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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2019
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Georgia
(State or other jurisdiction of incorporation or organization)
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58-0506554
(I.R.S. Employer Identification Number)
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5335 Triangle Parkway, Peachtree Corners, Georgia
(Address of principal executive offices)
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30092
(Zip Code)
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Title of Each Class
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Trading Symbol(s)
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Name of Each Exchange on Which Registered
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Class A Common Stock — $1.00 Par Value
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CRD-A
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New York Stock Exchange
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Class B Common Stock — $1.00 Par Value
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CRD-B
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New York Stock Exchange
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Large accelerated filer o
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Accelerated filer x
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Non-accelerated filer o
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Smaller reporting company o
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Emerging growth company o
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•
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Crawford Claims Solutions provides claims management services globally to insurance carriers and self-insured entities related to property, casualty, and catastrophe losses.
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•
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Crawford TPA Solutions, which trades under the Broadspire brand globally, 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.
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•
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Crawford Specialty Solutions provides services to the global property and casualty insurance company markets through service lines known as Global Technical Services and Contractor Connection.
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•
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Property — losses caused by physical damage to commercial or residential real property and certain types of personal property
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•
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Catastrophe — losses caused by all types of natural disasters, such as fires, hailstorms, hurricanes, earthquakes and floods, and man-made disasters such as oil spills, chemical releases, and explosions
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•
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Public Liability — a wide range of non-automobile liability claims such as product liability; owners, landlords and tenants liabilities; and comprehensive general liability
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•
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Automobile — all types of losses involving use of an automobile, including bodily injury, physical damage, medical payments, collision, fire, theft, and comprehensive liability
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•
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Marine — losses relating to hull, machinery and cargo
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•
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The Claims Management service line includes workers' compensation, liability, property, accident & health, and disability claims management. Accident & health claims programs include accidental death and dismemberment, business travel, life, disability, critical illness and credit protection claims programs. Disability and leave management services include the handling of short and long term disability, FMLA (Federal Medical Leave Act), ADA (Americans with Disabilities Act) and state leave claims designed to increase employee productivity and contain costs. Claims management services includes risk management information and consultative analytical services.
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•
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The Medical Management service line integrates evidence-based criteria, clinical expertise, and advanced technology into the claims process to achieve optimal outcomes for employees in a cost-effective manner. Case managers provide administration services by proactively managing medical treatment for employees while facilitating an understanding of and participation in their rehabilitation process. These programs assist our client employees' recovery in a quick, cost-effective method. Medical bill review services provide analysis of medical charges for clients' claims to identify opportunities for savings. Physician review services include a diverse panel of specialized physician reviewers that evaluate the medical necessity of medical services as well as causal relation determination while also supporting timely return to work for employees.
|
•
|
Global Technical Services provides claims management services to insurance companies and self-insured entities related to large, complex losses with technical adjusting and industry experts servicing a broad range of industries, including commercial property, aviation, forensic accounting, marine and transportation, retail, building and construction, cyber and energy. Crawford Global Technical Services is a group of skilled adjusters with technical training and specialized expertise, such as in forensics, engineering, accounting, or chemistry, with relationships spanning the insurance industry and Fortune 1000 corporations.
|
•
|
Contractor Connection provides a managed repair service using the largest independently managed contractor network in the industry, with approximately 6,000 credentialed residential and commercial contractors. This innovative service provides a customer-centric solution for a wide range of loss types from high-frequency, low-complexity claims to large complex repairs, optimizing the time and work process needed to resolve property claims. Contractor Connection supports our business process outsourcing strategy by providing high-quality outsourced contractor management to national and regional personal and commercial insurance carriers as well as directly to consumer markets.
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•
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changes in the degree to which property and casualty insurance carriers or self-insured entities outsource, or intend to outsource, their claims handling functions are generally not disclosed in advance;
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•
|
we cannot predict the length or timing of any insurance cycle;
|
•
|
changes in the overall employment levels and associated workplace injury rates could impact the number of total claims and our claim volumes and are not subject to accurate forecasting;
|
•
|
the frequency and severity of weather-related, natural, and man-made disasters, which are a significant source of claims for us, are also generally not subject to accurate forecasting;
|
•
|
potential consolidation of clients in the markets we operate could impact the volume of claims referred to us;
|
•
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major insurance carriers, underwriters, and brokers could elect to expand their activities as administrators and adjusters, which would directly compete with our business; and
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•
|
we may not desire to or be able to renew existing major contracts with clients.
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Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(In thousands, except per share amounts and percentages)
|
||||||||||||||||||
Revenues before Reimbursements
|
$
|
1,005,802
|
|
|
$
|
1,070,971
|
|
|
$
|
1,105,832
|
|
|
$
|
1,109,286
|
|
|
$
|
1,170,385
|
|
Reimbursements
|
41,825
|
|
|
52,008
|
|
|
57,877
|
|
|
68,302
|
|
|
71,135
|
|
|||||
Total Revenues
|
1,047,627
|
|
|
1,122,979
|
|
|
1,163,709
|
|
|
1,177,588
|
|
|
1,241,520
|
|
|||||
Total Costs of Services
|
752,773
|
|
|
808,005
|
|
|
842,167
|
|
|
850,112
|
|
|
940,352
|
|
|||||
Crawford Claims Solutions Operating Earnings (1)
|
7,630
|
|
|
11,308
|
|
|
18,541
|
|
|
14,371
|
|
|
5,708
|
|
|||||
Crawford TPA Solutions Operating Earnings (1)
|
27,173
|
|
|
36,909
|
|
|
38,224
|
|
|
36,520
|
|
|
33,915
|
|
|||||
Crawford Specialty Solutions Operating Earnings (1)
|
49,321
|
|
|
49,564
|
|
|
52,404
|
|
|
65,641
|
|
|
49,956
|
|
|||||
Unallocated Corporate and Shared Costs and Credits, Net
|
(6,515
|
)
|
|
(9,321
|
)
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|
(13,463
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)
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|
(24,403
|
)
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|
(19,159
|
)
|
|||||
Net Corporate Interest Expense
|
(10,774
|
)
|
|
(10,109
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)
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|
(9,062
|
)
|
|
(9,185
|
)
|
|
(8,383
|
)
|
|||||
Stock Option Expense
|
(1,885
|
)
|
|
(1,742
|
)
|
|
(1,718
|
)
|
|
(621
|
)
|
|
(433
|
)
|
|||||
Amortization of Customer-Relationship Intangible Assets
|
(11,277
|
)
|
|
(11,152
|
)
|
|
(10,982
|
)
|
|
(9,592
|
)
|
|
(9,668
|
)
|
|||||
Goodwill and Intangible Asset Impairment Charges
|
(17,484
|
)
|
|
(1,056
|
)
|
|
(19,598
|
)
|
|
—
|
|
|
(49,314
|
)
|
|||||
Arbitration and Claim Settlements
|
(12,552
|
)
|
|
—
|
|
|
—
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|
|
—
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|
|
—
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|
|||||
Restructuring and Special Charges
|
—
|
|
|
—
|
|
|
(12,084
|
)
|
|
(9,490
|
)
|
|
(34,395
|
)
|
|||||
Loss on Disposition of Business Line
|
—
|
|
|
(20,270
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Income Taxes
|
(14,111
|
)
|
|
(18,542
|
)
|
|
(15,039
|
)
|
|
(25,565
|
)
|
|
(13,832
|
)
|
|||||
Net Loss (Income) Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests
|
2,959
|
|
|
389
|
|
|
442
|
|
|
(1,710
|
)
|
|
117
|
|
|||||
Net Income (Loss) Attributable to Shareholders of
Crawford & Company
|
$
|
12,485
|
|
|
$
|
25,978
|
|
|
$
|
27,665
|
|
|
$
|
35,966
|
|
|
$
|
(45,488
|
)
|
Earnings (Loss) Per Share - Basic (2):
|
|
|
|
|
|
|
|
|
|
||||||||||
CRD-A
|
$
|
0.27
|
|
|
$
|
0.51
|
|
|
$
|
0.53
|
|
|
$
|
0.68
|
|
|
$
|
(0.79
|
)
|
CRD-B
|
$
|
0.19
|
|
|
$
|
0.43
|
|
|
$
|
0.45
|
|
|
$
|
0.60
|
|
|
$
|
(0.87
|
)
|
Earnings (Loss) Per share - Diluted (2):
|
|
|
|
|
|
|
|
|
|
||||||||||
CRD-A
|
$
|
0.26
|
|
|
$
|
0.50
|
|
|
$
|
0.52
|
|
|
$
|
0.67
|
|
|
$
|
(0.79
|
)
|
CRD-B
|
$
|
0.19
|
|
|
$
|
0.42
|
|
|
$
|
0.45
|
|
|
$
|
0.60
|
|
|
$
|
(0.87
|
)
|
Current Assets
|
$
|
315,209
|
|
|
$
|
320,848
|
|
|
$
|
370,367
|
|
|
$
|
364,731
|
|
|
$
|
370,177
|
|
Total Assets
|
$
|
760,013
|
|
|
$
|
701,442
|
|
|
$
|
787,936
|
|
|
$
|
735,859
|
|
|
$
|
783,406
|
|
Current Liabilities
|
$
|
236,265
|
|
|
$
|
225,310
|
|
|
$
|
256,591
|
|
|
$
|
230,287
|
|
|
$
|
258,348
|
|
Long-Term Debt and Capital Leases, Less Current Installments
|
$
|
148,408
|
|
|
$
|
167,126
|
|
|
$
|
200,460
|
|
|
$
|
187,002
|
|
|
$
|
225,365
|
|
Total Debt
|
$
|
176,954
|
|
|
$
|
190,410
|
|
|
$
|
225,672
|
|
|
$
|
188,014
|
|
|
$
|
247,282
|
|
Shareholders' Investment Attributable to Shareholders of Crawford & Company
|
$
|
159,317
|
|
|
$
|
171,288
|
|
|
$
|
182,320
|
|
|
$
|
153,883
|
|
|
$
|
113,693
|
|
Total Capital
|
$
|
336,271
|
|
|
$
|
361,698
|
|
|
$
|
407,992
|
|
|
$
|
341,897
|
|
|
$
|
360,975
|
|
Current Ratio
|
1.3:1
|
|
|
1.4:1
|
|
|
1.4:1
|
|
|
1.6:1
|
|
|
1.4:1
|
|
|||||
Total Debt to Total Capital Ratio
|
52.6
|
%
|
|
52.6
|
%
|
|
55.3
|
%
|
|
55.0
|
%
|
|
68.5
|
%
|
|||||
Return on Average Shareholders' Investment
|
7.6
|
%
|
|
14.7
|
%
|
|
16.5
|
%
|
|
26.9
|
%
|
|
(31.7
|
)%
|
|||||
Cash Provided by Operating Activities
|
$
|
75,216
|
|
|
$
|
52,419
|
|
|
$
|
40,757
|
|
|
$
|
98,864
|
|
|
$
|
61,655
|
|
Cash (Used in) Provided by Investing Activities
|
$
|
(23,420
|
)
|
|
$
|
6,449
|
|
|
$
|
(81,866
|
)
|
|
$
|
(32,966
|
)
|
|
$
|
(101,178
|
)
|
Cash (Used in) Provided by Financing Activities
|
$
|
(53,406
|
)
|
|
$
|
(58,739
|
)
|
|
$
|
10,343
|
|
|
$
|
(55,151
|
)
|
|
$
|
67,889
|
|
Shareholders' Investment Attributable to Shareholders of Crawford & Company Per Diluted Share
|
$
|
2.95
|
|
|
$
|
3.07
|
|
|
$
|
3.21
|
|
|
$
|
2.74
|
|
|
$
|
2.06
|
|
Cash Dividends Per Share:
|
|
|
|
|
|
|
|
|
|
||||||||||
CRD-A
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
CRD-B
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
Weighted-Average Shares and Share-Equivalents:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
53,612
|
|
|
55,254
|
|
|
55,928
|
|
|
55,483
|
|
|
55,286
|
|
|||||
Diluted
|
54,065
|
|
|
55,883
|
|
|
56,764
|
|
|
56,220
|
|
|
55,286
|
|
(1)
|
This is a segment financial measure calculated in accordance with ASC Topic 280, "Segment Reporting," and representing 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 impairment charges, restructuring and special charges, 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.
|
(2)
|
The Company computes earnings (loss) per share of CRD-A and CRD-B using the two-class method, which allocates the undistributed earnings (loss) 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 (loss) per share for CRD-A and CRD-B.
