Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 25, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Entity File Number | 1-10356 | ||
Entity Registrant Name | CRAWFORD & CO | ||
Entity Incorporation, State or Country Code | 2Q | ||
Entity Tax Identification Number | 58-0506554 | ||
Entity Address, Address Line One | 5335 Triangle Parkway | ||
Entity Address, City or Town | Peachtree Corners | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30092 | ||
City Area Code | 404 | ||
Local Phone Number | 300-1000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 198,769,113 | ||
Documents Incorporated by Reference | Portions of the Registrant's proxy statement for its 2020 annual shareholders' meeting, which proxy statement will be filed within 120 days of the Registrant's year end, are incorporated by reference into Part III hereof. | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Central Index Key | 0000025475 | ||
Document Fiscal Period Focus | FY | ||
Class A Non-Voting | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock — $1.00 Par Value | ||
Trading Symbol | CRD-A | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 30,853,833 | ||
Class B Voting | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class B Common Stock — $1.00 Par Value | ||
Trading Symbol | CRD-B | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 22,452,075 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Revenues from Services: | ||||||
Revenues | $ 1,016,195 | $ 1,047,627 | $ 1,122,979 | |||
Costs and Expenses: | ||||||
Cost of services | 737,320 | 752,773 | 808,005 | |||
Selling, general, and administrative expenses | 218,952 | 227,170 | 242,421 | |||
Corporate interest expense, net of interest income | 7,923 | 10,774 | 10,109 | |||
Goodwill and intangible asset impairments | 17,674 | 17,484 | 1,056 | |||
Arbitration and claim settlements | 12,552 | |||||
Restructuring and other costs, net | [1] | 8,133 | ||||
(Gain) loss on disposition of businesses, net | (13,763) | 20,270 | ||||
Total Costs and Expenses | 976,239 | 1,020,753 | 1,081,861 | |||
Other (Expense) Gain | (868) | (3,237) | 3,013 | |||
(Loss) Income Before Income Taxes | 39,088 | 23,637 | 44,131 | |||
(Benefit) Provision for Income Taxes | 12,013 | 14,111 | 18,542 | |||
Net (Loss) Income | 27,075 | 9,526 | 25,589 | |||
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests | 1,221 | 2,959 | 389 | |||
Net (Loss) Income Attributable to Shareholders of Crawford & Company | $ 28,296 | $ 12,485 | $ 25,978 | |||
Class A Non-Voting | ||||||
(Loss) Earnings Per Share - Basic: | ||||||
(Loss) Earnings Per Share - Basic: | $ 0.54 | [2] | $ 0.27 | [2] | $ 0.51 | |
(Loss) Earnings Per Share - Diluted: | ||||||
(Loss) Earnings Per Share - Diluted: | $ 0.54 | [2] | $ 0.26 | [2] | $ 0.50 | |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||||
Weighted-average common shares outstanding, basic | 30,605 | 30,637 | 30,805 | |||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||||
Weighted-average common shares outstanding, diluted | 30,857 | 31,090 | 31,434 | |||
Cash Dividends Per Share: | ||||||
Cash Dividends Per Share | $ 0.19 | $ 0.28 | $ 0.28 | |||
Class B Voting | ||||||
(Loss) Earnings Per Share - Basic: | ||||||
(Loss) Earnings Per Share - Basic: | 0.52 | [2] | 0.19 | [2] | 0.43 | |
(Loss) Earnings Per Share - Diluted: | ||||||
(Loss) Earnings Per Share - Diluted: | $ 0.52 | [2] | $ 0.19 | [2] | $ 0.42 | |
Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||||
Weighted-average common shares outstanding, basic | 22,527 | 22,975 | 24,449 | |||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||||
Weighted-average common shares outstanding, diluted | 22,527 | 22,975 | 24,449 | |||
Cash Dividends Per Share: | ||||||
Cash Dividends Per Share | $ 0.17 | $ 0.20 | $ 0.20 | |||
Service | ||||||
Revenues from Services: | ||||||
Revenues | $ 982,492 | $ 1,005,802 | $ 1,070,971 | |||
Costs and Expenses: | ||||||
Cost of services | 703,617 | 710,948 | 755,997 | |||
Reimbursements | ||||||
Revenues from Services: | ||||||
Revenues | 33,703 | 41,825 | 52,008 | |||
Costs and Expenses: | ||||||
Cost of services | $ 33,703 | $ 41,825 | $ 52,008 | |||
[1] | The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments. | |||||
[2] | Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Interest income | $ 264 | $ 745 | $ 1,290 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 27,075 | $ 9,526 | $ 25,589 |
Other Comprehensive Income (Loss): | |||
Net foreign currency translation gain (loss), net of tax benefit of $0, $0 and $0, respectively | 4,281 | (180) | (10,830) |
Amounts reclassified into net income for defined benefit pension plans, net of tax provision of $2,693, $2,682 and $2,686, respectively | 7,959 | 8,002 | 8,076 |
Net unrealized (loss) gain on defined benefit plans arising during the year, net of tax benefit (provision) of $1,655, ($649), and $5,333, respectively | (4,966) | 1,036 | (18,014) |
Other Comprehensive Income (Loss) | 7,274 | 8,858 | (20,768) |
Comprehensive Income | 34,349 | 18,384 | 4,821 |
Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | 1,535 | 3,641 | 1,187 |
Comprehensive Income Attributable to Shareholders of Crawford & Company | $ 35,884 | $ 22,025 | $ 6,008 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
OCI, Tax on foreign currency translation loss (gain) | $ 0 | $ 0 | $ 0 |
OCI, Tax provision on reclassification adjustments to net income for pension plans | 2,693 | 2,682 | 2,686 |
OCI, Tax (provision) benefit on unrealized gains (losses) arising during the year for pension plans | $ 1,655 | $ (649) | $ 5,333 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 44,656,000 | $ 51,802,000 |
Accounts receivable, less allowance for expected credit losses of $9,464 and $9,348, respectively | 123,060,000 | 128,217,000 |
Unbilled revenues, at estimated billable amounts | 103,528,000 | 103,894,000 |
Income taxes receivable | 1,269,000 | 7,820,000 |
Prepaid expenses and other current assets | 29,490,000 | 23,476,000 |
Total Current Assets | 302,003,000 | 315,209,000 |
Net Property and Equipment | 36,402,000 | 31,425,000 |
Other Assets: | ||
Operating lease right-of-use asset, net | 109,315,000 | 102,354,000 |
Goodwill | 66,537,000 | 80,642,000 |
Intangible assets arising from business acquisitions, net | 71,176,000 | 75,083,000 |
Capitalized software costs, net | 71,021,000 | 66,445,000 |
Deferred income tax assets | 25,595,000 | 17,971,000 |
Other noncurrent assets | 70,935,000 | 70,884,000 |
Total Other Assets | 414,579,000 | 413,379,000 |
TOTAL ASSETS | 752,984,000 | 760,013,000 |
Current Liabilities: | ||
Short-term borrowings | 1,837,000 | 28,546,000 |
Accounts payable | 41,544,000 | 34,377,000 |
Accrued compensation and related costs | 81,848,000 | 68,499,000 |
Self-insured risks | 11,390,000 | 11,311,000 |
Income taxes payable | 5,822,000 | 3,030,000 |
Operating lease liability | 32,745,000 | 30,765,000 |
Other accrued liabilities | 40,375,000 | 31,449,000 |
Deferred revenues | 27,233,000 | 28,288,000 |
Total Current Liabilities | 242,794,000 | 236,265,000 |
Noncurrent Liabilities: | ||
Long-term debt and finance leases, less current installments | 111,758,000 | 148,408,000 |
Deferred revenues | 24,136,000 | 24,080,000 |
Accrued pension liabilities | 53,886,000 | 65,909,000 |
Operating lease liability | 93,228,000 | 87,064,000 |
Other noncurrent liabilities | 40,254,000 | 33,410,000 |
Total Noncurrent Liabilities | 323,262,000 | 358,871,000 |
Redeemable Noncontrolling Interests | 2,310,000 | |
Shareholders' Investment: | ||
Additional paid-in capital | 67,193,000 | 63,392,000 |
Retained earnings | 265,245,000 | 249,551,000 |
Accumulated other comprehensive loss | (198,856,000) | (206,907,000) |
Shareholders' Investment Attributable to Shareholders of Crawford & Company | 186,939,000 | 159,317,000 |
Noncontrolling interests | (11,000) | 3,250,000 |
Total Shareholders' Investment | 186,928,000 | 162,567,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 752,984,000 | 760,013,000 |
Class A Non-Voting | ||
Shareholders' Investment: | ||
Class A common stock, $1.00 par value, 50,000 shares authorized; 30,847 and 30,610 shares issued and outstanding, respectively | 30,847,000 | 30,610,000 |
Class B Voting | ||
Shareholders' Investment: | ||
Class A common stock, $1.00 par value, 50,000 shares authorized; 30,847 and 30,610 shares issued and outstanding, respectively | $ 22,510,000 | $ 22,671,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Allowance for doubtful accounts | $ 9,464 | $ 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) | 30,847,000 | 30,610,000 |
Shares outstanding (shares) | 30,847,000 | 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 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash Flows from Operating Activities: | ||||
Net Income | $ 27,075,000 | $ 9,526,000 | $ 25,589,000 | |
Reconciliation of net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 40,111,000 | 40,513,000 | 44,079,000 | |
Goodwill and intangible asset impairments | 17,674,000 | [1] | 17,484,000 | 1,056,000 |
Deferred income taxes | (9,005,000) | 3,040,000 | 7,947,000 | |
(Gain) loss on disposition of businesses, net | (13,763,000) | 20,270,000 | ||
Stock-based compensation costs | 4,384,000 | 4,109,000 | 6,196,000 | |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||||
Accounts receivable, net | 5,063,000 | 5,922,000 | 7,844,000 | |
Unbilled revenues, net | (3,762,000) | 5,302,000 | (18,588,000) | |
Accrued or prepaid income taxes | 9,311,000 | (5,985,000) | 2,270,000 | |
Accounts payable and accrued liabilities | 31,775,000 | (6,946,000) | (8,952,000) | |
Deferred revenues | (1,074,000) | (281,000) | (4,969,000) | |
Accrued retirement costs | (10,790,000) | 3,387,000 | (25,896,000) | |
Prepaid expenses and other operating activities | (3,821,000) | (855,000) | (4,427,000) | |
Net cash provided by operating activities | 93,178,000 | 75,216,000 | 52,419,000 | |
Cash Flows from Investing Activities: | ||||
Acquisitions of property and equipment | (14,226,000) | (8,688,000) | (14,052,000) | |
Capitalization of computer software costs | (23,154,000) | (12,436,000) | (15,968,000) | |
Cash proceeds from disposition of business line | 19,968,000 | 39,187,000 | ||
Payments for business acquisitions, net of cash acquired | (9,983,000) | (2,296,000) | (2,500,000) | |
Other investing activities | 358,000 | (218,000) | ||
Net cash (used in) provided by investing activities | (27,037,000) | (23,420,000) | 6,449,000 | |
Cash Flows from Financing Activities: | ||||
Cash dividends paid | (9,645,000) | (13,171,000) | (13,528,000) | |
Payments related to shares received for withholding taxes under stock-based compensation plans | (476,000) | (827,000) | (1,110,000) | |
Proceeds from shares purchased under employee stock-based compensation plans | 811,000 | 2,104,000 | 1,387,000 | |
Repurchases of common stock | (2,666,000) | (26,210,000) | (10,409,000) | |
Payments for equity investments | (602,000) | |||
Increases in short-term and revolving credit facility borrowings | 108,142,000 | 66,197,000 | 101,428,000 | |
Payments on short-term and revolving credit facility borrowings | (169,675,000) | (80,948,000) | (135,433,000) | |
Payments on finance lease obligations | (62,000) | (93,000) | (477,000) | |
Capitalized loan costs | (23,000) | |||
Dividends paid to noncontrolling interests | (196,000) | (458,000) | (574,000) | |
Net cash used in financing activities | (74,369,000) | (53,406,000) | (58,739,000) | |
Effects of exchange rate changes on cash and cash equivalents | 1,082,000 | 293,000 | (1,021,000) | |
Decrease in Cash and Cash Equivalents | (7,146,000) | (1,317,000) | (892,000) | |
Cash and Cash Equivalents at Beginning of Year | 51,802,000 | 53,119,000 | 54,011,000 | |
Cash and Cash Equivalents at End of Year | $ 44,656,000 | $ 51,802,000 | $ 53,119,000 | |
[1] | The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class Of Stock [Line Items] | |||
Net income (loss) attributable to redeemable noncontrolling interest | $ 2,258 | $ 3,191 | $ 1,275 |
Class A Non-Voting | |||
Class Of Stock [Line Items] | |||
Cash dividends paid (in dollars per share) | $ 0.19 | $ 0.28 | $ 0.28 |
Class B Voting | |||
Class Of Stock [Line Items] | |||
Cash dividends paid (in dollars per share) | $ 0.17 | $ 0.20 | $ 0.20 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Investment - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Beginning balance | $ 162,567 | $ 175,446 | $ 186,964 | |
Net income (loss) | [1] | 29,333 | 12,717 | 26,864 |
Other comprehensive income (loss) | 7,274 | 8,858 | (20,768) | |
Cash dividends paid | (9,645) | (13,171) | (13,528) | |
Stock-based compensation | 4,384 | 4,109 | 6,196 | |
Repurchases of common stock | (2,666) | (26,210) | (10,409) | |
Shares issued in connection with stock-based compensation plans, net | 335 | 1,276 | 919 | |
Decrease in value of noncontrolling interest due to acquisition | (101) | (218) | ||
Increase in value of noncontrolling interest due to disposition | 3,750 | |||
Ending balance | 186,928 | 162,567 | 175,446 | |
Dividends paid to noncontrolling interests | (196) | (458) | (574) | |
Increase in value of noncontrolling interest due to disposition | (3,750) | |||
Adoption of Topic 326 | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
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 | 30,927 | 31,439 | |
Repurchases of common stock | (155) | (1,103) | (1,144) | |
Shares issued in connection with stock-based compensation plans, net | 392 | 786 | 632 | |
Ending balance | $ 30,847 | 30,610 | 30,927 | |
Common Stock | Class A Non-Voting | Adoption of Topic 326 | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||
Common Stock | Class B Voting | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Beginning balance | $ 22,671 | 24,408 | 24,502 | |
Repurchases of common stock | (161) | (1,737) | (94) | |
Ending balance | $ 22,510 | 22,671 | 24,408 | |
Common Stock | Class B Voting | Adoption of Topic 326 | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||
Additional Paid-In Capital | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Beginning balance | $ 63,392 | 58,793 | 53,170 | |
Stock-based compensation | 4,384 | 4,109 | 6,196 | |
Shares issued in connection with stock-based compensation plans, net | (57) | 490 | (355) | |
Decrease in value of noncontrolling interest due to acquisition | (526) | (218) | ||
Ending balance | $ 67,193 | 63,392 | 58,793 | |
Additional Paid-In Capital | Adoption of Topic 326 | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||
Retained Earnings | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Beginning balance | $ 249,551 | 273,607 | 269,686 | |
Net income (loss) | [1] | 28,296 | 12,485 | 25,978 |
Cash dividends paid | (9,645) | (13,171) | (13,528) | |
Repurchases of common stock | (2,350) | (23,370) | (9,171) | |
Shares issued in connection with stock-based compensation plans, net | 642 | |||
Ending balance | 265,245 | $ 249,551 | 273,607 | |
Retained Earnings | Adoption of Topic 326 | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
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) | $ (216,447) | (196,477) | |
Other comprehensive income (loss) | 7,588 | 9,540 | (19,970) | |
Decrease in value of noncontrolling interest due to acquisition | 576 | |||
Increase in value of noncontrolling interest due to disposition | 113 | |||
Ending balance | (198,856) | (206,907) | (216,447) | |
Increase in value of noncontrolling interest due to disposition | $ (113) | |||
AOCL attributable to shareholders of Crawford & Company | Adoption of Topic 326 | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||
Shareholders' Investment Attributable to Shareholders of Crawford & Company | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Beginning balance | $ 159,317 | 171,288 | 182,320 | |
Net income (loss) | [1] | 28,296 | 12,485 | 25,978 |
Other comprehensive income (loss) | 7,588 | 9,540 | (19,970) | |
Cash dividends paid | (9,645) | (13,171) | (13,528) | |
Stock-based compensation | 4,384 | 4,109 | 6,196 | |
Repurchases of common stock | (2,666) | (26,210) | (10,409) | |
Shares issued in connection with stock-based compensation plans, net | 335 | 1,276 | 919 | |
Decrease in value of noncontrolling interest due to acquisition | 50 | (218) | ||
Increase in value of noncontrolling interest due to disposition | 113 | |||
Ending balance | 186,939 | 159,317 | 171,288 | |
Increase in value of noncontrolling interest due to disposition | (113) | |||
Shareholders' Investment Attributable to Shareholders of Crawford & Company | Adoption of Topic 326 | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Ending balance | $ (607) | |||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||
Noncontrolling Interests | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Beginning balance | $ 3,250 | 4,158 | 4,644 | |
Net income (loss) | [1] | 1,037 | 232 | 886 |
Other comprehensive income (loss) | (314) | (682) | (798) | |
Decrease in value of noncontrolling interest due to acquisition | (151) | |||
Increase in value of noncontrolling interest due to disposition | 3,637 | |||
Ending balance | (11) | 3,250 | 4,158 | |
Dividends paid to noncontrolling interests | (196) | $ (458) | $ (574) | |
Increase in value of noncontrolling interest due to disposition | $ (3,637) | |||
Noncontrolling Interests | Adoption of Topic 326 | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||
[1] | The total net income presented in the consolidated statement of shareholders' investment for the years ended December 31, 2018, December 31, 2019 and December 31, 2020 excludes |
Significant Accounting and Repo
Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Significant Accounting and Reporting Policies | 1. Significant Accounting and Reporting Policies Nature of Operations Based in Atlanta, Georgia, Crawford & Company ("Crawford" or "the Company") is the world's largest publicly listed independent provider of claims management and outsourcing solutions to carriers, brokers and corporations with an expansive global network serving clients in more than 70 countries. Shares of the Company's two classes of common stock are traded on the New York Stock Exchange ("NYSE") under the symbols CRD-A and CRD-B, respectively. The Company's two classes of stock are substantially identical, except with respect to voting rights and the Company's ability to pay greater cash dividends on the non-voting Class A Common Stock than on the voting Class B Common Stock, subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of Class A Common Stock must receive the same type and amount of consideration as holders of Class B Common Stock, unless different consideration is approved by the holders of 75% of the Class A Common Stock, voting as a class. The Company's website is www.crawco.com. The information contained on, or hyperlinked from, the Company's website is not a part of, and is not incorporated by reference into, this report. Principles of Consolidation The accompanying consolidated financial statements were prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") and include the accounts of the Company, its majority-owned subsidiaries, and variable interest entities in which the Company is deemed to be the primary beneficiary. Significant intercompany transactions are eliminated in consolidation. Financial results from the Company's operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines, are reported and consolidated on a two-month delayed basis in accordance with the provisions of Accounting Standards Codification ("ASC") 810, "Consolidation," in order to provide sufficient time for accumulation of their results. Accordingly, the Company's December 31, 2020, 2019, and 2018 consolidated financial statements include the financial position of such operations as of October 31, 2020 and 2019, respectively, and the results of their operations and cash flows for the fiscal periods ended October 31, 2020, 2019, and 2018, respectively. The Company has controlling ownership interests in several entities that are not wholly-owned by the Company. The financial results and financial positions of these controlled entities are included in the Company's consolidated financial statements, including the controlling interests, noncontrolling interests, and redeemable noncontrolling interests. The noncontrolling interests and redeemable noncontrolling interests represent the equity interests in these entities that are not attributable, either directly or indirectly, to the Company. On the Company's Consolidated Statements of Operations, net income or loss is separately attributed to the controlling interests and noncontrolling interests and redeemable noncontrolling interests. Noncontrolling interests represent the minority shareholders' share of the net income or loss and shareholders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' investment as "Redeemable Noncontrolling Interests" and are carried at either their initial fair value plus any profits or losses or estimated redemption value if an adjustment is required. The Company consolidates the results of a variable interest entity ("VIE") when it is determined to be the primary beneficiary. In accordance with GAAP, in determining whether the Company is the primary beneficiary of a VIE for financial reporting purposes, it considers whether it has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether it has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. The Company sold its 51% interest in Lloyd Warwick International Limited ("LWI") to a third party in June 2020. Prior to the sale, LWI was considered a VIE of the Company. As the primary beneficiary of LWI, the Company consolidated the results of LWI because of its controlling ownership interest and because Crawford had the obligation to absorb LWI's losses through the additional financial support that Crawford may be obligated to provide. As a result of the sale, LWI is no longer considered a VIE of the Company, and the Company no longer consolidates the results of LWI nor is obligated to provide financial support to LWI. See Note 3, “Business Acquisitions and Dispositions” of our accompanying consolidated financial statements for further discussion related to the sale of the Company’s interest in LWI. The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and also considered a VIE of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan. At December 31, 2020 and 2019, the liabilities of this deferred compensation plan were $7,961,000 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 $16,323,000 and $16,527,000, respectively. These liabilities and assets are included in "Other noncurrent liabilities" and "Other noncurrent assets" on the Company's Consolidated Balance Sheets, respectively. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company has not applied for governmental loans from the CARES Act or any other governmental programs to support the Company’s U.S. operations. The Company 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, third and fourth quarters of 2020. The wage subsidy is included in "Costs of services provided, before reimbursements” or “Selling, general, and administrative expenses” on the Consolidated Statements of Operations, depending on the location of the employees, and is recorded as a reduction of compensation expense. In 2020, the Company recognized $13.8 million as a reduction of compensation expense as a result of this subsidy. Prior Year Reclassifications Periodically, certain prior year segment information may be reclassified to conform to the current year presentation. There were no such reclassifications in the current year. Management's Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Revenue Recognition Revenues are recognized when control of the promised services are transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are recognized net of any sales, use or value added taxes collected from customers, which are subsequently remitted to governmental authorities. As the Company completes its performance obligations, it has an unconditional right to consideration as outlined in the Company's contracts. The Company's Crawford Claims Solutions segment generates revenue for claims management 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 personal property. The Company's Crawford TPA Solutions segment is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Company's Crawford 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. The Contractor Connection service line generates revenue through its independently managed contractor network, with approximately 6,000 credentialed residential and commercial contractors. See Note 2, “Revenue Recognition” for further discussion on the Company’s revenue recognition policies. Intersegment sales are recorded at cost and are not material. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. The fair value of cash and cash equivalents approximates carrying value due to their short-term nature. At December 31, 2020, cash and cash equivalents included time deposits of approximately $1,473,000 that were in financial institutions outside the U.S. Accounts Receivable and Allowance for Expected Credit Losses The Company extends credit based on an evaluation of a client's financial condition and, generally, collateral is not required. Accounts receivable are typically due upon receipt of the invoice and are stated on the Company's Consolidated Balance Sheets at amounts due from clients net of an estimated allowance for expected credit losses. Accounts outstanding longer than the contractual payment terms are considered past due. The fair value of accounts receivable approximates book value due to their short-term contractual stipulations. The Company maintains an allowance for expected credit losses resulting primarily from the inability of clients to make required payments. Such losses are accounted for as bad debt expense, while adjustments to invoices are accounted for as reductions to revenue. These allowances are established using historical write-off or adjustment information to project future experience and by considering the current creditworthiness of clients, any known specific collection problems, and an assessment of current industry and economic conditions. Actual experience may differ significantly from historical or expected loss results. The Company writes off accounts receivable when they become uncollectible, and any payments subsequently received are accounted for as recoveries. A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2020, 2019, and 2018 is as follows: 2020 2019 2018 (In thousands) Allowance for expected credit losses, January 1 $ 9,348 $ 9,625 $ 12,588 Add/ (Deduct): Adoption of Topic 326 (464 ) — — Provision for bad debt expense 1,504 1,588 2,709 Write-offs, net of recoveries (908 ) (81 ) (3,695 ) Adjustments for business acquisitions and dispositions (111 ) — (1,612 ) Currency translation and other changes 95 (1,784 ) (365 ) Allowance for expected credit losses, December 31 $ 9,464 $ 9,348 $ 9,625 Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived Assets Goodwill is an asset that represents the excess of the purchase price over the fair value of the separately identifiable net assets (tangible and intangible) acquired in 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 $17.7 million, reducing the goodwill carrying value of Crawford Claims Solutions to $0 as of March 31, 2020. During the fourth quarter of 2020, the Company performed the goodwill impairment testing on the remaining reporting units. The estimated fair value of the Company's Crawford TPA Solutions, Global Technical Services and Contractor Connection reporting units exceed their carrying value by a significant margin. The Company intends to continue to monitor the performance of its reporting units for potential indicators of impairment. If impairment indicators exist, the Company will perform an interim goodwill impairment analysis. The key assumptions used in estimating the fair value of our reporting units utilizing the income approach include the discount rate and the terminal growth rate. The discount rates utilized in estimating the fair value of our reporting units in 2020 range between 15.0% and 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. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The Company depreciates the cost of property and equipment, including assets recorded under finance leases, over the shorter of the remaining lease term or the estimated useful lives of the related assets, primarily using the straight-line method. The estimated useful lives for property and equipment classifications are as follows: Classification Estimated Useful Lives Furniture and fixtures 3-10 years Data processing equipment 3-5 years Automobiles and other 3-4 years Buildings and improvements 7-40 years Property and equipment, including assets under finance leases, consisted of the following at December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Land $ 338 $ 331 Buildings and improvements 32,087 28,840 Furniture and fixtures 28,264 29,898 Data processing equipment 64,781 57,574 Automobiles 314 236 Total property and equipment 125,784 116,879 Less accumulated depreciation (89,382 ) (85,454 ) Net property and equipment $ 36,402 $ 31,425 Depreciation on property and equipment, including property under finance leases and amortization of leasehold improvements, was $11,750,000, $11,363,000, and $12,862,000 for the years ended December 31, 2020, 2019, and 2018, respectively. Capitalized Software Capitalized software costs reflect costs related to internally developed or purchased software used by the Company that has expected future economic benefits. Certain internal and external costs incurred during the application development stage are capitalized. Costs incurred during the preliminary project and post implementation stages, including training and maintenance costs, are expensed as incurred. The majority of these capitalized software costs consist of internal payroll costs and external payments for software development, purchases and related services. These capitalized software costs are typically amortized over periods ranging from three to ten years, depending on the estimated life of each software application. Amortization expense for capitalized software was $16,709,000, $17,873,000, and $20,066,000 for the years ended December 31, 2020, 2019, and 2018, respectively. Self-Insured Risks The Company self-insures certain risks consisting primarily of professional liability, auto liability, and employee medical, disability, and workers' compensation liability. Insurance coverage is obtained for catastrophic property and casualty exposures, including professional liability on a claims-made basis, and those risks required to be insured by law or contract. Most of these self-insured risks are in the U.S. Provisions for claims under the self-insured programs are made based on the Company's estimates of the aggregate liabilities for claims incurred, including estimated legal fees, losses that have occurred but have not been reported to the Company, and for adverse developments on reported losses. The estimated liabilities are calculated based on historical claims experience, the expected lives of the claims, and other factors considered relevant by management. Changes in these estimates may occur as additional information becomes available. Income Taxes The Company accounts for certain income and expense items differently for financial reporting and income tax purposes. Provisions for deferred taxes are made in recognition of these temporary differences. The most significant differences relate to accrued compensation, pension plans, self-insurance, and depreciation and amortization. For financial reporting purposes, the provision for income taxes is the sum of income taxes both currently payable and payable on a deferred basis. Currently payable income taxes represent the liability related to the income tax returns for the current year, while the net deferred tax expense or benefit represents the change in the balance of deferred income tax assets or liabilities as reported on the Company's Consolidated Balance Sheets that are not related to balances in "Accumulated other comprehensive loss." The changes in deferred income tax assets and liabilities are determined based upon changes in the differences between the basis of assets and liabilities for financial reporting purposes and the basis of assets and liabilities for income tax purposes, measured by the enacted statutory tax rates in effect for the year in which the Company estimates these differences will reverse. The Company must estimate the timing of the reversal of temporary differences, as well as whether taxable income in future periods will be sufficient to fully recognize any gross deferred tax assets. A valuation allowance is provided when it is deemed more-likely-than-not that some portion or all of a deferred tax asset will not be realized. In 2017, the Company estimated the impact of the Tax Cuts and Jobs Act (the "Tax Act") incorporating assumptions made based upon its current interpretation of the Tax Act and included them in its consolidated financial statements for the year ended December 31, 2017. The SEC Staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company recognized provisional tax impacts related to a one-time U.S. tax liability on those earnings a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”) and revaluation of domestic deferred tax balances, and included those amounts in its consolidated financial statements for the year ended December 31, 2017. In the period ended December 31, 2018, the Company completed its accounting for the Tax Act in accordance with SAB 118. As a result, the Company recorded additional income tax expense of $3,583,000. This expense consisted of substantially all of the $6,977,000 valuation allowance established against foreign tax credits and $102,000 for the revaluation of deferred taxes, net of $3,496,000 of Transition Tax release of uncertain tax positions and adjustments. In 2018, the Company completed the accounting for the Tax Act within the one year measurement period, as allowed under SAB 118. Other factors which influence the effective tax rate used for financial reporting purposes include changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits. See Note 7, "Income Taxes" for further discussion. Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income Sales and Other Taxes In certain jurisdictions, both in the U.S. and internationally, various governments and taxing authorities require the Company to assess and collect sales and other taxes, such as value added taxes, on certain services that the Company renders and bills to its customers. The majority of the Company's revenues are not currently subject to these types of taxes. These taxes are not recorded as additional revenues or expenses in the Company's Consolidated Statements of Operations, but are recorded on the Consolidated Balance Sheets as pass-through amounts until remitted. Foreign Currency Foreign currency transactions for the years ended December 31, 2020 and 2019 resulted in net losses of $219,000 and $243,000, respectively. Foreign currency transactions for the year ended December 31, 2018 resulted in a net gain of $73,000. For operations outside the U.S. that prepare financial statements in currencies other than the U.S. dollar, results of operations and cash flows are translated into U.S. dollars at average exchange rates during the period, and assets and liabilities are translated at end-of-period exchange rates. The resulting translation adjustments, on a net basis, are included in "Other Comprehensive Income" in the Company's Consolidated Statements of Comprehensive Income, and the accumulated translation adjustment is reported as a component of "Accumulated other comprehensive loss" in the Company's Consolidated Balance Sheets. Advertising Costs Advertising costs are expensed in the period in which the costs are incurred. Advertising expenses were $990,000, $2,394,000, and $3,572,000, respectively, for the years ended December 31, 2020, 2019, and 2018. As several conventions were cancelled as a result of the COVID-19 pandemic, the Company’s advertising costs decreased in 2020. 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 year ended December 31, 2020. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This update amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, by removing and modifying certain disclosure requirements and adding others. This update removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. This update requires the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, this update clarifies that transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities are required to be disclosed. These updates are effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no 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. T |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue from Contracts with Customers Revenues are recognized when control of the promised services are transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are recognized net of any sales, use or value added taxes collected from customers, which are subsequently remitted to governmental authorities. As the Company completes its performance obligations which are identified below, it has an unconditional right to consideration as outlined in the Company's contracts. Generally the Company's accounts receivable are expected to be collected in less than two months, in accordance with the underlying payment terms. The Company's Crawford Claims Solutions segment generates revenue for claims management 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 are 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 years ended December 31, 2020 and 2019. The Company considers all Crawford Claims Solutions revenues to be derived from one service line. (In thousands) Year Ended December 31, 2020 2019 U.S. $ 166,441 $ 136,524 U.K. 65,855 63,715 Canada 34,020 47,712 Australia 47,481 45,417 Europe 28,298 28,915 Rest of World 14,352 17,554 Total Crawford Claims Solutions Revenues before Reimbursements $ 356,447 $ 339,837 The Company's Crawford TPA Solutions segment (formerly referred to as "Global TPA Solutions: Broadspire") is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Claims Management service line includes Workers' Compensation, Liability, Property and Disability Claims Management. This service line also performs additional services such as Accident & Health claims programs, including affinity type claims, and disability and leave management services. Each claim referred by the customer is considered an additional optional purchase of claims management services under the agreement with the customer. The transaction price is readily available from the contract and is fixed for each service. Revenue is recognized over time as services are provided as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document, and report the claim and control of these services are transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type applied utilizing a portfolio approach based on time elapsed for these claims as the Company believes this is the most accurate depiction of the transfer of the claims management services to its customer. This service line also provides Risk Management Information Services. For non-claim services, revenue is recognized over time as services are provided and control of these services are transferred to the customer. Revenue is recognized as time elapses as this is the most accurate depiction of the transfer of the service to the customer. The Company's obligation to manage claims under the Claims Management service line can range from less than one year, on a one- or two-year The Medical Management service line offers case managers who provide administration services by proactively managing medical treatment for claimants while facilitating an understanding of and participation in their rehabilitation process. Revenue for Medical Management services is recognized over time as the performance obligations are satisfied through the effort expended to manage the medical treatment for claimants and control of these services are transferred to the customer. Medical Management services are generally billed based on time incurred, are considered variable consideration, and revenue is recognized at the amount in which the Company has the right to invoice for services performed. This method of revenue recognition is the most accurate depiction of the transfer of the Medical Management service to the customer. Medical Management services also includes medical bill review services, which provide an analysis of medical charges for clients’ claims to identify opportunities for savings. Medical bill review services revenues are recognized over time as control of the service is transferred to the customer. Revenue is recognized based upon the transfer of the results of the medical bill review service to the customer as this is the most accurate depiction of the transfer of the service to the customer. The following table presents Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2020 and 2019. Year Ended December 31, 2020 Year Ended December 31, 2019 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 143,940 $ 149,506 $ 293,446 $ 144,985 $ 170,256 $ 315,241 U.K. 10,866 — 10,866 11,254 — 11,254 Canada 25,911 — 25,911 33,234 — 33,234 Europe and Rest of World 34,760 — 34,760 34,127 — 34,127 Total Crawford TPA Solutions Revenues before Reimbursements $ 215,477 $ 149,506 $ 364,983 $ 223,600 $ 170,256 $ 393,856 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. 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 are 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 years ended December 31, 2020 and 2019. Year Ended December 31, 2020 Year Ended December 31, 2019 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 39,930 $ 71,005 $ 110,935 $ 40,526 $ 76,914 $ 117,440 U.K. 45,212 6,612 51,824 45,803 5,565 51,368 Canada 23,066 6,166 29,232 25,981 7,511 33,492 Australia 21,927 929 22,856 22,273 792 23,065 Europe 20,680 48 20,728 20,540 10 20,550 Rest of World 25,487 — 25,487 26,194 — 26,194 Total Crawford Specialty Solutions Revenues before Reimbursements $ 176,302 $ 84,760 $ 261,062 $ 181,317 $ 90,792 $ 272,109 In the normal course of business, the Company incurs certain out-of-pocket expenses that are thereafter reimbursed by its customers. The Company controls the promised good or service before it is transferred to its customer, therefore it is a principal in the transaction. These out-of-pocket expenses and associated reimbursements are reported on a gross basis within expenses and revenues, respectively, in the Company's Consolidated Statements of Operations. Arrangements with Multiple Performance Obligations For claims management services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company sells multiple types of claims processing and different levels of processing depending on the complexity of the claims. The Company typically provides a menu of offerings from which the customer chooses to purchase at their option. The price of each service is separate and distinct and provides a separate and distinct value to the customer. Pricing is consistent for each service irrespective of the other services or quantities requested by the customer. For example, if the Company provides claims processing for both auto and general liability, those services are priced and delivered independently. Contract Balances The timing of revenue recognition, billings and cash collections result in billed accounts receivables, contract assets (reported as unbilled revenues at estimated billable amounts) and contract liabilities (reported as deferred revenues) on the Company’s Consolidated Balance Sheets. Unbilled revenues is a contract asset for revenue that has been recognized in advance of billing the customer, resulting from professional services delivered that we expect and are entitled to receive as consideration under certain contracts. Billing requirements vary by contract but substantially all unbilled revenues are billed within one year. When the Company receives consideration from a customer prior to transferring services to the customer under the terms of certain claims management agreements, it records deferred revenues on the Company’s Consolidated Balance Sheets, which represents a contract liability. These fixed-fee service agreements typically result from the Crawford TPA Solutions segment and require the Company to handle claims on either a one- or two-year 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 99% of all cases referred to it under lifetime claim service agreements within five years from the date of referral. Also, within that five-year period, the percentage of cases remaining open in any one particular year has remained relatively consistent from period to period. Each quarter the Company evaluates its historical case closing rates by type of claim utilizing a portfolio approach and makes adjustments to deferred revenues as necessary. As a portfolio approach is utilized to recognize deferred revenues, any changes in estimates will impact timing of revenue 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 year ended December 31, 2020: (In Thousands) Customer Contract Liabilities: Deferred Revenue Balance at January 1, 2020 $ 52,368 Annual additions 76,379 Revenue recognized from prior periods (34,943 ) Revenue recognized from current year additions (42,435 ) Balance as of December 31, 2020 $ 51,369 Remaining Performance Obligations As of December 31, 2020, the Company had $88,917,000 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. See the discussion below regarding the practical expedients elected for the disclosure of remaining performance obligations. Costs to Obtain a Contract The Company has a sales incentive compensation program where remuneration is based on the revenues recognized in the period and does not represent an incremental cost to the Company which provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented as a contract asset on the Company's Consolidated Balance Sheets. Practical Expedients Elected As a practical expedient, the Company does not adjust the consideration in a contract for the effects of a significant financing component it expects, at contract inception, when the period between a customer’s payment of consideration and the transfer of promised services to the customer will be one year or less. For claims management services that are billed on a time and expense incurred or per unit basis and revenue is recognized over time, the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not disclose the value of remaining performance obligations for (i) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed, and (ii) contracts with variable consideration allocated entirely to a single performance obligation. |
Business Acquisitions and Dispo
Business Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions and Dispositions | 3. 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. The Company recognized a total gain of $14,700,000 ($11,700,000 net of tax) on the disposition for the year ended December 31, 2020. 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 2020. On October 1, 2020, the Company acquired most of 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 cash 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. Net tangible assets acquired totaled $15,120,000, including $1,599,000 of cash. The difference between the aggregate fair value of total purchase considerations and the previously held noncontrolling interest, and the net tangible assets acquired represents definite-lived intangible assets, goodwill, and noncontrolling interest. The acquisition was funded primarily through additional borrowings under the Company's credit facility. The preliminary valuation of the assets acquired and liabilities assumed for Crawford Carvallo is as follows: (in thousands) Opening Balance Sheet, Adjusted as of December 31, 2020 Assets Cash and cash equivalents $ 1,599 Accounts receivable, net 3,662 Unbilled revenue, at estimated billable amounts 2,930 Prepaid expenses and other current assets 3,613 Property and equipment, net 828 Purchased software, net 459 Operating lease right-of-use-asset, net 8,743 Goodwill 5,501 Intangible assets 7,600 Other noncurrent assets 277 Total Assets 35,212 Liabilities Accounts payable 1,014 Accrued expenses 3,870 Tax liability 662 Lease liabilities 8,743 Long-term debt and other liabilities 5,803 Total Liabilities 20,092 Net Assets Acquired, Before Noncontrolling Interests 15,120 Noncontrolling interest 489 Net Assets Acquired, After Noncontrolling Interests $ 14,631 Intangible assets acquired include customer relationships, trademarks, internally developed software and non-compete agreements. The intangibles acquired are made up of customer relationships of $4,400,000 being amortized over an estimated life of 15 years, and the remaining assets listed above are being amortized over 10 years. Goodwill is attributable to the synergies of the work force in place and business resources as a result of the combination of the companies. The Company does not expect that goodwill attributable to the acquisition will be deductible for tax purposes. The financial results of certain of the Company’s international subsidiaries, including Crawford Carvallo, are included in the Company’s consolidated financial statements on a two-month delayed basis. For the year ended December 31, 2020, Crawford Carvallo reported revenue of $2,214,000 in the Company's consolidated revenues before reimbursements. The results of Crawford Carvallo are reported in Crawford Specialty Solutions and Crawford TPA Solutions segments. For the year ended December 31, 2020, Crawford Carvallo’s contribution to the Company's earnings and earnings per share were not material and as such, no pro forma financial information is required to be presented. During the year ended December 31, 2019, the Company acquired a Global Technical Services business in Europe for total consideration of approximately $2,431,000 which is comprised of $1,519,000 paid at closing, net of cash acquired of $135,000, $234,000 to be paid in one year, $351,000 to be paid in three years and contingent earnout consideration of $327,000. The acquisition was accounted for under the guidance of ASC 805-10, as a business combination under the acquisition method. As a result of the acquisition, the Company recognized definite lived intangible assets of $951,000 and goodwill of $1,164,000. The results of the acquisition is reported within the Company's Crawford Specialty Solutions operating segment. During the year ended December 31, 2018, the Company acquired two separate Global Technical Services businesses in Canada for total consideration of approximately $3,400,000 which is comprised of $2,500,000 paid at closing, net of cash acquired of $134,000, $348,000 to be paid in one year and contingent earnout consideration of $377,000. The acquisitions were accounted for under the guidance of ASC 805-10, as business combinations under the acquisition method. As a result of the acquisitions, the Company recognized net tangible assets of $462,000, net of both the deferred payment and contingent earnout, definite lived intangible assets of $1,094,000, goodwill of $1,296,000 and deferred taxes of $202,000. The results of the acquisitions are reported within the Company's Crawford Specialty Solutions operating segment. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019: Crawford Claims Solutions Crawford TPA Solutions Crawford Specialty Solutions Total (In thousands) Balance at December 31, 2018: Goodwill $ 55,553 $ 168,730 $ 73,621 $ 297,904 Accumulated impairment losses (20,407 ) (159,424 ) (21,183 ) $ (201,014 ) Net goodwill 35,146 9,306 52,438 96,890 2019 Activity: Goodwill of acquired businesses — — 1,164 1,164 Impairment of goodwill (17,484 ) — — (17,484 ) Foreign currency effects 6 4 62 72 Balance at December 31, 2019: Goodwill 55,559 168,734 74,847 299,140 Accumulated impairment losses (37,891 ) (159,424 ) (21,183 ) (218,498 ) Net goodwill 17,668 9,310 53,664 80,642 2020 Activity: Goodwill of acquired businesses — 2,857 2,644 5,501 Impairment of goodwill (17,674 ) — — (17,674 ) Goodwill of disposed business — — (1,990 ) (1,990 ) Foreign currency effects 6 12 40 58 Balance at December 31, 2020: Goodwill 55,565 171,603 75,541 302,709 Accumulated impairment losses (55,565 ) (159,424 ) (21,183 ) (236,172 ) Net goodwill $ — $ 12,179 $ 54,358 $ 66,537 The Company recognized a non-cash goodwill impairment charge in 2020 totaling $17,674,000 related to the valuation of its Crawford Claims Solutions reporting unit. The Company recognized a non-cash goodwill impairment in the Crawford Claims Solution reporting unit of $ 17,484,000 during the year ended December 31, 2019. There were no goodwill impairment charges in 2018. These impairment charges did not affect the Company's liquidity and had no effect on the Company's compliance with the financial covenants under its Credit Facility. Intangible Assets The following is a summary of finite-lived intangible assets acquired through business acquisitions as of December 31, 2020 and 2019: Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Amortization Period (In thousands, except years) December 31, 2020: Customer relationships $ 131,948 $ (101,319 ) $ 30,629 3.3 years Technology-based 18,183 (10,174 ) $ 8,009 6.5 years Trade name 3,123 (1,737 ) $ 1,386 6.0 years Other 5,794 (5,489 ) $ 305 10.1 years Total $ 159,048 $ (118,719 ) $ 40,329 6.7 years December 31, 2019: Customer relationships $ 127,362 $ (92,354 ) $ 35,008 4.0 years Technology-based 16,562 (9,108 ) 7,454 7.0 years Trade name 1,795 (1,636 ) 159 1.7 years Other 5,485 (3,869 ) 1,616 1.8 years Total $ 151,204 $ (106,967 ) $ 44,237 3.8 years Amortization of finite-lived intangible assets was $11,653,000, $11,277,000, and $11,152,000 for the years ended December 31, 2020, 2019, and 2018, respectively. These amortization expenses were excluded from segment operating earnings (see Note 13, "Segment and Geographic Information"). Intangible assets subject to amortization are amortized on a straight-line basis over lives ranging from 2 to 15 years At December 31, 2020, annual estimated aggregate amortization expense for intangible assets subject to amortization for the next five years is as follows: Annual Amortization Expense Year Ending December 31, (In thousands) 2021 $ 9,678 2022 4,711 2023 4,614 2024 4,152 2025 4,050 The following is a summary of indefinite-lived intangible assets at December 31, 2020 and 2019: Gross Carrying Amount Accumulated Impairments Net Carrying Value (In thousands) December 31, 2020: Trade names $ 32,503 $ (1,656 ) $ 30,847 December 31, 2019: Trade names $ 32,502 $ (1,656 ) $ 30,846 |
Short-Term and Long-Term Debt,
Short-Term and Long-Term Debt, Including Finance Leases | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt, Including Finance Leases | 5. Short-Term and Long-Term Debt, Including Finance Leases Long-term debt consisted of the following at December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Credit Facility $ 112,855 $ 176,877 Finance lease and other obligations 740 77 Total long-term debt and finance leases 113,595 176,954 Less: portion of Credit Facility classified as short-term (1,570 ) (28,531 ) Less: current installments of finance leases and other obligations (267 ) (15 ) Total long-term debt and finance leases, less current installments $ 111,758 $ 148,408 On October 11, 2017, the Company, its subsidiaries Crawford & Company Risk Services Investments Limited (the "UK Borrower"), Crawford & Company (Canada) Inc. (the "Canadian Borrower") and Crawford & Company (Australia) Pty. Ltd. (the "Australian Borrower") (the Company, together with such subsidiaries, as borrowers (the "Borrowers")), Wells Fargo Bank, National Association, as administrative agent and a lender ("Wells Fargo"), Bank of America, N.A., as syndication agent and a lender, Citizens Bank, N.A., as documentation agent and a lender, and the other lenders party thereto, entered into an Amended and Restated Credit Agreement (the "Amended and Restated Credit Agreement"), which amended and restated that certain Credit Agreement, dated as of December 8, 2011, by and among, inter alia, the Borrowers, Wells Fargo and the other lenders from time to time party thereto (as previously amended, the "Original Credit Agreement"). In connection with the Amended and Restated Credit Agreement, the Company, the Company’s guarantor subsidiaries party thereto and Wells Fargo entered into an Amended and Restated Pledge and Security Agreement (the "Amended and Restated Pledge and Security Agreement") and an Amended and Restated Guaranty Agreement (the "Amended and Restated Guaranty Agreement"), each dated as of the date of the Amended and Restated Credit Agreement. On September 18, 2020, the Company amended the Credit Facility. Pursuant to this amendment, (a) the Company is permitted to make, in addition to the other investments permitted under the Credit Facility prior to the amendment, investments of an unrestricted nature up to the aggregate outstanding amount not to exceed $5,000,000 at any time and (b) the terms of LIBOR replacement when that benchmark is no longer available have been modified. The Credit Facility under the Amended and Restated Credit Agreement consists of a $450,000,000 revolving credit facility, with a letter of credit subcommitment of $100,000,000. The Credit Facility contains sublimits of $185,000,000 for borrowings by the UK Borrower, $75,000,000 for borrowings by the Canadian Borrower, and $32,500,000 for borrowings by the Australian Borrower. The Credit Facility matures, and all amounts outstanding thereunder, will be due and payable on November 23, 2022. Borrowings under the Credit Facility may be made in U.S. dollars, Euros, the currencies of Canada, Japan, Australia or the United Kingdom and, subject to the terms of the Credit Facility, other currencies. Borrowings under the Credit Facility bear interest, at the option of the applicable Borrower, based on the Base Rate (as defined below) or the London Interbank Offered Rate ("LIBOR"), in each case plus an applicable interest margin based on the Company's leverage ratio (as defined below), provided that borrowings in foreign currencies may bear interest based on LIBOR only. The Credit Facility defines LIBOR to encompass accepted alternative reference rates for certain currencies where a LIBOR rate is no longer quoted. The interest margin for LIBOR loans ranges from 1.30% to 2.10% and for Base Rate loans ranges from 0.30% to 1.10%. Base Rate is defined as the highest of (i) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 1/2 of 1%, (ii) the prime commercial lending rate of Wells Fargo and (iii) LIBOR for a one month interest period plus 1.0%. At December 31, 2020, a total of $112,855,000 was outstanding and there was an undrawn amount of $11,512,000 under the letters of credit subcommitment of the Credit Facility. These letter of credit commitments were for the Company's own obligations. Including the amounts committed under the letters of credit subcommitment, the available borrowing capacity under the Credit Facility totaled $325,653,000 at December 31, 2020. The obligations of the Borrowers under the Amended and Restated Credit Agreement are guaranteed by each existing material domestic subsidiary of the Company, certain other domestic subsidiaries of the Company and certain existing material foreign subsidiaries of the Company that are disregarded entities for U.S. income tax purposes (each such foreign subsidiary, a "Disregarded Foreign Subsidiary"), and such obligations are required to be guaranteed by each subsequently acquired or formed material domestic subsidiary and Disregarded Foreign Subsidiary (each, a "Guarantor"), and the obligations of the Borrowers other than the Company ("Foreign Borrowers") for which the Company is not the primary obligor are also guaranteed by the Company. In addition, (i) the Borrowers’ obligations under the Amended and Restated Credit Agreement are secured by a first priority lien (subject to liens permitted by the Amended and Restated Credit Agreement) on substantially all of the personal property of the Company and the Guarantors as set forth in the Amended and Restated Pledge and Security Agreement and (ii) the obligations of the Foreign Borrowers are secured by a first priority lien on 100% of the capital stock of the Foreign Borrowers. The representations, covenants and events of default in the Credit Facility are customary for financing transactions of this nature, including required compliance with a minimum fixed charge coverage ratio and a maximum leverage ratio (each as defined below). Under the Credit Facility as amended, the senior secured leverage ratio, defined as the ratio of (i) consolidated total funded debt (excluding unsecured or subordinated debt) minus unrestricted cash to (ii) consolidated EBITDA, must not be greater than 3.25 to 1.00 at the end of each fiscal quarter. In addition, the maximum permitted total leverage ratio allowable at the end of each quarter, which includes any unsecured or subordinated debt, must not be greater than 4.25 to 1.00. Also under the Credit Facility as amended, the fixed charge coverage ratio, defined as the ratio of (i)(A) consolidated earnings before interest expense, income taxes, depreciation, amortization, stock-based compensation expense, and certain other charges and expenses ("EBITDA") minus minus plus plus plus At December 31, 2020, the Company was in compliance with the financial covenants under the Credit Facility. If the Company does not meet the covenant requirements in the future, it would be in default under the Credit Facility. Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Credit Facility and ancillary loan documents. Short-term borrowings under the Credit Facility totaled $1,570,000 and $28,531,000 at December 31, 2020 and 2019, respectively. The Company expects, but is not required, to repay all of such short-term borrowings at December 31, 2020 in 2021. The Company's finance leases are primarily comprised of equipment leases with terms ranging from 24 to 60 months Interest expense, including amortization of capitalized loan costs, on the Company's short-term and long-term borrowings was $8,187,000, $11,519,000, and $11,399,000 for the years ended December 31, 2020, 2019, and 2018, respectively. Interest paid on the Company's short-term and long-term borrowings was $7,152,000, $10,470,000, and $10,381,000 for the years ended December 31, 2020, 2019, and 2018, respectively. Principal repayments of long-term debt, including current portions, finance leases and other obligations, as of December 31, 2020 are expected to be as follows, assuming no prepayments or extensions beyond the stated maturity: Long-term Debt Finance Lease and Other Obligations Total Year Ending December 31, (In thousands) 2021 $ 1,570 $ 267 $ 1,837 2022 111,285 239 111,524 2023 — 164 164 2024 — 47 47 2025 — 23 23 Total $ 112,855 $ 740 $ 113,595 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Commitments | 6. Lease Commitments The Company determines if an arrangement is a lease at inception. The Company's and its subsidiaries' leases include office space, computer equipment, and automobiles under operating and finance leases. These lease agreements have remaining lease terms of 1 to 12 years. Some of these lease agreements include options to extend the leases for up to 5 years, options to terminate the leases within 1 year, rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company, as sublessor, subleases certain office space which mostly consists of a two-building office complex in Plantation, Florida in which the terms of the primary lease and the related subleases end in December 2021. Under each of the executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $4,180,000 in 2021 and $110,000 in 2022. The Company's finance leases are not material as of the year ended December 31, 2020 and are excluded from the disclosures below. The following table presents the lease-related assets and liabilities recorded on the Company's Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet December 31, 2020 December 31, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 109,315 $ 102,354 Liabilities: Current operating lease liabilities Current operating lease liabilities 32,745 30,765 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 93,228 87,064 Total operating lease liabilities $ 125,973 $ 117,829 Weighted-Average Remaining Lease Term 6.30 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 of January 1, 2019. The components of operating lease costs within the Company's Consolidated Statements of Operations consisted of the following: Year Ended (in thousands) December 31, 2020 December 31, 2019 Operating lease cost $ 38,242 $ 37,824 Variable lease cost 8,037 7,948 Sublease income 4,090 4,163 Supplemental cash flow information related to operating leases were as follows: Year Ended (in thousands) December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 37,091 $ 38,906 Right-of-use assets obtained in exchange for lease obligations (1) $ 40,535 $ 30,056 (1) The year ended December 31, 2019 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) December 31, 2020 2021 $ 37,976 2022 25,214 2023 17,686 2024 14,496 2025 11,770 Thereafter 41,624 Total undiscounted lease payments 148,766 Less imputed interest (22,793 ) Present value of future lease payments $ 125,973 The Company has entered into operating lease agreements that have not yet commenced as of December 31, 2020 with legally binding minimum lease payments of $2,370,000. 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 | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Income before income taxes consisted of the following: Year Ended December 31, 2020 2019 2018 (In thousands) U.S. $ (1,029 ) $ (1,472 ) $ 4,634 Foreign 40,117 25,109 39,497 Income before income taxes $ 39,088 $ 23,637 $ 44,131 The provision for income taxes consisted of the following: Year Ended December 31, 2020 2019 2018 (In thousands) Current: U.S. federal and state $ 12,561 $ 1,546 $ 1,065 Foreign 8,457 9,525 9,530 Deferred: U.S. federal and state (8,870 ) 1,643 4,051 Foreign (135 ) 1,397 3,896 Provision for income taxes $ 12,013 $ 14,111 $ 18,542 Net cash payments for income taxes were $12,216,000, $16,996,000, and $8,168,000 in 2020, 2019, and 2018, respectively. The provision for income taxes is reconciled to the federal statutory income tax rate of 21% in 2020, 2019, and 2018, as follows: Year Ended December 31, 2020 2019 2018 (In thousands) Federal income taxes at statutory rate $ 8,208 $ 4,964 $ 9,267 State income taxes, net of federal benefit 325 505 2,685 Goodwill impairment 2,322 1,883 — Foreign taxes 3,328 2,276 2,150 Change in valuation allowance (374 ) 3,919 9,540 Research and development credits (1,001 ) (626 ) (273 ) Foreign tax credits (1,150 ) (283 ) (429 ) Nondeductible meals and entertainment 377 724 782 US tax reform - revaluation of deferred taxes — — 102 US tax reform - transition tax, net of credits — — (3,496 ) Change in permanent reinvestment assertion 776 — (1,792 ) Disposals and liquidations of businesses (935 ) — — Global intangible low-tax income, net of credits (54 ) 892 454 Foreign-derived intangible income deduction (115 ) (315 ) (323 ) Tax rate changes (359 ) 486 (392 ) Other 665 (314 ) 267 Provision for income taxes $ 12,013 $ 14,111 $ 18,542 The Company's consolidated effective income tax rate may change periodically due to changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits. The Company's effective income tax rate in 2020 was impacted by goodwill impairment charges, disposals and liquidations of businesses, and deferred taxes attributable to undistributed foreign earnings that are no longer permanently reinvested. The Company's effective income tax rate in 2019 was impacted by goodwill impairment charges, arbitration and claim settlements, and valuation allowance establishment on certain state net operating losses. The Company's effective income tax rate in 2018 was impacted by a valuation allowance on certain Foreign Tax Credits, the Tax Cuts and Jobs Act in the U.S. (the "Tax Act"), and one-time income tax planning activities. During 2018, the Company completed its accounting for the Tax Act in accordance with SAB 118. As a result, the Company recorded additional income tax expense of $3,583,000. This expense consisted of substantially all of the $6,977,000 valuation allowance established against foreign tax credits and $102,000 for the revaluation of deferred taxes, net of $3,496,000 of Transition Tax release of uncertain tax positions and adjustments. During 2020, the Company released its permanent reinvestment position on a portion of prior year undistributed earnings for certain foreign operations and accrued deferred taxes attributable to these earnings. Beyond these earnings we have not changed the reinvestment assertion on our undistributed earnings or other outside basis differences of our remaining foreign subsidiaries. Excluding the change in position for certain foreign operations, no additional income or withholding taxes have been provided for indefinitely reinvested undistributed foreign earnings, other than those subject to the Transition Tax nor have any taxes been provided for outside basis difference inherent in these entities as these amounts continue to be indefinitely reinvested in foreign operations. We have estimated that we have book over tax basis differences of approximately $89,510,000. Due to withholding tax, basis computations, and other related tax considerations, it is not practicable to estimate any taxes to be provided on outside basis differences at this time. Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income Deferred income taxes consisted of the following at December 31, 2020 and 2019: 2020 2019 (In thousands) Accounts receivable allowance $ 1,019 $ 1,163 Accrued compensation 14,655 9,553 Accrued pension liabilities 4,950 9,116 Self-insured risks 5,746 4,301 Deferred revenues 5,376 4,249 Interest 2,419 5,399 Tax credit carryforwards 7,090 11,634 Loss carryforwards 22,805 25,523 Lease liability 31,435 29,785 Other 2,158 3,436 Gross deferred income tax assets 97,653 104,159 Unbilled revenues 5,311 6,522 Repatriated earnings 776 — Depreciation and amortization 23,474 28,025 Lease right-of-use asset 27,513 25,865 Gross deferred income tax liabilities 57,074 60,412 Net deferred income tax assets before valuation allowance 40,579 43,747 Valuation allowance (16,579 ) (28,128 ) Net deferred income tax assets $ 24,000 $ 15,619 Amounts recognized in the Consolidated Balance Sheets consist of: Long-term deferred income tax assets included in "Deferred income tax assets" 25,595 17,971 Long-term deferred income tax liabilities included in "Other noncurrent liabilities" (1,595 ) (2,352 ) Net deferred income tax assets $ 24,000 $ 15,619 At December 31, 2020, the Company had deferred tax assets related to loss carryforwards of $23,033,000, before netting of unrecognized tax benefits of $228,000. An estimated $15,936,000 of the deferred tax assets will not expire, and $7,097,000 will expire over the next 20 years if not utilized by the Company. Changes in the Company's deferred tax valuation allowance are recorded as adjustments to the provision for income taxes. An analysis of the Company's deferred tax asset valuation allowances is as follows for the years ended December 31, 2020, 2019, and 2018. 2020 2019 2018 (In thousands) Balance, beginning of year $ 28,128 $ 25,864 $ 18,829 Other changes (11,549 ) 2,264 7,035 Balance, end of year $ 16,579 $ 28,128 $ 25,864 Changes to the valuation allowance for the year ended December 31, 2020 were primarily due to anticipated expiration of certain foreign tax credits after consideration of the four sources of taxable income and disposals and liquidations of businesses, net of losses in certain of the Company’s international operations. Changes to the valuation allowance for the year ended December 31, 2019 were primarily due to anticipated expiration of certain state NOLs after consideration of the four sources of taxable income and losses in certain of the Company’s international operations. Changes to the valuation allowance for the year ended December 31, 2018 were primarily due to anticipated expiration of foreign tax credits after consideration of the Tax Act and the four sources of taxable income and losses in certain of the Company’s international and domestic operations. A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows: (In thousands) Balance at December 31, 2017 $ 11,297 Additions for tax provisions related to the current year 54 Reductions for tax positions related to prior years (3,941 ) Currency translation adjustment (9 ) Balance at December 31, 2018 $ 7,401 Additions for tax provisions related to the current year 515 Additions for tax positions related to prior years 646 Reductions for tax positions related to prior years (113 ) Reductions for settlements (2,642 ) Lapses of applicable statutes of limitation (520 ) Balance at December 31, 2019 $ 5,287 Additions for tax provisions related to the current year 92 Additions for tax positions related to prior years 2 Reductions for tax positions related to prior years (505 ) Reductions for settlements (516 ) Lapses of applicable statutes of limitation (582 ) Balance at December 31, 2020 $ 3,778 The Company accrues interest and, if applicable, penalties related to unrecognized tax benefits in income taxes. Total accrued interest expense at December 31, 2020, 2019, and 2018, was $89,000, $256,000, and $256,000, respectively. Included in the total unrecognized tax benefits at December 31, 2020, 2019, and 2018 were $713,000, $1,940,000, and $5,493,000, respectively, of tax benefits that, if recognized, would affect the effective income tax rate. The Company conducts business in a number of countries and, as a result, files U.S. federal and various state and foreign jurisdiction income tax returns. In the normal course of business, the Company is subject to examination by various taxing jurisdictions throughout the world, including Canada, the U.K., and the U.S. With few exceptions, the Company is no longer subject to income tax examinations for years before 2010. Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, including interest and penalties, have been provided for any adjustments that are expected to result from those years. The Company does not expect any material reductions to unrecognized income tax benefits within the next 12 months as a result of projected resolutions of income tax uncertainties. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 8. Retirement Plans The Company and its subsidiaries sponsor various retirement plans. Substantially all employees in the U.S. and certain employees outside the U.S. are covered under the Company's defined contribution plans. Certain employees, retirees, and eligible dependents are also covered under the Company's defined benefit pension plans. Employer contributions under the Company's defined contribution plans are determined annually based on employee contributions, a percentage of each covered employee's compensation, and years of service. The Company's cost for defined contribution plans totaled $23,641,000, $25,226,000, and $23,417,000 in 2020, 2019, and 2018, respectively. The Company sponsors a qualified defined benefit pension plan in the U.S. (the "U.S. Qualified Plan") and three defined benefit pension plans in the U.K. (the "U.K. Plans"). Effective December 31, 2002, the Company elected to freeze its U.S. Qualified Plan. Benefits payable under the Company's U.S. Qualified Plan are generally based on career compensation; however, no additional benefits have accrued on this plan since December 31, 2002. The Company's U.K. Plans were closed to new participants as of October 31, 1997, but existing participants may still accrue additional limited benefits based on salary amounts in effect at the time the relevant plan was closed. Benefits payable under the U.K. Plans are generally based on an employee's final salary at the time the plan was closed. Benefits paid under the U.K. Plans are also subject to adjustments for the effects of inflation. The actuarial present value of the projected benefit payments under the U.K. Plans are based on the employees' expected dates of separation by retirement. The Bipartisan Budget Act of 2015 ("BBA2015") included pension funding reform which greatly reduced the contributions required to the U.S. Qualified Plan. Required contributions are anticipated in future years as the impact of the BBA2015 pension funding reform is phased out. Currently, the Company plans to make $9,000,000 per annum to the U.S. Qualified Plan for each of next five fiscal years to improve the funded status of the plan and minimize future required contributions. The Company did not make a discretionary contribution in 2019 because it made an additional voluntary contribution of $10,000,000 in 2018 which generated a one time U.S. tax benefit. The Company expects to make no discretionary contributions to its U.K. Plans during the next five years. Certain other employees located in the Netherlands, Norway, Germany, and the Philippines (referred to herein as the "other international plans") have retirement benefits that are accounted for as defined benefit pension plans under GAAP. External trusts are maintained to hold assets of the Company's U.S. Qualified Plan, U.K. Plans, and other international plans. The Company's funding policy is to make cash contributions in amounts at least sufficient to meet regulatory funding requirements and, in certain instances, to make contributions in excess thereof if such contributions would otherwise be in accordance with the Company's capital allocation plans. Assets of the plans are measured at fair value at the end of each reporting period, but the plan assets are not separately recorded on the Company's Consolidated Balance Sheets. Instead, the funded or unfunded status of the Company's U.S. Qualified Plan, U.K. Plans, and other international plans are recorded in "Accrued pension liabilities" or "Other noncurrent assets" on the Company's Consolidated Balance Sheets based on the projected benefit obligations less the fair values of the plans' assets. The majority of the Company's defined benefit pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Projected benefit obligations $ 494,273 $ 486,305 Fair value of plans' assets 437,234 417,074 Certain of the Company's U.K. Plans have fair values of plan assets that exceed the projected benefit obligations. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Projected benefit obligations $ 267,200 $ 261,953 Fair value of plans' assets 303,957 296,943 In addition, the Company sponsors two frozen nonqualified, unfunded defined benefit pension plans for certain employees and retirees, which are based on career compensation. These plans were frozen effective December 31, 2002. The liabilities of these plans, which equal their projected benefit obligations, are included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets based on the expected timing of funding these obligations, since they are funded as needed from Company assets. A reconciliation of the beginning and ending balances of the projected benefit obligations and the fair value of plans' assets for the Company's defined benefit pension plans as of the plans' most recent measurement dates is as follows: Year Ended December 31, 2020 2019 (In thousands) Projected Benefit Obligations: Beginning of measurement period $ 748,258 $ 694,482 Service cost 1,295 1,278 Interest cost 16,643 22,408 Employee contributions 35 45 Actuarial loss (gain) 49,938 77,549 Plan settlements (1,450 ) — Benefits paid (55,150 ) (50,415 ) Foreign currency effects 1,904 2,911 End of measurement period 761,473 748,258 Fair Value of Plans' Assets: Beginning of measurement period 714,017 649,688 Actual return on plans' assets 71,446 109,670 Employer contributions 10,446 1,112 Employee contributions 35 522 Plan settlements (1,450 ) — Benefits paid (55,150 ) (50,415 ) Foreign currency effects 1,847 3,440 End of measurement period 741,191 714,017 Unfunded Status $ (20,282 ) $ (34,241 ) Due to the frozen status of the U.S. Qualified Plan and the closed status of the U.K. Plans, the accumulated benefit obligations and the projected benefit obligations are not materially different. The underfunded status of the Company's defined benefit pension plans recognized in the Consolidated Balance Sheets at December 31 consisted of: December 31, 2020 2019 (In thousands) U.S. Qualified Plan $ 51,645 $ 63,538 Other international plans 2,241 2,371 Subtotal, included in "Accrued pension liabilities" 53,886 65,909 U.K. prepaid pension asset included in "Other noncurrent assets" (36,757 ) (34,990 ) Unfunded status of nonqualified defined benefit deferred pension plans included in "Other accrued liabilities" 316 310 Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities" 2,837 3,012 Total unfunded status $ 20,282 $ 34,241 Accumulated other comprehensive loss, before income taxes $ (264,244 ) $ (268,275 ) A fixed number of U.S. employees, retirees, and eligible dependents were previously covered under a frozen post-retirement medical benefits plan and are now provided Company-subsidized premiums for participation in health care exchanges. The liabilities for this plan are included in the Company's self-insured risks liabilities and are not material. This plan was frozen effective December 31, 2002. The following tables set forth the 2020 and 2019 changes in accumulated other comprehensive loss for the Company's defined benefit retirement plans and post-retirement medical benefits plan on a combined basis: Defined Benefit Pension Plans Post-Retirement Medical Benefits Plan (In thousands) Net unrecognized actuarial (loss) gain, December 31, 2018 $ (280,948 ) $ 304 Amortization of net loss (gain) 10,836 (152 ) Net gain arising during the year 2,311 — Currency translation (626 ) — Net unrecognized actuarial (loss) gain, December 31, 2019 (268,427 ) 152 Amortization of net loss (gain) 10,804 (152 ) Net loss arising during the year (6,510 ) — Currency translation (111 ) — Net unrecognized actuarial loss, December 31, 2020 $ (264,244 ) $ — Unrecognized losses reflect changes in the discount rates and differences between expected and actual asset returns, which are being amortized over future periods. These unrecognized losses may be recovered in future periods through actuarial gains. However, unless the minimum amount required to be amortized is below a corridor amount equal to 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets, these unrecognized actuarial losses are required to be amortized and recognized in future periods. Net unrecognized actuarial losses included in accumulated other comprehensive loss and expected to be recognized in net periodic benefit costs during the year ending December 31, 2021 for the U.S. and U.K. defined benefit pension plans are $10,400,000 ($7,700,000 net of tax). Pension expense is affected by the accounting policy used to determine the value of plan assets at the measurement date. The Company applies the expected return on plan assets using fair market value as of the annual measurement date. The fair market value method results in greater volatility to pension expense than the calculated value method. The amounts recognized in the Consolidated Balance Sheets reflect the fair value of the Company's long-term pension liabilities at the plan measurement date and the fair value of plan assets as of the balance sheet date. Net periodic benefit cost related to all of the Company's defined benefit pension plans recognized in the Company's Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018 included the following components: Year Ended December 31, 2020 2019 2018 (In thousands) Service cost $ 1,295 $ 1,278 $ 1,395 Interest cost 16,643 22,376 20,933 Expected return on assets (28,016 ) (29,654 ) (34,267 ) Amortization of actuarial loss 10,804 10,837 10,744 Net periodic benefit cost (credit) $ 726 $ 4,837 $ (1,195 ) Benefit cost for the U.S. Qualified Plan does not include service cost since the plan is frozen. For the years ended December 31, 2020, 2019 and 2018, the non-service components of net periodic pension (benefits)/costs of $(569,000), $3,559,000 and $(2,590,000), respectively, are included in "Other (Expense) Gain" on the Consolidated Statement of Operations. Over the next ten years, the following benefit payments are expected to be required to be made from the Company's U.S. and U.K. defined benefit pension plans: Year Ending December 31, Expected Benefit Payments (In thousands) 2021 $ 42,436 2022 42,590 2023 42,611 2024 42,440 2025 42,329 2026-2030 206,549 The Company reviews its employee demographic assumptions annually and updates the assumptions as necessary. The Company updates the mortality assumptions for the U.S. plans to incorporate the current mortality tables issued by the Society of Actuaries, adjusted to reflect the Company's specific experience and future expectations. This resulted in a $3,063,000 decrease in the projected benefit obligation for the U.S. plans for the year ended December 31, 2020. Certain assumptions used in computing the benefit obligations and net periodic benefit cost for the U.S. and U.K. defined benefit pension plans were as follows: U.S. Qualified Plan: 2020 2019 Discount rate used to compute benefit obligations 2.38 % 3.15 % Discount rate used to compute periodic benefit cost 3.15 % 4.31 % Expected long-term rates of return on plans' assets 4.70 % 6.10 % U.K. Defined Benefit Plans: 2020 2019 Discount rate used to compute benefit obligations 1.60 % 1.93 % Discount rate used to compute periodic benefit cost 1.93 % 2.77 % Expected long-term rates of return on plans' assets 2.54 % 3.28 % The discount rate assumptions reflect the rates at which the Company believes the benefit obligations could be effectively settled. The discount rates were determined based on the yield for a portfolio of investment grade corporate bonds with maturity dates matched to the estimated future payments of the plans' benefit obligations. The Company estimates the service and interest components of net periodic benefit cost for its U.S. and international pension and other postretirement benefits. This estimation approach discounts the individual expected cash flows underlying the service cost and interest cost using the applicable spot rates derived from the yield curve used to discount the cash flows used to measure the benefit obligation. For the pension plans, the weighted average spot rates used to determine 2021 interest costs are estimated to be 3.92% for the U.S. Qualified plan and 1.71% for the U.K. plans. The expected long-term rates of return on plan assets were based on the plans' asset mix, historical returns on equity securities and fixed income investments, and an assessment of expected future returns. The expected long-term rates of return on plan assets assumption used to determine 2021 net periodic pension cost are estimated to be 4.70% and 2.10% for the U.S. Qualified Plan and U.K. plans, respectively. If actual long-term rates of return differ from those assumed or if the Company used materially different assumptions, actual funding obligations could differ materially from these estimates. Due to the frozen status of the U.S. plan and closed status of the U.K. plans, increases in compensation rates are not material to the computations of benefit obligations or net periodic benefit cost. Plans' Assets Asset allocations at the respective measurement dates, by asset category, for the Company's U.S. and U.K. qualified defined benefit pension plans were as follows: U.S. Qualified Plan U.K. Plans December 31, 2020 2019 2020 2019 Equity securities 23.4 % 21.4 % 17.1 % 17.9 % Fixed income securities 67.2 % 69.3 % 67.4 % 68.3 % Alternative strategies 6.2 % 5.9 % 14.7 % 13.0 % Cash, cash equivalents and short-term investment funds 3.1 % 3.4 % 0.9 % 0.8 % Total asset allocation 100.0 % 100.0 % 100.0 % 100.0 % Investment objectives for the Company's U.S. and U.K. pension plan assets are to ensure availability of funds for payment of plan benefits as they become due; provide for a reasonable amount of long-term growth of capital, without undue exposure to volatility; protect the assets from erosion of purchasing power; and provide investment results that meet or exceed the plans' actuarially assumed long-term rate of return. Alternative strategies include funds that invest in derivative instruments such as futures, forward contracts, options and swaps, hedge funds, and funds that invest in real estate. These investments are used to help manage risks. The long-term goal for the U.S. and U.K. plans is to reach fully-funded status and to maintain that status. The investment policies recognize that the plans' asset return requirements and risk tolerances will change over time. Accordingly, reallocation of the portfolios' mix of return-seeking assets and liability-hedging assets will be performed as the plans' funded status improves. See Note 12, "Fair Value Measurements" for the fair value disclosures of the U.S. and U.K. qualified defined benefit pension plan assets. The assets of the Company's other international plans are primarily insurance contracts, which are measured at contract value and are not measured at fair value. Obligations of the U.S. nonqualified plans are paid from Company assets. |
Common Stock and Earnings per S
Common Stock and Earnings per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Common Stock and Earnings per Share | 9. Common Stock and Earnings per Share Shares of the Company's two classes of common stock are traded on the NYSE under the symbols CRD-A and CRD-B, respectively. The Company's two classes of stock are substantially identical, except with respect to voting rights and the Company's ability to pay greater cash dividends on the non-voting Class A Common Stock than on the voting Class B Common Stock, subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of Class A Common Stock must receive the same type and amount of consideration as holders of Class B Common Stock, unless different consideration is approved by the holders of 75% of the Class A Common Stock, voting as a class. As described in Note 11, "Stock-Based Compensation," certain shares of CRD-A are issued with restrictions under incentive compensation plans. 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"). On December 10, 2020, the Company’s Board of Directors extended the termination date of the Company’s 2019 share repurchase authorization (“2019 Repurchase Authorization”) to December 31, 2021. Under the 2019 Repurchase Authorization, repurchases may be made for cash, in the open market or privately negotiated transactions at such times and for such prices as management deems appropriate, subject to applicable contractual and regulatory restrictions. Through December 31, 2020, the Company had repurchased 155,351 shares of CRD-A and 161,459 shares of CRD-B at an average cost of $8.42. At December 31, 2020, the Company had remaining authorization to repurchase 642,097 shares under the 2019 Repurchase Authorization. Through December 31, 2019, the Company had repurchased 1,103,398 shares of CRD-A and 1,736,011 shares of CRD-B at an average cost of $9.33 and $9.17, respectively, of which 421,427 shares of CRD-A and 1,376,889 shares of CRD-B were purchased pursuant to a stock purchase agreement authorized by the Board of Directors separate from the 2017 Repurchase Authorization and the 2019 Repurchase Authorization. At December 31, 2019, the Company had remaining authorization to repurchase 958,907 shares under the 2019 Repurchase Authorization. Net Income Attributable to Shareholders of Crawford & Company per Common Share The Company computes earnings per share of CRD-A and CRD-B using the two-class method, which allocates the undistributed earnings for each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on CRD-A than on CRD-B, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. During 2020, 2019 and 2018, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. The computations of basic net income attributable to shareholders of Crawford & Company per common share were as follows: Year Ended December 31, 2020 2019 2018 CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B (In thousands, except earnings per share) Earnings per share - basic: Numerator: Allocation of undistributed earnings (loss) $ 10,743 $ 7,908 $ (392 ) $ (294 ) $ 6,941 $ 5,509 Dividends paid 5,815 3,830 8,592 4,579 8,639 4,889 Net income available to common shareholders, basic 16,558 11,738 8,200 4,285 15,580 10,398 Denominator: Weighted-average common shares outstanding, basic 30,605 22,527 30,637 22,975 30,805 24,449 Earnings per share - basic $ 0.54 $ 0.52 $ 0.27 $ 0.19 $ 0.51 $ 0.43 The computations of diluted net income attributable to shareholders of Crawford & Company per common share were as follows: Year Ended December 31, 2020 2019 2018 CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B (In thousands, except earnings per share) Earnings per share - diluted: Numerator: Allocation of undistributed earnings (loss) $ 10,781 $ 7,870 $ (394 ) $ (292 ) $ 7,003 $ 5,447 Dividends paid 5,815 3,830 8,592 4,579 8,639 4,889 Net income available to common shareholders, diluted 16,596 11,700 8,198 4,287 15,642 10,336 Denominator: Weighted-average common shares outstanding, basic 30,605 22,527 30,637 22,975 30,805 24,449 Weighted-average effect of dilutive securities (1) 252 — 453 — 629 — Weighted-average number of shares outstanding, diluted 30,857 22,527 31,090 22,975 31,434 24,449 Earnings per share - diluted $ 0.54 $ 0.52 $ 0.26 $ 0.19 $ 0.50 $ 0.42 Listed below are the shares excluded from the denominator in the above computation of diluted earnings per share for CRD-A because their inclusion would have been anti-dilutive: Year Ended December 31, 2020 2019 2018 (In thousands) Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period 1,996 622 1,175 Performance stock grants excluded because performance conditions had not been met (1) 578 717 752 (1) Compensation cost is recognized for these performance stock grants based on expected achievement rates; however no consideration is given for these performance stock grants when calculating earnings per share until the performance measurements are actually achieved. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 10. Accumulated Other Comprehensive Loss Comprehensive income (loss) for the Company consists of the total of net income, foreign currency translation adjustments, and accrued pension and retiree medical liability adjustments. Foreign currency translation adjustments include net unrealized losses from intra-entity loans that are long-term in nature of $(5,165,000), $(928,000), and $(1,838,000) for the years ended December 31, 2020, 2019, and 2018, respectively. The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's Consolidated Balance Sheets were as follows: Foreign currency translation adjustments Retirement liabilities AOCL attributable to shareholders of Crawford & Company (In thousands) Balance at December 31, 2018 $ (36,352 ) $ (180,095 ) $ (216,447 ) Other comprehensive income before reclassifications 502 — 502 Unrealized net gains arising during the year — 1,036 1,036 Amounts reclassified from accumulated other comprehensive income to net income (1) — 8,002 8,002 Net current period other comprehensive income 502 9,038 9,540 Balance at December 31, 2019 (35,850 ) (171,057 ) (206,907 ) Other comprehensive income before reclassifications 4,595 — 4,595 Unrealized net losses arising during the year — (4,966 ) (4,966 ) Amounts reclassified from accumulated other comprehensive income to net income (1) — 7,959 7,959 Net current period other comprehensive income 4,595 2,993 7,588 Acquisition/Disposition of noncontrolling interest 463 — 463 Balance at December 31, 2020 $ (30,792 ) $ (168,064 ) $ (198,856 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's Consolidated Statements of Operations. See Note 8, "Retirement Plans" for additional details. Other comprehensive loss amounts attributable to noncontrolling interests shown in the Company's Consolidated Statements of Shareholders' Investment are foreign currency translation adjustments. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share Based Compensation [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation The Company has various stock-based incentive compensation plans for its employees and members of its Board of Directors. Only shares of CRD-A can be issued under these plans. The fair value of an equity award is estimated on the grant date without regard to service or performance conditions. The fair value is recognized as compensation expense over the requisite service period for all awards that vest. When recognizing compensation expense, estimates are made for the number of awards that are expected to vest, and subsequent adjustments are made to reflect both changes in the number of shares expected to vest and actual vesting. Compensation expense recognized at the end of any year equals at least the portion of the grant-date value of an award that has vested at that date. The pretax compensation expense recognized for all stock-based compensation plans was $4,384,000, $4,109,000, and $6,196,000 for the years ended December 31, 2020, 2019, and 2018, respectively. During 2019, there was increased performance share forfeiture activity, which resulted in the decreased stock-based compensation for that year as compared to 2020 and 2018. In 2020, the increase was offset by less expense from restricted shares and stock options. The total income tax benefit recognized in the Consolidated Statements of Operations for stock-based compensation arrangements was approximately $947,000, $888,000, and $1,475,000 for the ended December 31, 2020, 2019, and 2018, respectively. Some of the Company's stock-based compensation awards are granted under plans which are designed not to be taxable as compensation to the recipient based on tax laws of the U.S. or other applicable country. Accordingly, the Company does not recognize tax benefits on all of its stock-based compensation expense. Adjustments to additional paid-in capital for differences between deductions taken on its income tax returns related to stock-based compensation plans and the related income tax benefits previously recognized for financial reporting purposes were not significant in any year. Stock Options The Company has granted nonqualified and incentive stock options to key employees and directors. All stock options are for shares of CRD-A. Option awards are granted with an exercise price equal to the fair market value of the Company's stock on the date of grant. The Company's stock option plans have been approved by shareholders, and the Company's Board of Directors is authorized to make specific grants of stock options under active plans. Employee stock options typically are subject to graded vesting over three years (33% each year) and have a typical life of ten years. Compensation cost for stock options is recognized on an accelerated basis over the requisite service period for the entire award. For the years ended December 31, 2020, 2019, and 2018, compensation expense of $617,000, $1,397,000, and $1,253,000, respectively, was recognized for employee stock option awards. A summary of option activity as of December 31, 2020, 2019, and 2018, and changes during each year, is presented below: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In thousands) Outstanding at December 31, 2017 887 $ 8.53 8.4 years $ 527 Granted 582 8.60 Exercised (21 ) 4.88 Forfeited or expired (154 ) 8.74 Outstanding at December 31, 2018 1,294 8.60 8.1 years 667 Granted 591 9.70 Exercised (111 ) 5.91 Forfeited or expired (80 ) 9.24 Outstanding at December 31, 2019 1,694 9.13 7.9 years 3,969 Granted 660 8.73 Exercised — — Forfeited or expired (458 ) 9.05 Outstanding at December 31, 2020 1,896 $ 9.01 7.4 years $ 114 Vested and Exercisable at December 31, 2020 1,101 $ 9.06 6.6 years $ 26 The weighted average grant date fair value of stock options granted during the year ended December 31, 2020, 2019, and 2018 was $2.29, $2.57 and $2.78, respectively. No options were exercised in 2020. Options vested in 2019 and 2018 had an intrinsic value of $446,000, and $80,000, respectively. Options that vested in 2020 had no fair value. The fair value of options that vested in 2019 and 2018 was $1,000,000 and $36,000, respectively. At December 31, 2020, the unrecognized compensation cost related to unvested employee stock options was $636,000. Directors' stock options had no unrecognized compensation cost since directors' options vest upon grant, and the grant-date fair values were fully expensed on the grant date. The fair value of each option was estimated on the date of grant using the Black-Scholes-Merton option-pricing formula, with the following weighted average assumptions: 2020 2019 Expected dividend yield 3.02 % 3.80 % Expected volatility 35.48 % 36.73 % Risk-free interest rate 1.38 % 2.56 % Expected term of options 7 years 7 years The expected dividend yield used for 2020 was based on the Company's historical dividend yield. The expected volatility of the price of CRD-A was based on historical realized volatility. The risk-free interest rate was based on the U.S. Treasury Daily Yield Curve Rate on the grant date, with a term equal to the expected term used in the pricing formula. The expected term of the option took into account both the contractual term of the option and the effects of expected exercise behavior. Performance-Based Stock Grants Performance share grants are from time to time made to certain key employees of the Company. Such grants entitle employees to earn shares of CRD-A upon the achievement of certain individual and/or corporate objectives. Grants of performance shares are made at the discretion of the Company's Board of Directors, or the Board's Compensation Committee, and are subject to graded or cliff vesting over three-year periods. Shares are not issued until the vesting requirements have been met. Dividends are not paid or accrued on unvested/unissued shares. The grant-date fair value of a performance share grant is based on the market value of CRD-A on the date of grant, reduced