Exhibit 99.2
CRAWFORD & COMPANY
Revised Reconciliation of Non-GAAP Results (UNAUDITED)
Following are the reconciliations of GAAP Revenue, Operating Earnings, Pretax Earnings, Net Income and Earnings Per Share to related non-GAAP Adjusted figures for the years and quarters of 2020 and 2019. Results are presented before acquisition-related amortization of intangible assets, goodwill impairment, restructuring costs and gain on disposition of businesses, arbitration and claim settlements and tax valuation allowances:
Three Months Ended March 31, 2020 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 237,531 |
| $ | 7,013 |
| $ | (21,465 | ) | $ | (11,399 | ) | $ | (0.21 | ) | $ | (0.23 | ) |
Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 2,756 |
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| 2,067 |
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| 0.04 |
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| 0.04 |
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Goodwill impairment |
| — |
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| — |
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| 17,674 |
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| 9,133 |
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| 0.18 |
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| 0.18 |
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Restructuring costs |
| — |
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| — |
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| 5,714 |
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| 3,263 |
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| 0.06 |
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| 0.06 |
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Non-GAAP Adjusted | $ | 237,531 |
| $ | 7,013 |
| $ | 4,679 |
| $ | 3,064 |
| $ | 0.07 |
| $ | 0.05 |
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Three Months Ended June 30, 2020 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 234,416 |
| $ | 18,244 |
| $ | 12,433 |
| $ | 5,898 |
| $ | 0.11 |
| $ | 0.11 |
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Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 2,732 |
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| 2,049 |
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| 0.04 |
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| 0.04 |
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Income tax impact of first quarter goodwill impairment |
| — |
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| — |
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| — |
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| 2,206 |
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| 0.04 |
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| 0.04 |
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Gain on disposition of businesses, net |
| — |
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| — |
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| 341 |
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| 265 |
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| — |
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| — |
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Non-GAAP Adjusted | $ | 234,416 |
| $ | 18,244 |
| $ | 15,506 |
| $ | 10,418 |
| $ | 0.19 |
| $ | 0.19 |
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Three Months Ended September 30, 2020 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 253,124 |
| $ | 28,055 |
| $ | 36,438 |
| $ | 24,397 |
| $ | 0.46 |
| $ | 0.46 |
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Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 3,665 |
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| 2,749 |
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| 0.05 |
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| 0.05 |
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Income tax impact of first quarter goodwill impairment |
| — |
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| — |
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| — |
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| 1,935 |
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| 0.04 |
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| 0.04 |
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Gain on disposition of businesses, net |
| — |
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| — |
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| (14,104 | ) |
| (11,072 | ) |
| (0.21 | ) |
| (0.21 | ) |
Non-GAAP Adjusted | $ | 253,124 |
| $ | 28,055 |
| $ | 25,999 |
| $ | 18,009 |
| $ | 0.34 |
| $ | 0.34 |
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Page 1 of 3
Three Months Ended December 31, 2020 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 257,421 |
| $ | 18,518 |
| $ | 11,862 |
| $ | 9,400 |
| $ | 0.18 |
| $ | 0.18 |
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Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 2,500 |
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| 1,875 |
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| 0.03 |
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| 0.03 |
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Income tax impact of first quarter goodwill impairment |
| — |
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| — |
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| — |
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| 935 |
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| 0.02 |
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| 0.02 |
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Restructuring and other costs, net |
| — |
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| — |
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| 2,419 |
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| 1,664 |
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| 0.03 |
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| 0.03 |
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Non-GAAP Adjusted | $ | 257,421 |
| $ | 18,518 |
| $ | 16,781 |
| $ | 13,874 |
| $ | 0.26 |
| $ | 0.26 |
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Year Ended December 31, 2020 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 982,492 |
| $ | 71,830 |
| $ | 39,088 |
| $ | 28,296 |
| $ | 0.54 |
| $ | 0.52 |
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Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 11,653 |
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| 8,740 |
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| 0.16 |
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| 0.16 |
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Goodwill impairment |
| — |
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| — |
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| 17,674 |
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| 14,209 |
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| 0.27 |
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| 0.27 |
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Restructuring costs |
| — |
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| — |
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| 8,133 |
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| 4,927 |
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| 0.09 |
