CRAWFORD & CO, 10-K filed on 3/4/2021
Annual Report
v3.20.4
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2020
Feb. 25, 2021
Jun. 30, 2020
Document Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Dec. 31, 2020    
Document Fiscal Year Focus 2020    
Entity File Number 1-10356    
Entity Registrant Name CRAWFORD & CO    
Entity Incorporation, State or Country Code 2Q    
Entity Tax Identification Number 58-0506554    
Entity Address, Address Line One 5335 Triangle Parkway    
Entity Address, City or Town Peachtree Corners    
Entity Address, State or Province GA    
Entity Address, Postal Zip Code 30092    
City Area Code 404    
Local Phone Number 300-1000    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
ICFR Auditor Attestation Flag true    
Entity Public Float     $ 198,769,113
Documents Incorporated by Reference Portions of the Registrant's proxy statement for its 2020 annual shareholders' meeting, which proxy statement will be filed within 120 days of the Registrant's year end, are incorporated by reference into Part III hereof.    
Current Fiscal Year End Date --12-31    
Entity Central Index Key 0000025475    
Document Fiscal Period Focus FY    
Class A Non-Voting      
Document Information [Line Items]      
Title of 12(b) Security Class A Common Stock — $1.00 Par Value    
Trading Symbol CRD-A    
Security Exchange Name NYSE    
Entity Common Stock, Shares Outstanding   30,853,833  
Class B Voting      
Document Information [Line Items]      
Title of 12(b) Security Class B Common Stock — $1.00 Par Value    
Trading Symbol CRD-B    
Security Exchange Name NYSE    
Entity Common Stock, Shares Outstanding   22,452,075  
v3.20.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Revenues from Services:      
Revenues $ 1,016,195 $ 1,047,627 $ 1,122,979
Costs and Expenses:      
Cost of services 737,320 752,773 808,005
Selling, general, and administrative expenses 218,952 227,170 242,421
Corporate interest expense, net of interest income 7,923 10,774 10,109
Goodwill and intangible asset impairments 17,674 17,484 1,056
Arbitration and claim settlements   12,552  
Restructuring and other costs, net [1] 8,133    
(Gain) loss on disposition of businesses, net (13,763)   20,270
Total Costs and Expenses 976,239 1,020,753 1,081,861
Other (Expense) Gain (868) (3,237) 3,013
(Loss) Income Before Income Taxes 39,088 23,637 44,131
(Benefit) Provision for Income Taxes 12,013 14,111 18,542
Net (Loss) Income 27,075 9,526 25,589
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests 1,221 2,959 389
Net (Loss) Income Attributable to Shareholders of Crawford & Company $ 28,296 $ 12,485 $ 25,978
Class A Non-Voting      
(Loss) Earnings Per Share - Basic:      
(Loss) Earnings Per Share - Basic: $ 0.54 [2] $ 0.27 [2] $ 0.51
(Loss) Earnings Per Share - Diluted:      
(Loss) Earnings Per Share - Diluted: $ 0.54 [2] $ 0.26 [2] $ 0.50
Weighted-Average Shares Used to Compute Basic Earnings Per Share:      
Weighted-average common shares outstanding, basic 30,605 30,637 30,805
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:      
Weighted-average common shares outstanding, diluted 30,857 31,090 31,434
Cash Dividends Per Share:      
Cash Dividends Per Share $ 0.19 $ 0.28 $ 0.28
Class B Voting      
(Loss) Earnings Per Share - Basic:      
(Loss) Earnings Per Share - Basic: 0.52 [2] 0.19 [2] 0.43
(Loss) Earnings Per Share - Diluted:      
(Loss) Earnings Per Share - Diluted: $ 0.52 [2] $ 0.19 [2] $ 0.42
Weighted-Average Shares Used to Compute Basic Earnings Per Share:      
Weighted-average common shares outstanding, basic 22,527 22,975 24,449
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:      
Weighted-average common shares outstanding, diluted 22,527 22,975 24,449
Cash Dividends Per Share:      
Cash Dividends Per Share $ 0.17 $ 0.20 $ 0.20
Service      
Revenues from Services:      
Revenues $ 982,492 $ 1,005,802 $ 1,070,971
Costs and Expenses:      
Cost of services 703,617 710,948 755,997
Reimbursements      
Revenues from Services:      
Revenues 33,703 41,825 52,008
Costs and Expenses:      
Cost of services $ 33,703 $ 41,825 $ 52,008
[1] The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.
[2]

Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data.
v3.20.4
Consolidated Statements of Operations (Parentheticals) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Statement [Abstract]      
Interest income $ 264 $ 745 $ 1,290
v3.20.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]      
Net Income $ 27,075 $ 9,526 $ 25,589
Other Comprehensive Income (Loss):      
Net foreign currency translation gain (loss), net of tax benefit of $0, $0 and $0, respectively 4,281 (180) (10,830)
Amounts reclassified into net income for defined benefit pension plans, net of tax provision of $2,693, $2,682 and $2,686, respectively 7,959 8,002 8,076
Net unrealized (loss) gain on defined benefit plans arising during the year, net of tax benefit (provision) of $1,655, ($649), and $5,333, respectively (4,966) 1,036 (18,014)
Other Comprehensive Income (Loss) 7,274 8,858 (20,768)
Comprehensive Income 34,349 18,384 4,821
Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests 1,535 3,641 1,187
Comprehensive Income Attributable to Shareholders of Crawford & Company $ 35,884 $ 22,025 $ 6,008
v3.20.4
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]      
OCI, Tax on foreign currency translation loss (gain) $ 0 $ 0 $ 0
OCI, Tax provision on reclassification adjustments to net income for pension plans 2,693 2,682 2,686
OCI, Tax (provision) benefit on unrealized gains (losses) arising during the year for pension plans $ 1,655 $ (649) $ 5,333
v3.20.4
Condensed Consolidated Balance Sheets - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Current Assets:    
Cash and cash equivalents $ 44,656,000 $ 51,802,000
Accounts receivable, less allowance for expected credit losses of $9,464 and $9,348, respectively 123,060,000 128,217,000
Unbilled revenues, at estimated billable amounts 103,528,000 103,894,000
Income taxes receivable 1,269,000 7,820,000
Prepaid expenses and other current assets 29,490,000 23,476,000
Total Current Assets 302,003,000 315,209,000
Net Property and Equipment 36,402,000 31,425,000
Other Assets:    
Operating lease right-of-use asset, net 109,315,000 102,354,000
Goodwill 66,537,000 80,642,000
Intangible assets arising from business acquisitions, net 71,176,000 75,083,000
Capitalized software costs, net 71,021,000 66,445,000
Deferred income tax assets 25,595,000 17,971,000
Other noncurrent assets 70,935,000 70,884,000
Total Other Assets 414,579,000 413,379,000
TOTAL ASSETS 752,984,000 760,013,000
Current Liabilities:    
Short-term borrowings 1,837,000 28,546,000
Accounts payable 41,544,000 34,377,000
Accrued compensation and related costs 81,848,000 68,499,000
Self-insured risks 11,390,000 11,311,000
Income taxes payable 5,822,000 3,030,000
Operating lease liability 32,745,000 30,765,000
Other accrued liabilities 40,375,000 31,449,000
Deferred revenues 27,233,000 28,288,000
Total Current Liabilities 242,794,000 236,265,000
Noncurrent Liabilities:    
Long-term debt and finance leases, less current installments 111,758,000 148,408,000
Deferred revenues 24,136,000 24,080,000
Accrued pension liabilities 53,886,000 65,909,000
Operating lease liability 93,228,000 87,064,000
Other noncurrent liabilities 40,254,000 33,410,000
Total Noncurrent Liabilities 323,262,000 358,871,000
Redeemable Noncontrolling Interests   2,310,000
Shareholders' Investment:    
Additional paid-in capital 67,193,000 63,392,000
Retained earnings 265,245,000 249,551,000
Accumulated other comprehensive loss (198,856,000) (206,907,000)
Shareholders' Investment Attributable to Shareholders of Crawford & Company 186,939,000 159,317,000
Noncontrolling interests (11,000) 3,250,000
Total Shareholders' Investment 186,928,000 162,567,000
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT 752,984,000 760,013,000
Class A Non-Voting    
Shareholders' Investment:    
Class A common stock, $1.00 par value, 50,000 shares authorized; 30,847 and 30,610 shares issued and outstanding, respectively 30,847,000 30,610,000
Class B Voting    
Shareholders' Investment:    
Class A common stock, $1.00 par value, 50,000 shares authorized; 30,847 and 30,610 shares issued and outstanding, respectively $ 22,510,000 $ 22,671,000
v3.20.4
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Current Assets:    
Allowance for doubtful accounts $ 9,464 $ 9,348
Class A Non-Voting    
Shareholders' Investment:    
Par or stated value per share (USD per share) $ 1.00 $ 1.00
Shares authorized (shares) 50,000,000 50,000,000
Shares issued (shares) 30,847,000 30,610,000
Shares outstanding (shares) 30,847,000 30,610,000
Class B Voting    
Shareholders' Investment:    
Par or stated value per share (USD per share) $ 1.00 $ 1.00
Shares authorized (shares) 50,000,000 50,000,000
Shares issued (shares) 22,510,000 22,671,000
Shares outstanding (shares) 22,510,000 22,671,000
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash Flows from Operating Activities:      
Net Income $ 27,075,000 $ 9,526,000 $ 25,589,000
Reconciliation of net income to net cash provided by operating activities:      
Depreciation and amortization 40,111,000 40,513,000 44,079,000
Goodwill and intangible asset impairments 17,674,000 [1] 17,484,000 1,056,000
Deferred income taxes (9,005,000) 3,040,000 7,947,000
(Gain) loss on disposition of businesses, net (13,763,000)   20,270,000
Stock-based compensation costs 4,384,000 4,109,000 6,196,000
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:      
Accounts receivable, net 5,063,000 5,922,000 7,844,000
Unbilled revenues, net (3,762,000) 5,302,000 (18,588,000)
Accrued or prepaid income taxes 9,311,000 (5,985,000) 2,270,000
Accounts payable and accrued liabilities 31,775,000 (6,946,000) (8,952,000)
Deferred revenues (1,074,000) (281,000) (4,969,000)
Accrued retirement costs (10,790,000) 3,387,000 (25,896,000)
Prepaid expenses and other operating activities (3,821,000) (855,000) (4,427,000)
Net cash provided by operating activities 93,178,000 75,216,000 52,419,000
Cash Flows from Investing Activities:      
Acquisitions of property and equipment (14,226,000) (8,688,000) (14,052,000)
Capitalization of computer software costs (23,154,000) (12,436,000) (15,968,000)
Cash proceeds from disposition of business line 19,968,000   39,187,000
Payments for business acquisitions, net of cash acquired (9,983,000) (2,296,000) (2,500,000)
Other investing activities 358,000   (218,000)
Net cash (used in) provided by investing activities (27,037,000) (23,420,000) 6,449,000
Cash Flows from Financing Activities:      
Cash dividends paid (9,645,000) (13,171,000) (13,528,000)
Payments related to shares received for withholding taxes under stock-based compensation plans (476,000) (827,000) (1,110,000)
Proceeds from shares purchased under employee stock-based compensation plans 811,000 2,104,000 1,387,000
Repurchases of common stock (2,666,000) (26,210,000) (10,409,000)
Payments for equity investments (602,000)    
Increases in short-term and revolving credit facility borrowings 108,142,000 66,197,000 101,428,000
Payments on short-term and revolving credit facility borrowings (169,675,000) (80,948,000) (135,433,000)
Payments on finance lease obligations (62,000) (93,000) (477,000)
Capitalized loan costs     (23,000)
Dividends paid to noncontrolling interests (196,000) (458,000) (574,000)
Net cash used in financing activities (74,369,000) (53,406,000) (58,739,000)
Effects of exchange rate changes on cash and cash equivalents 1,082,000 293,000 (1,021,000)
Decrease in Cash and Cash Equivalents (7,146,000) (1,317,000) (892,000)
Cash and Cash Equivalents at Beginning of Year 51,802,000 53,119,000 54,011,000
Cash and Cash Equivalents at End of Year $ 44,656,000 $ 51,802,000 $ 53,119,000
[1] The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.
v3.20.4
Consolidated Statements of Shareholders' Investment (Parentheticals) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Class Of Stock [Line Items]      
Net income (loss) attributable to redeemable noncontrolling interest $ 2,258 $ 3,191 $ 1,275
Class A Non-Voting      
Class Of Stock [Line Items]      
Cash dividends paid (in dollars per share) $ 0.19 $ 0.28 $ 0.28
Class B Voting      
Class Of Stock [Line Items]      
Cash dividends paid (in dollars per share) $ 0.17 $ 0.20 $ 0.20
v3.20.4
Consolidated Statements of Shareholders' Investment - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Increase Decrease In Stockholders Equity Roll Forward      
Beginning balance $ 162,567 $ 175,446 $ 186,964
Net income (loss) [1] 29,333 12,717 26,864
Other comprehensive income (loss) 7,274 8,858 (20,768)
Cash dividends paid (9,645) (13,171) (13,528)
Stock-based compensation 4,384 4,109 6,196
Repurchases of common stock (2,666) (26,210) (10,409)
Shares issued in connection with stock-based compensation plans, net 335 1,276 919
Decrease in value of noncontrolling interest due to acquisition (101)   (218)
Increase in value of noncontrolling interest due to disposition 3,750    
Ending balance 186,928 162,567 175,446
Dividends paid to noncontrolling interests (196) (458) (574)
Increase in value of noncontrolling interest due to disposition (3,750)    
Adoption of Topic 326      
Increase Decrease In Stockholders Equity Roll Forward      
Ending balance $ (607)    
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member    
Common Stock | Class A Non-Voting      
Increase Decrease In Stockholders Equity Roll Forward      
Beginning balance $ 30,610 30,927 31,439
Repurchases of common stock (155) (1,103) (1,144)
Shares issued in connection with stock-based compensation plans, net 392 786 632
Ending balance $ 30,847 30,610 30,927
Common Stock | Class A Non-Voting | Adoption of Topic 326      
Increase Decrease In Stockholders Equity Roll Forward      
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member    
Common Stock | Class B Voting      
Increase Decrease In Stockholders Equity Roll Forward      
Beginning balance $ 22,671 24,408 24,502
Repurchases of common stock (161) (1,737) (94)
Ending balance $ 22,510 22,671 24,408
Common Stock | Class B Voting | Adoption of Topic 326      
Increase Decrease In Stockholders Equity Roll Forward      
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member    
Additional Paid-In Capital      
Increase Decrease In Stockholders Equity Roll Forward      
Beginning balance $ 63,392 58,793 53,170
Stock-based compensation 4,384 4,109 6,196
Shares issued in connection with stock-based compensation plans, net (57) 490 (355)
Decrease in value of noncontrolling interest due to acquisition (526)   (218)
Ending balance $ 67,193 63,392 58,793
Additional Paid-In Capital | Adoption of Topic 326      
Increase Decrease In Stockholders Equity Roll Forward      
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member    
Retained Earnings      
Increase Decrease In Stockholders Equity Roll Forward      
Beginning balance $ 249,551 273,607 269,686
Net income (loss) [1] 28,296 12,485 25,978
Cash dividends paid (9,645) (13,171) (13,528)
Repurchases of common stock (2,350) (23,370) (9,171)
Shares issued in connection with stock-based compensation plans, net     642
Ending balance 265,245 $ 249,551 273,607
Retained Earnings | Adoption of Topic 326      
Increase Decrease In Stockholders Equity Roll Forward      
Ending balance $ (607)    
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member us-gaap:AccountingStandardsUpdate201613Member  
AOCL attributable to shareholders of Crawford & Company      
Increase Decrease In Stockholders Equity Roll Forward      
Beginning balance $ (206,907) $ (216,447) (196,477)
Other comprehensive income (loss) 7,588 9,540 (19,970)
Decrease in value of noncontrolling interest due to acquisition 576    
Increase in value of noncontrolling interest due to disposition 113    
Ending balance (198,856) (206,907) (216,447)
Increase in value of noncontrolling interest due to disposition $ (113)    
AOCL attributable to shareholders of Crawford & Company | Adoption of Topic 326      
Increase Decrease In Stockholders Equity Roll Forward      
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member    
Shareholders' Investment Attributable to Shareholders of Crawford & Company      
Increase Decrease In Stockholders Equity Roll Forward      
Beginning balance $ 159,317 171,288 182,320
Net income (loss) [1] 28,296 12,485 25,978
Other comprehensive income (loss) 7,588 9,540 (19,970)
Cash dividends paid (9,645) (13,171) (13,528)
Stock-based compensation 4,384 4,109 6,196
Repurchases of common stock (2,666) (26,210) (10,409)
Shares issued in connection with stock-based compensation plans, net 335 1,276 919
Decrease in value of noncontrolling interest due to acquisition 50   (218)
Increase in value of noncontrolling interest due to disposition 113    
Ending balance 186,939 159,317 171,288
Increase in value of noncontrolling interest due to disposition (113)    
Shareholders' Investment Attributable to Shareholders of Crawford & Company | Adoption of Topic 326      
Increase Decrease In Stockholders Equity Roll Forward      
Ending balance $ (607)    
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member    
Noncontrolling Interests      
Increase Decrease In Stockholders Equity Roll Forward      
Beginning balance $ 3,250 4,158 4,644
Net income (loss) [1] 1,037 232 886
Other comprehensive income (loss) (314) (682) (798)
Decrease in value of noncontrolling interest due to acquisition (151)    
Increase in value of noncontrolling interest due to disposition 3,637    
Ending balance (11) 3,250 4,158
Dividends paid to noncontrolling interests (196) $ (458) $ (574)
Increase in value of noncontrolling interest due to disposition $ (3,637)    
Noncontrolling Interests | Adoption of Topic 326      
Increase Decrease In Stockholders Equity Roll Forward      
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member    
[1] The total net income presented in the consolidated statement of shareholders' investment for the years ended December 31, 2018, December 31, 2019 and December 31, 2020 excludes $1,275, $3,191 and $2,258 respectively, in net loss attributable to the redeemable noncontrolling interests.
v3.20.4
Significant Accounting and Reporting Policies
 12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Significant Accounting and Reporting Policies

1.

Significant Accounting and Reporting Policies

Nature of Operations

Based in Atlanta, Georgia, Crawford & Company ("Crawford" or "the Company") is the world's largest publicly listed independent provider of claims management and outsourcing solutions to carriers, brokers and corporations with an expansive global network serving clients in more than 70 countries. Shares of the Company's two classes of common stock are traded on the New York Stock Exchange ("NYSE") under the symbols CRD-A and CRD-B, respectively. The Company's two classes of stock are substantially identical, except with respect to voting rights and the Company's ability to pay greater cash dividends on the non-voting Class A Common Stock than on the voting Class B Common Stock, subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of Class A Common Stock must receive the same type and amount of consideration as holders of Class B Common Stock, unless different consideration is approved by the holders of 75% of the Class A Common Stock, voting as a class. The Company's website is www.crawco.com. The information contained on, or hyperlinked from, the Company's website is not a part of, and is not incorporated by reference into, this report.

Principles of Consolidation

The accompanying consolidated financial statements were prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") and include the accounts of the Company, its majority-owned subsidiaries, and variable interest entities in which the Company is deemed to be the primary beneficiary. Significant intercompany transactions are eliminated in consolidation. Financial results from the Company's operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines, are reported and consolidated on a two-month delayed basis in accordance with the provisions of Accounting Standards Codification ("ASC") 810, "Consolidation," in order to provide sufficient time for accumulation of their results. Accordingly, the Company's December 31, 2020, 2019, and 2018 consolidated financial statements include the financial position of such operations as of October 31, 2020 and 2019, respectively, and the results of their operations and cash flows for the fiscal periods ended October 31, 2020, 2019, and 2018, respectively.

The Company has controlling ownership interests in several entities that are not wholly-owned by the Company. The financial results and financial positions of these controlled entities are included in the Company's consolidated financial statements, including the controlling interests, noncontrolling interests, and redeemable noncontrolling interests. The noncontrolling interests and redeemable noncontrolling interests represent the equity interests in these entities that are not attributable, either directly or indirectly, to the Company. On the Company's Consolidated Statements of Operations, net income or loss is separately attributed to the controlling interests and noncontrolling interests and redeemable noncontrolling interests.

Noncontrolling interests represent the minority shareholders' share of the net income or loss and shareholders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' investment as "Redeemable Noncontrolling Interests" and are carried at either their initial fair value plus any profits or losses or estimated redemption value if an adjustment is required.

The Company consolidates the results of a variable interest entity ("VIE") when it is determined to be the primary beneficiary. In accordance with GAAP, in determining whether the Company is the primary beneficiary of a VIE for financial reporting purposes, it considers whether it has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether it has the obligation to absorb losses or the right to receive returns that would be significant to the VIE.

The Company sold its 51% interest in Lloyd Warwick International Limited ("LWI") to a third party in June 2020. Prior to the sale, LWI was considered a VIE of the Company. As the primary beneficiary of LWI, the Company consolidated the results of LWI because of its controlling ownership interest and because Crawford had the obligation to absorb LWI's losses through the additional financial support that Crawford may be obligated to provide. As a result of the sale, LWI is no longer considered a VIE of the Company, and the Company no longer consolidates the results of LWI nor is obligated to provide financial support to LWI. See Note 3, “Business Acquisitions and Dispositions” of our accompanying consolidated financial statements for further discussion related to the sale of the Company’s interest in LWI.

The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and also considered a VIE of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan. At December 31, 2020 and 2019, the liabilities of this deferred compensation plan were $7,961,000 and $8,428,000, respectively, which represented obligations of the Company rather than of the rabbi trust, and the values of the assets held in the related rabbi trust were $16,323,000 and $16,527,000, respectively. These liabilities and assets are included in "Other noncurrent liabilities" and "Other noncurrent assets" on the Company's Consolidated Balance Sheets, respectively.

On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company has not applied for governmental loans from the CARES Act or any other governmental programs to support the Company’s U.S. operations. The Company is taking advantage of certain aspects of the CARES Act such as the deferral of payroll tax deposits.

The Canadian government enacted the Canada Emergency Wage Subsidy (“CEWS”) in 2020 to provide a wage subsidy to employers that suffered reductions in revenue resulting from the COVID-19 pandemic. The Company met the eligibility criteria to receive the wage subsidy in the second, third and fourth quarters of 2020. The wage subsidy is included in "Costs of services provided, before reimbursements” or “Selling, general, and administrative expenses” on the Consolidated Statements of Operations, depending on the location of the employees, and is recorded as a reduction of compensation expense. In 2020, the Company recognized $13.8 million as a reduction of compensation expense as a result of this subsidy.

Prior Year Reclassifications

Periodically, certain prior year segment information may be reclassified to conform to the current year presentation. There were no such reclassifications in the current year.

Management's Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

Revenue Recognition

Revenues are recognized when control of the promised services are transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are recognized net of any sales, use or value added taxes collected from customers, which are subsequently remitted to governmental authorities. As the Company completes its performance obligations, it has an unconditional right to consideration as outlined in the Company's contracts.

The Company's Crawford Claims Solutions segment generates revenue for claims management services provided to insurance companies and self-insured entities related to property, casualty and catastrophe losses caused by physical damage to commercial and residential real property and personal property. The Company's Crawford TPA Solutions segment is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Company's Crawford Specialty Solutions segment principally generates revenues through its Global Technical Services and Contractor Connection service lines. The Global Technical Services service line generates revenues for claims management services provided to insurance companies and self-insured entities related to large, complex losses with technical adjusting and industry experts. The Contractor Connection service line generates revenue through its independently managed contractor network, with approximately 6,000 credentialed residential and commercial contractors. See Note 2, “Revenue Recognition” for further discussion on the Company’s revenue recognition policies.

Intersegment sales are recorded at cost and are not material.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. The fair value of cash and cash equivalents approximates carrying value due to their short-term nature. At December 31, 2020, cash and cash equivalents included time deposits of approximately $1,473,000 that were in financial institutions outside the U.S.

Accounts Receivable and Allowance for Expected Credit Losses

The Company extends credit based on an evaluation of a client's financial condition and, generally, collateral is not required. Accounts receivable are typically due upon receipt of the invoice and are stated on the Company's Consolidated Balance Sheets at amounts due from clients net of an estimated allowance for expected credit losses. Accounts outstanding longer than the contractual payment terms are considered past due. The fair value of accounts receivable approximates book value due to their short-term contractual stipulations.

The Company maintains an allowance for expected credit losses resulting primarily from the inability of clients to make required payments. Such losses are accounted for as bad debt expense, while adjustments to invoices are accounted for as reductions to revenue. These allowances are established using historical write-off or adjustment information to project future experience and by considering the current creditworthiness of clients, any known specific collection problems, and an assessment of current industry and economic conditions. Actual experience may differ significantly from historical or expected loss results. The Company writes off accounts receivable when they become uncollectible, and any payments subsequently received are accounted for as recoveries.

A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2020, 2019, and 2018 is as follows:

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Allowance for expected credit losses, January 1

 

$

9,348

 

 

$

9,625

 

 

$

12,588

 

Add/ (Deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Adoption of Topic 326

 

 

(464

)

 

 

—

 

 

 

—

 

Provision for bad debt expense

 

 

1,504

 

 

 

1,588

 

 

 

2,709

 

Write-offs, net of recoveries

 

 

(908

)

 

 

(81

)

 

 

(3,695

)

Adjustments for business acquisitions and dispositions

 

 

(111

)

 

 

—

 

 

 

(1,612

)

Currency translation and other changes

 

 

95

 

 

 

(1,784

)

 

 

(365

)

Allowance for expected credit losses, December 31

 

$

9,464

 

 

$

9,348

 

 

$

9,625

 

 

Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived Assets

Goodwill is an asset that represents the excess of the purchase price over the fair value of the separately identifiable net assets (tangible and intangible) acquired in certain business combinations. Indefinite-lived intangible assets consist of trade names associated with acquired businesses. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing at least annually. Other long-lived assets consist primarily of property and equipment, deferred income tax assets, capitalized software, and amortizable intangible assets related to customer relationships, technology, and trade names with finite lives. Other long-lived assets are evaluated for impairment when impairment indicators are identified.

Subsequent to a business acquisition in which goodwill and indefinite-lived intangibles are recorded as assets, post-acquisition accounting requires that both be tested to determine whether there has been an impairment. The Company performs an impairment test of goodwill and indefinite-lived intangible assets at least annually on October 1 of each year. The Company regularly evaluates whether events and circumstances have occurred which indicate potential impairment of goodwill or indefinite-lived intangible assets. When factors indicate that such assets should be evaluated for possible impairment between the scheduled annual impairment tests, the Company performs an interim impairment test.

Goodwill impairment testing is performed on a reporting unit basis. If the fair value of the reporting unit exceeds its carrying value, including goodwill, goodwill is considered not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The loss recognized cannot subsequently be reversed.

The Company currently has four reporting units for goodwill impairment purposes. These reporting units are the Crawford Claims Solutions and Crawford TPA Solutions operating segments and the Global Technical Services and Contractor Connection service lines.

The carrying value of the reporting unit, including goodwill, is compared with the estimated fair value of the reporting unit as determined utilizing a combination of the income and market approaches. The income approach, which is a level 3 fair value measurement, is based on projected debt-free cash flow which is discounted to the present value using discount factors that consider the timing and risk of the cash flows. The market approach is based on the Guideline Public Company Method, which uses market pricing metrics to select multiples to value the Company's reporting units. The resulting estimated fair values of the combined reporting units are reconciled to the Company's market capitalization including an estimated implied control premium. The Company believes that the combination of these approaches is appropriate because it provides a fair value estimate based upon the combination of the reporting unit's expected long-term operating cash flow performance and multiples with which similar publicly traded companies are valued. The Company weights the income and market approaches equally.

During the first quarter of 2020, the Company identified a goodwill impairment indicator in its Crawford Claims Solutions reporting unit as a result of lower operating results and the overall decline in market conditions as a result of the COVID-19 pandemic. As a result, the Company recognized a goodwill impairment of $17.7 million, reducing the goodwill carrying value of Crawford Claims Solutions to $0 as of March 31, 2020.

During the fourth quarter of 2020, the Company performed the goodwill impairment testing on the remaining reporting units. The estimated fair value of the Company's Crawford TPA Solutions, Global Technical Services and Contractor Connection reporting units exceed their carrying value by a significant margin. The Company intends to continue to monitor the performance of its reporting units for potential indicators of impairment. If impairment indicators exist, the Company will perform an interim goodwill impairment analysis.

The key assumptions used in estimating the fair value of our reporting units utilizing the income approach include the discount rate and the terminal growth rate. The discount rates utilized in estimating the fair value of our reporting units in 2020 range between 15.0% and 17.5%, reflecting the Company's assessment of a market participant's view of the risks associated with the projected cash flows. The terminal growth rate used in the analysis was 2.0%. The assumptions used in estimating the fair values are based on currently available data and management's best estimates of revenues and cash flows and, accordingly, a change in market conditions or other factors could have a material effect on the estimated values. There are inherent uncertainties related to the assumptions used and to management's application of these assumptions.

If changes to the Company's reporting structure impact the composition of its reporting units, existing goodwill is reallocated to the revised reporting units based on their relative estimated fair values as determined by a combination of the income and market approaches. If all of the assets and liabilities of an acquired business are assigned to a specific reporting unit, the goodwill associated with that acquisition is assigned to that reporting unit at acquisition unless another reporting unit is also expected to benefit from the acquisition.

For impairment testing of indefinite-lived intangible assets, the carrying value is compared with the estimated fair value, which is estimated based on the present value of the after-tax cash flows attributable solely to the asset. If carrying value exceeds the estimated fair value, an impairment is recognized based on the excess. The fair values of the Company's trade names are established using the relief-from-royalty method, a form of the income approach. This method recognizes that, by virtue of owning the trade name as opposed to licensing it, a company or reporting unit is relieved from paying a royalty, usually expressed as a percentage of net sales, for the asset's use. The present value of the after-tax costs savings (i.e., royalty relief) at an appropriate discount rate including a tax amortization benefit indicates the value of the trade name. The Company determined the discount rate based on its performance compared to similar market participants, factored by risk in forecasting using a modified capital asset pricing model.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. The Company depreciates the cost of property and equipment, including assets recorded under finance leases, over the shorter of the remaining lease term or the estimated useful lives of the related assets, primarily using the straight-line method. The estimated useful lives for property and equipment classifications are as follows:

 

Classification

Estimated Useful Lives

Furniture and fixtures

 

3-10 years

 

Data processing equipment

 

3-5 years

 

Automobiles and other

 

3-4 years

 

Buildings and improvements

 

7-40 years

 

 

 

Property and equipment, including assets under finance leases, consisted of the following at December 31, 2020 and 2019:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Land

 

$

338

 

 

$

331

 

Buildings and improvements

 

 

32,087

 

 

 

28,840

 

Furniture and fixtures

 

 

28,264

 

 

 

29,898

 

Data processing equipment

 

 

64,781

 

 

 

57,574

 

Automobiles

 

 

314

 

 

 

236

 

Total property and equipment

 

 

125,784

 

 

 

116,879

 

Less accumulated depreciation

 

 

(89,382

)

 

 

(85,454

)

Net property and equipment

 

$

36,402

 

 

$

31,425

 

 

Depreciation on property and equipment, including property under finance leases and amortization of leasehold improvements, was $11,750,000, $11,363,000, and $12,862,000 for the years ended December 31, 2020, 2019, and 2018, respectively.