|
|
Year Ended
|
|
|
Year Ended
|
|
|
||||||||||||||
|
|
|
|
|
|
Based on exchange rates for year ended December 31, 2018 and exclusion of Garden City Group from December 31, 2018
|
||||||||||||||
(in thousands, except percentages)
|
December 31,
2019 |
|
December 31,
2018 |
% Change
|
|
December 31,
2019 |
|
December 31,
2018 |
|
% Change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crawford Claims Solutions
|
$
|
339,837
|
|
|
$
|
361,053
|
|
(5.9
|
)%
|
|
$
|
350,533
|
|
|
$
|
361,053
|
|
|
(2.9
|
)%
|
Crawford TPA Solutions
|
393,856
|
|
|
405,335
|
|
(2.8
|
)%
|
|
397,563
|
|
|
405,335
|
|
|
(1.9
|
)%
|
||||
Crawford Specialty Solutions
|
272,109
|
|
|
304,583
|
|
(10.7
|
)%
|
|
279,298
|
|
|
274,708
|
|
|
1.7
|
%
|
||||
Total revenues before reimbursements
|
1,005,802
|
|
|
1,070,971
|
|
(6.1
|
)%
|
|
1,027,394
|
|
|
1,041,096
|
|
|
(1.3
|
)%
|
||||
Reimbursements
|
41,825
|
|
|
52,008
|
|
(19.6
|
)%
|
|
43,426
|
|
|
41,474
|
|
|
4.7
|
%
|
||||
Total Revenues
|
$
|
1,047,627
|
|
|
$
|
1,122,979
|
|
(6.7
|
)%
|
|
$
|
1,070,820
|
|
|
$
|
1,082,570
|
|
|
(1.1
|
)%
|
|
|
|
|
|
|
|
|
% Change from Prior Year
|
||||||||||
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
||||||||
|
(In thousands, except percentages)
|
|
|
|
|
|||||||||||||
Revenues Before Reimbursements:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
339,837
|
|
|
$
|
361,053
|
|
|
$
|
365,058
|
|
|
|
(5.9
|
)%
|
|
(1.1
|
)%
|
Crawford TPA Solutions
|
393,856
|
|
|
405,335
|
|
|
390,583
|
|
|
|
(2.8
|
)%
|
|
3.8
|
%
|
|||
Crawford Specialty Solutions
|
272,109
|
|
|
304,583
|
|
|
350,191
|
|
|
|
(10.7
|
)%
|
|
(13.0
|
)%
|
|||
Total, before reimbursements
|
1,005,802
|
|
|
1,070,971
|
|
|
1,105,832
|
|
|
|
(6.1
|
)%
|
|
(3.2
|
)%
|
|||
Reimbursements
|
41,825
|
|
|
52,008
|
|
|
57,877
|
|
|
|
(19.6
|
)%
|
|
(10.1
|
)%
|
|||
Total Revenues
|
$
|
1,047,627
|
|
|
$
|
1,122,979
|
|
|
$
|
1,163,709
|
|
|
|
(6.7
|
)%
|
|
(3.5
|
)%
|
Direct Compensation, Fringe Benefits & Non-Employee Labor:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
223,639
|
|
|
$
|
239,123
|
|
|
$
|
244,019
|
|
|
|
(6.5
|
)%
|
|
(2.0
|
)%
|
% of related revenues before reimbursements
|
65.8
|
%
|
|
66.2
|
%
|
|
66.8
|
%
|
|
|
|
|
|
|
||||
Crawford TPA Solutions
|
236,853
|
|
|
235,813
|
|
|
220,743
|
|
|
|
0.4
|
%
|
|
6.8
|
%
|
|||
% of related revenues before reimbursements
|
60.1
|
%
|
|
58.2
|
%
|
|
56.6
|
%
|
|
|
|
|
|
|
||||
Crawford Specialty Solutions
|
141,776
|
|
|
156,771
|
|
|
170,483
|
|
|
|
(9.6
|
)%
|
|
(8.0
|
)%
|
|||
% of related revenues before reimbursements
|
52.1
|
%
|
|
51.5
|
%
|
|
48.7
|
%
|
|
|
|
|
|
|
||||
Total
|
$
|
602,268
|
|
|
$
|
631,707
|
|
|
$
|
635,245
|
|
|
|
(4.7
|
)%
|
|
(0.6
|
)%
|
% of Revenues before reimbursements
|
59.9
|
%
|
|
59.0
|
%
|
|
57.4
|
%
|
|
|
|
|
|
|||||
Expenses Other than Direct Compensation, Fringe Benefits & Non-Employee Labor:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
108,568
|
|
|
$
|
110,622
|
|
|
$
|
102,498
|
|
|
|
(1.9
|
)%
|
|
7.9
|
%
|
% of related revenues before reimbursements
|
31.9
|
%
|
|
30.6
|
%
|
|
28.1
|
%
|
|
|
|
|
|
|
||||
Crawford TPA Solutions
|
129,830
|
|
|
132,613
|
|
|
131,616
|
|
|
|
(2.1
|
)%
|
|
0.8
|
%
|
|||
% of related revenues before reimbursements
|
33.0
|
%
|
|
32.7
|
%
|
|
33.7
|
%
|
|
|
|
|
|
|
||||
Crawford Specialty Solutions
|
81,012
|
|
|
98,248
|
|
|
127,304
|
|
|
|
(17.5
|
)%
|
|
(22.8
|
)%
|
|||
% of related revenues before reimbursements
|
29.8
|
%
|
|
32.3
|
%
|
|
36.4
|
%
|
|
|
|
|
|
|
||||
Total, before reimbursements
|
319,410
|
|
|
341,483
|
|
|
361,418
|
|
|
|
(6.5
|
)%
|
|
(5.5
|
)%
|
|||
% of Revenues before reimbursements
|
31.8
|
%
|
|
31.9
|
%
|
|
32.7
|
%
|
|
|
|
|
|
|
||||
Reimbursements
|
41,825
|
|
|
52,008
|
|
|
57,877
|
|
|
|
(19.6
|
)%
|
|
(10.1
|
)%
|
|||
Total
|
$
|
361,235
|
|
|
$
|
393,491
|
|
|
$
|
419,295
|
|
|
|
(8.2
|
)%
|
|
(6.2
|
)%
|
% of Revenues
|
34.5
|
%
|
|
35.0
|
%
|
|
36.0
|
%
|
|
|
|
|
|
|||||
Segment Operating Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
7,630
|
|
|
$
|
11,308
|
|
|
$
|
18,541
|
|
|
|
(32.5
|
)%
|
|
(39.0
|
)%
|
% of related revenues before reimbursements
|
2.2
|
%
|
|
3.1
|
%
|
|
5.1
|
%
|
|
|
|
|
|
|
||||
Crawford TPA Solutions
|
27,173
|
|
|
36,909
|
|
|
38,224
|
|
|
|
(26.4
|
)%
|
|
(3.4
|
)%
|
|||
% of related revenues before reimbursements
|
6.9
|
%
|
|
9.1
|
%
|
|
9.8
|
%
|
|
|
|
|
|
|
||||
Crawford Specialty Solutions
|
49,321
|
|
|
49,564
|
|
|
52,404
|
|
|
|
(0.5
|
)%
|
|
(5.4
|
)%
|
|||
% of related revenues before reimbursements
|
18.1
|
%
|
|
16.3
|
%
|
|
15.0
|
%
|
|
|
|
|
|
|
||||
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Unallocated corporate and shared costs and credits, net
|
(6,515
|
)
|
|
(9,321
|
)
|
|
(13,463
|
)
|
|
|
(30.1
|
)%
|
|
(30.8
|
)%
|
|||
Net corporate interest expense
|
(10,774
|
)
|
|
(10,109
|
)
|
|
(9,062
|
)
|
|
|
6.6
|
%
|
|
11.6
|
%
|
|||
Stock option expense
|
(1,885
|
)
|
|
(1,742
|
)
|
|
(1,718
|
)
|
|
|
8.2
|
%
|
|
1.4
|
%
|
|||
Amortization of customer-relationship intangible assets
|
(11,277
|
)
|
|
(11,152
|
)
|
|
(10,982
|
)
|
|
|
1.1
|
%
|
|
1.5
|
%
|
|||
Goodwill and intangible asset impairment charges
|
(17,484
|
)
|
|
(1,056
|
)
|
|
(19,598
|
)
|
|
|
nm
|
|
|
(94.6
|
)%
|
|||
Arbitration and claim settlements
|
(12,552
|
)
|
|
—
|
|
|
—
|
|
|
|
nm
|
|
|
nm
|
|
|||
Restructuring and special charges
|
—
|
|
|
—
|
|
|
(12,084
|
)
|
|
|
nm
|
|
|
nm
|
|
|||
Loss on disposition of business line
|
—
|
|
|
(20,270
|
)
|
|
—
|
|
|
|
nm
|
|
|
nm
|
|
|||
Income Before Income Taxes
|
23,637
|
|
|
44,131
|
|
|
42,262
|
|
|
|
(46.4
|
)%
|
|
4.4
|
%
|
|||
Income taxes
|
(14,111
|
)
|
|
(18,542
|
)
|
|
(15,039
|
)
|
|
|
(23.9
|
)%
|
|
23.3
|
%
|
|||
Net Income
|
9,526
|
|
|
25,589
|
|
|
27,223
|
|
|
|
(62.8
|
)%
|
|
(6.0
|
)%
|
|||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
|
2,959
|
|
|
389
|
|
|
442
|
|
|
|
660.7
|
%
|
|
(12.0
|
)%
|
|||
Net Income Attributable to Shareholders of Crawford & Company
|
$
|
12,485
|
|
|
$
|
25,978
|
|
|
$
|
27,665
|
|
|
|
(51.9
|
)%
|
|
(6.1
|
)%
|
|
|
|
|
|
|
% Change from Prior Year
|
||||||||||||
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
||||||||
|
(In thousands, except percentages)
|
|
|
|
|
|||||||||||||
Revenues Before Reimbursements:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
339,837
|
|
|
$
|
361,053
|
|
|
$
|
365,058
|
|
|
|
(5.9
|
)%
|
|
(1.1
|
)%
|
Crawford TPA Solutions
|
393,856
|
|
|
405,335
|
|
|
390,583
|
|
|
|
(2.8
|
)%
|
|
3.8
|
%
|
|||
Crawford Specialty Solutions
|
272,109
|
|
|
304,583
|
|
|
350,191
|
|
|
|
(10.7
|
)%
|
|
(13.0
|
)%
|
|||
Total, before reimbursements
|
1,005,802
|
|
|
1,070,971
|
|
|
1,105,832
|
|
|
|
(6.1
|
)%
|
|
(3.2
|
)%
|
|||
Direct Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
263,116
|
|
|
$
|
282,778
|
|
|
$
|
288,380
|
|
|
|
(7.0
|
)%
|
|
(1.9
|
)%
|
% of related revenues before reimbursements
|
77.4
|
%
|
|
78.3
|
%
|
|
79.0
|
%
|
|
|
|
|
|
|||||
Crawford TPA Solutions
|
294,172
|
|
|
296,111
|
|
|
284,529
|
|
|
|
(0.7
|
)%
|
|
4.1
|
%
|
|||
% of related revenues before reimbursements
|
74.7
|
%
|
|
73.1
|
%
|
|
72.8
|
%
|
|
|
|
|
|
|||||
Crawford Specialty Solutions
|
176,702
|
|
|
199,055
|
|
|
235,302
|
|
|
|
(11.2
|
)%
|
|
(15.4
|
)%
|
|||
% of related revenues before reimbursements
|
64.9
|
%
|
|
65.4
|
%
|
|
67.2
|
%
|
|
|
|
|
|
|||||
Total segment direct expenses
|
733,990
|
|
|
777,944
|
|
|
808,211
|
|
|
|
(5.7
|
)%
|
|
(3.7
|
)%
|
|||
% of related revenues before reimbursements
|
73.0
|
%
|
|
72.6
|
%
|
|
73.1
|
%
|
|
|
|
|
|
|
|
|||
Segment Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
76,721
|
|
|
$
|
78,275
|
|
|
$
|
76,678
|
|
|
|
(2.0
|
)%
|
|
2.1
|
%
|
% of related revenues before reimbursements
|
22.6
|
%
|
|
21.7
|
%
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|||
Crawford TPA Solutions
|
99,684
|
|
|
109,224
|
|
|
106,054
|
|
|
|
(8.7
|
)%
|
|
3.0
|
%
|
|||
% of related revenues before reimbursements
|
25.3
|
%
|
|
26.9
|
%
|
|
27.2
|
%
|
|
|
|
|
|
|
|
|||
Crawford Specialty Solutions
|
95,407
|
|
|
105,528
|
|
|
114,889
|
|
|
|
(9.6
|
)%
|
|
(8.1
|
)%
|
|||
% of related revenues before reimbursements
|
35.1
|
%
|
|
34.6
|
%
|
|
32.8
|
%
|
|
|
|
|
|
|
|
|||
Total segment gross profit
|
271,812
|
|
|
293,027
|
|
|
297,621
|
|
|
|
(7.2
|
)%
|
|
(1.5
|
)%
|
|||
% of related revenues before reimbursements
|
27.0
|
%
|
|
27.4
|
%
|
|
26.9
|
%
|
|
|
|
|
|
|
|
|||
Segment Indirect Costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Crawford Claims Solutions
|
$
|
69,091
|
|
|
$
|
66,967
|
|
|
$
|
58,137
|
|
|
|
3.2
|
%
|
|
15.2
|
%
|
% of related revenues before reimbursements
|
20.3
|
%
|
|
18.5
|
%
|
|
15.9
|
%
|
|
|
|
|
|
|||||
Crawford TPA Solutions
|
72,511
|
|
|
72,315
|
|
|
67,830
|
|
|
|
0.3
|
%
|
|
6.6
|
%
|
|||
% of related revenues before reimbursements
|
18.4
|
%
|
|
17.8
|
%
|
|
17.4
|
%
|
|
|
|
|
|
|||||
Crawford Specialty Solutions
|
46,086
|
|
|
55,964
|
|
|
62,485
|
|
|
|
(17.7
|
)%
|
|
(10.4
|
)%
|
|||
% of related revenues before reimbursements
|
16.9
|
%
|
|
18.4
|
%
|
|
17.8
|
%
|
|
|
|
|
|
|||||
Total segment indirect costs
|
187,688
|
|
|
195,246
|
|
|
188,452
|
|
|
|
(3.9
|
)%
|
|
3.6
|
%
|
|||
% of related revenues before reimbursements
|
18.7
|
%
|
|
18.2
|
%
|
|
17.0
|
%
|
|
|
|
|
|
|||||
Segment Operating Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Crawford Claims Solutions
|
$
|
7,630
|
|
|
$
|
11,308
|
|
|
$
|
18,541
|
|
|
|
(32.5
|
)%
|
|
(39.0
|
)%
|
% of related revenues before reimbursements
|
2.2
|
%
|
|
3.1
|
%
|
|
5.1
|
%
|
|
|
|
|
|
|||||
Crawford TPA Solutions
|
27,173
|
|
|
36,909
|
|
|
38,224
|
|
|
|
(26.4
|
)%
|
|
(3.4
|
)%
|
|||
% of related revenues before reimbursements
|
6.9
|
%
|
|
9.1
|
%
|
|
9.8
|
%
|
|
|
|
|
|
|||||
Crawford Specialty Solutions
|
49,321
|
|
|
49,564
|
|
|
52,404
|
|
|
|
(0.5
|
)%
|
|
(5.4
|
)%
|
|||
% of related revenues before reimbursements
|
18.1
|
%
|
|
16.3
|
%
|
|
15.0
|
%
|
|
|
|
|
|
|
In thousands (except percentages)
|
||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for December 31, 2018
|
||||||||||||||
Year Ended December 31,
|
2019
|
|
2018
|
|
Variance
|
|
2019
|
|
Variance
|
||||||||
U.S.