for the present value of any dividends expected to be paid on CRD-A prior to the vesting of the award. Compensation expense for each award is recognized ratably from the grant date to the vesting date for each tranche. On September 23, 2020, deeming the existing performance based cliff awards granted in 2019 and 2020 to be unattainable, the Compensation Committee cancelled the existing awards and approved a new plan based on Total Shareholder Return (“TSR”), a market condition. The 2019 replacement awards were targeted to achieve 50% of the original award it was replacing and set to vest on December 31, 2021. The 2020 replacement awards were targeted to achieve 100% of the original award it was replacing, with a vesting date of December 31, 2022. TSR is defined as dividends paid during the measurement period plus share price appreciation. Share price appreciation is measured by using the 20 day trading day volume weighted average price at the start of the measurement period as the baseline, compared against the highest consecutive 20 day trading day volume weighted average price for the period between January 1, 2021 and the vesting date for the 2019 replacement awards and between January 1, 2022 and the vesting date for the 2020 replacement awards. Depending on the TSR, the number of shares earned can be between 50% and 200% of the targeted shares granted. If the TSR is below 10% for the 2019 replacement awards, or 20% for the 2020 replacement awards, then no shares vest. The cancellation and reissuance of these awards was treated as a Type III modification, where no cumulative expense is recognized prior to the cancellation as it was deemed improbable to vest. Expense of the modified award will be recorded ratably over the service life, based on the valuation determined by utilizing a Monte Carlo simulation. At the time of modification, employees were given an option to elect a cash payout at the vesting date, also based on a component of TSR. This one-time election had to be determined within 30 days of the grant date. Any awards where the cash payout option was elected were recorded as liability awards, which are included on the Company's Consolidated Balance Sheets in "Accrued compensation and related costs." A summary of the status of the Company's nonvested performance shares as of December 31, 2020, 2019, and 2018, and changes during each year, is presented below: Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2017 884,342 $ 7.05 Granted 751,128 7.43 Vested (445,311 ) 5.98 Forfeited or unearned (201,322 ) 7.54 Nonvested at December 31, 2018 988,837 8.07 Granted 626,776 8.87 Vested (214,824 ) 8.49 Forfeited or unearned (427,010 ) 8.34 Nonvested at December 31, 2019 973,779 8.38 Granted 1,616,902 8.01 Vested (224,681 ) 8.33 Forfeited or unearned (1,466,729 ) 8.10 Nonvested at December 31, 2020 899,271 $ 8.19 The total fair value of the performance shares that vested in 2020, 2019, and 2018 was $1,871,000, $1,823,000, and $2,662,000, respectively. Compensation expense recognized for all performance shares totaled $2,382,000, $1,082,000, and $3,307,000 for the years ended December 31, 2020, 2019 and 2018, respectively. Compensation cost for these awards is net of estimated or actual award forfeitures. Certain performance awards vest ratably, from grant date to vesting date of their respective tranches, without cumulative earnings per share targets. As of December 31, 2020, there was an estimated $4,999,000 of unearned compensation cost for nonvested performance shares. This unearned compensation cost is expected to be fully recognized by the end of 2022. Restricted Shares The Company's Board of Directors may elect to issue restricted shares of CRD-A in lieu of, or in addition to, cash payments to certain key employees. Employees receiving these shares are subject to restrictions on their ability to transfer the shares. Such restrictions generally lapse ratably over vesting periods ranging from several months to five years. The grant-date fair value of a restricted share of CRD-A is based on the market value of the stock on the date of grant. Compensation cost is recognized on an accelerated basis over the requisite service period. A summary of the status of the Company's restricted shares of CRD-A as of December 31, 2020, 2019, and 2018 and changes during each year, is presented below: Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2017 112,219 $ 7.89 Granted 112,502 7.81 Vested (131,260 ) 8.27 Forfeited or unearned (21,352 ) 8.43 Nonvested at December 31, 2018 72,109 7.76 Granted 149,496 9.38 Vested (108,610 ) 9.04 Forfeited or unearned (31,387 ) 9.55 Nonvested at December 31, 2019 81,608 8.35 Granted 117,279 8.34 Vested (119,327 ) 8.52 Forfeited or unearned — — Nonvested at December 31, 2020 79,560 $ 8.08 Compensation expense recognized for all restricted shares for the years ended December 31, 2020, 2019, and 2018 was $942,000, $1,205,000, and $1,176,000, respectively. As of December 31, 2020, there was $214,000 of total unearned compensation cost related to nonvested restricted shares which is expected to be recognized by December 31, 2022. Employee Stock Purchase Plans The Company has three employee stock purchase plans: the U.S. Plan, the U.K. Plan, and the International Plan. Eligible employees in Canada, Puerto Rico, and the U.S. Virgin Islands may also participate in the U.S. Plan. The International Plan is for eligible employees located in certain other countries who are not covered by the U.S. Plan or the U.K. Plan. All plans are compensatory. For all plans, the requisite service period is the period of time over which the employees contribute to the plans through payroll withholdings. For purposes of recognizing compensation expense, estimates are made for the total withholdings expected over the entire withholding period. The market price of a share of stock at the beginning of the withholding period is then used to estimate the total number of shares that will be purchased using the total estimated withholdings. Compensation cost is recognized ratably over the withholding period. Under the U.S. Plan, the Company is authorized to issue up to 1,200,000 shares of CRD-A to eligible employees. Participating employees can elect to have up to $25,000 of their eligible annual earnings withheld to purchase shares at the end of the one-year withholding period which starts each July 1 and ends the following June 30. The purchase price of the stock is 85% of the lesser of the closing price of a share of such stock on the first day or the last day of the withholding period. Participating employees may cease payroll withholdings during the withholding period and/or request a refund of all amounts withheld before any shares are purchased. During the years ended December 31, 2020, 2019 and 2018, a total of 114,408, 131,100, and 143,769 shares, respectively, of CRD-A were issued under the prior U.S. employee stock purchase plan to the Company's employees at average purchase prices of $6.71, $7.38, and $7.32 in 2020, 2019, and 2018, respectively. At December 31, 2020, an estimated 151,000 shares will be issued and purchased under the U.S. Plan in 2021. During the years ended December 31, 2020, 2019, and 2018, compensation expense of $343,000, $277,000, and $321,000, respectively, was recognized for the prior U.S. employee stock purchase plan. Under the U.K. Plan, the Company is authorized to issue up to 1,200,000 shares of CRD-A. Under the U.K. Plan, eligible employees can elect to have up to £250 withheld from payroll each month to purchase shares after the end of a three-year savings period. The purchase price of a share of stock is 85% of the market price of the stock at a date prior to the grant date as determined under the U.K. Plan. Participating employees may cease payroll withholdings and/or request a refund of all amounts withheld before any shares are purchased. At December 31, 2020, an estimated 108,000 shares will be eligible for purchase under the U.K. Plan at the end of the current withholding periods. This estimate is subject to change based on future fluctuations in the value of the British pound against the U.S. dollar, future changes in the market price of CRD-A, and future employee participation rates. The purchase price per share of CRD-A under the U.K. Plan ranges from $6.32 to $8.95. For the years ended December 31, 2020, 2019, and 2018, compensation expense of $163,000, $148,000, and $140,000, respectively, was recognized for the U.K. Plan. During 2020, 2019, and 2018, a total of 2,061 shares, 289,901 shares, and 63,033 shares, respectively, of CRD-A were issued under the U.K. Plan. Under the International Plan, up to 1,000,000 shares of CRD-A may be issued. Participating employees can elect to have up to $21,250 of their eligible annual earnings withheld to purchase up to 5,000 shares of CRD-A at the end of the one-year withholding period which starts each July 1 and ends the following June 30. The purchase price of the stock is 85% of the lesser of the closing price for a share of such stock on the first day or the last day of the withholding period. Participating employees may cease payroll withholdings during the withholding period and/or request a refund of all amounts withheld before any shares are purchased. During 2020, 2019, and 2018, 4,051, 4,264, and 8,740 shares, respectively, were issued under the International Plan. Compensation expense was immaterial for this plan in all three years. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements GAAP defines fair value as the price that would be received to sell an asset or to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1— Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1. The Company values assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Recurring Fair Value Measurements The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: December 31, 2020 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) Assets: Money market funds (1) $ 10,026 $ — $ — $ 10,026 Liabilities: Contingent earnout liability (2) — — 6,151 6,151 December 31, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (1) $ 10,028 $ — $ — $ 10,028 Liabilities: Contingent earnout liability (2) — — 454 454 (1) The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included on the Company's Consolidated Balance Sheets in "Cash and cash equivalents." (2) Fair Value Disclosures There were no transfers of assets between fair value levels during the years ended December 31, 2020 or 2019. The categorization of assets and liabilities within the fair value hierarchy and the measurement techniques are reviewed quarterly. Any transfers between levels are deemed to have occurred at the end of the quarter. The fair values of accounts receivable, unbilled revenues, accounts payable and short-term borrowings approximate their respective carrying values due to the short-term maturities of the instruments. The interest rate on the Company's variable rate long-term debt resets at least every 90 days; therefore, the recorded value approximates fair value. These assets and liabilities are measured within Level 2 of the fair value hierarchy. Nonrecurring Fair Value Disclosures During 2020, the Company impaired and expensed goodwill of $17,674,000. During 2019, the Company impaired and expensed goodwill of $17,484,000. During 2018, the Company impaired and expensed an indefinite-lived trade name of $1,056,000. See Note 1, "Significant Accounting and Reporting Policies" and Note 4, "Goodwill and Intangible Assets," where discussed in more detail. Fair Value Measurements for Defined Benefit Pension Plan Assets The fair value hierarchy is also applied to certain other assets that indirectly impact the Company's consolidated financial statements. Assets contributed by the Company to its defined benefit pension plans become the property of the individual plans. Even though the Company no longer has control over these assets, it is indirectly impacted by subsequent fair value adjustments to these assets. The actual return on these assets impacts the Company's future net periodic benefit cost, as well as amounts recognized in its Consolidated Balance Sheets. The Company uses the fair value hierarchy to measure the fair value of assets held by its U.S. and U.K. defined benefit pension plans. The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.S Qualified Plan at December 31, 2020 and 2019: December 31, 2020 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Asset Category: Cash and cash equivalents $ 2,861 $ — $ — $ 2,861 $ 8,082 $ — $ — $ 8,082 Short-term investment funds — 9,827 — 9,827 — 5,496 — 5,496 Common collective equity funds: — U.S. — 66,145 — 66,145 — 60,039 — 60,039 International — 28,529 — 28,529 — 26,142 — 26,142 Common collective fixed income funds and fixed income securities: — U.S. 36,007 207,219 — 243,226 51,247 224,747 — 275,994 International — 28,501 — 28,501 — 3,745 — 3,745 Alternative strategy funds — 9,248 15,938 25,186 — 8,880 14,766 23,646 Total plan assets $ 38,868 $ 349,469 $ 15,938 404,275 $ 59,329 $ 329,049 $ 14,766 403,144 Other plan liabilities, net (a) (7,336 ) (26,220 ) Net plan assets $ 396,939 $ 376,924 (a) net amounts payable for unsettled security transactions. The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.K. plans at December 31, 2020 and 2019: December 31, 2020 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Asset Category: Cash and cash equivalents $ 2,613 $ — $ — $ 2,613 $ 2,338 $ — $ — $ 2,338 Common collective equity funds: U.S. — 44,461 — 44,461 — 43,613 — 43,613 International — 7,510 — 7,510 — 9,418 — 9,418 Common collective fixed income funds and fixed income securities: Short-term investment funds: — 162,276 — 162,276 — 167,741 — 167,741 Government securities — 42,564 — 42,564 — 34,926 — 34,926 Alternative strategy funds — 34,958 — 34,958 — 29,172 — 29,172 Real estate funds — — 9,572 9,572 — — 9,735 9,735 Total plan assets $ 2,613 $ 291,769 $ 9,572 $ 303,954 $ 2,338 $ 284,870 $ 9,735 $ 296,943 Short-term investment funds consist primarily of funds with a maturity of 60 days or less and are valued at amortized cost which approximates fair value. Equity securities consist primarily of common collective funds (Level 2). Common collective funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. Fixed income securities consist of money market funds, government securities, corporate bonds and debt securities, mortgage-backed securities and other common collective funds. Government securities are valued by third-party pricing sources and are valued daily in an active market (Level 1). Corporate bonds are valued using either the yields currently available on comparable securities of issuers with similar credit ratings or using a discounted cash flows approach that utilizes observable inputs, such as current yields of similar instruments, and includes adjustments for valuation adjustments from internal pricing models which use observable inputs such as issuer details, interest rates, yield curves, default rates and quoted prices for similar assets (Level 2). Mortgage-backed securities are valued by pricing service providers that use broker-dealer quotations or valuation estimates from their internal pricing models (Level 2). Other common collective funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date (Level 2). Alternative strategy funds valued at the net asset value per share multiplied by the number of shares held as of the measurement date (Level 2). Alternative strategy funds may include derivative instruments such as futures, forward contracts, options and swaps and are used to help manage risks. Derivative instruments are generally valued by the investment managers or in certain instances by third party pricing sources (Level 2) or may, due to the inherent uncertainty of valuation for those investments, differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material (Level 3). Real estate funds are primarily property unit trusts whose values are primarily reported by the fund manager and are based on valuation of the underlying investments which include inputs such as cost, discounted cash flows, independent appraisals and market-based comparable data (Level 3). The fair values may, due to the inherent uncertainty of valuation for those investments, differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material. The following table provides a reconciliation of the beginning and ending balance of Level 3 assets within the Company's U.S. and U.K. pension plans during the years ended December 31, 2020 and 2019: U.S U.K. (in thousands) Balance at December 31, 2018 $ 16,488 $ 9,945 Actual return on plan assets: Related to assets still held at the reporting date (1,722 ) (210 ) Balance at December 31, 2019 14,766 9,735 Actual return on plan assets: Related to assets still held at the reporting date 1,172 (163 ) Balance at December 31, 2020 $ 15,938 $ 9,572 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 13. Segment and Geographic Information The Company's three reportable segments represent components of the business for which separate financial information is available, and which is evaluated regularly by the CODM. The segments, organized based upon the nature of services, are: Crawford Claims Solutions, which primarily serves the global property and casualty insurance company markets; Crawford TPA Solutions, which serves the global casualty, disability and self-insurance marketplace; and Crawford Specialty Solutions which serves the global property and casualty insurance company markets. Intersegment sales are recorded at cost and are not material. Operating earnings is the primary financial performance measure used by the Company's senior management and the CODM to evaluate the financial performance of the Company's three reportable segments and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate segment operating performance using the same criteria used by the Company's senior management and CODM. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represent segment earnings before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, goodwill and intangible asset impairments, restructuring and other costs, (gain) loss on disposition of business line, arbitration and claim settlements, income taxes, and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests. Segment operating earnings includes allocations of certain corporate and shared costs. If the Company changes its allocation methods or changes the types of costs that are allocated to its three reportable segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process. In the normal course of its business, the Company sometimes pays for certain out-of-pocket expenses that are thereafter reimbursed by its clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in the Company's consolidated results of operations. However, in evaluating segment results, Company management excludes these reimbursements and related expenses from segment results, as they offset each other. Financial information as of and for the years ended December 31, 2020, 2019, and 2018 related to the Company's reportable segments is presented below. Crawford Claims Solutions Crawford TPA Solutions Crawford Specialty Solutions Total 2020 Revenues before reimbursements $ 356,447 $ 364,983 $ 261,062 $ 982,492 Segment operating earnings 14,375 21,476 52,553 88,404 Depreciation and amortization (1) 2,405 9,345 1,291 13,041 Assets (2) 120,777 88,002 155,522 364,301 2019 Revenues before reimbursements $ 339,837 $ 393,856 $ 272,109 $ 1,005,802 Segment operating earnings 7,630 27,173 49,321 84,124 Depreciation and amortization (1) 2,461 10,152 1,811 14,424 Assets (2) 136,451 85,810 165,575 387,836 2018 Revenues before reimbursements $ 361,053 $ 405,335 $ 304,583 $ 1,070,971 Segment operating earnings 11,308 36,909 49,564 97,781 Depreciation and amortization (1) 3,485 9,844 3,517 16,846 Assets (2) 163,899 92,007 165,415 421,321 (1) Excludes amortization expense of finite-lived customer relationships and trade name intangible assets. (2) Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. Revenues by geographic region and major service line for the Crawford Claims Solutions, Crawford TPA Solutions and Crawford Specialty Solutions segments are shown in Note 2, "Revenue Recognition." Capital expenditures for the years ended December 31, 2020, 2019, and 2018 are shown in the following table: Year Ended December 31, 2020 2019 2018 (In thousands) Crawford Claims Solutions $ 5,443 $ 1,396 $ 3,811 Crawford TPA Solutions 6,527 3,259 5,947 Crawford Specialty Solutions 5,686 458 2,148 Corporate 19,724 16,011 18,114 Total capital expenditures $ 37,380 $ 21,124 $ 30,020 The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2020, 2019, and 2018 was as follows: Year Ended December 31, 2020 2019 2018 (In thousands) Segments' revenues before reimbursements $ 982,492 $ 1,005,802 $ 1,070,971 Reimbursements 33,703 41,825 52,008 Total consolidated revenues $ 1,016,195 $ 1,047,627 $ 1,122,979 The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2020, 2019, and 2018 were as follows: Year Ended December 31, 2020 2019 2018 (In thousands) Operating earnings of all reportable segments $ 88,404 $ 84,124 $ 97,781 Unallocated corporate and shared costs and credits (16,574 ) (6,515 ) (9,321 ) Net corporate interest expense (7,923 ) (10,774 ) (10,109 ) Stock option expense (1,122 ) (1,885 ) (1,742 ) Amortization of acquisition-related intangible assets (11,653 ) (11,277 ) (11,152 ) Goodwill and intangible asset impairments (17,674 ) (17,484 ) (1,056 ) Arbitration and claim settlements — (12,552 ) — Restructuring and other costs, net (8,133 ) — — Gain (loss) on disposition of businesses, net 13,763 — (20,270 ) Income before income taxes $ 39,088 $ 23,637 $ 44,131 The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at December 31, 2020 and 2019 are presented in the following table: December 31, 2020 2019 (In thousands) Assets of reportable segments $ 364,301 $ 387,836 Corporate assets: Cash and cash equivalents 44,656 51,802 Income taxes receivable 1,269 7,820 Prepaid expenses and other current assets 29,490 23,476 Net property and equipment 36,402 31,425 Operating lease right-of-use asset, net 109,315 102,354 Capitalized software costs, net 71,021 66,445 Deferred income tax assets 25,595 17,971 Other noncurrent assets 70,935 70,884 Total corporate assets 388,683 372,177 Total assets $ 752,984 $ 760,013 Revenues and long-lived assets for the U.S., U.K. and Canada are set out below as these countries are material for geographical area disclosure. For the purposes of these geographic area disclosures, long-lived assets consists of the net property and equipment, capitalized software costs, net and operating lease right-of-use, net line items on the Company's Consolidated Balance Sheets and excludes intangible assets and goodwill. U.S. U.K. Canada All Other International Total Company (In thousands) 2020 Revenues before reimbursements $ 570,822 $ 128,545 $ 89,163 $ 193,962 $ 982,492 Long-lived assets 151,906 20,290 14,404 30,138 216,738 2019 Revenues before reimbursements 569,205 126,337 114,438 195,822 1,005,802 Long-lived assets 140,560 20,749 17,999 20,916 200,224 2018 Revenues before reimbursements 615,687 131,651 121,076 202,557 1,070,971 Long-lived assets 88,157 7,631 7,553 3,172 106,513 |
Client Funds
Client Funds | 12 Months Ended |
Dec. 31, 2020 | |
Client Funds [Abstract] | |
Client Funds | 14. Client Funds The Company maintains funds in custodial accounts at financial institutions to administer claims for certain clients. These funds are not available for the Company's general operating activities and, as such, have not been recorded in the accompanying Consolidated Balance Sheets. The amount of these funds totaled $537,531,000 and $410,673,000 at December 31, 2020 and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies As part of the Company's Credit Facility, the Company maintains a letter of credit facility to satisfy certain of its own contractual requirements. At December 31, 2020, the aggregate committed amount of letters of credit outstanding under the facility was $11,512,000. From time to time, the Company enters into certain agreements for the purchase or sale of assets or businesses that contain provisions that may require the Company to make additional payments in the future depending upon the achievement of specified operating results of the acquired company, or provide the Company with an option or similar right to purchase additional assets. In the normal course of its business, the Company is sometimes named as a defendant or responsible party in suits or other actions by insureds or claimants contesting decisions made by the Company or its clients with respect to the settlement of claims. Additionally, certain clients of the Company have in the past brought, and may, in the future bring, claims for indemnification on the basis of alleged actions by the Company, its agents, or its employees in rendering services to clients. The majority of these claims are of the type covered by insurance maintained by the Company. However, the Company is responsible for the deductibles and self-insured retentions under various insurance coverages. In the opinion of Company management, adequate provisions have been made for such known and foreseeable risks. No assurances can be provided, however, that the result of any such action, claim or proceeding, now known or occurring in the future, will not result in a material adverse effect on our business, financial condition or results of operations. The Company is subject to numerous federal, state, and foreign labor, employment, worker health and safety, antitrust and competition, environmental and consumer protection, import/export, anti-corruption, and other laws. From time to time the Company faces claims and investigations by employees, former employees, and governmental entities under such laws or employment contracts with such employees or former employees. Such claims, investigations, and any litigation involving the Company could divert management's time and attention from the Company's business operations and could potentially result in substantial costs of defense, settlement or other disposition, which could have a material adverse effect on the Company's results of operations, financial position, and cash flows. In the opinion of Company management, adequate provisions have been made for any items that are probable and reasonably estimable. |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Costs | 16. Restructuring and Other Costs, Net The Company incurred net restructuring and other costs of $8,133,000 in 2020. There were no restructuring and other costs in 2019 or 2018. Restructuring costs for the year ended December 31, 2020 were related to reductions of administrative costs and consolidation of management layers in certain operations, and other restructuring charges for asset impairments and lease termination costs. The following table shows the costs incurred by type of restructuring activity: Year ended December 31 2020 2019 2018 (In thousands) Severance benefits $ 9,350 $ — $ — Asset impairments and lease termination costs 2,538 — — Gain on fair value remeasurement of cost and equity method investments (1,099 ) — — Liquidation dividend from a cost method investment (1,247 ) — — Gain on sale of internet protocol addresses (1,409 ) — — Total restructuring and other costs, net $ 8,133 $ — $ — Restructuring costs were predominantly comprised of severance costs, asset impairments, and lease termination costs. Severance and other termination costs relate to efforts to consolidate and streamline various functions of our workforce, both in operations and administrative functions. Asset impairments, including costs incurred for obsolete software, relate to decisions to close certain operations, and lease termination costs related to the exiting of certain leased facilities. These costs were partially offset by certain non-operating credits that occurred related to a cost method investment and sale of internet protocol addresses. As of December 31, 2020, the following liabilities remained on the Company's Consolidated Balance Sheets related to restructuring charges recorded in 2020 and 2017. The rollforwards of these costs to December 31, 2020 were as follows: Restructuring and Other Costs Deferred rent Accrued compensation and related costs Other accrued liabilities Total (In thousands) Balance at December 31, 2017 $ 2,846 $ 4,782 $ 1,785 $ 9,413 Additions — — — — Adjustments to accruals (1,544 ) — (643 ) (2,187 ) Cash payments — (4,305 ) (656 ) (4,961 ) Balance at December 31, 2018 1,302 477 486 2,265 Additions — — — — Adjustments to accruals (1,302 ) — 1 (1,301 ) Cash payments — (135 ) (15 ) (150 ) Balance at December 31, 2019 — 342 472 814 Additions — 9,112 648 9,760 Adjustments to accruals — (453 ) (472 ) (925 ) Cash payments — (5,632 ) (58 ) (5,690 ) Balance at December 31, 2020 $ — $ 3,369 $ 590 $ 3,959 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17 . Subsequent Events Segment Realignment In connection with the realignment of operating segment manager responsibilities subsequent to December 31, 2020, the Company has realigned its operating segments by moving to a global service line reporting structure consisting of Loss Adjusting, TPA: Broadspire and Platforms. The Company's revised reportable segments are comprised of the following: • Loss Adjusting, which services the global property and casualty market. This is comprised of the previously reported Crawford Claims Solutions segment, excluding Networks (as defined below) and Crawford Legal Services, and the Global Technical Services service line previously reported within Crawford Specialty Solutions. • TPA: Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers worldwide. This is comprised of the previously reported Broadspire segment and the Crawford Legal Services service line previously reported within the Crawford Claims Solutions segment. • Platform Solutions, which consists of Contractor Connection and Networks service lines. This is comprised of the previously reported Contractor Connection service line within Crawford Specialty Solutions and the Networks service line, which includes Catastrophe operations, WeGoLook, and certain international network businesses previously reported within the Crawford Claims Solutions segment. The succeeding interim and annual periods will disclose the reportable segments under the new basis with prior periods restated to reflect the change. Acquisition 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 cash payment of $4.1 million, net of working capital adjustment, and a maximum $3.2 million payable in cash over the next four years based on achieving certain revenue and EBITDA performance goals. This acquisition will be accounted for under the guidance of ASC 805-10, as a business combination under the acquisition method. Based upon the timing of this acquisition, the initial accounting for the acquisition 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 third-party valuations of certain intangible assets. 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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | CRAWFORD & COMPANY QUARTERLY FINANCIAL DATA (UNAUDITED) 2020 Quarterly Period First Second Third Fourth Full Year (In thousands, except per share amounts) Revenues from services: Revenues before reimbursements $ 237,531 $ 234,416 $ 253,124 $ 257,421 $ 982,492 Reimbursements 8,515 8,459 8,545 8,184 33,703 Total revenues 246,046 242,875 261,669 265,605 1,016,195 Total costs of services 186,119 172,057 185,606 193,538 737,320 (Loss) Income before income taxes (21,645 ) 12,433 36,438 11,862 39,088 Crawford Claims Solutions Operating (Loss) Earnings (1) (3,679 ) 2,789 7,219 8,046 14,375 Crawford TPA Solutions Operating Earnings (1) 6,285 3,171 4,414 7,606 21,476 Crawford Specialty Solutions Operating Earnings (1) 6,957 13,993 17,390 14,213 52,553 Unallocated corporate and shared costs, net (2,550 ) (1,709 ) (968 ) (11,347 ) (16,574 ) Goodwill impairment (4) (17,674 ) — — — (17,674 ) Net corporate interest expense (2,224 ) (2,452 ) (1,599 ) (1,648 ) (7,923 ) Stock option expense (290 ) (286 ) (457 ) (89 ) (1,122 ) Amortization of customer-relationship intangible assets (2,756 ) (2,732 ) (3,665 ) (2,500 ) (11,653 ) Restructuring and other costs, net (4) (5,714 ) — — (2,419 ) (8,133 ) (Loss) gain on disposal of businesses, net (4) — (341 ) 14,104 — 13,763 Income tax benefit (provision) 8,486 (6,311 ) (11,729 ) (2,459 ) (12,013 ) Net loss (income) attributable to noncontrolling interests 1,760 (224 ) (312 ) (3 ) 1,221 Net (loss) income attributable to shareholders of Crawford & Company $ (11,399 ) $ 5,898 $ 24,397 $ 9,400 $ 28,296 (Loss) Earnings Per Share - Basic: (2) (3) Class A Common Stock $ (0.21 ) $ 0.11 $ 0.46 $ 0.18 $ 0.54 Class B Common Stock $ (0.23 ) $ 0.11 $ 0.46 $ 0.18 $ 0.52 (Loss) Earnings Per Share - Diluted: (2) (3) Class A Common Stock $ (0.21 ) $ 0.11 $ 0.46 $ 0.18 $ 0.54 Class B Common Stock $ (0.23 ) $ 0.11 $ 0.46 $ 0.18 $ 0.52 2019 Quarterly Period First Second Third Fourth Full Year (In thousands, except per share amounts) Revenues from services: Revenues before reimbursements $ 247,058 $ 256,881 $ 254,677 $ 247,186 $ 1,005,802 Reimbursements 9,319 10,965 11,165 10,376 41,825 Total revenues 256,377 267,846 265,842 257,562 1,047,627 Total costs of services 187,207 185,892 192,014 187,660 752,773 Income (Loss) before income taxes 8,702 5,483 16,019 (6,567 ) 23,637 Crawford Claims Solutions Operating (Loss) Earnings (1) (313 ) 1,710 2,661 3,572 7,630 Crawford TPA Solutions Operating Earnings (1) 6,733 5,026 9,347 6,067 27,173 Crawford Specialty Solutions Operating Earnings (1) 12,195 12,612 13,301 11,213 49,321 Unallocated corporate and shared costs, net (3,914 ) 3,170 (1,649 ) (4,122 ) (6,515 ) Goodwill impairment (4) — — — (17,484 ) (17,484 ) Net corporate interest expense (2,716 ) (2,468 ) (3,162 ) (2,428 ) (10,774 ) Stock option expense (485 ) (413 ) (450 ) (537 ) (1,885 ) Amortization of customer-relationship intangible assets (2,798 ) (2,802 ) (2,829 ) (2,848 ) (11,277 ) Arbitration and claim settlements (4) — (11,352 ) (1,200 ) — (12,552 ) Income taxes (2,933 ) (2,859 ) (5,328 ) (2,991 ) (14,111 ) Net loss attributable to noncontrolling interests 340 18 355 2,246 2,959 Net income (loss) attributable to shareholders of Crawford & Company $ 6,109 $ 2,642 $ 11,046 $ (7,312 ) $ 12,485 Earnings (Loss) Per Share - Basic: (2) (3) Class A Common Stock $ 0.12 $ 0.06 $ 0.22 $ (0.13 ) $ 0.27 Class B Common Stock $ 0.10 $ 0.04 $ 0.19 $ (0.15 ) $ 0.19 Earnings (Loss) Per Share - Diluted: (2) (3) Class A Common Stock $ 0.12 $ 0.06 $ 0.21 $ (0.13 ) $ 0.26 Class B Common Stock $ 0.10 $ 0.04 $ 0.19 $ (0.15 ) $ 0.19 (1) This is a segment financial measure representing segment earnings before certain unallocated corporate and shared costs and credits, goodwill and intangible asset impairment charges, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, restructuring and other costs, gain/loss on disposal of business, income taxes, and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests. See Note 13, "Segment and Geographic Information," in the consolidated financial statements contained in this Item 8. (2) Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data. (3) The Company may pay a higher dividend on CRD-A than on CRD-B. This dividend differential can result in different earnings (loss) per share for each class of stock due to the two-class method of computing earnings (loss) per share as required by current accounting guidance. CRD-B generally presents a more dilutive measure. (4) |