Capitalized Software

Capitalized software costs reflect costs related to internally developed or purchased software used by the Company that has expected future economic benefits. Certain internal and external costs incurred during the application development stage are capitalized. Costs incurred during the preliminary project and post implementation stages, including training and maintenance costs, are expensed as incurred. The majority of these capitalized software costs consist of internal payroll costs and external payments for software development, purchases and related services. These capitalized software costs are typically amortized over periods ranging from three to ten years, depending on the estimated life of each software application. Amortization expense for capitalized software was $16,709,000, $17,873,000, and $20,066,000 for the years ended December 31, 2020, 2019, and 2018, respectively.

Self-Insured Risks

The Company self-insures certain risks consisting primarily of professional liability, auto liability, and employee medical, disability, and workers' compensation liability. Insurance coverage is obtained for catastrophic property and casualty exposures, including professional liability on a claims-made basis, and those risks required to be insured by law or contract. Most of these self-insured risks are in the U.S. Provisions for claims under the self-insured programs are made based on the Company's estimates of the aggregate liabilities for claims incurred, including estimated legal fees, losses that have occurred but have not been reported to the Company, and for adverse developments on reported losses. The estimated liabilities are calculated based on historical claims experience, the expected lives of the claims, and other factors considered relevant by management. Changes in these estimates may occur as additional information becomes available. The Company believes its provisions for self-insured losses are adequate to cover the expected cost of losses incurred. However, these provisions are estimates and amounts ultimately settled may be significantly greater or less than the provisions established. The estimated liabilities for claims incurred under the Company's self-insured workers' compensation and employee disability programs are discounted at the prevailing risk-free interest rate for U.S. government securities of an appropriate duration. All other self-insured liabilities are undiscounted. At December 31, 2020 and 2019, accrued liabilities for self-insured risks totaled $25,004,000 and $26,838,000, respectively, including current liabilities of $11,390,000 and $11,311,000, respectively. The noncurrent liabilities are included in "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets.

Income Taxes

The Company accounts for certain income and expense items differently for financial reporting and income tax purposes. Provisions for deferred taxes are made in recognition of these temporary differences. The most significant differences relate to accrued compensation, pension plans, self-insurance, and depreciation and amortization.

For financial reporting purposes, the provision for income taxes is the sum of income taxes both currently payable and payable on a deferred basis. Currently payable income taxes represent the liability related to the income tax returns for the current year, while the net deferred tax expense or benefit represents the change in the balance of deferred income tax assets or liabilities as reported on the Company's Consolidated Balance Sheets that are not related to balances in "Accumulated other comprehensive loss." The changes in deferred income tax assets and liabilities are determined based upon changes in the differences between the basis of assets and liabilities for financial reporting purposes and the basis of assets and liabilities for income tax purposes, measured by the enacted statutory tax rates in effect for the year in which the Company estimates these differences will reverse. The Company must estimate the timing of the reversal of temporary differences, as well as whether taxable income in future periods will be sufficient to fully recognize any gross deferred tax assets. A valuation allowance is provided when it is deemed more-likely-than-not that some portion or all of a deferred tax asset will not be realized.

In 2017, the Company estimated the impact of the Tax Cuts and Jobs Act (the "Tax Act") incorporating assumptions made based upon its current interpretation of the Tax Act and included them in its consolidated financial statements for the year ended December 31, 2017. The SEC Staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company recognized provisional tax impacts related to a one-time U.S. tax liability on those earnings a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”) and revaluation of domestic deferred tax balances, and included those amounts in its consolidated financial statements for the year ended December 31, 2017. In the period ended December 31, 2018, the Company completed its accounting for the Tax Act in accordance with SAB 118. As a result, the Company recorded additional income tax expense of $3,583,000. This expense consisted of substantially all of the $6,977,000 valuation allowance established against foreign tax credits and $102,000 for the revaluation of deferred taxes, net of $3,496,000 of Transition Tax release of uncertain tax positions and adjustments. In 2018, the Company completed the accounting for the Tax Act within the one year measurement period, as allowed under SAB 118.

Other factors which influence the effective tax rate used for financial reporting purposes include changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits. See Note 7, "Income Taxes" for further discussion.

Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. At December 31, 2018, the Company elected to account for GILTI in the year the tax is incurred.

Sales and Other Taxes

In certain jurisdictions, both in the U.S. and internationally, various governments and taxing authorities require the Company to assess and collect sales and other taxes, such as value added taxes, on certain services that the Company renders and bills to its customers. The majority of the Company's revenues are not currently subject to these types of taxes. These taxes are not recorded as additional revenues or expenses in the Company's Consolidated Statements of Operations, but are recorded on the Consolidated Balance Sheets as pass-through amounts until remitted.

Foreign Currency

Foreign currency transactions for the years ended December 31, 2020 and 2019 resulted in net losses of $219,000 and $243,000, respectively. Foreign currency transactions for the year ended December 31, 2018 resulted in a net gain of $73,000.

For operations outside the U.S. that prepare financial statements in currencies other than the U.S. dollar, results of operations and cash flows are translated into U.S. dollars at average exchange rates during the period, and assets and liabilities are translated at end-of-period exchange rates. The resulting translation adjustments, on a net basis, are included in "Other Comprehensive Income" in the Company's Consolidated Statements of Comprehensive Income, and the accumulated translation adjustment is reported as a component of "Accumulated other comprehensive loss" in the Company's Consolidated Balance Sheets.

Advertising Costs

Advertising costs are expensed in the period in which the costs are incurred. Advertising expenses were $990,000, $2,394,000, and $3,572,000, respectively, for the years ended December 31, 2020, 2019, and 2018. As several conventions were cancelled as a result of the COVID-19 pandemic, the Company’s advertising costs decreased in 2020.

Adoption of New Accounting Standards

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" together with its subsequent related amendments in 2018 and 2019, collectively referred to as Topic 326. Topic 326 replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value, including trade receivables, with gains and losses recognized through income. The Company estimates its expected credit losses based on past experience, current conditions and reasonable and supportable forecasts affecting collectability of these assets. We evaluate the risks related to our trade receivables and contract assets by considering customer type, geography, and aging. Topic 326 is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted Topic 326 on January 1, 2020 using a modified retrospective approach. As a result of adopting Topic 326, the Company recognized a cumulative effect adjustment to decrease the opening balance of retained earnings by $607,000.

The Company has included assumptions related to expected credit losses from the impact of the COVID-19 pandemic in its results of operations for the year ended December 31, 2020.

Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This update amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, by removing and modifying certain disclosure requirements and adding others. This update removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. This update requires the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, this update clarifies that transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities are required to be disclosed. These updates are effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on disclosures related to fair value measurement.

Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract

In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40).” This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. This update also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Further, this update requires the presentation of the amortization expense in the statement of income, the presentation of the capitalized costs on the statement of financial position and the classification of payments for capitalized costs in the statement of cash flows related to capitalized implementation costs to be treated the same as the fees for service component of the associated hosting arrangement. The update is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on its results of operation, financial condition or cash flows.

Pending Adoption of Recently Issued Accounting Standards

Compensation-Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit Plans

In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)." This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This update removes certain disclosure requirements including, but not limited to, the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the amount and timing of plan assets expected to be returned to the employer. This update requires the disclosure of the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This update also clarifies requirements for entities that provide aggregate disclosures for two or more plans. The update is effective for annual periods beginning after December 15, 2020, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on disclosures related to its retirement plans.

Simplifying the Accounting for Income Taxes

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 amends ASC 740 to simplify the accounting for income taxes by removing certain exceptions for foreign equity investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in the accounting standard under the FASB’s simplification initiative. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Upon adoption, the amendments in ASU 2019-12 should be applied on a prospective basis to all periods presented. Early adoption is permitted. The Company is currently assessing the impact of the adoption of the new guidance.
v3.20.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Revenue Recognition

2.Revenue Recognition

Revenue from Contracts with Customers

Revenues are recognized when control of the promised services are transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are recognized net of any sales, use or value added taxes collected from customers, which are subsequently remitted to governmental authorities. As the Company completes its performance obligations which are identified below, it has an unconditional right to consideration as outlined in the Company's contracts. Generally the Company's accounts receivable are expected to be collected in less than two months, in accordance with the underlying payment terms.

The Company's Crawford Claims Solutions segment generates revenue for claims management services provided to insurance companies and self-insured entities related to property, casualty and catastrophe losses caused by physical damage to commercial and residential real property and certain types of personal property. The Company charges on a fee-per-claim basis for each optional purchase of the claims management services exercised by its customer. Revenue is recognized over time as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document and report the claim and control of these services are transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type for fixed fee claims applied utilizing a portfolio approach based on time elapsed for these claims. For claims billed on a time and expense incurred basis, which are considered variable consideration, the Company recognizes revenue at the amount in which it has the right to invoice for services performed. These methods of revenue recognition are the most accurate depiction of the transfer of the claims management services to the customer. The Company also generates revenue by providing on-demand inspection, verification and other task specific field services for businesses and consumers. Task assignment services are single optional purchase performance obligations which are generally satisfied at a point in time when the control of the service is transferred to the customer. Therefore, revenue is recognized when the customer receives the service requested.

The following table presents Crawford Claims Solutions revenues before reimbursements disaggregated by geography for the years ended December 31, 2020 and 2019. The Company considers all Crawford Claims Solutions revenues to be derived from one service line.

 

 

(In thousands)

 

Year Ended December 31,

 

2020

 

 

2019

 

U.S.

 

$

166,441

 

 

$

136,524

 

U.K.

 

 

65,855

 

 

 

63,715

 

Canada

 

 

34,020

 

 

 

47,712

 

Australia

 

 

47,481

 

 

 

45,417

 

Europe

 

 

28,298

 

 

 

28,915

 

Rest of World

 

 

14,352

 

 

 

17,554

 

Total Crawford Claims Solutions Revenues before Reimbursements

 

$

356,447

 

 

$

339,837

 

 

The Company's Crawford TPA Solutions segment (formerly referred to as "Global TPA Solutions: Broadspire") is a third party administrator that generates revenue through its Claims Management and Medical Management service lines.

The Claims Management service line includes Workers' Compensation, Liability, Property and Disability Claims Management. This service line also performs additional services such as Accident & Health claims programs, including affinity type claims, and disability and leave management services. Each claim referred by the customer is considered an additional optional purchase of claims management services under the agreement with the customer. The transaction price is readily available from the contract and is fixed for each service. Revenue is recognized over time as services are provided as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document, and report the claim and control of these services are transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type applied utilizing a portfolio approach based on time elapsed for these claims as the Company believes this is the most accurate depiction of the transfer of the claims management services to its customer. This service line also provides Risk Management Information Services. For non-claim services, revenue is recognized over time as services are provided and control of these services are transferred to the customer. Revenue is recognized as time elapses as this is the most accurate depiction of the transfer of the service to the customer.

The Company's obligation to manage claims under the Claims Management service line can range from less than one year, on a one- or two-year basis or for the lifetime of the claim. Under certain claims management agreements, the Company receives consideration from a customer at contract inception prior to transferring services to the customer, however, it would begin performing services immediately. The period between a customer’s payment of consideration and the completion of the promised services could be greater than one year. There is no difference between the amount of promised consideration and the cash selling price of the promised services. The fee is billed upfront by the Company in order to provide customers with simplified and predictable ways of purchasing its services and it is customary to invoice service fees when the claim is assigned. The Company considered whether a significant financing component exists and determined that there is not a significant financing component at the contract level.

The Medical Management service line offers case managers who provide administration services by proactively managing medical treatment for claimants while facilitating an understanding of and participation in their rehabilitation process. Revenue for Medical Management services is recognized over time as the performance obligations are satisfied through the effort expended to manage the medical treatment for claimants and control of these services are transferred to the customer. Medical Management services are generally billed based on time incurred, are considered variable consideration, and revenue is recognized at the amount in which the Company has the right to invoice for services performed. This method of revenue recognition is the most accurate depiction of the transfer of the Medical Management service to the customer. Medical Management services also includes medical bill review services, which provide an analysis of medical charges for clients’ claims to identify opportunities for savings. Medical bill review services revenues are recognized over time as control of the service is transferred to the customer. Revenue is recognized based upon the transfer of the results of the medical bill review service to the customer as this is the most accurate depiction of the transfer of the service to the customer.

The following table presents Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2020 and 2019.

 

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

(in thousands)

 

Claims

Management

Services

 

 

Medical

Management

Services

 

 

Total

 

 

Claims

Management

Services

 

 

Medical

Management

Services

 

 

Total

 

U.S.

 

$

143,940

 

 

$

149,506

 

 

$

293,446

 

 

$

144,985

 

 

$

170,256

 

 

$

315,241

 

U.K.

 

 

10,866

 

 

 

—

 

 

 

10,866

 

 

 

11,254

 

 

 

—

 

 

 

11,254

 

Canada

 

 

25,911

 

 

 

—

 

 

 

25,911

 

 

 

33,234

 

 

 

—

 

 

 

33,234

 

Europe and Rest of World

 

 

34,760

 

 

 

—

 

 

 

34,760

 

 

 

34,127

 

 

 

—

 

 

 

34,127

 

Total Crawford TPA Solutions Revenues before Reimbursements

 

$

215,477

 

 

$

149,506

 

 

$

364,983

 

 

$

223,600

 

 

$

170,256

 

 

$

393,856

 

 

The Company's Crawford Specialty Solutions segment principally generates revenues through its Global Technical Services and Contractor Connection service lines.

The Global Technical Services service line generates revenues for claims management services provided to insurance companies and self-insured entities related to large, complex losses with technical adjusting and industry experts. Revenue is recognized over time as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document and report the claim and control of these services are transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type for fixed fee claims, applied utilizing a portfolio approach based on time elapsed for these claims. For claims billed on a time and expense incurred basis, which are considered variable consideration, the Company recognizes revenue at the amount in which it has the right to invoice for services performed. These methods of revenue recognition are the most accurate depiction of the transfer of the claims management services to the customer.

The Contractor Connection service line generates revenue through its independently managed contractor network. Contractor Connection primarily generates revenue by receiving a fee for each project that is sold by its network of contractors. Revenue is recognized at a point in time once the consumer accepts the contractor's proposal as Contractor Connection’s performance obligation of referring projects to its contractors has been completed and the Company is entitled to consideration at that time. The contractor takes control of the service upon the consumer’s acceptance of the contractor’s proposal.

The following table presents Crawford Specialty Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2020 and 2019.

 

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

(in thousands)

 

Global

Technical

Services

 

 

Contractor

Connection

 

 

Total

 

 

Global

Technical

Services

 

 

Contractor

Connection

 

 

Total

 

U.S.

 

$

39,930

 

 

$

71,005

 

 

$

110,935

 

 

$

40,526

 

 

$

76,914

 

 

$

117,440

 

U.K.

 

 

45,212

 

 

 

6,612

 

 

 

51,824

 

 

 

45,803

 

 

 

5,565

 

 

 

51,368

 

Canada

 

 

23,066

 

 

 

6,166

 

 

 

29,232

 

 

 

25,981

 

 

 

7,511

 

 

 

33,492

 

Australia

 

 

21,927

 

 

 

929

 

 

 

22,856

 

 

 

22,273

 

 

 

792

 

 

 

23,065

 

Europe

 

 

20,680

 

 

 

48

 

 

 

20,728

 

 

 

20,540

 

 

 

10

 

 

 

20,550

 

Rest of World

 

 

25,487

 

 

 

—

 

 

 

25,487

 

 

 

26,194

 

 

 

—

 

 

 

26,194

 

Total Crawford Specialty Solutions Revenues before Reimbursements

 

$

176,302

 

 

$

84,760

 

 

$

261,062

 

 

$

181,317

 

 

$

90,792

 

 

$

272,109

 

 

In the normal course of business, the Company incurs certain out-of-pocket expenses that are thereafter reimbursed by its customers. The Company controls the promised good or service before it is transferred to its customer, therefore it is a principal in the transaction. These out-of-pocket expenses and associated reimbursements are reported on a gross basis within expenses and revenues, respectively, in the Company's Consolidated Statements of Operations.

Arrangements with Multiple Performance Obligations

For claims management services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company sells multiple types of claims processing and different levels of processing depending on the complexity of the claims. The Company typically provides a menu of offerings from which the customer chooses to purchase at their option. The price of each service is separate and distinct and provides a separate and distinct value to the customer. Pricing is consistent for each service irrespective of the other services or quantities requested by the customer. For example, if the Company provides claims processing for both auto and general liability, those services are priced and delivered independently.

Contract Balances

The timing of revenue recognition, billings and cash collections result in billed accounts receivables, contract assets (reported as unbilled revenues at estimated billable amounts) and contract liabilities (reported as deferred revenues) on the Company’s Consolidated Balance Sheets. Unbilled revenues is a contract asset for revenue that has been recognized in advance of billing the customer, resulting from professional services delivered that we expect and are entitled to receive as consideration under certain contracts. Billing requirements vary by contract but substantially all unbilled revenues are billed within one year.

When the Company receives consideration from a customer prior to transferring services to the customer under the terms of certain claims management agreements, it records deferred revenues on the Company’s Consolidated Balance Sheets, which represents a contract liability. These fixed-fee service agreements typically result from the Crawford TPA Solutions segment and require the Company to handle claims on either a one- or two-year basis, or for the lifetime of the claim. In cases where it handles a claim on a non-lifetime basis, the Company typically receives an additional fee on each anniversary date that the claim remains open. For service agreements where it provides services for the life of the claim, the Company is paid one upfront fee regardless of the duration of the claim. The Company recognizes deferred revenues as revenues as it performs services and transfers control of the services to the customer and satisfies the performance obligation which it determines utilizing a portfolio approach.

The Company's deferred revenues for claims handled for one or two years are not as sensitive to changes in claim closing rates since the performance obligations are satisfied within a fixed length of time. Deferred revenues for lifetime claim handling are more sensitive to changes in claim closing rates since the Company is obligated to handle these claims to conclusion with no additional fees received for long-lived claims. For all fixed fee service agreements, revenues are recognized over the expected service periods, by type of claim. Based upon its historical averages, the Company closes approximately 99% of all cases referred to it under lifetime claim service agreements within five years from the date of referral. Also, within that five-year period, the percentage of cases remaining open in any one particular year has remained relatively consistent from period to period. Each quarter the Company evaluates its historical case closing rates by type of claim utilizing a portfolio approach and makes adjustments to deferred revenues as necessary. As a portfolio approach is utilized to recognize deferred revenues, any changes in estimates will impact timing of revenue recognition and any changes in estimates are recognized in the period in which they are determined.

The table below presents the deferred revenues balance as of January 1, 2020 and the significant activity affecting deferred revenues during the year ended December 31, 2020:

 

(In Thousands)

 

 

 

 

Customer Contract Liabilities:

 

Deferred Revenue

 

Balance at January 1, 2020

 

$

52,368

 

Annual additions

 

 

76,379

 

Revenue recognized from prior periods

 

 

(34,943

)

Revenue recognized from current year additions

 

 

(42,435

)

Balance as of December 31, 2020

 

$

51,369

 

Remaining Performance Obligations

As of December 31, 2020, the Company had $88,917,000 of remaining performance obligations related to claims and non-claims services in which the price is fixed. Remaining performance obligations consist of deferred revenues as well as certain unbilled receivables that are considered contract assets. The Company expects to recognize approximately 70% of our remaining performance obligations as revenues within one year and the remaining balance thereafter. See the discussion below regarding the practical expedients elected for the disclosure of remaining performance obligations.

Costs to Obtain a Contract

The Company has a sales incentive compensation program where remuneration is based on the revenues recognized in the period and does not represent an incremental cost to the Company which provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented as a contract asset on the Company's Consolidated Balance Sheets.

Practical Expedients Elected

As a practical expedient, the Company does not adjust the consideration in a contract for the effects of a significant financing component it expects, at contract inception, when the period between a customer’s payment of consideration and the transfer of promised services to the customer will be one year or less.

For claims management services that are billed on a time and expense incurred or per unit basis and revenue is recognized over time, the Company recognizes revenue at the amount to which it has the right to invoice for services performed.

The Company does not disclose the value of remaining performance obligations for (i) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed, and (ii) contracts with variable consideration allocated entirely to a single performance obligation.
v3.20.4
Business Acquisitions and Dispositions
 12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Business Acquisitions and Dispositions

3.

Business Acquisitions and Dispositions

Dispositions

On June 1, 2020, the Company sold its 51% interest in Crawford Compliance Inc. to a third party in exchange for a note receivable. The Company recognized a loss on the disposal of this entity of $912,000 in 2020. The results of Crawford Compliance Inc. were not material to the Company.

On June 12, 2020, the Company sold its 51% interest in Lloyd Warwick International (“LWI”) to a third party for cash proceeds of $19,600,000 and payment of $3,600,000 to settle intercompany indebtedness. The Company recognized an additional $700,000 related to net working capital adjustments under the terms of the acquisition agreement, which increased the purchase price to $20,300,000. The Company recognized a total gain of $14,700,000 ($11,700,000 net of tax) on the disposition for the year ended December 31, 2020.

Acquisitions

On July 21, 2020, the Company acquired the remaining 15% membership interests of WeGoLook, LLC for $310,000. The Company accounted for this subsequent acquisition as an equity transaction in accordance with ASC 810-10, “Consolidation”. The non-compete agreements with the former minority members were terminated under the terms of the purchase agreement. As a result, the Company recognized $1,100,000 of accelerated amortization on the non-compete agreement in 2020.

On October 1, 2020, the Company acquired most of the remaining 85% equity interests in Crawford Carvallo and its subsidiaries. Crawford Carvallo is a leading provider of loss adjusting, claims management solutions and legal services in Chile. The Company held a 15% interest in Crawford Carvallo prior to this acquisition.

The purchase price includes an initial cash payment of $11,600,000 and a maximum of $11,700,000 payable over the next six years based on achieving certain EBITDA performance goals as set forth in the purchase agreement. Net tangible assets acquired totaled $15,120,000, including $1,599,000 of cash. The difference between the aggregate fair value of total purchase considerations and the previously held noncontrolling interest, and the net tangible assets acquired represents definite-lived intangible assets, goodwill, and noncontrolling interest. The acquisition was funded primarily through additional borrowings under the Company's credit facility.

The preliminary valuation of the assets acquired and liabilities assumed for Crawford Carvallo is as follows:

(in thousands)

 

Opening Balance Sheet, Adjusted as of

December 31, 2020

 

 

 

 

 

 

Assets

 

 

 

 

Cash and cash equivalents

 

$

1,599

 

Accounts receivable, net

 

 

3,662

 

Unbilled revenue, at estimated billable amounts

 

 

2,930

 

Prepaid expenses and other current assets

 

 

3,613

 

Property and equipment, net

 

 

828

 

Purchased software, net

 

 

459

 

Operating lease right-of-use-asset, net

 

 

8,743

 

Goodwill

 

 

5,501

 

Intangible assets

 

 

7,600

 

Other noncurrent assets

 

 

277

 

Total Assets

 

 

35,212

 

 

 

 

 

 

Liabilities

 

 

 

 

Accounts payable

 

 

1,014

 

Accrued expenses

 

 

3,870

 

Tax liability

 

 

662

 

Lease liabilities

 

 

8,743

 

Long-term debt and other liabilities

 

 

5,803

 

Total Liabilities

 

 

20,092

 

Net Assets Acquired, Before Noncontrolling Interests

 

 

15,120

 

Noncontrolling interest

 

 

489

 

Net Assets Acquired, After Noncontrolling Interests

 

$

14,631

 

 

Intangible assets acquired include customer relationships, trademarks, internally developed software and non-compete agreements. The intangibles acquired are made up of customer relationships of $4,400,000 being amortized over an estimated life of 15 years, and the remaining assets listed above are being amortized over 10 years. Goodwill is attributable to the synergies of the work force in place and business resources as a result of the combination of the companies. The Company does not expect that goodwill attributable to the acquisition will be deductible for tax purposes. The financial results of certain of the Company’s international subsidiaries, including Crawford Carvallo, are included in the Company’s consolidated financial statements on a two-month delayed basis. For the year ended December 31, 2020, Crawford Carvallo reported revenue of $2,214,000 in the Company's consolidated revenues before reimbursements. The results of Crawford Carvallo are reported in Crawford Specialty Solutions and Crawford TPA Solutions segments. For the year ended December 31, 2020, Crawford Carvallo’s contribution to the Company's earnings and earnings per share were not material and as such, no pro forma financial information is required to be presented.

During the year ended December 31, 2019, the Company acquired a Global Technical Services business in Europe for total consideration of approximately $2,431,000 which is comprised of $1,519,000 paid at closing, net of cash acquired of $135,000, $234,000 to be paid in one year, $351,000 to be paid in three years and contingent earnout consideration of $327,000. The acquisition was accounted for under the guidance of ASC 805-10, as a business combination under the acquisition method. As a result of the acquisition, the Company recognized definite lived intangible assets of $951,000 and goodwill of $1,164,000. The results of the acquisition is reported within the Company's Crawford Specialty Solutions operating segment.

During the year ended December 31, 2018, the Company acquired two separate Global Technical Services businesses in Canada for total consideration of approximately $3,400,000 which is comprised of $2,500,000 paid at closing, net of cash acquired of $134,000, $348,000 to be paid in one year and contingent earnout consideration of $377,000. The acquisitions were accounted for under the guidance of ASC 805-10, as business combinations under the acquisition method. As a result of the acquisitions, the Company recognized net tangible assets of $462,000, net of both the deferred payment and contingent earnout, definite lived intangible assets of $1,094,000, goodwill of $1,296,000 and deferred taxes of $202,000. The results of the acquisitions are reported within the Company's Crawford Specialty Solutions operating segment.
v3.20.4
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

4.Goodwill and Intangible Assets

Goodwill

The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019:

 

 

 

Crawford

Claims

Solutions

 

 

Crawford TPA

Solutions

 

 

Crawford

Specialty

Solutions

 

 

Total

 

 

 

(In thousands)

 

Balance at December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

55,553

 

 

$

168,730

 

 

$

73,621

 

 

$

297,904

 

Accumulated impairment losses

 

 

(20,407

)

 

 

(159,424

)

 

 

(21,183

)

 

$

(201,014

)

Net goodwill

 

 

35,146

 

 

 

9,306

 

 

 

52,438

 

 

 

96,890

 

2019 Activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill of acquired businesses

 

 

—

 

 

 

—

 

 

 

1,164

 

 

 

1,164

 

Impairment of goodwill

 

 

(17,484

)

 

 

—

 

 

 

—

 

 

 

(17,484

)

Foreign currency effects

 

 

6

 

 

 

4

 

 

 

62

 

 

 

72

 

Balance at December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

55,559

 

 

 

168,734

 

 

 

74,847

 

 

 

299,140

 

Accumulated impairment losses

 

 

(37,891

)

 

 

(159,424

)

 

 

(21,183

)

 

 

(218,498

)

Net goodwill

 

 

17,668

 

 

 

9,310

 

 

 

53,664

 

 

 

80,642

 

2020 Activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill of acquired businesses

 

 

—

 

 

 

2,857

 

 

 

2,644

 

 

 

5,501

 

Impairment of goodwill

 

 

(17,674

)

 

 

—

 

 

 

—

 

 

 

(17,674

)

Goodwill of disposed business

 

 

—

 

 

 

—

 

 

 

(1,990

)

 

 

(1,990

)

Foreign currency effects

 

 

6

 

 

 

12

 

 

 

40

 

 

 

58

 

Balance at December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

55,565

 

 

 

171,603

 

 

 

75,541

 

 

 

302,709

 

Accumulated impairment losses

 

 

(55,565

)

 

 

(159,424

)

 

 

(21,183

)

 

 

(236,172

)

Net goodwill

 

$

—

 

 

$

12,179

 

 

$

54,358

 

 

$

66,537

 

The Company recognized a non-cash goodwill impairment charge in 2020 totaling $17,674,000 related to the valuation of its Crawford Claims Solutions reporting unit. The Company recognized a non-cash goodwill impairment in the Crawford Claims

Solution reporting unit of $17,484,000 during the year ended December 31, 2019. There were no goodwill impairment charges in 2018. These impairment charges did not affect the Company's liquidity and had no effect on the Company's compliance with the financial covenants under its Credit Facility.

Intangible Assets

The following is a summary of finite-lived intangible assets acquired through business acquisitions as of December 31, 2020 and 2019:

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net

Carrying

Value

 

 

Weighted-

Average

Amortization

Period

 

 

(In thousands, except years)

 

 

 

December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

131,948

 

 

$

(101,319

)

 

$

30,629

 

 

3.3 years

Technology-based

 

 

18,183

 

 

 

(10,174

)

 

$

8,009

 

 

6.5 years

Trade name

 

 

3,123

 

 

 

(1,737

)

 

$

1,386

 

 

6.0 years

Other

 

 

5,794

 

 

 

(5,489

)

 

$

305

 

 

10.1 years

Total

 

$

159,048

 

 

$

(118,719

)

 

$

40,329

 

 

6.7 years

December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

127,362

 

 

$

(92,354

)

 

$

35,008

 

 

4.0 years

Technology-based

 

 

16,562

 

 

 

(9,108

)

 

 

7,454

 

 

7.0 years

Trade name

 

 

1,795

 

 

 

(1,636

)

 

 

159

 

 

1.7 years

Other

 

 

5,485

 

 

 

(3,869

)

 

 

1,616

 

 

1.8 years

Total

 

$

151,204

 

 

$

(106,967

)

 

$

44,237

 

 

3.8 years

Amortization of finite-lived intangible assets was $11,653,000, $11,277,000, and $11,152,000 for the years ended December 31, 2020, 2019, and 2018, respectively. These amortization expenses were excluded from segment operating earnings (see Note 13, "Segment and Geographic Information"). Intangible assets subject to amortization are amortized on a straight-line basis over lives ranging from 2 to 15 years.

At December 31, 2020, annual estimated aggregate amortization expense for intangible assets subject to amortization for the next five years is as follows:

 

 

 

Annual

Amortization

Expense

 

Year Ending December 31,

 

(In thousands)

 

2021

 

$

9,678

 

2022

 

 

4,711

 

2023

 

 

4,614

 

2024

 

 

4,152

 

2025

 

 

4,050

 

The following is a summary of indefinite-lived intangible assets at December 31, 2020 and 2019:

 

 

 

Gross Carrying

Amount

 

 

Accumulated

Impairments

 

 

Net Carrying

Value

 

 

 

(In thousands)

 

December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

$

32,503

 

 

$

(1,656

)

 

$

30,847

 

December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

$

32,502

 

 

$

(1,656

)

 

$

30,846

 
v3.20.4
Short-Term and Long-Term Debt, Including Finance Leases
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Short-Term and Long-Term Debt, Including Finance Leases

5.

