases within 1 year, rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company, as sublessor, subleases certain office space which mostly consists of a two-building office complex in Plantation, Florida in which the terms of the primary lease and the related subleases end in December 2021. Under all of its executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $1,100,000 during the remainder of 2020, $4,200,000 in 2021 and $100,000 in 2022. The Company's finance leases are not material for the three and nine months ended September 30, 2020 and are excluded from the disclosures below. The following table presents the lease-related assets and liabilities recorded on the Company's unaudited Condensed Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet September 30, 2020 December 31, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 107,956 $ 102,354 Liabilities: Current operating lease liabilities Current operating lease liabilities 31,918 30,765 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 91,963 87,064 Total operating lease liabilities $ 123,881 $ 117,829 Weighted-Average Remaining Lease Term 6.04 Years 5.72 years Weighted-Average Discount Rate (1) 5.3 % 5.4 % (1) Upon adoption of Topic 842, discount rates used for existing leases were established at the transition date. The components of operating lease costs within the Company's unaudited Condensed Consolidated Statements of Operations consisted of the following for the three and nine months ended September 30, 2020: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Operating lease cost $ 9,381 $ 9,298 $ 28,770 $ 28,410 Variable lease cost 2,094 2,078 6,317 5,849 Sublease income 982 1,114 3,085 3,086 Supplemental cash flow information related to operating leases for the three and nine months ended September 30, 2020 were as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,418 $ 9,806 $ 27,933 $ 29,220 Right-of-use assets obtained in exchange for lease obligations (1) $ 8,204 $ 1,294 $ 31,061 $ 13,310 (1) Amount excludes $122,300,000 of right-of-use assets recognized upon adoption of Topic 842. Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows: (in thousands) September 30, 2020 2020 $ 8,746 2021 36,930 2022 23,696 2023 16,422 2024 13,329 Thereafter 46,586 Total undiscounted lease payments 145,709 Less imputed interest (21,828 ) Present value of future lease payments $ 123,881 The Company has entered into operating lease agreements that have not yet commenced as of September 30, 2020 with legally binding minimum lease payments of $2,395,000. The leases are expected to commence during the three months ended March 31, 2021, and have lease terms between 5 years and 10 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
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, and amounts related to uncertain income tax positions. The provision for income taxes on consolidated income before income taxes totaled $11,729,000 and $5,328,000 for the three months ended September 30, 2020 and 2019, respectively. The provision for income taxes on consolidated income before income taxes totaled $9,554,000 and $11,120,000 for the nine months ended September 30, 2020 and 2019, respectively. The overall effective tax rate decreased to 35.1% for the nine months ended September 30, 2020 compared with 36.8% for the 2019 period primarily due to the impact of goodwill impairment and LWI disposition in 2020 and an arbitration settlement in 2019. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [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 nine months ended September 30, 2020 and 2019 included the following components: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Service cost $ 315 $ 332 $ 946 $ 1,004 Interest cost 4,092 5,565 12,330 16,763 Expected return on assets (6,936 ) (7,371 ) (20,899 ) (22,214 ) Amortization of actuarial loss 2,614 2,689 7,848 8,073 Net periodic cost $ 85 $ 1,215 $ 225 $ 3,626 For the three months ended September 30, 2020 and 2019, the non-service components of net periodic pension (benefit) cost of $(230,000) and $883,000, respectively, are included in "Other (Expense) Income, net" on the unaudited Condensed Consolidated Statement of Operations. For the nine months ended September 30, 2020 and 2019, the non-service components of net periodic pension (benefit) cost of $(721,000) and $2,622,000, respectively, are included in "Other (Expense) Income, net" on the unaudited Condensed Consolidated Statement of Operations. For the nine months ended September 30, 2020, the Company made contributions of $3,000,000 and $455,000 to the U.S. and U.K. defined benefit pension plans, respectively, compared with no contributions to the U.S. defined benefit plan and $527,000 to the U.K. defined benefit pension plans during the nine months ended September 30, 2019. The Company has made an additional contribution of $6,000,000 to its U.S. plan during the fourth quarter of 2020 but does not expect to make additional contributions to its U.K. plans during the remainder of 2020. |
Net Income Attributable to Shar
Net Income Attributable to Shareholders of Crawford & Company per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
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 the second and third quarters of 2020, the Board of Directors declared the same dividend on CRD-A and CRD-B, while during the first quarter of 2020, and the first three quarters of 2019, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. The computations of basic net income attributable to shareholders of Crawford & Company per common share were as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (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 $ 12,839 $ 9,431 $ 4,439 $ 3,308 $ 6,857 $ 5,053 $ 5,654 $ 4,249 Dividends paid 1,226 901 2,157 1,142 4,281 2,705 6,449 3,445 Net income attributable to common shareholders, basic $ 14,065 $ 10,332 $ 6,596 $ 4,450 $ 11,138 $ 7,758 $ 12,103 $ 7,694 Denominator: Weighted-average common shares outstanding, basic 30,643 22,510 30,645 22,831 30,575 22,533 30,701 23,071 Earnings per share - basic $ 0.46 $ 0.46 $ 0.22 $ 0.19 $ 0.36 $ 0.34 $ 0.39 $ 0.33 The computations of diluted net income attributable to shareholders of Crawford & Company per common share were as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (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 $ 12,891 $ 9,379 $ 4,470 $ 3,277 $ 6,879 $ 5,031 $ 5,687 $ 4,216 Dividends paid 1,226 901 2,157 1,142 4,281 2,705 6,449 3,445 Net income attributable to common shareholders, diluted $ 14,117 $ 10,280 $ 6,627 $ 4,419 $ 11,160 $ 7,736 $ 12,136 $ 7,661 Denominator: Weighted-average common shares outstanding, basic 30,643 22,510 30,645 22,831 30,575 22,533 30,701 23,071 Weighted-average effect of dilutive securities 294 — 495 — 235 — 415 — Weighted-average common shares outstanding, diluted 30,937 22,510 31,140 22,831 30,810 22,533 31,116 23,071 Earnings per share - diluted $ 0.46 $ 0.46 $ 0.21 $ 0.19 $ 0.36 $ 0.34 $ 0.39 $ 0.33 Listed below are the shares excluded from the denominator in the preceding computation of diluted earnings per share for CRD-A because their inclusion would have been antidilutive: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Shares underlying stock options excluded 2,014 572 2,014 592 Performance stock grants excluded because performance conditions have not been met (1) 1,335 1,094 1,197 1,041 (1) Compensation cost is recognized for these performance stock grants based on expected achievement rates; however, no consideration is given to these performance stock grants when calculating diluted earnings per share until the performance measurements have been achieved. The following table details shares issued during the three and nine months ended September 30, 2020 and 2019. These shares are included from their dates of issuance in the weighted-average common shares used to compute basic and diluted earnings per share for CRD-A in the table above. There were no shares of CRD-B issued during any of these periods. Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 CRD-A issued under the Non-Employee Director Stock Plan 3 2 70 87 CRD-A issued under the U.K. ShareSave Scheme 1 14 2 280 CRD-A issued under the Executive Stock Bonus Plan — — — 30 CRD-A issued under the 2016 Omnibus Stock and Incentive Plan — 3 — 62 CRD-A issued under the Employee Stock Purchase Plan 114 131 114 131 CRD-A issued under the International Plan 4 4 4 4 The Company's share repurchase authorization, approved in July 2017 (the "2017 Repurchase Authorization"), provided the Company with the ability to repurchase up to 2,000,000 shares of CRD-A or CRD-B (or both). The 2017 Repurchase Authorization was terminated on May 8, 2019. Effective May 9, 2019, the Company's Board of Directors authorized the repurchase of up to 2,000,000 shares of CRD-A or CRD-B (or a combination of the two) through December 31, 2020 (the "2019 Repurchase Authorization"). Under the 2019 Repurchase Authorization, repurchases may be made for cash, in the open market or privately negotiated transactions at such times and for such prices as management deems appropriate, subject to applicable contractual and regulatory restrictions. At September 30, 2020, the Company had remaining authorization to repurchase 642,097 shares under the 2019 Repurchase Authorization. During the three months ended September 30, 2020, the Company did not repurchase shares of CRD-A or CRD-B. During the three months ended September 30, 2019, the Company repurchased 401,892 shares of CRD-A and 231,137 shares of CRD-B at an average cost of $9.72 and $9.43, respectively. During the nine months ended September 30, 2020, the Company repurchased 155,351 shares of CRD-A and 161,459 shares of CRD-B at an average cost of $8.42 for each share. During the nine months ended September 30, 2019, the Company repurchased 1,103,398 shares of CRD-A at an average cost of $9.33 and 1,680,377 shares of CRD-B at an average cost of $9.16 for each share, of which 421,427 shares of CRD-A and 1,376,889 shares of CRD-B were purchased pursuant to a stock purchase agreement authorized by the Board of Directors separate from the 2017 Repurchase Authorization and the 2019 Repurchase Authorization. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 8. Accumulated Other Comprehensive Loss Comprehensive income (loss) for the Company consists of the total of net income, foreign currency translation adjustments, and accrued pension and retiree medical liability adjustments. Foreign currency translation adjustments include the net realized gains from intra-entity loans that are long-term in nature of $793,000 for the three months ended September 30, 2020, and losses of $(4,150,000) for the nine months ended September 30, 2020. The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's unaudited condensed consolidated financial statements were as follows: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (41,591 ) $ (167,244 ) $ (208,835 ) $ (35,850 ) $ (171,057 ) $ (206,907 ) Other comprehensive loss before reclassifications 11,910 — 11,910 5,593 — 5,593 Amounts reclassified from accumulated other comprehensive income — 2,036 2,036 — 5,849 5,849 Net current period other comprehensive loss 11,910 2,036 13,946 5,593 5,849 11,442 (Disposition)/acquisition of noncontrolling interest (113 ) — (113 ) 463 — 463 Ending balance $ (29,794 ) $ (165,208 ) $ (195,002 ) $ (29,794 ) $ (165,208 ) $ (195,002 ) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (35,531 ) $ (176,103 ) $ (211,634 ) $ (36,352 ) $ (180,095 ) $ (216,447 ) Other comprehensive loss before reclassifications (2,472 ) — (2,472 ) (1,651 ) — (1,651 ) Amounts reclassified from accumulated other comprehensive income — 1,984 1,984 — 5,976 5,976 Net current period other comprehensive (loss) income (2,472 ) 1,984 (488 ) (1,651 ) 5,976 4,325 Ending balance $ (38,003 ) $ (174,119 ) $ (212,122 ) $ (38,003 ) $ (174,119 ) $ (212,122 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other Expense, net" in the Company's unaudited Condensed Consolidated Statements of Operations. See Note 6, "Defined Benefit Pension Plans" for additional details. The other comprehensive loss amounts attributable to noncontrolling interests presented in the Company's unaudited Condensed Consolidated Statements of Shareholders' Investment are foreign currency translation adjustments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 Significant Other Significant Quoted Prices in Observable Unobservable Active Markets Inputs Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 10,027 $ 10,027 $ — $ — Liabilities: Contingent earnout liability (2) 386 — — 386 (1) The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included in the Company's unaudited Condensed Consolidated Balance Sheets as "Cash and cash equivalents." (2) The contingent earnout liability relates to business acquisitions by the Crawford Specialty Solutions operating segment. The fair value of the contingent earnout liability was estimated using internally-prepared revenue projections, which is Level 3 data, with the maximum possible earnout of $551,000. As such, the fair value is not expected to vary materially. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of each contingent earnout agreement. Fair Value Disclosures There were no transfers of assets between fair value levels during the three and nine months ended September 30, 2020. The categorization of assets and liabilities within the fair value hierarchy and the measurement techniques are reviewed quarterly. Any transfers between levels are deemed to have occurred at the end of the quarter. The fair values of accounts receivable, unbilled revenues, accounts payable and short-term borrowings approximate their respective carrying values due to the short-term maturities of the instruments. The interest rate on the Company's variable rate long-term debt resets at least every 90 days; therefore, the recorded value approximates fair value. These assets and liabilities are measured within Level 2 of the fair value hierarchy. Nonrecurring Fair Value Disclosures In June 2020, the Company sold its 51% interest in Crawford Compliance Inc. in exchange for a Goodwill is an asset that represents the excess of the purchase price over the fair value of the separately identifiable net assets (tangible and intangible) acquired in certain business combinations. Indefinite-lived intangible assets consist of trade names associated with acquired businesses. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing at least annually. Other long-lived assets consist primarily of property and equipment, deferred income tax assets, capitalized software, and amortizable intangible assets related to customer relationships, technology, and trade names with finite lives. Other long-lived assets are evaluated for impairment when impairment indicators are identified. Subsequent to a business acquisition in which goodwill and indefinite-lived intangibles are recorded as assets, post-acquisition accounting requires that both be tested to determine whether there has been an impairment. The Company performs an impairment test of goodwill and indefinite-lived intangible assets at least annually on October 1 of each year. The Company regularly evaluates whether events and circumstances have occurred which indicate potential impairment of goodwill or indefinite-lived intangible assets. When factors indicate that such assets should be evaluated for possible impairment between the scheduled annual impairment tests, the Company performs an interim impairment test. Goodwill impairment testing is performed on a reporting unit basis. If the fair value of the reporting unit exceeds its carrying value, including goodwill, goodwill is considered not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The loss recognized cannot subsequently be reversed. The Company currently has four reporting units for goodwill impairment purposes. These reporting units are the Crawford Claims Solutions and Crawford TPA Solutions operating segments and the Global Technical Services and Contractor Connection service lines. The carrying value of the reporting unit, including goodwill, is compared with the estimated fair value of the reporting unit as determined utilizing a combination of the income and market approaches. The income approach, which is a level 3 fair value measurement, is based on projected debt-free cash flow which is discounted to the present value using discount factors that consider the timing and risk of the cash flows. The market approach is based on the Guideline Public Company Method, which uses market pricing metrics to select multiples to value the Company's reporting units. The resulting estimated fair values of the combined reporting units are reconciled to the Company's market capitalization including an estimated implied control premium. The Company believes that the combination of these approaches is appropriate because it provides a fair value estimate based upon the combination of the reporting unit's expected long-term operating cash flow performance and multiples with which similar publicly traded companies are valued. The Company weights the income and market approaches equally. During the first quarter of 2020, the Company identified a goodwill impairment indicator in its Crawford Claims Solutions reporting unit as a result of lower operating results and the overall decline in market conditions as a result of the COVID-19 pandemic. As a result, the Company recognized a goodwill impairment of $17,674,000, reducing the goodwill carrying value of Crawford Claims Solutions to $0 as of March 31, 2020. Cumulative goodwill impairment in the Crawford Claims Solutions reporting unit is $55,565,000. The Company intends to continue to monitor the performance of its other three reporting units for potential indicators of impairment. If impairment indicators exist, the Company will perform an interim goodwill impairment analysis. The key assumptions used in estimating the fair value of the CCS reporting unit utilizing the income approach include the discount rate and the terminal growth rate. The discount rates utilized in estimating the fair value of the CCS reporting unit in 2020 was 17.5%, reflecting the Company's assessment of a market participant's view of the risks associated with the projected cash flows. The terminal growth rate used in the analysis was 2.0%. The assumptions used in estimating the fair values are based on currently available data and management's best estimates of revenues and cash flows and, accordingly, a change in market conditions or other factors could have a material effect on the estimated values. There are inherent uncertainties related to the assumptions used and to management's application of these assumptions. If changes to the Company's reporting structure impact the composition of its reporting units, existing goodwill is reallocated to the revised reporting units based on their relative estimated fair values as determined by a combination of the income and market approaches. If all of the assets and liabilities of an acquired business are assigned to a specific reporting unit, the goodwill associated with that acquisition is assigned to that reporting unit at acquisition unless another reporting unit is also expected to benefit from the acquisition. For impairment testing of indefinite-lived intangible assets, the carrying value is compared with the estimated fair value, which is estimated based on the present value of the after-tax cash flows attributable solely to the asset. If carrying value exceeds the estimated fair value, an impairment is recognized based on the excess. The fair values of the Company's trade names are established using the relief-from-royalty method, a form of the income approach. This method recognizes that, by virtue of owning the trade name as opposed to licensing it, a company or reporting unit is relieved from paying a royalty, usually expressed as a percentage of net sales, for the asset's use. The present value of the after-tax costs savings (i.e., royalty relief) at an appropriate discount rate including a tax amortization benefit indicates the value of the trade name. The Company determined the discount rate based on its performance compared to similar market participants, factored by risk in forecasting using a modified capital asset pricing model. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information Financial information for the three and nine months ended September 30, 2020 and 2019 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Revenues: Crawford Claims Solutions $ 98,369 $ 86,250 $ 257,407 $ 255,572 Crawford TPA Solutions 87,210 99,495 270,870 296,807 Crawford Specialty Solutions 67,545 68,932 196,794 206,237 Total segment revenues before reimbursements 253,124 254,677 725,071 758,616 Reimbursements 8,545 11,165 25,519 31,449 Total revenues $ 261,669 $ 265,842 $ 750,590 $ 790,065 Segment Operating Earnings Crawford Claims Solutions $ 7,219 $ 2,661 $ 6,329 $ 4,058 Crawford TPA Solutions 4,414 9,347 13,870 21,106 Crawford Specialty Solutions 17,390 13,301 38,340 38,108 Total segment operating earnings 29,023 25,309 58,539 63,272 (Deduct)/Add: Unallocated corporate and shared costs, net (968 ) (1,649 ) (5,227 ) (2,393 ) Net corporate interest expense (1,599 ) (3,162 ) (6,275 ) (8,346 ) Stock option expense (457 ) (450 ) (1,033 ) (1,348 ) Amortization of customer-relationship intangible assets (3,665 ) (2,829 ) (9,153 ) (8,429 ) Goodwill impairment — — (17,674 ) — Restructuring costs — — (5,714 ) — Arbitration and claim settlements — (1,200 ) — (12,552 ) Gain on disposition of businesses, net 14,104 — 13,763 — Income before income taxes $ 36,438 $ 16,019 $ 27,226 $ 30,204 Operating earnings is the primary financial performance measure used by the Company's senior management and chief operating decision maker ("CODM") to evaluate the financial performance of the Company's three operating segments and make resource allocation and certain compensation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate segment operating performance using the same criteria used by the Company's senior management and CODM. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represent segment earnings before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, goodwill impairment, restructuring costs, gain on disposition of business, arbitration and claim settlements, income taxes, and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests. Segment operating earnings includes allocations of certain corporate and shared costs. If the Company changes its allocation methods or changes the types of costs that are allocated to its three operating segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process. Intersegment transactions are not material for any period presented . Revenues before reimbursements by major service line in the Crawford TPA Solutions segment, which operates under the Broadspire brand globally, and the Crawford Specialty Solutions segment are shown in the following table. The Company considers all Crawford Claims Solutions revenues to be derived from one service line. Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Crawford TPA Solutions Claims Management Services $ 51,617 $ 56,471 $ 158,633 $ 169,116 Medical Management Services 35,593 43,024 112,237 127,691 Total Revenues before Reimbursements--Crawford TPA Solutions $ 87,210 $ 99,495 $ 270,870 $ 296,807 Crawford Specialty Solutions Global Technical Services $ 44,002 $ 45,990 $ 133,380 $ 135,628 Contractor Connection 23,543 22,942 63,414 70,609 Total Revenues before Reimbursements--Crawford Specialty Solutions $ 67,545 $ 68,932 $ 196,794 $ 206,237 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
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 facility to satisfy certain of its own contractual requirements. At September 30, 2020, the aggregate committed amount of letters of credit outstanding under the credit facility was $11,512,000. In the normal course of its business, the Company is sometimes named as a defendant or responsible party in suits or other actions by insureds or claimants contesting decisions made by the Company or its clients with respect to the settlement of claims. Additionally, certain clients of the Company have in the past brought, and may, in the future bring, claims for indemnification on the basis of alleged actions by the Company, its agents, or its employees in rendering services to clients. The majority of these claims are of the type covered by insurance maintained by the Company. However, the Company is responsible for the deductibles and self-insured retentions under various insurance coverages. In the opinion of Company management, adequate provisions have been made for such known and foreseeable risks. The Company is subject to numerous federal, state, and foreign labor, employment, worker health and safety, antitrust and competition, environmental and consumer protection, import/export, anti-corruption, and other laws. From time to time the Company faces claims and investigations by employees, former employees, and governmental entities under such laws or employment contracts with such employees or former employees. Such claims, investigations, and any litigation involving the Company could divert management's time and attention from the Company's business operations and could potentially result in substantial costs of defense, settlement or other disposition, which could have a material adverse effect on the Company's results of operations, financial position, and cash flows. In the opinion of Company management, adequate provisions have been made for any items that are probable and reasonably estimable. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 12. Restructuring Costs Total restructuring costs were $5,714,000 for the nine months ended September 30, 2020. There were no restructuring costs for the three months ended September 30, 2020 or the three and nine months ended September 30, 2019. Restructuring costs incurred during the nine months ended September 30, 2020 related primarily to severance and other termination costs in an effort to consolidate and streamline various functions of our workforce. Costs associated with these activities were incurred in each of the Company's operating segments and in administrative functions. Asset impairments were incurred for obsolete software. The following table shows the restructuring costs incurred by type of activity: Three months ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Personnel related costs $ — $ — $ 5,076 $ — Asset impairments — — 638 — Total restructuring costs $ — $ — $ 5,714 $ — As of September 30, 2020 , the following liabilities remained on the Company's unaudited Condensed Consolidated Balance Sheets related to restructuring costs. The rollforward of these liabilities to September 30, 2020 were as follows: Three months ended September 30, 2020 (in thousands) Accrued compensation and related costs Other accrued liabilities Total Beginning balance, June 30, 2020 $ 2,427 $ 5 $ 2,432 Additions — — — Adjustments to accruals 799 (5 ) 794 Cash payments (1,866 ) — (1,866 ) Ending balance, September 30, 2020 $ 1,360 $ — $ 1,360 Nine Months Ended September 30, 2020 Accrued compensation and related costs Other accrued liabilities Total Beginning balance, December 31, 2019 $ 342 $ 472 $ 814 Additions 5,076 — 5,076 Adjustments to accruals 131 (472 ) (341 ) Cash payments (4,189 ) — (4,189 ) Ending balance, September 30, 2020 $ 1,360 $ — $ 1,360 |
Business Acquisitions and Dispo
Business Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions and Dispositions | 13. Business Acquisitions and Dispositions Dispositions On June 1, 2020, the Company sold its 51% interest in Crawford Compliance Inc. to a third party in exchange for a note receivable. T On June 12, 2020, the Company sold its 51% interest in Lloyd Warwick International (“LWI”) to a third party for cash proceeds of $19,600,000 and payment of $3,600,000 to settle intercompany indebtedness. The Company recognized an additional $700,000 related to net working capital adjustments under the terms of the acquisition agreement, which increased the purchase price to $20,300,000. Due to the Company’s two-month reporting lag for reporting its international results, this disposition was recorded in the quarter ended September 30, 2020. The net working capital adjustment of $700,000 is included in "Prepaid expenses and other current assets on the Company's unaudited Condensed Consolidated Balance Sheets Acquisitions On July 21, 2020, the Company acquired the remaining 15% membership interests of WeGoLook, LLC for $310,000. The Company accounted for this subsequent acquisition as an equity transaction in accordance with ASC 810-10, “Consolidation”. The non-compete agreements with the former minority members were terminated under the terms of the purchase agreement. As a result, the Company recognized $1,100,000 of accelerated amortization on the non-compete agreement in the third quarter of 2020. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On October 1, 2020, the Company acquired the remaining 85% equity interests in Crawford Carvallo and its subsidiaries. Crawford Carvallo is a leading provider of loss adjusting, claims management solutions and legal services in Chile. The Company held a 15% interest in Crawford Carvallo prior to this acquisition. The purchase price includes an initial lump-sum payment of $11,600,000 and a maximum of $11,700,000 payable over the next six years based on achieving certain EBITDA performance goals as set forth in the purchase agreement. The acquisition was funded primarily through additional borrowings under the Company's credit facility. The Company does not anticipate the operations of Crawford Carvallo will have a material impact on the Company’s consolidated results of operations or its earnings per share during 2020. On November 1, 2020, the Company acquired 100% of HBA Group in Australia, including 100% of the stock in each of HBA Group’s entities HBA Legal, Pillion and Paratus. HBA Legal is a legal services provider that will complement the Company’s Crawford TPA Solutions segment in Australia. The purchase price includes an initial lump-sum payment of $5,000,000 and a maximum $3,200,000 payable over the next four years based on achieving certain revenue and EBITDA performance goals. These acquisitions will be accounted for under the guidance of ASC 805-10, as a business combination under the acquisition method. Based upon the timing of these acquisitions, the initial accounting for the acquisitions is not yet complete as the Company gathers additional information related to the assets acquired, liabilities and noncontrolling interests assumed, including intangible assets, other assets, accrued liabilities, deferred taxes, and uncertain tax positions. The Company is in the process of obtaining final third-party valuations of certain intangible assets. The preliminary application of acquisition accounting to the assets acquired, and liabilities and noncontrolling interests assumed, as well as the results of operations of Crawford Carvallo including noncontrolling interest, will first be reflected in the Company's audited consolidated financial statements as of and for the year ending December 31, 2020. The preliminary application of acquisition accounting to the assets acquired, and liabilities assumed, as well as the results of operations of HBA Group, will first be reflected in the Company's consolidated financial statements as of and for the quarter ending March 31, 2021. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the "SEC"). Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Due to the impact of weather activity and the continued economic uncertainty resulting from the COVID-19 pandemic, the Company's operating results for the three and nine months ended September 30, 2020 and financial position as of September 30, 2020 are not necessarily indicative of the results or financial position that may be expected for the year ending December 31, 2020 or for other future periods. The financial results from the Company's operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines, are reported and consolidated on a two-month delayed basis (fiscal year-end of October 31) as permitted by GAAP in order to provide sufficient time for accumulation of their results. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments (consisting only of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. There have been no material changes to our significant accounting policies and estimates from those disclosed in the Company's financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2019 other than as disclosed herein. |
Reclassification | Certain prior period amounts among the segments have been reclassified to conform to the current presentation. These reclassifications had no effect on the Company's reported consolidated results. Significant intercompany transactions have been eliminated in consolidation. |
Consolidation, Variable Interest Entity, Policy | The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and also considered a variable interest entity ("VIE") of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan. |
Consolidation, Noncontrolling Interests and Redeemable Noncontrolling Interests, Policy | Noncontrolling interests represent the minority shareholders' share of the net income or loss and shareholders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the unaudited Condensed Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' investment as "Redeemable Noncontrolling Interests" and are recorded at either their initial fair value plus any profits or losses or estimated redemption value if an adjustment is required. On July 21, 2020, the Company acquired the remaining 15% membership interests of WeGoLook, LLC |
CARES Act of 2020 | On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company has not applied for governmental loans from the CARES Act or any other governmental programs to support the Company’s operations. The Company is taking advantage of certain aspects of the CARES Act such as the deferral of payroll tax deposits. |
Canada Emergency Wage Subsidy Program of 2020 | The Canadian government enacted the Canada Emergency Wage Subsidy (“CEWS”) in 2020 to provide a wage subsidy to employers that suffered reductions in revenue resulting from the COVID-19 pandemic. The Company met the eligibility criteria to receive the wage subsidy in the second and third quarters. The wage subsidy is included in "Costs of services provided, before reimbursements” or “Selling, general, and administrative expenses” on the Company's unaudited Condensed Consolidated Statements of Operations, depending on the location of the employees, and is recorded as a reduction of compensation expense once the application is filed. The Company recognized $4,711,000 and $9,056,000 as a reduction of compensation expense for the three and nine months ended September 30, 2020, respectively. In July 2020, the Canadian government announced an extension of this program that may benefit the Company through end of 2020. The Company will continue to evaluate the impact of government subsidies each period. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of New Accounting Standards Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" together with its subsequent related amendments in 2018 and 2019, collectively referred to as Topic 326. Topic 326 replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value, including trade receivables, with gains and losses recognized through income. The Company estimates its expected credit losses based on past experience, current conditions and reasonable and supportable forecasts affecting collectability of these assets. We evaluate the risks related to our trade receivables and contract assets by considering customer type, geography, and aging. Topic 326 is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted Topic 326 on January 1, 2020 using a modified retrospective approach. As a result of adopting Topic 326, the Company recognized a cumulative effect adjustment to decrease the opening balance of retained earnings by $607,000. The Company has included assumptions related to expected credit losses from the impact of the COVID-19 pandemic in its results of operations for the three months and nine months ended September 30, 2020. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This update amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, by removing and modifying certain disclosure requirements and adding others. This update removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. This update requires the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, this update clarifies that transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities are required to be disclosed. These updates are effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on disclosures related to fair value measurement. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40).” This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. This update also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Further, this update requires the presentation of the amortization expense in the statement of income, the presentation of the capitalized costs on the statement of financial position and the classification of payments for capitalized costs in the statement of cash flows related to capitalized implementation costs to be treated the same as the fees for service component of the associated hosting arrangement. The update is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on its results of operation, financial condition or cash flows. Pending Adoption of Recently Issued Accounting Standards Compensation-Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)." This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This update removes certain disclosure requirements including, but not limited to, the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the amount and timing of plan assets expected to be returned to the employer. This update requires the disclosure of the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This update also clarifies requirements for entities that provide aggregate disclosures for two or more plans. The update is effective for annual periods beginning after December 15, 2020, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on disclosures related to its retirement plans. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 amends ASC 740 to simplify the accounting for income taxes by removing certain exceptions for foreign equity investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in the accounting standard under the FASB’s simplification initiative. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Upon adoption, the amendments in ASU 2019-12 should be applied on a prospective basis to all periods presented. Early adoption is permitted. The Company is currently assessing the impact of the adoption of the new guidance. |
Lease Commitments | The Company determines if an arrangement is a lease at inception. The Company's and its subsidiaries' leases include office space, computer equipment, and automobiles under operating and finance leases. These lease agreements have remaining lease terms of 1 to 11 years. Some of these lease agreements include options to extend the leases for up to 5 years, options to terminate the leases within 1 year, rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement. |
Earnings per Share | The Company computes earnings per share of its non-voting Class A Common Stock ("CRD-A") and voting Class B Common Stock ("CRD-B") using the two-class method, which allocates the undistributed earnings in each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on the CRD-A shares than on the CRD-B shares, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. During the second and third quarters of 2020, the Board of Directors declared the same dividend on CRD-A and CRD-B, while during the first quarter of 2020, and the first three quarters of 2019, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | The following table presents Crawford Claims Solutions revenues before reimbursements disaggregated by geography for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 U.S. $ 51,716 $ 35,982 $ 117,488 $ 103,743 U.K. 15,394 15,123 47,033 47,325 Australia 13,066 11,886 35,211 35,220 Canada 8,272 12,008 26,382 36,276 Europe 6,537 7,429 20,734 21,265 Rest of World 3,384 3,822 10,559 11,743 Total Crawford Claims Solutions Revenues before Reimbursements $ 98,369 $ 86,250 $ 257,407 $ 255,572 The following tables present Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 35,133 $ 35,593 $ 70,726 $ 37,352 $ 43,024 $ 80,376 U.K. 2,522 — 2,522 2,730 — 2,730 Canada 6,415 — 6,415 8,210 — 8,210 Europe and Rest of World 7,547 — 7,547 8,179 — 8,179 Total Crawford TPA Solutions Revenues before Reimbursements $ 51,617 $ 35,593 $ 87,210 $ 56,471 $ 43,024 $ 99,495 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 105,755 $ 112,237 $ 217,992 $ 109,700 $ 127,691 $ 237,391 U.K. 8,150 — 8,150 8,243 — 8,243 Canada 19,924 — 19,924 25,466 — 25,466 Europe and Rest of World 24,804 — 24,804 25,707 — 25,707 Total Crawford TPA Solutions Revenues before Reimbursements $ 158,633 $ 112,237 $ 270,870 $ 169,116 $ 127,691 $ 296,807 The following table presents Crawford Specialty Solutions revenues before reimbursements disaggregated by service line and geography for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 10,210 $ 20,075 $ 30,285 $ 10,202 $ 19,617 $ 29,819 U.K. 10,805 1,339 12,144 11,728 1,263 12,991 Australia 5,789 333 6,122 5,935 222 6,157 Canada 5,793 1,787 7,580 6,294 1,838 8,132 Europe 5,090 9 5,099 5,141 2 5,143 Rest of World 6,315 — 6,315 6,690 — 6,690 Total Crawford Specialty Solutions Revenues before Reimbursements $ 44,002 $ 23,543 $ 67,545 $ 45,990 $ 22,942 $ 68,932 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 30,311 $ 53,271 $ 83,582 $ 30,888 $ 60,270 $ 91,158 U.K. 34,835 4,984 39,819 34,444 3,955 38,399 Australia 16,379 651 17,030 16,881 608 17,489 Canada 17,549 4,484 22,033 19,522 5,773 25,295 Europe 15,354 24 15,378 14,793 3 14,796 Rest of World 18,952 — 18,952 19,100 — 19,100 Total Crawford Specialty Solutions Revenues before Reimbursements $ 133,380 $ 63,414 $ 196,794 $ 135,628 $ 70,609 $ 206,237 |