Significant Accounting and Re_2
Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements were prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") and include the accounts of the Company, its majority-owned subsidiaries, and variable interest entities in which the Company is deemed to be the primary beneficiary. Significant intercompany transactions are eliminated in consolidation. Financial results from the Company's operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines, are reported and consolidated on a two-month delayed basis in accordance with the provisions of Accounting Standards Codification ("ASC") 810, "Consolidation," in order to provide sufficient time for accumulation of their results. Accordingly, the Company's December 31, 2020, 2019, and 2018 consolidated financial statements include the financial position of such operations as of October 31, 2020 and 2019, respectively, and the results of their operations and cash flows for the fiscal periods ended October 31, 2020, 2019, and 2018, respectively. The Company has controlling ownership interests in several entities that are not wholly-owned by the Company. The financial results and financial positions of these controlled entities are included in the Company's consolidated financial statements, including the controlling interests, noncontrolling interests, and redeemable noncontrolling interests. The noncontrolling interests and redeemable noncontrolling interests represent the equity interests in these entities that are not attributable, either directly or indirectly, to the Company. On the Company's Consolidated Statements of Operations, net income or loss is separately attributed to the controlling interests and noncontrolling interests and redeemable noncontrolling interests. Noncontrolling interests represent the minority shareholders' share of the net income or loss and shareholders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' investment as "Redeemable Noncontrolling Interests" and are carried at either their initial fair value plus any profits or losses or estimated redemption value if an adjustment is required. The Company consolidates the results of a variable interest entity ("VIE") when it is determined to be the primary beneficiary. In accordance with GAAP, in determining whether the Company is the primary beneficiary of a VIE for financial reporting purposes, it considers whether it has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether it has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. The Company sold its 51% interest in Lloyd Warwick International Limited ("LWI") to a third party in June 2020. Prior to the sale, LWI was considered a VIE of the Company. As the primary beneficiary of LWI, the Company consolidated the results of LWI because of its controlling ownership interest and because Crawford had the obligation to absorb LWI's losses through the additional financial support that Crawford may be obligated to provide. As a result of the sale, LWI is no longer considered a VIE of the Company, and the Company no longer consolidates the results of LWI nor is obligated to provide financial support to LWI. See Note 3, “Business Acquisitions and Dispositions” of our accompanying consolidated financial statements for further discussion related to the sale of the Company’s interest in LWI. The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and also considered a VIE of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan. At December 31, 2020 and 2019, the liabilities of this deferred compensation plan were $7,961,000 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 $16,323,000 and $16,527,000, respectively. These liabilities and assets are included in "Other noncurrent liabilities" and "Other noncurrent assets" on the Company's Consolidated Balance Sheets, respectively. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company has not applied for governmental loans from the CARES Act or any other governmental programs to support the Company’s U.S. operations. The Company 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, third and fourth quarters of 2020. The wage subsidy is included in "Costs of services provided, before reimbursements” or “Selling, general, and administrative expenses” on the Consolidated Statements of Operations, depending on the location of the employees, and is recorded as a reduction of compensation expense. In 2020, the Company recognized $13.8 million as a reduction of compensation expense as a result of this subsidy. |
Prior Year Reclassifications | Prior Year Reclassifications Periodically, certain prior year segment information may be reclassified to conform to the current year presentation. There were no such reclassifications in the current year. |
Management's Use of Estimates | Management's Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition Revenues are recognized when control of the promised services are transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are recognized net of any sales, use or value added taxes collected from customers, which are subsequently remitted to governmental authorities. As the Company completes its performance obligations, it has an unconditional right to consideration as outlined in the Company's contracts. The Company's Crawford Claims Solutions segment generates revenue for claims management 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 personal property. The Company's Crawford TPA Solutions segment is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Company's Crawford 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. The Contractor Connection service line generates revenue through its independently managed contractor network, with approximately 6,000 credentialed residential and commercial contractors. See Note 2, “Revenue Recognition” for further discussion on the Company’s revenue recognition policies. Intersegment sales are recorded at cost and are not material. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. The fair value of cash and cash equivalents approximates carrying value due to their short-term nature. At December 31, 2020, cash and cash equivalents included time deposits of approximately $1,473,000 that were in financial institutions outside the U.S. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Expected Credit Losses The Company extends credit based on an evaluation of a client's financial condition and, generally, collateral is not required. Accounts receivable are typically due upon receipt of the invoice and are stated on the Company's Consolidated Balance Sheets at amounts due from clients net of an estimated allowance for expected credit losses. Accounts outstanding longer than the contractual payment terms are considered past due. The fair value of accounts receivable approximates book value due to their short-term contractual stipulations. The Company maintains an allowance for expected credit losses resulting primarily from the inability of clients to make required payments. Such losses are accounted for as bad debt expense, while adjustments to invoices are accounted for as reductions to revenue. These allowances are established using historical write-off or adjustment information to project future experience and by considering the current creditworthiness of clients, any known specific collection problems, and an assessment of current industry and economic conditions. Actual experience may differ significantly from historical or expected loss results. The Company writes off accounts receivable when they become uncollectible, and any payments subsequently received are accounted for as recoveries. A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2020, 2019, and 2018 is as follows: 2020 2019 2018 (In thousands) Allowance for expected credit losses, January 1 $ 9,348 $ 9,625 $ 12,588 Add/ (Deduct): Adoption of Topic 326 (464 ) — — Provision for bad debt expense 1,504 1,588 2,709 Write-offs, net of recoveries (908 ) (81 ) (3,695 ) Adjustments for business acquisitions and dispositions (111 ) — (1,612 ) Currency translation and other changes 95 (1,784 ) (365 ) Allowance for expected credit losses, December 31 $ 9,464 $ 9,348 $ 9,625 |
Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived Assets | Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived Assets Goodwill is an asset that represents the excess of the purchase price over the fair value of the separately identifiable net assets (tangible and intangible) acquired in 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 $17.7 million, reducing the goodwill carrying value of Crawford Claims Solutions to $0 as of March 31, 2020. During the fourth quarter of 2020, the Company performed the goodwill impairment testing on the remaining reporting units. The estimated fair value of the Company's Crawford TPA Solutions, Global Technical Services and Contractor Connection reporting units exceed their carrying value by a significant margin. The Company intends to continue to monitor the performance of its reporting units for potential indicators of impairment. If impairment indicators exist, the Company will perform an interim goodwill impairment analysis. The key assumptions used in estimating the fair value of our reporting units utilizing the income approach include the discount rate and the terminal growth rate. The discount rates utilized in estimating the fair value of our reporting units in 2020 range between 15.0% and 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. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The Company depreciates the cost of property and equipment, including assets recorded under finance leases, over the shorter of the remaining lease term or the estimated useful lives of the related assets, primarily using the straight-line method. The estimated useful lives for property and equipment classifications are as follows: Classification Estimated Useful Lives Furniture and fixtures 3-10 years Data processing equipment 3-5 years Automobiles and other 3-4 years Buildings and improvements 7-40 years Property and equipment, including assets under finance leases, consisted of the following at December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Land $ 338 $ 331 Buildings and improvements 32,087 28,840 Furniture and fixtures 28,264 29,898 Data processing equipment 64,781 57,574 Automobiles 314 236 Total property and equipment 125,784 116,879 Less accumulated depreciation (89,382 ) (85,454 ) Net property and equipment $ 36,402 $ 31,425 Depreciation on property and equipment, including property under finance leases and amortization of leasehold improvements, was $11,750,000, $11,363,000, and $12,862,000 for the years ended December 31, 2020, 2019, and 2018, respectively. |
Capitalized Software | Capitalized Software Capitalized software costs reflect costs related to internally developed or purchased software used by the Company that has expected future economic benefits. Certain internal and external costs incurred during the application development stage are capitalized. Costs incurred during the preliminary project and post implementation stages, including training and maintenance costs, are expensed as incurred. The majority of these capitalized software costs consist of internal payroll costs and external payments for software development, purchases and related services. These capitalized software costs are typically amortized over periods ranging from three to ten years, depending on the estimated life of each software application. Amortization expense for capitalized software was $16,709,000, $17,873,000, and $20,066,000 for the years ended December 31, 2020, 2019, and 2018, respectively. |
Self-Insured Risks | Self-Insured Risks The Company self-insures certain risks consisting primarily of professional liability, auto liability, and employee medical, disability, and workers' compensation liability. Insurance coverage is obtained for catastrophic property and casualty exposures, including professional liability on a claims-made basis, and those risks required to be insured by law or contract. Most of these self-insured risks are in the U.S. Provisions for claims under the self-insured programs are made based on the Company's estimates of the aggregate liabilities for claims incurred, including estimated legal fees, losses that have occurred but have not been reported to the Company, and for adverse developments on reported losses. The estimated liabilities are calculated based on historical claims experience, the expected lives of the claims, and other factors considered relevant by management. Changes in these estimates may occur as additional information becomes available. |
Income Taxes | Income Taxes The Company accounts for certain income and expense items differently for financial reporting and income tax purposes. Provisions for deferred taxes are made in recognition of these temporary differences. The most significant differences relate to accrued compensation, pension plans, self-insurance, and depreciation and amortization. For financial reporting purposes, the provision for income taxes is the sum of income taxes both currently payable and payable on a deferred basis. Currently payable income taxes represent the liability related to the income tax returns for the current year, while the net deferred tax expense or benefit represents the change in the balance of deferred income tax assets or liabilities as reported on the Company's Consolidated Balance Sheets that are not related to balances in "Accumulated other comprehensive loss." The changes in deferred income tax assets and liabilities are determined based upon changes in the differences between the basis of assets and liabilities for financial reporting purposes and the basis of assets and liabilities for income tax purposes, measured by the enacted statutory tax rates in effect for the year in which the Company estimates these differences will reverse. The Company must estimate the timing of the reversal of temporary differences, as well as whether taxable income in future periods will be sufficient to fully recognize any gross deferred tax assets. A valuation allowance is provided when it is deemed more-likely-than-not that some portion or all of a deferred tax asset will not be realized. In 2017, the Company estimated the impact of the Tax Cuts and Jobs Act (the "Tax Act") incorporating assumptions made based upon its current interpretation of the Tax Act and included them in its consolidated financial statements for the year ended December 31, 2017. The SEC Staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company recognized provisional tax impacts related to a one-time U.S. tax liability on those earnings a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”) and revaluation of domestic deferred tax balances, and included those amounts in its consolidated financial statements for the year ended December 31, 2017. In the period ended December 31, 2018, the Company completed its accounting for the Tax Act in accordance with SAB 118. As a result, the Company recorded additional income tax expense of $3,583,000. This expense consisted of substantially all of the $6,977,000 valuation allowance established against foreign tax credits and $102,000 for the revaluation of deferred taxes, net of $3,496,000 of Transition Tax release of uncertain tax positions and adjustments. In 2018, the Company completed the accounting for the Tax Act within the one year measurement period, as allowed under SAB 118. Other factors which influence the effective tax rate used for financial reporting purposes include changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits. See Note 7, "Income Taxes" for further discussion. Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income |
Sales And Other Tax Policy | Sales and Other Taxes In certain jurisdictions, both in the U.S. and internationally, various governments and taxing authorities require the Company to assess and collect sales and other taxes, such as value added taxes, on certain services that the Company renders and bills to its customers. The majority of the Company's revenues are not currently subject to these types of taxes. These taxes are not recorded as additional revenues or expenses in the Company's Consolidated Statements of Operations, but are recorded on the Consolidated Balance Sheets as pass-through amounts until remitted. |
Foreign Currency | Foreign Currency Foreign currency transactions for the years ended December 31, 2020 and 2019 resulted in net losses of $219,000 and $243,000, respectively. Foreign currency transactions for the year ended December 31, 2018 resulted in a net gain of $73,000. For operations outside the U.S. that prepare financial statements in currencies other than the U.S. dollar, results of operations and cash flows are translated into U.S. dollars at average exchange rates during the period, and assets and liabilities are translated at end-of-period exchange rates. The resulting translation adjustments, on a net basis, are included in "Other Comprehensive Income" in the Company's Consolidated Statements of Comprehensive Income, and the accumulated translation adjustment is reported as a component of "Accumulated other comprehensive loss" in the Company's Consolidated Balance Sheets. |
Advertising Costs | Advertising Costs Advertising costs are expensed in the period in which the costs are incurred. Advertising expenses were $990,000, $2,394,000, and $3,572,000, respectively, for the years ended December 31, 2020, 2019, and 2018. As several conventions were cancelled as a result of the COVID-19 pandemic, the Company’s advertising costs decreased in 2020. |
Adoption and Pending Adoption of New Accounting Standards | Adoption of New Accounting Standards Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" together with its subsequent related amendments in 2018 and 2019, collectively referred to as Topic 326. Topic 326 replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value, including trade receivables, with gains and losses recognized through income. The Company estimates its expected credit losses based on past experience, current conditions and reasonable and supportable forecasts affecting collectability of these assets. We evaluate the risks related to our trade receivables and contract assets by considering customer type, geography, and aging. Topic 326 is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted Topic 326 on January 1, 2020 using a modified retrospective approach. As a result of adopting Topic 326, the Company recognized a cumulative effect adjustment to decrease the opening balance of retained earnings by $607,000. The Company has included assumptions related to expected credit losses from the impact of the COVID-19 pandemic in its results of operations for the year ended December 31, 2020. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This update amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, by removing and modifying certain disclosure requirements and adding others. This update removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. This update requires the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, this update clarifies that transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities are required to be disclosed. These updates are effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no 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. |
Earnings per Share | The Company computes earnings per share of CRD-A and CRD-B using the two-class method, which allocates the undistributed earnings for each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on CRD-A than on CRD-B, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. During 2020, 2019 and 2018, the Board of Directors declared a higher dividend on CRD-A than on CRD-B. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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 12 years. Some of these lease agreements include options to extend the leases for up to 5 years, options to terminate the leases within 1 year, rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. |
Significant Accounting and Re_3
Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Allowance For Expected Credit Losses | A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2020, 2019, and 2018 is as follows: 2020 2019 2018 (In thousands) Allowance for expected credit losses, January 1 $ 9,348 $ 9,625 $ 12,588 Add/ (Deduct): Adoption of Topic 326 (464 ) — — Provision for bad debt expense 1,504 1,588 2,709 Write-offs, net of recoveries (908 ) (81 ) (3,695 ) Adjustments for business acquisitions and dispositions (111 ) — (1,612 ) Currency translation and other changes 95 (1,784 ) (365 ) Allowance for expected credit losses, December 31 $ 9,464 $ 9,348 $ 9,625 |
Property and Equipment | The estimated useful lives for property and equipment classifications are as follows: Classification Estimated Useful Lives Furniture and fixtures 3-10 years Data processing equipment 3-5 years Automobiles and other 3-4 years Buildings and improvements 7-40 years Property and equipment, including assets under finance leases, consisted of the following at December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Land $ 338 $ 331 Buildings and improvements 32,087 28,840 Furniture and fixtures 28,264 29,898 Data processing equipment 64,781 57,574 Automobiles 314 236 Total property and equipment 125,784 116,879 Less accumulated depreciation (89,382 ) (85,454 ) Net property and equipment $ 36,402 $ 31,425 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2020 and 2019. The Company considers all Crawford Claims Solutions revenues to be derived from one service line. (In thousands) Year Ended December 31, 2020 2019 U.S. $ 166,441 $ 136,524 U.K. 65,855 63,715 Canada 34,020 47,712 Australia 47,481 45,417 Europe 28,298 28,915 Rest of World 14,352 17,554 Total Crawford Claims Solutions Revenues before Reimbursements $ 356,447 $ 339,837 The following table presents Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2020 and 2019. Year Ended December 31, 2020 Year Ended December 31, 2019 (in thousands) Claims Management Services Medical Management Services Total Claims Management Services Medical Management Services Total U.S. $ 143,940 $ 149,506 $ 293,446 $ 144,985 $ 170,256 $ 315,241 U.K. 10,866 — 10,866 11,254 — 11,254 Canada 25,911 — 25,911 33,234 — 33,234 Europe and Rest of World 34,760 — 34,760 34,127 — 34,127 Total Crawford TPA Solutions Revenues before Reimbursements $ 215,477 $ 149,506 $ 364,983 $ 223,600 $ 170,256 $ 393,856 The following table presents Crawford Specialty Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2020 and 2019. Year Ended December 31, 2020 Year Ended December 31, 2019 (in thousands) Global Technical Services Contractor Connection Total Global Technical Services Contractor Connection Total U.S. $ 39,930 $ 71,005 $ 110,935 $ 40,526 $ 76,914 $ 117,440 U.K. 45,212 6,612 51,824 45,803 5,565 51,368 Canada 23,066 6,166 29,232 25,981 7,511 33,492 Australia 21,927 929 22,856 22,273 792 23,065 Europe 20,680 48 20,728 20,540 10 20,550 Rest of World 25,487 — 25,487 26,194 — 26,194 Total Crawford Specialty Solutions Revenues before Reimbursements $ 176,302 $ 84,760 $ 261,062 $ 181,317 $ 90,792 $ 272,109 |
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 year ended December 31, 2020: (In Thousands) Customer Contract Liabilities: Deferred Revenue Balance at January 1, 2020 $ 52,368 Annual additions 76,379 Revenue recognized from prior periods (34,943 ) Revenue recognized from current year additions (42,435 ) Balance as of December 31, 2020 $ 51,369 |
Business Acquisitions and Dis_2
Business Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Valuation Identified Assets Acquired and Liabilities Assumed | The preliminary valuation of the assets acquired and liabilities assumed for Crawford Carvallo is as follows: |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019: Crawford Claims Solutions Crawford TPA Solutions Crawford Specialty Solutions Total (In thousands) Balance at December 31, 2018: Goodwill $ 55,553 $ 168,730 $ 73,621 $ 297,904 Accumulated impairment losses (20,407 ) (159,424 ) (21,183 ) $ (201,014 ) Net goodwill 35,146 9,306 52,438 96,890 2019 Activity: Goodwill of acquired businesses — — 1,164 1,164 Impairment of goodwill (17,484 ) — — (17,484 ) Foreign currency effects 6 4 62 72 Balance at December 31, 2019: Goodwill 55,559 168,734 74,847 299,140 Accumulated impairment losses (37,891 ) (159,424 ) (21,183 ) (218,498 ) Net goodwill 17,668 9,310 53,664 80,642 2020 Activity: Goodwill of acquired businesses — 2,857 2,644 5,501 Impairment of goodwill (17,674 ) — — (17,674 ) Goodwill of disposed business — — (1,990 ) (1,990 ) Foreign currency effects 6 12 40 58 Balance at December 31, 2020: Goodwill 55,565 171,603 75,541 302,709 Accumulated impairment losses (55,565 ) (159,424 ) (21,183 ) (236,172 ) Net goodwill $ — $ 12,179 $ 54,358 $ 66,537 |
Schedule of Finite-Lived Intangible Assets | The following is a summary of finite-lived intangible assets acquired through business acquisitions as of December 31, 2020 and 2019: Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Amortization Period (In thousands, except years) December 31, 2020: Customer relationships $ 131,948 $ (101,319 ) $ 30,629 3.3 years Technology-based 18,183 (10,174 ) $ 8,009 6.5 years Trade name 3,123 (1,737 ) $ 1,386 6.0 years Other 5,794 (5,489 ) $ 305 10.1 years Total $ 159,048 $ (118,719 ) $ 40,329 6.7 years December 31, 2019: Customer relationships $ 127,362 $ (92,354 ) $ 35,008 4.0 years Technology-based 16,562 (9,108 ) 7,454 7.0 years Trade name 1,795 (1,636 ) 159 1.7 years Other 5,485 (3,869 ) 1,616 1.8 years Total $ 151,204 $ (106,967 ) $ 44,237 3.8 years |
Schedule of Finite-lived Intangible Assets, Future Amortization Expense | At December 31, 2020, annual estimated aggregate amortization expense for intangible assets subject to amortization for the next five years is as follows: Annual Amortization Expense Year Ending December 31, (In thousands) 2021 $ 9,678 2022 4,711 2023 4,614 2024 4,152 2025 4,050 |
Schedule of Indefinite-Lived Intangible Assets | The following is a summary of indefinite-lived intangible assets at December 31, 2020 and 2019: Gross Carrying Amount Accumulated Impairments Net Carrying Value (In thousands) December 31, 2020: Trade names $ 32,503 $ (1,656 ) $ 30,847 December 31, 2019: Trade names $ 32,502 $ (1,656 ) $ 30,846 |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt, Including Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt Instruments | Long-term debt consisted of the following at December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Credit Facility $ 112,855 $ 176,877 Finance lease and other obligations 740 77 Total long-term debt and finance leases 113,595 176,954 Less: portion of Credit Facility classified as short-term (1,570 ) (28,531 ) Less: current installments of finance leases and other obligations (267 ) (15 ) Total long-term debt and finance leases, less current installments $ 111,758 $ 148,408 |
Schedule of Maturities of Long-Term Debt | Principal repayments of long-term debt, including current portions, finance leases and other obligations, as of December 31, 2020 are expected to be as follows, assuming no prepayments or extensions beyond the stated maturity: Long-term Debt Finance Lease and Other Obligations Total Year Ending December 31, (In thousands) 2021 $ 1,570 $ 267 $ 1,837 2022 111,285 239 111,524 2023 — 164 164 2024 — 47 47 2025 — 23 23 Total $ 112,855 $ 740 $ 113,595 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease-Related Assets and Liabilities | The following table presents the lease-related assets and liabilities recorded on the Company's Consolidated Balance Sheets related to its operating leases: (in thousands) Classification on Balance Sheet December 31, 2020 December 31, 2019 Assets: Operating lease Operating lease right-of-use assets, net $ 109,315 $ 102,354 Liabilities: Current operating lease liabilities Current operating lease liabilities 32,745 30,765 Noncurrent operating lease liabilities Noncurrent operating lease liabilities 93,228 87,064 Total operating lease liabilities $ 125,973 $ 117,829 Weighted-Average Remaining Lease Term 6.30 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 of January 1, 2019. |
Lease Cost | The components of operating lease costs within the Company's Consolidated Statements of Operations consisted of the following: Year Ended (in thousands) December 31, 2020 December 31, 2019 Operating lease cost $ 38,242 $ 37,824 Variable lease cost 8,037 7,948 Sublease income 4,090 4,163 Supplemental cash flow information related to operating leases were as follows: Year Ended (in thousands) December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 37,091 $ 38,906 Right-of-use assets obtained in exchange for lease obligations (1) $ 40,535 $ 30,056 (1) The year ended December 31, 2019 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) December 31, 2020 2021 $ 37,976 2022 25,214 2023 17,686 2024 14,496 2025 11,770 Thereafter 41,624 Total undiscounted lease payments 148,766 Less imputed interest (22,793 ) Present value of future lease payments $ 125,973 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (loss) Before Income Taxes | Income before income taxes consisted of the following: Year Ended December 31, 2020 2019 2018 (In thousands) U.S. $ (1,029 ) $ (1,472 ) $ 4,634 Foreign 40,117 25,109 39,497 Income before income taxes $ 39,088 $ 23,637 $ 44,131 |
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following: Year Ended December 31, 2020 2019 2018 (In thousands) Current: U.S. federal and state $ 12,561 $ 1,546 $ 1,065 Foreign 8,457 9,525 9,530 Deferred: U.S. federal and state (8,870 ) 1,643 4,051 Foreign (135 ) 1,397 3,896 Provision for income taxes $ 12,013 $ 14,111 $ 18,542 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes is reconciled to the federal statutory income tax rate of 21% in 2020, 2019, and 2018, as follows: Year Ended December 31, 2020 2019 2018 (In thousands) Federal income taxes at statutory rate $ 8,208 $ 4,964 $ 9,267 State income taxes, net of federal benefit 325 505 2,685 Goodwill impairment 2,322 1,883 — Foreign taxes 3,328 2,276 2,150 Change in valuation allowance (374 ) 3,919 9,540 Research and development credits (1,001 ) (626 ) (273 ) Foreign tax credits (1,150 ) (283 ) (429 ) Nondeductible meals and entertainment 377 724 782 US tax reform - revaluation of deferred taxes — — 102 US tax reform - transition tax, net of credits — — (3,496 ) Change in permanent reinvestment assertion 776 — (1,792 ) Disposals and liquidations of businesses (935 ) — — Global intangible low-tax income, net of credits (54 ) 892 454 Foreign-derived intangible income deduction (115 ) (315 ) (323 ) Tax rate changes (359 ) 486 (392 ) Other 665 (314 ) 267 Provision for income taxes $ 12,013 $ 14,111 $ 18,542 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes consisted of the following at December 31, 2020 and 2019: 2020 2019 (In thousands) Accounts receivable allowance $ 1,019 $ 1,163 Accrued compensation 14,655 9,553 Accrued pension liabilities 4,950 9,116 Self-insured risks 5,746 4,301 Deferred revenues 5,376 4,249 Interest 2,419 5,399 Tax credit carryforwards 7,090 11,634 Loss carryforwards 22,805 25,523 Lease liability 31,435 29,785 Other 2,158 3,436 Gross deferred income tax assets 97,653 104,159 Unbilled revenues 5,311 6,522 Repatriated earnings 776 — Depreciation and amortization 23,474 28,025 Lease right-of-use asset 27,513 25,865 Gross deferred income tax liabilities 57,074 60,412 Net deferred income tax assets before valuation allowance 40,579 43,747 Valuation allowance (16,579 ) (28,128 ) Net deferred income tax assets $ 24,000 $ 15,619 Amounts recognized in the Consolidated Balance Sheets consist of: Long-term deferred income tax assets included in "Deferred income tax assets" 25,595 17,971 Long-term deferred income tax liabilities included in "Other noncurrent liabilities" (1,595 ) (2,352 ) Net deferred income tax assets $ 24,000 $ 15,619 |
Summary of Valuation Allowance | Changes in the Company's deferred tax valuation allowance are recorded as adjustments to the provision for income taxes. An analysis of the Company's deferred tax asset valuation allowances is as follows for the years ended December 31, 2020, 2019, and 2018. 2020 2019 2018 (In thousands) Balance, beginning of year $ 28,128 $ 25,864 $ 18,829 Other changes (11,549 ) 2,264 7,035 Balance, end of year $ 16,579 $ 28,128 $ 25,864 |