Short-Term and Long-Term Debt, Including Finance Leases

Long-term debt consisted of the following at December 31, 2020 and 2019:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Credit Facility

 

$

112,855

 

 

$

176,877

 

Finance lease and other obligations

 

 

740

 

 

 

77

 

Total long-term debt and finance leases

 

 

113,595

 

 

 

176,954

 

Less: portion of Credit Facility classified as short-term

 

 

(1,570

)

 

 

(28,531

)

Less: current installments of finance leases and other obligations

 

 

(267

)

 

 

(15

)

Total long-term debt and finance leases, less current installments

 

$

111,758

 

 

$

148,408

 

On October 11, 2017, the Company, its subsidiaries Crawford & Company Risk Services Investments Limited (the "UK Borrower"), Crawford & Company (Canada) Inc. (the "Canadian Borrower") and Crawford & Company (Australia) Pty. Ltd. (the "Australian Borrower") (the Company, together with such subsidiaries, as borrowers (the "Borrowers")), Wells Fargo Bank, National Association, as administrative agent and a lender ("Wells Fargo"), Bank of America, N.A., as syndication agent and a lender, Citizens Bank, N.A., as documentation agent and a lender, and the other lenders party thereto, entered into an Amended and Restated Credit Agreement (the "Amended and Restated Credit Agreement"), which amended and restated that certain Credit Agreement, dated as of December 8, 2011, by and among, inter alia, the Borrowers, Wells Fargo and the other lenders from time to time party thereto (as previously amended, the "Original Credit Agreement"). In connection with the Amended and Restated Credit Agreement, the Company, the Company’s guarantor subsidiaries party thereto and Wells Fargo entered into an Amended and Restated Pledge and Security Agreement (the "Amended and Restated Pledge and Security Agreement") and an Amended and Restated Guaranty Agreement (the "Amended and Restated Guaranty Agreement"), each dated as of the date of the Amended and Restated Credit Agreement.

On September 18, 2020, the Company amended the Credit Facility. Pursuant to this amendment, (a) the Company is permitted to make, in addition to the other investments permitted under the Credit Facility prior to the amendment, investments of an unrestricted nature up to the aggregate outstanding amount not to exceed $5,000,000 at any time and (b) the terms of LIBOR replacement when that benchmark is no longer available have been modified.

The Credit Facility under the Amended and Restated Credit Agreement consists of a $450,000,000 revolving credit facility, with a letter of credit subcommitment of $100,000,000. The Credit Facility contains sublimits of $185,000,000 for borrowings by the UK Borrower, $75,000,000 for borrowings by the Canadian Borrower, and $32,500,000 for borrowings by the Australian Borrower. The Credit Facility matures, and all amounts outstanding thereunder, will be due and payable on November 23, 2022.

Borrowings under the Credit Facility may be made in U.S. dollars, Euros, the currencies of Canada, Japan, Australia or the United Kingdom and, subject to the terms of the Credit Facility, other currencies. Borrowings under the Credit Facility bear interest, at the option of the applicable Borrower, based on the Base Rate (as defined below) or the London Interbank Offered Rate ("LIBOR"), in each case plus an applicable interest margin based on the Company's leverage ratio (as defined below), provided that borrowings in foreign currencies may bear interest based on LIBOR only. The Credit Facility defines LIBOR to encompass accepted alternative reference rates for certain currencies where a LIBOR rate is no longer quoted. The interest margin for LIBOR loans ranges from 1.30% to 2.10% and for Base Rate loans ranges from 0.30% to 1.10%. Base Rate is defined as the highest of (i) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 1/2 of 1%, (ii) the prime commercial lending rate of Wells Fargo and (iii) LIBOR for a one month interest period plus 1.0%.

At December 31, 2020, a total of $112,855,000 was outstanding and there was an undrawn amount of $11,512,000 under the letters of credit subcommitment of the Credit Facility. These letter of credit commitments were for the Company's own obligations. Including the amounts committed under the letters of credit subcommitment, the available borrowing capacity under the Credit Facility totaled $325,653,000 at December 31, 2020.

The obligations of the Borrowers under the Amended and Restated Credit Agreement are guaranteed by each existing material domestic subsidiary of the Company, certain other domestic subsidiaries of the Company and certain existing material foreign subsidiaries of the Company that are disregarded entities for U.S. income tax purposes (each such foreign subsidiary, a "Disregarded Foreign Subsidiary"), and such obligations are required to be guaranteed by each subsequently acquired or formed material domestic subsidiary and Disregarded Foreign Subsidiary (each, a "Guarantor"), and the obligations of the Borrowers other than the Company ("Foreign Borrowers") for which the Company is not the primary obligor are also guaranteed by the Company. In addition, (i) the Borrowers’ obligations under the Amended and Restated Credit Agreement are secured by a first priority lien (subject to liens permitted by the Amended and Restated Credit Agreement) on substantially all of the personal property of the Company and the Guarantors as set forth in the Amended and Restated Pledge and Security Agreement and (ii) the obligations of the Foreign Borrowers are secured by a first priority lien on 100% of the capital stock of the Foreign Borrowers.

The representations, covenants and events of default in the Credit Facility are customary for financing transactions of this nature, including required compliance with a minimum fixed charge coverage ratio and a maximum leverage ratio (each as defined below).

Under the Credit Facility as amended, the senior secured leverage ratio, defined as the ratio of (i) consolidated total funded debt (excluding unsecured or subordinated debt) minus unrestricted cash to (ii) consolidated EBITDA, must not be greater than 3.25 to 1.00 at the end of each fiscal quarter. In addition, the maximum permitted total leverage ratio allowable at the end of each quarter, which includes any unsecured or subordinated debt, must not be greater than 4.25 to 1.00.

Also under the Credit Facility as amended, the fixed charge coverage ratio, defined as the ratio of (i)(A) consolidated earnings before interest expense, income taxes, depreciation, amortization, stock-based compensation expense, and certain other charges and expenses ("EBITDA") minus (B) aggregate income taxes to the extent paid in cash minus (C) unfinanced capital expenditures to (ii) the sum of: (A) consolidated interest expense to the extent paid (or required to be paid) in cash, plus (B) the aggregate of all scheduled payments of principal on funded debt (including the principal component of payments made in respect of finance lease obligations) required to have been made (whether or not such payments are actually made), plus (C) the aggregate of all restricted payments (as defined) paid, plus (D) the aggregate of all earnouts paid or required to be paid, must not be less than 1.10 to 1.00 for the four-quarter period ending at the end of each fiscal quarter.

At December 31, 2020, the Company was in compliance with the financial covenants under the Credit Facility. If the Company does not meet the covenant requirements in the future, it would be in default under the Credit Facility. Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Credit Facility and ancillary loan documents.

Short-term borrowings under the Credit Facility totaled $1,570,000 and $28,531,000 at December 31, 2020 and 2019, respectively. The Company expects, but is not required, to repay all of such short-term borrowings at December 31, 2020 in 2021.

The Company's finance leases are primarily comprised of equipment leases with terms ranging from 24 to 60 months.

Interest expense, including amortization of capitalized loan costs, on the Company's short-term and long-term borrowings was $8,187,000, $11,519,000, and $11,399,000 for the years ended December 31, 2020, 2019, and 2018, respectively. Interest paid on the Company's short-term and long-term borrowings was $7,152,000, $10,470,000, and $10,381,000 for the years ended December 31, 2020, 2019, and 2018, respectively.

Principal repayments of long-term debt, including current portions, finance leases and other obligations, as of December 31, 2020 are expected to be as follows, assuming no prepayments or extensions beyond the stated maturity:

 

 

 

Long-term Debt

 

 

Finance Lease and Other Obligations

 

 

Total

 

Year Ending December 31,

 

(In thousands)

 

2021

 

$

1,570

 

 

$

267

 

 

$

1,837

 

2022

 

 

111,285

 

 

 

239

 

 

 

111,524

 

2023

 

 

—

 

 

 

164

 

 

 

164

 

2024

 

 

—

 

 

 

47

 

 

 

47

 

2025

 

 

—

 

 

 

23

 

 

 

23

 

Total

 

$

112,855

 

 

$

740

 

 

$

113,595

 
v3.20.4
Lease Commitments
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Lease Commitments

6.

Lease Commitments

The Company determines if an arrangement is a lease at inception. The Company's and its subsidiaries' leases include office space, computer equipment, and automobiles under operating and finance leases. These lease agreements have remaining lease terms of 1 to 12 years. Some of these lease agreements include options to extend the leases for up to 5 years, options to terminate the leases within 1 year, rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.

For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement.

The Company, as sublessor, subleases certain office space which mostly consists of a two-building office complex in Plantation, Florida in which the terms of the primary lease and the related subleases end in December 2021. Under each of the executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $4,180,000 in 2021 and $110,000 in 2022.

The Company's finance leases are not material as of the year ended December 31, 2020 and are excluded from the disclosures below. The following table presents the lease-related assets and liabilities recorded on the Company's Consolidated Balance Sheets related to its operating leases:

 

(in thousands)

 

Classification on Balance Sheet

 

December 31,

2020

 

December 31,

2019

 

Assets:

 

 

 

 

 

 

 

 

 

Operating lease

 

Operating lease right-of-use assets, net

 

$

109,315

 

$

102,354

 

Liabilities:

 

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

Current operating lease liabilities

 

 

32,745

 

 

30,765

 

Noncurrent operating lease liabilities

 

Noncurrent operating lease liabilities

 

 

93,228

 

 

87,064

 

Total operating lease liabilities

 

 

 

$

125,973

 

$

117,829

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Remaining Lease Term

 

 

 

6.30 years

 

5.72 years

 

Weighted-Average Discount Rate (1)

 

 

 

 

5.3

%

 

5.4

%

(1)

Upon adoption of Topic 842, discount rates used for existing leases were established at the transition date of January 1, 2019.

The components of operating lease costs within the Company's Consolidated Statements of Operations consisted of the following:

 

 

 

Year Ended

 

(in thousands)

 

December 31, 2020

 

December 31, 2019

 

Operating lease cost

 

$

38,242

 

$

37,824

 

Variable lease cost

 

 

8,037

 

 

7,948

 

Sublease income

 

 

4,090

 

 

4,163

 

 

Supplemental cash flow information related to operating leases were as follows:

 

 

 

Year Ended

 

(in thousands)

 

December 31, 2020

 

December 31, 2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

37,091

 

$

38,906

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations (1)

 

$

40,535

 

$

30,056

 

 

(1)

The year ended December 31, 2019 amount excludes $122,300,000 of right-of-use assets recognized upon adoption of Topic 842.

 

Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows:

 

(in thousands)

 

December 31, 2020

 

2021

 

$

37,976

 

2022

 

 

25,214

 

2023

 

 

17,686

 

2024

 

 

14,496

 

2025

 

 

11,770

 

Thereafter

 

 

41,624

 

Total undiscounted lease payments

 

 

148,766

 

Less imputed interest

 

 

(22,793

)

Present value of future lease payments

 

$

125,973

 

The Company has entered into operating lease agreements that have not yet commenced as of December 31, 2020 with legally binding minimum lease payments of $2,370,000. The leases are expected to commence during the three months ended March 31, 2021, and have lease terms between 5 years and 10 years.
v3.20.4
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

7.

Income Taxes

Income before income taxes consisted of the following:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

U.S.

 

$

(1,029

)

 

$

(1,472

)

 

$

4,634

 

Foreign

 

 

40,117

 

 

 

25,109

 

 

 

39,497

 

Income before income taxes

 

$

39,088

 

 

$

23,637

 

 

$

44,131

 

The provision for income taxes consisted of the following:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal and state

 

$

12,561

 

 

$

1,546

 

 

$

1,065

 

Foreign

 

 

8,457

 

 

 

9,525

 

 

 

9,530

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal and state

 

 

(8,870

)

 

 

1,643

 

 

 

4,051

 

Foreign

 

 

(135

)

 

 

1,397

 

 

 

3,896

 

Provision for income taxes

 

$

12,013

 

 

$

14,111

 

 

$

18,542

 

Net cash payments for income taxes were $12,216,000, $16,996,000, and $8,168,000 in 2020, 2019, and 2018, respectively.

The provision for income taxes is reconciled to the federal statutory income tax rate of 21% in 2020, 2019, and 2018, as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Federal income taxes at statutory rate

 

$

8,208

 

 

$

4,964

 

 

$

9,267

 

State income taxes, net of federal benefit

 

 

325

 

 

 

505

 

 

 

2,685

 

Goodwill impairment

 

 

2,322

 

 

 

1,883

 

 

 

—

 

Foreign taxes

 

 

3,328

 

 

 

2,276

 

 

 

2,150

 

Change in valuation allowance

 

 

(374

)

 

 

3,919

 

 

 

9,540

 

Research and development credits

 

 

(1,001

)

 

 

(626

)

 

 

(273

)

Foreign tax credits

 

 

(1,150

)

 

 

(283

)

 

 

(429

)

Nondeductible meals and entertainment

 

 

377

 

 

 

724

 

 

 

782

 

US tax reform - revaluation of deferred taxes

 

 

—

 

 

 

—

 

 

 

102

 

US tax reform - transition tax, net of credits

 

 

—

 

 

 

—

 

 

 

(3,496

)

Change in permanent reinvestment assertion

 

 

776

 

 

 

—

 

 

 

(1,792

)

Disposals and liquidations of businesses

 

 

(935

)

 

 

—

 

 

 

—

 

Global intangible low-tax income, net of credits

 

 

(54

)

 

 

892

 

 

 

454

 

Foreign-derived intangible income deduction

 

 

(115

)

 

 

(315

)

 

 

(323

)

Tax rate changes

 

 

(359

)

 

 

486

 

 

 

(392

)

Other

 

 

665

 

 

 

(314

)

 

 

267

 

Provision for income taxes

 

$

12,013

 

 

$

14,111

 

 

$

18,542

 

The Company's consolidated effective income tax rate may change periodically due to changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits.

The Company's effective income tax rate in 2020 was impacted by goodwill impairment charges, disposals and liquidations of businesses, and deferred taxes attributable to undistributed foreign earnings that are no longer permanently reinvested. The Company's effective income tax rate in 2019 was impacted by goodwill impairment charges, arbitration and claim settlements, and valuation allowance establishment on certain state net operating losses. The Company's effective income tax rate in 2018 was impacted by a valuation allowance on certain Foreign Tax Credits, the Tax Cuts and Jobs Act in the U.S. (the "Tax Act"), and one-time income tax planning activities.

During 2018, the Company completed its accounting for the Tax Act in accordance with SAB 118. As a result, the Company recorded additional income tax expense of $3,583,000. This expense consisted of substantially all of the $6,977,000 valuation allowance established against foreign tax credits and $102,000 for the revaluation of deferred taxes, net of $3,496,000 of Transition Tax release of uncertain tax positions and adjustments.

During 2020, the Company released its permanent reinvestment position on a portion of prior year undistributed earnings for certain foreign operations and accrued deferred taxes attributable to these earnings. Beyond these earnings we have not changed the reinvestment assertion on our undistributed earnings or other outside basis differences of our remaining foreign subsidiaries. Excluding the change in position for certain foreign operations, no additional income or withholding taxes have been provided for indefinitely reinvested undistributed foreign earnings, other than those subject to the Transition Tax nor have any taxes been provided for outside basis difference inherent in these entities as these amounts continue to be indefinitely reinvested in foreign operations. We have estimated that we have book over tax basis differences of approximately $89,510,000. Due to withholding tax, basis computations, and other related tax considerations, it is not practicable to estimate any taxes to be provided on outside basis differences at this time.

Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. At December 31, 2018, the Company elected to account for GILTI in the year the tax is incurred.

Deferred income taxes consisted of the following at December 31, 2020 and 2019:

 

 

 

2020

 

 

2019

 

 

 

(In thousands)

 

Accounts receivable allowance

 

$

1,019

 

 

$

1,163

 

Accrued compensation

 

 

14,655

 

 

 

9,553

 

Accrued pension liabilities

 

 

4,950

 

 

 

9,116

 

Self-insured risks

 

 

5,746

 

 

 

4,301

 

Deferred revenues

 

 

5,376

 

 

 

4,249

 

Interest

 

 

2,419

 

 

 

5,399

 

Tax credit carryforwards

 

 

7,090

 

 

 

11,634

 

Loss carryforwards

 

 

22,805

 

 

 

25,523

 

Lease liability

 

 

31,435

 

 

 

29,785

 

Other

 

 

2,158

 

 

 

3,436

 

Gross deferred income tax assets

 

 

97,653

 

 

 

104,159

 

Unbilled revenues

 

 

5,311

 

 

 

6,522

 

Repatriated earnings

 

 

776

 

 

 

—

 

Depreciation and amortization

 

 

23,474

 

 

 

28,025

 

Lease right-of-use asset

 

 

27,513

 

 

 

25,865

 

Gross deferred income tax liabilities

 

 

57,074

 

 

 

60,412

 

Net deferred income tax assets before valuation allowance

 

 

40,579

 

 

 

43,747

 

Valuation allowance

 

 

(16,579

)

 

 

(28,128

)

Net deferred income tax assets

 

$

24,000

 

 

$

15,619

 

Amounts recognized in the Consolidated Balance Sheets consist of:

 

 

 

 

 

 

 

 

Long-term deferred income tax assets included in "Deferred income tax assets"

 

 

25,595

 

 

 

17,971

 

Long-term deferred income tax liabilities included in "Other noncurrent liabilities"

 

 

(1,595

)

 

 

(2,352

)

Net deferred income tax assets

 

$

24,000

 

 

$

15,619

 

At December 31, 2020, the Company had deferred tax assets related to loss carryforwards of $23,033,000, before netting of unrecognized tax benefits of $228,000. An estimated $15,936,000 of the deferred tax assets will not expire, and $7,097,000 will expire over the next 20 years if not utilized by the Company.

Changes in the Company's deferred tax valuation allowance are recorded as adjustments to the provision for income taxes. An analysis of the Company's deferred tax asset valuation allowances is as follows for the years ended December 31, 2020, 2019, and 2018.

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Balance, beginning of year

 

$

28,128

 

 

$

25,864

 

 

$

18,829

 

Other changes

 

 

(11,549

)

 

 

2,264

 

 

 

7,035

 

Balance, end of year

 

$

16,579

 

 

$

28,128

 

 

$

25,864

 

Changes to the valuation allowance for the year ended December 31, 2020 were primarily due to anticipated expiration of certain foreign tax credits after consideration of the four sources of taxable income and disposals and liquidations of businesses, net of losses in certain of the Company’s international operations. Changes to the valuation allowance for the year ended December 31, 2019 were primarily due to anticipated expiration of certain state NOLs after consideration of the four sources of taxable income and losses in certain of the Company’s international operations. Changes to the valuation allowance for the year ended December 31, 2018 were primarily due to anticipated expiration of foreign tax credits after consideration of the Tax Act and the four sources of taxable income and losses in certain of the Company’s international and domestic operations.

A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows: 

 

 

 

(In thousands)

 

Balance at December 31, 2017

 

$

11,297

 

Additions for tax provisions related to the current year

 

 

54

 

Reductions for tax positions related to prior years

 

 

(3,941

)

Currency translation adjustment

 

 

(9

)

Balance at December 31, 2018

 

$

7,401

 

Additions for tax provisions related to the current year

 

 

515

 

Additions for tax positions related to prior years

 

 

646

 

Reductions for tax positions related to prior years

 

 

(113

)

Reductions for settlements

 

 

(2,642

)

Lapses of applicable statutes of limitation

 

 

(520

)

Balance at December 31, 2019

 

$

5,287

 

Additions for tax provisions related to the current year

 

 

92

 

Additions for tax positions related to prior years

 

 

2

 

Reductions for tax positions related to prior years

 

 

(505

)

Reductions for settlements

 

 

(516

)

Lapses of applicable statutes of limitation

 

 

(582

)

Balance at December 31, 2020

 

$

3,778

 

The Company accrues interest and, if applicable, penalties related to unrecognized tax benefits in income taxes. Total accrued interest expense at December 31, 2020, 2019, and 2018, was $89,000, $256,000, and $256,000, respectively.

Included in the total unrecognized tax benefits at December 31, 2020, 2019, and 2018 were $713,000, $1,940,000, and $5,493,000, respectively, of tax benefits that, if recognized, would affect the effective income tax rate.

The Company conducts business in a number of countries and, as a result, files U.S. federal and various state and foreign jurisdiction income tax returns. In the normal course of business, the Company is subject to examination by various taxing jurisdictions throughout the world, including Canada, the U.K., and the U.S. With few exceptions, the Company is no longer subject to income tax examinations for years before 2010.

Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, including interest and penalties, have been provided for any adjustments that are expected to result from those years.

The Company does not expect any material reductions to unrecognized income tax benefits within the next 12 months as a result of projected resolutions of income tax uncertainties.
v3.20.4
Retirement Plans
 12 Months Ended
Dec. 31, 2020
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

8.

Retirement Plans

The Company and its subsidiaries sponsor various retirement plans. Substantially all employees in the U.S. and certain employees outside the U.S. are covered under the Company's defined contribution plans. Certain employees, retirees, and eligible dependents are also covered under the Company's defined benefit pension plans.

Employer contributions under the Company's defined contribution plans are determined annually based on employee contributions, a percentage of each covered employee's compensation, and years of service. The Company's cost for defined contribution plans totaled $23,641,000, $25,226,000, and $23,417,000 in 2020, 2019, and 2018, respectively.

The Company sponsors a qualified defined benefit pension plan in the U.S. (the "U.S. Qualified Plan") and three defined benefit pension plans in the U.K. (the "U.K. Plans"). Effective December 31, 2002, the Company elected to freeze its U.S. Qualified Plan. Benefits payable under the Company's U.S. Qualified Plan are generally based on career compensation; however, no additional benefits have accrued on this plan since December 31, 2002. The Company's U.K. Plans were closed to new participants as of October 31, 1997, but existing participants may still accrue additional limited benefits based on salary amounts in effect at the time the relevant plan was closed. Benefits payable under the U.K. Plans are generally based on an employee's final salary at the time the plan was closed. Benefits paid under the U.K. Plans are also subject to adjustments for the effects of inflation. The actuarial present value of the projected benefit payments under the U.K. Plans are based on the employees' expected dates of separation by retirement.

The Bipartisan Budget Act of 2015 ("BBA2015") included pension funding reform which greatly reduced the contributions required to the U.S. Qualified Plan. Required contributions are anticipated in future years as the impact of the BBA2015 pension funding reform is phased out. Currently, the Company plans to make $9,000,000 per annum to the U.S. Qualified Plan for each of next five fiscal years to improve the funded status of the plan and minimize future required contributions. The Company did not make a discretionary contribution in 2019 because it made an additional voluntary contribution of $10,000,000 in 2018 which generated a one time U.S. tax benefit. The Company expects to make no discretionary contributions to its U.K. Plans during the next five years.

Certain other employees located in the Netherlands, Norway, Germany, and the Philippines (referred to herein as the "other international plans") have retirement benefits that are accounted for as defined benefit pension plans under GAAP.

External trusts are maintained to hold assets of the Company's U.S. Qualified Plan, U.K. Plans, and other international plans. The Company's funding policy is to make cash contributions in amounts at least sufficient to meet regulatory funding requirements and, in certain instances, to make contributions in excess thereof if such contributions would otherwise be in accordance with the Company's capital allocation plans. Assets of the plans are measured at fair value at the end of each reporting period, but the plan assets are not separately recorded on the Company's Consolidated Balance Sheets. Instead, the funded or unfunded status of the Company's U.S. Qualified Plan, U.K. Plans, and other international plans are recorded in "Accrued pension liabilities" or "Other noncurrent assets" on the Company's Consolidated Balance Sheets based on the projected benefit obligations less the fair values of the plans' assets.

The majority of the Company's defined benefit pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2020 and 2019:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Projected benefit obligations

 

$

494,273

 

 

$

486,305

 

Fair value of plans' assets

 

 

437,234

 

 

 

417,074

 

 

Certain of the Company's U.K. Plans have fair values of plan assets that exceed the projected benefit obligations. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2020 and 2019:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Projected benefit obligations

 

$

267,200

 

 

$

261,953

 

Fair value of plans' assets

 

 

303,957

 

 

 

296,943

 

 

In addition, the Company sponsors two frozen nonqualified, unfunded defined benefit pension plans for certain employees and retirees, which are based on career compensation. These plans were frozen effective December 31, 2002. The liabilities of these plans, which equal their projected benefit obligations, are included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets based on the expected timing of funding these obligations, since they are funded as needed from Company assets.

A reconciliation of the beginning and ending balances of the projected benefit obligations and the fair value of plans' assets for the Company's defined benefit pension plans as of the plans' most recent measurement dates is as follows:

Year Ended December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Projected Benefit Obligations:

 

 

 

 

 

 

 

 

Beginning of measurement period

 

$

748,258

 

 

$

694,482

 

Service cost

 

 

1,295

 

 

 

1,278

 

Interest cost

 

 

16,643

 

 

 

22,408

 

Employee contributions

 

 

35

 

 

 

45

 

Actuarial loss (gain)

 

 

49,938

 

 

 

77,549

 

Plan settlements

 

 

(1,450

)

 

 

—

 

Benefits paid

 

 

(55,150

)

 

 

(50,415

)

Foreign currency effects

 

 

1,904

 

 

 

2,911

 

End of measurement period

 

 

761,473

 

 

 

748,258

 

Fair Value of Plans' Assets:

 

 

 

 

 

 

 

 

Beginning of measurement period

 

 

714,017

 

 

 

649,688

 

Actual return on plans' assets

 

 

71,446

 

 

 

109,670

 

Employer contributions

 

 

10,446

 

 

 

1,112

 

Employee contributions

 

 

35

 

 

 

522

 

Plan settlements

 

 

(1,450

)

 

 

—

 

Benefits paid

 

 

(55,150

)

 

 

(50,415

)

Foreign currency effects

 

 

1,847

 

 

 

3,440

 

End of measurement period

 

 

741,191

 

 

 

714,017

 

Unfunded Status

 

$

(20,282

)

 

$

(34,241

)

 

 

Due to the frozen status of the U.S. Qualified Plan and the closed status of the U.K. Plans, the accumulated benefit obligations and the projected benefit obligations are not materially different.

The underfunded status of the Company's defined benefit pension plans recognized in the Consolidated Balance Sheets at December 31 consisted of:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

U.S. Qualified Plan

 

$

51,645

 

 

$

63,538

 

Other international plans

 

 

2,241

 

 

 

2,371

 

Subtotal, included in "Accrued pension liabilities"

 

 

53,886

 

 

 

65,909

 

U.K. prepaid pension asset included in "Other noncurrent assets"

 

 

(36,757

)

 

 

(34,990

)

Unfunded status of nonqualified defined benefit deferred pension plans included in "Other accrued liabilities"

 

 

316

 

 

 

310

 

Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities"

 

 

2,837

 

 

 

3,012

 

Total unfunded status

 

$

20,282

 

 

$

34,241

 

Accumulated other comprehensive loss, before income taxes

 

$

(264,244

)

 

$

(268,275

)

 

A fixed number of U.S. employees, retirees, and eligible dependents were previously covered under a frozen post-retirement medical benefits plan and are now provided Company-subsidized premiums for participation in health care exchanges. The liabilities for this plan are included in the Company's self-insured risks liabilities and are not material. This plan was frozen effective December 31, 2002.

The following tables set forth the 2020 and 2019 changes in accumulated other comprehensive loss for the Company's defined benefit retirement plans and post-retirement medical benefits plan on a combined basis:

 

 

Defined Benefit

Pension Plans

 

 

Post-Retirement

Medical

Benefits Plan

 

 

 

(In thousands)

 

Net unrecognized actuarial (loss) gain, December 31, 2018

 

$

(280,948

)

 

$

304

 

Amortization of net loss (gain)

 

 

10,836

 

 

 

(152

)

Net gain arising during the year

 

 

2,311

 

 

 

—

 

Currency translation

 

 

(626

)

 

 

—

 

Net unrecognized actuarial (loss) gain, December 31, 2019

 

 

(268,427

)

 

 

152

 

Amortization of net loss (gain)

 

 

10,804

 

 

 

(152

)

Net loss arising during the year

 

 

(6,510

)

 

 

—

 

Currency translation

 

 

(111

)

 

 

—

 

Net unrecognized actuarial loss, December 31, 2020

 

$

(264,244

)

 

$

—

 

 

 

Unrecognized losses reflect changes in the discount rates and differences between expected and actual asset returns, which are being amortized over future periods. These unrecognized losses may be recovered in future periods through actuarial gains. However, unless the minimum amount required to be amortized is below a corridor amount equal to 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets, these unrecognized actuarial losses are required to be amortized and recognized in future periods. Net unrecognized actuarial losses included in accumulated other comprehensive loss and expected to be recognized in net periodic benefit costs during the year ending December 31, 2021 for the U.S. and U.K. defined benefit pension plans are $10,400,000 ($7,700,000 net of tax).

Pension expense is affected by the accounting policy used to determine the value of plan assets at the measurement date. The Company applies the expected return on plan assets using fair market value as of the annual measurement date. The fair market value method results in greater volatility to pension expense than the calculated value method. The amounts recognized in the Consolidated Balance Sheets reflect the fair value of the Company's long-term pension liabilities at the plan measurement date and the fair value of plan assets as of the balance sheet date.

Net periodic benefit cost related to all of the Company's defined benefit pension plans recognized in the Company's Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018 included the following components:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Service cost

 

$

1,295

 

 

$

1,278

 

 

$

1,395

 

Interest cost

 

 

16,643

 

 

 

22,376

 

 

 

20,933

 

Expected return on assets

 

 

(28,016

)

 

 

(29,654

)

 

 

(34,267

)

Amortization of actuarial loss

 

 

10,804

 

 

 

10,837

 

 

 

10,744

 

Net periodic benefit cost (credit)

 

$

726

 

 

$

4,837

 

 

$

(1,195

)

 

Benefit cost for the U.S. Qualified Plan does not include service cost since the plan is frozen. For the years ended December 31, 2020, 2019 and 2018, the non-service components of net periodic pension (benefits)/costs of $(569,000), $3,559,000 and $(2,590,000), respectively, are included in "Other (Expense) Gain" on the Consolidated Statement of Operations.