|
$
|
136,524
|
|
|
$
|
150,777
|
|
|
(9.5
|
)%
|
|
$
|
136,524
|
|
|
(9.5
|
)%
|
U.K.
|
63,715
|
|
|
64,940
|
|
|
(1.9
|
)%
|
|
67,196
|
|
|
3.5
|
%
|
|||
Canada
|
47,712
|
|
|
50,224
|
|
|
(5.0
|
)%
|
|
48,908
|
|
|
(2.6
|
)%
|
|||
Australia
|
45,417
|
|
|
44,666
|
|
|
1.7
|
%
|
|
48,857
|
|
|
9.4
|
%
|
|||
Europe
|
28,915
|
|
|
30,971
|
|
|
(6.6
|
)%
|
|
30,846
|
|
|
(0.4
|
)%
|
|||
Rest of World
|
17,554
|
|
|
19,475
|
|
|
(9.9
|
)%
|
|
18,202
|
|
|
(6.5
|
)%
|
|||
Total Crawford Claims Solutions Revenues before Reimbursements
|
$
|
339,837
|
|
|
$
|
361,053
|
|
|
(5.9
|
)%
|
|
$
|
350,533
|
|
|
(2.9
|
)%
|
Year Ended December 31,
|
2019
|
|
2018
|
|
Variance
|
|||
U.S.
|
283,007
|
|
|
312,245
|
|
|
(9.4
|
)%
|
U.K.
|
54,845
|
|
|
58,377
|
|
|
(6.1
|
)%
|
Canada
|
36,050
|
|
|
42,064
|
|
|
(14.3
|
)%
|
Australia
|
36,556
|
|
|
33,083
|
|
|
10.5
|
%
|
Europe
|
37,326
|
|
|
45,390
|
|
|
(17.8
|
)%
|
Rest of World
|
17,873
|
|
|
20,277
|
|
|
(11.9
|
)%
|
Total Crawford Claims Solutions Cases Received
|
465,657
|
|
|
511,436
|
|
|
(9.0
|
)%
|
|
In thousands (except percentages)
|
||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for December 31, 2018
|
||||||||||||||
Year Ended December 31,
|
2019
|
|
2018
|
|
Variance
|
|
2019
|
|
Variance
|
||||||||
U.S.
|
$
|
315,241
|
|
|
$
|
321,744
|
|
|
(2.0
|
)%
|
|
$
|
315,241
|
|
|
(2.0
|
)%
|
U.K.
|
11,254
|
|
|
12,651
|
|
|
(11.0
|
)%
|
|
11,875
|
|
|
(6.1
|
)%
|
|||
Canada
|
33,234
|
|
|
36,648
|
|
|
(9.3
|
)%
|
|
34,062
|
|
|
(7.1
|
)%
|
|||
Europe and Rest of World
|
34,127
|
|
|
34,292
|
|
|
(0.5
|
)%
|
|
36,385
|
|
|
6.1
|
%
|
|||
Total Crawford TPA Solutions Revenues before Reimbursements
|
$
|
393,856
|
|
|
$
|
405,335
|
|
|
(2.8
|
)%
|
|
$
|
397,563
|
|
|
(1.9
|
)%
|
Year Ended December 31,
|
2019
|
|
2018
|
|
Variance
|
|||
U.S.
|
489,951
|
|
|
491,837
|
|
|
(0.4
|
)%
|
U.K.
|
41,364
|
|
|
45,678
|
|
|
(9.4
|
)%
|
Canada
|
73,314
|
|
|
95,082
|
|
|
(22.9
|
)%
|
Europe and Rest of World
|
208,057
|
|
|
202,112
|
|
|
2.9
|
%
|
Total Crawford TPA Solutions Cases Received
|
812,686
|
|
|
834,709
|
|
|
(2.6
|
)%
|
|
In thousands (except percentages)
|
||||||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for December 31, 2018 and exclusion of Garden City Group from December 31, 2018
|
||||||||||||||||||
Year Ended December 31,
|
2019
|
|
2018
|
|
Variance
|
|
2019
|
|
2018
|
|
Variance
|
||||||||||
U.S.
|
$
|
117,440
|
|
|
$
|
143,166
|
|
|
(18.0
|
)%
|
|
$
|
117,440
|
|
|
$
|
114,339
|
|
|
2.7
|
%
|
U.K.
|
51,368
|
|
|
54,060
|
|
|
(5.0
|
)%
|
|
54,579
|
|
|
54,060
|
|
|
1.0
|
%
|
||||
Canada
|
33,492
|
|
|
34,204
|
|
|
(2.1
|
)%
|
|
34,332
|
|
|
33,156
|
|
|
3.5
|
%
|
||||
Australia
|
23,065
|
|
|
24,661
|
|
|
(6.5
|
)%
|
|
24,832
|
|
|
24,661
|
|
|
0.7
|
%
|
||||
Europe
|
20,550
|
|
|
21,722
|
|
|
(5.4
|
)%
|
|
21,389
|
|
|
21,722
|
|
|
(1.5
|
)%
|
||||
Rest of World
|
26,194
|
|
|
26,770
|
|
|
(2.2
|
)%
|
|
26,726
|
|
|
26,770
|
|
|
(0.2
|
)%
|
||||
Total Crawford Specialty Solutions Revenues before Reimbursements
|
$
|
272,109
|
|
|
$
|
304,583
|
|
|
(10.7
|
)%
|
|
$
|
279,298
|
|
|
$
|
274,708
|
|
|
1.7
|
%
|
Year Ended December 31,
|
2019
|
|
2018
|
|
Variance
|
|||
U.S.
|
207,237
|
|
|
224,137
|
|
|
(7.5
|
)%
|
U.K.
|
13,622
|
|
|
17,723
|
|
|
(23.1
|
)%
|
Canada
|
65,544
|
|
|
70,161
|
|
|
(6.6
|
)%
|
Australia
|
5,332
|
|
|
6,839
|
|
|
(22.0
|
)%
|
Europe
|
8,874
|
|
|
11,005
|
|
|
(19.4
|
)%
|
Rest of World
|
20,824
|
|
|
21,564
|
|
|
(3.4
|
)%
|
Total Crawford Specialty Solutions Cases Received
|
321,433
|
|
|
351,429
|
|
|
(8.5
|
)%
|
|
In thousands (except percentages)
|
||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for December 31, 2017
|
||||||||||||||
Year Ended December 31,
|
2018
|
|
2017
|
|
Variance
|
|
2018
|
|
Variance
|
||||||||
U.S.
|
$
|
150,777
|
|
|
$
|
166,325
|
|
|
(9.3
|
)%
|
|
$
|
150,777
|
|
|
(9.3
|
)%
|
U.K.
|
64,940
|
|
|
59,297
|
|
|
9.5
|
%
|
|
62,736
|
|
|
5.8
|
%
|
|||
Canada
|
50,224
|
|
|
46,039
|
|
|
9.1
|
%
|
|
50,581
|
|
|
9.9
|
%
|
|||
Australia
|
44,666
|
|
|
47,136
|
|
|
(5.2
|
)%
|
|
45,348
|
|
|
(3.8
|
)%
|
|||
Europe
|
30,971
|
|
|
27,076
|
|
|
14.4
|
%
|
|
29,071
|
|
|
7.4
|
%
|
|||
Rest of World
|
19,475
|
|
|
19,185
|
|
|
1.5
|
%
|
|
19,283
|
|
|
0.5
|
%
|
|||
Total Crawford Claims Solutions Revenues before Reimbursements
|
$
|
361,053
|
|
|
$
|
365,058
|
|
|
(1.1
|
)%
|
|
$
|
357,796
|
|
|
(2.0
|
)%
|
Year Ended December 31,
|
2018
|
|
2017
|
|
Variance
|
|||
U.S.
|
312,245
|
|
|
314,356
|
|
|
(0.7
|
)%
|
U.K.
|
58,377
|
|
|
54,037
|
|
|
8.0
|
%
|
Canada
|
42,064
|
|
|
34,172
|
|
|
23.1
|
%
|
Australia
|
33,083
|
|
|
43,276
|
|
|
(23.6
|
)%
|
Europe
|
45,390
|
|
|
55,570
|
|
|
(18.3
|
)%
|
Rest of World
|
20,277
|
|
|
26,487
|
|
|
(23.4
|
)%
|
Total Crawford Claims Solutions Cases Received
|
511,436
|
|
|
527,898
|
|
|
(3.1
|
)%
|
|
In thousands (except percentages)
|
||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for December 31, 2017
|
||||||||||||||
Year Ended December 31,
|
2018
|
|
2017
|
|
Variance
|
|
2018
|
|
Variance
|
||||||||
U.S.
|
$
|
321,744
|
|
|
$
|
310,102
|
|
|
3.8
|
%
|
|
$
|
321,744
|
|
|
3.8
|
%
|
U.K.
|
12,651
|
|
|
13,165
|
|
|
(3.9
|
)%
|
|
12,211
|
|
|
(7.2
|
)%
|
|||
Canada
|
36,648
|
|
|
33,386
|
|
|
9.8
|
%
|
|
36,937
|
|
|
10.6
|
%
|
|||
Europe and Rest of World
|
34,292
|
|
|
33,930
|
|
|
1.1
|
%
|
|
32,257
|
|
|
(4.9
|
)%
|
|||
Total Crawford TPA Solutions Revenues before Reimbursements
|
$
|
405,335
|
|
|
$
|
390,583
|
|
|
3.8
|
%
|
|
$
|
403,149
|
|
|
3.2
|
%
|
Year Ended December 31,
|
2018
|
|
2017
|
|
Variance
|
|||
U.S.
|
491,837
|
|
|
498,815
|
|
|
(1.4
|
)%
|
U.K.
|
45,678
|
|
|
45,497
|
|
|
0.4
|
%
|
Canada
|
95,082
|
|
|
80,637
|
|
|
17.9
|
%
|
Europe and Rest of World
|
202,112
|
|
|
202,340
|
|
|
(0.1
|
)%
|
Total Crawford TPA Solutions Cases Received
|
834,709
|
|
|
827,289
|
|
|
0.9
|
%
|
|
In thousands (except percentages)
|
||||||||||||||||
|
Based on actual exchange rates
|
|
Based on exchange rates for December 31, 2017
|
||||||||||||||
Year Ended December 31,
|
2018
|
|
2017
|
|
Variance
|
|
2018
|
|
Variance
|
||||||||
|
(In thousands)
|
|
|
|
|
|
|
||||||||||
U.S.
|
$
|
143,166
|
|
|
$
|
177,266
|
|
|
(19.2
|
)%
|
|
$
|
143,166
|
|
|
(19.2
|
)%
|
U.K.
|
54,060
|
|
|
66,876
|
|
|
(19.2
|
)%
|
|
52,506
|
|
|
(21.5
|
)%
|
|||
Canada
|
34,204
|
|
|
31,537
|
|
|
8.5
|
%
|
|
34,468
|
|
|
9.3
|
%
|
|||
Australia
|
24,661
|
|
|
26,484
|
|
|
(6.9
|
)%
|
|
25,044
|
|
|
(5.4
|
)%
|
|||
Europe
|
21,722
|
|
|
21,171
|
|
|
2.6
|
%
|
|
20,146
|
|
|
(4.8
|
)%
|
|||
Rest of World
|
26,770
|
|
|
26,857
|
|
|
(0.3
|
)%
|
|
26,954
|
|
|
0.4
|
%
|
|||
Total Crawford Specialty Solutions Revenues before Reimbursements
|
$
|
304,583
|
|
|
$
|
350,191
|
|
|
(13.0
|
)%
|
|
$
|
302,284
|
|
|
(13.7
|
)%
|
Year Ended December 31,
|
2018
|
|
2017
|
|
Variance
|
|||
U.S.
|
224,137
|
|
|
220,767
|
|
|
1.5
|
%
|
U.K.