Summary of Unrecognized Income Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows: (In thousands) Balance at December 31, 2017 $ 11,297 Additions for tax provisions related to the current year 54 Reductions for tax positions related to prior years (3,941 ) Currency translation adjustment (9 ) Balance at December 31, 2018 $ 7,401 Additions for tax provisions related to the current year 515 Additions for tax positions related to prior years 646 Reductions for tax positions related to prior years (113 ) Reductions for settlements (2,642 ) Lapses of applicable statutes of limitation (520 ) Balance at December 31, 2019 $ 5,287 Additions for tax provisions related to the current year 92 Additions for tax positions related to prior years 2 Reductions for tax positions related to prior years (505 ) Reductions for settlements (516 ) Lapses of applicable statutes of limitation (582 ) Balance at December 31, 2020 $ 3,778 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The majority of the Company's defined benefit pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Projected benefit obligations $ 494,273 $ 486,305 Fair value of plans' assets 437,234 417,074 |
Schedule Of Fair Value Of Plan Assets In Excess Of Benefit Obligations Table Text Block | Certain of the Company's U.K. Plans have fair values of plan assets that exceed the projected benefit obligations. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Projected benefit obligations $ 267,200 $ 261,953 Fair value of plans' assets 303,957 296,943 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | A reconciliation of the beginning and ending balances of the projected benefit obligations and the fair value of plans' assets for the Company's defined benefit pension plans as of the plans' most recent measurement dates is as follows: Year Ended December 31, 2020 2019 (In thousands) Projected Benefit Obligations: Beginning of measurement period $ 748,258 $ 694,482 Service cost 1,295 1,278 Interest cost 16,643 22,408 Employee contributions 35 45 Actuarial loss (gain) 49,938 77,549 Plan settlements (1,450 ) — Benefits paid (55,150 ) (50,415 ) Foreign currency effects 1,904 2,911 End of measurement period 761,473 748,258 Fair Value of Plans' Assets: Beginning of measurement period 714,017 649,688 Actual return on plans' assets 71,446 109,670 Employer contributions 10,446 1,112 Employee contributions 35 522 Plan settlements (1,450 ) — Benefits paid (55,150 ) (50,415 ) Foreign currency effects 1,847 3,440 End of measurement period 741,191 714,017 Unfunded Status $ (20,282 ) $ (34,241 ) |
Schedule of Net Funded Status | The underfunded status of the Company's defined benefit pension plans recognized in the Consolidated Balance Sheets at December 31 consisted of: December 31, 2020 2019 (In thousands) U.S. Qualified Plan $ 51,645 $ 63,538 Other international plans 2,241 2,371 Subtotal, included in "Accrued pension liabilities" 53,886 65,909 U.K. prepaid pension asset included in "Other noncurrent assets" (36,757 ) (34,990 ) Unfunded status of nonqualified defined benefit deferred pension plans included in "Other accrued liabilities" 316 310 Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities" 2,837 3,012 Total unfunded status $ 20,282 $ 34,241 Accumulated other comprehensive loss, before income taxes $ (264,244 ) $ (268,275 ) |
Schedule of Net Unrecognized Actuarial Gain (loss) | The following tables set forth the 2020 and 2019 changes in accumulated other comprehensive loss for the Company's defined benefit retirement plans and post-retirement medical benefits plan on a combined basis: Defined Benefit Pension Plans Post-Retirement Medical Benefits Plan (In thousands) Net unrecognized actuarial (loss) gain, December 31, 2018 $ (280,948 ) $ 304 Amortization of net loss (gain) 10,836 (152 ) Net gain arising during the year 2,311 — Currency translation (626 ) — Net unrecognized actuarial (loss) gain, December 31, 2019 (268,427 ) 152 Amortization of net loss (gain) 10,804 (152 ) Net loss arising during the year (6,510 ) — Currency translation (111 ) — Net unrecognized actuarial loss, December 31, 2020 $ (264,244 ) $ — |
Schedule of Expected Benefit Payments | Net periodic benefit cost related to all of the Company's defined benefit pension plans recognized in the Company's Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018 included the following components: Year Ended December 31, 2020 2019 2018 (In thousands) Service cost $ 1,295 $ 1,278 $ 1,395 Interest cost 16,643 22,376 20,933 Expected return on assets (28,016 ) (29,654 ) (34,267 ) Amortization of actuarial loss 10,804 10,837 10,744 Net periodic benefit cost (credit) $ 726 $ 4,837 $ (1,195 ) Over the next ten years, the following benefit payments are expected to be required to be made from the Company's U.S. and U.K. defined benefit pension plans: Year Ending December 31, Expected Benefit Payments (In thousands) 2021 $ 42,436 2022 42,590 2023 42,611 2024 42,440 2025 42,329 2026-2030 206,549 |
Schedule of Assumptions Used | Certain assumptions used in computing the benefit obligations and net periodic benefit cost for the U.S. and U.K. defined benefit pension plans were as follows: U.S. Qualified Plan: 2020 2019 Discount rate used to compute benefit obligations 2.38 % 3.15 % Discount rate used to compute periodic benefit cost 3.15 % 4.31 % Expected long-term rates of return on plans' assets 4.70 % 6.10 % U.K. Defined Benefit Plans: 2020 2019 Discount rate used to compute benefit obligations 1.60 % 1.93 % Discount rate used to compute periodic benefit cost 1.93 % 2.77 % Expected long-term rates of return on plans' assets 2.54 % 3.28 % |
Schedule of Allocation of Plan Assets | Asset allocations at the respective measurement dates, by asset category, for the Company's U.S. and U.K. qualified defined benefit pension plans were as follows: U.S. Qualified Plan U.K. Plans December 31, 2020 2019 2020 2019 Equity securities 23.4 % 21.4 % 17.1 % 17.9 % Fixed income securities 67.2 % 69.3 % 67.4 % 68.3 % Alternative strategies 6.2 % 5.9 % 14.7 % 13.0 % Cash, cash equivalents and short-term investment funds 3.1 % 3.4 % 0.9 % 0.8 % Total asset allocation 100.0 % 100.0 % 100.0 % 100.0 % |
Common Stock and Earnings per_2
Common Stock and Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 2020 2019 2018 CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B (In thousands, except earnings per share) Earnings per share - basic: Numerator: Allocation of undistributed earnings (loss) $ 10,743 $ 7,908 $ (392 ) $ (294 ) $ 6,941 $ 5,509 Dividends paid 5,815 3,830 8,592 4,579 8,639 4,889 Net income available to common shareholders, basic 16,558 11,738 8,200 4,285 15,580 10,398 Denominator: Weighted-average common shares outstanding, basic 30,605 22,527 30,637 22,975 30,805 24,449 Earnings per share - basic $ 0.54 $ 0.52 $ 0.27 $ 0.19 $ 0.51 $ 0.43 |
Schedule of Computations of Diluted Net Income Attributable to Shareholders of Crawford & Company per Common Share | The computations of diluted net income attributable to shareholders of Crawford & Company per common share were as follows: Year Ended December 31, 2020 2019 2018 CRD-A CRD-B CRD-A CRD-B CRD-A CRD-B (In thousands, except earnings per share) Earnings per share - diluted: Numerator: Allocation of undistributed earnings (loss) $ 10,781 $ 7,870 $ (394 ) $ (292 ) $ 7,003 $ 5,447 Dividends paid 5,815 3,830 8,592 4,579 8,639 4,889 Net income available to common shareholders, diluted 16,596 11,700 8,198 4,287 15,642 10,336 Denominator: Weighted-average common shares outstanding, basic 30,605 22,527 30,637 22,975 30,805 24,449 Weighted-average effect of dilutive securities (1) 252 — 453 — 629 — Weighted-average number of shares outstanding, diluted 30,857 22,527 31,090 22,975 31,434 24,449 Earnings per share - diluted $ 0.54 $ 0.52 $ 0.26 $ 0.19 $ 0.50 $ 0.42 |
Schedule of Antidilutive Shares Excluded from Computation of Diluted Earnings per Share | Listed below are the shares excluded from the denominator in the above computation of diluted earnings per share for CRD-A because their inclusion would have been anti-dilutive: Year Ended December 31, 2020 2019 2018 (In thousands) Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period 1,996 622 1,175 Performance stock grants excluded because performance conditions had not been met (1) 578 717 752 (1) Compensation cost is recognized for these performance stock grants based on expected achievement rates; however no consideration is given for these performance stock grants when calculating earnings per share until the performance measurements are actually achieved. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 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 Consolidated Balance Sheets were as follows: Foreign currency translation adjustments Retirement liabilities AOCL attributable to shareholders of Crawford & Company (In thousands) Balance at December 31, 2018 $ (36,352 ) $ (180,095 ) $ (216,447 ) Other comprehensive income before reclassifications 502 — 502 Unrealized net gains arising during the year — 1,036 1,036 Amounts reclassified from accumulated other comprehensive income to net income (1) — 8,002 8,002 Net current period other comprehensive income 502 9,038 9,540 Balance at December 31, 2019 (35,850 ) (171,057 ) (206,907 ) Other comprehensive income before reclassifications 4,595 — 4,595 Unrealized net losses arising during the year — (4,966 ) (4,966 ) Amounts reclassified from accumulated other comprehensive income to net income (1) — 7,959 7,959 Net current period other comprehensive income 4,595 2,993 7,588 Acquisition/Disposition of noncontrolling interest 463 — 463 Balance at December 31, 2020 $ (30,792 ) $ (168,064 ) $ (198,856 ) (1) Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's Consolidated Statements of Operations. See Note 8, "Retirement Plans" for additional details. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share Based Compensation [Abstract] | |
Summary of Option Activity | A summary of option activity as of December 31, 2020, 2019, and 2018, and changes during each year, is presented below: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In thousands) Outstanding at December 31, 2017 887 $ 8.53 8.4 years $ 527 Granted 582 8.60 Exercised (21 ) 4.88 Forfeited or expired (154 ) 8.74 Outstanding at December 31, 2018 1,294 8.60 8.1 years 667 Granted 591 9.70 Exercised (111 ) 5.91 Forfeited or expired (80 ) 9.24 Outstanding at December 31, 2019 1,694 9.13 7.9 years 3,969 Granted 660 8.73 Exercised — — Forfeited or expired (458 ) 9.05 Outstanding at December 31, 2020 1,896 $ 9.01 7.4 years $ 114 Vested and Exercisable at December 31, 2020 1,101 $ 9.06 6.6 years $ 26 |
Schedule of Weighted-Average Assumptions to Estimate Fair Value of Each Option | The fair value of each option was estimated on the date of grant using the Black-Scholes-Merton option-pricing formula, with the following weighted average assumptions: 2020 2019 Expected dividend yield 3.02 % 3.80 % Expected volatility 35.48 % 36.73 % Risk-free interest rate 1.38 % 2.56 % Expected term of options 7 years 7 years |
Nonvested Performance Shares | A summary of the status of the Company's nonvested performance shares as of December 31, 2020, 2019, and 2018, and changes during each year, is presented below: Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2017 884,342 $ 7.05 Granted 751,128 7.43 Vested (445,311 ) 5.98 Forfeited or unearned (201,322 ) 7.54 Nonvested at December 31, 2018 988,837 8.07 Granted 626,776 8.87 Vested (214,824 ) 8.49 Forfeited or unearned (427,010 ) 8.34 Nonvested at December 31, 2019 973,779 8.38 Granted 1,616,902 8.01 Vested (224,681 ) 8.33 Forfeited or unearned (1,466,729 ) 8.10 Nonvested at December 31, 2020 899,271 $ 8.19 |
Restricted Shares | A summary of the status of the Company's restricted shares of CRD-A as of December 31, 2020, 2019, and 2018 and changes during each year, is presented below: Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2017 112,219 $ 7.89 Granted 112,502 7.81 Vested (131,260 ) 8.27 Forfeited or unearned (21,352 ) 8.43 Nonvested at December 31, 2018 72,109 7.76 Granted 149,496 9.38 Vested (108,610 ) 9.04 Forfeited or unearned (31,387 ) 9.55 Nonvested at December 31, 2019 81,608 8.35 Granted 117,279 8.34 Vested (119,327 ) 8.52 Forfeited or unearned — — Nonvested at December 31, 2020 79,560 $ 8.08 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: December 31, 2020 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) Assets: Money market funds (1) $ 10,026 $ — $ — $ 10,026 Liabilities: Contingent earnout liability (2) — — 6,151 6,151 December 31, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (1) $ 10,028 $ — $ — $ 10,028 Liabilities: Contingent earnout liability (2) — — 454 454 (1) The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included on the Company's Consolidated Balance Sheets in "Cash and cash equivalents." (2) |
Pension Plan Assets within Fair Value Hierarchy | The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.S Qualified Plan at December 31, 2020 and 2019: December 31, 2020 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Asset Category: Cash and cash equivalents $ 2,861 $ — $ — $ 2,861 $ 8,082 $ — $ — $ 8,082 Short-term investment funds — 9,827 — 9,827 — 5,496 — 5,496 Common collective equity funds: — U.S. — 66,145 — 66,145 — 60,039 — 60,039 International — 28,529 — 28,529 — 26,142 — 26,142 Common collective fixed income funds and fixed income securities: — U.S. 36,007 207,219 — 243,226 51,247 224,747 — 275,994 International — 28,501 — 28,501 — 3,745 — 3,745 Alternative strategy funds — 9,248 15,938 25,186 — 8,880 14,766 23,646 Total plan assets $ 38,868 $ 349,469 $ 15,938 404,275 $ 59,329 $ 329,049 $ 14,766 403,144 Other plan liabilities, net (a) (7,336 ) (26,220 ) Net plan assets $ 396,939 $ 376,924 (a) net amounts payable for unsettled security transactions. The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.K. plans at December 31, 2020 and 2019: December 31, 2020 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Asset Category: Cash and cash equivalents $ 2,613 $ — $ — $ 2,613 $ 2,338 $ — $ — $ 2,338 Common collective equity funds: U.S. — 44,461 — 44,461 — 43,613 — 43,613 International — 7,510 — 7,510 — 9,418 — 9,418 Common collective fixed income funds and fixed income securities: Short-term investment funds: — 162,276 — 162,276 — 167,741 — 167,741 Government securities — 42,564 — 42,564 — 34,926 — 34,926 Alternative strategy funds — 34,958 — 34,958 — 29,172 — 29,172 Real estate funds — — 9,572 9,572 — — 9,735 9,735 Total plan assets $ 2,613 $ 291,769 $ 9,572 $ 303,954 $ 2,338 $ 284,870 $ 9,735 $ 296,943 |
Reconciliation Of Level 3 Assets | The following table provides a reconciliation of the beginning and ending balance of Level 3 assets within the Company's U.S. and U.K. pension plans during the years ended December 31, 2020 and 2019: U.S U.K. (in thousands) Balance at December 31, 2018 $ 16,488 $ 9,945 Actual return on plan assets: Related to assets still held at the reporting date (1,722 ) (210 ) Balance at December 31, 2019 14,766 9,735 Actual return on plan assets: Related to assets still held at the reporting date 1,172 (163 ) Balance at December 31, 2020 $ 15,938 $ 9,572 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Financial information as of and for the years ended December 31, 2020, 2019, and 2018 related to the Company's reportable segments is presented below. Crawford Claims Solutions Crawford TPA Solutions Crawford Specialty Solutions Total 2020 Revenues before reimbursements $ 356,447 $ 364,983 $ 261,062 $ 982,492 Segment operating earnings 14,375 21,476 52,553 88,404 Depreciation and amortization (1) 2,405 9,345 1,291 13,041 Assets (2) 120,777 88,002 155,522 364,301 2019 Revenues before reimbursements $ 339,837 $ 393,856 $ 272,109 $ 1,005,802 Segment operating earnings 7,630 27,173 49,321 84,124 Depreciation and amortization (1) 2,461 10,152 1,811 14,424 Assets (2) 136,451 85,810 165,575 387,836 2018 Revenues before reimbursements $ 361,053 $ 405,335 $ 304,583 $ 1,070,971 Segment operating earnings 11,308 36,909 49,564 97,781 Depreciation and amortization (1) 3,485 9,844 3,517 16,846 Assets (2) 163,899 92,007 165,415 421,321 (1) Excludes amortization expense of finite-lived customer relationships and trade name intangible assets. (2) Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. Revenues by geographic region and major service line for the Crawford Claims Solutions, Crawford TPA Solutions and Crawford Specialty Solutions segments are shown in Note 2, "Revenue Recognition." |
Reconciliation Of Capital Expenditures From Segments To Consolidated Table Text Block | Capital expenditures for the years ended December 31, 2020, 2019, and 2018 are shown in the following table: Year Ended December 31, 2020 2019 2018 (In thousands) Crawford Claims Solutions $ 5,443 $ 1,396 $ 3,811 Crawford TPA Solutions 6,527 3,259 5,947 Crawford Specialty Solutions 5,686 458 2,148 Corporate 19,724 16,011 18,114 Total capital expenditures $ 37,380 $ 21,124 $ 30,020 |
Reconciliation of Revenues from Segments to Consolidated | The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2020, 2019, and 2018 was as follows: Year Ended December 31, 2020 2019 2018 (In thousands) Segments' revenues before reimbursements $ 982,492 $ 1,005,802 $ 1,070,971 Reimbursements 33,703 41,825 52,008 Total consolidated revenues $ 1,016,195 $ 1,047,627 $ 1,122,979 |
Reconciliation of Segment Operating Earnings from Segments to Consolidated | The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2020, 2019, and 2018 were as follows: Year Ended December 31, 2020 2019 2018 (In thousands) Operating earnings of all reportable segments $ 88,404 $ 84,124 $ 97,781 Unallocated corporate and shared costs and credits (16,574 ) (6,515 ) (9,321 ) Net corporate interest expense (7,923 ) (10,774 ) (10,109 ) Stock option expense (1,122 ) (1,885 ) (1,742 ) Amortization of acquisition-related intangible assets (11,653 ) (11,277 ) (11,152 ) Goodwill and intangible asset impairments (17,674 ) (17,484 ) (1,056 ) Arbitration and claim settlements — (12,552 ) — Restructuring and other costs, net (8,133 ) — — Gain (loss) on disposition of businesses, net 13,763 — (20,270 ) Income before income taxes $ 39,088 $ 23,637 $ 44,131 |
Reconciliation of Assets from Segment to Consolidated | The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at December 31, 2020 and 2019 are presented in the following table: December 31, 2020 2019 (In thousands) Assets of reportable segments $ 364,301 $ 387,836 Corporate assets: Cash and cash equivalents 44,656 51,802 Income taxes receivable 1,269 7,820 Prepaid expenses and other current assets 29,490 23,476 Net property and equipment 36,402 31,425 Operating lease right-of-use asset, net 109,315 102,354 Capitalized software costs, net 71,021 66,445 Deferred income tax assets 25,595 17,971 Other noncurrent assets 70,935 70,884 Total corporate assets 388,683 372,177 Total assets $ 752,984 $ 760,013 |
Schedule of Disclosure on Geographic Areas, Revenue and Long-Lived Assets in Individual Foreign Countries by Country | Revenues and long-lived assets for the U.S., U.K. and Canada are set out below as these countries are material for geographical area disclosure. For the purposes of these geographic area disclosures, long-lived assets consists of the net property and equipment, capitalized software costs, net and operating lease right-of-use, net line items on the Company's Consolidated Balance Sheets and excludes intangible assets and goodwill. U.S. U.K. Canada All Other International Total Company (In thousands) 2020 Revenues before reimbursements $ 570,822 $ 128,545 $ 89,163 $ 193,962 $ 982,492 Long-lived assets 151,906 20,290 14,404 30,138 216,738 2019 Revenues before reimbursements 569,205 126,337 114,438 195,822 1,005,802 Long-lived assets 140,560 20,749 17,999 20,916 200,224 2018 Revenues before reimbursements 615,687 131,651 121,076 202,557 1,070,971 Long-lived assets 88,157 7,631 7,553 3,172 106,513 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Related Costs | The following table shows the costs incurred by type of restructuring activity: Year ended December 31 2020 2019 2018 (In thousands) Severance benefits $ 9,350 $ — $ — Asset impairments and lease termination costs 2,538 — — Gain on fair value remeasurement of cost and equity method investments (1,099 ) — — Liquidation dividend from a cost method investment (1,247 ) — — Gain on sale of internet protocol addresses (1,409 ) — — Total restructuring and other costs, net $ 8,133 $ — $ — |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring Reserve Liabilities by Type | As of December 31, 2020, the following liabilities remained on the Company's Consolidated Balance Sheets related to restructuring charges recorded in 2020 and 2017. The rollforwards of these costs to December 31, 2020 were as follows: Restructuring and Other Costs Deferred rent Accrued compensation and related costs Other accrued liabilities Total (In thousands) Balance at December 31, 2017 $ 2,846 $ 4,782 $ 1,785 $ 9,413 Additions — — — — Adjustments to accruals (1,544 ) — (643 ) (2,187 ) Cash payments — (4,305 ) (656 ) (4,961 ) Balance at December 31, 2018 1,302 477 486 2,265 Additions — — — — Adjustments to accruals (1,302 ) — 1 (1,301 ) Cash payments — (135 ) (15 ) (150 ) Balance at December 31, 2019 — 342 472 814 Additions — 9,112 648 9,760 Adjustments to accruals — (453 ) (472 ) (925 ) Cash payments — (5,632 ) (58 ) (5,690 ) Balance at December 31, 2020 $ — $ 3,369 $ 590 $ 3,959 |
Significant Accounting and Re_4
Significant Accounting and Reporting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)Contractor | Dec. 31, 2020USD ($)classofstock | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |||
Variable Interest Entity [Line Items] | ||||||||||
Number of countries in which entity operates (more than) | 70 | 70 | 70 | 70 | ||||||
Number of classes of common stock | 2 | 2 | ||||||||
Deferred compensation plan liabilities | $ 8,428,000 | $ 7,961,000 | $ 7,961,000 | $ 7,961,000 | $ 7,961,000 | $ 8,428,000 | ||||
Assets held in the related rabbi trust | 16,527,000 | 16,323,000 | 16,323,000 | $ 16,323,000 | 16,323,000 | 16,527,000 | ||||
Number of residential and commercial contractors | Contractor | 6,000 | |||||||||
Goodwill and intangible asset impairments | $ 17,674,000 | [1] | 17,484,000 | 17,674,000 | [1] | 17,484,000 | $ 1,056,000 | |||
Goodwill | 80,642,000 | 66,537,000 | 66,537,000 | $ 66,537,000 | 66,537,000 | 80,642,000 | 96,890,000 | |||
Depreciation | 11,750,000 | 11,363,000 | 12,862,000 | |||||||
Self insurance reserve | 26,838,000 | 25,004,000 | 25,004,000 | 25,004,000 | 25,004,000 | 26,838,000 | ||||
Self-insured risks | 11,311,000 | 11,390,000 | $ 11,390,000 | $ 11,390,000 | $ 11,390,000 | 11,311,000 | ||||
Change in tax rate, income tax expense | 3,583,000 | |||||||||
Valuation allowance, foreign | 6,977,000 | |||||||||
US tax reform - revaluation of deferred taxes | 102,000 | |||||||||
Release of transition tax of uncertain tax positions and adjustments | 3,496,000 | |||||||||
Foreign currency transaction gain (loss) | (219,000) | (243,000) | 73,000 | |||||||
Advertising expense | 990,000 | 2,394,000 | 3,572,000 | |||||||
Capitalized software | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Amortization of intangible assets | $ 16,709,000 | 17,873,000 | 20,066,000 | |||||||
Measurement Input, Discount Rate | Minimum | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Measurement input | 0.150 | 0.150 | 0.150 | 0.150 | ||||||
Measurement Input, Discount Rate | Maximum | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Measurement input | 0.175 | 0.175 | 0.175 | 0.175 | ||||||
Terminal growth rate | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Measurement input | 0.020 | 0.020 | 0.020 | 0.020 | ||||||
Crawford Claims Solutions | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Goodwill and intangible asset impairments | 17,700,000 | $ 17,674,000 | 17,484,000 | 0 | ||||||
Goodwill | $ 0 | $ 17,668,000 | $ 17,668,000 | $ 35,146,000 | ||||||
Outside the US | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Time deposits, at carrying value | 1,473,000 | $ 1,473,000 | $ 1,473,000 | $ 1,473,000 | ||||||
Canada Emergency Wage Subsidy Program of 2020 | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Recognition of reduction in compensation expense | $ 13,800,000 | |||||||||
Lloyd Warwick International | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Variable interest entity, ownership percentage | 51.00% | |||||||||
Class A Non-Voting | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Approval rate to waive equal consideration rights | 75.00% | |||||||||
[1] | The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments. |
Significant Accounting and Re_5
Significant Accounting and Reporting Policies - Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Allowance for expected credit losses, January 1 | $ 9,348 | $ 9,625 | $ 12,588 |
Add/ (Deduct): | |||
Adoption of Topic 326 | (464) | ||
Provision for bad debt expense | 1,504 | 1,588 | 2,709 |
Write-offs, net of recoveries | (908) | (81) | (3,695) |
Adjustments for business acquisitions and dispositions | (111) | (1,612) | |
Currency translation and other changes | 95 | (1,784) | (365) |
Allowance for expected credit losses, December 31 | $ 9,464 | $ 9,348 | $ 9,625 |
Significant Accounting and Re_6
Significant Accounting and Reporting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 125,784 | $ 116,879 |
Less accumulated depreciation | (89,382) | (85,454) |
Net property and equipment | 36,402 | 31,425 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 28,264 | 29,898 |
Furniture and Fixtures | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
Furniture and Fixtures | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 10 years | |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 64,781 | 57,574 |
Computer Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
Computer Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Automobiles | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 314 | 236 |
Automobiles | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
Automobiles | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 4 years | |
Building and Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 32,087 | 28,840 |
Building and Building Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 7 years | |
Building and Building Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 40 years | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 338 | $ 331 |
Significant Accounting and Re_7
Significant Accounting and Reporting Policies - New Accounting Standards (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative effect adjustment | $ 186,939,000 | $ 159,317,000 |
Adoption of Topic 326 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |
Retained Earnings | Adoption of Topic 326 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative effect adjustment | $ 607,000 | |
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 12 Months Ended |
Dec. 31, 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 | $ 88,917,000 |
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 | 99.00% |
Claims Management Services | Minimum | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 1 year |
Claims Management Services | Maximum | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from contracts with customers, performance obligation term | 2 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 265,605 | $ 261,669 | $ 242,875 | $ 246,046 | $ 257,562 | $ 265,842 | $ 267,846 | $ 256,377 | $ 1,016,195 | $ 1,047,627 | $ 1,122,979 |
Crawford Claims Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 356,447 | 339,837 | |||||||||
Crawford Claims Solutions | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 166,441 | 136,524 | |||||||||
Crawford Claims Solutions | U.K. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 65,855 | 63,715 | |||||||||
Crawford Claims Solutions | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 34,020 | 47,712 | |||||||||
Crawford Claims Solutions | Australia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 47,481 | 45,417 | |||||||||
Crawford Claims Solutions | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 28,298 | 28,915 | |||||||||
Crawford Claims Solutions | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 14,352 | 17,554 | |||||||||
Crawford TPA Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 364,983 | 393,856 | |||||||||
Crawford TPA Solutions | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 293,446 | 315,241 | |||||||||
Crawford TPA Solutions | U.K. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 10,866 | 11,254 | |||||||||
Crawford TPA Solutions | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 25,911 | 33,234 | |||||||||
Crawford TPA Solutions | Europe and Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 34,760 | 34,127 | |||||||||
Crawford TPA Solutions | Claims Management Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 215,477 | 223,600 | |||||||||
Crawford TPA Solutions | Claims Management Services | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 143,940 | 144,985 | |||||||||
Crawford TPA Solutions | Claims Management Services | U.K. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 10,866 | 11,254 | |||||||||
Crawford TPA Solutions | Claims Management Services | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 25,911 | 33,234 | |||||||||
Crawford TPA Solutions | Claims Management Services | Europe and Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 34,760 | 34,127 | |||||||||
Crawford TPA Solutions | Medical Management Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 149,506 | 170,256 | |||||||||
Crawford TPA Solutions | Medical Management Services | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 149,506 | 170,256 | |||||||||
Crawford Specialty Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 261,062 | 272,109 | |||||||||
Crawford Specialty Solutions | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 110,935 | 117,440 | |||||||||
Crawford Specialty Solutions | U.K. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 51,824 | 51,368 | |||||||||
Crawford Specialty Solutions | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 29,232 | 33,492 | |||||||||
Crawford Specialty Solutions | Australia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 22,856 | 23,065 | |||||||||
Crawford Specialty Solutions | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 20,728 | 20,550 | |||||||||
Crawford Specialty Solutions | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 25,487 | 26,194 | |||||||||
Crawford Specialty Solutions | Global Technical Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 176,302 | 181,317 | |||||||||
Crawford Specialty Solutions | Global Technical Services | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 39,930 | 40,526 | |||||||||
Crawford Specialty Solutions | Global Technical Services | U.K. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 45,212 | 45,803 | |||||||||
Crawford Specialty Solutions | Global Technical Services | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 23,066 | 25,981 | |||||||||
Crawford Specialty Solutions | Global Technical Services | Australia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 21,927 | 22,273 | |||||||||
Crawford Specialty Solutions | Global Technical Services | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 20,680 | 20,540 | |||||||||
Crawford Specialty Solutions | Global Technical Services | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 25,487 | 26,194 | |||||||||
Crawford Specialty Solutions | Contractor Connection | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 84,760 | 90,792 | |||||||||
Crawford Specialty Solutions | Contractor Connection | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 71,005 | 76,914 | |||||||||
Crawford Specialty Solutions | Contractor Connection | U.K. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,612 | 5,565 | |||||||||
Crawford Specialty Solutions | Contractor Connection | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,166 | 7,511 | |||||||||
Crawford Specialty Solutions | Contractor Connection | Australia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 929 | 792 | |||||||||
Crawford Specialty Solutions | Contractor Connection | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 48 | $ 10 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Customer Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Customer Contract Liabilities: | |
Beginning balance | $ 52,368 |
Annual additions | 76,379 |
Revenue recognized from prior periods | (34,943) |
Revenue recognized from current year additions | (42,435) |
Ending balance | $ 51,369 |
Business Acquisitions and Dis_3
Business Acquisitions and Dispositions - Additional Information (Details) | Oct. 01, 2020USD ($) | Jul. 21, 2020USD ($) | Jun. 12, 2020USD ($) | Jun. 01, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)segment |
Business Acquisition [Line Items] | |||||||
Loss on disposal of entity | $ 13,763,000 | $ (20,270,000) | |||||
Weighted-average amortization period of intangible assets | 6 years 8 months 12 days | 3 years 9 months 18 days | |||||
Goodwill | $ 66,537,000 | $ 80,642,000 | 96,890,000 | ||||
Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Weighted-average amortization period of intangible assets | 3 years 3 months 18 days | 4 years | |||||
Crawford Carvallo | |||||||
Business Acquisition [Line Items] | |||||||
Initial lump-sum payment of purchase price | $ 11,600,000,000 | ||||||
Net tangible assets acquired | 15,120,000,000 | ||||||
Net tangible assets acquired including cash | 1,599,000,000 | ||||||
Intangible assets acquired | $ 4,400,000 | ||||||
Weighted-average amortization period of intangible assets | 10 years | ||||||
Revenues | $ 2,214,000 | ||||||
Goodwill | 5,501,000 | ||||||
Crawford Carvallo | Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Weighted-average amortization period of intangible assets | 15 years | ||||||
Global Technical Services | Europe | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire business | $ 1,519,000,000 | ||||||
Net tangible assets acquired including cash | 135,000,000 | ||||||
Business combinations, total consideration | 2,431,000,000 | ||||||
Cash to be paid in one year | 234,000,000 | ||||||
Cash to be paid in three years | 351,000,000 | ||||||
Contingent consideration | 327,000,000 | ||||||
Business combination, definite-lived intangible assets | 951,000,000 | ||||||