Over the next ten years, the following benefit payments are expected to be required to be made from the Company's U.S. and U.K. defined benefit pension plans:

 

Year Ending December 31,

 

Expected Benefit

Payments

 

 

 

(In thousands)

 

2021

 

$

42,436

 

2022

 

 

42,590

 

2023

 

 

42,611

 

2024

 

 

42,440

 

2025

 

 

42,329

 

2026-2030

 

 

206,549

 

 

 

The Company reviews its employee demographic assumptions annually and updates the assumptions as necessary. The Company updates the mortality assumptions for the U.S. plans to incorporate the current mortality tables issued by the Society of Actuaries, adjusted to reflect the Company's specific experience and future expectations. This resulted in a $3,063,000 decrease in the projected benefit obligation for the U.S. plans for the year ended December 31, 2020. Certain assumptions used in computing the benefit obligations and net periodic benefit cost for the U.S. and U.K. defined benefit pension plans were as follows:

 

U.S. Qualified Plan:

 

2020

 

 

2019

 

Discount rate used to compute benefit obligations

 

 

2.38

%

 

 

3.15

%

Discount rate used to compute periodic benefit cost

 

 

3.15

%

 

 

4.31

%

Expected long-term rates of return on plans' assets

 

 

4.70

%

 

 

6.10

%

 

U.K. Defined Benefit Plans:

 

2020

 

 

2019

 

Discount rate used to compute benefit obligations

 

 

1.60

%

 

 

1.93

%

Discount rate used to compute periodic benefit cost

 

 

1.93

%

 

 

2.77

%

Expected long-term rates of return on plans' assets

 

 

2.54

%

 

 

3.28

%

 

The discount rate assumptions reflect the rates at which the Company believes the benefit obligations could be effectively settled. The discount rates were determined based on the yield for a portfolio of investment grade corporate bonds with maturity dates matched to the estimated future payments of the plans' benefit obligations.

The Company estimates the service and interest components of net periodic benefit cost for its U.S. and international pension and other postretirement benefits. This estimation approach discounts the individual expected cash flows underlying the service cost and interest cost using the applicable spot rates derived from the yield curve used to discount the cash flows used to measure the benefit obligation. For the pension plans, the weighted average spot rates used to determine 2021 interest costs are estimated to be 3.92% for the U.S. Qualified plan and 1.71% for the U.K. plans.

The expected long-term rates of return on plan assets were based on the plans' asset mix, historical returns on equity securities and fixed income investments, and an assessment of expected future returns. The expected long-term rates of return on plan assets assumption used to determine 2021 net periodic pension cost are estimated to be 4.70% and 2.10% for the U.S. Qualified Plan and U.K. plans, respectively. If actual long-term rates of return differ from those assumed or if the Company used materially different assumptions, actual funding obligations could differ materially from these estimates. Due to the frozen status of the U.S. plan and closed status of the U.K. plans, increases in compensation rates are not material to the computations of benefit obligations or net periodic benefit cost.

Plans' Assets

Asset allocations at the respective measurement dates, by asset category, for the Company's U.S. and U.K. qualified defined benefit pension plans were as follows:

 

 

 

U.S. Qualified Plan

 

 

U.K. Plans

 

December 31,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Equity securities

 

 

23.4

%

 

 

21.4

%

 

 

17.1

%

 

 

17.9

%

Fixed income securities

 

 

67.2

%

 

 

69.3

%

 

 

67.4

%

 

 

68.3

%

Alternative strategies

 

 

6.2

%

 

 

5.9

%

 

 

14.7

%

 

 

13.0

%

Cash, cash equivalents and short-term investment funds

 

 

3.1

%

 

 

3.4

%

 

 

0.9

%

 

 

0.8

%

Total asset allocation

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

Investment objectives for the Company's U.S. and U.K. pension plan assets are to ensure availability of funds for payment of plan benefits as they become due; provide for a reasonable amount of long-term growth of capital, without undue exposure to volatility; protect the assets from erosion of purchasing power; and provide investment results that meet or exceed the plans' actuarially assumed long-term rate of return.

Alternative strategies include funds that invest in derivative instruments such as futures, forward contracts, options and swaps, hedge funds, and funds that invest in real estate. These investments are used to help manage risks.

The long-term goal for the U.S. and U.K. plans is to reach fully-funded status and to maintain that status. The investment policies recognize that the plans' asset return requirements and risk tolerances will change over time. Accordingly, reallocation of the portfolios' mix of return-seeking assets and liability-hedging assets will be performed as the plans' funded status improves.

See Note 12, "Fair Value Measurements" for the fair value disclosures of the U.S. and U.K. qualified defined benefit pension plan assets. The assets of the Company's other international plans are primarily insurance contracts, which are measured at contract value and are not measured at fair value. Obligations of the U.S. nonqualified plans are paid from Company assets.
v3.20.4
Common Stock and Earnings per Share
 12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Common Stock and Earnings per Share

9.

Common Stock and Earnings per Share

Shares of the Company's two classes of common stock are traded on the NYSE under the symbols CRD-A and CRD-B, respectively. The Company's two classes of stock are substantially identical, except with respect to voting rights and the Company's ability to pay greater cash dividends on the non-voting Class A Common Stock than on the voting Class B Common Stock, subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of Class A Common Stock must receive the same type and amount of consideration as holders of Class B Common Stock, unless different consideration is approved by the holders of 75% of the Class A Common Stock, voting as a class. As described in Note 11, "Stock-Based Compensation," certain shares of CRD-A are issued with restrictions under incentive compensation plans.

The Company's share repurchase authorization, approved in July 2017 (the "2017 Repurchase Authorization"), provided the Company with the ability to repurchase up to 2,000,000 shares of CRD-A or CRD-B (or both). The 2017 Repurchase Authorization was terminated on May 8, 2019.

Effective May 9, 2019, the Company's Board of Directors authorized the repurchase of up to 2,000,000 shares of CRD-A or CRD-B (or a combination of the two) through December 31, 2020 (the "2019 Repurchase Authorization"). On December 10, 2020, the Company’s Board of Directors extended the termination date of the Company’s 2019 share repurchase authorization (“2019 Repurchase Authorization”) to December 31, 2021. Under the 2019 Repurchase Authorization, repurchases may be made for cash, in the open market or privately negotiated transactions at such times and for such prices as management deems appropriate, subject to applicable contractual and regulatory restrictions.

Through December 31, 2020, the Company had repurchased 155,351 shares of CRD-A and 161,459 shares of CRD-B at an average cost of $8.42. At December 31, 2020, the Company had remaining authorization to repurchase 642,097 shares under the 2019 Repurchase Authorization.

Through December 31, 2019, the Company had repurchased 1,103,398 shares of CRD-A and 1,736,011 shares of CRD-B at an average cost of $9.33 and $9.17, respectively, of which 421,427 shares of CRD-A and 1,376,889 shares of CRD-B were purchased pursuant to a stock purchase agreement authorized by the Board of Directors separate from the 2017 Repurchase Authorization and the 2019 Repurchase Authorization. At December 31, 2019, the Company had remaining authorization to repurchase 958,907 shares under the 2019 Repurchase Authorization.

Net Income Attributable to Shareholders of Crawford & Company per Common Share

The Company computes earnings per share of CRD-A and CRD-B using the two-class method, which allocates the undistributed earnings for each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on CRD-A than on CRD-B, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. During 2020, 2019 and 2018, the Board of Directors declared a higher dividend on CRD-A than on CRD-B.

The computations of basic net income attributable to shareholders of Crawford & Company per common share were as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

CRD-A

 

 

CRD-B

 

 

CRD-A

 

 

CRD-B

 

 

CRD-A

 

 

CRD-B

 

 

 

(In thousands, except earnings per share)

 

Earnings per share - basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation of undistributed earnings (loss)

 

$

10,743

 

 

$

7,908

 

 

$

(392

)

 

$

(294

)

 

$

6,941

 

 

$

5,509

 

Dividends paid

 

 

5,815

 

 

 

3,830

 

 

 

8,592

 

 

 

4,579

 

 

 

8,639

 

 

 

4,889

 

Net income available to common shareholders, basic

 

 

16,558

 

 

 

11,738

 

 

 

8,200

 

 

 

4,285

 

 

 

15,580

 

 

 

10,398

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 

30,605

 

 

 

22,527

 

 

 

30,637

 

 

 

22,975

 

 

 

30,805

 

 

 

24,449

 

Earnings per share - basic

 

$

0.54

 

 

$

0.52

 

 

$

0.27

 

 

$

0.19

 

 

$

0.51

 

 

$

0.43

 

 

The computations of diluted net income attributable to shareholders of Crawford & Company per common share were as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

CRD-A

 

 

CRD-B

 

 

CRD-A

 

 

CRD-B

 

 

CRD-A

 

 

CRD-B

 

 

 

(In thousands, except earnings per share)

 

Earnings per share - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation of undistributed earnings (loss)

 

$

10,781

 

 

$

7,870

 

 

$

(394

)

 

$

(292

)

 

$

7,003

 

 

$

5,447

 

Dividends paid

 

 

5,815

 

 

 

3,830

 

 

 

8,592

 

 

 

4,579

 

 

 

8,639

 

 

 

4,889

 

Net income available to common shareholders, diluted

 

 

16,596

 

 

 

11,700

 

 

 

8,198

 

 

 

4,287

 

 

 

15,642

 

 

 

10,336

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 

30,605

 

 

 

22,527

 

 

 

30,637

 

 

 

22,975

 

 

 

30,805

 

 

 

24,449

 

Weighted-average effect of dilutive securities (1)

 

 

252

 

 

 

—

 

 

 

453

 

 

 

—

 

 

 

629

 

 

 

—

 

Weighted-average number of shares outstanding, diluted

 

 

30,857

 

 

 

22,527

 

 

 

31,090

 

 

 

22,975

 

 

 

31,434

 

 

 

24,449

 

Earnings per share - diluted

 

$

0.54

 

 

$

0.52

 

 

$

0.26

 

 

$

0.19

 

 

$

0.50

 

 

$

0.42

 

Listed below are the shares excluded from the denominator in the above computation of diluted earnings per share for CRD-A because their inclusion would have been anti-dilutive:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period

 

 

1,996

 

 

 

622

 

 

 

1,175

 

Performance stock grants excluded because performance conditions had not been met (1)

 

 

578

 

 

 

717

 

 

 

752

 

(1)

Compensation cost is recognized for these performance stock grants based on expected achievement rates; however no consideration is given for these performance stock grants when calculating earnings per share until the performance measurements are actually achieved.
v3.20.4
Accumulated Other Comprehensive Loss
 12 Months Ended
Dec. 31, 2020
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]  
Accumulated Other Comprehensive Loss

10.

Accumulated Other Comprehensive Loss

Comprehensive income (loss) for the Company consists of the total of net income, foreign currency translation adjustments, and accrued pension and retiree medical liability adjustments. Foreign currency translation adjustments include net unrealized losses from intra-entity loans that are long-term in nature of $(5,165,000), $(928,000), and $(1,838,000) for the years ended December 31, 2020, 2019, and 2018, respectively. The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's Consolidated Balance Sheets were as follows:

 

 

Foreign currency

translation

adjustments

 

 

Retirement

liabilities

 

 

AOCL

attributable to

shareholders of

Crawford &

Company

 

 

 

(In thousands)

 

Balance at December 31, 2018

 

$

(36,352

)

 

$

(180,095

)

 

$

(216,447

)

Other comprehensive income before reclassifications

 

 

502

 

 

 

—

 

 

 

502

 

Unrealized net gains arising during the year

 

 

—

 

 

 

1,036

 

 

 

1,036

 

Amounts reclassified from accumulated other comprehensive income to net income (1)

 

 

—

 

 

 

8,002

 

 

 

8,002

 

Net current period other comprehensive income

 

 

502

 

 

 

9,038

 

 

 

9,540

 

Balance at December 31, 2019

 

 

(35,850

)

 

 

(171,057

)

 

 

(206,907

)

Other comprehensive income before reclassifications

 

 

4,595

 

 

 

—

 

 

 

4,595

 

Unrealized net losses arising during the year

 

 

—

 

 

 

(4,966

)

 

 

(4,966

)

Amounts reclassified from accumulated other comprehensive income to net income (1)

 

 

—

 

 

 

7,959

 

 

 

7,959

 

Net current period other comprehensive income

 

 

4,595

 

 

 

2,993

 

 

 

7,588

 

Acquisition/Disposition of noncontrolling interest

 

 

463

 

 

 

—

 

 

 

463

 

Balance at December 31, 2020

 

$

(30,792

)

 

$

(168,064

)

 

$

(198,856

)

(1)

Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's Consolidated Statements of Operations. See Note 8, "Retirement Plans" for additional details.

Other comprehensive loss amounts attributable to noncontrolling interests shown in the Company's Consolidated Statements of Shareholders' Investment are foreign currency translation adjustments.
v3.20.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2020
Share Based Compensation [Abstract]  
Stock-Based Compensation

11.

Stock-Based Compensation

The Company has various stock-based incentive compensation plans for its employees and members of its Board of Directors. Only shares of CRD-A can be issued under these plans. The fair value of an equity award is estimated on the grant date without regard to service or performance conditions. The fair value is recognized as compensation expense over the requisite service period for all awards that vest. When recognizing compensation expense, estimates are made for the number of awards that are expected to vest, and subsequent adjustments are made to reflect both changes in the number of shares expected to vest and actual vesting. Compensation expense recognized at the end of any year equals at least the portion of the grant-date value of an award that has vested at that date.

The pretax compensation expense recognized for all stock-based compensation plans was $4,384,000, $4,109,000, and $6,196,000 for the years ended December 31, 2020, 2019, and 2018, respectively. During 2019, there was increased performance share forfeiture activity, which resulted in the decreased stock-based compensation for that year as compared to 2020 and 2018. In 2020, the increase was offset by less expense from restricted shares and stock options.

The total income tax benefit recognized in the Consolidated Statements of Operations for stock-based compensation arrangements was approximately $947,000, $888,000, and $1,475,000 for the ended December 31, 2020, 2019, and 2018, respectively. Some of the Company's stock-based compensation awards are granted under plans which are designed not to be taxable as compensation to the recipient based on tax laws of the U.S. or other applicable country. Accordingly, the Company does not recognize tax benefits on all of its stock-based compensation expense. Adjustments to additional paid-in capital for differences between deductions taken on its income tax returns related to stock-based compensation plans and the related income tax benefits previously recognized for financial reporting purposes were not significant in any year.

Stock Options

The Company has granted nonqualified and incentive stock options to key employees and directors. All stock options are for shares of CRD-A. Option awards are granted with an exercise price equal to the fair market value of the Company's stock on the date of grant. The Company's stock option plans have been approved by shareholders, and the Company's Board of Directors is authorized to make specific grants of stock options under active plans. Employee stock options typically are subject to graded vesting over three years (33% each year) and have a typical life of ten years. Compensation cost for stock options is recognized on an accelerated basis over the requisite service period for the entire award. For the years ended December 31, 2020, 2019, and 2018, compensation expense of $617,000, $1,397,000, and $1,253,000, respectively, was recognized for employee stock option awards.

A summary of option activity as of December 31, 2020, 2019, and 2018, and changes during each year, is presented below:

 

 

 

Shares

 

 

Weighted-

Average

Exercise Price

 

 

Weighted-

Average

Remaining

Contractual

Term

 

Aggregate

Intrinsic

Value

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

(In thousands)

 

Outstanding at December 31, 2017

 

 

887

 

 

$

8.53

 

 

8.4 years

 

$

527

 

Granted

 

 

582

 

 

 

8.60

 

 

 

 

 

 

 

Exercised

 

 

(21

)

 

 

4.88

 

 

 

 

 

 

 

Forfeited or expired

 

 

(154

)

 

 

8.74

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

1,294

 

 

 

8.60

 

 

8.1 years

 

 

667

 

Granted

 

 

591

 

 

 

9.70

 

 

 

 

 

 

 

Exercised

 

 

(111

)

 

 

5.91

 

 

 

 

 

 

 

Forfeited or expired

 

 

(80

)

 

 

9.24

 

 

 

 

 

 

 

Outstanding at December 31, 2019

 

 

1,694

 

 

 

9.13

 

 

7.9 years

 

 

3,969

 

Granted

 

 

660

 

 

 

8.73

 

 

 

 

 

 

 

Exercised

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Forfeited or expired

 

 

(458

)

 

 

9.05

 

 

 

 

 

 

 

Outstanding at December 31, 2020

 

 

1,896

 

 

$

9.01

 

 

7.4 years

 

$

114

 

Vested and Exercisable at December 31, 2020

 

 

1,101

 

 

$

9.06

 

 

6.6 years

 

$

26

 

 

The weighted average grant date fair value of stock options granted during the year ended December 31, 2020, 2019, and 2018 was $2.29, $2.57 and $2.78, respectively. No options were exercised in 2020. Options vested in 2019 and 2018 had an intrinsic value of $446,000, and $80,000, respectively. Options that vested in 2020 had no fair value. The fair value of options that vested in 2019 and 2018 was $1,000,000 and $36,000, respectively.

At December 31, 2020, the unrecognized compensation cost related to unvested employee stock options was $636,000. Directors' stock options had no unrecognized compensation cost since directors' options vest upon grant, and the grant-date fair values were fully expensed on the grant date.

The fair value of each option was estimated on the date of grant using the Black-Scholes-Merton option-pricing formula, with the following weighted average assumptions:

 

 

 

2020

 

 

2019

 

Expected dividend yield

 

 

3.02

%

 

 

3.80

%

Expected volatility

 

 

35.48

%

 

 

36.73

%

Risk-free interest rate

 

 

1.38

%

 

 

2.56

%

Expected term of options

 

7 years

 

 

7 years

 

 

The expected dividend yield used for 2020 was based on the Company's historical dividend yield. The expected volatility of the price of CRD-A was based on historical realized volatility. The risk-free interest rate was based on the U.S. Treasury Daily Yield Curve Rate on the grant date, with a term equal to the expected term used in the pricing formula. The expected term of the option took into account both the contractual term of the option and the effects of expected exercise behavior.

Performance-Based Stock Grants

Performance share grants are from time to time made to certain key employees of the Company. Such grants entitle employees to earn shares of CRD-A upon the achievement of certain individual and/or corporate objectives. Grants of performance shares are made

at the discretion of the Company's Board of Directors, or the Board's Compensation Committee, and are subject to graded or cliff vesting over three-year periods. Shares are not issued until the vesting requirements have been met. Dividends are not paid or accrued on unvested/unissued shares. The grant-date fair value of a performance share grant is based on the market value of CRD-A on the date of grant, reduced for the present value of any dividends expected to be paid on CRD-A prior to the vesting of the award. Compensation expense for each award is recognized ratably from the grant date to the vesting date for each tranche.

On September 23, 2020, deeming the existing performance based cliff awards granted in 2019 and 2020 to be unattainable, the Compensation Committee cancelled the existing awards and approved a new plan based on Total Shareholder Return (“TSR”), a market condition. The 2019 replacement awards were targeted to achieve 50% of the original award it was replacing and set to vest on December 31, 2021. The 2020 replacement awards were targeted to achieve 100% of the original award it was replacing, with a vesting date of December 31, 2022.

TSR is defined as dividends paid during the measurement period plus share price appreciation. Share price appreciation is measured by using the 20 day trading day volume weighted average price at the start of the measurement period as the baseline, compared against the highest consecutive 20 day trading day volume weighted average price for the period between January 1, 2021 and the vesting date for the 2019 replacement awards and between January 1, 2022 and the vesting date for the 2020 replacement awards. Depending on the TSR, the number of shares earned can be between 50% and 200% of the targeted shares granted. If the TSR is below 10% for the 2019 replacement awards, or 20% for the 2020 replacement awards, then no shares vest.

The cancellation and reissuance of these awards was treated as a Type III modification, where no cumulative expense is recognized prior to the cancellation as it was deemed improbable to vest. Expense of the modified award will be recorded ratably over the service life, based on the valuation determined by utilizing a Monte Carlo simulation. At the time of modification, employees were given an option to elect a cash payout at the vesting date, also based on a component of TSR. This one-time election had to be determined within 30 days of the grant date. Any awards where the cash payout option was elected were recorded as liability awards, which are included on the Company's Consolidated Balance Sheets in "Accrued compensation and related costs."

A summary of the status of the Company's nonvested performance shares as of December 31, 2020, 2019, and 2018, and changes during each year, is presented below:

 

 

 

Shares

 

 

Weighted-Average

Grant-Date

Fair Value

 

Nonvested at December 31, 2017

 

 

884,342

 

 

$

7.05

 

Granted

 

 

751,128

 

 

 

7.43

 

Vested

 

 

(445,311

)

 

 

5.98

 

Forfeited or unearned

 

 

(201,322

)

 

 

7.54

 

Nonvested at December 31, 2018

 

 

988,837

 

 

 

8.07

 

Granted

 

 

626,776

 

 

 

8.87

 

Vested

 

 

(214,824

)

 

 

8.49

 

Forfeited or unearned

 

 

(427,010

)

 

 

8.34

 

Nonvested at December 31, 2019

 

 

973,779

 

 

 

8.38

 

Granted

 

 

1,616,902

 

 

 

8.01

 

Vested

 

 

(224,681

)

 

 

8.33

 

Forfeited or unearned

 

 

(1,466,729

)

 

 

8.10

 

Nonvested at December 31, 2020

 

 

899,271

 

 

$

8.19

 

 

The total fair value of the performance shares that vested in 2020, 2019, and 2018 was $1,871,000, $1,823,000, and $2,662,000, respectively.

Compensation expense recognized for all performance shares totaled $2,382,000, $1,082,000, and $3,307,000 for the years ended December 31, 2020, 2019 and 2018, respectively. Compensation cost for these awards is net of estimated or actual award forfeitures. Certain performance awards vest ratably, from grant date to vesting date of their respective tranches, without cumulative earnings per share targets. As of December 31, 2020, there was an estimated $4,999,000 of unearned compensation cost for nonvested performance shares. This unearned compensation cost is expected to be fully recognized by the end of 2022.

Restricted Shares

The Company's Board of Directors may elect to issue restricted shares of CRD-A in lieu of, or in addition to, cash payments to certain key employees. Employees receiving these shares are subject to restrictions on their ability to transfer the shares. Such restrictions generally lapse ratably over vesting periods ranging from several months to five years. The grant-date fair value of a restricted share of CRD-A is based on the market value of the stock on the date of grant. Compensation cost is recognized on an accelerated basis over the requisite service period.

A summary of the status of the Company's restricted shares of CRD-A as of December 31, 2020, 2019, and 2018 and changes during each year, is presented below:

 

 

 

Shares

 

 

Weighted-Average

Grant-Date Fair

Value

 

Nonvested at December 31, 2017

 

 

112,219

 

 

$

7.89

 

Granted

 

 

112,502

 

 

 

7.81

 

Vested

 

 

(131,260

)

 

 

8.27

 

Forfeited or unearned

 

 

(21,352

)

 

 

8.43

 

Nonvested at December 31, 2018

 

 

72,109

 

 

 

7.76

 

Granted

 

 

149,496

 

 

 

9.38

 

Vested

 

 

(108,610

)

 

 

9.04

 

Forfeited or unearned

 

 

(31,387

)

 

 

9.55

 

Nonvested at December 31, 2019

 

 

81,608

 

 

 

8.35

 

Granted

 

 

117,279

 

 

 

8.34

 

Vested

 

 

(119,327

)

 

 

8.52

 

Forfeited or unearned

 

 

—

 

 

 

—

 

Nonvested at December 31, 2020

 

 

79,560

 

 

$

8.08

 

 

Compensation expense recognized for all restricted shares for the years ended December 31, 2020, 2019, and 2018 was $942,000, $1,205,000, and $1,176,000, respectively. As of December 31, 2020, there was $214,000 of total unearned compensation cost related to nonvested restricted shares which is expected to be recognized by December 31, 2022.

Employee Stock Purchase Plans

The Company has three employee stock purchase plans: the U.S. Plan, the U.K. Plan, and the International Plan. Eligible employees in Canada, Puerto Rico, and the U.S. Virgin Islands may also participate in the U.S. Plan. The International Plan is for eligible employees located in certain other countries who are not covered by the U.S. Plan or the U.K. Plan. All plans are compensatory.

For all plans, the requisite service period is the period of time over which the employees contribute to the plans through payroll withholdings. For purposes of recognizing compensation expense, estimates are made for the total withholdings expected over the entire withholding period. The market price of a share of stock at the beginning of the withholding period is then used to estimate the total number of shares that will be purchased using the total estimated withholdings. Compensation cost is recognized ratably over the withholding period.

Under the U.S. Plan, the Company is authorized to issue up to 1,200,000 shares of CRD-A to eligible employees. Participating employees can elect to have up to $25,000 of their eligible annual earnings withheld to purchase shares at the end of the one-year withholding period which starts each July 1 and ends the following June 30. The purchase price of the stock is 85% of the lesser of the closing price of a share of such stock on the first day or the last day of the withholding period. Participating employees may cease payroll withholdings during the withholding period and/or request a refund of all amounts withheld before any shares are purchased.

During the years ended December 31, 2020, 2019 and 2018, a total of 114,408, 131,100, and 143,769 shares, respectively, of CRD-A were issued under the prior U.S. employee stock purchase plan to the Company's employees at average purchase prices of $6.71, $7.38, and $7.32 in 2020, 2019, and 2018, respectively. At December 31, 2020, an estimated 151,000 shares will be issued and purchased under the U.S. Plan in 2021. During the years ended December 31, 2020, 2019, and 2018, compensation expense of $343,000, $277,000, and $321,000, respectively, was recognized for the prior U.S. employee stock purchase plan.

Under the U.K. Plan, the Company is authorized to issue up to 1,200,000 shares of CRD-A. Under the U.K. Plan, eligible employees can elect to have up to £250 withheld from payroll each month to purchase shares after the end of a three-year savings period. The purchase price of a share of stock is 85% of the market price of the stock at a date prior to the grant date as determined under the U.K. Plan. Participating employees may cease payroll withholdings and/or request a refund of all amounts withheld before any shares are purchased.

At December 31, 2020, an estimated 108,000 shares will be eligible for purchase under the U.K. Plan at the end of the current withholding periods. This estimate is subject to change based on future fluctuations in the value of the British pound against the U.S. dollar, future changes in the market price of CRD-A, and future employee participation rates. The purchase price per share of CRD-A under the U.K. Plan ranges from $6.32 to $8.95. For the years ended December 31, 2020, 2019, and 2018, compensation expense of $163,000, $148,000, and $140,000, respectively, was recognized for the U.K. Plan. During 2020, 2019, and 2018, a total of 2,061 shares, 289,901 shares, and 63,033 shares, respectively, of CRD-A were issued under the U.K. Plan.

Under the International Plan, up to 1,000,000 shares of CRD-A may be issued. Participating employees can elect to have up to $21,250 of their eligible annual earnings withheld to purchase up to 5,000 shares of CRD-A at the end of the one-year withholding period which starts each July 1 and ends the following June 30. The purchase price of the stock is 85% of the lesser of the closing price for a share of such stock on the first day or the last day of the withholding period. Participating employees may cease payroll withholdings during the withholding period and/or request a refund of all amounts withheld before any shares are purchased. During 2020, 2019, and 2018, 4,051, 4,264, and 8,740 shares, respectively, were issued under the International Plan. Compensation expense was immaterial for this plan in all three years.
v3.20.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements

12.

Fair Value Measurements

GAAP defines fair value as the price that would be received to sell an asset or to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

 

•

Level 1— Observable inputs that reflect quoted prices in active markets for identical assets or liabilities.

 

•

Level 2 — Observable inputs other than quoted prices included in Level 1. The Company values assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data.

 

•

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

Recurring Fair Value Measurements

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:

December 31,

 

2020

 

 

 

Quoted

Prices in

Active Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

 

 

 

(In thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

10,026

 

 

$

—

 

 

$

—

 

 

$

10,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent earnout liability (2)

 

 

—

 

 

 

—

 

 

 

6,151

 

 

 

6,151

 

 

 

 

December 31,

 

2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

10,028

 

 

$

—

 

 

$

—

 

 

$

10,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent earnout liability (2)

 

 

—

 

 

 

—

 

 

 

454

 

 

 

454

 

(1)

The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included on the Company's Consolidated Balance Sheets in "Cash and cash equivalents."

(2)

The contingent earnout liability relates to businesses acquired during 2020 and 2019 by the Crawford Specialty Solutions and Crawford TPA Solutions operating segments. See Note 3, "Business Acquisitions and Dispositions" 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 $12,090,000. The fair value of the contingent earnout liability is included in "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets, based upon the term of the contingent earnout agreement.

Fair Value Disclosures

There were no transfers of assets between fair value levels during the years ended December 31, 2020 or 2019. The categorization of assets and liabilities within the fair value hierarchy and the measurement techniques are reviewed quarterly. Any transfers between levels are deemed to have occurred at the end of the quarter.

The fair values of accounts receivable, unbilled revenues, accounts payable and short-term borrowings approximate their respective carrying values due to the short-term maturities of the instruments. The interest rate on the Company's variable rate long-term debt resets at least every 90 days; therefore, the recorded value approximates fair value. These assets and liabilities are measured within Level 2 of the fair value hierarchy.

Nonrecurring Fair Value Disclosures

During 2020, the Company impaired and expensed goodwill of $17,674,000. During 2019, the Company impaired and expensed goodwill of $17,484,000. During 2018, the Company impaired and expensed an indefinite-lived trade name of $1,056,000. See Note 1, "Significant Accounting and Reporting Policies" and Note 4, "Goodwill and Intangible Assets," where discussed in more detail.

Fair Value Measurements for Defined Benefit Pension Plan Assets

The fair value hierarchy is also applied to certain other assets that indirectly impact the Company's consolidated financial statements. Assets contributed by the Company to its defined benefit pension plans become the property of the individual plans. Even though the Company no longer has control over these assets, it is indirectly impacted by subsequent fair value adjustments to these assets. The actual return on these assets impacts the Company's future net periodic benefit cost, as well as amounts recognized in its Consolidated Balance Sheets. The Company uses the fair value hierarchy to measure the fair value of assets held by its U.S. and U.K. defined benefit pension plans.

The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.S Qualified Plan at December 31, 2020 and 2019:

December 31,

 

2020

 

 

2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In thousands)

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,861

 

 

$

—

 

 

$

—

 

 

$

2,861

 

 

$

8,082

 

 

$

—

 

 

$

—

 

 

$

8,082

 

Short-term investment funds

 

 

—

 

 

 

9,827

 

 

 

—

 

 

 

9,827

 

 

 

—

 

 

 

5,496

 

 

 

—

 

 

 

5,496

 

Common collective equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

—

 

 

 

66,145

 

 

 

—

 

 

 

66,145

 

 

 

—

 

 

 

60,039

 

 

 

—

 

 

 

60,039

 

International

 

 

—

 

 

 

28,529

 

 

 

—

 

 

 

28,529

 

 

 

—

 

 

 

26,142

 

 

 

—

 

 

 

26,142

 

Common collective fixed income funds and fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

36,007

 

 

 

207,219

 

 

 

—

 

 

 

243,226

 

 

 

51,247

 

 

 

224,747

 

 

 

—

 

 

 

275,994

 

International

 

 

—

 

 

 

28,501

 

 

 

—

 

 

 

28,501

 

 

 

—

 

 

 

3,745

 

 

 

—

 

 

 

3,745

 

Alternative strategy funds

 

 

—

 

 

 

9,248

 

 

 

15,938

 

 

 

25,186

 

 

 

—

 

 

 

8,880

 

 

 

14,766

 

 

 

23,646

 

Total plan assets

 

$

38,868

 

 

$

349,469

 

 

$

15,938

 

 

 

404,275

 

 

$

59,329

 

 

$

329,049

 

 

$

14,766

 

 

 

403,144

 

Other plan liabilities, net (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,336

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,220

)

Net plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

396,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

376,924

 

(a)

net amounts payable for unsettled security transactions.