Schedule of Customer Contract Liabilities | The table below presents the deferred revenues balance as of January 1, 2020 and the significant activity affecting deferred revenues during the nine months ended September 30, 2020: (In Thousands) Customer Contract Liabilities Deferred Revenue Balance at January 1, 2020 $ 52,368 Quarterly additions 22,226 Revenue recognized from the prior periods (14,293 ) Revenue recognized from current quarter additions (4,994 ) Balance as of March 31, 2020 $ 55,307 Quarterly additions 15,389 Revenue recognized from the prior periods (15,407 ) Revenue recognized from current quarter additions (3,568 ) Balance as of June 30, 2020 $ 51,721 Quarterly additions 17,600 Revenue recognized from the prior periods (14,134 ) Revenue recognized from current quarter additions (4,137 ) Balance as of September 30, 2020 $ 51,050 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease-Related Assets and Liabilities | The following table presents the lease-related assets and liabilities recorded on the Company's unaudited Condensed Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet September 30, 2020 December 31, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 107,956 $ 102,354 Liabilities: Current operating lease liabilities Current operating lease liabilities 31,918 30,765 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 91,963 87,064 Total operating lease liabilities $ 123,881 $ 117,829 Weighted-Average Remaining Lease Term 6.04 Years 5.72 years Weighted-Average Discount Rate (1) 5.3 % 5.4 % (1) Upon adoption of Topic 842, discount rates used for existing leases were established at the transition date. |
Lease Cost | The components of operating lease costs within the Company's unaudited Condensed Consolidated Statements of Operations consisted of the following for the three and nine months ended September 30, 2020: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Operating lease cost $ 9,381 $ 9,298 $ 28,770 $ 28,410 Variable lease cost 2,094 2,078 6,317 5,849 Sublease income 982 1,114 3,085 3,086 Supplemental cash flow information related to operating leases for the three and nine months ended September 30, 2020 were as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 9,418 $ 9,806 $ 27,933 $ 29,220 Right-of-use assets obtained in exchange for lease obligations (1) $ 8,204 $ 1,294 $ 31,061 $ 13,310 (1) Amount excludes $122,300,000 of right-of-use assets recognized upon adoption of Topic 842. |
Operating Lease Maturities | Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows: (in thousands) September 30, 2020 2020 $ 8,746 2021 36,930 2022 23,696 2023 16,422 2024 13,329 Thereafter 46,586 Total undiscounted lease payments 145,709 Less imputed interest (21,828 ) Present value of future lease payments $ 123,881 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [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 nine months ended September 30, 2020 and 2019 included the following components: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Service cost $ 315 $ 332 $ 946 $ 1,004 Interest cost 4,092 5,565 12,330 16,763 Expected return on assets (6,936 ) (7,371 ) (20,899 ) (22,214 ) Amortization of actuarial loss 2,614 2,689 7,848 8,073 Net periodic cost $ 85 $ 1,215 $ 225 $ 3,626 |
Net Income Attributable to Sh_2
Net Income Attributable to Shareholders of Crawford & Company per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (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 $ 12,839 $ 9,431 $ 4,439 $ 3,308 $ 6,857 $ 5,053 $ 5,654 $ 4,249 Dividends paid 1,226 901 2,157 1,142 4,281 2,705 6,449 3,445 Net income attributable to common shareholders, basic $ 14,065 $ 10,332 $ 6,596 $ 4,450 $ 11,138 $ 7,758 $ 12,103 $ 7,694 Denominator: Weighted-average common shares outstanding, basic 30,643 22,510 30,645 22,831 30,575 22,533 30,701 23,071 Earnings per share - basic $ 0.46 $ 0.46 $ 0.22 $ 0.19 $ 0.36 $ 0.34 $ 0.39 $ 0.33 |
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 Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (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 $ 12,891 $ 9,379 $ 4,470 $ 3,277 $ 6,879 $ 5,031 $ 5,687 $ 4,216 Dividends paid 1,226 901 2,157 1,142 4,281 2,705 6,449 3,445 Net income attributable to common shareholders, diluted $ 14,117 $ 10,280 $ 6,627 $ 4,419 $ 11,160 $ 7,736 $ 12,136 $ 7,661 Denominator: Weighted-average common shares outstanding, basic 30,643 22,510 30,645 22,831 30,575 22,533 30,701 23,071 Weighted-average effect of dilutive securities 294 — 495 — 235 — 415 — Weighted-average common shares outstanding, diluted 30,937 22,510 31,140 22,831 30,810 22,533 31,116 23,071 Earnings per share - diluted $ 0.46 $ 0.46 $ 0.21 $ 0.19 $ 0.36 $ 0.34 $ 0.39 $ 0.33 |
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 Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Shares underlying stock options excluded 2,014 572 2,014 592 Performance stock grants excluded because performance conditions have not been met (1) 1,335 1,094 1,197 1,041 (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 nine months ended September 30, 2020 and 2019. These shares are included from their dates of issuance in the weighted-average common shares used to compute basic and diluted earnings per share for CRD-A in the table above. There were no shares of CRD-B issued during any of these periods. Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 CRD-A issued under the Non-Employee Director Stock Plan 3 2 70 87 CRD-A issued under the U.K. ShareSave Scheme 1 14 2 280 CRD-A issued under the Executive Stock Bonus Plan — — — 30 CRD-A issued under the 2016 Omnibus Stock and Incentive Plan — 3 — 62 CRD-A issued under the Employee Stock Purchase Plan 114 131 114 131 CRD-A issued under the International Plan 4 4 4 4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's unaudited condensed consolidated financial statements were as follows: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (41,591 ) $ (167,244 ) $ (208,835 ) $ (35,850 ) $ (171,057 ) $ (206,907 ) Other comprehensive loss before reclassifications 11,910 — 11,910 5,593 — 5,593 Amounts reclassified from accumulated other comprehensive income — 2,036 2,036 — 5,849 5,849 Net current period other comprehensive loss 11,910 2,036 13,946 5,593 5,849 11,442 (Disposition)/acquisition of noncontrolling interest (113 ) — (113 ) 463 — 463 Ending balance $ (29,794 ) $ (165,208 ) $ (195,002 ) $ (29,794 ) $ (165,208 ) $ (195,002 ) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (in thousands) Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Foreign currency translation adjustments Retirement liabilities (1) AOCL attributable to shareholders of Crawford & Company Beginning balance $ (35,531 ) $ (176,103 ) $ (211,634 ) $ (36,352 ) $ (180,095 ) $ (216,447 ) Other comprehensive loss before reclassifications (2,472 ) — (2,472 ) (1,651 ) — (1,651 ) Amounts reclassified from accumulated other comprehensive income — 1,984 1,984 — 5,976 5,976 Net current period other comprehensive (loss) income (2,472 ) 1,984 (488 ) (1,651 ) 5,976 4,325 Ending balance $ (38,003 ) $ (174,119 ) $ (212,122 ) $ (38,003 ) $ (174,119 ) $ (212,122 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other Expense, net" in the Company's unaudited Condensed Consolidated Statements of Operations. See Note 6, "Defined Benefit Pension Plans" for additional details. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Fair Value Measurements at September 30, 2020 Significant Other Significant Quoted Prices in Observable Unobservable Active Markets Inputs Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 10,027 $ 10,027 $ — $ — Liabilities: Contingent earnout liability (2) 386 — — 386 (1) The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included in the Company's unaudited Condensed Consolidated Balance Sheets as "Cash and cash equivalents." (2) The contingent earnout liability relates to business acquisitions by the Crawford Specialty Solutions operating segment. The fair value of the contingent earnout liability was estimated using internally-prepared revenue projections, which is Level 3 data, with the maximum possible earnout of $551,000. As such, the fair value is not expected to vary materially. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's unaudited Condensed Consolidated Balance Sheets, based upon the term of each contingent earnout agreement. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit from Segments to Consolidated | Financial information for the three and nine months ended September 30, 2020 and 2019 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Revenues: Crawford Claims Solutions $ 98,369 $ 86,250 $ 257,407 $ 255,572 Crawford TPA Solutions 87,210 99,495 270,870 296,807 Crawford Specialty Solutions 67,545 68,932 196,794 206,237 Total segment revenues before reimbursements 253,124 254,677 725,071 758,616 Reimbursements 8,545 11,165 25,519 31,449 Total revenues $ 261,669 $ 265,842 $ 750,590 $ 790,065 Segment Operating Earnings Crawford Claims Solutions $ 7,219 $ 2,661 $ 6,329 $ 4,058 Crawford TPA Solutions 4,414 9,347 13,870 21,106 Crawford Specialty Solutions 17,390 13,301 38,340 38,108 Total segment operating earnings 29,023 25,309 58,539 63,272 (Deduct)/Add: Unallocated corporate and shared costs, net (968 ) (1,649 ) (5,227 ) (2,393 ) Net corporate interest expense (1,599 ) (3,162 ) (6,275 ) (8,346 ) Stock option expense (457 ) (450 ) (1,033 ) (1,348 ) Amortization of customer-relationship intangible assets (3,665 ) (2,829 ) (9,153 ) (8,429 ) Goodwill impairment — — (17,674 ) — Restructuring costs — — (5,714 ) — Arbitration and claim settlements — (1,200 ) — (12,552 ) Gain on disposition of businesses, net 14,104 — 13,763 — Income before income taxes $ 36,438 $ 16,019 $ 27,226 $ 30,204 |