Goodwill | $ 1,164,000,000 | ||||||
Global Technical Services | Canada | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire business | 2,500,000,000 | ||||||
Net tangible assets acquired including cash | 134,000,000 | ||||||
Business combinations, total consideration | 3,400,000,000 | ||||||
Cash to be paid in one year | 348,000,000 | ||||||
Contingent consideration | 377,000,000 | ||||||
Business combination, definite-lived intangible assets | 1,094,000,000 | ||||||
Goodwill | 1,296,000,000 | ||||||
Business combination, deferred taxes | 202,000,000 | ||||||
Business combination, net tangible assets | $ 462,000,000 | ||||||
Number of businesses acquired | segment | 2 | ||||||
Maximum | Crawford Carvallo | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire business | $ 11,700,000,000 | ||||||
Crawford Compliance Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Variable interest entity, ownership percentage | 51.00% | ||||||
Loss on disposal of entity | (912,000) | ||||||
Lloyd Warwick International | |||||||
Business Acquisition [Line Items] | |||||||
Variable interest entity, ownership percentage | 51.00% | ||||||
Loss on disposal of entity | 14,700,000 | ||||||
Proceeds from sale of business | $ 19,600,000 | ||||||
Repayment of debt | $ 3,600,000 | ||||||
Working capital adjustments recognized under acquisition agreement | 700,000 | ||||||
Purchase price | 20,300,000 | ||||||
Gain on disposition, net of tax | 11,700,000 | ||||||
WeGoLook, LC | |||||||
Business Acquisition [Line Items] | |||||||
Membership interest percentage | 15.00% | ||||||
Payment to acquire business | $ 310,000 | ||||||
Accelerated amortization amount recognized | $ 1,100,000 | ||||||
Crawford Carvallo | |||||||
Business Acquisition [Line Items] | |||||||
Membership interest percentage | 85.00% | ||||||
Percentage of held interest prior to acquisition | 15.00% |
Business Acquisitions and Dis_4
Business Acquisitions and Dispositions - Schedule of Valuation Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
ASSETS | ||||
Cash and cash equivalents | $ 44,656,000 | $ 51,802,000 | ||
Accounts receivable, less allowance for expected credit losses of $9,464 and $9,348, respectively | 123,060,000 | 128,217,000 | ||
Unbilled revenues, at estimated billable amounts | 103,528,000 | 103,894,000 | ||
Prepaid expenses and other current assets | 29,490,000 | 23,476,000 | ||
Net Property and Equipment | 36,402,000 | 31,425,000 | ||
Operating lease right-of-use asset, net | 109,315,000 | 102,354,000 | $ 122,300,000 | |
Goodwill | 66,537,000 | 80,642,000 | $ 96,890,000 | |
Intangible assets arising from business acquisitions, net | 71,176,000 | 75,083,000 | ||
Other noncurrent assets | 70,935,000 | 70,884,000 | ||
TOTAL ASSETS | 752,984,000 | 760,013,000 | ||
Current Liabilities: | ||||
Accounts payable | 41,544,000 | 34,377,000 | ||
Accrued compensation and related costs | 81,848,000 | 68,499,000 | ||
Income taxes payable | 5,822,000 | 3,030,000 | ||
Operating lease liability | 32,745,000 | 30,765,000 | ||
Long-term debt and finance leases, less current installments | 111,758,000 | 148,408,000 | ||
Total Current Liabilities | 242,794,000 | 236,265,000 | ||
Noncontrolling interests | (11,000) | $ 3,250,000 | ||
Crawford Carvallo | ||||
ASSETS | ||||
Cash and cash equivalents | 1,599,000 | |||
Accounts receivable, less allowance for expected credit losses of $9,464 and $9,348, respectively | 3,662,000 | |||
Unbilled revenues, at estimated billable amounts | 2,930,000 | |||
Prepaid expenses and other current assets | 3,613,000 | |||
Net Property and Equipment | 828,000 | |||
Purchased software, net | 459,000 | |||
Operating lease right-of-use asset, net | 8,743,000 | |||
Goodwill | 5,501,000 | |||
Intangible assets arising from business acquisitions, net | 7,600,000 | |||
Other noncurrent assets | 277,000 | |||
TOTAL ASSETS | 35,212,000 | |||
Current Liabilities: | ||||
Accounts payable | 1,014,000 | |||
Accrued compensation and related costs | 3,870,000 | |||
Income taxes payable | 662,000 | |||
Operating lease liability | 8,743,000 | |||
Long-term debt and finance leases, less current installments | 5,803,000 | |||
Total Current Liabilities | 20,092,000 | |||
Net Assets Acquired, Before Noncontrolling Interests | 15,120,000 | |||
Noncontrolling interests | 489,000 | |||
Net Assets Acquired, After Noncontrolling Interests | $ 14,631,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Goodwill [Roll Forward] | |||||||
Goodwill | $ 299,140,000 | $ 302,709,000 | $ 299,140,000 | $ 297,904,000 | |||
Accumulated impairment losses | (218,498,000) | (236,172,000) | (218,498,000) | (201,014,000) | |||
Net goodwill | 80,642,000 | 66,537,000 | 80,642,000 | 96,890,000 | |||
Goodwill of acquired businesses | 5,501,000 | 1,164,000 | |||||
Impairment of goodwill | $ (17,674,000) | [1] | (17,484,000) | (17,674,000) | [1] | (17,484,000) | (1,056,000) |
Foreign currency effects | 58,000 | 72,000 | |||||
Goodwill of disposed business | (1,990,000) | ||||||
Crawford Claims Solutions | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill | 55,559,000 | 55,565,000 | 55,559,000 | 55,553,000 | |||
Accumulated impairment losses | (37,891,000) | (55,565,000) | (37,891,000) | (20,407,000) | |||
Net goodwill | 0 | 17,668,000 | 17,668,000 | 35,146,000 | |||
Impairment of goodwill | $ (17,700,000) | (17,674,000) | (17,484,000) | 0 | |||
Foreign currency effects | 6,000 | 6,000 | |||||
Crawford TPA Solutions | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill | 168,734,000 | 171,603,000 | 168,734,000 | 168,730,000 | |||
Accumulated impairment losses | (159,424,000) | (159,424,000) | (159,424,000) | (159,424,000) | |||
Net goodwill | 9,310,000 | 12,179,000 | 9,310,000 | 9,306,000 | |||
Goodwill of acquired businesses | 2,857,000 | ||||||
Foreign currency effects | 12,000 | 4,000 | |||||
Crawford TPA Solutions | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill | 74,847,000 | 75,541,000 | 74,847,000 | 73,621,000 | |||
Accumulated impairment losses | (21,183,000) | (21,183,000) | (21,183,000) | (21,183,000) | |||
Net goodwill | $ 53,664,000 | 54,358,000 | 53,664,000 | $ 52,438,000 | |||
Goodwill of acquired businesses | 2,644,000 | 1,164,000 | |||||
Foreign currency effects | 40,000 | $ 62,000 | |||||
Goodwill of disposed business | $ (1,990,000) | ||||||
[1] | The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Goodwill [Line Items] | |||||||
Goodwill and intangible asset impairment charges | $ 17,674,000 | [1] | $ 17,484,000 | $ 17,674,000 | [1] | $ 17,484,000 | $ 1,056,000 |
Minimum | |||||||
Goodwill [Line Items] | |||||||
Finite-lived intangible asset, useful life | 2 years | ||||||
Maximum | |||||||
Goodwill [Line Items] | |||||||
Finite-lived intangible asset, useful life | 15 years | ||||||
Customer relationships and trade names | |||||||
Goodwill [Line Items] | |||||||
Amortization of intangible assets | $ 11,653,000,000 | 11,277,000,000 | 11,152,000,000 | ||||
Crawford Claims Solutions | |||||||
Goodwill [Line Items] | |||||||
Goodwill and intangible asset impairment charges | $ 17,700,000 | $ 17,674,000 | $ 17,484,000 | $ 0 | |||
[1] | The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Acquired Finite-Lived Intangible Asset by Major Class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 159,048 | $ 151,204 |
Accumulated Amortization | (118,719) | (106,967) |
Net Carrying Value | $ 40,329 | $ 44,237 |
Weighted-average amortization period | 6 years 8 months 12 days | 3 years 9 months 18 days |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2021 | $ 9,678 | |
2022 | 4,711 | |
2023 | 4,614 | |
2024 | 4,152 | |
2025 | 4,050 | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 131,948 | $ 127,362 |
Accumulated Amortization | (101,319) | (92,354) |
Net Carrying Value | $ 30,629 | $ 35,008 |
Weighted-average amortization period | 3 years 3 months 18 days | 4 years |
Technology-based | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 18,183 | $ 16,562 |
Accumulated Amortization | (10,174) | (9,108) |
Net Carrying Value | $ 8,009 | $ 7,454 |
Weighted-average amortization period | 6 years 6 months | 7 years |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,123 | $ 1,795 |
Accumulated Amortization | (1,737) | (1,636) |
Net Carrying Value | $ 1,386 | $ 159 |
Weighted-average amortization period | 6 years | 1 year 8 months 12 days |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,794 | $ 5,485 |
Accumulated Amortization | (5,489) | (3,869) |
Net Carrying Value | $ 305 | $ 1,616 |
Weighted-average amortization period | 10 years 1 month 6 days | 1 year 9 months 18 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Acquired Indefinite-Lived Intangible Assets (Details) - Trade name - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 32,503 | $ 32,502 |
Accumulated Impairments | (1,656) | (1,656) |
Net Carrying Value | $ 30,847 | $ 30,846 |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt, Including Finance Leases - Long-term debt instruments (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Finance lease and other obligations | $ 740,000 | $ 77,000 |
Total long-term debt and finance leases | 113,595,000 | 176,954,000 |
Less: portion of Credit Facility classified as short-term | (1,837,000) | (28,546,000) |
Less: current installments of finance leases and other obligations | (267,000) | (15,000) |
Total long-term debt and finance leases, less current installments | 111,758,000 | 148,408,000 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit Facility | 112,855,000 | 176,877,000 |
Less: portion of Credit Facility classified as short-term | $ (1,570,000) | $ (28,531,000) |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt, Including Finance Leases - Credit Facility (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)quarter | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 18, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Debt instrument, interest period | 1 month | |||
Line of credit facility, collateral, capital stock, percent | 100.00% | |||
Number of quarters | quarter | 4 | |||
Short-term borrowings | $ 1,837,000 | $ 28,546,000 | ||
Interest expense, debt | 8,187,000 | 11,519,000 | $ 11,399,000 | |
Interest paid | $ 7,152,000 | 10,470,000 | $ 10,381,000 | |
Maximum | ||||
Debt Instrument [Line Items] | ||||
Lessee leasing arrangements, finance leases, term of contract | 60 months | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Lessee leasing arrangements, finance leases, term of contract | 24 months | |||
Letter of credit subcommitment | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 100,000,000 | |||
Line of credit facility, remaining borrowing capacity | 11,512,000 | |||
Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, current borrowing capacity | 450,000,000 | |||
Credit Facility | 112,855,000 | 176,877,000 | ||
Line of credit facility, remaining borrowing capacity | 325,653,000 | |||
Short-term borrowings | $ 1,570,000 | $ 28,531,000 | ||
Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate (percent) | 1.00% | |||
Credit Facility | UK Borrower | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 185,000,000 | |||
Credit Facility | Canadian Borrower | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, current borrowing capacity | 75,000,000 | |||
Credit Facility | Australian Borrower | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 32,500,000 | |||
Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate (percent) | 2.10% | |||
Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate (percent) | 1.10% | |||
Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate (percent) | 1.30% | |||
Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate (percent) | 0.30% | |||
Third Amendment To Credit Agreement | Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Investments permitted under the Credit Facility | $ 5,000,000 | |||
2015 Amendment to Credit Agreement | Credit Facility | Wells Fargo Bank, National Association | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maximum senior secured leverage ratio | 3.25 | |||
Debt instrument, maximum total leverage ratio | 4.25 | |||
Debt instrument, covenant, coverage ratio | 1.10 |
Short-Term and Long-Term Debt_5
Short-Term and Long-Term Debt, Including Finance Leases - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Long-term Debt, 2021 | $ 1,570 | |
Long-term Debt, 2022 | 111,285 | |
Long-term Debt | 112,855 | |
Finance Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Finance Lease Obligations, 2021 | 267 | |
Finance Lease Obligations, 2022 | 239 | |
Finance Lease Obligations, 2023 | 164 | |
Finance Lease Obligations, 2024 | 47 | |
Finance Lease Obligations, 2025 | 23 | |
Finance Leases, Future Minimum Payments Due | 740 | |
Long-term Debt and Capital Lease Obligations, Fiscal Year Maturity [Abstract] | ||
Total, 2021 | 1,837 | |
Total, 2022 | 111,524 | |
Total, 2023 | 164 | |
Total, 2024 | 47 | |
Total, 2025 | 23 | |
Total long-term debt and finance leases | $ 113,595 | $ 176,954 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 5 years |
Termination period | 1 year |
Sublease income, 2021 | $ 4,180,000 |
Sublease income, 2022 | 110,000 |
Leases, not yet commenced | $ 2,370,000 |
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 | 12 years |
Lease term, not yet commenced | 10 years |
Lease Commitments - Lease-Relat
Lease Commitments - Lease-Related Assets and Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | |||
Operating lease right-of-use assets, net | $ 109,315,000 | $ 102,354,000 | $ 122,300,000 |
Current operating lease liabilities | 32,745,000 | 30,765,000 | |
Noncurrent operating lease liabilities | 93,228,000 | 87,064,000 | |
Total operating lease liabilities | $ 125,973,000 | $ 117,829,000 | |
Weighted-Average Remaining Lease Term | 6 years 3 months 18 days | 5 years 8 months 19 days | |
Weighted-Average Discount Rate | 5.30% | 5.40% |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 38,242 | $ 37,824 |
Variable lease cost | 8,037 | 7,948 |
Sublease income | $ 4,090 | $ 4,163 |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Operating cash flows for operating leases | $ 37,091,000 | $ 38,906,000 | |
Right-of-use assets obtained in exchange for lease obligations | 40,535,000 | 30,056,000 | |
Operating lease right-of-use assets, net | $ 109,315,000 | $ 102,354,000 | $ 122,300,000 |
Lease Commitments - Operating L
Lease Commitments - Operating Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 37,976 | |
2022 | 25,214 | |
2023 | 17,686 | |
2024 | 14,496 | |
2025 | 11,770 | |
Thereafter | 41,624 | |
Total undiscounted lease payments | 148,766 | |
Less imputed interest | (22,793) | |
Present value of future lease payments | $ 125,973 | $ 117,829 |
Income Taxes - Income (loss) be
Income Taxes - Income (loss) before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (1,029) | $ (1,472) | $ 4,634 |
Foreign | 40,117 | 25,109 | 39,497 |
Income before income taxes | $ 39,088 | $ 23,637 | $ 44,131 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||||||||||
U.S. federal and state | $ 12,561 | $ 1,546 | $ 1,065 | ||||||||
Foreign | 8,457 | 9,525 | 9,530 | ||||||||
Deferred: | |||||||||||
U.S. federal and state | (8,870) | 1,643 | 4,051 | ||||||||
Foreign | (135) | 1,397 | 3,896 | ||||||||
Provision for income taxes | $ 2,459 | $ 11,729 | $ 6,311 | $ (8,486) | $ 2,991 | $ 5,328 | $ 2,859 | $ 2,933 | $ 12,013 | $ 14,111 | $ 18,542 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Net cash payments for income taxes | $ 12,216,000 | $ 16,996,000 | $ 8,168,000 |
Change in tax rate, income tax expense | 3,583,000 | ||
Valuation allowance, foreign | 6,977,000 | ||
US tax reform - revaluation of deferred taxes | 102,000 | ||
Release of transition tax of uncertain tax positions and adjustments | 3,496,000 | ||
Estimated tax over book differences | 89,510,000 | ||
Loss carryforwards | 23,033,000 | ||
Unrecognized tax benefits, loss carryforwards | 228,000 | ||
Operating loss carryforwards, not subject to expiration | 15,936,000 | ||
Operating loss carryforwards, subject to expiration | $ 7,097,000 | ||
Operating loss carryforwards, expiration period | 20 years | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 89,000 | 256,000 | 256,000 |
Unrecognized tax benefits that would impact effective tax rate | $ 713,000 | $ 1,940,000 | $ 5,493,000 |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to federal statutory rate (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||||||||||
Federal income taxes at statutory rate | $ 8,208,000 | $ 4,964,000 | $ 9,267,000 | ||||||||
State income taxes, net of federal benefit | 325,000 | 505,000 | 2,685,000 | ||||||||
Goodwill impairment | 2,322,000 | 1,883,000 | |||||||||
Foreign taxes | 3,328,000 | 2,276,000 | 2,150,000 | ||||||||
Change in valuation allowance | (374,000) | 3,919,000 | 9,540,000 | ||||||||
Research and development credits | (1,001,000) | (626,000) | (273,000) | ||||||||
Foreign tax credits | (1,150,000) | (283,000) | (429,000) | ||||||||
Nondeductible meals and entertainment | 377,000 | 724,000 | 782,000 | ||||||||
US tax reform - revaluation of deferred taxes | 102,000 | ||||||||||
US tax reform - transition tax, net of credits | (3,496,000) | ||||||||||
Change in permanent reinvestment assertion | 776,000 | (1,792,000) | |||||||||
Disposals and liquidations of businesses | (935,000) | ||||||||||
Global intangible low-tax income, net of credits | (54,000) | 892,000 | 454,000 | ||||||||
Foreign-derived intangible income deduction | (115,000) | (315,000) | (323,000) | ||||||||
Tax rate changes | (359,000) | 486,000 | (392,000) | ||||||||
Other | 665,000 | (314,000) | 267,000 | ||||||||
Provision for income taxes | $ 2,459,000 | $ 11,729,000 | $ 6,311,000 | $ (8,486,000) | $ 2,991,000 | $ 5,328,000 | $ 2,859,000 | $ 2,933,000 | $ 12,013,000 | $ 14,111,000 | $ 18,542,000 |
Income Taxes - Deferred income
Income Taxes - Deferred income taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
Accounts receivable allowance | $ 1,019 | $ 1,163 | ||
Accrued compensation | 14,655 | 9,553 | ||
Accrued pension liabilities | 4,950 | 9,116 | ||
Self-insured risks | 5,746 | 4,301 | ||
Deferred revenues | 5,376 | 4,249 | ||
Interest | 2,419 | 5,399 | ||
Tax credit carryforwards | 7,090 | 11,634 | ||
Loss carryforwards | 22,805 | 25,523 | ||
Lease liability | 31,435 | 29,785 | ||
Other | 2,158 | 3,436 | ||
Gross deferred income tax assets | 97,653 | 104,159 | ||
Unbilled revenues | 5,311 | 6,522 | ||
Repatriated earnings | 776 | |||
Depreciation and amortization | 23,474 | 28,025 | ||
Lease right-of-use asset | 27,513 | 25,865 | ||
Gross deferred income tax liabilities | 57,074 | 60,412 | ||
Net deferred income tax assets before valuation allowance | 40,579 | 43,747 | ||
Valuation allowance | (16,579) | (28,128) | $ (25,864) | $ (18,829) |
Net deferred income tax assets | 24,000 | 15,619 | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Deferred income tax assets | 25,595 | 17,971 | ||
Long-term deferred income tax liabilities included in "Other noncurrent liabilities" | (1,595) | (2,352) | ||
Net deferred income tax assets | $ 24,000 | $ 15,619 |
Income Taxes - Deferred tax val
Income Taxes - Deferred tax valuation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance, Deferred Tax Asset [Roll Forward] | |||
Balance, beginning of year | $ 28,128 | $ 25,864 | $ 18,829 |
Other changes | (11,549) | 2,264 | 7,035 |
Balance, end of year | $ 16,579 | $ 28,128 | $ 25,864 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized income tax benefits [Rollforward] | |||
Beginning of year | $ 5,287 | $ 7,401 | $ 11,297 |
Additions for tax provisions related to the current year | 92 | 515 | 54 |
Additions for tax positions related to prior years | 2 | 646 | |
Reductions for tax positions related to prior years | (505) | (113) | (3,941) |
Currency translation adjustment | (9) | ||
Reductions for settlements | (516) | (2,642) | |
Lapses of applicable statutes of limitation | (582) | (520) | |
Ending of year | $ 3,778 | $ 5,287 | $ 7,401 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost recognized | $ 23,641,000 | $ 25,226,000 | $ 23,417,000 |
Defined benefit plan, voluntary contribution | $ 10,446,000 | 1,112,000 | |
Corridor amount | 10.00% | ||
Net unrecognized actuarial losses expected to be recognized in 2018 | $ 10,400,000,000 | ||
Net unrecognized actuarial losses expected to be recognized in 2018, net of tax | 7,700,000,000 | ||
Net periodic benefit cost (income), non-service cost | (569,000) | 3,559,000 | (2,590,000) |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, planned contributions for each of next 5 years | $ 9,000,000 | ||
Defined benefit plan, voluntary contribution | $ 10,000,000 | ||
Increase (decrease) in projected benefit obligation | $ (3,063,000) | ||
Discount rate used to compute periodic benefit cost | 3.92% | ||
Expected long-term rates of return on plans' assets in next fiscal year | 4.70% | ||
U.K Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to compute periodic benefit cost | 1.71% | ||
Expected long-term rates of return on plans' assets in next fiscal year | 2.10% |
Retirement Plans - Projected Be
Retirement Plans - Projected Benefit Obligations and Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligations | $ 494,273 | $ 486,305 |
Fair value of plans' assets | 437,234 | 417,074 |
U.K Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligations | 267,200 | 261,953 |
Fair value of plans' assets | $ 303,957 | $ 296,943 |
Retirement Plans - Reconciliati
Retirement Plans - Reconciliation of Projected Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Projected Benefit Obligations: | ||
Beginning of measurement period | $ 748,258 | $ 694,482 |
Service cost | 1,295 | 1,278 |
Interest cost | 16,643 | 22,408 |
Employee contributions | 35 | 45 |
Actuarial loss (gain) | 49,938 | 77,549 |
Plan settlements | (1,450) | |
Benefits paid | (55,150) | (50,415) |
Foreign currency effects | 1,904 | 2,911 |
End of measurement period | 761,473 | 748,258 |
Fair Value of Plans' Assets: | ||
Beginning of measurement period | 714,017 | 649,688 |
Actual return on plans' assets | 71,446 | 109,670 |
Defined benefit plan, voluntary contribution | 10,446 | 1,112 |
Employee contributions | 35 | 522 |
Plan settlements | (1,450) | |
Benefits paid | (55,150) | (50,415) |
Foreign currency effects | 1,847 | 3,440 |
End of measurement period | 741,191 | 714,017 |
Unfunded Status | $ (20,282) | $ (34,241) |
Retirement Plans - Fund Status
Retirement Plans - Fund Status (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Unfunded Status | $ (20,282) | $ (34,241) |
Accumulated other comprehensive loss, before income taxes | (264,244) | (268,275) |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
U.S. Qualified Plan | 53,886 | 65,909 |
U.K. prepaid pension asset included in "Other noncurrent assets" | (36,757) | (34,990) |
US | Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
U.S. Qualified Plan | 51,645 | 63,538 |
U.K Plan | Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
U.S. Qualified Plan | 2,241 | 2,371 |
Defined Benefit Plan, Unfunded Plan | Nonqualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
U.S. Qualified Plan | 316 | 310 |
Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities" | 2,837 | 3,012 |
Unfunded Status | $ 20,282 | $ 34,241 |
Retirement Plans - AOCI (Detail
Retirement Plans - AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net unrecognized actuarial (loss) gain at beginning of period | $ (268,427) | $ (280,948) |
Amortization of net loss (gain) | 10,804 | 10,836 |
Net gain arising during the year | (6,510) | 2,311 |
Currency translation | (111) | (626) |
Net unrecognized actuarial (loss) gain at end of period | (264,244) | (268,427) |
Post-Retirement Medical Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net unrecognized actuarial (loss) gain at beginning of period | 152 | 304 |
Amortization of net loss (gain) | $ (152) | (152) |
Net unrecognized actuarial (loss) gain at end of period | $ 152 |
Retirement Plans - Net Periodic
Retirement Plans - Net Periodic Benefit Costs and Benefit Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 1,295 | $ 1,278 | |
Interest cost | 16,643 | 22,408 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2021 | 42,436 | ||
2022 | 42,590 | ||
2023 | 42,611 | ||
2024 | 42,440 | ||
2025 | 42,329 | ||
2026-2030 | 206,549 | ||
Defined Benefit Pension Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 1,295 | 1,278 | $ 1,395 |
Interest cost | 16,643 | 22,376 | 20,933 |
Expected return on assets | (28,016) | (29,654) | (34,267) |
Amortization of actuarial loss | 10,804 | 10,837 | 10,744 |
Net periodic benefit cost (credit) | $ 726 | $ 4,837 | $ (1,195) |
Retirement Plans - Assumptions
Retirement Plans - Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate used to compute benefit obligations | 2.38% | 3.15% |
Discount rate used to compute periodic benefit cost | 3.15% | 4.31% |
Expected long-term rates of return on plans' assets | 4.70% | 6.10% |
U.K Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate used to compute benefit obligations | 1.60% | 1.93% |
Discount rate used to compute periodic benefit cost | 1.93% | 2.77% |
Expected long-term rates of return on plans' assets | 2.54% | 3.28% |
Retirement Plans - Plan Asset A
Retirement Plans - Plan Asset Allocation (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 100.00% | 100.00% |
U.S. | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 23.40% | 21.40% |
U.S. | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 67.20% | 69.30% |
U.S. | Alternative strategies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 6.20% | 5.90% |
U.S. | Cash, cash equivalents and short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 3.10% | 3.40% |
U.K Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 100.00% | 100.00% |
U.K Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 17.10% | 17.90% |
U.K Plan | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 67.40% | 68.30% |
U.K Plan | Alternative strategies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 14.70% | 13.00% |
U.K Plan | Cash, cash equivalents and short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total asset allocation | 0.90% | 0.80% |
Common Stock and Earnings per_3
Common Stock and Earnings per Share - Additional Information (Details) | 12 Months Ended | ||||||
Dec. 31, 2020shares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2020shares | Dec. 31, 2020classofstockshares | Dec. 31, 2019$ / sharesshares | May 09, 2019shares | Jul. 29, 2017shares | |
Equity, Class of Treasury Stock | |||||||
Number of classes of common stock | 2 | 2 | |||||
Average cost (USD per share) | $ / shares | $ 8.42 | ||||||
Class A Non-Voting | |||||||
Equity, Class of Treasury Stock | |||||||
Approval rate to waive equal consideration rights | 75.00% | ||||||
Shares repurchased (shares) | 155,351 | ||||||
Class A Non-Voting | Stock Purchase Agreement | |||||||
Equity, Class of Treasury Stock | |||||||
Shares repurchased (in shares) | 421,427 | ||||||
Class A Non-Voting | Repurchase Authorization2017 | |||||||
Equity, Class of Treasury Stock | |||||||
Shares repurchased (shares) | 1,103,398 | ||||||
Average cost (USD per share) | $ / shares | $ 9.33 | ||||||
Common Stock | Repurchase Authorization2017 | |||||||
Equity, Class of Treasury Stock | |||||||
Number of shares authorized to be repurchased (shares) | 2,000,000 | ||||||
Common Stock | Repurchase Authorization 2019 | |||||||
Equity, Class of Treasury Stock | |||||||
Number of shares authorized to be repurchased (shares) | 2,000,000 | ||||||
Number of shares remaining to be repurchased (shares) | 642,097 | 642,097 | 642,097 | 642,097 | 958,907 | ||
Class B Voting | |||||||
Equity, Class of Treasury Stock | |||||||
Shares repurchased (shares) | 161,459 | ||||||
Class B Voting | Stock Purchase Agreement | |||||||
Equity, Class of Treasury Stock | |||||||
Shares repurchased (in shares) | 1,376,889 | ||||||
Class B Voting | Repurchase Authorization2017 | |||||||
Equity, Class of Treasury Stock | |||||||
Shares repurchased (shares) | 1,736,011 | ||||||
Average cost (USD per share) | $ / shares | $ 9.17 |
Common Stock and Earnings per_4
Common Stock and Earnings per Share - Schedule of Computations of Basic Net Income Attributable to Shareholders of Crawford & Company per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2020 | [1] | Sep. 30, 2020 | [1] | Jun. 30, 2020 | [1] | Mar. 31, 2020 | [1] | Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Class A Non-Voting | |||||||||||||||||||||
Numerator: | |||||||||||||||||||||
Allocation of undistributed earnings (loss) | $ 10,743 | $ (392) | $ 6,941 | ||||||||||||||||||
Dividends paid | 5,815 | 8,592 | 8,639 | ||||||||||||||||||
Net income available to common shareholders, basic | $ 16,558 | $ 8,200 | $ 15,580 | ||||||||||||||||||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||||||||||||||||||||
Weighted-average common shares outstanding, basic | 30,605 | 30,637 | 30,805 | ||||||||||||||||||
Earnings per share - basic | $ 0.18 | $ 0.46 | $ 0.11 | $ 0.21 | $ 0.13 | $ 0.22 | $ 0.06 | $ 0.12 | $ 0.54 | [1] | $ 0.27 | [1] | $ 0.51 | ||||||||
Class B Voting | |||||||||||||||||||||
Numerator: | |||||||||||||||||||||
Allocation of undistributed earnings (loss) | $ 7,908 | $ (294) | $ 5,509 | ||||||||||||||||||
Dividends paid | 3,830 | 4,579 | 4,889 | ||||||||||||||||||
Net income available to common shareholders, basic | $ 11,738 | $ 4,285 | $ 10,398 | ||||||||||||||||||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||||||||||||||||||||
Weighted-average common shares outstanding, basic | 22,527 | 22,975 | 24,449 | ||||||||||||||||||
Earnings per share - basic | $ 0.18 | $ 0.46 | $ 0.11 | $ 0.23 | $ 0.15 | $ 0.19 | $ 0.04 | $ 0.10 | $ 0.52 | [1] | $ 0.19 | [1] | $ 0.43 | ||||||||
[1] | Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data. |
Common Stock and Earnings per_5
Common Stock and Earnings per Share - Schedule of Computations of Diluted Net Income Attributable to Shareholders of Crawford & Company per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2020 | [1] | Sep. 30, 2020 | [1] | Jun. 30, 2020 | [1] | Mar. 31, 2020 | [1] | Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Class A Non-Voting | |||||||||||||||||||||
Numerator: | |||||||||||||||||||||
Allocation of undistributed earnings (loss) | $ 10,781 | $ (394) | $ 7,003 | ||||||||||||||||||
Dividends paid | 5,815 | 8,592 | 8,639 | ||||||||||||||||||
Net income available to common shareholders, diluted | $ 16,596 | $ 8,198 | $ 15,642 | ||||||||||||||||||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||||||||||||||||||||
Weighted-average common shares outstanding, basic | 30,605 | 30,637 | 30,805 | ||||||||||||||||||
Weighted-average effect of dilutive securities (1) | 252 | 453 | 629 | ||||||||||||||||||
Weighted-average number of shares outstanding, diluted | 30,857 | 31,090 | 31,434 | ||||||||||||||||||
Earnings per share - diluted | $ 0.18 | $ 0.46 | $ 0.11 | $ 0.21 | $ 0.13 | $ 0.21 | $ 0.06 | $ 0.12 | $ 0.54 | [1] | $ 0.26 | [1] | $ 0.50 | ||||||||
Class B Voting | |||||||||||||||||||||
Numerator: | |||||||||||||||||||||
Allocation of undistributed earnings (loss) | $ 7,870 | $ (292) | $ 5,447 | ||||||||||||||||||
Dividends paid | 3,830 | 4,579 | 4,889 | ||||||||||||||||||
Net income available to common shareholders, diluted | $ 11,700 | $ 4,287 | $ 10,336 | ||||||||||||||||||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | |||||||||||||||||||||
Weighted-average common shares outstanding, basic | 22,527 | 22,975 | 24,449 | ||||||||||||||||||
Weighted-average number of shares outstanding, diluted | 22,527 | 22,975 | 24,449 | ||||||||||||||||||
Earnings per share - diluted | $ 0.18 | $ 0.46 | $ 0.11 | $ 0.23 | $ 0.15 | $ 0.19 | $ 0.04 | $ 0.10 | $ 0.52 | [1] | $ 0.19 | [1] | $ 0.42 | ||||||||
[1] | Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data. |
Common Stock and Earnings per_6
Common Stock and Earnings per Share - Schedule of Antidilutive Shares Excluded from Computation of Diluted Earnings per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares Underlying Stock Options Excluded | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from diluted earnings per share (shares) | 1,996 | 622 | 1,175 |
Performance Stock Grants Excluded because Performance Conditions Have Not Been Met | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from diluted earnings per share (shares) | 578 | 717 | 752 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Adjustment for long-term intercompany transactions, net of tax | $ (5,165,000) | $ (928,000) | $ (1,838,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ 162,567 | $ 175,446 | $ 186,964 | |
Unrealized net gains (losses) arising during the year | (4,966) | 1,036 | (18,014) | |
Ending balance | 186,928 | 162,567 | 175,446 | |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (35,850) | (36,352) | ||
Other comprehensive income before reclassifications | 4,595 | 502 | ||
Unrealized net gains (losses) arising during the year | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income | [1] | 0 | 0 | |
Net current period other comprehensive income | 4,595 | 502 | ||
Acquisition/Disposition of noncontrolling interest | 463 | |||
Ending balance | (30,792) | (35,850) | (36,352) | |
Retirement Liabilities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (171,057) | (180,095) | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Unrealized net gains (losses) arising during the year | (4,966) | 1,036 | ||
Amounts reclassified from accumulated other comprehensive income | [1] | 7,959 | 8,002 | |
Net current period other comprehensive income | 2,993 | 9,038 | ||
Acquisition/Disposition of noncontrolling interest | 0 | |||
Ending balance | (168,064) | (171,057) | (180,095) | |
AOCL Attributable to Shareholders of Crawford & Company | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (206,907) | (216,447) | (196,477) | |
Other comprehensive income before reclassifications | 4,595 | 502 | ||
Unrealized net gains (losses) arising during the year | (4,966) | 1,036 | ||
Amounts reclassified from accumulated other comprehensive income | [1] | 7,959 | 8,002 | |
Net current period other comprehensive income | 7,588 | 9,540 | ||
Acquisition/Disposition of noncontrolling interest | 463 | |||