The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.K. plans at December 31, 2020 and 2019:

December 31,

 

2020

 

 

2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In thousands)

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,613

 

 

$

—

 

 

$

—

 

 

$

2,613

 

 

$

2,338

 

 

$

—

 

 

$

—

 

 

$

2,338

 

Common collective equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

—

 

 

 

44,461

 

 

 

—

 

 

 

44,461

 

 

 

—

 

 

 

43,613

 

 

 

—

 

 

 

43,613

 

International

 

 

—

 

 

 

7,510

 

 

 

—

 

 

 

7,510

 

 

 

—

 

 

 

9,418

 

 

 

—

 

 

 

9,418

 

Common collective fixed income funds and fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investment funds:

 

 

—

 

 

 

162,276

 

 

 

—

 

 

 

162,276

 

 

 

—

 

 

 

167,741

 

 

 

—

 

 

 

167,741

 

Government securities

 

 

—

 

 

 

42,564

 

 

 

—

 

 

 

42,564

 

 

 

—

 

 

 

34,926

 

 

 

—

 

 

 

34,926

 

Alternative strategy funds

 

 

—

 

 

 

34,958

 

 

 

—

 

 

 

34,958

 

 

 

—

 

 

 

29,172

 

 

 

—

 

 

 

29,172

 

Real estate funds

 

 

—

 

 

 

—

 

 

 

9,572

 

 

 

9,572

 

 

 

—

 

 

 

—

 

 

 

9,735

 

 

 

9,735

 

Total plan assets

 

$

2,613

 

 

$

291,769

 

 

$

9,572

 

 

$

303,954

 

 

$

2,338

 

 

$

284,870

 

 

$

9,735

 

 

$

296,943

 

 

Short-term investment funds consist primarily of funds with a maturity of 60 days or less and are valued at amortized cost which approximates fair value.

Equity securities consist primarily of common collective funds (Level 2). Common collective funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.

Fixed income securities consist of money market funds, government securities, corporate bonds and debt securities, mortgage-backed securities and other common collective funds. Government securities are valued by third-party pricing sources and are valued daily in an active market (Level 1). Corporate bonds are valued using either the yields currently available on comparable securities of issuers with similar credit ratings or using a discounted cash flows approach that utilizes observable inputs, such as current yields of similar instruments, and includes adjustments for valuation adjustments from internal pricing models which use observable inputs such as issuer details, interest rates, yield curves, default rates and quoted prices for similar assets (Level 2). Mortgage-backed securities are valued by pricing service providers that use broker-dealer quotations or valuation estimates from their internal pricing models (Level 2). Other common collective funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date (Level 2).

Alternative strategy funds valued at the net asset value per share multiplied by the number of shares held as of the measurement date (Level 2). Alternative strategy funds may include derivative instruments such as futures, forward contracts, options and swaps and are used to help manage risks. Derivative instruments are generally valued by the investment managers or in certain instances by

third party pricing sources (Level 2) or may, due to the inherent uncertainty of valuation for those investments, differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material (Level 3).

Real estate funds are primarily property unit trusts whose values are primarily reported by the fund manager and are based on valuation of the underlying investments which include inputs such as cost, discounted cash flows, independent appraisals and market-based comparable data (Level 3). The fair values may, due to the inherent uncertainty of valuation for those investments, differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material.

The following table provides a reconciliation of the beginning and ending balance of Level 3 assets within the Company's U.S. and U.K. pension plans during the years ended December 31, 2020 and 2019:

 

 

 

U.S

 

 

U.K.

 

 

 

(in thousands)

 

Balance at December 31, 2018

 

$

16,488

 

 

$

9,945

 

Actual return on plan assets:

 

 

 

 

 

 

 

 

Related to assets still held at the reporting date

 

 

(1,722

)

 

 

(210

)

Balance at December 31, 2019

 

 

14,766

 

 

 

9,735

 

Actual return on plan assets:

 

 

 

 

 

 

 

 

Related to assets still held at the reporting date

 

 

1,172

 

 

 

(163

)

Balance at December 31, 2020

 

$

15,938

 

 

$

9,572

 

 
v3.20.4
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment and Geographic Information

13.

Segment and Geographic Information

The Company's three reportable segments represent components of the business for which separate financial information is available, and which is evaluated regularly by the CODM. The segments, organized based upon the nature of services, are: Crawford Claims Solutions, which primarily serves the global property and casualty insurance company markets; Crawford TPA Solutions, which serves the global casualty, disability and self-insurance marketplace; and Crawford Specialty Solutions which serves the global property and casualty insurance company markets. Intersegment sales are recorded at cost and are not material.

Operating earnings is the primary financial performance measure used by the Company's senior management and the CODM to evaluate the financial performance of the Company's three reportable segments and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate segment operating performance using the same criteria used by the Company's senior management and CODM. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represent segment earnings before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, goodwill and intangible asset impairments, restructuring and other costs, (gain) loss on disposition of business line, arbitration and claim settlements, income taxes, and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests.

Segment operating earnings includes allocations of certain corporate and shared costs. If the Company changes its allocation methods or changes the types of costs that are allocated to its three reportable segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process.

In the normal course of its business, the Company sometimes pays for certain out-of-pocket expenses that are thereafter reimbursed by its clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in the Company's consolidated results of operations. However, in evaluating segment results, Company management excludes these reimbursements and related expenses from segment results, as they offset each other.

Financial information as of and for the years ended December 31, 2020, 2019, and 2018 related to the Company's reportable segments is presented below.

 

 

Crawford

Claims

Solutions

 

 

Crawford

TPA

Solutions

 

 

Crawford

Specialty

Solutions

 

 

Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

356,447

 

 

$

364,983

 

 

$

261,062

 

 

$

982,492

 

Segment operating earnings

 

 

14,375

 

 

 

21,476

 

 

 

52,553

 

 

 

88,404

 

Depreciation and amortization (1)

 

 

2,405

 

 

 

9,345

 

 

 

1,291

 

 

 

13,041

 

Assets (2)

 

 

120,777

 

 

 

88,002

 

 

 

155,522

 

 

 

364,301

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

339,837

 

 

$

393,856

 

 

$

272,109

 

 

$

1,005,802

 

Segment operating earnings

 

 

7,630

 

 

 

27,173

 

 

 

49,321

 

 

 

84,124

 

Depreciation and amortization (1)

 

 

2,461

 

 

 

10,152

 

 

 

1,811

 

 

 

14,424

 

Assets (2)

 

 

136,451

 

 

 

85,810

 

 

 

165,575

 

 

 

387,836

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

361,053

 

 

$

405,335

 

 

$

304,583

 

 

$

1,070,971

 

Segment operating earnings

 

 

11,308

 

 

 

36,909

 

 

 

49,564

 

 

 

97,781

 

Depreciation and amortization (1)

 

 

3,485

 

 

 

9,844

 

 

 

3,517

 

 

 

16,846

 

Assets (2)

 

 

163,899

 

 

 

92,007

 

 

 

165,415

 

 

 

421,321

 

 

(1)

Excludes amortization expense of finite-lived customer relationships and trade name intangible assets.

(2)

Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net.

Revenues by geographic region and major service line for the Crawford Claims Solutions, Crawford TPA Solutions and Crawford Specialty Solutions segments are shown in Note 2, "Revenue Recognition."

Capital expenditures for the years ended December 31, 2020, 2019, and 2018 are shown in the following table:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Crawford Claims Solutions

 

$

5,443

 

 

$

1,396

 

 

$

3,811

 

Crawford TPA Solutions

 

 

6,527

 

 

 

3,259

 

 

 

5,947

 

Crawford Specialty Solutions

 

 

5,686

 

 

 

458

 

 

 

2,148

 

Corporate

 

 

19,724

 

 

 

16,011

 

 

 

18,114

 

Total capital expenditures

 

$

37,380

 

 

$

21,124

 

 

$

30,020

 

The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2020, 2019, and 2018 was as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Segments' revenues before reimbursements

 

$

982,492

 

 

$

1,005,802

 

 

$

1,070,971

 

Reimbursements

 

 

33,703

 

 

 

41,825

 

 

 

52,008

 

Total consolidated revenues

 

$

1,016,195

 

 

$

1,047,627

 

 

$

1,122,979

 

 

The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2020, 2019, and 2018 were as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Operating earnings of all reportable segments

 

$

88,404

 

 

$

84,124

 

 

$

97,781

 

Unallocated corporate and shared costs and credits

 

 

(16,574

)

 

 

(6,515

)

 

 

(9,321

)

Net corporate interest expense

 

 

(7,923

)

 

 

(10,774

)

 

 

(10,109

)

Stock option expense

 

 

(1,122

)

 

 

(1,885

)

 

 

(1,742

)

Amortization of acquisition-related intangible assets

 

 

(11,653

)

 

 

(11,277

)

 

 

(11,152

)

Goodwill and intangible asset impairments

 

 

(17,674

)

 

 

(17,484

)

 

 

(1,056

)

Arbitration and claim settlements

 

 

—

 

 

 

(12,552

)

 

 

—

 

Restructuring and other costs, net

 

 

(8,133

)

 

 

—

 

 

 

—

 

Gain (loss) on disposition of businesses, net

 

 

13,763

 

 

 

—

 

 

 

(20,270

)

Income before income taxes

 

$

39,088

 

 

$

23,637

 

 

$

44,131

 

The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at December 31, 2020 and 2019 are presented in the following table:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Assets of reportable segments

 

$

364,301

 

 

$

387,836

 

Corporate assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

44,656

 

 

 

51,802

 

Income taxes receivable

 

 

1,269

 

 

 

7,820

 

Prepaid expenses and other current assets

 

 

29,490

 

 

 

23,476

 

Net property and equipment

 

 

36,402

 

 

 

31,425

 

Operating lease right-of-use asset, net

 

 

109,315

 

 

 

102,354

 

Capitalized software costs, net

 

 

71,021

 

 

 

66,445

 

Deferred income tax assets

 

 

25,595

 

 

 

17,971

 

Other noncurrent assets

 

 

70,935

 

 

 

70,884

 

Total corporate assets

 

 

388,683

 

 

 

372,177

 

Total assets

 

$

752,984

 

 

$

760,013

 

Revenues and long-lived assets for the U.S., U.K. and Canada are set out below as these countries are material for geographical area disclosure. For the purposes of these geographic area disclosures, long-lived assets consists of the net property and equipment, capitalized software costs, net and operating lease right-of-use, net line items on the Company's Consolidated Balance Sheets and excludes intangible assets and goodwill.

 

 

 

U.S.

 

 

U.K.

 

 

Canada

 

 

All Other

International

 

 

Total

Company

 

 

 

(In thousands)

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

570,822

 

 

$

128,545

 

 

$

89,163

 

 

$

193,962

 

 

$

982,492

 

Long-lived assets

 

 

151,906

 

 

 

20,290

 

 

 

14,404

 

 

 

30,138

 

 

 

216,738

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

 

569,205

 

 

 

126,337

 

 

 

114,438

 

 

 

195,822

 

 

 

1,005,802

 

Long-lived assets

 

 

140,560

 

 

 

20,749

 

 

 

17,999

 

 

 

20,916

 

 

 

200,224

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

 

615,687

 

 

 

131,651

 

 

 

121,076

 

 

 

202,557

 

 

 

1,070,971

 

Long-lived assets

 

 

88,157

 

 

 

7,631

 

 

 

7,553

 

 

 

3,172

 

 

 

106,513

 
v3.20.4
Client Funds
 12 Months Ended
Dec. 31, 2020
Client Funds [Abstract]  
Client Funds

14.

Client Funds

The Company maintains funds in custodial accounts at financial institutions to administer claims for certain clients. These funds are not available for the Company's general operating activities and, as such, have not been recorded in the accompanying Consolidated Balance Sheets. The amount of these funds totaled $537,531,000 and $410,673,000 at December 31, 2020 and 2019, respectively.
v3.20.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

15.

Commitments and Contingencies

As part of the Company's Credit Facility, the Company maintains a letter of credit facility to satisfy certain of its own contractual requirements. At December 31, 2020, the aggregate committed amount of letters of credit outstanding under the facility was $11,512,000.

From time to time, the Company enters into certain agreements for the purchase or sale of assets or businesses that contain provisions that may require the Company to make additional payments in the future depending upon the achievement of specified operating results of the acquired company, or provide the Company with an option or similar right to purchase additional assets.

In the normal course of its business, the Company is sometimes named as a defendant or responsible party in suits or other actions by insureds or claimants contesting decisions made by the Company or its clients with respect to the settlement of claims. Additionally, certain clients of the Company have in the past brought, and may, in the future bring, claims for indemnification on the basis of alleged actions by the Company, its agents, or its employees in rendering services to clients. The majority of these claims are of the type covered by insurance maintained by the Company. However, the Company is responsible for the deductibles and self-insured retentions under various insurance coverages. In the opinion of Company management, adequate provisions have been made for such known and foreseeable risks. No assurances can be provided, however, that the result of any such action, claim or proceeding, now known or occurring in the future, will not result in a material adverse effect on our business, financial condition or results of operations.

The Company is subject to numerous federal, state, and foreign labor, employment, worker health and safety, antitrust and competition, environmental and consumer protection, import/export, anti-corruption, and other laws. From time to time the Company faces claims and investigations by employees, former employees, and governmental entities under such laws or employment contracts with such employees or former employees. Such claims, investigations, and any litigation involving the Company could divert management's time and attention from the Company's business operations and could potentially result in substantial costs of defense, settlement or other disposition, which could have a material adverse effect on the Company's results of operations, financial position, and cash flows. In the opinion of Company management, adequate provisions have been made for any items that are probable and reasonably estimable.
v3.20.4
Restructuring and Other Costs
 12 Months Ended
Dec. 31, 2020
Restructuring And Related Activities [Abstract]  
Restructuring and Other Costs

16.

Restructuring and Other Costs, Net

The Company incurred net restructuring and other costs of $8,133,000 in 2020. There were no restructuring and other costs in 2019 or 2018.

Restructuring costs for the year ended December 31, 2020 were related to reductions of administrative costs and consolidation of management layers in certain operations, and other restructuring charges for asset impairments and lease termination costs.

The following table shows the costs incurred by type of restructuring activity:

Year ended December 31

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Severance benefits

 

$

9,350

 

 

$

—

 

 

$

—

 

Asset impairments and lease termination costs

 

 

2,538

 

 

 

—

 

 

 

—

 

Gain on fair value remeasurement of cost and equity method investments

 

 

(1,099

)

 

 

—

 

 

 

—

 

Liquidation dividend from a cost method investment

 

 

(1,247

)

 

 

—

 

 

 

—

 

Gain on sale of internet protocol addresses

 

 

(1,409

)

 

 

—

 

 

 

—

 

Total restructuring and other costs, net

 

$

8,133

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring costs were predominantly comprised of severance costs, asset impairments, and lease termination costs. Severance and other termination costs relate to efforts to consolidate and streamline various functions of our workforce, both in operations and administrative functions. Asset impairments, including costs incurred for obsolete software, relate to decisions to close certain operations, and lease termination costs related to the exiting of certain leased facilities. These costs were partially offset by certain non-operating credits that occurred related to a cost method investment and sale of internet protocol addresses.

As of December 31, 2020, the following liabilities remained on the Company's Consolidated Balance Sheets related to restructuring charges recorded in 2020 and 2017. The rollforwards of these costs to December 31, 2020 were as follows:

Restructuring and Other Costs

 

Deferred rent

 

 

Accrued

compensation

and related

costs

 

 

Other accrued

liabilities

 

 

Total

 

 

 

(In thousands)

 

Balance at December 31, 2017

 

$

2,846

 

 

$

4,782

 

 

$

1,785

 

 

$

9,413

 

Additions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjustments to accruals

 

 

(1,544

)

 

 

—

 

 

 

(643

)

 

 

(2,187

)

Cash payments

 

 

—

 

 

 

(4,305

)

 

 

(656

)

 

 

(4,961

)

Balance at December 31, 2018

 

 

1,302

 

 

 

477

 

 

 

486

 

 

 

2,265

 

Additions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjustments to accruals

 

 

(1,302

)

 

 

—

 

 

 

1

 

 

 

(1,301

)

Cash payments

 

 

—

 

 

 

(135

)

 

 

(15

)

 

 

(150

)

Balance at December 31, 2019

 

 

—

 

 

 

342

 

 

 

472

 

 

 

814

 

Additions

 

 

—

 

 

 

9,112

 

 

 

648

 

 

 

9,760

 

Adjustments to accruals

 

 

—

 

 

 

(453

)

 

 

(472

)

 

 

(925

)

Cash payments

 

 

—

 

 

 

(5,632

)

 

 

(58

)

 

 

(5,690

)

Balance at December 31, 2020

 

$

—

 

 

$

3,369

 

 

$

590

 

 

$

3,959

 

 
v3.20.4
Subsequent Events
 12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

17.

Subsequent Events

Segment Realignment

In connection with the realignment of operating segment manager responsibilities subsequent to December 31, 2020, the Company has realigned its operating segments by moving to a global service line reporting structure consisting of Loss Adjusting, TPA: Broadspire and Platforms. The Company's revised reportable segments are comprised of the following:

 

•

Loss Adjusting, which services the global property and casualty market. This is comprised of the previously reported Crawford Claims Solutions segment, excluding Networks (as defined below) and Crawford Legal Services, and the Global Technical Services service line previously reported within Crawford Specialty Solutions.

 

•

TPA: Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers worldwide. This is comprised of the previously reported Broadspire segment and the Crawford Legal Services service line previously reported within the Crawford Claims Solutions segment.

 

•

Platform Solutions, which consists of Contractor Connection and Networks service lines. This is comprised of the previously reported Contractor Connection service line within Crawford Specialty Solutions and the Networks service line, which includes Catastrophe operations, WeGoLook, and certain international network businesses previously reported within the Crawford Claims Solutions segment.

The succeeding interim and annual periods will disclose the reportable segments under the new basis with prior periods restated to reflect the change.

Acquisition

On November 1, 2020, the Company acquired 100% of HBA Group in Australia, including 100% of the stock in each of HBA Group’s entities HBA Legal, Pillion and Paratus. HBA Legal is a legal services provider that will complement the Company’s Crawford TPA Solutions segment in Australia. The purchase price includes an initial cash payment of $4.1 million, net of working capital adjustment, and a maximum $3.2 million payable in cash over the next four years based on achieving certain revenue and EBITDA performance goals.

This acquisition will be accounted for under the guidance of ASC 805-10, as a business combination under the acquisition method.

Based upon the timing of this acquisition, the initial accounting for the acquisition is not yet complete as the Company gathers additional information related to the assets acquired, liabilities and noncontrolling interests assumed, including intangible assets, other assets, accrued liabilities, deferred taxes, and uncertain tax positions. The Company is in the process of obtaining third-party valuations of certain intangible assets. The preliminary application of acquisition accounting to the assets acquired, and liabilities assumed, as well as the results of operations of HBA Group, will first be reflected in the Company's consolidated financial statements as of and for the quarter ending March 31, 2021.
v3.20.4
Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Data (Unaudited)

CRAWFORD & COMPANY

QUARTERLY FINANCIAL DATA (UNAUDITED)

 

2020 Quarterly Period

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

 

Full Year

 

 

 

(In thousands, except per share amounts)

 

Revenues from services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

237,531

 

 

$

234,416

 

 

$

253,124

 

 

$

257,421

 

 

$

982,492

 

Reimbursements

 

 

8,515

 

 

 

8,459

 

 

 

8,545

 

 

 

8,184

 

 

 

33,703

 

Total revenues

 

 

246,046

 

 

 

242,875

 

 

 

261,669

 

 

 

265,605

 

 

 

1,016,195

 

Total costs of services

 

 

186,119

 

 

 

172,057

 

 

 

185,606

 

 

 

193,538

 

 

 

737,320

 

(Loss) Income before income taxes

 

 

(21,645

)

 

 

12,433

 

 

 

36,438

 

 

 

11,862

 

 

 

39,088

 

Crawford Claims Solutions Operating (Loss) Earnings (1)

 

 

(3,679

)

 

 

2,789

 

 

 

7,219

 

 

 

8,046

 

 

 

14,375

 

Crawford TPA Solutions Operating Earnings (1)

 

 

6,285

 

 

 

3,171

 

 

 

4,414

 

 

 

7,606

 

 

 

21,476

 

Crawford Specialty Solutions Operating Earnings (1)

 

 

6,957

 

 

 

13,993

 

 

 

17,390

 

 

 

14,213

 

 

 

52,553

 

Unallocated corporate and shared costs, net

 

 

(2,550

)

 

 

(1,709

)

 

 

(968

)

 

 

(11,347

)

 

 

(16,574

)

Goodwill impairment (4)

 

 

(17,674

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(17,674

)

Net corporate interest expense

 

 

(2,224

)

 

 

(2,452

)

 

 

(1,599

)

 

 

(1,648

)

 

 

(7,923

)

Stock option expense

 

 

(290

)

 

 

(286

)

 

 

(457

)

 

 

(89

)

 

 

(1,122

)

Amortization of customer-relationship intangible assets

 

 

(2,756

)

 

 

(2,732

)

 

 

(3,665

)

 

 

(2,500

)

 

 

(11,653

)

Restructuring and other costs, net (4)

 

 

(5,714

)

 

 

—

 

 

 

—

 

 

 

(2,419

)

 

 

(8,133

)

(Loss) gain on disposal of businesses, net (4)

 

 

—

 

 

 

(341

)

 

 

14,104

 

 

 

—

 

 

 

13,763

 

Income tax benefit (provision)

 

 

8,486

 

 

 

(6,311

)

 

 

(11,729

)

 

 

(2,459

)

 

 

(12,013

)

Net loss (income) attributable to noncontrolling interests

 

 

1,760

 

 

 

(224

)

 

 

(312

)

 

 

(3

)

 

 

1,221

 

Net (loss) income attributable to shareholders of Crawford & Company

 

$

(11,399

)

 

$

5,898

 

 

$

24,397

 

 

$

9,400

 

 

$

28,296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) Earnings Per Share - Basic: (2) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

(0.21

)

 

$

0.11

 

 

$

0.46

 

 

$

0.18

 

 

$

0.54

 

Class B Common Stock

 

$

(0.23

)

 

$

0.11

 

 

$

0.46

 

 

$

0.18

 

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) Earnings Per Share - Diluted: (2) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

(0.21

)

 

$

0.11

 

 

$

0.46

 

 

$

0.18

 

 

$

0.54

 

Class B Common Stock

 

$

(0.23

)

 

$

0.11

 

 

$

0.46

 

 

$

0.18

 

 

$

0.52

 

 

 

2019 Quarterly Period

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

 

Full Year

 

 

 

(In thousands, except per share amounts)

 

Revenues from services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

247,058

 

 

$

256,881

 

 

$

254,677

 

 

$

247,186

 

 

$

1,005,802

 

Reimbursements

 

 

9,319

 

 

 

10,965

 

 

 

11,165

 

 

 

10,376

 

 

 

41,825

 

Total revenues

 

 

256,377

 

 

 

267,846

 

 

 

265,842

 

 

 

257,562

 

 

 

1,047,627

 

Total costs of services

 

 

187,207

 

 

 

185,892

 

 

 

192,014

 

 

 

187,660

 

 

 

752,773

 

Income (Loss) before income taxes

 

 

8,702

 

 

 

5,483

 

 

 

16,019

 

 

 

(6,567

)

 

 

23,637

 

Crawford Claims Solutions Operating (Loss) Earnings (1)

 

 

(313

)

 

 

1,710

 

 

 

2,661

 

 

 

3,572

 

 

 

7,630

 

Crawford TPA Solutions Operating Earnings (1)

 

 

6,733

 

 

 

5,026

 

 

 

9,347

 

 

 

6,067

 

 

 

27,173

 

Crawford Specialty Solutions Operating Earnings (1)

 

 

12,195

 

 

 

12,612

 

 

 

13,301

 

 

 

11,213

 

 

 

49,321

 

Unallocated corporate and shared costs, net

 

 

(3,914

)

 

 

3,170

 

 

 

(1,649

)

 

 

(4,122

)

 

 

(6,515

)

Goodwill impairment (4)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(17,484

)

 

 

(17,484

)

Net corporate interest expense

 

 

(2,716

)

 

 

(2,468

)

 

 

(3,162

)

 

 

(2,428

)

 

 

(10,774

)

Stock option expense

 

 

(485

)

 

 

(413

)

 

 

(450

)

 

 

(537

)

 

 

(1,885

)

Amortization of customer-relationship intangible assets

 

 

(2,798

)

 

 

(2,802

)

 

 

(2,829

)

 

 

(2,848

)

 

 

(11,277

)

Arbitration and claim settlements (4)

 

 

—

 

 

 

(11,352

)

 

 

(1,200

)

 

 

—

 

 

 

(12,552

)

Income taxes

 

 

(2,933

)

 

 

(2,859

)

 

 

(5,328

)

 

 

(2,991

)

 

 

(14,111

)

Net loss attributable to noncontrolling interests

 

 

340

 

 

 

18

 

 

 

355

 

 

 

2,246

 

 

 

2,959

 

Net income (loss) attributable to shareholders of Crawford & Company

 

$

6,109

 

 

$

2,642

 

 

$

11,046

 

 

$

(7,312

)

 

$

12,485

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) Per Share - Basic: (2) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.12

 

 

$

0.06

 

 

$

0.22

 

 

$

(0.13

)

 

$

0.27

 

Class B Common Stock

 

$

0.10

 

 

$

0.04

 

 

$

0.19

 

 

$

(0.15

)

 

$

0.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) Per Share - Diluted: (2) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.12

 

 

$

0.06

 

 

$

0.21

 

 

$

(0.13

)

 

$

0.26

 

Class B Common Stock

 

$

0.10

 

 

$

0.04

 

 

$

0.19

 

 

$

(0.15

)

 

$

0.19

 

(1)

This is a segment financial measure representing segment earnings before certain unallocated corporate and shared costs and credits, goodwill and intangible asset impairment charges, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, restructuring and other costs, gain/loss on disposal of business, income taxes, and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests. See Note 13, "Segment and Geographic Information," in the consolidated financial statements contained in this Item 8.

(2)

Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data.

(3)

The Company may pay a higher dividend on CRD-A than on CRD-B. This dividend differential can result in different earnings (loss) per share for each class of stock due to the two-class method of computing earnings (loss) per share as required by current accounting guidance. CRD-B generally presents a more dilutive measure.

(4)

The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.
v3.20.4
Significant Accounting and Reporting Policies (Policies)
 12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements were prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") and include the accounts of the Company, its majority-owned subsidiaries, and variable interest entities in which the Company is deemed to be the primary beneficiary. Significant intercompany transactions are eliminated in consolidation. Financial results from the Company's operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines, are reported and consolidated on a two-month delayed basis in accordance with the provisions of Accounting Standards Codification ("ASC") 810, "Consolidation," in order to provide sufficient time for accumulation of their results. Accordingly, the Company's December 31, 2020, 2019, and 2018 consolidated financial statements include the financial position of such operations as of October 31, 2020 and 2019, respectively, and the results of their operations and cash flows for the fiscal periods ended October 31, 2020, 2019, and 2018, respectively.

The Company has controlling ownership interests in several entities that are not wholly-owned by the Company. The financial results and financial positions of these controlled entities are included in the Company's consolidated financial statements, including the controlling interests, noncontrolling interests, and redeemable noncontrolling interests. The noncontrolling interests and redeemable noncontrolling interests represent the equity interests in these entities that are not attributable, either directly or indirectly, to the Company. On the Company's Consolidated Statements of Operations, net income or loss is separately attributed to the controlling interests and noncontrolling interests and redeemable noncontrolling interests.

Noncontrolling interests represent the minority shareholders' share of the net income or loss and shareholders' investment in consolidated subsidiaries. Noncontrolling interests are presented as a component of shareholders' investment in the Consolidated Balance Sheets and reflect the initial fair value of these investments by noncontrolling shareholders, along with their proportionate share of the income or loss of the subsidiaries, less any dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' investment as "Redeemable Noncontrolling Interests" and are carried at either their initial fair value plus any profits or losses or estimated redemption value if an adjustment is required.

The Company consolidates the results of a variable interest entity ("VIE") when it is determined to be the primary beneficiary. In accordance with GAAP, in determining whether the Company is the primary beneficiary of a VIE for financial reporting purposes, it considers whether it has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether it has the obligation to absorb losses or the right to receive returns that would be significant to the VIE.

The Company sold its 51% interest in Lloyd Warwick International Limited ("LWI") to a third party in June 2020. Prior to the sale, LWI was considered a VIE of the Company. As the primary beneficiary of LWI, the Company consolidated the results of LWI because of its controlling ownership interest and because Crawford had the obligation to absorb LWI's losses through the additional financial support that Crawford may be obligated to provide. As a result of the sale, LWI is no longer considered a VIE of the Company, and the Company no longer consolidates the results of LWI nor is obligated to provide financial support to LWI. See Note 3, “Business Acquisitions and Dispositions” of our accompanying consolidated financial statements for further discussion related to the sale of the Company’s interest in LWI.

The Company consolidates the liabilities of its deferred compensation plan and the related assets, which are held in a rabbi trust and also considered a VIE of the Company. The rabbi trust was created to fund the liabilities of the Company's deferred compensation plan. The Company is considered the primary beneficiary of the rabbi trust because the Company directs the activities of the trust and can use the assets of the trust to satisfy the liabilities of the Company's deferred compensation plan. At December 31, 2020 and 2019, the liabilities of this deferred compensation plan were $7,961,000 and $8,428,000, respectively, which represented obligations of the Company rather than of the rabbi trust, and the values of the assets held in the related rabbi trust were $16,323,000 and $16,527,000, respectively. These liabilities and assets are included in "Other noncurrent liabilities" and "Other noncurrent assets" on the Company's Consolidated Balance Sheets, respectively.

On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company has not applied for governmental loans from the CARES Act or any other governmental programs to support the Company’s U.S. operations. The Company is taking advantage of certain aspects of the CARES Act such as the deferral of payroll tax deposits.

The Canadian government enacted the Canada Emergency Wage Subsidy (“CEWS”) in 2020 to provide a wage subsidy to employers that suffered reductions in revenue resulting from the COVID-19 pandemic. The Company met the eligibility criteria to receive the wage subsidy in the second, third and fourth quarters of 2020. The wage subsidy is included in "Costs of services provided, before reimbursements” or “Selling, general, and administrative expenses” on the Consolidated Statements of Operations, depending on the location of the employees, and is recorded as a reduction of compensation expense. In 2020, the Company recognized $13.8 million as a reduction of compensation expense as a result of this subsidy.

Prior Year Reclassifications

Prior Year Reclassifications

Periodically, certain prior year segment information may be reclassified to conform to the current year presentation. There were no such reclassifications in the current year.

Management's Use of Estimates

Management's Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.
Revenue Recognition

Revenue Recognition

Revenues are recognized when control of the promised services are transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are recognized net of any sales, use or value added taxes collected from customers, which are subsequently remitted to governmental authorities. As the Company completes its performance obligations, it has an unconditional right to consideration as outlined in the Company's contracts.