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| 0.09 |
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Gain on disposition of businesses, net |
| — |
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| — |
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| (13,763 | ) |
| (10,807 | ) |
| (0.20 | ) |
| (0.20 | ) |
Non-GAAP Adjusted | $ | 982,492 |
| $ | 71,830 |
| $ | 62,785 |
| $ | 45,365 |
| $ | 0.86 |
| $ | 0.84 |
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Three Months Ended March 31, 2019 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 247,058 |
| $ | 14,701 |
| $ | 8,702 |
| $ | 6,109 |
| $ | 0.12 |
| $ | 0.10 |
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Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 2,798 |
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| 2,099 |
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| 0.04 |
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| 0.04 |
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Non-GAAP Adjusted | $ | 247,058 |
| $ | 14,701 |
| $ | 11,500 |
| $ | 8,208 |
| $ | 0.16 |
| $ | 0.14 |
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Three Months Ended June 30, 2019 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 256,881 |
| $ | 22,518 |
| $ | 5,483 |
| $ | 2,642 |
| $ | 0.06 |
| $ | 0.04 |
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Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 2,802 |
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| 2,102 |
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| 0.04 |
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| 0.04 |
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Arbitration and claim settlements |
| — |
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| — |
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| 11,352 |
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| 8,389 |
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| 0.15 |
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| 0.15 |
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Non-GAAP Adjusted | $ | 256,881 |
| $ | 22,518 |
| $ | 19,637 |
| $ | 13,133 |
| $ | 0.25 |
| $ | 0.23 |
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Page 2 of 3
Three Months Ended September 30, 2019 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 254,677 |
| $ | 23,660 |
| $ | 16,019 |
| $ | 11,046 |
| $ | 0.21 |
| $ | 0.19 |
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Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 2,829 |
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| 2,122 |
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| 0.04 |
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| 0.04 |
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Arbitration and claim settlements |
| — |
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| — |
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| 1,200 |
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| 887 |
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| 0.02 |
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| 0.02 |
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Non-GAAP Adjusted | $ | 254,677 |
| $ | 23,660 |
| $ | 20,048 |
| $ | 14,055 |
| $ | 0.27 |
| $ | 0.25 |
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Three Months Ended December 31, 2019 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 247,186 |
| $ | 16,730 |
| $ | (6,567 | ) | $ | (7,312 | ) | $ | (0.13 | ) | $ | (0.15 | ) |
Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 2,848 |
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| 2,136 |
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| 0.04 |
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| 0.04 |
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Goodwill impairment |
| — |
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| — |
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| 17,484 |
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| 13,057 |
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| 0.24 |
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| 0.24 |
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Tax valuation allowances |
| — |
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| — |
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| — |
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| 1,991 |
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| 0.04 |
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| 0.04 |
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Non-GAAP Adjusted | $ | 247,186 |
| $ | 16,730 |
| $ | 13,765 |
| $ | 9,872 |
| $ | 0.19 |
| $ | 0.17 |
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Year Ended December 31, 2019 |
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(in thousands) | Revenues |
| Non-GAAP Operating earnings(1) |
| Pretax earnings |
| Net income attributable to Crawford & Company |
| Diluted earnings per CRD-A share(2) |
| Diluted earnings per CRD-B share(2) |
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GAAP | $ | 1,005,802 |
| $ | 77,609 |
| $ | 23,637 |
| $ | 12,485 |
| $ | 0.26 |
| $ | 0.19 |
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Adjustments: |
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Amortization of intangible assets |
| — |
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| — |
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| 11,277 |
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| 8,459 |
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| 0.16 |
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| 0.15 |
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Goodwill impairment charge |
| — |
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| — |
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| 17,484 |
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| 13,057 |
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| 0.24 |
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| 0.24 |
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Arbitration and claim settlements |
| — |
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| — |
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| 12,552 |
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| 9,276 |
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| 0.17 |
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| 0.17 |
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Tax valuation allowances |
| — |
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| — |
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| — |
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| 1,991 |
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| 0.04 |
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| 0.04 |
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Non-GAAP Adjusted | $ | 1,005,802 |
| $ | 77,609 |
| $ | 64,950 |
| $ | 45,268 |
| $ | 0.87 |
| $ | 0.79 |
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| (1) | Reconciliations of Non-GAAP Operating earnings to Net income attributable to shareholders of Crawford & Company were performed for each quarterly and year end schedule in press releases at Exhibit 99.1 for each respective quarter. |
| (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. |
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