Schedule of Revenues By Major Service Line | Revenues before reimbursements by major service line in the Crawford TPA Solutions segment, which operates under the Broadspire brand globally, and the Crawford Specialty Solutions segment are shown in the following table. The Company considers all Crawford Claims Solutions revenues to be derived from one service line. Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Crawford TPA Solutions Claims Management Services $ 51,617 $ 56,471 $ 158,633 $ 169,116 Medical Management Services 35,593 43,024 112,237 127,691 Total Revenues before Reimbursements--Crawford TPA Solutions $ 87,210 $ 99,495 $ 270,870 $ 296,807 Crawford Specialty Solutions Global Technical Services $ 44,002 $ 45,990 $ 133,380 $ 135,628 Contractor Connection 23,543 22,942 63,414 70,609 Total Revenues before Reimbursements--Crawford Specialty Solutions $ 67,545 $ 68,932 $ 196,794 $ 206,237 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Related Costs | The following table shows the restructuring costs incurred by type of activity: Three months ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Personnel related costs $ — $ — $ 5,076 $ — Asset impairments — — 638 — Total restructuring costs $ — $ — $ 5,714 $ — |
Schedule of Restructuring Reserve Liabilities by Type | The rollforward of these liabilities to September 30, 2020 were as follows: Three months ended September 30, 2020 (in thousands) Accrued compensation and related costs Other accrued liabilities Total Beginning balance, June 30, 2020 $ 2,427 $ 5 $ 2,432 Additions — — — Adjustments to accruals 799 (5 ) 794 Cash payments (1,866 ) — (1,866 ) Ending balance, September 30, 2020 $ 1,360 $ — $ 1,360 Nine Months Ended September 30, 2020 Accrued compensation and related costs Other accrued liabilities Total Beginning balance, December 31, 2019 $ 342 $ 472 $ 814 Additions 5,076 — 5,076 Adjustments to accruals 131 (472 ) (341 ) Cash payments (4,189 ) — (4,189 ) Ending balance, September 30, 2020 $ 1,360 $ — $ 1,360 |
Basis of Presentation - VIE - A
Basis of Presentation - VIE - Additional Information (Details) - Primary Beneficiary - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity | ||
Liabilities of the deferred compensation plan | $ 8,273,000 | $ 8,428,000 |
Assets held in the related rabbi trust | $ 16,247,000 | $ 16,527,000 |
Basis of Presentation - Acquisi
Basis of Presentation - Acquisition - Additional Information (Details) | Jun. 12, 2020 | Sep. 30, 2020 | Jul. 21, 2020 |
LWI | |||
Variable Interest Entity | |||
Ownership percentage | 51.00% | 51.00% | |
WeGoLook, LC | |||
Variable Interest Entity | |||
Membership interest percentage | 15.00% |
Basis of Presentation - Canada
Basis of Presentation - Canada Emergency Wage Subsidy Program of 2020 - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Canada Emergency Wage Subsidy Program of 2020 | ||
Recognition of reduction in compensation expense | $ 4,711,000 | $ 9,056,000 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards - Additional Information (Details) - USD ($) | Jan. 01, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | [1] |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | $ 182,996,000 | $ 159,317,000 | |||
Adoption of Topic 326 | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||
Adoption of Topic 326 | Retained Earnings | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | $ 607,000 | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||
[1] | Derived from the audited Consolidated Balance Sheet |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Accounts receivable, days sales outstanding | 2 months |
Billing after contract completion, years | 1 year |
Revenue, remaining performance obligation | $ 88,565,000 |
Performance obligations to be recognized as revenues within one year, percent | 70.00% |
Revenue from contracts with customers, practical expedient, consideration adjustment period | 1 year |
Accounts payable days payable outstanding | 1 year |
Minimum | Crawford TPA Solutions | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 1 year |
Maximum | Crawford TPA Solutions | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 2 years |
Claims Management Services | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 1 year |
Revenue remaining performance obligation expected timing of satisfaction explanation | The Company's deferred revenues for claims handled for one or two years are not as sensitive to changes in claim closing rates since the performance obligations are satisfied within a fixed length of time |
Revenue from contracts with customers, duration, average time to close case from time of referral | 5 years |
Percentage of closed cases | 98.00% |
Claims Management Services | Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 1 year |
Claims Management Services | Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 2 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 261,669 | $ 265,842 | $ 750,590 | $ 790,065 |
Crawford Claims Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 98,369 | 86,250 | 257,407 | 255,572 |
Crawford Claims Solutions | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 51,716 | 35,982 | 117,488 | 103,743 |
Crawford Claims Solutions | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,394 | 15,123 | 47,033 | 47,325 |
Crawford Claims Solutions | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,066 | 11,886 | 35,211 | 35,220 |
Crawford Claims Solutions | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,272 | 12,008 | 26,382 | 36,276 |
Crawford Claims Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,537 | 7,429 | 20,734 | 21,265 |
Crawford Claims Solutions | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,384 | 3,822 | 10,559 | 11,743 |
Crawford TPA Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 87,210 | 99,495 | 270,870 | 296,807 |
Crawford TPA Solutions | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70,726 | 80,376 | 217,992 | 237,391 |
Crawford TPA Solutions | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,522 | 2,730 | 8,150 | 8,243 |
Crawford TPA Solutions | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,415 | 8,210 | 19,924 | 25,466 |
Crawford TPA Solutions | Europe and Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,547 | 8,179 | 24,804 | 25,707 |
Crawford TPA Solutions | Claims Management Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 51,617 | 56,471 | 158,633 | 169,116 |
Crawford TPA Solutions | Claims Management Services | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,133 | 37,352 | 105,755 | 109,700 |
Crawford TPA Solutions | Claims Management Services | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,522 | 2,730 | 8,150 | 8,243 |
Crawford TPA Solutions | Claims Management Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,415 | 8,210 | 19,924 | 25,466 |
Crawford TPA Solutions | Claims Management Services | Europe and Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,547 | 8,179 | 24,804 | 25,707 |
Crawford TPA Solutions | Medical Management Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,593 | 43,024 | 112,237 | 127,691 |
Crawford TPA Solutions | Medical Management Services | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,593 | 43,024 | 112,237 | 127,691 |
Crawford TPA Solutions | Medical Management Services | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Crawford TPA Solutions | Medical Management Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Crawford TPA Solutions | Medical Management Services | Europe and Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Crawford Specialty Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 67,545 | 68,932 | 196,794 | 206,237 |
Crawford Specialty Solutions | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30,285 | 29,819 | 83,582 | 91,158 |
Crawford Specialty Solutions | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,144 | 12,991 | 39,819 | 38,399 |
Crawford Specialty Solutions | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,122 | 6,157 | 17,030 | 17,489 |
Crawford Specialty Solutions | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,580 | 8,132 | 22,033 | 25,295 |
Crawford Specialty Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,099 | 5,143 | 15,378 | 14,796 |
Crawford Specialty Solutions | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,315 | 6,690 | 18,952 | 19,100 |
Crawford Specialty Solutions | Global Technical Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 44,002 | 45,990 | 133,380 | 135,628 |
Crawford Specialty Solutions | Global Technical Services | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,210 | 10,202 | 30,311 | 30,888 |
Crawford Specialty Solutions | Global Technical Services | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,805 | 11,728 | 34,835 | 34,444 |
Crawford Specialty Solutions | Global Technical Services | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,789 | 5,935 | 16,379 | 16,881 |
Crawford Specialty Solutions | Global Technical Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,793 | 6,294 | 17,549 | 19,522 |
Crawford Specialty Solutions | Global Technical Services | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,090 | 5,141 | 15,354 | 14,793 |
Crawford Specialty Solutions | Global Technical Services | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,315 | 6,690 | 18,952 | 19,100 |
Crawford Specialty Solutions | Contractor Connection | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,543 | 22,942 | 63,414 | 70,609 |
Crawford Specialty Solutions | Contractor Connection | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,075 | 19,617 | 53,271 | 60,270 |
Crawford Specialty Solutions | Contractor Connection | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,339 | 1,263 | 4,984 | 3,955 |