The Company's Crawford Claims Solutions segment generates revenue for claims management services provided to insurance companies and self-insured entities related to property, casualty and catastrophe losses caused by physical damage to commercial and residential real property and personal property. The Company's Crawford TPA Solutions segment is a third party administrator that generates revenue through its Claims Management and Medical Management service lines. The Company's Crawford Specialty Solutions segment principally generates revenues through its Global Technical Services and Contractor Connection service lines. The Global Technical Services service line generates revenues for claims management services provided to insurance companies and self-insured entities related to large, complex losses with technical adjusting and industry experts. The Contractor Connection service line generates revenue through its independently managed contractor network, with approximately 6,000 credentialed residential and commercial contractors. See Note 2, “Revenue Recognition” for further discussion on the Company’s revenue recognition policies.

Intersegment sales are recorded at cost and are not material.
Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. The fair value of cash and cash equivalents approximates carrying value due to their short-term nature. At December 31, 2020, cash and cash equivalents included time deposits of approximately $1,473,000 that were in financial institutions outside the U.S.
Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Expected Credit Losses

The Company extends credit based on an evaluation of a client's financial condition and, generally, collateral is not required. Accounts receivable are typically due upon receipt of the invoice and are stated on the Company's Consolidated Balance Sheets at amounts due from clients net of an estimated allowance for expected credit losses. Accounts outstanding longer than the contractual payment terms are considered past due. The fair value of accounts receivable approximates book value due to their short-term contractual stipulations.

The Company maintains an allowance for expected credit losses resulting primarily from the inability of clients to make required payments. Such losses are accounted for as bad debt expense, while adjustments to invoices are accounted for as reductions to revenue. These allowances are established using historical write-off or adjustment information to project future experience and by considering the current creditworthiness of clients, any known specific collection problems, and an assessment of current industry and economic conditions. Actual experience may differ significantly from historical or expected loss results. The Company writes off accounts receivable when they become uncollectible, and any payments subsequently received are accounted for as recoveries.

A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2020, 2019, and 2018 is as follows:

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Allowance for expected credit losses, January 1

 

$

9,348

 

 

$

9,625

 

 

$

12,588

 

Add/ (Deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Adoption of Topic 326

 

 

(464

)

 

 

—

 

 

 

—

 

Provision for bad debt expense

 

 

1,504

 

 

 

1,588

 

 

 

2,709

 

Write-offs, net of recoveries

 

 

(908

)

 

 

(81

)

 

 

(3,695

)

Adjustments for business acquisitions and dispositions

 

 

(111

)

 

 

—

 

 

 

(1,612

)

Currency translation and other changes

 

 

95

 

 

 

(1,784

)

 

 

(365

)

Allowance for expected credit losses, December 31

 

$

9,464

 

 

$

9,348

 

 

$

9,625

 
Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived Assets

Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived Assets

Goodwill is an asset that represents the excess of the purchase price over the fair value of the separately identifiable net assets (tangible and intangible) acquired in certain business combinations. Indefinite-lived intangible assets consist of trade names associated with acquired businesses. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing at least annually. Other long-lived assets consist primarily of property and equipment, deferred income tax assets, capitalized software, and amortizable intangible assets related to customer relationships, technology, and trade names with finite lives. Other long-lived assets are evaluated for impairment when impairment indicators are identified.

Subsequent to a business acquisition in which goodwill and indefinite-lived intangibles are recorded as assets, post-acquisition accounting requires that both be tested to determine whether there has been an impairment. The Company performs an impairment test of goodwill and indefinite-lived intangible assets at least annually on October 1 of each year. The Company regularly evaluates whether events and circumstances have occurred which indicate potential impairment of goodwill or indefinite-lived intangible assets. When factors indicate that such assets should be evaluated for possible impairment between the scheduled annual impairment tests, the Company performs an interim impairment test.

Goodwill impairment testing is performed on a reporting unit basis. If the fair value of the reporting unit exceeds its carrying value, including goodwill, goodwill is considered not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The loss recognized cannot subsequently be reversed.

The Company currently has four reporting units for goodwill impairment purposes. These reporting units are the Crawford Claims Solutions and Crawford TPA Solutions operating segments and the Global Technical Services and Contractor Connection service lines.

The carrying value of the reporting unit, including goodwill, is compared with the estimated fair value of the reporting unit as determined utilizing a combination of the income and market approaches. The income approach, which is a level 3 fair value measurement, is based on projected debt-free cash flow which is discounted to the present value using discount factors that consider the timing and risk of the cash flows. The market approach is based on the Guideline Public Company Method, which uses market pricing metrics to select multiples to value the Company's reporting units. The resulting estimated fair values of the combined reporting units are reconciled to the Company's market capitalization including an estimated implied control premium. The Company believes that the combination of these approaches is appropriate because it provides a fair value estimate based upon the combination of the reporting unit's expected long-term operating cash flow performance and multiples with which similar publicly traded companies are valued. The Company weights the income and market approaches equally.

During the first quarter of 2020, the Company identified a goodwill impairment indicator in its Crawford Claims Solutions reporting unit as a result of lower operating results and the overall decline in market conditions as a result of the COVID-19 pandemic. As a result, the Company recognized a goodwill impairment of $17.7 million, reducing the goodwill carrying value of Crawford Claims Solutions to $0 as of March 31, 2020.

During the fourth quarter of 2020, the Company performed the goodwill impairment testing on the remaining reporting units. The estimated fair value of the Company's Crawford TPA Solutions, Global Technical Services and Contractor Connection reporting units exceed their carrying value by a significant margin. The Company intends to continue to monitor the performance of its reporting units for potential indicators of impairment. If impairment indicators exist, the Company will perform an interim goodwill impairment analysis.

The key assumptions used in estimating the fair value of our reporting units utilizing the income approach include the discount rate and the terminal growth rate. The discount rates utilized in estimating the fair value of our reporting units in 2020 range between 15.0% and 17.5%, reflecting the Company's assessment of a market participant's view of the risks associated with the projected cash flows. The terminal growth rate used in the analysis was 2.0%. The assumptions used in estimating the fair values are based on currently available data and management's best estimates of revenues and cash flows and, accordingly, a change in market conditions or other factors could have a material effect on the estimated values. There are inherent uncertainties related to the assumptions used and to management's application of these assumptions.

If changes to the Company's reporting structure impact the composition of its reporting units, existing goodwill is reallocated to the revised reporting units based on their relative estimated fair values as determined by a combination of the income and market approaches. If all of the assets and liabilities of an acquired business are assigned to a specific reporting unit, the goodwill associated with that acquisition is assigned to that reporting unit at acquisition unless another reporting unit is also expected to benefit from the acquisition.

For impairment testing of indefinite-lived intangible assets, the carrying value is compared with the estimated fair value, which is estimated based on the present value of the after-tax cash flows attributable solely to the asset. If carrying value exceeds the estimated fair value, an impairment is recognized based on the excess. The fair values of the Company's trade names are established using the relief-from-royalty method, a form of the income approach. This method recognizes that, by virtue of owning the trade name as opposed to licensing it, a company or reporting unit is relieved from paying a royalty, usually expressed as a percentage of net sales, for the asset's use. The present value of the after-tax costs savings (i.e., royalty relief) at an appropriate discount rate including a tax amortization benefit indicates the value of the trade name. The Company determined the discount rate based on its performance compared to similar market participants, factored by risk in forecasting using a modified capital asset pricing model.
Property and Equipment

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. The Company depreciates the cost of property and equipment, including assets recorded under finance leases, over the shorter of the remaining lease term or the estimated useful lives of the related assets, primarily using the straight-line method. The estimated useful lives for property and equipment classifications are as follows:

 

Classification

Estimated Useful Lives

Furniture and fixtures

 

3-10 years

 

Data processing equipment

 

3-5 years

 

Automobiles and other

 

3-4 years

 

Buildings and improvements

 

7-40 years

 

 

 

Property and equipment, including assets under finance leases, consisted of the following at December 31, 2020 and 2019:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Land

 

$

338

 

 

$

331

 

Buildings and improvements

 

 

32,087

 

 

 

28,840

 

Furniture and fixtures

 

 

28,264

 

 

 

29,898

 

Data processing equipment

 

 

64,781

 

 

 

57,574

 

Automobiles

 

 

314

 

 

 

236

 

Total property and equipment

 

 

125,784

 

 

 

116,879

 

Less accumulated depreciation

 

 

(89,382

)

 

 

(85,454

)

Net property and equipment

 

$

36,402

 

 

$

31,425

 

 

Depreciation on property and equipment, including property under finance leases and amortization of leasehold improvements, was $11,750,000, $11,363,000, and $12,862,000 for the years ended December 31, 2020, 2019, and 2018, respectively.
Capitalized Software

Capitalized Software

Capitalized software costs reflect costs related to internally developed or purchased software used by the Company that has expected future economic benefits. Certain internal and external costs incurred during the application development stage are capitalized. Costs incurred during the preliminary project and post implementation stages, including training and maintenance costs, are expensed as incurred. The majority of these capitalized software costs consist of internal payroll costs and external payments for software development, purchases and related services. These capitalized software costs are typically amortized over periods ranging from three to ten years, depending on the estimated life of each software application. Amortization expense for capitalized software was $16,709,000, $17,873,000, and $20,066,000 for the years ended December 31, 2020, 2019, and 2018, respectively.
Self-Insured Risks

Self-Insured Risks

The Company self-insures certain risks consisting primarily of professional liability, auto liability, and employee medical, disability, and workers' compensation liability. Insurance coverage is obtained for catastrophic property and casualty exposures, including professional liability on a claims-made basis, and those risks required to be insured by law or contract. Most of these self-insured risks are in the U.S. Provisions for claims under the self-insured programs are made based on the Company's estimates of the aggregate liabilities for claims incurred, including estimated legal fees, losses that have occurred but have not been reported to the Company, and for adverse developments on reported losses. The estimated liabilities are calculated based on historical claims experience, the expected lives of the claims, and other factors considered relevant by management. Changes in these estimates may occur as additional information becomes available. The Company believes its provisions for self-insured losses are adequate to cover the expected cost of losses incurred. However, these provisions are estimates and amounts ultimately settled may be significantly greater or less than the provisions established. The estimated liabilities for claims incurred under the Company's self-insured workers' compensation and employee disability programs are discounted at the prevailing risk-free interest rate for U.S. government securities of an appropriate duration. All other self-insured liabilities are undiscounted. At December 31, 2020 and 2019, accrued liabilities for self-insured risks totaled $25,004,000 and $26,838,000, respectively, including current liabilities of $11,390,000 and $11,311,000, respectively. The noncurrent liabilities are included in "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets.
Income Taxes

Income Taxes

The Company accounts for certain income and expense items differently for financial reporting and income tax purposes. Provisions for deferred taxes are made in recognition of these temporary differences. The most significant differences relate to accrued compensation, pension plans, self-insurance, and depreciation and amortization.

For financial reporting purposes, the provision for income taxes is the sum of income taxes both currently payable and payable on a deferred basis. Currently payable income taxes represent the liability related to the income tax returns for the current year, while the net deferred tax expense or benefit represents the change in the balance of deferred income tax assets or liabilities as reported on the Company's Consolidated Balance Sheets that are not related to balances in "Accumulated other comprehensive loss." The changes in deferred income tax assets and liabilities are determined based upon changes in the differences between the basis of assets and liabilities for financial reporting purposes and the basis of assets and liabilities for income tax purposes, measured by the enacted statutory tax rates in effect for the year in which the Company estimates these differences will reverse. The Company must estimate the timing of the reversal of temporary differences, as well as whether taxable income in future periods will be sufficient to fully recognize any gross deferred tax assets. A valuation allowance is provided when it is deemed more-likely-than-not that some portion or all of a deferred tax asset will not be realized.

In 2017, the Company estimated the impact of the Tax Cuts and Jobs Act (the "Tax Act") incorporating assumptions made based upon its current interpretation of the Tax Act and included them in its consolidated financial statements for the year ended December 31, 2017. The SEC Staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company recognized provisional tax impacts related to a one-time U.S. tax liability on those earnings a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”) and revaluation of domestic deferred tax balances, and included those amounts in its consolidated financial statements for the year ended December 31, 2017. In the period ended December 31, 2018, the Company completed its accounting for the Tax Act in accordance with SAB 118. As a result, the Company recorded additional income tax expense of $3,583,000. This expense consisted of substantially all of the $6,977,000 valuation allowance established against foreign tax credits and $102,000 for the revaluation of deferred taxes, net of $3,496,000 of Transition Tax release of uncertain tax positions and adjustments. In 2018, the Company completed the accounting for the Tax Act within the one year measurement period, as allowed under SAB 118.

Other factors which influence the effective tax rate used for financial reporting purposes include changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits. See Note 7, "Income Taxes" for further discussion.

Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. At December 31, 2018, the Company elected to account for GILTI in the year the tax is incurred.
Sales And Other Tax Policy

Sales and Other Taxes

In certain jurisdictions, both in the U.S. and internationally, various governments and taxing authorities require the Company to assess and collect sales and other taxes, such as value added taxes, on certain services that the Company renders and bills to its customers. The majority of the Company's revenues are not currently subject to these types of taxes. These taxes are not recorded as additional revenues or expenses in the Company's Consolidated Statements of Operations, but are recorded on the Consolidated Balance Sheets as pass-through amounts until remitted.
Foreign Currency

Foreign Currency

Foreign currency transactions for the years ended December 31, 2020 and 2019 resulted in net losses of $219,000 and $243,000, respectively. Foreign currency transactions for the year ended December 31, 2018 resulted in a net gain of $73,000.

For operations outside the U.S. that prepare financial statements in currencies other than the U.S. dollar, results of operations and cash flows are translated into U.S. dollars at average exchange rates during the period, and assets and liabilities are translated at end-of-period exchange rates. The resulting translation adjustments, on a net basis, are included in "Other Comprehensive Income" in the Company's Consolidated Statements of Comprehensive Income, and the accumulated translation adjustment is reported as a component of "Accumulated other comprehensive loss" in the Company's Consolidated Balance Sheets.
Advertising Costs

Advertising Costs

Advertising costs are expensed in the period in which the costs are incurred. Advertising expenses were $990,000, $2,394,000, and $3,572,000, respectively, for the years ended December 31, 2020, 2019, and 2018. As several conventions were cancelled as a result of the COVID-19 pandemic, the Company’s advertising costs decreased in 2020.

Adoption and Pending Adoption of New Accounting Standards

Adoption of New Accounting Standards

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" together with its subsequent related amendments in 2018 and 2019, collectively referred to as Topic 326. Topic 326 replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value, including trade receivables, with gains and losses recognized through income. The Company estimates its expected credit losses based on past experience, current conditions and reasonable and supportable forecasts affecting collectability of these assets. We evaluate the risks related to our trade receivables and contract assets by considering customer type, geography, and aging. Topic 326 is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted Topic 326 on January 1, 2020 using a modified retrospective approach. As a result of adopting Topic 326, the Company recognized a cumulative effect adjustment to decrease the opening balance of retained earnings by $607,000.

The Company has included assumptions related to expected credit losses from the impact of the COVID-19 pandemic in its results of operations for the year ended December 31, 2020.

Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This update amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, by removing and modifying certain disclosure requirements and adding others. This update removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. This update requires the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, this update clarifies that transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities are required to be disclosed. These updates are effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on disclosures related to fair value measurement.

Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract

In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40).” This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. This update also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Further, this update requires the presentation of the amortization expense in the statement of income, the presentation of the capitalized costs on the statement of financial position and the classification of payments for capitalized costs in the statement of cash flows related to capitalized implementation costs to be treated the same as the fees for service component of the associated hosting arrangement. The update is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. The Company adopted this guidance on January 1, 2020 with no material impact on its results of operation, financial condition or cash flows.

Pending Adoption of Recently Issued Accounting Standards

Compensation-Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit Plans

In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)." This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This update removes certain disclosure requirements including, but not limited to, the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the amount and timing of plan assets expected to be returned to the employer. This update requires the disclosure of the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This update also clarifies requirements for entities that provide aggregate disclosures for two or more plans. The update is effective for annual periods beginning after December 15, 2020, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on disclosures related to its retirement plans.

Simplifying the Accounting for Income Taxes

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 amends ASC 740 to simplify the accounting for income taxes by removing certain exceptions for foreign equity investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in the accounting standard under the FASB’s simplification initiative. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Upon adoption, the amendments in ASU 2019-12 should be applied on a prospective basis to all periods presented. Early adoption is permitted. The Company is currently assessing the impact of the adoption of the new guidance.
Earnings per Share

The Company computes earnings per share of CRD-A and CRD-B using the two-class method, which allocates the undistributed earnings for each period to each class on a proportionate basis. The Company's Board of Directors has the right, but not the obligation, to declare higher dividends on CRD-A than on CRD-B, subject to certain limitations. In periods when the dividend is the same for CRD-A and CRD-B or when no dividends are declared or paid to either class, the two-class method generally will yield the same earnings per share for CRD-A and CRD-B. During 2020, 2019 and 2018, the Board of Directors declared a higher dividend on CRD-A than on CRD-B.
v3.20.4
Basis of Presentation (Policies)
 12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Lease Commitments

The Company determines if an arrangement is a lease at inception. The Company's and its subsidiaries' leases include office space, computer equipment, and automobiles under operating and finance leases. These lease agreements have remaining lease terms of 1 to 12 years. Some of these lease agreements include options to extend the leases for up to 5 years, options to terminate the leases within 1 year, rental escalation clauses and periodic adjustments for inflation, all of which are considered in the determination of lease payments. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.

For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of the fixed lease payments over the term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability. The Company does not separate nonlease components from lease components and instead accounts for each as a single lease component for all classes of its assets. The Company applies a portfolio approach to effectively account for the right-of-use asset and lease liability for certain equipment leases.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement.

The Company, as sublessor, subleases certain office space which mostly consists of a two-building office complex in Plantation, Florida in which the terms of the primary lease and the related subleases end in December 2021.
v3.20.4
Significant Accounting and Reporting Policies (Tables)
 12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Allowance For Expected Credit Losses

A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2020, 2019, and 2018 is as follows:

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Allowance for expected credit losses, January 1

 

$

9,348

 

 

$

9,625

 

 

$

12,588

 

Add/ (Deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Adoption of Topic 326

 

 

(464

)

 

 

—

 

 

 

—

 

Provision for bad debt expense

 

 

1,504

 

 

 

1,588

 

 

 

2,709

 

Write-offs, net of recoveries

 

 

(908

)

 

 

(81

)

 

 

(3,695

)

Adjustments for business acquisitions and dispositions

 

 

(111

)

 

 

—

 

 

 

(1,612

)

Currency translation and other changes

 

 

95

 

 

 

(1,784

)

 

 

(365

)

Allowance for expected credit losses, December 31

 

$

9,464

 

 

$

9,348

 

 

$

9,625

 
Property and Equipment The estimated useful lives for property and equipment classifications are as follows:

 

Classification

Estimated Useful Lives

Furniture and fixtures

 

3-10 years

 

Data processing equipment

 

3-5 years

 

Automobiles and other

 

3-4 years

 

Buildings and improvements

 

7-40 years

 

Property and equipment, including assets under finance leases, consisted of the following at December 31, 2020 and 2019:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Land

 

$

338

 

 

$

331

 

Buildings and improvements

 

 

32,087

 

 

 

28,840

 

Furniture and fixtures

 

 

28,264

 

 

 

29,898

 

Data processing equipment

 

 

64,781

 

 

 

57,574

 

Automobiles

 

 

314

 

 

 

236

 

Total property and equipment

 

 

125,784

 

 

 

116,879

 

Less accumulated depreciation

 

 

(89,382

)

 

 

(85,454

)

Net property and equipment

 

$

36,402

 

 

$

31,425

 
v3.20.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Disaggregation of Revenue

The following table presents Crawford Claims Solutions revenues before reimbursements disaggregated by geography for the years ended December 31, 2020 and 2019. The Company considers all Crawford Claims Solutions revenues to be derived from one service line.

 

 

(In thousands)

 

Year Ended December 31,

 

2020

 

 

2019

 

U.S.

 

$

166,441

 

 

$

136,524

 

U.K.

 

 

65,855

 

 

 

63,715

 

Canada

 

 

34,020

 

 

 

47,712

 

Australia

 

 

47,481

 

 

 

45,417

 

Europe

 

 

28,298

 

 

 

28,915

 

Rest of World

 

 

14,352

 

 

 

17,554

 

Total Crawford Claims Solutions Revenues before Reimbursements

 

$

356,447

 

 

$

339,837

 

The following table presents Crawford TPA Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2020 and 2019.

 

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

(in thousands)

 

Claims

Management

Services

 

 

Medical

Management

Services

 

 

Total

 

 

Claims

Management

Services

 

 

Medical

Management

Services

 

 

Total

 

U.S.

 

$

143,940

 

 

$

149,506

 

 

$

293,446

 

 

$

144,985

 

 

$

170,256

 

 

$

315,241

 

U.K.

 

 

10,866

 

 

 

—

 

 

 

10,866

 

 

 

11,254

 

 

 

—

 

 

 

11,254

 

Canada

 

 

25,911

 

 

 

—

 

 

 

25,911

 

 

 

33,234

 

 

 

—

 

 

 

33,234

 

Europe and Rest of World

 

 

34,760

 

 

 

—

 

 

 

34,760

 

 

 

34,127

 

 

 

—

 

 

 

34,127

 

Total Crawford TPA Solutions Revenues before Reimbursements

 

$

215,477

 

 

$

149,506

 

 

$

364,983

 

 

$

223,600

 

 

$

170,256

 

 

$

393,856

 

The following table presents Crawford Specialty Solutions revenues before reimbursements disaggregated by service line and geography for the years ended December 31, 2020 and 2019.

 

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

(in thousands)

 

Global

Technical

Services

 

 

Contractor

Connection

 

 

Total

 

 

Global

Technical

Services

 

 

Contractor

Connection

 

 

Total

 

U.S.

 

$

39,930

 

 

$

71,005

 

 

$

110,935

 

 

$

40,526

 

 

$

76,914

 

 

$

117,440

 

U.K.

 

 

45,212

 

 

 

6,612

 

 

 

51,824

 

 

 

45,803

 

 

 

5,565

 

 

 

51,368

 

Canada

 

 

23,066

 

 

 

6,166

 

 

 

29,232

 

 

 

25,981

 

 

 

7,511

 

 

 

33,492

 

Australia

 

 

21,927

 

 

 

929

 

 

 

22,856

 

 

 

22,273

 

 

 

792

 

 

 

23,065

 

Europe

 

 

20,680

 

 

 

48

 

 

 

20,728

 

 

 

20,540

 

 

 

10

 

 

 

20,550

 

Rest of World

 

 

25,487

 

 

 

—

 

 

 

25,487

 

 

 

26,194

 

 

 

—

 

 

 

26,194

 

Total Crawford Specialty Solutions Revenues before Reimbursements

 

$

176,302

 

 

$

84,760

 

 

$

261,062

 

 

$

181,317

 

 

$

90,792

 

 

$

272,109

 
Schedule of Customer Contract Liabilities

The table below presents the deferred revenues balance as of January 1, 2020 and the significant activity affecting deferred revenues during the year ended December 31, 2020:

 

(In Thousands)

 

 

 

 

Customer Contract Liabilities:

 

Deferred Revenue

 

Balance at January 1, 2020

 

$

52,368

 

Annual additions

 

 

76,379

 

Revenue recognized from prior periods

 

 

(34,943

)

Revenue recognized from current year additions

 

 

(42,435

)

Balance as of December 31, 2020

 

$

51,369

 
v3.20.4
Business Acquisitions and Dispositions (Tables)
 12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Schedule of Valuation Identified Assets Acquired and Liabilities Assumed

The preliminary valuation of the assets acquired and liabilities assumed for Crawford Carvallo is as follows:

v3.20.4
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill

The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019:

 

 

 

Crawford

Claims

Solutions

 

 

Crawford TPA

Solutions

 

 

Crawford

Specialty

Solutions

 

 

Total

 

 

 

(In thousands)

 

Balance at December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

55,553

 

 

$

168,730

 

 

$

73,621

 

 

$

297,904

 

Accumulated impairment losses

 

 

(20,407

)

 

 

(159,424

)

 

 

(21,183

)

 

$

(201,014

)

Net goodwill

 

 

35,146

 

 

 

9,306

 

 

 

52,438

 

 

 

96,890

 

2019 Activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill of acquired businesses

 

 

—

 

 

 

—

 

 

 

1,164

 

 

 

1,164

 

Impairment of goodwill

 

 

(17,484

)

 

 

—

 

 

 

—

 

 

 

(17,484

)

Foreign currency effects

 

 

6

 

 

 

4

 

 

 

62

 

 

 

72

 

Balance at December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

55,559

 

 

 

168,734

 

 

 

74,847

 

 

 

299,140

 

Accumulated impairment losses

 

 

(37,891

)

 

 

(159,424

)

 

 

(21,183

)

 

 

(218,498

)

Net goodwill

 

 

17,668

 

 

 

9,310

 

 

 

53,664

 

 

 

80,642

 

2020 Activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill of acquired businesses

 

 

—

 

 

 

2,857

 

 

 

2,644

 

 

 

5,501

 

Impairment of goodwill

 

 

(17,674

)

 

 

—

 

 

 

—

 

 

 

(17,674

)

Goodwill of disposed business

 

 

—

 

 

 

—

 

 

 

(1,990

)

 

 

(1,990

)

Foreign currency effects

 

 

6

 

 

 

12

 

 

 

40

 

 

 

58

 

Balance at December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

55,565

 

 

 

171,603

 

 

 

75,541

 

 

 

302,709

 

Accumulated impairment losses

 

 

(55,565

)

 

 

(159,424

)

 

 

(21,183

)

 

 

(236,172

)

Net goodwill

 

$

—

 

 

$

12,179

 

 

$

54,358

 

 

$

66,537

 
Schedule of Finite-Lived Intangible Assets

The following is a summary of finite-lived intangible assets acquired through business acquisitions as of December 31, 2020 and 2019:

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net

Carrying

Value

 

 

Weighted-

Average

Amortization

Period

 

 

(In thousands, except years)

 

 

 

December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

131,948

 

 

$

(101,319

)

 

$

30,629

 

 

3.3 years

Technology-based

 

 

18,183

 

 

 

(10,174

)

 

$

8,009

 

 

6.5 years

Trade name

 

 

3,123

 

 

 

(1,737

)

 

$

1,386

 

 

6.0 years

Other

 

 

5,794

 

 

 

(5,489

)

 

$

305

 

 

10.1 years

Total

 

$

159,048

 

 

$

(118,719

)

 

$

40,329

 

 

6.7 years

December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

127,362

 

 

$

(92,354

)

 

$

35,008

 

 

4.0 years

Technology-based

 

 

16,562

 

 

 

(9,108

)

 

 

7,454

 

 

7.0 years

Trade name

 

 

1,795

 

 

 

(1,636

)

 

 

159

 

 

1.7 years

Other

 

 

5,485

 

 

 

(3,869

)

 

 

1,616

 

 

1.8 years

Total

 

$

151,204

 

 

$

(106,967

)

 

$

44,237

 

 

3.8 years
Schedule of Finite-lived Intangible Assets, Future Amortization Expense

At December 31, 2020, annual estimated aggregate amortization expense for intangible assets subject to amortization for the next five years is as follows:

 

 

 

Annual

Amortization

Expense

 

Year Ending December 31,

 

(In thousands)

 

2021

 

$

9,678

 

2022

 

 

4,711

 

2023

 

 

4,614

 

2024

 

 

4,152

 

2025

 

 

4,050

 
Schedule of Indefinite-Lived Intangible Assets

The following is a summary of indefinite-lived intangible assets at December 31, 2020 and 2019:

 

 

 

Gross Carrying

Amount

 

 

Accumulated

Impairments

 

 

Net Carrying

Value

 

 

 

(In thousands)

 

December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

$

32,503

 

 

$

(1,656

)

 

$

30,847

 

December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

Trade names

 

$

32,502

 

 

$

(1,656

)

 

$

30,846

 
v3.20.4
Short-Term and Long-Term Debt, Including Finance Leases (Tables)
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Long-term Debt Instruments

Long-term debt consisted of the following at December 31, 2020 and 2019:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Credit Facility

 

$

112,855

 

 

$

176,877

 

Finance lease and other obligations

 

 

740

 

 

 

77

 

Total long-term debt and finance leases

 

 

113,595

 

 

 

176,954

 

Less: portion of Credit Facility classified as short-term

 

 

(1,570

)

 

 

(28,531

)

Less: current installments of finance leases and other obligations

 

 

(267

)

 

 

(15

)

Total long-term debt and finance leases, less current installments

 

$

111,758

 

 

$

148,408

 
Schedule of Maturities of Long-Term Debt

Principal repayments of long-term debt, including current portions, finance leases and other obligations, as of December 31, 2020 are expected to be as follows, assuming no prepayments or extensions beyond the stated maturity:

 

 

 

Long-term Debt

 

 

Finance Lease and Other Obligations

 

 

Total

 

Year Ending December 31,

 

(In thousands)

 

2021

 

$

1,570

 

 

$

267

 

 

$

1,837

 

2022

 

 

111,285

 

 

 

239

 

 

 

111,524

 

2023

 

 

—

 

 

 

164

 

 

 

164

 

2024

 

 

—

 

 

 

47

 

 

 

47

 

2025

 

 

—

 

 

 

23

 

 

 

23

 

Total

 

$

112,855

 

 

$

740

 

 

$

113,595

 
v3.20.4
Lease Commitments (Tables)
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Lease-Related Assets and Liabilities The following table presents the lease-related assets and liabilities recorded on the Company's Consolidated Balance Sheets related to its operating leases:

 

(in thousands)

 

Classification on Balance Sheet

 

December 31,

2020

 

December 31,

2019

 

Assets:

 

 

 

 

 

 

 

 

 

Operating lease

 

Operating lease right-of-use assets, net

 

$

109,315

 

$

102,354

 

Liabilities:

 

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

Current operating lease liabilities

 

 

32,745

 

 

30,765

 

Noncurrent operating lease liabilities

 

Noncurrent operating lease liabilities

 

 

93,228

 

 

87,064

 

Total operating lease liabilities

 

 

 

$

125,973

 

$

117,829

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Remaining Lease Term

 

 

 

6.30 years

 

5.72 years

 

Weighted-Average Discount Rate (1)

 

 

 

 

5.3

%

 

5.4

%

(1)

Upon adoption of Topic 842, discount rates used for existing leases were established at the transition date of January 1, 2019.
Lease Cost

The components of operating lease costs within the Company's Consolidated Statements of Operations consisted of the following:

 

 

 

Year Ended

 

(in thousands)

 

December 31, 2020

 

December 31, 2019

 

Operating lease cost

 

$

38,242

 

$

37,824

 

Variable lease cost

 

 

8,037

 

 

7,948

 

Sublease income

 

 

4,090

 

 

4,163

 

Supplemental cash flow information related to operating leases were as follows:

 

 

 

Year Ended

 

(in thousands)

 

December 31, 2020

 

December 31, 2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

37,091

 

$

38,906

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations (1)

 

$

40,535

 

$

30,056

 

 

(1)

The year ended December 31, 2019 amount excludes $122,300,000 of right-of-use assets recognized upon adoption of Topic 842.