|
17,723
|
|
|
15,215
|
|
|
16.5
|
%
|
Canada
|
70,161
|
|
|
58,419
|
|
|
20.1
|
%
|
Australia
|
6,839
|
|
|
7,775
|
|
|
(12.0
|
)%
|
Europe
|
11,005
|
|
|
10,396
|
|
|
5.9
|
%
|
Rest of World
|
21,564
|
|
|
20,485
|
|
|
5.3
|
%
|
Total Crawford Specialty Solutions Cases Received
|
351,429
|
|
|
333,057
|
|
|
5.5
|
%
|
|
Payments Due by Period
|
||||||||||||||||||
|
One Year or Less
|
|
1 to 3
Years
|
|
3 to 5
Years
|
|
After 5 Years
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Operating lease commitments (Note 6)
|
$
|
35,595
|
|
|
$
|
47,802
|
|
|
$
|
21,859
|
|
|
$
|
33,043
|
|
|
$
|
138,299
|
|
Long-term debt, including current portions (Note 5) (1)
|
28,531
|
|
|
148,346
|
|
|
—
|
|
|
—
|
|
|
176,877
|
|
|||||
Finance lease obligations (Note 5) (1)
|
15
|
|
|
35
|
|
|
27
|
|
|
—
|
|
|
77
|
|
|||||
Total, before interest payments
|
64,141
|
|
|
196,183
|
|
|
21,886
|
|
|
33,043
|
|
|
315,253
|
|
|||||
Estimated interest payments under Credit Facility
|
11,091
|
|
|
21,020
|
|
|
—
|
|
|
—
|
|
|
32,111
|
|
|||||
Total contractual obligations
|
$
|
75,232
|
|
|
$
|
217,203
|
|
|
$
|
21,886
|
|
|
$
|
33,043
|
|
|
$
|
347,364
|
|
Year Ending December 31,
|
Estimated U.S. Pension Funding
|
||
|
(In thousands)
|
||
2020
|
$
|
9,000
|
|
2021
|
9,000
|
|
|
2022
|
9,000
|
|
|
2023
|
9,000
|
|
|
2024
|
9,000
|
|
|
Amount of Commitment Expiration per Period
|
||||||||||||||||||
|
One Year or Less
|
|
1 to 3 Years
|
|
3 to 5 Years
|
|
After 5 Years
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Standby Letters of Credit
|
$
|
11,636
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,636
|
|
•
|
Accounts receivable decreased by $2.9 million, or $5.9 million excluding foreign currency exchange impacts, in 2019 compared with 2018. The decrease was primarily due to decreased receivables within Crawford Claims Solutions.
|
•
|
Unbilled revenues decreased $5.3 million, excluding foreign currency exchange impacts. The decrease was primarily due to improved management of receivables in Crawford Claims Solutions and Crawford TPA Solutions.
|
•
|
Accounts Payable and Accrued Liabilities decreased $6.9 million, excluding foreign currency exchange impacts. The decrease was due to higher payments for accrued compensation, incentive compensation and accounts payable in 2019.
|
•
|
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, and 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.
|
•
|
the duration of our pension plan liabilities, which drives the investment strategy we can employ with our pension plan assets;
|
•
|
the types of investment classes in which we invest our pension plan assets and the expected return we can reasonably expect those investment classes to earn over time; and
|
•
|
the investment returns we can reasonably expect our investment management program to achieve in excess of the returns we could expect if investments were made strictly in indexed funds.
|
Year Ended December 31,
|
|
|
2019
|
|
2018
|
||||||||
(in thousands, except percentages)
|
|
|
USD equivalent
|
% of total
|
|
USD equivalent
|
% of total
|
||||||
U.S.
|
USD
|
|
$
|
569,205
|
|
56.6
|
%
|
|
$
|
615,687
|
|
57.5
|
%
|
U.K.
|
GBP
|
|
126,337
|
|
12.6
|
%
|
|
131,651
|
|
12.3
|
%
|
||
Canada
|
CAD
|
|
114,438
|
|
11.4
|
%
|
|
121,076
|
|
11.3
|
%
|
||
Australia
|
AUD
|
|
70,569
|
|
7.0
|
%
|
|
70,830
|
|
6.6
|
%
|
||
Europe
|
EUR
|
|
54,136
|
|
5.4
|
%
|
|
56,048
|
|
5.2
|
%
|
||
Rest of World
|
|
|
71,117
|
|
7.1
|
%
|
|
75,679
|
|
7.1
|
%
|
||
Total Revenues, before reimbursements
|
|
$
|
1,005,802
|
|
|
|
$
|
1,070,971
|
|
|
|
Page
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
||||||
Revenues from Services:
|
|
|
|
|
|
||||||
Revenues before reimbursements
|
$
|
1,005,802
|
|
|
$
|
1,070,971
|
|
|
$
|
1,105,832
|
|
Reimbursements
|
41,825
|
|
|
52,008
|
|
|
57,877
|
|
|||
Total Revenues
|
1,047,627
|
|
|
1,122,979
|
|
|
1,163,709
|
|
|||
Costs and Expenses:
|
|
|
|
|
|
||||||
Costs of services provided, before reimbursements
|
710,948
|
|
|
755,997
|
|
|
784,290
|
|
|||
Reimbursements
|
41,825
|
|
|
52,008
|
|
|
57,877
|
|
|||
Total costs of services
|
752,773
|
|
|
808,005
|
|
|
842,167
|
|
|||
Selling, general, and administrative expenses
|
227,170
|
|
|
242,421
|
|
|
239,840
|
|
|||
Corporate interest expense, net of interest income of $745, $1,290, and $847, respectively
|
10,774
|
|
|
10,109
|
|
|
9,062
|
|
|||
Goodwill and intangible asset impairment charges
|
17,484
|
|
|
1,056
|
|
|
19,598
|
|
|||
Arbitration and claim settlements
|
12,552
|
|
|
—
|
|
|
—
|
|
|||
Restructuring and special charges
|
—
|
|
|
—
|
|
|
12,084
|
|
|||
Loss on disposition of business line
|
—
|
|
|
20,270
|
|
|
—
|
|
|||
Total Costs and Expenses
|
1,020,753
|
|
|
1,081,861
|
|
|
1,122,751
|
|
|||
Other (Loss) Income
|
(3,237
|
)
|
|
3,013
|
|
|
1,304
|
|
|||
Income Before Income Taxes
|
23,637
|
|
|
44,131
|
|
|
42,262
|
|
|||
Provision for Income Taxes
|
14,111
|
|
|
18,542
|
|
|
15,039
|
|
|||
Net Income
|
9,526
|
|
|
25,589
|
|
|
27,223
|
|
|||
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests
|
2,959
|
|
|
389
|
|
|
442
|
|
|||
Net Income Attributable to Shareholders of Crawford & Company
|
$
|
12,485
|
|
|
$
|
25,978
|
|
|
$
|
27,665
|
|
|
|
|
|
|
|
||||||
Earnings Per Share - Basic:
|
|
|
|
|
|
||||||
Class A Common Stock
|
$
|
0.27
|
|
|
$
|
0.51
|
|
|
$
|
0.53
|
|
Class B Common Stock
|
$
|
0.19
|
|
|
$
|
0.43
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
||||||
Earnings Per Share - Diluted:
|
|
|
|
|
|
||||||
Class A Common Stock
|
$
|
0.26
|
|
|
$
|
0.50
|
|
|
$
|
0.52
|
|
Class B Common Stock
|
$
|
0.19
|
|
|
$
|
0.42
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
||||||
Weighted-Average Shares Used to Compute Basic Earnings Per Share:
|
|
|
|
|
|
||||||
Class A Common Stock
|
30,637
|
|
|
30,805
|
|
|
31,322
|
|
|||
Class B Common Stock
|
22,975
|
|
|
24,449
|
|
|
24,606
|
|
|||
|
|
|
|
|
|
||||||
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:
|
|
|
|
|
|
||||||
Class A Common Stock
|
31,090
|
|
|
31,434
|
|
|
32,158
|
|
|||
Class B Common Stock
|
22,975
|
|
|
24,449
|
|
|
24,606
|
|
|||
|
|
|
|
|
|
||||||
Cash Dividends Per Share:
|
|
|
|
|
|
||||||
Class A Common Stock
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
Class B Common Stock
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
||||||
Net Income
|
$
|
9,526
|
|
|
$
|
25,589
|
|
|
$
|
27,223
|
|
|
|
|
|
|
|
||||||
Other Comprehensive Income (Loss):
|
|
|
|
|
|
||||||
Net foreign currency translation (loss) gain, net of tax benefit of $0, $0 and $0, respectively
|
(180
|
)
|
|
(10,830
|
)
|
|
6,323
|
|
|||
Amounts reclassified into net income for defined benefit pension plans, net of tax provision of $2,682, $2,686 and $3,432, respectively
|
8,002
|
|
|
8,076
|
|
|
7,501
|
|
|||
Net unrealized gain (loss) on defined benefit plans arising during the year, net of tax (provision) benefit of ($649), $5,333, and $236, respectively
|
1,036
|
|
|
(18,014
|
)
|
|
666
|
|
|||
|
|
|
|
|
|
||||||
Other Comprehensive Income (Loss)
|
8,858
|
|
|
(20,768
|
)
|
|
14,490
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive Income
|
18,384
|
|
|
4,821
|
|
|
41,713
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests
|
3,641
|
|
|
1,187
|
|
|
1,248
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive Income Attributable to Shareholders of Crawford & Company
|
$
|
22,025
|
|
|
$
|
6,008
|
|
|
$
|
42,961
|
|
December 31,
|
2019
|
|
2018
|
||||
|
|
|
|
||||
ASSETS
|
|||||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
51,802
|
|
|
$
|
53,119
|
|
Accounts receivable, less allowance for doubtful accounts of $9,348 and $9,625, respectively
|
128,217
|
|
|
131,117
|
|
||
Unbilled revenues, at estimated billable amounts
|
103,894
|
|
|
108,291
|
|
||
Income taxes receivable
|
7,820
|
|
|
4,084
|
|
||
Prepaid expenses and other current assets
|
23,476
|
|
|
24,237
|
|
||
Total Current Assets
|
315,209
|
|
|
320,848
|
|
||
Net Property and Equipment
|
31,425
|
|
|
34,303
|
|
||
Other Assets:
|
|
|
|
||||
Operating lease right-of-use asset, net
|
102,354
|
|
|
—
|
|
||
Goodwill
|
80,642
|
|
|
96,890
|
|
||
Intangible assets arising from business acquisitions, net
|
75,083
|
|
|
85,023
|
|
||
Capitalized software costs, net
|
66,445
|
|
|
72,210
|
|
||
Deferred income tax assets
|
17,971
|
|
|
22,146
|
|
||
Other noncurrent assets
|
70,884
|
|
|
70,022
|
|
||
Total Other Assets
|
413,379
|
|
|
346,291
|
|
||
TOTAL ASSETS
|
$
|
760,013
|
|
|
$
|
701,442
|
|
December 31,
|
2019
|
|
2018
|
||||
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' INVESTMENT
|
|||||||
Current Liabilities:
|
|
|
|
||||
Short-term borrowings
|
$
|
28,531
|
|
|
$
|
23,195
|
|
Accounts payable
|
34,377
|
|
|
37,834
|
|
||
Accrued compensation and related costs
|
68,499
|
|
|
66,530
|
|
||
Self-insured risks
|
11,311
|
|
|
15,246
|
|
||
Income taxes payable
|
3,030
|
|
|
3,145
|
|
||
Deferred rent
|
—
|
|
|
15,919
|
|
||
Operating lease liability
|
30,765
|
|
|
—
|
|
||
Other accrued liabilities
|
31,449
|
|
|
32,391
|
|
||
Deferred revenues
|
28,288
|
|
|
30,961
|
|
||
Current installments of finance leases
|
15
|
|
|
89
|
|
||
Total Current Liabilities
|
236,265
|
|
|
225,310
|
|
||
Noncurrent Liabilities:
|
|
|
|
||||
Long-term debt and finance leases, less current installments
|
148,408
|
|
|
167,126
|
|
||
Deferred revenues
|
24,080
|
|
|
21,713
|
|
||
Accrued pension liabilities
|
65,909
|
|
|
74,323
|
|
||
Operating lease liability
|
87,064
|
|
|
—
|
|
||
Other noncurrent liabilities
|
33,410
|
|
|
32,024
|
|
||
Total Noncurrent Liabilities
|
358,871
|
|
|
295,186
|
|
||
Redeemable Noncontrolling Interests
|
2,310
|
|
|
5,500
|
|
||
Shareholders' Investment:
|
|
|
|
||||
Class A common stock, $1.00 par value, 50,000 shares authorized; 30,610 and 30,927 shares issued and outstanding, respectively
|
30,610
|
|
|
30,927
|
|
||
Class B common stock, $1.00 par value, 50,000 shares authorized; 22,671 and 24,408 shares issued and outstanding, respectively
|
22,671
|
|
|
24,408
|
|
||
Additional paid-in capital
|
63,392
|
|
|
58,793
|
|
||
Retained earnings
|
249,551
|
|
|
273,607
|
|
||
Accumulated other comprehensive loss
|
(206,907
|
)
|
|
(216,447
|
)
|
||
Shareholders' Investment Attributable to Shareholders of Crawford & Company
|
159,317
|
|
|
171,288
|
|
||
Noncontrolling interests
|
3,250
|
|
|
4,158
|
|
||
Total Shareholders' Investment
|
162,567
|
|
|
175,446
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT
|
$
|
760,013
|
|
|
$
|
701,442
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