Crawford Specialty Solutions | Contractor Connection | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 333 | 222 | 651 | 608 |
Crawford Specialty Solutions | Contractor Connection | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,787 | 1,838 | 4,484 | 5,773 |
Crawford Specialty Solutions | Contractor Connection | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9 | 2 | 24 | 3 |
Crawford Specialty Solutions | Contractor Connection | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Customer Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Customer Contract Liabilities | |||
Beginning balance | $ 51,721 | $ 55,307 | $ 52,368 |
Quarterly additions | 17,600 | 15,389 | 22,226 |
Revenue recognized from the prior periods | (14,134) | (15,407) | (14,293) |
Revenue recognized from current quarter additions | (4,137) | (3,568) | (4,994) |
Ending balance | $ 51,050 | $ 51,721 | $ 55,307 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | ||
Lessee, Lease, Description [Line Items] | |||||
Operating lease ROU asset | $ 107,956,000 | $ 102,354,000 | [1] | $ 122,300,000 | |
Lease liability | $ 123,881,000 | $ 117,829,000 | |||
Renewal term | 5 years | ||||
Termination period | 1 year | ||||
Sublease income, remainder of 2020 | $ 1,100,000 | ||||
Sublease income, 2021 | 4,200,000 | ||||
Sublease income, 2022 | 100,000 | ||||
Leases, not yet commenced | $ 2,395,000 | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term | 1 year | ||||
Lease term, not yet commenced | 5 years | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term | 11 years | ||||
Lease term, not yet commenced | 10 years | ||||
Allen, TX | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease ROU asset | $ 11,455,000 | ||||
Lease liability | $ 11,455,000 | ||||
[1] | Derived from the audited Consolidated Balance Sheet |
Lease Commitments - Lease-Relat
Lease Commitments - Lease-Related Assets and Liabilities (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||||
Operating lease right-of-use assets, net | $ 107,956,000 | $ 102,354,000 | [1] | $ 122,300,000 |
Current operating lease liabilities | 31,918,000 | 30,765,000 | [1] | |
Noncurrent operating lease liabilities | 91,963,000 | 87,064,000 | [1] | |
Total operating lease liabilities | $ 123,881,000 | $ 117,829,000 | ||
Weighted-Average Remaining Lease Term | 6 years 14 days | 5 years 8 months 19 days | ||
Weighted-Average Discount Rate | 5.30% | 5.40% | ||
[1] | Derived from the audited Consolidated Balance Sheet |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 9,381 | $ 9,298 | $ 28,770 | $ 28,410 |
Variable lease cost | 2,094 | 2,078 | 6,317 | 5,849 |
Sublease income | $ 982 | $ 1,114 | $ 3,085 | $ 3,086 |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | [1] | Jan. 01, 2019 | |
Leases [Abstract] | |||||||
Operating cash flows for operating leases | $ 9,418,000 | $ 9,806,000 | $ 27,933,000 | $ 29,220,000 | |||
Right-of-use assets obtained in exchange for lease obligations | 8,204,000 | $ 1,294,000 | 31,061,000 | $ 13,310,000 | |||
Operating lease right-of-use assets, net | $ 107,956,000 | $ 107,956,000 | $ 102,354,000 | $ 122,300,000 | |||
[1] | Derived from the audited Consolidated Balance Sheet |
Lease Commitments - Operating L
Lease Commitments - Operating Lease Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 8,746 | |
2021 | 36,930 | |
2022 | 23,696 | |
2023 | 16,422 | |
2024 | 13,329 | |
Thereafter | 46,586 | |
Total undiscounted lease payments | 145,709 | |
Less imputed interest | (21,828) | |
Present value of future lease payments | $ 123,881 | $ 117,829 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
(Benefit) provision for income taxes | $ 11,729 | $ 5,328 | $ 9,554 | $ 11,120 |
Effective income tax rate reconciliation, percent | 35.10% | 36.80% |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Schedule of Defined Benefit Plans Disclosures (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 315 | $ 332 | $ 946 | $ 1,004 |
Interest cost | 4,092 | 5,565 | 12,330 | 16,763 |
Expected return on assets | (6,936) | (7,371) | (20,899) | (22,214) |
Amortization of actuarial loss | 2,614 | 2,689 | 7,848 | 8,073 |
Net periodic cost | $ 85 | $ 1,215 | $ 225 | $ 3,626 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost, non-service cost | $ (230,000) | $ 883,000 | $ (721,000) | $ 2,622,000 |
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | 3,000,000 | 0 | ||
Additional contribution by employer | $ 6,000,000 | |||
U.K. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | 455,000 | $ 527,000 | ||
Additional contribution by employer | $ 0 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Class A Non-Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 12,839 | $ 4,439 | $ 6,857 | $ 5,654 |
Dividends paid | 1,226 | 2,157 | 4,281 | 6,449 |
Net income attributable to common shareholders, basic | $ 14,065 | $ 6,596 | $ 11,138 | $ 12,103 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 30,643 | 30,645 | 30,575 | 30,701 |
Earnings per share - basic | $ 0.46 | $ 0.22 | $ 0.36 | $ 0.39 |
Class B Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 9,431 | $ 3,308 | $ 5,053 | $ 4,249 |
Dividends paid | 901 | 1,142 | 2,705 | 3,445 |
Net income attributable to common shareholders, basic | $ 10,332 | $ 4,450 | $ 7,758 | $ 7,694 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 22,510 | 22,831 | 22,533 | 23,071 |
Earnings per share - basic | $ 0.46 | $ 0.19 | $ 0.34 | $ 0.33 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Class A Non-Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 12,891 | $ 4,470 | $ 6,879 | $ 5,687 |
Dividends paid | 1,226 | 2,157 | 4,281 | 6,449 |
Net income attributable to common shareholders, diluted | $ 14,117 | $ 6,627 | $ 11,160 | $ 12,136 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 30,643 | 30,645 | 30,575 | 30,701 |
Weighted-average effect of dilutive securities | 294 | 495 | 235 | 415 |
Weighted-average common shares outstanding, diluted | 30,937 | 31,140 | 30,810 | 31,116 |
Earnings per share - diluted | $ 0.46 | $ 0.21 | $ 0.36 | $ 0.39 |
Class B Voting | ||||
Numerator: | ||||
Allocation of undistributed earnings | $ 9,379 | $ 3,277 | $ 5,031 | $ 4,216 |
Dividends paid | 901 | 1,142 | 2,705 | 3,445 |
Net income attributable to common shareholders, diluted | $ 10,280 | $ 4,419 | $ 7,736 | $ 7,661 |
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||
Weighted-average common shares outstanding, basic | 22,510 | 22,831 | 22,533 | 23,071 |
Weighted-average common shares outstanding, diluted | 22,510 | 22,831 | 22,533 | 23,071 |
Earnings per share - diluted | $ 0.46 | $ 0.19 | $ 0.34 | $ 0.33 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Shares Underlying Stock Options Excluded | ||||
Antidilutive Securities Excluded from Computation of (Loss) Earnings Per Share | ||||
Shares excluded from diluted earnings per share (shares) | 2,014 | 572 | 2,014 | 592 |
Performance Stock Grants Excluded because Performance Conditions Have Not Been Met | ||||
Antidilutive Securities Excluded from Computation of (Loss) Earnings Per Share | ||||
Shares excluded from diluted earnings per share (shares) | 1,335 | 1,094 | 1,197 | 1,041 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CRD-A Issued under the Non-Employee Director Stock Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period | 3 | 2 | 70 | 87 |
CRD-A Issued under the U.K. ShareSave Scheme | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period | 1 | 14 | 2 | 280 |
CRD-A Issued under the Executive Stock Bonus Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period | 30 | |||
2016 Omnibus Stock and Incentive Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period | 3 | 62 | ||
CRD-A Issued under the Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period | 114 | 131 | 114 | 131 |
CRD-A Issued under the International Plan | ||||
Share-based Compensation Arrangement | ||||
Stock issued during period | 4 | 4 | 4 | 4 |
Net Income Attributable to Sh_7
Net Income Attributable to Shareholders of Crawford & Company per Common Share - Additional Information (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | May 09, 2019 | Jul. 29, 2017 | |
Class A Non-Voting | ||||||
Equity, Class of Treasury Stock | ||||||
Shares repurchased (shares) | 0 | 401,892 | 155,351 | 1,103,398 | ||
Average cost (USD per share) | $ 9.72 | $ 8.42 | $ 9.33 | |||
Class B Voting | ||||||
Equity, Class of Treasury Stock | ||||||
Shares repurchased (shares) | 0 | 231,137 | 161,459 | 1,680,377 | ||
Average cost (USD per share) | $ 9.43 | $ 8.42 | $ 9.16 | |||
Repurchase Authorization 2017 | Common Stock | ||||||
Equity, Class of Treasury Stock | ||||||
Number of shares authorized to be repurchased (shares) | 2,000,000 | |||||
Repurchase Authorization 2019 | Common Stock | ||||||
Equity, Class of Treasury Stock | ||||||
Number of shares authorized to be repurchased (shares) | 2,000,000 | |||||
Number of shares remaining to be repurchased (shares) | 642,097 | 642,097 | ||||
Stock Purchase Agreement | Class A Non-Voting | ||||||
Equity, Class of Treasury Stock | ||||||
Shares repurchased (shares) | 421,427 | |||||
Stock Purchase Agreement | Class B Voting | ||||||
Equity, Class of Treasury Stock | ||||||
Shares repurchased (shares) | 1,376,889 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Adjustment for long-term intercompany transactions, net of tax | $ 793,000 | $ (4,150,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | $ 149,620 | $ 164,399 | $ 162,567 | [1] | $ 175,446 | |
Ending balance | 182,286 | 167,033 | 182,286 | 167,033 | ||
Foreign Currency Translation Adjustments | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | (41,591) | (35,531) | (35,850) | (36,352) | ||
Other comprehensive loss before reclassifications | 11,910 | (2,472) | 5,593 | (1,651) | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||
Net current period other comprehensive (loss) income | 11,910 | (2,472) | 5,593 | (1,651) | ||
(Disposition)/acquisition of noncontrolling interest | (113) | 463 | ||||
Ending balance | (29,794) | (38,003) | (29,794) | (38,003) | ||
Retirement Liabilities | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | [2] | (167,244) | (176,103) | (171,057) | (180,095) | |
Other comprehensive loss before reclassifications | [2] | 0 | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | [2] | 2,036 | 1,984 | 5,849 | 5,976 | |