 
Operating Lease Maturities

Future undiscounted operating lease payments reconciled to total operating lease liabilities are as follows:

 

(in thousands)

 

December 31, 2020

 

2021

 

$

37,976

 

2022

 

 

25,214

 

2023

 

 

17,686

 

2024

 

 

14,496

 

2025

 

 

11,770

 

Thereafter

 

 

41,624

 

Total undiscounted lease payments

 

 

148,766

 

Less imputed interest

 

 

(22,793

)

Present value of future lease payments

 

$

125,973

 
v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income (loss) Before Income Taxes

Income before income taxes consisted of the following:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

U.S.

 

$

(1,029

)

 

$

(1,472

)

 

$

4,634

 

Foreign

 

 

40,117

 

 

 

25,109

 

 

 

39,497

 

Income before income taxes

 

$

39,088

 

 

$

23,637

 

 

$

44,131

 
Schedule of Provision for Income Taxes

The provision for income taxes consisted of the following:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal and state

 

$

12,561

 

 

$

1,546

 

 

$

1,065

 

Foreign

 

 

8,457

 

 

 

9,525

 

 

 

9,530

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal and state

 

 

(8,870

)

 

 

1,643

 

 

 

4,051

 

Foreign

 

 

(135

)

 

 

1,397

 

 

 

3,896

 

Provision for income taxes

 

$

12,013

 

 

$

14,111

 

 

$

18,542

 
Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes is reconciled to the federal statutory income tax rate of 21% in 2020, 2019, and 2018, as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Federal income taxes at statutory rate

 

$

8,208

 

 

$

4,964

 

 

$

9,267

 

State income taxes, net of federal benefit

 

 

325

 

 

 

505

 

 

 

2,685

 

Goodwill impairment

 

 

2,322

 

 

 

1,883

 

 

 

—

 

Foreign taxes

 

 

3,328

 

 

 

2,276

 

 

 

2,150

 

Change in valuation allowance

 

 

(374

)

 

 

3,919

 

 

 

9,540

 

Research and development credits

 

 

(1,001

)

 

 

(626

)

 

 

(273

)

Foreign tax credits

 

 

(1,150

)

 

 

(283

)

 

 

(429

)

Nondeductible meals and entertainment

 

 

377

 

 

 

724

 

 

 

782

 

US tax reform - revaluation of deferred taxes

 

 

—

 

 

 

—

 

 

 

102

 

US tax reform - transition tax, net of credits

 

 

—

 

 

 

—

 

 

 

(3,496

)

Change in permanent reinvestment assertion

 

 

776

 

 

 

—

 

 

 

(1,792

)

Disposals and liquidations of businesses

 

 

(935

)

 

 

—

 

 

 

—

 

Global intangible low-tax income, net of credits

 

 

(54

)

 

 

892

 

 

 

454

 

Foreign-derived intangible income deduction

 

 

(115

)

 

 

(315

)

 

 

(323

)

Tax rate changes

 

 

(359

)

 

 

486

 

 

 

(392

)

Other

 

 

665

 

 

 

(314

)

 

 

267

 

Provision for income taxes

 

$

12,013

 

 

$

14,111

 

 

$

18,542

 
Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes consisted of the following at December 31, 2020 and 2019:

 

 

 

2020

 

 

2019

 

 

 

(In thousands)

 

Accounts receivable allowance

 

$

1,019

 

 

$

1,163

 

Accrued compensation

 

 

14,655

 

 

 

9,553

 

Accrued pension liabilities

 

 

4,950

 

 

 

9,116

 

Self-insured risks

 

 

5,746

 

 

 

4,301

 

Deferred revenues

 

 

5,376

 

 

 

4,249

 

Interest

 

 

2,419

 

 

 

5,399

 

Tax credit carryforwards

 

 

7,090

 

 

 

11,634

 

Loss carryforwards

 

 

22,805

 

 

 

25,523

 

Lease liability

 

 

31,435

 

 

 

29,785

 

Other

 

 

2,158

 

 

 

3,436

 

Gross deferred income tax assets

 

 

97,653

 

 

 

104,159

 

Unbilled revenues

 

 

5,311

 

 

 

6,522

 

Repatriated earnings

 

 

776

 

 

 

—

 

Depreciation and amortization

 

 

23,474

 

 

 

28,025

 

Lease right-of-use asset

 

 

27,513

 

 

 

25,865

 

Gross deferred income tax liabilities

 

 

57,074

 

 

 

60,412

 

Net deferred income tax assets before valuation allowance

 

 

40,579

 

 

 

43,747

 

Valuation allowance

 

 

(16,579

)

 

 

(28,128

)

Net deferred income tax assets

 

$

24,000

 

 

$

15,619

 

Amounts recognized in the Consolidated Balance Sheets consist of:

 

 

 

 

 

 

 

 

Long-term deferred income tax assets included in "Deferred income tax assets"

 

 

25,595

 

 

 

17,971

 

Long-term deferred income tax liabilities included in "Other noncurrent liabilities"

 

 

(1,595

)

 

 

(2,352

)

Net deferred income tax assets

 

$

24,000

 

 

$

15,619

 
Summary of Valuation Allowance

Changes in the Company's deferred tax valuation allowance are recorded as adjustments to the provision for income taxes. An analysis of the Company's deferred tax asset valuation allowances is as follows for the years ended December 31, 2020, 2019, and 2018.

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Balance, beginning of year

 

$

28,128

 

 

$

25,864

 

 

$

18,829

 

Other changes

 

 

(11,549

)

 

 

2,264

 

 

 

7,035

 

Balance, end of year

 

$

16,579

 

 

$

28,128

 

 

$

25,864

 
Summary of Unrecognized Income Tax Benefits

A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows: 

 

 

 

(In thousands)

 

Balance at December 31, 2017

 

$

11,297

 

Additions for tax provisions related to the current year

 

 

54

 

Reductions for tax positions related to prior years

 

 

(3,941

)

Currency translation adjustment

 

 

(9

)

Balance at December 31, 2018

 

$

7,401

 

Additions for tax provisions related to the current year

 

 

515

 

Additions for tax positions related to prior years

 

 

646

 

Reductions for tax positions related to prior years

 

 

(113

)

Reductions for settlements

 

 

(2,642

)

Lapses of applicable statutes of limitation

 

 

(520

)

Balance at December 31, 2019

 

$

5,287

 

Additions for tax provisions related to the current year

 

 

92

 

Additions for tax positions related to prior years

 

 

2

 

Reductions for tax positions related to prior years

 

 

(505

)

Reductions for settlements

 

 

(516

)

Lapses of applicable statutes of limitation

 

 

(582

)

Balance at December 31, 2020

 

$

3,778

 
v3.20.4
Retirement Plans (Tables)
 12 Months Ended
Dec. 31, 2020
Compensation And Retirement Disclosure [Abstract]  
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The majority of the Company's defined benefit pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2020 and 2019:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Projected benefit obligations

 

$

494,273

 

 

$

486,305

 

Fair value of plans' assets

 

 

437,234

 

 

 

417,074

 
Schedule Of Fair Value Of Plan Assets In Excess Of Benefit Obligations Table Text Block

Certain of the Company's U.K. Plans have fair values of plan assets that exceed the projected benefit obligations. For these plans, the projected benefit obligations and the fair value of plan assets were as follows as of December 31, 2020 and 2019:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Projected benefit obligations

 

$

267,200

 

 

$

261,953

 

Fair value of plans' assets

 

 

303,957

 

 

 

296,943

 
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

A reconciliation of the beginning and ending balances of the projected benefit obligations and the fair value of plans' assets for the Company's defined benefit pension plans as of the plans' most recent measurement dates is as follows:

Year Ended December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Projected Benefit Obligations:

 

 

 

 

 

 

 

 

Beginning of measurement period

 

$

748,258

 

 

$

694,482

 

Service cost

 

 

1,295

 

 

 

1,278

 

Interest cost

 

 

16,643

 

 

 

22,408

 

Employee contributions

 

 

35

 

 

 

45

 

Actuarial loss (gain)

 

 

49,938

 

 

 

77,549

 

Plan settlements

 

 

(1,450

)

 

 

—

 

Benefits paid

 

 

(55,150

)

 

 

(50,415

)

Foreign currency effects

 

 

1,904

 

 

 

2,911

 

End of measurement period

 

 

761,473

 

 

 

748,258

 

Fair Value of Plans' Assets:

 

 

 

 

 

 

 

 

Beginning of measurement period

 

 

714,017

 

 

 

649,688

 

Actual return on plans' assets

 

 

71,446

 

 

 

109,670

 

Employer contributions

 

 

10,446

 

 

 

1,112

 

Employee contributions

 

 

35

 

 

 

522

 

Plan settlements

 

 

(1,450

)

 

 

—

 

Benefits paid

 

 

(55,150

)

 

 

(50,415

)

Foreign currency effects

 

 

1,847

 

 

 

3,440

 

End of measurement period

 

 

741,191

 

 

 

714,017

 

Unfunded Status

 

$

(20,282

)

 

$

(34,241

)

 
Schedule of Net Funded Status

The underfunded status of the Company's defined benefit pension plans recognized in the Consolidated Balance Sheets at December 31 consisted of:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

U.S. Qualified Plan

 

$

51,645

 

 

$

63,538

 

Other international plans

 

 

2,241

 

 

 

2,371

 

Subtotal, included in "Accrued pension liabilities"

 

 

53,886

 

 

 

65,909

 

U.K. prepaid pension asset included in "Other noncurrent assets"

 

 

(36,757

)

 

 

(34,990

)

Unfunded status of nonqualified defined benefit deferred pension plans included in "Other accrued liabilities"

 

 

316

 

 

 

310

 

Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities"

 

 

2,837

 

 

 

3,012

 

Total unfunded status

 

$

20,282

 

 

$

34,241

 

Accumulated other comprehensive loss, before income taxes

 

$

(264,244

)

 

$

(268,275

)
Schedule of Net Unrecognized Actuarial Gain (loss)

The following tables set forth the 2020 and 2019 changes in accumulated other comprehensive loss for the Company's defined benefit retirement plans and post-retirement medical benefits plan on a combined basis:

 

 

Defined Benefit

Pension Plans

 

 

Post-Retirement

Medical

Benefits Plan

 

 

 

(In thousands)

 

Net unrecognized actuarial (loss) gain, December 31, 2018

 

$

(280,948

)

 

$

304

 

Amortization of net loss (gain)

 

 

10,836

 

 

 

(152

)

Net gain arising during the year

 

 

2,311

 

 

 

—

 

Currency translation

 

 

(626

)

 

 

—

 

Net unrecognized actuarial (loss) gain, December 31, 2019

 

 

(268,427

)

 

 

152

 

Amortization of net loss (gain)

 

 

10,804

 

 

 

(152

)

Net loss arising during the year

 

 

(6,510

)

 

 

—

 

Currency translation

 

 

(111

)

 

 

—

 

Net unrecognized actuarial loss, December 31, 2020

 

$

(264,244

)

 

$

—

 

 
Schedule of Expected Benefit Payments

Net periodic benefit cost related to all of the Company's defined benefit pension plans recognized in the Company's Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018 included the following components:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Service cost

 

$

1,295

 

 

$

1,278

 

 

$

1,395

 

Interest cost

 

 

16,643

 

 

 

22,376

 

 

 

20,933

 

Expected return on assets

 

 

(28,016

)

 

 

(29,654

)

 

 

(34,267

)

Amortization of actuarial loss

 

 

10,804

 

 

 

10,837

 

 

 

10,744

 

Net periodic benefit cost (credit)

 

$

726

 

 

$

4,837

 

 

$

(1,195

)

Over the next ten years, the following benefit payments are expected to be required to be made from the Company's U.S. and U.K. defined benefit pension plans:

 

Year Ending December 31,

 

Expected Benefit

Payments

 

 

 

(In thousands)

 

2021

 

$

42,436

 

2022

 

 

42,590

 

2023

 

 

42,611

 

2024

 

 

42,440

 

2025

 

 

42,329

 

2026-2030

 

 

206,549

 
Schedule of Assumptions Used Certain assumptions used in computing the benefit obligations and net periodic benefit cost for the U.S. and U.K. defined benefit pension plans were as follows:

U.S. Qualified Plan:

 

2020

 

 

2019

 

Discount rate used to compute benefit obligations

 

 

2.38

%

 

 

3.15

%

Discount rate used to compute periodic benefit cost

 

 

3.15

%

 

 

4.31

%

Expected long-term rates of return on plans' assets

 

 

4.70

%

 

 

6.10

%

 

U.K. Defined Benefit Plans:

 

2020

 

 

2019

 

Discount rate used to compute benefit obligations

 

 

1.60

%

 

 

1.93

%

Discount rate used to compute periodic benefit cost

 

 

1.93

%

 

 

2.77

%

Expected long-term rates of return on plans' assets

 

 

2.54

%

 

 

3.28

%
Schedule of Allocation of Plan Assets

Asset allocations at the respective measurement dates, by asset category, for the Company's U.S. and U.K. qualified defined benefit pension plans were as follows:

 

 

 

U.S. Qualified Plan

 

 

U.K. Plans

 

December 31,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Equity securities

 

 

23.4

%

 

 

21.4

%

 

 

17.1

%

 

 

17.9

%

Fixed income securities

 

 

67.2

%

 

 

69.3

%

 

 

67.4

%

 

 

68.3

%

Alternative strategies

 

 

6.2

%

 

 

5.9

%

 

 

14.7

%

 

 

13.0

%

Cash, cash equivalents and short-term investment funds

 

 

3.1

%

 

 

3.4

%

 

 

0.9

%

 

 

0.8

%

Total asset allocation

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%
v3.20.4
Common Stock and Earnings per Share (Tables)
 12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Schedule of Computations of Basic Net Income Attributable to Shareholders of Crawford & Company per Common Share

The computations of basic net income attributable to shareholders of Crawford & Company per common share were as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

CRD-A

 

 

CRD-B

 

 

CRD-A

 

 

CRD-B

 

 

CRD-A

 

 

CRD-B

 

 

 

(In thousands, except earnings per share)

 

Earnings per share - basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation of undistributed earnings (loss)

 

$

10,743

 

 

$

7,908

 

 

$

(392

)

 

$

(294

)

 

$

6,941

 

 

$

5,509

 

Dividends paid

 

 

5,815

 

 

 

3,830

 

 

 

8,592

 

 

 

4,579

 

 

 

8,639

 

 

 

4,889

 

Net income available to common shareholders, basic

 

 

16,558

 

 

 

11,738

 

 

 

8,200

 

 

 

4,285

 

 

 

15,580

 

 

 

10,398

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 

30,605

 

 

 

22,527

 

 

 

30,637

 

 

 

22,975

 

 

 

30,805

 

 

 

24,449

 

Earnings per share - basic

 

$

0.54

 

 

$

0.52

 

 

$

0.27

 

 

$

0.19

 

 

$

0.51

 

 

$

0.43

 
Schedule of Computations of Diluted Net Income Attributable to Shareholders of Crawford & Company per Common Share

The computations of diluted net income attributable to shareholders of Crawford & Company per common share were as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

CRD-A

 

 

CRD-B

 

 

CRD-A

 

 

CRD-B

 

 

CRD-A

 

 

CRD-B

 

 

 

(In thousands, except earnings per share)

 

Earnings per share - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation of undistributed earnings (loss)

 

$

10,781

 

 

$

7,870

 

 

$

(394

)

 

$

(292

)

 

$

7,003

 

 

$

5,447

 

Dividends paid

 

 

5,815

 

 

 

3,830

 

 

 

8,592

 

 

 

4,579

 

 

 

8,639

 

 

 

4,889

 

Net income available to common shareholders, diluted

 

 

16,596

 

 

 

11,700

 

 

 

8,198

 

 

 

4,287

 

 

 

15,642

 

 

 

10,336

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 

30,605

 

 

 

22,527

 

 

 

30,637

 

 

 

22,975

 

 

 

30,805

 

 

 

24,449

 

Weighted-average effect of dilutive securities (1)

 

 

252

 

 

 

—

 

 

 

453

 

 

 

—

 

 

 

629

 

 

 

—

 

Weighted-average number of shares outstanding, diluted

 

 

30,857

 

 

 

22,527

 

 

 

31,090

 

 

 

22,975

 

 

 

31,434

 

 

 

24,449

 

Earnings per share - diluted

 

$

0.54

 

 

$

0.52

 

 

$

0.26

 

 

$

0.19

 

 

$

0.50

 

 

$

0.42

 
Schedule of Antidilutive Shares Excluded from Computation of Diluted Earnings per Share

Listed below are the shares excluded from the denominator in the above computation of diluted earnings per share for CRD-A because their inclusion would have been anti-dilutive:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Shares underlying stock options excluded due to the options' respective exercise prices being greater than the average stock price during the period

 

 

1,996

 

 

 

622

 

 

 

1,175

 

Performance stock grants excluded because performance conditions had not been met (1)

 

 

578

 

 

 

717

 

 

 

752

 

(1)

Compensation cost is recognized for these performance stock grants based on expected achievement rates; however no consideration is given for these performance stock grants when calculating earnings per share until the performance measurements are actually achieved.
v3.20.4
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Dec. 31, 2020
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss) The changes in components of "Accumulated other comprehensive loss" ("AOCL"), net of taxes and noncontrolling interests, included in the Company's Consolidated Balance Sheets were as follows:

 

 

Foreign currency

translation

adjustments

 

 

Retirement

liabilities

 

 

AOCL

attributable to

shareholders of

Crawford &

Company

 

 

 

(In thousands)

 

Balance at December 31, 2018

 

$

(36,352

)

 

$

(180,095

)

 

$

(216,447

)

Other comprehensive income before reclassifications

 

 

502

 

 

 

—

 

 

 

502

 

Unrealized net gains arising during the year

 

 

—

 

 

 

1,036

 

 

 

1,036

 

Amounts reclassified from accumulated other comprehensive income to net income (1)

 

 

—

 

 

 

8,002

 

 

 

8,002

 

Net current period other comprehensive income

 

 

502

 

 

 

9,038

 

 

 

9,540

 

Balance at December 31, 2019

 

 

(35,850

)

 

 

(171,057

)

 

 

(206,907

)

Other comprehensive income before reclassifications

 

 

4,595

 

 

 

—

 

 

 

4,595

 

Unrealized net losses arising during the year

 

 

—

 

 

 

(4,966

)

 

 

(4,966

)

Amounts reclassified from accumulated other comprehensive income to net income (1)

 

 

—

 

 

 

7,959

 

 

 

7,959

 

Net current period other comprehensive income

 

 

4,595

 

 

 

2,993

 

 

 

7,588

 

Acquisition/Disposition of noncontrolling interest

 

 

463

 

 

 

—

 

 

 

463

 

Balance at December 31, 2020

 

$

(30,792

)

 

$

(168,064

)

 

$

(198,856

)

(1)

Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's Consolidated Statements of Operations. See Note 8, "Retirement Plans" for additional details.
v3.20.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2020
Share Based Compensation [Abstract]  
Summary of Option Activity

A summary of option activity as of December 31, 2020, 2019, and 2018, and changes during each year, is presented below:

 

 

 

Shares

 

 

Weighted-

Average

Exercise Price

 

 

Weighted-

Average

Remaining

Contractual

Term

 

Aggregate

Intrinsic

Value

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

(In thousands)

 

Outstanding at December 31, 2017

 

 

887

 

 

$

8.53

 

 

8.4 years

 

$

527

 

Granted

 

 

582

 

 

 

8.60

 

 

 

 

 

 

 

Exercised

 

 

(21

)

 

 

4.88

 

 

 

 

 

 

 

Forfeited or expired

 

 

(154

)

 

 

8.74

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

1,294

 

 

 

8.60

 

 

8.1 years

 

 

667

 

Granted

 

 

591

 

 

 

9.70

 

 

 

 

 

 

 

Exercised

 

 

(111

)

 

 

5.91

 

 

 

 

 

 

 

Forfeited or expired

 

 

(80

)

 

 

9.24

 

 

 

 

 

 

 

Outstanding at December 31, 2019

 

 

1,694

 

 

 

9.13

 

 

7.9 years

 

 

3,969

 

Granted

 

 

660

 

 

 

8.73

 

 

 

 

 

 

 

Exercised

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Forfeited or expired

 

 

(458

)

 

 

9.05

 

 

 

 

 

 

 

Outstanding at December 31, 2020

 

 

1,896

 

 

$

9.01

 

 

7.4 years

 

$

114

 

Vested and Exercisable at December 31, 2020

 

 

1,101

 

 

$

9.06

 

 

6.6 years

 

$

26

 
Schedule of Weighted-Average Assumptions to Estimate Fair Value of Each Option

The fair value of each option was estimated on the date of grant using the Black-Scholes-Merton option-pricing formula, with the following weighted average assumptions:

 

 

 

2020

 

 

2019

 

Expected dividend yield

 

 

3.02

%

 

 

3.80

%

Expected volatility

 

 

35.48

%

 

 

36.73

%

Risk-free interest rate

 

 

1.38

%

 

 

2.56

%

Expected term of options

 

7 years

 

 

7 years

 
Nonvested Performance Shares

A summary of the status of the Company's nonvested performance shares as of December 31, 2020, 2019, and 2018, and changes during each year, is presented below:

 

 

 

Shares

 

 

Weighted-Average

Grant-Date

Fair Value

 

Nonvested at December 31, 2017

 

 

884,342

 

 

$

7.05

 

Granted

 

 

751,128

 

 

 

7.43

 

Vested

 

 

(445,311

)

 

 

5.98

 

Forfeited or unearned

 

 

(201,322

)

 

 

7.54

 

Nonvested at December 31, 2018

 

 

988,837

 

 

 

8.07

 

Granted

 

 

626,776

 

 

 

8.87

 

Vested

 

 

(214,824

)

 

 

8.49

 

Forfeited or unearned

 

 

(427,010

)

 

 

8.34

 

Nonvested at December 31, 2019

 

 

973,779

 

 

 

8.38

 

Granted

 

 

1,616,902

 

 

 

8.01

 

Vested

 

 

(224,681

)

 

 

8.33

 

Forfeited or unearned

 

 

(1,466,729

)

 

 

8.10

 

Nonvested at December 31, 2020

 

 

899,271

 

 

$

8.19

 
Restricted Shares

A summary of the status of the Company's restricted shares of CRD-A as of December 31, 2020, 2019, and 2018 and changes during each year, is presented below:

 

 

 

Shares

 

 

Weighted-Average

Grant-Date Fair

Value

 

Nonvested at December 31, 2017

 

 

112,219

 

 

$

7.89

 

Granted

 

 

112,502

 

 

 

7.81

 

Vested

 

 

(131,260

)

 

 

8.27

 

Forfeited or unearned

 

 

(21,352

)

 

 

8.43

 

Nonvested at December 31, 2018

 

 

72,109

 

 

 

7.76

 

Granted

 

 

149,496

 

 

 

9.38

 

Vested

 

 

(108,610

)

 

 

9.04

 

Forfeited or unearned

 

 

(31,387

)

 

 

9.55

 

Nonvested at December 31, 2019

 

 

81,608

 

 

 

8.35

 

Granted

 

 

117,279

 

 

 

8.34

 

Vested

 

 

(119,327

)

 

 

8.52

 

Forfeited or unearned

 

 

—

 

 

 

—

 

Nonvested at December 31, 2020

 

 

79,560

 

 

$

8.08

 
v3.20.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:

December 31,

 

2020

 

 

 

Quoted

Prices in

Active Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

 

 

 

(In thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

10,026

 

 

$

—

 

 

$

—

 

 

$

10,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent earnout liability (2)

 

 

—

 

 

 

—

 

 

 

6,151

 

 

 

6,151

 

 

 

 

December 31,

 

2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

10,028

 

 

$

—

 

 

$

—

 

 

$

10,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent earnout liability (2)

 

 

—

 

 

 

—

 

 

 

454

 

 

 

454

 

(1)

The fair values of the money market funds were based on recently quoted market prices and reported transactions in an active marketplace. Money market funds are included on the Company's Consolidated Balance Sheets in "Cash and cash equivalents."

(2)

The contingent earnout liability relates to businesses acquired during 2020 and 2019 by the Crawford Specialty Solutions and Crawford TPA Solutions operating segments. See Note 3, "Business Acquisitions and Dispositions" 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 $12,090,000. The fair value of the contingent earnout liability is included in "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets, based upon the term of the contingent earnout agreement.
Pension Plan Assets within Fair Value Hierarchy

The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.S Qualified Plan at December 31, 2020 and 2019:

December 31,

 

2020

 

 

2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In thousands)

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,861

 

 

$

—

 

 

$

—

 

 

$

2,861

 

 

$

8,082

 

 

$

—

 

 

$

—

 

 

$

8,082

 

Short-term investment funds

 

 

—

 

 

 

9,827

 

 

 

—

 

 

 

9,827

 

 

 

—

 

 

 

5,496

 

 

 

—

 

 

 

5,496

 

Common collective equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

—

 

 

 

66,145

 

 

 

—

 

 

 

66,145

 

 

 

—

 

 

 

60,039

 

 

 

—

 

 

 

60,039

 

International

 

 

—

 

 

 

28,529

 

 

 

—

 

 

 

28,529

 

 

 

—

 

 

 

26,142

 

 

 

—

 

 

 

26,142

 

Common collective fixed income funds and fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

36,007

 

 

 

207,219

 

 

 

—

 

 

 

243,226

 

 

 

51,247

 

 

 

224,747

 

 

 

—

 

 

 

275,994

 

International

 

 

—

 

 

 

28,501

 

 

 

—

 

 

 

28,501

 

 

 

—

 

 

 

3,745

 

 

 

—

 

 

 

3,745

 

Alternative strategy funds

 

 

—

 

 

 

9,248

 

 

 

15,938

 

 

 

25,186

 

 

 

—

 

 

 

8,880

 

 

 

14,766

 

 

 

23,646

 

Total plan assets

 

$

38,868

 

 

$

349,469

 

 

$

15,938

 

 

 

404,275

 

 

$

59,329

 

 

$

329,049

 

 

$

14,766

 

 

 

403,144

 

Other plan liabilities, net (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,336

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,220

)

Net plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

396,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

376,924

 

(a)

net amounts payable for unsettled security transactions.

The following table summarizes the level within the fair value hierarchy used to determine the fair value of the Company's pension plan assets for its U.K. plans at December 31, 2020 and 2019:

December 31,

 

2020

 

 

2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In thousands)

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,613

 

 

$

—

 

 

$

—

 

 

$

2,613

 

 

$

2,338

 

 

$

—

 

 

$

—

 

 

$

2,338

 

Common collective equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

—

 

 

 

44,461

 

 

 

—

 

 

 

44,461

 

 

 

—

 

 

 

43,613

 

 

 

—

 

 

 

43,613

 

International

 

 

—

 

 

 

7,510

 

 

 

—

 

 

 

7,510

 

 

 

—

 

 

 

9,418

 

 

 

—

 

 

 

9,418

 

Common collective fixed income funds and fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investment funds:

 

 

—

 

 

 

162,276

 

 

 

—

 

 

 

162,276

 

 

 

—

 

 

 

167,741

 

 

 

—

 

 

 

167,741

 

Government securities

 

 

—

 

 

 

42,564

 

 

 

—

 

 

 

42,564

 

 

 

—

 

 

 

34,926

 

 

 

—

 

 

 

34,926

 

Alternative strategy funds

 

 

—

 

 

 

34,958

 

 

 

—

 

 

 

34,958

 

 

 

—

 

 

 

29,172

 

 

 

—

 

 

 

29,172

 

Real estate funds

 

 

—

 

 

 

—

 

 

 

9,572

 

 

 

9,572

 

 

 

—

 

 

 

—

 

 

 

9,735

 

 

 

9,735

 

Total plan assets

 

$

2,613

 

 

$

291,769

 

 

$

9,572

 

 

$

303,954

 

 

$

2,338

 

 

$

284,870

 

 

$

9,735

 

 

$

296,943

 
Reconciliation Of Level 3 Assets

The following table provides a reconciliation of the beginning and ending balance of Level 3 assets within the Company's U.S. and U.K. pension plans during the years ended December 31, 2020 and 2019:

 

 

 

U.S

 

 

U.K.

 

 

 

(in thousands)

 

Balance at December 31, 2018

 

$

16,488

 

 

$

9,945

 

Actual return on plan assets:

 

 

 

 

 

 

 

 

Related to assets still held at the reporting date

 

 

(1,722

)

 

 

(210

)

Balance at December 31, 2019

 

 

14,766

 

 

 

9,735

 

Actual return on plan assets:

 

 

 

 

 

 

 

 

Related to assets still held at the reporting date

 

 

1,172

 

 

 

(163

)

Balance at December 31, 2020

 

$

15,938

 

 

$

9,572

 
v3.20.4
Segment and Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information

Financial information as of and for the years ended December 31, 2020, 2019, and 2018 related to the Company's reportable segments is presented below.

 

 

Crawford

Claims

Solutions

 

 

Crawford

TPA

Solutions

 

 

Crawford

Specialty

Solutions

 

 

Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

356,447

 

 

$

364,983

 

 

$

261,062

 

 

$

982,492

 

Segment operating earnings

 

 

14,375

 

 

 

21,476

 

 

 

52,553

 

 

 

88,404

 

Depreciation and amortization (1)

 

 

2,405

 

 

 

9,345

 

 

 

1,291

 

 

 

13,041

 

Assets (2)

 

 

120,777

 

 

 

88,002

 

 

 

155,522

 

 

 

364,301

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

339,837

 

 

$

393,856

 

 

$

272,109

 

 

$

1,005,802

 

Segment operating earnings

 

 

7,630

 

 

 

27,173

 

 

 

49,321

 

 

 

84,124

 

Depreciation and amortization (1)

 

 

2,461

 

 

 

10,152

 

 

 

1,811

 

 

 

14,424

 

Assets (2)

 

 

136,451

 

 

 

85,810

 

 

 

165,575

 

 

 

387,836

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

361,053

 

 

$

405,335

 

 

$

304,583

 

 

$

1,070,971

 

Segment operating earnings

 

 

11,308

 

 

 

36,909

 

 

 

49,564

 

 

 

97,781

 

Depreciation and amortization (1)

 

 

3,485

 

 

 

9,844

 

 

 

3,517

 

 

 

16,846

 

Assets (2)

 

 

163,899

 

 

 

92,007

 

 

 

165,415

 

 

 

421,321

 

 

(1)

Excludes amortization expense of finite-lived customer relationships and trade name intangible assets.

(2)

Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net.