9,526
|
|
|
$
|
25,589
|
|
|
$
|
27,223
|
|
Reconciliation of net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
40,513
|
|
|
44,079
|
|
|
41,658
|
|
|||
Goodwill and intangible asset impairment charges
|
17,484
|
|
|
1,056
|
|
|
19,598
|
|
|||
Deferred income taxes
|
3,040
|
|
|
7,947
|
|
|
(2,358
|
)
|
|||
Loss on disposition of business line
|
—
|
|
|
20,270
|
|
|
—
|
|
|||
Stock-based compensation costs
|
4,109
|
|
|
6,196
|
|
|
6,661
|
|
|||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
5,922
|
|
|
7,844
|
|
|
(14,844
|
)
|
|||
Unbilled revenues, net
|
5,302
|
|
|
(18,588
|
)
|
|
(2,644
|
)
|
|||
Accrued or prepaid income taxes
|
(5,985
|
)
|
|
2,270
|
|
|
(508
|
)
|
|||
Accounts payable and accrued liabilities
|
(6,946
|
)
|
|
(8,952
|
)
|
|
(14,678
|
)
|
|||
Deferred revenues
|
(281
|
)
|
|
(4,969
|
)
|
|
(3,482
|
)
|
|||
Accrued retirement costs
|
3,387
|
|
|
(25,896
|
)
|
|
(15,364
|
)
|
|||
Prepaid expenses and other operating activities
|
(855
|
)
|
|
(4,427
|
)
|
|
(505
|
)
|
|||
Net cash provided by operating activities
|
75,216
|
|
|
52,419
|
|
|
40,757
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
||||||
Acquisitions of property and equipment
|
(8,688
|
)
|
|
(14,052
|
)
|
|
(19,044
|
)
|
|||
Capitalization of computer software costs
|
(12,436
|
)
|
|
(15,968
|
)
|
|
(25,867
|
)
|
|||
Cash proceeds from disposition of business line
|
—
|
|
|
39,187
|
|
|
—
|
|
|||
Payments for business acquisitions, net of cash acquired
|
(2,296
|
)
|
|
(2,500
|
)
|
|
(36,029
|
)
|
|||
Other investing activities
|
—
|
|
|
(218
|
)
|
|
(926
|
)
|
|||
Net cash (used in) provided by investing activities
|
(23,420
|
)
|
|
6,449
|
|
|
(81,866
|
)
|
|||
Cash Flows from Financing Activities:
|
|
|
|
|
|
||||||
Cash dividends paid
|
(13,171
|
)
|
|
(13,528
|
)
|
|
(13,700
|
)
|
|||
Payments related to shares received for withholding taxes under stock-based compensation plans
|
(827
|
)
|
|
(1,110
|
)
|
|
(1,933
|
)
|
|||
Proceeds from shares purchased under employee stock-based compensation plans
|
2,104
|
|
|
1,387
|
|
|
1,154
|
|
|||
Repurchases of common stock
|
(26,210
|
)
|
|
(10,409
|
)
|
|
(7,422
|
)
|
|||
Increases in short-term and revolving credit facility borrowings
|
66,197
|
|
|
101,428
|
|
|
94,407
|
|
|||
Payments on short-term and revolving credit facility borrowings
|
(80,948
|
)
|
|
(135,433
|
)
|
|
(58,490
|
)
|
|||
Payments on finance lease obligations
|
(93
|
)
|
|
(477
|
)
|
|
(1,233
|
)
|
|||
Capitalized loan costs
|
—
|
|
|
(23
|
)
|
|
(1,926
|
)
|
|||
Dividends paid to noncontrolling interests
|
(458
|
)
|
|
(574
|
)
|
|
(514
|
)
|
|||
Net cash (used in) provided by financing activities
|
(53,406
|
)
|
|
(58,739
|
)
|
|
10,343
|
|
|||
Effects of exchange rate changes on cash and cash equivalents
|
293
|
|
|
(1,021
|
)
|
|
3,208
|
|
|||
Decrease in Cash and Cash Equivalents
|
(1,317
|
)
|
|
(892
|
)
|
|
(27,558
|
)
|
|||
Cash and Cash Equivalents at Beginning of Year
|
53,119
|
|
|
54,011
|
|
|
81,569
|
|
|||
Cash and Cash Equivalents at End of Year
|
$
|
51,802
|
|
|
$
|
53,119
|
|
|
$
|
54,011
|
|
|
Common Stock
|
|
Additional Paid-In Capital
|
|
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
Shareholders' Investment Attributable to
|
|
|
|
Total Shareholders' Investment
|
||||||||||||||||||
|
Class A Non-Voting
|
|
Class B Voting
|
|
|
Retained Earnings
|
|
|
Shareholders of
Crawford &
Company
|
|
Noncontrolling Interests
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2016
|
$
|
31,296
|
|
|
$
|
24,690
|
|
|
$
|
48,108
|
|
|
$
|
261,562
|
|
|
$
|
(211,773
|
)
|
|
$
|
153,883
|
|
|
$
|
5,381
|
|
|
$
|
159,264
|
|
Net income (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
27,665
|
|
|
—
|
|
|
27,665
|
|
|
526
|
|
|
28,191
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,296
|
|
|
15,296
|
|
|
(806
|
)
|
|
14,490
|
|
||||||||
Cash dividends paid (Class A - $0.28 per share, Class B - $0.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,700
|
)
|
|
—
|
|
|
(13,700
|
)
|
|
—
|
|
|
(13,700
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
6,661
|
|
|
—
|
|
|
—
|
|
|
6,661
|
|
|
—
|
|
|
6,661
|
|
||||||||
Repurchases of common stock
|
(701
|
)
|
|
(188
|
)
|
|
—
|
|
|
(6,533
|
)
|
|
—
|
|
|
(7,422
|
)
|
|
—
|
|
|
(7,422
|
)
|
||||||||
Shares issued in connection with stock-based compensation plans, net
|
844
|
|
|
—
|
|
|
(1,623
|
)
|
|
692
|
|
|
—
|
|
|
(87
|
)
|
|
—
|
|
|
(87
|
)
|
||||||||
Increase in value of noncontrolling interest due to acquisition
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
57
|
|
|
81
|
|
||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(514
|
)
|
|
(514
|
)
|
||||||||
Balance at December 31, 2017
|
31,439
|
|
|
24,502
|
|
|
53,170
|
|
|
269,686
|
|
|
(196,477
|
)
|
|
182,320
|
|
|
4,644
|
|
|
186,964
|
|
||||||||
Net income (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
25,978
|
|
|
—
|
|
|
25,978
|
|
|
886
|
|
|
26,864
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,970
|
)
|
|
(19,970
|
)
|
|
(798
|
)
|
|
(20,768
|
)
|
||||||||
Cash dividends paid (Class A - $0.28 per share, Class B - $0.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,528
|
)
|
|
—
|
|
|
(13,528
|
)
|
|
—
|
|
|
(13,528
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
6,196
|
|
|
—
|
|
|
—
|
|
|
6,196
|
|
|
—
|
|
|
6,196
|
|
||||||||
Repurchases of common stock
|
(1,144
|
)
|
|
(94
|
)
|
|
—
|
|
|
(9,171
|
)
|
|
—
|
|
|
(10,409
|
)
|
|
—
|
|
|
(10,409
|
)
|
||||||||
Shares issued in connection with stock-based compensation plans, net
|
632
|
|
|
—
|
|
|
(355
|
)
|
|
642
|
|
|
—
|
|
|
919
|
|
|
—
|
|
|
919
|
|
||||||||
Decrease in value of noncontrolling interest due to acquisition
|
—
|
|
|
—
|
|
|
(218
|
)
|
|
—
|
|
|
—
|
|
|
(218
|
)
|
|
—
|
|
|
(218
|
)
|
||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(574
|
)
|
|
(574
|
)
|
||||||||
Balance at December 31, 2018
|
30,927
|
|
|
24,408
|
|
|
58,793
|
|
|
273,607
|
|
|
(216,447
|
)
|
|
171,288
|
|
|
4,158
|
|
|
175,446
|
|
||||||||
Net income (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
12,485
|
|
|
—
|
|
|
12,485
|
|
|
232
|
|
|
12,717
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,540
|
|
|
9,540
|
|
|
(682
|
)
|
|
8,858
|
|
||||||||
Cash dividends paid (Class A - $0.28 per share, Class B - $0.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,171
|
)
|
|
—
|
|
|
(13,171
|
)
|
|
—
|
|
|
(13,171
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
4,109
|
|
|
—
|
|
|
—
|
|
|
4,109
|
|
|
—
|
|
|
4,109
|
|
||||||||
Repurchases of common stock
|
(1,103
|
)
|
|
(1,737
|
)
|
|
—
|
|
|
(23,370
|
)
|
|
—
|
|
|
(26,210
|
)
|
|
—
|
|
|
(26,210
|
)
|
||||||||
Shares issued in connection with stock-based compensation plans, net
|
786
|
|
|
—
|
|
|
490
|
|
|
—
|
|
|
—
|
|
|
1,276
|
|
|
—
|
|
|
1,276
|
|
||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(458
|
)
|
|
(458
|
)
|
||||||||
Balance at December 31, 2019
|
$
|
30,610
|
|
|
$
|
22,671
|
|
|
$
|
63,392
|
|
|
$
|
249,551
|
|
|
$
|
(206,907
|
)
|
|
$
|
159,317
|
|
|
$
|
3,250
|
|
|
$
|
162,567
|
|
1.
|
Significant Accounting and Reporting Policies
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Allowance for doubtful accounts, January 1
|
$
|
9,625
|
|
|
$
|
12,588
|
|
|
$
|
14,499
|
|
Add/ (Deduct):
|
|
|
|
|
|
||||||
Provision for bad debt expense
|
1,588
|
|
|
2,709
|
|
|
1,554
|
|
|||
Write-offs, net of recoveries
|
(81
|
)
|
|
(3,695
|
)
|
|
(4,045
|
)
|
|||
Currency translation and other changes
|
(1,784
|
)
|
|
(365
|
)
|
|
580
|
|
|||
Adjustments for business dispositions
|
—
|
|
|
(1,612
|
)
|
|
—
|
|
|||
Allowance for doubtful accounts, December 31
|
$
|
9,348
|
|
|
$
|
9,625
|
|
|
$
|
12,588
|
|
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
|
|
December 31,
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Land
|
$
|
331
|
|
|
$
|
316
|
|
Buildings and improvements
|
28,840
|
|
|
28,957
|
|
||
Furniture and fixtures
|
29,898
|
|
|
33,401
|
|
||
Data processing equipment
|
57,574
|
|
|
53,790
|
|
||
Automobiles
|
236
|
|
|
227
|
|
||
Total property and equipment
|
116,879
|
|
|
116,691
|
|
||
Less accumulated depreciation
|
(85,454
|
)
|
|
(82,388
|
)
|
||
Net property and equipment
|
$
|
31,425
|
|
|
$
|
34,303
|
|
2.
|
Revenue Recognition
|
|
|
Year Ended December 31, 2019
|
|
Year Ended December 31, 2018
|
||||||||||||||||||||
(in thousands)
|
|
Claims Management Services
|
|
Medical Management Services
|
|
Total
|
|
Claims Management Services
|
|
Medical Management Services
|
|
Total
|
||||||||||||
U.S.
|
|
$
|
144,985
|
|
|
$
|
170,256
|
|
|
$
|
315,241
|
|
|
$
|
150,379
|
|
|
$
|
171,365
|
|
|
$
|
321,744
|
|
U.K.
|
|
11,254
|
|
|
—
|
|
|
11,254
|
|
|
12,651
|
|
|
—
|
|
|
12,651
|
|
||||||
Canada
|
|
33,234
|
|
|
—
|
|
|
33,234
|
|
|
36,648
|
|
|
—
|
|
|
36,648
|
|
||||||
Europe and Rest of World
|
|
34,127
|
|
|
—
|
|
|
34,127
|
|
|
34,292
|
|
|
—
|
|
|
34,292
|
|
||||||
Total Crawford TPA Solutions Revenues before Reimbursements
|
|
$
|
223,600
|
|
|
$
|
170,256
|
|
|
$
|
393,856
|
|
|
$
|
233,970
|
|
|
$
|
171,365
|
|
|
$
|
405,335
|
|
|
|
Year Ended December 31, 2019
|
|
Year Ended December 31, 2018
|
||||||||||||||||||||||||
(in thousands)
|
|
Global Technical Services
|
|
Contractor Connection
|
|
Total
|
|
Global Technical Services
|
|
Contractor Connection
|
|
Garden City Group
|
|
Total
|
||||||||||||||
U.S.
|
|
$
|
40,526
|
|
|
$
|
76,914
|
|
|
$
|
117,440
|
|
|
$
|
40,452
|
|
|
$
|
73,887
|
|
|
$
|
28,827
|
|
|
$
|
143,166
|
|
U.K.
|
|
45,803
|
|
|
5,565
|
|
|
51,368
|
|
|
45,927
|
|
|
8,133
|
|
|
—
|
|
|
54,060
|
|
|||||||
Canada
|
|
25,981
|
|
|
7,511
|
|
|
33,492
|
|
|
25,065
|
|
|
8,091
|
|
|
1,048
|
|
|
34,204
|
|
|||||||
Australia
|
|
22,273
|
|
|
792
|
|
|
23,065
|
|
|
23,491
|
|
|
1,170
|
|
|
—
|
|
|
24,661
|
|
|||||||
Europe
|
|
20,540
|
|
|
10
|
|
|
20,550
|
|
|
21,718
|
|
|
4
|
|
|
—
|
|
|
21,722
|
|
|||||||
Rest of World
|
|
26,194
|
|
|
—
|
|
|
26,194
|
|
|
26,770
|
|
|
—
|
|
|
—
|
|
|
26,770
|
|
|||||||
Total Crawford Specialty Solutions Revenues before Reimbursements
|
|
$
|
181,317
|
|
|
$
|
90,792
|
|
|
$
|
272,109
|
|
|
$
|
183,423
|
|
|
$
|
91,285
|
|
|
$
|
29,875
|
|
|
$
|
304,583
|
|
(In Thousands)
|
|
||
Customer Contract Liabilities:
|
Deferred Revenue
|
||
Balance at January 1, 2019
|
$
|
52,674
|
|
Annual additions
|
78,151
|
|
|
Revenue recognized from prior periods
|
(34,436
|
)
|
|
Revenue recognized from current year additions
|
(44,021
|
)
|
|
Balance as of December 31, 2019
|
$
|
52,368
|
|
3.
|
Acquisitions and Disposition of Business Line
|
4.