Net current period other comprehensive (loss) income | [2] | 2,036 | 1,984 | 5,849 | 5,976 | |
(Disposition)/acquisition of noncontrolling interest | [2] | 0 | 0 | |||
Ending balance | [2] | (165,208) | (174,119) | (165,208) | (174,119) | |
AOCL Attributable to Shareholders of Crawford & Company | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | (208,835) | (211,634) | (206,907) | (216,447) | ||
Other comprehensive loss before reclassifications | 11,910 | (2,472) | 5,593 | (1,651) | ||
Amounts reclassified from accumulated other comprehensive income | 2,036 | 1,984 | 5,849 | 5,976 | ||
Net current period other comprehensive (loss) income | 13,946 | (488) | 11,442 | 4,325 | ||
(Disposition)/acquisition of noncontrolling interest | (113) | 463 | ||||
Ending balance | $ (195,002) | $ (212,122) | $ (195,002) | $ (212,122) | ||
[1] | Derived from the audited Consolidated Balance Sheet | |||||
[2] | Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Other Expense, 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 | Sep. 30, 2020USD ($) |
Liabilities: | |
Contingent earnout liability | $ 386 |
Money Market Funds | |
ASSETS | |
Money market funds | 10,027 |
Quoted Prices in Active Markets (Level 1) | |
Liabilities: | |
Contingent earnout liability | 0 |
Quoted Prices in Active Markets (Level 1) | Money Market Funds | |
ASSETS | |
Money market funds | 10,027 |
Significant Other Observable Inputs (Level 2) | |
Liabilities: | |
Contingent earnout liability | 0 |
Significant Other Observable Inputs (Level 2) | Money Market Funds | |
ASSETS | |
Money market funds | 0 |
Significant Unobservable Inputs (Level 3) | |
Liabilities: | |
Contingent earnout liability | 386 |
Significant Unobservable Inputs (Level 3) | Money Market Funds | |
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) | Sep. 30, 2020USD ($) |
Crawford Specialty Solutions | |
Liabilities: | |
Maximum possible earnout liability | $ 551,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2020 | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($)reporting_unit | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | [1] | |
Liabilities: | |||||||
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 | |||||
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 | |||||
Debt instrument, variable interest rate duration between resets | 90 days | ||||||
Number of reporting units | reporting_unit | 4 | ||||||
Goodwill impairment | $ 17,674,000,000 | $ 17,674,000 | $ 0 | ||||
Cumulative goodwill impairment | 55,565,000 | ||||||
Goodwill | $ 61,151,000 | $ 0 | $ 61,151,000 | $ 80,642,000 | |||
Discount Rate | |||||||
Liabilities: | |||||||
Measurement input | 0.175 | 0.175 | |||||
Terminal Growth Rate | |||||||
Liabilities: | |||||||
Measurement input | 0.020 | 0.020 | |||||
Crawford Compliance Inc. | |||||||
Liabilities: | |||||||
Percentage of interest sold | 51.00% | ||||||
[1] | Derived from the audited Consolidated Balance Sheet |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Profit from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | $ 261,669 | $ 265,842 | $ 750,590 | $ 790,065 | |
Net corporate interest expense | (1,599) | (3,162) | (6,275) | (8,346) | |
Goodwill impairment | $ (17,674,000) | (17,674) | 0 | ||
Restructuring costs | (5,076) | ||||
Arbitration and claim settlements | (1,200) | (12,552) | |||
Gain on disposition of businesses, net | 14,104 | 13,763 | |||
Income before income taxes | 36,438 | 16,019 | 27,226 | 30,204 | |
Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Total segment operating earnings | 29,023 | 25,309 | 58,539 | 63,272 | |
Segment Reconciling Items | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Unallocated corporate and shared costs, net | (968) | (1,649) | (5,227) | (2,393) | |
Net corporate interest expense | (1,599) | (3,162) | (6,275) | (8,346) | |
Stock option expense | (457) | (450) | (1,033) | (1,348) | |
Amortization of customer-relationship intangible assets | (3,665) | (2,829) | (9,153) | (8,429) | |
Goodwill impairment | 0 | 0 | (17,674) | 0 | |
Restructuring costs | 0 | (5,714) | |||
Crawford Claims Solutions Member | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Total segment operating earnings | 7,219 | 2,661 | 6,329 | 4,058 | |
Crawford TPA Solutions Member | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 87,210 | 99,495 | 270,870 | 296,807 | |
Crawford TPA Solutions Member | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Total segment operating earnings | 4,414 | 9,347 | 13,870 | 21,106 | |
Crawford Specialty Solutions | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 67,545 | 68,932 | 196,794 | 206,237 | |
Crawford Specialty Solutions | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Total segment operating earnings | 17,390 | 13,301 | 38,340 | 38,108 | |
Service | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 253,124 | 254,677 | 725,071 | 758,616 | |
Service | Crawford Claims Solutions Member | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 98,369 | 86,250 | 257,407 | 255,572 | |
Service | Crawford TPA Solutions Member | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 87,210 | 99,495 | 270,870 | 296,807 | |
Service | Crawford TPA Solutions Member | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 87,210 | 99,495 | 270,870 | 296,807 | |
Service | Crawford Specialty Solutions | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 67,545 | 68,932 | 196,794 | 206,237 | |
Service | Crawford Specialty Solutions | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | 67,545 | 68,932 | 196,794 | 206,237 | |
Reimbursements | |||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated | |||||
Revenues | $ 8,545 | $ 11,165 | $ 25,519 | $ 31,449 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments (segments) | 3 |
Segment Information - Schedule
Segment Information - Schedule of Revenues By Major Service Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from External Customer | ||||
Revenues | $ 261,669 | $ 265,842 | $ 750,590 | $ 790,065 |
Crawford TPA Solutions Member | ||||
Revenue from External Customer | ||||
Revenues | 87,210 | 99,495 | 270,870 | 296,807 |
Crawford Specialty Solutions | ||||
Revenue from External Customer | ||||
Revenues | 67,545 | 68,932 | 196,794 | 206,237 |
Claims Management Services | Crawford TPA Solutions Member | ||||
Revenue from External Customer | ||||
Revenues | 51,617 | 56,471 | 158,633 | 169,116 |
Medical Management Services | Crawford TPA Solutions Member | ||||
Revenue from External Customer | ||||
Revenues | 35,593 | 43,024 | 112,237 | 127,691 |
Service | ||||
Revenue from External Customer | ||||
Revenues | 253,124 | 254,677 | 725,071 | 758,616 |
Service | Crawford TPA Solutions Member | ||||
Revenue from External Customer | ||||
Revenues | 87,210 | 99,495 | 270,870 | 296,807 |
Service | Crawford Specialty Solutions | ||||
Revenue from External Customer | ||||
Revenues | 67,545 | 68,932 | 196,794 | 206,237 |
Global Technical Services | Crawford Specialty Solutions | ||||
Revenue from External Customer | ||||
Revenues | 44,002 | 45,990 | 133,380 | 135,628 |
Contractor Connection | Crawford Specialty Solutions | ||||
Revenue from External Customer | ||||
Revenues | $ 23,543 | $ 22,942 | $ 63,414 | $ 70,609 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Sep. 30, 2020USD ($) |
Letter of Credit | |
Loss Contingencies | |
Letters of credit outstanding amount | $ 11,512,000 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | ||||
Restructuring costs | $ 0 | $ 0 | $ 5,714,000 | $ 0 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring and Related Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | ||||
Personnel related costs | $ 0 | $ 0 | $ 5,076,000 | $ 0 |
Asset impairments | 0 | 0 | 638,000 | 0 |
Total restructuring costs | $ 0 | $ 0 | $ 5,714,000 | $ 0 |
Restructuring Costs - Schedule
Restructuring Costs - Schedule of Restructuring Reserve Liabilities by Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 2,432 | $ 814 |
Additions | 5,076 | |
Adjustments to accruals | 794 | (341) |
Cash payments | (1,866) | (4,189) |
Ending balance | 1,360 | 1,360 |
Accrued Compensation and Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 2,427 | 342 |
Additions | 5,076 | |
Adjustments to accruals | 799 | 131 |
Cash payments | (1,866) | (4,189) |
Ending balance | 1,360 | 1,360 |
Other Accrued Liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 5 | 472 |
Additions | 0 | 0 |
Adjustments to accruals | (5) | (472) |
Cash payments | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Business Acquisitions and Dis_2
Business Acquisitions and Dispositions - Additional Information (Details) - USD ($) | Jul. 21, 2020 | Jun. 12, 2020 | Jun. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Business Acquisition [Line Items] | ||||||
Loss on disposal of entity | $ 14,104,000 | $ 13,763,000 | $ 0 | |||
Crawford Compliance Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 51.00% | |||||
Loss on disposal of entity | $ (912,000) | |||||
LWI | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 51.00% | 51.00% | ||||
Loss on disposal of entity | 14,700,000 | |||||
Proceeds from sale of business | $ 19,600,000 | 700,000 | ||||
Repayment of debt | $ 3,600,000 | |||||
Purchase price | 20,300,000 | $ 20,300,000 | ||||
Gain on disposition, net of tax | 11,700,000 | |||||
WeGoLook, LC | ||||||
Business Acquisition [Line Items] | ||||||
Membership interest percentage | 15.00% | |||||
Payment to acquire business | $ 310,000 | |||||
Accelerated amortization amount recognized | $ 1,100,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event | Nov. 01, 2020USD ($) | Oct. 01, 2020USD ($)Installment |
Crawford Carvallo | ||
Subsequent Event [Line Items] | ||
Membership interest percentage | 85.00% | |
Percentage of held interest prior to acquisition | 15.00% | |
Initial lump-sum payment of purchase price | $ 11,600,000 | |
Number of annual installments of purchase price | Installment | 6 | |
Crawford Carvallo | Maximum | ||
Subsequent Event [Line Items] | ||
Payment to acquire business | $ 11,700,000 | |
Project Griffith | ||
Subsequent Event [Line Items] | ||
Membership interest percentage | 100.00% | |
Payment to acquire business | $ 3,200,000 | |
Project Griffith | Maximum | ||
Subsequent Event [Line Items] | ||
Initial lump-sum payment of purchase price | $ 5,000,000 |