Ending balance | $ (198,856) | $ (206,907) | $ (216,447) | |
[1] | Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's Consolidated Statements of Operations. See Note 8, "Retirement Plans" for additional details. |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation costs | $ 4,384,000 | $ 4,109,000 | $ 6,196,000 | |
Tax benefit from compensation expense | $ 947,000 | $ 888,000 | $ 1,475,000 | |
Share based award vesting period | 5 years | |||
Class A Non-Voting | ||||
Summary of Option Activity, Shares | ||||
Outstanding beginning balance (in shares) | 1,694 | 1,294 | 887 | |
Granted (in shares) | 660 | 591 | 582 | |
Exercised (in shares) | (111) | (21) | ||
Forfeited or expired (in shares) | (458) | (80) | (154) | |
Outstanding ending balance (in shares) | 1,896 | 1,694 | 1,294 | 887 |
Exercisable at end of period (in shares) | 1,101 | |||
Summary of Option Activity, Weighted-Average Exercise Price | ||||
Outstanding beginning balance, weighted-average exercise price (in usd per share) | $ 9.13 | $ 8.60 | $ 8.53 | |
Granted, weighted-average exercise price (in usd per share) | 8.73 | 9.70 | 8.60 | |
Exercised, weighted-average exercise price (in usd per share) | 5.91 | 4.88 | ||
Forfeited or expired, weighted-average exercise price (in usd per share) | 9.05 | 9.24 | 8.74 | |
Outstanding ending balance, weighted-average exercise price (in usd per share) | 9.01 | $ 9.13 | $ 8.60 | $ 8.53 |
Exercisable at end of period, weighted-average exercise price (in usd per share) | $ 9.06 | |||
Summary of Option Activity, Weighted-Average Remaining Contractual Term | ||||
Outstanding, weighted-average remaining contractual term | 7 years 4 months 24 days | 7 years 10 months 24 days | 8 years 1 month 6 days | 8 years 4 months 24 days |
Exercisable at end of period, weighted-average exercise price (in usd per share) | 6 years 7 months 6 days | |||
Outstanding, aggregate intrinsic value | $ 114,000 | $ 3,969,000 | $ 667,000 | $ 527,000 |
Exercisable at end of period, aggregate intrinsic value | $ 26,000 | |||
Shares Underlying Stock Options Excluded | ||||
Summary of Option Activity, Weighted-Average Remaining Contractual Term | ||||
Expected dividend yield | 3.02% | 3.80% | ||
Expected volatility | 35.48% | 36.73% | ||
Risk-free interest rate | 1.38% | 2.56% | ||
Expected term of options | 7 years | 7 years | ||
Shares Underlying Stock Options Excluded | Class A Non-Voting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based award vesting period | 3 years | |||
Stock option vesting per year (percent) | 33.00% | |||
Stock options expiration period | 10 years | |||
Share-based compensation expense | $ 617,000 | $ 1,397,000 | $ 1,253,000 | |
Summary of Option Activity, Weighted-Average Remaining Contractual Term | ||||
Weighted average grant date fair value, options granted during period (in usd per share) | $ 2.29 | $ 2.57 | $ 2.78 | |
Options, exercised in period, intrinsic value | $ 0 | $ 446,000 | $ 80,000 | |
Options, vested in period, fair value | 0 | $ 1,000,000 | $ 36,000 | |
Unearned compensation cost | $ 636,000 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance-Based Stock Grants (Details) | Sep. 23, 2020shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017$ / sharesshares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based award vesting period | 5 years | ||||
Weighted-Average Grant-Date Fair Value | |||||
Number of share to vest | 0 | ||||
Shares | |||||
Nonvested at the beginning of the period (in shares) | 79,560 | 81,608 | 72,109 | 112,219 | |
Granted (in shares) | 117,279 | 149,496 | 112,502 | ||
Vested (in shares) | (119,327) | (108,610) | (131,260) | ||
Forfeited or unearned (in shares) | (31,387) | (21,352) | |||
Nonvested at the beginning of the period, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 8.08 | $ 8.35 | $ 7.76 | $ 7.89 | |
Granted, weighted-average grant-date fair value (in usd per share) | $ / shares | 8.34 | 9.38 | 7.81 | ||
Vested, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 8.52 | 9.04 | 8.27 | ||
Forfeited or unearned, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 9.55 | $ 8.43 | |||
Minimum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Percentage of number of share earned of target share granted | 50 | ||||
Maximum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Percentage of number of share earned of target share granted | 200 | ||||
Shares Underlying Stock Options Excluded | Class A Non-Voting | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based award vesting period | 3 years | ||||
Weighted-Average Grant-Date Fair Value | |||||
Stock option vesting per year (percent) | 33.00% | ||||
Shares | |||||
Share-based compensation expense | $ | $ 617,000 | $ 1,397,000 | $ 1,253,000 | ||
Unearned compensation cost | $ | $ 636,000 | ||||
2019 Replacement Awards | |||||
Weighted-Average Grant-Date Fair Value | |||||
Stock option vesting per year (percent) | 50.00% | ||||
Vesting date | December 31, 2021 | ||||
2019 Replacement Awards | Maximum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Total shareholder return | 10 | ||||
2020 Replacement Awards | |||||
Weighted-Average Grant-Date Fair Value | |||||
Stock option vesting per year (percent) | 100.00% | ||||
Vesting date | December 31, 2022 | ||||
2020 Replacement Awards | Maximum | |||||
Weighted-Average Grant-Date Fair Value | |||||
Total shareholder return | 20 | ||||
Performance Stock Grants Excluded because Performance Conditions Have Not Been Met | Class A Non-Voting | |||||
Shares | |||||
Nonvested at the beginning of the period (in shares) | 899,271 | 973,779 | 988,837 | 884,342 | |
Granted (in shares) | 1,616,902 | 626,776 | 751,128 | ||
Vested (in shares) | (224,681) | (214,824) | (445,311) | ||
Forfeited or unearned (in shares) | (1,466,729) | (427,010) | (201,322) | ||
Nonvested at the beginning of the period, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 8.19 | $ 8.38 | $ 8.07 | $ 7.05 | |
Granted, weighted-average grant-date fair value (in usd per share) | $ / shares | 8.01 | 8.87 | 7.43 | ||
Vested, weighted-average grant-date fair value (in usd per share) | $ / shares | 8.33 | 8.49 | 5.98 | ||
Forfeited or unearned, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 8.10 | $ 8.34 | $ 7.54 | ||
Fair value of performance shares vested | $ | $ 1,871,000 | $ 1,823,000 | $ 2,662,000 | ||
Share-based compensation expense | $ | 2,382,000,000 | $ 1,082,000,000 | $ 3,307,000,000 | ||
Unearned compensation cost | $ | $ 4,999,000,000 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Shares (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based award vesting period | 5 years | ||
Shares | |||
Nonvested at the beginning of the period (in shares) | 81,608 | 72,109 | 112,219 |
Granted (in shares) | 117,279 | 149,496 | 112,502 |
Vested (in shares) | (119,327) | (108,610) | (131,260) |
Forfeited or unearned (in shares) | (31,387) | (21,352) | |
Nonvested at the end of the period (in shares) | 79,560 | 81,608 | 72,109 |
Weighted-Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period, weighted-average grant-date fair value (in usd per share) | $ 8.35 | $ 7.76 | $ 7.89 |
Granted, weighted-average grant-date fair value (in usd per share) | 8.34 | 9.38 | 7.81 |
Vested, weighted-average grant-date fair value (in usd per share) | 8.52 | 9.04 | 8.27 |
Forfeited or unearned, weighted-average grant-date fair value (in usd per share) | 9.55 | 8.43 | |
Nonvested at the end of the period, weighted-average grant-date fair value (in usd per share) | $ 8.08 | $ 8.35 | $ 7.76 |
Restricted stock | Class A Non-Voting | |||
Weighted-Average Grant-Date Fair Value | |||
Share-based compensation expense | $ 942,000 | $ 1,205,000 | $ 1,176,000 |
Unearned compensation cost | $ 214,000 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plans (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)Stock_PurchasePlan$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2020GBP (£)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of employee stock purchase plans | Stock_PurchasePlan | 3 | |||
United States Stock Repurchase Program | Class A Non-Voting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares authorized (in shares) | 1,200,000 | 1,200,000 | ||
Maximum annual earnings withheld to purchase shares | $ | $ 25,000 | |||
Purchase price of stock, percent of market price (percent) | 85.00% | |||
Shares issued (in shares) | 114,408 | 131,100 | 143,769 | |
Purchase price of shares during period (in usd per share) | $ / shares | $ 6.71 | $ 7.38 | $ 7.32 | |
Projected exercises in period (in shares) | 151,000 | 151,000 | ||
Share-based compensation expense | $ | $ 343,000 | $ 277,000 | $ 321,000 | |
U.K. Stock Repurchase Plan | Class A Non-Voting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares authorized (in shares) | 1,200,000 | 1,200,000 | ||
Purchase price of stock, percent of market price (percent) | 85.00% | |||
Shares issued (in shares) | 2,061 | 289,901 | 63,033 | |
Share-based compensation expense | $ | $ 163,000,000 | $ 148,000,000 | $ 140,000,000 | |
Maximum monthly earnings withheld to purchase shares (in gbp) | £ | £ 250 | |||
Estimated shares eligible for purchase (in shares) | 108,000 | 108,000 | ||
U.K. Stock Repurchase Plan | Class A Non-Voting | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Purchase price of shares during period (in usd per share) | $ / shares | $ 6.32 | |||
U.K. Stock Repurchase Plan | Class A Non-Voting | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Purchase price of shares during period (in usd per share) | $ / shares | $ 8.95 | |||
International stock based compensation plan | Class A Non-Voting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares authorized (in shares) | 1,000,000 | 1,000,000 | ||
Shares issued (in shares) | 4,051 | 4,264 | 8,740 | |
Purchase price of stock, percent of market price (percent) | 85.00% | |||
International stock based compensation plan | Class A Non-Voting | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum annual earnings withheld to purchase shares | $ | $ 21,250 | |||
International stock based compensation plan | Class A Non-Voting | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum number of shares per employee | 5,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities: | ||
Contingent earnout liability | $ 6,151 | $ 454 |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Contingent earnout liability | 6,151 | 454 |
Money Market Funds | ||
ASSETS | ||
Money market funds | 10,026 | 10,028 |
Money Market Funds | Quoted Prices in Active Markets (Level 1) | ||
ASSETS | ||
Money market funds | $ 10,026 | $ 10,028 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Details) | Dec. 31, 2020USD ($) |
Crawford Specialty Solutions | |
Liabilities: | |
Maximum possible earnout liability | $ 12,090,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | [1] | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Liabilities: | |||||||
Transfers of assets measured on a recurring basis out of Level 1 into Level 2 | $ 0 | $ 0 | $ 0 | ||||
Transfers of assets measured on a recurring basis out of Level 2 into Level 1 | 0 | 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 | ||||||
Goodwill and intangible asset impairments | $ 17,674,000 | $ 17,484,000 | $ 17,674,000 | [1] | $ 17,484,000 | $ 1,056,000 | |
[1] | The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments. |
Fair Value Measurements - Pensi
Fair Value Measurements - Pension Plan Assets within Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | $ 741,191 | $ 714,017 | $ 649,688 | |
US | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 404,275 | 403,144 | ||
Other plan liabilities, net | [1] | (7,336) | (26,220) | |
Net plan assets | 396,939 | 376,924 | ||
US | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 2,861 | 8,082 | ||
US | Short-term Investments | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 9,827 | 5,496 | ||
US | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 66,145 | 60,039 | ||
US | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 28,529 | 26,142 | ||
US | United States Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 243,226 | 275,994 | ||
US | International Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 28,501 | 3,745 | ||
US | Asset Categories Other | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 25,186 | 23,646 | ||
US | Quoted Prices in Active Markets (Level 1) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 38,868 | 59,329 | ||
US | Quoted Prices in Active Markets (Level 1) | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 2,861 | 8,082 | ||
US | Quoted Prices in Active Markets (Level 1) | United States Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 36,007 | 51,247 | ||
US | Significant Other Observable Inputs (Level 2) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 349,469 | 329,049 | ||
US | Significant Other Observable Inputs (Level 2) | Short-term Investments | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 9,827 | 5,496 | ||
US | Significant Other Observable Inputs (Level 2) | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 66,145 | 60,039 | ||
US | Significant Other Observable Inputs (Level 2) | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 28,529 | 26,142 | ||
US | Significant Other Observable Inputs (Level 2) | United States Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 207,219 | 224,747 | ||
US | Significant Other Observable Inputs (Level 2) | International Fixed Income Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 28,501 | 3,745 | ||
US | Significant Other Observable Inputs (Level 2) | Asset Categories Other | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 9,248 | 8,880 | ||
US | Significant Unobservable Inputs (Level 3) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 15,938 | 14,766 | 16,488 | |
US | Significant Unobservable Inputs (Level 3) | Asset Categories Other | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 15,938 | 14,766 | ||
U.K Plan | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 303,954 | 296,943 | ||
U.K Plan | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 2,613 | 2,338 | ||
U.K Plan | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 44,461 | 43,613 | ||
U.K Plan | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 7,510 | 9,418 | ||
U.K Plan | Money Market Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 162,276 | 167,741 | ||
U.K Plan | US Government Agencies Debt Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 42,564 | 34,926 | ||
U.K Plan | Alternative strategies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 34,958 | 29,172 | ||
U.K Plan | Real Estate Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 9,572 | 9,735 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 2,613 | 2,338 | ||
U.K Plan | Quoted Prices in Active Markets (Level 1) | Cash and Cash Equivalents | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 2,613 | 2,338 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 291,769 | 284,870 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | United States Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 44,461 | 43,613 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | International Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 7,510 | 9,418 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | Money Market Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 162,276 | 167,741 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | US Government Agencies Debt Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 42,564 | 34,926 | ||
U.K Plan | Significant Other Observable Inputs (Level 2) | Alternative strategies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 34,958 | 29,172 | ||
U.K Plan | Significant Unobservable Inputs (Level 3) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | 9,572 | 9,735 | $ 9,945 | |
U.K Plan | Significant Unobservable Inputs (Level 3) | Real Estate Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total plan assets | $ 9,572 | $ 9,735 | ||
[1] | net amounts payable for unsettled security transactions. |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation Of Level 3 Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | $ 714,017 | $ 649,688 |
Actual return on plan assets: | ||
End of measurement period | 741,191 | 714,017 |
U.S. | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | 403,144 | |
Actual return on plan assets: | ||
End of measurement period | 404,275 | 403,144 |
U.K Plan | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | 296,943 | |
Actual return on plan assets: | ||
End of measurement period | 303,954 | 296,943 |
Significant Unobservable Inputs (Level 3) | U.S. | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | 14,766 | 16,488 |
Actual return on plan assets: | ||
Related to assets still held at the reporting date | 1,172 | (1,722) |
End of measurement period | 15,938 | 14,766 |
Significant Unobservable Inputs (Level 3) | U.K Plan | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning of measurement period | 9,735 | 9,945 |
Actual return on plan assets: | ||
Related to assets still held at the reporting date | (163) | (210) |
End of measurement period | $ 9,572 | $ 9,735 |
Segment and Geographic Inform_3
Segment and Geographic Information - Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 265,605 | $ 261,669 | $ 242,875 | $ 246,046 | $ 257,562 | $ 265,842 | $ 267,846 | $ 256,377 | $ 1,016,195 | $ 1,047,627 | $ 1,122,979 | |
Assets | 752,984 | 760,013 | 752,984 | 760,013 | ||||||||
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Segment operating earnings | 88,404 | 84,124 | 97,781 | |||||||||
Depreciation and amortization | [1] | 13,041 | 14,424 | 16,846 | ||||||||
Assets | [2] | 364,301 | 387,836 | 364,301 | 387,836 | 421,321 | ||||||
Service | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 982,492 | 1,005,802 | 1,070,971 | |||||||||
Crawford Claims Solutions | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Segment operating earnings | 14,375 | 7,630 | 11,308 | |||||||||
Depreciation and amortization | [1] | 2,405 | 2,461 | 3,485 | ||||||||
Assets | [2] | 120,777 | 136,451 | 120,777 | 136,451 | 163,899 | ||||||
Crawford Claims Solutions | Service | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 356,447 | 339,837 | 361,053 | |||||||||
Crawford TPA Solutions | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 364,983 | 393,856 | ||||||||||
Crawford TPA Solutions | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Segment operating earnings | 21,476 | 27,173 | 36,909 | |||||||||
Depreciation and amortization | [1] | 9,345 | 10,152 | 9,844 | ||||||||
Assets | [2] | 88,002 | 85,810 | 88,002 | 85,810 | 92,007 | ||||||
Crawford TPA Solutions | Service | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 364,983 | 393,856 | 405,335 | |||||||||
Crawford Specialty Solutions | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 261,062 | 272,109 | ||||||||||
Crawford Specialty Solutions | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Segment operating earnings | 52,553 | 49,321 | 49,564 | |||||||||
Depreciation and amortization | [1] | 1,291 | 1,811 | 3,517 | ||||||||
Assets | [2] | $ 155,522 | $ 165,575 | 155,522 | 165,575 | 165,415 | ||||||
Crawford Specialty Solutions | Service | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 261,062 | $ 272,109 | $ 304,583 | |||||||||
[1] | Excludes amortization expense of finite-lived customer relationships and trade name intangible assets. | |||||||||||
[2] | Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. |
Segment and Geographic Inform_4
Segment and Geographic Information - Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Crawford Claims Solutions | $ 37,380 | $ 21,124 | $ 30,020 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Crawford Claims Solutions | 19,724 | 16,011 | 18,114 |
Crawford Claims Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Crawford Claims Solutions | 5,443 | 1,396 | 3,811 |
Crawford TPA Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Crawford Claims Solutions | 6,527 | 3,259 | 5,947 |
Crawford Specialty Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Crawford Claims Solutions | $ 5,686 | $ 458 | $ 2,148 |
Segment and Geographic Inform_5
Segment and Geographic Information - Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 265,605 | $ 261,669 | $ 242,875 | $ 246,046 | $ 257,562 | $ 265,842 | $ 267,846 | $ 256,377 | $ 1,016,195 | $ 1,047,627 | $ 1,122,979 |
Service | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 982,492 | 1,005,802 | 1,070,971 | ||||||||
Reimbursements | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 33,703 | $ 41,825 | $ 52,008 |
Segment and Geographic Inform_6
Segment and Geographic Information - Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Unallocated corporate and shared costs and credits | $ (11,347) | $ (968) | $ (1,709) | $ (2,550) | $ (4,122) | $ (1,649) | $ 3,170 | $ (3,914) | $ (16,574) | $ (6,515) | ||
Net corporate interest expense | (7,923) | (10,774) | $ (10,109) | |||||||||
Goodwill and intangible asset impairments | (17,674) | (17,484) | (1,056) | |||||||||
Arbitration and claim settlements | (12,552) | |||||||||||
Restructuring and other costs, net | (9,760) | |||||||||||
Gain (loss) on disposition of businesses, net | [1] | $ 14,104 | $ (341) | 13,763 | ||||||||
(Loss) Income Before Income Taxes | 39,088 | 23,637 | 44,131 | |||||||||
Segment Reconciling Items | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Segment operating earnings | 88,404 | 84,124 | 97,781 | |||||||||
Unallocated corporate and shared costs and credits | (16,574) | (6,515) | (9,321) | |||||||||
Net corporate interest expense | (7,923) | (10,774) | (10,109) | |||||||||
Stock option expense | (1,122) | (1,885) | (1,742) | |||||||||
Amortization of acquisition-related intangible assets | (11,653) | (11,277) | (11,152) | |||||||||
Goodwill and intangible asset impairments | (17,674) | (17,484) | (1,056) | |||||||||
Arbitration and claim settlements | (12,552) | |||||||||||
Restructuring and other costs, net | (8,133) | |||||||||||
Gain (loss) on disposition of businesses, net | 13,763 | (20,270) | ||||||||||
(Loss) Income Before Income Taxes | $ 39,088 | $ 23,637 | $ 44,131 | |||||||||
[1] | The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments. |
Segment and Geographic Inform_7
Segment and Geographic Information - Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Assets | $ 752,984,000 | $ 760,013,000 | |||
ASSETS | |||||
Cash and cash equivalents | 44,656,000 | 51,802,000 | |||
Income taxes receivable | 1,269,000 | 7,820,000 | |||
Prepaid expenses and other current assets | 29,490,000 | 23,476,000 | |||
Net Property and Equipment | 36,402,000 | 31,425,000 | |||
Operating lease right-of-use asset, net | 109,315,000 | 102,354,000 | $ 122,300,000 | ||
Capitalized software costs, net | 71,021,000 | 66,445,000 | |||
Deferred income tax assets | 25,595,000 | 17,971,000 | |||
Other noncurrent assets | 70,935,000 | 70,884,000 | |||
TOTAL ASSETS | 752,984,000 | 760,013,000 | |||
Operating Segments | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Assets | [1] | 364,301,000 | 387,836,000 | $ 421,321,000 | |
ASSETS | |||||
TOTAL ASSETS | [1] | 364,301,000 | 387,836,000 | $ 421,321,000 | |
Corporate, Non-Segment | |||||
Segment Reporting Asset Reconciling Item [Line Items] | |||||
Assets | 388,683,000 | 372,177,000 | |||
ASSETS | |||||
Cash and cash equivalents | 44,656,000 | 51,802,000 | |||
Income taxes receivable | 1,269,000 | 7,820,000 | |||
Prepaid expenses and other current assets | 29,490,000 | 23,476,000 | |||
Net Property and Equipment | 36,402,000 | 31,425,000 | |||
Operating lease right-of-use asset, net | 109,315,000 | 102,354,000 | |||
Capitalized software costs, net | 71,021,000 | 66,445,000 | |||
Deferred income tax assets | 25,595,000 | 17,971,000 | |||
Other noncurrent assets | 70,935,000 | 70,884,000 | |||
TOTAL ASSETS | $ 388,683,000 | $ 372,177,000 | |||
[1] | Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. |
Segment and Geographic Inform_8
Segment and Geographic Information - Revenues and Long-lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | $ 265,605 | $ 261,669 | $ 242,875 | $ 246,046 | $ 257,562 | $ 265,842 | $ 267,846 | $ 256,377 | $ 1,016,195 | $ 1,047,627 | $ 1,122,979 |
Crawford TPA Solutions | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 982,492 | 1,005,802 | 1,070,971 | ||||||||
Long-lived assets | 216,738 | 200,224 | 216,738 | 200,224 | 106,513 | ||||||
U.S. | Crawford TPA Solutions | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 570,822 | 569,205 | 615,687 | ||||||||
Long-lived assets | 151,906 | 140,560 | 151,906 | 140,560 | 88,157 | ||||||
U.K. | Crawford TPA Solutions | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 128,545 | 126,337 | 131,651 | ||||||||
Long-lived assets | 20,290 | 20,749 | 20,290 | 20,749 | 7,631 | ||||||
Canada | Crawford TPA Solutions | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 89,163 | 114,438 | 121,076 | ||||||||
Long-lived assets | 14,404 | 17,999 | 14,404 | 17,999 | 7,553 | ||||||
International Countries_ Otherthan U K And Canada | Crawford TPA Solutions | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 193,962 | 195,822 | 202,557 | ||||||||
Long-lived assets | $ 30,138 | $ 20,916 | $ 30,138 | $ 20,916 | $ 3,172 |
Client Funds - Additional Infor
Client Funds - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Custodial | ||
Funds Heldfor Clients [Line Items] | ||
Funds held for clients | $ 537,531,000 | $ 410,673,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Dec. 31, 2020USD ($) |
Letter of credit subcommitment | |
Loss Contingencies [Line Items] | |
Letters of credit outstanding amount | $ 11,512,000 |
Restructuring and Other Costs -
Restructuring and Other Costs - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |||
Restructuring and other costs | $ 8,133,000 | $ 0 | $ 0 |
Restructuring and Other Costs_2
Restructuring and Other Costs - Restructuring and Related Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |||
Severance benefits | $ 9,350,000 | ||
Asset impairments and lease termination costs | 2,538,000 | ||
Gain on fair value remeasurement of cost and equity method investments | (1,099,000) | ||
Liquidation dividend from a cost method investment | (1,247,000) | ||
Gain on sale of internet protocol addresses | (1,409,000) | ||
Total restructuring and other costs, net | $ 8,133,000 | $ 0 | $ 0 |
Restructuring Costs - Schedule
Restructuring Costs - Schedule of Restructuring Reserve Liabilities by Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 814 | $ 2,265 | $ 9,413 |
Additions | 9,760 | ||
Adjustments to accruals | (925) | (1,301) | (2,187) |
Cash payments | (5,690) | (150) | (4,961) |
Ending balance | 3,959 | 814 | 2,265 |
Additions | 9,760 | ||
Deferred rent | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,302 | 2,846 | |
Adjustments to accruals | (1,302) | (1,544) | |
Ending balance | 1,302 | ||
Accrued Compensation and Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 342 | 477 | 4,782 |
Additions | 9,112 | ||
Adjustments to accruals | (453) | ||
Cash payments | (5,632) | (135) | (4,305) |
Ending balance | 3,369 | 342 | 477 |
Additions | 9,112 | ||
Other Accrued Liabilities | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 472 | 486 | 1,785 |
Additions | 648 | ||
Adjustments to accruals | (472) | 1 | (643) |
Cash payments | (58) | (15) | (656) |
Ending balance | 590 | $ 472 | $ 486 |
Additions | $ 648 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - HBA Group $ in Millions | Nov. 01, 2020USD ($) |
Subsequent Event [Line Items] | |
Date of acquisition | Nov. 1, 2020 |
Description of acquired entity | 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 cash payment of $4.1 million, net of working capital adjustment, and a maximum $3.2 million payable in cash over the next four years based on achieving certain revenue and EBITDA performance goals. |
Membership interest percentage | 100.00% |
Initial lump-sum payment of purchase price | $ 4.1 |
Maximum | |
Subsequent Event [Line Items] | |
Payment to acquire business | $ 3.2 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Financial Data (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||||||||||
Revenues from services: | ||||||||||||||||||||||
Revenues before reimbursements | $ 257,421,000 | $ 253,124,000 | $ 234,416,000 | $ 237,531,000 | $ 247,186,000 | $ 254,677,000 | $ 256,881,000 | $ 247,058,000 | $ 982,492,000 | $ 1,005,802,000 | ||||||||||||
Reimbursements | 8,184,000 | 8,545,000 | 8,459,000 | 8,515,000 | 10,376,000 | 11,165,000 | 10,965,000 | 9,319,000 | 33,703,000 | 41,825,000 | ||||||||||||
Total revenues | 265,605,000 | 261,669,000 | 242,875,000 | 246,046,000 | 257,562,000 | 265,842,000 | 267,846,000 | 256,377,000 | 1,016,195,000 | 1,047,627,000 | $ 1,122,979,000 | |||||||||||
Total costs of services | 193,538,000 | 185,606,000 | 172,057,000 | 186,119,000 | 187,660,000 | 192,014,000 | 185,892,000 | 187,207,000 | 737,320,000 | 752,773,000 | ||||||||||||
(Loss) Income before income taxes | 11,862,000 | 36,438,000 | 12,433,000 | (21,645,000) | (6,567,000) | 16,019,000 | 5,483,000 | 8,702,000 | 39,088,000 | 23,637,000 | ||||||||||||
Unallocated corporate and shared costs and credits | (11,347,000) | (968,000) | (1,709,000) | (2,550,000) | (4,122,000) | (1,649,000) | 3,170,000 | (3,914,000) | (16,574,000) | (6,515,000) | ||||||||||||
Impairment of goodwill | (17,674,000) | [1] | (17,484,000) | (17,674,000) | [1] | (17,484,000) | (1,056,000) | |||||||||||||||
Net corporate interest expense | (1,648,000) | (1,599,000) | (2,452,000) | (2,224,000) | (2,428,000) | (3,162,000) | (2,468,000) | (2,716,000) | (7,923,000) | (10,774,000) | ||||||||||||
Stock option expense | (89,000) | (457,000) | (286,000) | (290,000) | (537,000) | (450,000) | (413,000) | (485,000) | (1,122,000) | (1,885,000) | ||||||||||||
Amortization of customer-relationship intangible assets | (2,500,000) | (3,665,000) | (2,732,000) | (2,756,000) | (2,848,000) | (2,829,000) | (2,802,000) | (2,798,000) | (11,653,000) | (11,277,000) | ||||||||||||
Restructuring and other costs, net (4) | [1] | (2,419,000) | (5,714,000) | (8,133,000) | ||||||||||||||||||
Gain (loss) on disposition of businesses, net | [1] | 14,104,000 | (341,000) | 13,763,000 | ||||||||||||||||||
Income tax benefit (provision) | (2,459,000) | (11,729,000) | (6,311,000) | 8,486,000 | (2,991,000) | (5,328,000) | (2,859,000) | (2,933,000) | (12,013,000) | (14,111,000) | (18,542,000) | |||||||||||
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests | (3,000) | (312,000) | (224,000) | 1,760,000 | 2,246,000 | 355,000 | 18,000 | 340,000 | 1,221,000 | 2,959,000 | 389,000 | |||||||||||
Net (Loss) Income Attributable to Shareholders of Crawford & Company | 9,400,000 | 24,397,000 | 5,898,000 | (11,399,000) | (7,312,000) | 11,046,000 | 2,642,000 | 6,109,000 | 28,296,000 | 12,485,000 | $ 25,978,000 | |||||||||||
(Loss) Earnings Per Share - Diluted: | ||||||||||||||||||||||
Arbitration and claim settlements (4) | [1] | (1,200,000) | (11,352,000) | (12,552,000) | ||||||||||||||||||
Crawford Claims | ||||||||||||||||||||||
Revenues from services: | ||||||||||||||||||||||
Segment operating earnings | [2] | 8,046,000 | 7,219,000 | 2,789,000 | (3,679,000) | 3,572,000 | 2,661,000 | 1,710,000 | (313,000) | 14,375,000 | 7,630,000 | |||||||||||
Crawford T P A | ||||||||||||||||||||||
Revenues from services: | ||||||||||||||||||||||
Segment operating earnings | [2] | 7,606,000 | 4,414,000 | 3,171,000 | 6,285,000 | 6,067,000 | 9,347,000 | 5,026,000 | 6,733,000 | 21,476,000 | 27,173,000 | |||||||||||
Crawford Specialty | ||||||||||||||||||||||
Revenues from services: | ||||||||||||||||||||||
Segment operating earnings | [2] | $ 14,213,000 | $ 17,390,000 | $ 13,993,000 | $ 6,957,000 | $ 11,213,000 | $ 13,301,000 | $ 12,612,000 | $ 12,195,000 | $ 52,553,000 | $ 49,321,000 | |||||||||||
Class A Non-Voting | ||||||||||||||||||||||
(Loss) Earnings Per Share - Basic: | ||||||||||||||||||||||
(Loss) Earnings Per Share - Basic: | $ 0.18 | [3] | $ 0.46 | [3] | $ 0.11 | [3] | $ 0.21 | [3] | $ 0.13 | [3] | $ 0.22 | [3] | $ 0.06 | [3] | $ 0.12 | [3] | $ 0.54 | [3] | $ 0.27 | [3] | $ 0.51 | |
(Loss) Earnings Per Share - Diluted: | ||||||||||||||||||||||
(Loss) Earnings Per Share - Diluted: | 0.18 | [3] | 0.46 | [3] | 0.11 | [3] | 0.21 | [3] | 0.13 | [3] | 0.21 | [3] | 0.06 | [3] | 0.12 | [3] | 0.54 | [3] | 0.26 | [3] | 0.50 | |
Class B Voting | ||||||||||||||||||||||
(Loss) Earnings Per Share - Basic: | ||||||||||||||||||||||
(Loss) Earnings Per Share - Basic: | 0.18 | [3] | 0.46 | [3] | 0.11 | [3] | 0.23 | [3] | 0.15 | [3] | 0.19 | [3] | 0.04 | [3] | 0.10 | [3] | 0.52 | [3] | 0.19 | [3] | 0.43 | |
(Loss) Earnings Per Share - Diluted: | ||||||||||||||||||||||
(Loss) Earnings Per Share - Diluted: | $ 0.18 | [3] | $ 0.46 | [3] | $ 0.11 | [3] | $ 0.23 | [3] | $ 0.15 | [3] | $ 0.19 | [3] | $ 0.04 | [3] | $ 0.10 | [3] | $ 0.52 | [3] | $ 0.19 | [3] | $ 0.42 | |
[1] | The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments. | |||||||||||||||||||||
[2] | This is a segment financial measure representing segment earnings before certain unallocated corporate and shared costs and credits, goodwill and intangible asset impairment charges, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, restructuring and other costs, gain/loss on disposal of business, income taxes, and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests. See Note 13, "Segment and Geographic Information," in the consolidated financial statements contained in this Item 8. | |||||||||||||||||||||
[3] | Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data. |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Financial Data- Additional informattion (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Goodwill and intangible asset impairments | $ 17,674,000 | [1] | $ 17,484,000 | $ 17,674,000 | [1] | $ 17,484,000 | $ 1,056,000 | ||||||
Arbitration and claim settlements | [1] | $ 1,200,000 | $ 11,352,000 | $ 12,552,000 | |||||||||
Gain (loss) on disposition of businesses, net | [1] | $ 14,104,000 | $ (341,000) | 13,763,000 | |||||||||
Restructuring and other costs, net | [1] | $ 2,419,000 | $ 5,714,000 | $ 8,133,000 | |||||||||
[1] | The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments. |