|
Goodwill and Intangible Assets
|
|
Crawford Claims Solutions
|
|
Crawford TPA Solutions
|
|
Crawford Specialty Solutions
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Balance at December 31, 2017:
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
55,994
|
|
|
$
|
168,968
|
|
|
$
|
92,566
|
|
|
$
|
317,528
|
|
Accumulated impairment losses
|
(20,407
|
)
|
|
(159,424
|
)
|
|
(40,781
|
)
|
|
(220,612
|
)
|
||||
Net goodwill
|
35,587
|
|
|
9,544
|
|
|
51,785
|
|
|
96,916
|
|
||||
2018 Activity:
|
|
|
|
|
|
|
|
||||||||
Goodwill of acquired business
|
—
|
|
|
—
|
|
|
1,296
|
|
|
1,296
|
|
||||
Goodwill of disposed business
|
—
|
|
|
—
|
|
|
(19,598
|
)
|
|
(19,598
|
)
|
||||
Accumulated impairment losses of disposed business
|
—
|
|
|
—
|
|
|
19,598
|
|
|
19,598
|
|
||||
Foreign currency effects
|
(441
|
)
|
|
(238
|
)
|
|
(643
|
)
|
|
(1,322
|
)
|
||||
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
|
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
Weighted-Average Amortization Period
|
||||||
|
(In thousands, except 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
|
December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|||
Customer relationships
|
$
|
126,061
|
|
|
$
|
(83,275
|
)
|
|
$
|
42,786
|
|
|
4.8 years
|
Technology-based
|
16,562
|
|
|
(8,104
|
)
|
|
8,458
|
|
|
7.9 years
|
|||
Trade name
|
1,580
|
|
|
(1,580
|
)
|
|
—
|
|
|
0.0 years
|
|||
Other
|
5,475
|
|
|
(2,517
|
)
|
|
2,958
|
|
|
2.2 years
|
|||
Total
|
$
|
149,678
|
|
|
$
|
(95,476
|
)
|
|
$
|
54,202
|
|
|
4.7 years
|
|
Annual Amortization Expense
|
||
Year Ending December 31,
|
(In thousands)
|
||
2020
|
$
|
10,866
|
|
2021
|
9,758
|
|
|
2022
|
4,022
|
|
|
2023
|
3,936
|
|
|
2024
|
3,488
|
|
|
Gross Carrying Amount
|
|
Accumulated Impairments
|
|
Net Carrying Value
|
||||||
|
(In thousands)
|
||||||||||
December 31, 2019:
|
|
|
|
|
|
||||||
Trade names
|
$
|
32,502
|
|
|
$
|
(1,656
|
)
|
|
$
|
30,846
|
|
December 31, 2018:
|
|
|
|
|
|
||||||
Trade names
|
$
|
32,477
|
|
|
$
|
(1,656
|
)
|
|
$
|
30,821
|
|
December 31,
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Credit Facility
|
$
|
176,877
|
|
|
$
|
190,316
|
|
Finance lease obligations
|
77
|
|
|
94
|
|
||
Total long-term debt and finance leases
|
176,954
|
|
|
190,410
|
|
||
Less: portion of Credit Facility classified as short-term
|
(28,531
|
)
|
|
(23,195
|
)
|
||
Less: current installments of finance leases
|
(15
|
)
|
|
(89
|
)
|
||
Total long-term debt and finance leases, less current installments
|
$
|
148,408
|
|
|
$
|
167,126
|
|
|
Long-term Debt
|
|
Finance Lease Obligations
|
|
Total
|
||||||
Year Ending December 31,
|
(In thousands)
|
||||||||||
2020
|
$
|
28,531
|
|
|
$
|
15
|
|
|
$
|
28,546
|
|
2021
|
—
|
|
|
18
|
|
|
18
|
|
|||
2022
|
148,346
|
|
|
17
|
|
|
148,363
|
|
|||
2023
|
—
|
|
|
17
|
|
|
17
|
|
|||
2024
|
—
|
|
|
10
|
|
|
10
|
|
|||
Total
|
$
|
176,877
|
|
|
$
|
77
|
|
|
$
|
176,954
|
|
(in thousands)
|
Classification on Balance Sheet
|
December 31, 2019
|
||
Assets:
|
|
|
||
Operating lease
|
Operating lease right-of-use assets, net
|
$
|
102,354
|
|
Liabilities:
|
|
|
||
Current operating lease liabilities
|
Current operating lease liabilities
|
30,765
|
|
|
Noncurrent operating lease liabilities
|
Noncurrent operating lease liabilities
|
87,064
|
|
|
Total operating lease liabilities
|
|
$
|
117,829
|
|
|
|
|
||
Weighted-Average Remaining Lease Term
|
|
5.72 years
|
|
|
Weighted-Average Discount Rate (1)
|
|
5.4
|
%
|
|
|
Year Ended
|
||
(in thousands)
|
|
December 31, 2019
|
||
Operating lease cost
|
|
$
|
37,824
|
|
Variable lease cost
|
|
7,948
|
|
|
Sublease income
|
|
4,163
|
|
|
|
Year Ended
|
||
(in thousands)
|
|
December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows for operating leases
|
|
$
|
38,906
|
|
|
|
|
||
Right-of-use assets obtained in exchange for lease obligations (1)
|
|
$
|
30,056
|
|
(in thousands)
|
December 31, 2019
|
||
2020
|
$
|
35,595
|
|
2021
|
29,877
|
|
|
2022
|
17,925
|
|
|
2023
|
12,512
|
|
|
2024
|
9,347
|
|
|
Thereafter
|
33,043
|
|
|
Total undiscounted lease payments
|
138,299
|
|
|
Less imputed interest
|
(20,470
|
)
|
|
Present value of future lease payments
|
$
|
117,829
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
U.S.
|
$
|
(1,472
|
)
|
|
$
|
4,634
|
|
|
$
|
12,303
|
|
Foreign
|
25,109
|
|
|
39,497
|
|
|
29,959
|
|
|||
Income before income taxes
|
$
|
23,637
|
|
|
$
|
44,131
|
|
|
$
|
42,262
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Current:
|
|
|
|
|
|
||||||
U.S. federal and state
|
$
|
1,546
|
|
|
$
|
1,065
|
|
|
$
|
9,077
|
|
Foreign
|
9,525
|
|
|
9,530
|
|
|
8,320
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
U.S. federal and state
|
1,643
|
|
|
4,051
|
|
|
389
|
|
|||
Foreign
|
1,397
|
|
|
3,896
|
|
|
(2,747
|
)
|
|||
Provision for income taxes
|
$
|
14,111
|
|
|
$
|
18,542
|
|
|
$
|
15,039
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Federal income taxes at statutory rate
|
$
|
4,964
|
|
|
$
|
9,267
|
|
|
$
|
14,792
|
|
State income taxes, net of federal benefit
|
505
|
|
|
2,685
|
|
|
1,349
|
|
|||
Goodwill impairment
|
1,883
|
|
|
—
|
|
|
428
|
|
|||
Foreign taxes
|
2,276
|
|
|
2,150
|
|
|
(3,226
|
)
|
|||
Change in valuation allowance
|
3,919
|
|
|
9,540
|
|
|
2,913
|
|
|||
Research and development credits
|
(626
|
)
|
|
(273
|
)
|
|
(448
|
)
|
|||
Foreign tax credits
|
(283
|
)
|
|
(429
|
)
|
|
(2,002
|
)
|
|||
Nondeductible meals and entertainment
|
724
|
|
|
782
|
|
|
1,222
|
|
|||
US tax reform - revaluation of deferred taxes
|
—
|
|
|
102
|
|
|
(3,756
|
)
|
|||
US tax reform - transition tax, net of credits
|
—
|
|
|
(3,496
|
)
|
|
7,550
|
|
|||
Income tax planning
|
—
|
|
|
(1,792
|
)
|
|
—
|
|
|||
Benefit of international restructuring
|
—
|
|
|
—
|
|
|
(2,989
|
)
|
|||
Global intangible low-tax income, net of credits
|
892
|
|
|
454
|
|
|
—
|
|
|||
Foreign-derived intangible income deduction
|
(315
|
)
|
|
(323
|
)
|
|
—
|
|
|||
Tax rate changes
|
486
|
|
|
(392
|
)
|
|
(212
|
)
|
|||
Other
|
(314
|
)
|
|
267
|
|
|
(582
|
)
|
|||
Provision for income taxes
|
$
|
14,111
|
|
|
$
|
18,542
|
|
|
$
|
15,039
|
|
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Accounts receivable allowance
|
$
|
1,163
|
|
|
$
|
1,534
|
|
Accrued compensation
|
9,553
|
|
|
10,184
|
|
||
Accrued pension liabilities
|
9,116
|
|
|
13,496
|
|
||
Self-insured risks
|
4,301
|
|
|
4,933
|
|
||
Deferred revenues
|
4,249
|
|
|
5,868
|
|
||
Accrued rent
|
—
|
|
|
3,115
|
|
||
Interest
|
5,399
|
|
|
5,665
|
|
||
Tax credit carryforwards
|
11,634
|
|
|
14,404
|
|
||
Loss carryforwards
|
25,523
|
|
|
25,745
|
|
||
Lease liability
|
29,785
|
|
|
—
|
|
||
Other
|
3,436
|
|
|
1,152
|
|
||
Gross deferred income tax assets
|
104,159
|
|
|
86,096
|
|
||
Unbilled revenues
|
6,522
|
|
|
7,725
|
|
||
Depreciation and amortization
|
28,025
|
|
|
32,510
|
|
||
Lease right-of-use asset
|
25,865
|
|
|
—
|
|
||
Gross deferred income tax liabilities
|
60,412
|
|
|
40,235
|
|
||
Net deferred income tax assets before valuation allowance
|
43,747
|
|
|
45,861
|
|
||
Valuation allowance
|
(28,128
|
)
|
|
(25,864
|
)
|
||
Net deferred income tax assets
|
$
|
15,619
|
|
|
$
|
19,997
|
|
Amounts recognized in the Consolidated Balance Sheets consist of:
|
|
|
|
|
|
||
Long-term deferred income tax assets included in "Deferred income tax assets"
|
17,971
|
|
|
22,146
|
|
||
Long-term deferred income tax liabilities included in "Other noncurrent liabilities"
|
(2,352
|
)
|
|
(2,149
|
)
|
||
Net deferred income tax assets
|
$
|
15,619
|
|
|
$
|
19,997
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of year
|
$
|
25,864
|
|
|
$
|
18,829
|
|
|
$
|
14,498
|
|
Other changes
|
2,264
|
|
|
7,035
|
|
|
4,331
|
|
|||
Balance, end of year
|
$
|
28,128
|
|
|
$
|
25,864
|
|
|
$
|
18,829
|
|
December 31,
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Projected benefit obligations
|
$
|
486,305
|
|
|
$
|
459,706
|
|
Fair value of plans' assets
|
417,074
|
|
|
382,181
|
|
December 31,
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Projected benefit obligations
|
$
|
261,953
|
|
|
$
|
234,776
|
|
Fair value of plans' assets
|
296,943
|
|
|
267,508
|
|
Year Ended December 31,
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Projected Benefit Obligations:
|
|
|
|
||||
Beginning of measurement period
|
$
|
694,482
|
|
|
$
|
764,740
|
|
Service cost
|
1,278
|
|
|
1,395
|
|
||
Interest cost
|
22,408
|
|
|
20,933
|
|
||
Employee contributions
|
45
|
|
|
59
|
|
||
Actuarial loss (gain)
|
77,549
|
|
|
(24,277
|
)
|
||
Plan settlements
|
—
|
|
|
(1,014
|
)
|
||
Plan amendments
|
—
|
|
|
1,542
|
|
||
Benefits paid
|
(50,415
|
)
|
|
(58,592
|
)
|
||
Foreign currency effects
|
2,911
|
|
|
(10,304
|
)
|
||
End of measurement period
|
748,258
|
|
|
694,482
|
|
||
Fair Value of Plans' Assets:
|
|
|
|
||||
Beginning of measurement period
|
649,688
|
|
|
708,895
|
|
||
Actual return on plans' assets
|
109,670
|
|
|
(13,017
|
)
|
||
Employer contributions
|
1,112
|
|
|
24,862
|
|
||
Employee contributions
|
522
|
|
|
59
|
|
||
Plan settlements
|
—
|
|
|
(1,014
|
)
|
||
Benefits paid
|
(50,415
|
)
|
|
(58,592
|
)
|
||
Foreign currency effects
|
3,440
|
|
|
(11,505
|
)
|
||
End of measurement period
|
714,017
|
|
|
649,688
|
|
||
Unfunded Status
|
$
|
(34,241
|
)
|
|
$
|
(44,794
|
)
|
December 31,
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
U.S. Qualified Plan
|
$
|
63,538
|
|
|
$
|
72,484
|
|
Other international plans
|
2,371
|
|
|
1,839
|
|
||
Subtotal, included in "Accrued pension liabilities"
|
65,909
|
|
|
74,323
|
|
||
U.K. prepaid pension asset included in "Other noncurrent assets"
|
(34,990
|
)
|
|
(32,732
|
)
|
||
Unfunded status of nonqualified defined benefit deferred pension plans included in "Other accrued liabilities"
|
310
|
|
|
312
|
|
||
Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities"
|
3,012
|
|
|
2,891
|
|
||
Total unfunded status
|
$
|
34,241
|
|
|
$
|
44,794
|
|
Accumulated other comprehensive loss, before income taxes
|
$
|
(268,275
|
)
|
|
$
|
(280,644
|
)
|
|
Defined Benefit Pension Plans
|
|
Post-Retirement Medical Benefits Plan
|
||||
|
(In thousands)
|
||||||
Net unrecognized actuarial (loss) gain, December 31, 2017
|
$
|
(268,515
|
)
|
|
$
|
456
|
|
Amortization of net loss (gain)
|
10,914
|
|
|
(152
|
)
|
||
Net loss arising during the year
|
(24,709
|
)
|
|
—
|
|
||
Currency translation
|
1,362
|
|
|
—
|
|
||
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
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Service cost
|
$
|
1,278
|
|
|
$
|
1,395
|
|
|
$
|
1,288
|
|
Interest cost
|
22,376
|
|
|
20,933
|
|
|
22,723
|
|
|||
Expected return on assets
|
(29,654
|
)
|
|
(34,267
|
)
|
|
(34,056
|
)
|
|||
Amortization of actuarial loss
|
10,837
|
|
|
10,744
|
|
|
11,154
|
|
|||
Net periodic benefit cost (credit)
|
$
|
4,837
|
|
|
$
|
(1,195
|
)
|
|
$
|
1,109
|
|
Year Ending December 31,
|
Expected Benefit Payments
|
||
|
(In thousands)
|
||
2020
|
$
|
43,637
|
|
2021
|
43,835
|
|
|
2022
|
43,942
|
|
|
2023
|
43,921
|
|
|
2024
|
43,691
|
|
|
2025-2029
|
213,641
|
|
U.S. Qualified Plan:
|
2019
|
|
2018
|
||
Discount rate used to compute benefit obligations
|
3.15
|
%
|
|
4.30
|
%
|
Discount rate used to compute periodic benefit cost
|
4.31
|
%
|
|
3.63
|
%
|
Expected long-term rates of return on plans' assets
|
6.10
|
%
|
|
6.20
|
%
|
U.K. Defined Benefit Plans:
|
2019
|
|
2018
|
||
Discount rate used to compute benefit obligations
|
1.93
|
%
|
|
2.77
|
%
|
Discount rate used to compute periodic benefit cost
|
2.77
|
%
|
|
2.61
|
%
|
Expected long-term rates of return on plans' assets
|
3.28
|
%
|
|
3.98
|
%
|
|
U.S. Qualified Plan
|
|
U.K. Plans
|
||||||||
December 31,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Equity securities
|
21.4
|
%
|
|
21.8
|
%
|
|
17.9
|
%
|
|
18.0
|
%
|
Fixed income securities
|
69.3
|
%
|
|
68.8
|
%
|
|
68.3
|
%
|
|
71.8
|
%
|
Alternative strategies
|
5.9
|
%
|
|
7.3
|
%
|
|
13.0
|
%
|
|
9.0
|
%
|
Cash, cash equivalents and short-term investment funds
|
3.4
|
%
|
|
2.1
|
%
|
|
0.8
|
%
|
|
1.2
|
%
|
Total asset allocation
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
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
|
$
|
(392
|
)
|
$
|
(294
|
)
|
|
$
|
6,941
|
|
$
|
5,509
|
|
|
$
|
7,821
|
|
$
|
6,144
|
|
Dividends paid
|
8,592
|
|
4,579
|
|
|
8,639
|
|
4,889
|
|
|
8,780
|
|
4,920
|
|
||||||
Net income available to common shareholders, basic
|
8,200
|
|
4,285
|
|
|
15,580
|
|
10,398
|
|
|
16,601
|
|
11,064
|
|
||||||
Denominator:
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted-average common shares outstanding, basic
|
30,637
|
|
22,975
|
|
|
30,805
|
|
24,449
|
|
|
31,322
|
|
24,606
|
|
||||||
Earnings per share - basic
|
$
|
0.27
|
|
$
|
0.19
|
|
|
$
|
0.51
|
|
$
|
0.43
|
|
|
$
|
0.53
|
|
$
|
0.45
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
CRD-A
|
CRD-B
|
|
CRD-A
|
CRD-B
|
|
CRD-A
|
CRD-B
|
||||||||||||
|
(In thousands, except earnings (loss) per share)
|
|||||||||||||||||||
Earnings per share - diluted:
|
|
|
|
|
|
|
|
|
||||||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||||||
Allocation of undistributed earnings
|
$
|
(394
|
)
|
$
|
(292
|
)
|
|
$
|
7,003
|
|
$
|
5,447
|
|
|
$
|
7,911
|
|
$
|
6,053
|
|
Dividends paid
|
8,592
|
|
4,579
|
|
|
8,639
|
|
4,889
|
|
|
8,780
|
|
4,920
|
|
||||||
Net income available to common shareholders, diluted
|
8,198
|
|
4,287
|
|
|
15,642
|
|
10,336
|
|
|
16,691
|
|
10,973
|
|
||||||
Denominator:
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted-average common shares outstanding, basic
|
30,637
|
|
22,975
|
|
|
30,805
|
|
24,449
|
|
|
31,322
|
|
24,606
|
|
||||||
Weighted-average effect of dilutive securities (1)
|
453
|
|
—
|
|
|
629
|
|
—
|
|
|
836
|
|
—
|
|
||||||
Weighted-average number of shares outstanding, diluted
|
31,090
|
|
22,975
|
|
|
31,434
|
|
24,449
|
|
|
32,158
|
|
24,606
|
|
||||||
Earnings per share - diluted
|
$
|
0.26
|
|
$
|
0.19
|
|
|
$
|
0.50
|
|
$
|
0.42
|
|
|
$
|
0.52
|
|
$
|
0.45
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
|||
|
(In thousands)
|
|||||||
Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period
|
622
|
|
|
1,175
|
|
|
711
|
|
Performance stock grants excluded because performance conditions had not been met (1)
|
717
|
|
|
752
|
|
|
402
|
|
(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.
|
|
Foreign currency translation adjustments
|
|
Retirement liabilities
|
|
AOCL attributable to shareholders of Crawford & Company
|
||||||
|
(In thousands)
|
||||||||||
Balance at December 31, 2017
|
$
|
(26,320
|
)
|
|
$
|
(170,157
|
)
|
|
$
|
(196,477
|
)
|
Other comprehensive loss before reclassifications
|
(10,032
|
)
|
|
—
|
|
|
(10,032
|
)
|
|||
Unrealized net losses arising during the year
|
—
|
|
|
(18,014
|
)
|
|
(18,014
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income to net income (1)
|
—
|
|
|
8,076
|
|
|
8,076
|
|
|||
Net current period other comprehensive loss
|
(10,032
|
)
|
|
(9,938
|
)
|
|
(19,970
|
)
|
|||
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
|
)
|
(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.
|
|
Shares
|
|
Weighted-Average Exercise Price
|
|
Weighted-Average Remaining Contractual Term
|
|
Aggregate Intrinsic Value
|
|||
|
(In thousands)
|
|
|
|
|
|
(In thousands)
|
|||
Outstanding at December 31, 2016
|
489
|
|
|
$7.19
|
|
7.0 years
|
|
|
||
Granted
|
654
|
|
|
9.44
|
|
|
|
|
|
|
Exercised
|
(70
|
)
|
|
5.77
|
|
|
|
|
|
|
Forfeited or expired
|
(186
|
)
|
|
9.24
|
|
|
|
|
|
|
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
|
||
Vested and Exercisable at December 31, 2019
|
702
|
|
|
$8.91
|
|
6.9 years
|
|
$1,795
|
|
|
2019
|
|
2018
|
||
Expected dividend yield
|
|
3.80
|
%
|
|
3.50
|
%
|
Expected volatility
|
|
36.73
|
%
|
|
42.67
|
%
|
Risk-free interest rate
|
|
2.56
|
%
|
|
2.75
|
%
|
Expected term of options
|
|
7 years
|
|
|
7 years
|
|
|
Shares
|
|
Weighted-Average Grant-Date Fair Value
|
||
Nonvested at December 31, 2016
|
806,881
|
|
|
$6.17
|
|
Granted
|
930,295
|
|
|
7.54
|
|
Vested
|
(668,649
|
)
|
|
5.38
|
|
Forfeited or unearned
|
(184,185
|
)
|
|
5.85
|
|
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
|
|
Shares
|
|
Weighted-Average Grant-Date Fair Value
|
||
Nonvested at December 31, 2016
|
67,669
|
|
|
$7.56
|
|
Granted
|
210,875
|
|
|
9.26
|
|
Vested
|
(166,325
|
)
|
|
9.50
|
|
Forfeited or unearned
|
—
|
|
|
—
|
|
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
|
•
|
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.
|
December 31,
|
2019
|
||||||||||||||
|
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)
|
$
|
10,028
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,028
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent earnout liability (2)
|
—
|
|
|
—
|
|
|
454
|
|
|
454
|
|
December 31,
|
2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market funds (1)
|
$
|
10,354
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,354
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent earnout liability (2)
|
—
|
|
|
—
|
|
|
360
|
|
|
360
|
|
(1)
|
The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included on the Company's Consolidated Balance Sheets in "Cash and cash equivalents."
|
(2)
|
The contingent earnout liability relates to businesses acquired during 2019 and 2018 by the Crawford Specialty Solutions operating segment. See Note 3, "Acquisitions and Disposition of Business Line" for further details. The fair value of the contingent earnout liability was estimated using internally-prepared revenue projections which is Level 3 data, with the maximum possible earnout of $1,036,000. As such, the fair value is not expected to vary materially from the balance recorded. The fair value of the contingent earnout liability is included in "Other accrued liabilities" on the Company's Consolidated Balance Sheets, based upon the term of the contingent earnout agreement.
|
December 31,
|
2019
|
|
2018
|
||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
Asset Category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
$
|
2,338
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,338
|
|
|
$
|
3,156
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,156
|
|
Common Collective Equity funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
—
|
|
|
43,613
|
|
|
—
|
|
|
43,613
|
|
|
—
|
|
|
38,307
|
|
|
—
|
|
|
38,307
|
|
||||||||
International
|
—
|
|
|
9,418
|
|
|
—
|
|
|
9,418
|
|
|
—
|
|
|
9,916
|
|
|
—
|
|
|
9,916
|
|
||||||||
Common Collective Fixed Income Funds and Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Short-term Investment funds:
|
—
|
|
|
167,741
|
|
|
—
|
|
|
167,741
|
|
|
—
|
|
|
160,609
|
|
|
—
|
|
|
160,609
|
|
||||||||
Government securities
|
—
|
|
|
34,926
|
|
|
—
|
|
|
34,926
|
|
|
—
|
|
|
31,531
|
|
|
—
|
|
|
31,531
|
|
||||||||
Alternative strategy funds
|
—
|
|
|
29,172
|
|
|
—
|
|
|
29,172
|
|
|
—
|
|
|
14,044
|
|
|
—
|
|
|
14,044
|
|
||||||||
Real estate funds
|
—
|
|
|
—
|
|
|
9,735
|
|
|
9,735
|
|
|
—
|
|
|
—
|
|
|
9,945
|
|
|
9,945
|
|
||||||||
TOTAL
|
$
|
2,338
|
|
|
$
|
284,870
|
|
|
$
|
9,735
|
|
|
$
|
296,943
|
|
|
$
|
3,156
|
|
|
$
|
254,407
|
|
|
$
|
9,945
|
|
|
$
|
267,508
|
|
|
|
U.S
|
|
U.K.
|
||||
|
|
(in thousands)
|
||||||
Balance at December 31, 2017
|
|
$
|
15,134
|
|
|
$
|
9,689
|
|
Actual return on plan assets:
|
|
|
|
|
||||
Related to assets still held at the reporting date
|
|
1,354
|
|
|
256
|
|
||
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
|
|
|
Crawford Claims Solutions
|
|
Crawford TPA Solutions
|
|
Crawford Specialty Solutions
|
|
Total
|
||||||||
|
|
||||||||||||||
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
|
|
||||
2017
|
|
|
|
|
|
|
|
||||||||
Revenues before reimbursements
|
$
|
365,058
|
|
|
$
|
390,583
|
|
|
$
|
350,191
|
|
|
$
|
1,105,832
|
|
Segment operating earnings
|
18,541
|
|
|
38,224
|
|
|
52,404
|
|
|
109,169
|
|
||||
Depreciation and amortization (1)
|
4,039
|
|
|
9,924
|
|
|
5,629
|
|
|
19,592
|
|
||||
Assets (2)
|
174,559
|
|
|
91,101
|
|
|
211,320
|
|
|
476,980
|
|
(1)
|
Excludes amortization expense of finite-lived customer relationships and trade name intangible assets.
|
(2)
|
Consists of accounts receivable, less allowance for doubtful accounts, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net.
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Crawford Claims Solutions
|
$
|
1,396
|
|
|
$
|
3,811
|
|
|
$
|
1,155
|
|
Crawford TPA Solutions
|
3,259
|
|
|
5,947
|
|
|
4,136
|
|
|||
Crawford Specialty Solutions
|
458
|
|
|
2,148
|
|
|
11,689
|
|
|||
Corporate
|
16,011
|
|
|
18,114
|
|
|
27,931
|
|
|||
Total capital expenditures
|
$
|
21,124
|
|
|
$
|
30,020
|
|
|
$
|
44,911
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Segments' revenues before reimbursements
|
$
|
1,005,802
|
|
|
$
|
1,070,971
|
|
|
$
|
1,105,832
|
|
Reimbursements
|
41,825
|
|
|
52,008
|
|
|
57,877
|
|
|||
Total consolidated revenues
|
$
|
1,047,627
|
|
|
$
|
1,122,979
|
|
|
$
|
1,163,709
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Operating earnings of all reportable segments
|
$
|
84,124
|
|
|
$
|
97,781
|
|
|
$
|
109,169
|
|
Unallocated corporate and shared costs and credits
|
(6,515
|
)
|
|
(9,321
|
)
|
|
(13,463
|
)
|
|||
Net corporate interest expense
|
(10,774
|
)
|
|
(10,109
|
)
|
|
(9,062
|
)
|
|||
Stock option expense
|
(1,885
|
)
|
|
(1,742
|
)
|
|
(1,718
|
)
|
|||
Amortization of acquisition-related intangible assets
|
(11,277
|
)
|
|
(11,152
|
)
|
|
(10,982
|
)
|
|||
Goodwill and intangible asset impairment charges
|
(17,484
|
)
|
|
(1,056
|
)
|
|
(19,598
|
)
|
|||
Arbitration and claim settlements
|
(12,552
|
)
|
|
—
|
|
|
—
|
|
|||
Restructuring and special charges
|
—
|
|
|
—
|
|
|
(12,084
|
)
|
|||
Loss on disposition of business line
|
—
|
|
|
(20,270
|
)
|
|
—
|
|
|||
Income before income taxes
|
$
|
23,637
|
|
|
$
|
44,131
|
|
|
$
|
42,262
|
|
December 31,
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||
Assets of reportable segments
|
$
|
387,836
|
|
|
$
|
421,321
|
|
Corporate assets:
|
|
|
|
||||
Cash and cash equivalents
|
51,802
|
|
|
53,119
|
|
||
Income taxes receivable
|
7,820
|
|
|
4,084
|
|
||
Prepaid expenses and other current assets
|
23,476
|
|
|
24,237
|
|
||
Net property and equipment
|
31,425
|
|
|
34,303
|
|
||
Operating lease right-of-use asset, net
|
102,354
|
|
|
—
|
|
||
Capitalized software costs, net
|
66,445
|
|
|
72,210
|
|
||
Deferred income tax assets
|
17,971
|
|
|
22,146
|
|
||
Other noncurrent assets
|
70,884
|
|
|
70,022
|
|
||
Total corporate assets
|
372,177
|
|
|
280,121
|
|
||
Total assets
|
$
|
760,013
|
|
|
$
|
701,442
|
|
|
U.S.
|
|
U.K.
|
|
Canada
|
|
All Other International
|
|
Total Company
|
||||||||||
|
|
|
(In thousands)
|
||||||||||||||||
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
|
|
|||||
2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues before reimbursements
|
653,693
|
|
|
139,338
|
|
|
110,962
|
|
|
201,839
|
|
|
1,105,832
|
|
|||||
Long-lived assets
|
111,688
|
|
|
7,747
|
|
|
8,771
|
|
|
3,282
|
|
|
131,488
|
|
Year Ended December 31,
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands)
|
||||||||||
Implementation and phase-in of the Centers
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
445
|
|
Restructuring and integration costs
|
—
|
|
|
—
|
|
|
10,119
|
|
|||
Asset impairments and lease termination costs
|
—
|
|
|
—
|
|
|
1,520
|
|
|||
Total restructuring charges
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,084
|
|
|
|
|
|
|
|
Restructuring Charges
|
Deferred rent
|
|
Accrued compensation and related costs
|
|
Accounts payable
|
|
Other accrued liabilities
|
|
Total
|
||||||||||
Balance at December 31, 2016
|
$
|
3,066
|
|
|
$
|
1,525
|
|
|
$
|
617
|
|
|
$
|
1,949
|
|
|
$
|
7,157
|
|
Additions
|
1,277
|
|
|
10,299
|
|
|
195
|
|
|
313
|
|
|
12,084
|
|
|||||
Adjustments to accruals
|
(1,497
|
)
|
|
—
|
|
|
—
|
|
|
977
|
|
|
(520
|
)
|
|||||
Cash payments
|
—
|
|
|
(7,042
|
)
|
|
(812
|
)
|
|
(1,454
|
)
|
|
(9,308
|
)
|
|||||
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
|
|
|
/s/ Harsha V. Agadi
|
|
|
Harsha V. Agadi
|
|
|
President and
|
|
|
Chief Executive Officer
|
|
|
|
|
|
/s/ W. Bruce Swain
|
|
|
W. Bruce Swain
|
|
|
Executive Vice President
|
|
|
and Chief Financial Officer
|
|
|
|
|
|
/s/ Dalerick M. Carden
|
|
|
Dalerick M. Carden
|
|
|
Senior Vice President, Corporate Controller,
|
|
|
and Chief Accounting Officer
|
|
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 charges (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 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
|
|
2018 Quarterly Period
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Full Year
|
||||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||||||
Revenues from services:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues before reimbursements
|
$
|
273,104
|
|
|
$
|
279,044
|
|
|
$
|
255,029
|
|
|
263,794
|
|
|
$
|
1,070,971
|
|
|
Reimbursements
|
17,283
|
|
|
14,165
|
|
|
9,834
|
|
|
10,726
|
|
|
52,008
|
|
|||||
Total revenues
|
290,387
|
|
|
293,209
|
|
|
264,863
|
|
|
274,520
|
|
|
1,122,979
|
|
|||||
Total costs of services
|
214,902
|
|
|
211,688
|
|
|
189,072
|
|
|
192,343
|
|
|
808,005
|
|
|||||
Income (Loss) before income taxes
|
12,396
|
|
|
(1,967
|
)
|
|
9,707
|
|
|
23,995
|
|
|
44,131
|
|
|||||
Crawford Claims Solutions Operating Earnings (Loss) (1)
|
1,145
|
|
|
4,100
|
|
|
(135
|
)
|
|
6,198
|
|
|
11,308
|
|
|||||
Crawford TPA Solutions Operating Earnings (1)
|
7,827
|
|
|
8,132
|
|
|
8,055
|
|
|
12,895
|
|
|
36,909
|
|
|||||
Crawford Specialty Solutions Operating Earnings (1)
|
10,024
|
|
|
10,036
|
|
|
14,363
|
|
|
15,141
|
|
|
49,564
|
|
|||||
Unallocated corporate and shared costs, net
|
(821
|
)
|
|
(697
|
)
|
|
(5,798
|
)
|
|
(2,005
|
)
|
|
(9,321
|
)
|
|||||
Goodwill and intangible asset impairment charges (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,056
|
)
|
|
(1,056
|
)
|
|||||
Net corporate interest expense
|
(2,564
|
)
|
|
(2,440
|
)
|
|
(2,398
|
)
|
|
(2,707
|
)
|
|
(10,109
|
)
|
|||||
Stock option expense
|
(450
|
)
|
|
(512
|
)
|
|
(393
|
)
|
|
(387
|
)
|
|
(1,742
|
)
|
|||||
Amortization of customer-relationship intangible assets
|
(2,765
|
)
|
|
(2,791
|
)
|
|
(2,786
|
)
|
|
(2,810
|
)
|
|
(11,152
|
)
|
|||||
Loss on disposal of business (4)
|
—
|
|
|
(17,795
|
)
|
|
(1,201
|
)
|
|
(1,274
|
)
|
|
(20,270
|
)
|
|||||
Income taxes
|
(3,966
|
)
|
|
(461
|
)
|
|
(1,828
|
)
|
|
(12,287
|
)
|
|
(18,542
|
)
|
|||||
Net loss attributable to noncontrolling interests
|
139
|
|
|
3
|
|
|
17
|
|
|
230
|
|
|
389
|
|
|||||
Net income (loss) attributable to shareholders of Crawford & Company
|
$
|
8,569
|
|
|
$
|
(2,425
|
)
|
|
$
|
7,896
|
|
|
$
|
11,938
|
|
|
$
|
25,978
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (Loss) Per Share - Basic: (2) (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Class A Common Stock
|
$
|
0.16
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.15
|
|
|
$
|
0.23
|
|
|
$
|
0.51
|
|
Class B Common Stock
|
$
|
0.14
|
|
|
$
|
(0.06
|
)
|
|
$
|
0.13
|
|
|
$
|
0.21
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (Loss) Per Share - Diluted: (2) (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Class A Common Stock
|
$
|
0.16
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.15
|
|
|
$
|
0.22
|
|
|
$
|
0.50
|
|
Class B Common Stock
|
$
|
0.14
|
|
|
$
|
(0.06
|
)
|
|
$
|
0.13
|
|
|
$
|
0.20
|
|
|
$
|
0.42
|
|
(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 special charges, 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 audited 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)
|
The Company recognized non-cash goodwill impairment in the amount 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 audited 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 loss on the disposal of the Garden City Group business of $20.3 million in 2018. See Note 3, "Acquisitions and Disposition of Business Line" in the audited consolidated financial statements included in this Item 8. The provision for income taxes in 2019 and 2018 included the impact of these transactions and tax valuation adjustments.
|
•
|
Consolidated Balance Sheets as of December 31, 2019 and 2018
|
•
|
Consolidated Statements of Operations for the Years Ended December 31, 2019, 2018, and 2017
|
•
|
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2019, 2018, and 2017
|
•
|
Consolidated Statements of Shareholders' Investment for the Years Ended December 31, 2019, 2018, and 2017
|
•
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2019, 2018, and 2017
|
•
|
Notes to Consolidated Financial Statements
|
•
|
Schedule II — Valuation and Qualifying Accounts — Information required by this schedule is included under the caption "Accounts Receivable and Allowance for Doubtful Accounts" in Note 1 and also in Note 7, "Income Taxes" to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K, and is incorporated herein by reference.
|
Exhibit No.
|
|
Document
|
|
|
|
2.1
|
|
|
2.2
|
|
|
3.1
|
|
|
3.2
|
|
|
10.1*
|
|
|
10.2*
|
|
|
10.3*
|
|
|
10.4*
|
|
|
10.5*
|
|
|
|
|
Exhibit No.
|
|
Document
|
|
|
|
10.6*
|
|
|
10.7*
|
|
|
10.8*
|
|
|
10.9*
|
|
|
10.10*
|
|
|
10.11*
|
|
|
10.12*
|
|
|
10.13*
|
|
|
10.14*
|
|
|
10.15*
|
|
|
10.16*
|
|
|
10.17*
|
|
|
10.18
|
|
|
10.19
|
|
|
10.20
|
|
|
10.21
|
|
|
|
|
|
Exhibit No.
|
|
Document
|
|
|
|
10.22*
|
|
|
10.23
|
|
|
10.24
|
|
|
10.25
|
|
|
10.26
|
|
|
21.1
|
|
|
23.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101
|
|
XBRL Documents.
|
*
|
Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 601 of Regulation S-K.
|
|
|
|
CRAWFORD & COMPANY
|
||
|
|
|
|
|
|
Date
|
March 5, 2020
|
|
By
|
|
/s/ Harsha V. Agadi
|
|
|
|
|
|
HARSHA V. AGADI, President and Chief Executive Officer
|
|
|
|
NAME AND TITLE
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ Harsha V. Agadi
|
|
|
|
HARSHA V. AGADI, President and Chief Executive Officer (Principal Executive Officer) and Director
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ W. Bruce Swain
|
|
|
|
W. BRUCE SWAIN, Executive Vice President-Finance (Principal Financial Officer)
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ Dalerick M. Carden
|
|
|
|
DALERICK M. CARDEN, Senior Vice President and Controller (Principal Accounting Officer)
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ Jesse C. Crawford
|
|
|
|
JESSE C. CRAWFORD, Director
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ Jesse C. Crawford, Jr.
|
|
|
|
JESSE C. CRAWFORD, JR, Director
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ Lisa Hannusch
|
|
|
|
LISA HANNUSCH, Director
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ Michelle Jarrard
|
|
|
|
MICHELLE JARRARD, Director
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ Charles H. Ogburn
|
|
|
|
CHARLES H. OGBURN, Director
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ Rahul Patel
|
|
|
|
RAHUL PATEL, Director
|
|
|
|
|
Date
|
March 5, 2020
|
|
/s/ D. Richard Williams
|
|
|
|
D. RICHARD WILLIAMS, Director
|
|
|
|
|
|
Jurisdiction
in
|
Subsidiary
|
|
Which Organized
|
|
|
|
Crawford & Company International, Inc.
|
|
Georgia
|
Broadspire Services, Inc.
|
|
Delaware
|
WeGoLook, LLC
|
|
Oklahoma
|
Risk Sciences Group, Inc.
|
|
Delaware
|
Crawford & Company Adjusters Limited
|
|
England
|
Crawford & Company Adjusters (UK) Limited
|
|
England
|
Crawford & Company (Canada), Inc.
|
|
Canada
|
Crawford & Company (Australia) Pty Limited
|
|
Australia
|
Crawford & Company EMEA/A-P Holdings Limited
|
|
United Kingdom
|
Crawford & Company Financial Services Ltd.
|
|
Cayman Islands
|
Crawford & Company Risk Services Investments Ltd
|
|
United Kingdom
|
(1)
|
Registration Statement (Form S-8 No. 333-87465) pertaining to the Crawford &
|
(2)
|
Registration Statement (Form S-8 No. 333-125557) pertaining to the Crawford &
|
(3)
|
Registration Statement (Form S-8 No. 333-140310) pertaining to the Crawford &
|
(4)
|
Registration Statement (Form S-3/A No. 333-142569) pertaining to the registration
|
(5)
|
Registration Statement (Form S-8 No. 333-157896) pertaining to the Crawford &
|
(6)
|
Registration Statement (Form S-8 No. 333-161278) pertaining to the Crawford &
|
(7)
|
Registration Statement (Form S-8 No. 333-161279) pertaining to the Crawford &
|
(8)
|
Registration Statement (Form S-8 No. 333-161280) pertaining to the Crawford &
|
(9)
|
Registration Statement (Form S-8 No. 333-170344) pertaining to the Crawford &
|
(10)
|
Registration Statement (Form S-8 No. 333-190373) pertaining to the Crawford &
|
(11)
|
Registration Statement (Form S-8 No. 333-199915) pertaining to the Crawford &
|
(12)
|
Registration Statement (Form S-8 No. 333-213010) pertaining to the Crawford &
|
(13)
|
Registration Statement (Form S-8 No. 333-228178) pertaining to the Crawford &
|
1.
|
I have reviewed this Annual Report on Form 10-K of Crawford & Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
|
|
|
Date:
|
March 5, 2020
|
/s/ Harsha V. Agadi
|
|
|
|
Harsha V. Agadi
|
|
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of Crawford & Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
|
|
|
Date:
|
March 5, 2020
|
/s/ W. Bruce Swain
|
|
|
|
W. Bruce Swain
|
|
|
|
Executive Vice President and Chief
Financial Officer (Principal Financial Officer)
|
|
|
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 780(d)); and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
|
Date:
|
March 5, 2020
|
/s/ Harsha V. Agadi
|
|
|
|
Harsha V. Agadi
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 780(d)); and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
|
Date:
|
March 5, 2020
|
/s/ W. Bruce Swain
|
|
|
|
W. Bruce Swain
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|