Revenues by geographic region and major service line for the Crawford Claims Solutions, Crawford TPA Solutions and Crawford Specialty Solutions segments are shown in Note 2, "Revenue Recognition."
Reconciliation Of Capital Expenditures From Segments To Consolidated Table Text Block

Capital expenditures for the years ended December 31, 2020, 2019, and 2018 are shown in the following table:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Crawford Claims Solutions

 

$

5,443

 

 

$

1,396

 

 

$

3,811

 

Crawford TPA Solutions

 

 

6,527

 

 

 

3,259

 

 

 

5,947

 

Crawford Specialty Solutions

 

 

5,686

 

 

 

458

 

 

 

2,148

 

Corporate

 

 

19,724

 

 

 

16,011

 

 

 

18,114

 

Total capital expenditures

 

$

37,380

 

 

$

21,124

 

 

$

30,020

 
Reconciliation of Revenues from Segments to Consolidated

The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2020, 2019, and 2018 was as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Segments' revenues before reimbursements

 

$

982,492

 

 

$

1,005,802

 

 

$

1,070,971

 

Reimbursements

 

 

33,703

 

 

 

41,825

 

 

 

52,008

 

Total consolidated revenues

 

$

1,016,195

 

 

$

1,047,627

 

 

$

1,122,979

 
Reconciliation of Segment Operating Earnings from Segments to Consolidated

The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2020, 2019, and 2018 were as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Operating earnings of all reportable segments

 

$

88,404

 

 

$

84,124

 

 

$

97,781

 

Unallocated corporate and shared costs and credits

 

 

(16,574

)

 

 

(6,515

)

 

 

(9,321

)

Net corporate interest expense

 

 

(7,923

)

 

 

(10,774

)

 

 

(10,109

)

Stock option expense

 

 

(1,122

)

 

 

(1,885

)

 

 

(1,742

)

Amortization of acquisition-related intangible assets

 

 

(11,653

)

 

 

(11,277

)

 

 

(11,152

)

Goodwill and intangible asset impairments

 

 

(17,674

)

 

 

(17,484

)

 

 

(1,056

)

Arbitration and claim settlements

 

 

—

 

 

 

(12,552

)

 

 

—

 

Restructuring and other costs, net

 

 

(8,133

)

 

 

—

 

 

 

—

 

Gain (loss) on disposition of businesses, net

 

 

13,763

 

 

 

—

 

 

 

(20,270

)

Income before income taxes

 

$

39,088

 

 

$

23,637

 

 

$

44,131

 
Reconciliation of Assets from Segment to Consolidated

The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at December 31, 2020 and 2019 are presented in the following table:

 

December 31,

 

2020

 

 

2019

 

 

 

(In thousands)

 

Assets of reportable segments

 

$

364,301

 

 

$

387,836

 

Corporate assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

44,656

 

 

 

51,802

 

Income taxes receivable

 

 

1,269

 

 

 

7,820

 

Prepaid expenses and other current assets

 

 

29,490

 

 

 

23,476

 

Net property and equipment

 

 

36,402

 

 

 

31,425

 

Operating lease right-of-use asset, net

 

 

109,315

 

 

 

102,354

 

Capitalized software costs, net

 

 

71,021

 

 

 

66,445

 

Deferred income tax assets

 

 

25,595

 

 

 

17,971

 

Other noncurrent assets

 

 

70,935

 

 

 

70,884

 

Total corporate assets

 

 

388,683

 

 

 

372,177

 

Total assets

 

$

752,984

 

 

$

760,013

 
Schedule of Disclosure on Geographic Areas, Revenue and Long-Lived Assets in Individual Foreign Countries by Country

Revenues and long-lived assets for the U.S., U.K. and Canada are set out below as these countries are material for geographical area disclosure. For the purposes of these geographic area disclosures, long-lived assets consists of the net property and equipment, capitalized software costs, net and operating lease right-of-use, net line items on the Company's Consolidated Balance Sheets and excludes intangible assets and goodwill.

 

 

 

U.S.

 

 

U.K.

 

 

Canada

 

 

All Other

International

 

 

Total

Company

 

 

 

(In thousands)

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

$

570,822

 

 

$

128,545

 

 

$

89,163

 

 

$

193,962

 

 

$

982,492

 

Long-lived assets

 

 

151,906

 

 

 

20,290

 

 

 

14,404

 

 

 

30,138

 

 

 

216,738

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

 

569,205

 

 

 

126,337

 

 

 

114,438

 

 

 

195,822

 

 

 

1,005,802

 

Long-lived assets

 

 

140,560

 

 

 

20,749

 

 

 

17,999

 

 

 

20,916

 

 

 

200,224

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues before reimbursements

 

 

615,687

 

 

 

131,651

 

 

 

121,076

 

 

 

202,557

 

 

 

1,070,971

 

Long-lived assets

 

 

88,157

 

 

 

7,631

 

 

 

7,553

 

 

 

3,172

 

 

 

106,513

 
v3.20.4
Restructuring Costs (Tables)
 12 Months Ended
Dec. 31, 2020
Restructuring And Related Activities [Abstract]  
Restructuring and Related Costs

The following table shows the costs incurred by type of restructuring activity:

Year ended December 31

 

2020

 

 

2019

 

 

2018

 

 

 

(In thousands)

 

Severance benefits

 

$

9,350

 

 

$

—

 

 

$

—

 

Asset impairments and lease termination costs

 

 

2,538

 

 

 

—

 

 

 

—

 

Gain on fair value remeasurement of cost and equity method investments

 

 

(1,099

)

 

 

—

 

 

 

—

 

Liquidation dividend from a cost method investment

 

 

(1,247

)

 

 

—

 

 

 

—

 

Gain on sale of internet protocol addresses

 

 

(1,409

)

 

 

—

 

 

 

—

 

Total restructuring and other costs, net

 

$

8,133

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 
v3.20.4
Restructuring and Other Costs (Tables)
 12 Months Ended
Dec. 31, 2020
Restructuring And Related Activities [Abstract]  
Schedule of Restructuring Reserve Liabilities by Type

As of December 31, 2020, the following liabilities remained on the Company's Consolidated Balance Sheets related to restructuring charges recorded in 2020 and 2017. The rollforwards of these costs to December 31, 2020 were as follows:

Restructuring and Other Costs

 

Deferred rent

 

 

Accrued

compensation

and related

costs

 

 

Other accrued

liabilities

 

 

Total

 

 

 

(In thousands)

 

Balance at December 31, 2017

 

$

2,846

 

 

$

4,782

 

 

$

1,785

 

 

$

9,413

 

Additions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjustments to accruals

 

 

(1,544

)

 

 

—

 

 

 

(643

)

 

 

(2,187

)

Cash payments

 

 

—

 

 

 

(4,305

)

 

 

(656

)

 

 

(4,961

)

Balance at December 31, 2018

 

 

1,302

 

 

 

477

 

 

 

486

 

 

 

2,265

 

Additions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjustments to accruals

 

 

(1,302

)

 

 

—

 

 

 

1

 

 

 

(1,301

)

Cash payments

 

 

—

 

 

 

(135

)

 

 

(15

)

 

 

(150

)

Balance at December 31, 2019

 

 

—

 

 

 

342

 

 

 

472

 

 

 

814

 

Additions

 

 

—

 

 

 

9,112

 

 

 

648

 

 

 

9,760

 

Adjustments to accruals

 

 

—

 

 

 

(453

)

 

 

(472

)

 

 

(925

)

Cash payments

 

 

—

 

 

 

(5,632

)

 

 

(58

)

 

 

(5,690

)

Balance at December 31, 2020

 

$

—

 

 

$

3,369

 

 

$

590

 

 

$

3,959

 

 
v3.20.4
Significant Accounting and Reporting Policies - Narrative (Details)
 3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2020
USD ($)
Contractor
Dec. 31, 2020
USD ($)
classofstock
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Variable Interest Entity [Line Items]                
Number of countries in which entity operates (more than)     70 70 70 70    
Number of classes of common stock       2   2    
Deferred compensation plan liabilities   $ 8,428,000 $ 7,961,000 $ 7,961,000 $ 7,961,000 $ 7,961,000 $ 8,428,000  
Assets held in the related rabbi trust   16,527,000 16,323,000 16,323,000 $ 16,323,000 16,323,000 16,527,000  
Number of residential and commercial contractors | Contractor         6,000      
Goodwill and intangible asset impairments $ 17,674,000 [1] 17,484,000 17,674,000 [1]       17,484,000 $ 1,056,000
Goodwill   80,642,000 66,537,000 66,537,000 $ 66,537,000 66,537,000 80,642,000 96,890,000
Depreciation     11,750,000       11,363,000 12,862,000
Self insurance reserve   26,838,000 25,004,000 25,004,000 25,004,000 25,004,000 26,838,000  
Self-insured risks   11,311,000 11,390,000 $ 11,390,000 $ 11,390,000 $ 11,390,000 11,311,000  
Change in tax rate, income tax expense               3,583,000
Valuation allowance, foreign               6,977,000
US tax reform - revaluation of deferred taxes               102,000
Release of transition tax of uncertain tax positions and adjustments               3,496,000
Foreign currency transaction gain (loss)     (219,000)       (243,000) 73,000
Advertising expense     990,000       2,394,000 3,572,000
Capitalized software                
Variable Interest Entity [Line Items]                
Amortization of intangible assets     $ 16,709,000       17,873,000 20,066,000
Measurement Input, Discount Rate | Minimum                
Variable Interest Entity [Line Items]                
Measurement input     0.150 0.150 0.150 0.150    
Measurement Input, Discount Rate | Maximum                
Variable Interest Entity [Line Items]                
Measurement input     0.175 0.175 0.175 0.175    
Terminal growth rate                
Variable Interest Entity [Line Items]                
Measurement input     0.020 0.020 0.020 0.020    
Crawford Claims Solutions                
Variable Interest Entity [Line Items]                
Goodwill and intangible asset impairments 17,700,000   $ 17,674,000       17,484,000 0
Goodwill $ 0 $ 17,668,000         $ 17,668,000 $ 35,146,000
Outside the US                
Variable Interest Entity [Line Items]                
Time deposits, at carrying value     1,473,000 $ 1,473,000 $ 1,473,000 $ 1,473,000    
Canada Emergency Wage Subsidy Program of 2020                
Variable Interest Entity [Line Items]                
Recognition of reduction in compensation expense     $ 13,800,000          
Lloyd Warwick International                
Variable Interest Entity [Line Items]                
Variable interest entity, ownership percentage       51.00%        
Class A Non-Voting                
Variable Interest Entity [Line Items]                
Approval rate to waive equal consideration rights       75.00%        
[1] The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.
v3.20.4
Significant Accounting and Reporting Policies - Receivables (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]      
Allowance for expected credit losses, January 1 $ 9,348 $ 9,625 $ 12,588
Add/ (Deduct):      
Adoption of Topic 326 (464)    
Provision for bad debt expense 1,504 1,588 2,709
Write-offs, net of recoveries (908) (81) (3,695)
Adjustments for business acquisitions and dispositions (111)   (1,612)
Currency translation and other changes 95 (1,784) (365)
Allowance for expected credit losses, December 31 $ 9,464 $ 9,348 $ 9,625
v3.20.4
Significant Accounting and Reporting Policies - Property and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 125,784 $ 116,879
Less accumulated depreciation (89,382) (85,454)
Net property and equipment 36,402 31,425
Furniture and Fixtures    
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 28,264 29,898
Furniture and Fixtures | Minimum    
Property Plant And Equipment [Line Items]    
Property and equipment, useful life 3 years  
Furniture and Fixtures | Maximum    
Property Plant And Equipment [Line Items]    
Property and equipment, useful life 10 years  
Computer Equipment    
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 64,781 57,574
Computer Equipment | Minimum    
Property Plant And Equipment [Line Items]    
Property and equipment, useful life 3 years  
Computer Equipment | Maximum    
Property Plant And Equipment [Line Items]    
Property and equipment, useful life 5 years  
Automobiles    
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 314 236
Automobiles | Minimum    
Property Plant And Equipment [Line Items]    
Property and equipment, useful life 3 years  
Automobiles | Maximum    
Property Plant And Equipment [Line Items]    
Property and equipment, useful life 4 years  
Building and Building Improvements    
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 32,087 28,840
Building and Building Improvements | Minimum    
Property Plant And Equipment [Line Items]    
Property and equipment, useful life 7 years  
Building and Building Improvements | Maximum    
Property Plant And Equipment [Line Items]    
Property and equipment, useful life 40 years  
Land    
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 338 $ 331
v3.20.4
Significant Accounting and Reporting Policies - New Accounting Standards (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Revenue Initial Application Period Cumulative Effect Transition [Line Items]    
Cumulative effect adjustment $ 186,939,000 $ 159,317,000
Adoption of Topic 326    
Revenue Initial Application Period Cumulative Effect Transition [Line Items]    
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member  
Retained Earnings | Adoption of Topic 326    
Revenue Initial Application Period Cumulative Effect Transition [Line Items]    
Cumulative effect adjustment   $ 607,000
Accounting Standards Update Extensible List us-gaap:AccountingStandardsUpdate201613Member us-gaap:AccountingStandardsUpdate201613Member
v3.20.4
Revenue Recognition - Additional Information (Details)
 12 Months Ended
Dec. 31, 2020
USD ($)
Revenue Initial Application Period Cumulative Effect Transition [Line Items]  
Accounts receivable, days sales outstanding 2 months
Billing after contract completion, years 1 year
Revenue, remaining performance obligation $ 88,917,000
Performance obligations to be recognized as revenues within one year, percent 70.00%
Revenue from contracts with customers, practical expedient, consideration adjustment period 1 year
Accounts payable days payable outstanding 1 year
Minimum | Crawford TPA Solutions  
Revenue Initial Application Period Cumulative Effect Transition [Line Items]  
Revenue from contracts with customers, performance obligation term 1 year
Maximum | Crawford TPA Solutions  
Revenue Initial Application Period Cumulative Effect Transition [Line Items]  
Revenue from contracts with customers, performance obligation term 2 years
Claims Management Services  
Revenue Initial Application Period Cumulative Effect Transition [Line Items]  
Revenue from contracts with customers, performance obligation term 1 year
Revenue remaining performance obligation expected timing of satisfaction explanation The Company's deferred revenues for claims handled for one or two years are not as sensitive to changes in claim closing rates since the performance obligations are satisfied within a fixed length of time.
Revenue from contracts with customers, duration, average time to close case from time of referral 5 years
Percentage of closed cases 99.00%
Claims Management Services | Minimum  
Revenue Initial Application Period Cumulative Effect Transition [Line Items]  
Revenue from contracts with customers, performance obligation term 1 year
Claims Management Services | Maximum  
Revenue Initial Application Period Cumulative Effect Transition [Line Items]  
Revenue from contracts with customers, performance obligation term 2 years
v3.20.4
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disaggregation of Revenue [Line Items]                      
Revenues $ 265,605 $ 261,669 $ 242,875 $ 246,046 $ 257,562 $ 265,842 $ 267,846 $ 256,377 $ 1,016,195 $ 1,047,627 $ 1,122,979
Crawford Claims Solutions                      
Disaggregation of Revenue [Line Items]                      
Revenues                 356,447 339,837  
Crawford Claims Solutions | U.S.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 166,441 136,524  
Crawford Claims Solutions | U.K.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 65,855 63,715  
Crawford Claims Solutions | Canada                      
Disaggregation of Revenue [Line Items]                      
Revenues                 34,020 47,712  
Crawford Claims Solutions | Australia                      
Disaggregation of Revenue [Line Items]                      
Revenues                 47,481 45,417  
Crawford Claims Solutions | Europe                      
Disaggregation of Revenue [Line Items]                      
Revenues                 28,298 28,915  
Crawford Claims Solutions | Rest of World                      
Disaggregation of Revenue [Line Items]                      
Revenues                 14,352 17,554  
Crawford TPA Solutions                      
Disaggregation of Revenue [Line Items]                      
Revenues                 364,983 393,856  
Crawford TPA Solutions | U.S.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 293,446 315,241  
Crawford TPA Solutions | U.K.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 10,866 11,254  
Crawford TPA Solutions | Canada                      
Disaggregation of Revenue [Line Items]                      
Revenues                 25,911 33,234  
Crawford TPA Solutions | Europe and Rest of World                      
Disaggregation of Revenue [Line Items]                      
Revenues                 34,760 34,127  
Crawford TPA Solutions | Claims Management Services                      
Disaggregation of Revenue [Line Items]                      
Revenues                 215,477 223,600  
Crawford TPA Solutions | Claims Management Services | U.S.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 143,940 144,985  
Crawford TPA Solutions | Claims Management Services | U.K.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 10,866 11,254  
Crawford TPA Solutions | Claims Management Services | Canada                      
Disaggregation of Revenue [Line Items]                      
Revenues                 25,911 33,234  
Crawford TPA Solutions | Claims Management Services | Europe and Rest of World                      
Disaggregation of Revenue [Line Items]                      
Revenues                 34,760 34,127  
Crawford TPA Solutions | Medical Management Services                      
Disaggregation of Revenue [Line Items]                      
Revenues                 149,506 170,256  
Crawford TPA Solutions | Medical Management Services | U.S.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 149,506 170,256  
Crawford Specialty Solutions                      
Disaggregation of Revenue [Line Items]                      
Revenues                 261,062 272,109  
Crawford Specialty Solutions | U.S.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 110,935 117,440  
Crawford Specialty Solutions | U.K.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 51,824 51,368  
Crawford Specialty Solutions | Canada                      
Disaggregation of Revenue [Line Items]                      
Revenues                 29,232 33,492  
Crawford Specialty Solutions | Australia                      
Disaggregation of Revenue [Line Items]                      
Revenues                 22,856 23,065  
Crawford Specialty Solutions | Europe                      
Disaggregation of Revenue [Line Items]                      
Revenues                 20,728 20,550  
Crawford Specialty Solutions | Rest of World                      
Disaggregation of Revenue [Line Items]                      
Revenues                 25,487 26,194  
Crawford Specialty Solutions | Global Technical Services                      
Disaggregation of Revenue [Line Items]                      
Revenues                 176,302 181,317  
Crawford Specialty Solutions | Global Technical Services | U.S.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 39,930 40,526  
Crawford Specialty Solutions | Global Technical Services | U.K.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 45,212 45,803  
Crawford Specialty Solutions | Global Technical Services | Canada                      
Disaggregation of Revenue [Line Items]                      
Revenues                 23,066 25,981  
Crawford Specialty Solutions | Global Technical Services | Australia                      
Disaggregation of Revenue [Line Items]                      
Revenues                 21,927 22,273  
Crawford Specialty Solutions | Global Technical Services | Europe                      
Disaggregation of Revenue [Line Items]                      
Revenues                 20,680 20,540  
Crawford Specialty Solutions | Global Technical Services | Rest of World                      
Disaggregation of Revenue [Line Items]                      
Revenues                 25,487 26,194  
Crawford Specialty Solutions | Contractor Connection                      
Disaggregation of Revenue [Line Items]                      
Revenues                 84,760 90,792  
Crawford Specialty Solutions | Contractor Connection | U.S.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 71,005 76,914  
Crawford Specialty Solutions | Contractor Connection | U.K.                      
Disaggregation of Revenue [Line Items]                      
Revenues                 6,612 5,565  
Crawford Specialty Solutions | Contractor Connection | Canada                      
Disaggregation of Revenue [Line Items]                      
Revenues                 6,166 7,511  
Crawford Specialty Solutions | Contractor Connection | Australia                      
Disaggregation of Revenue [Line Items]                      
Revenues                 929 792  
Crawford Specialty Solutions | Contractor Connection | Europe                      
Disaggregation of Revenue [Line Items]                      
Revenues                 $ 48 $ 10  
v3.20.4
Revenue Recognition - Schedule of Customer Contract Liabilities (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
Customer Contract Liabilities:  
Beginning balance $ 52,368
Annual additions 76,379
Revenue recognized from prior periods (34,943)
Revenue recognized from current year additions (42,435)
Ending balance $ 51,369
v3.20.4
Business Acquisitions and Dispositions - Additional Information (Details)
 12 Months Ended
Oct. 01, 2020
USD ($)
Jul. 21, 2020
USD ($)
Jun. 12, 2020
USD ($)
Jun. 01, 2020
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
segment
Business Acquisition [Line Items]              
Loss on disposal of entity         $ 13,763,000   $ (20,270,000)
Weighted-average amortization period of intangible assets         6 years 8 months 12 days 3 years 9 months 18 days  
Goodwill         $ 66,537,000 $ 80,642,000 96,890,000
Customer Relationships              
Business Acquisition [Line Items]              
Weighted-average amortization period of intangible assets         3 years 3 months 18 days 4 years  
Crawford Carvallo              
Business Acquisition [Line Items]              
Initial lump-sum payment of purchase price $ 11,600,000,000            
Net tangible assets acquired 15,120,000,000            
Net tangible assets acquired including cash 1,599,000,000            
Intangible assets acquired $ 4,400,000            
Weighted-average amortization period of intangible assets 10 years            
Revenues         $ 2,214,000    
Goodwill         5,501,000    
Crawford Carvallo | Customer Relationships              
Business Acquisition [Line Items]              
Weighted-average amortization period of intangible assets 15 years            
Global Technical Services | Europe              
Business Acquisition [Line Items]              
Payment to acquire business           $ 1,519,000,000  
Net tangible assets acquired including cash           135,000,000  
Business combinations, total consideration           2,431,000,000  
Cash to be paid in one year           234,000,000  
Cash to be paid in three years           351,000,000  
Contingent consideration           327,000,000  
Business combination, definite-lived intangible assets           951,000,000  
Goodwill           $ 1,164,000,000  
Global Technical Services | Canada              
Business Acquisition [Line Items]              
Payment to acquire business             2,500,000,000
Net tangible assets acquired including cash             134,000,000
Business combinations, total consideration             3,400,000,000
Cash to be paid in one year             348,000,000
Contingent consideration             377,000,000
Business combination, definite-lived intangible assets             1,094,000,000
Goodwill             1,296,000,000
Business combination, deferred taxes             202,000,000
Business combination, net tangible assets             $ 462,000,000
Number of businesses acquired | segment             2
Maximum | Crawford Carvallo              
Business Acquisition [Line Items]              
Payment to acquire business $ 11,700,000,000            
Crawford Compliance Inc.              
Business Acquisition [Line Items]              
Variable interest entity, ownership percentage       51.00%      
Loss on disposal of entity         (912,000)    
Lloyd Warwick International              
Business Acquisition [Line Items]              
Variable interest entity, ownership percentage     51.00%        
Loss on disposal of entity         14,700,000    
Proceeds from sale of business     $ 19,600,000        
Repayment of debt     $ 3,600,000        
Working capital adjustments recognized under acquisition agreement         700,000    
Purchase price         20,300,000    
Gain on disposition, net of tax         11,700,000    
WeGoLook, LC              
Business Acquisition [Line Items]              
Membership interest percentage   15.00%          
Payment to acquire business   $ 310,000          
Accelerated amortization amount recognized         $ 1,100,000    
Crawford Carvallo              
Business Acquisition [Line Items]              
Membership interest percentage 85.00%            
Percentage of held interest prior to acquisition 15.00%            
v3.20.4
Business Acquisitions and Dispositions - Schedule of Valuation Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
ASSETS        
Cash and cash equivalents $ 44,656,000 $ 51,802,000    
Accounts receivable, less allowance for expected credit losses of $9,464 and $9,348, respectively 123,060,000 128,217,000    
Unbilled revenues, at estimated billable amounts 103,528,000 103,894,000    
Prepaid expenses and other current assets 29,490,000 23,476,000    
Net Property and Equipment 36,402,000 31,425,000    
Operating lease right-of-use asset, net 109,315,000 102,354,000 $ 122,300,000  
Goodwill 66,537,000 80,642,000   $ 96,890,000
Intangible assets arising from business acquisitions, net 71,176,000 75,083,000    
Other noncurrent assets 70,935,000 70,884,000    
TOTAL ASSETS 752,984,000 760,013,000    
Current Liabilities:        
Accounts payable 41,544,000 34,377,000    
Accrued compensation and related costs 81,848,000 68,499,000    
Income taxes payable 5,822,000 3,030,000    
Operating lease liability 32,745,000 30,765,000    
Long-term debt and finance leases, less current installments 111,758,000 148,408,000    
Total Current Liabilities 242,794,000 236,265,000    
Noncontrolling interests (11,000) $ 3,250,000    
Crawford Carvallo        
ASSETS        
Cash and cash equivalents 1,599,000      
Accounts receivable, less allowance for expected credit losses of $9,464 and $9,348, respectively 3,662,000      
Unbilled revenues, at estimated billable amounts 2,930,000      
Prepaid expenses and other current assets 3,613,000      
Net Property and Equipment 828,000      
Purchased software, net 459,000      
Operating lease right-of-use asset, net 8,743,000      
Goodwill 5,501,000      
Intangible assets arising from business acquisitions, net 7,600,000      
Other noncurrent assets 277,000      
TOTAL ASSETS 35,212,000      
Current Liabilities:        
Accounts payable 1,014,000      
Accrued compensation and related costs 3,870,000      
Income taxes payable 662,000      
Operating lease liability 8,743,000      
Long-term debt and finance leases, less current installments 5,803,000      
Total Current Liabilities 20,092,000      
Net Assets Acquired, Before Noncontrolling Interests 15,120,000      
Noncontrolling interests 489,000      
Net Assets Acquired, After Noncontrolling Interests $ 14,631,000      
v3.20.4
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Goodwill [Roll Forward]          
Goodwill   $ 299,140,000 $ 302,709,000 $ 299,140,000 $ 297,904,000
Accumulated impairment losses   (218,498,000) (236,172,000) (218,498,000) (201,014,000)
Net goodwill   80,642,000 66,537,000 80,642,000 96,890,000
Goodwill of acquired businesses     5,501,000 1,164,000  
Impairment of goodwill $ (17,674,000) [1] (17,484,000) (17,674,000) [1] (17,484,000) (1,056,000)
Foreign currency effects     58,000 72,000  
Goodwill of disposed business     (1,990,000)    
Crawford Claims Solutions          
Goodwill [Roll Forward]          
Goodwill   55,559,000 55,565,000 55,559,000 55,553,000
Accumulated impairment losses   (37,891,000) (55,565,000) (37,891,000) (20,407,000)
Net goodwill 0 17,668,000   17,668,000 35,146,000
Impairment of goodwill $ (17,700,000)   (17,674,000) (17,484,000) 0
Foreign currency effects     6,000 6,000  
Crawford TPA Solutions          
Goodwill [Roll Forward]          
Goodwill   168,734,000 171,603,000 168,734,000 168,730,000
Accumulated impairment losses   (159,424,000) (159,424,000) (159,424,000) (159,424,000)
Net goodwill   9,310,000 12,179,000 9,310,000 9,306,000
Goodwill of acquired businesses     2,857,000    
Foreign currency effects     12,000 4,000  
Crawford TPA Solutions          
Goodwill [Roll Forward]          
Goodwill   74,847,000 75,541,000 74,847,000 73,621,000
Accumulated impairment losses   (21,183,000) (21,183,000) (21,183,000) (21,183,000)
Net goodwill   $ 53,664,000 54,358,000 53,664,000 $ 52,438,000
Goodwill of acquired businesses     2,644,000 1,164,000  
Foreign currency effects     40,000 $ 62,000  
Goodwill of disposed business     $ (1,990,000)    
[1] The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.
v3.20.4
Goodwill and Intangible Assets Goodwill and Intangible Assets - Narrative (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Goodwill [Line Items]          
Goodwill and intangible asset impairment charges $ 17,674,000 [1] $ 17,484,000 $ 17,674,000 [1] $ 17,484,000 $ 1,056,000
Minimum          
Goodwill [Line Items]          
Finite-lived intangible asset, useful life     2 years    
Maximum          
Goodwill [Line Items]          
Finite-lived intangible asset, useful life     15 years    
Customer relationships and trade names          
Goodwill [Line Items]          
Amortization of intangible assets     $ 11,653,000,000 11,277,000,000 11,152,000,000
Crawford Claims Solutions          
Goodwill [Line Items]          
Goodwill and intangible asset impairment charges $ 17,700,000   $ 17,674,000 $ 17,484,000 $ 0
[1] The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.
v3.20.4
Goodwill and Intangible Assets - Schedule of Acquired Finite-Lived Intangible Asset by Major Class (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 159,048 $ 151,204
Accumulated Amortization (118,719) (106,967)
Net Carrying Value $ 40,329 $ 44,237
Weighted-average amortization period 6 years 8 months 12 days 3 years 9 months 18 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
2021 $ 9,678  
2022 4,711  
2023 4,614  
2024 4,152  
2025 4,050  
Customer relationships    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 131,948 $ 127,362
Accumulated Amortization (101,319) (92,354)
Net Carrying Value $ 30,629 $ 35,008
Weighted-average amortization period 3 years 3 months 18 days 4 years
Technology-based    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 18,183 $ 16,562
Accumulated Amortization (10,174) (9,108)
Net Carrying Value $ 8,009 $ 7,454
Weighted-average amortization period 6 years 6 months 7 years
Trade name    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 3,123 $ 1,795
Accumulated Amortization (1,737) (1,636)
Net Carrying Value $ 1,386 $ 159
Weighted-average amortization period 6 years 1 year 8 months 12 days
Other    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 5,794 $ 5,485
Accumulated Amortization (5,489) (3,869)
Net Carrying Value $ 305 $ 1,616
Weighted-average amortization period 10 years 1 month 6 days 1 year 9 months 18 days
v3.20.4
Goodwill and Intangible Assets - Schedule of Acquired Indefinite-Lived Intangible Assets (Details) - Trade name - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Acquired Indefinite-lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 32,503 $ 32,502
Accumulated Impairments (1,656) (1,656)
Net Carrying Value $ 30,847 $ 30,846
v3.20.4
Short-Term and Long-Term Debt, Including Finance Leases - Long-term debt instruments (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Finance lease and other obligations $ 740,000 $ 77,000
Total long-term debt and finance leases 113,595,000 176,954,000
Less: portion of Credit Facility classified as short-term (1,837,000) (28,546,000)
Less: current installments of finance leases and other obligations (267,000) (15,000)
Total long-term debt and finance leases, less current installments 111,758,000 148,408,000
Credit Facility    
Debt Instrument [Line Items]    
Credit Facility 112,855,000 176,877,000
Less: portion of Credit Facility classified as short-term $ (1,570,000) $ (28,531,000)
v3.20.4
Short-Term and Long-Term Debt, Including Finance Leases - Credit Facility (Narrative) (Details)
 12 Months Ended
Dec. 31, 2020
USD ($)
quarter
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 18, 2020
USD ($)
Debt Instrument [Line Items]        
Debt instrument, interest period 1 month      
Line of credit facility, collateral, capital stock, percent 100.00%      
Number of quarters | quarter 4      
Short-term borrowings $ 1,837,000 $ 28,546,000    
Interest expense, debt 8,187,000 11,519,000 $ 11,399,000  
Interest paid $ 7,152,000 10,470,000 $ 10,381,000  
Maximum        
Debt Instrument [Line Items]        
Lessee leasing arrangements, finance leases, term of contract 60 months      
Minimum        
Debt Instrument [Line Items]        
Lessee leasing arrangements, finance leases, term of contract 24 months      
Letter of credit subcommitment        
Debt Instrument [Line Items]        
Line of credit facility, current borrowing capacity $ 100,000,000      
Line of credit facility, remaining borrowing capacity 11,512,000      
Credit Facility        
Debt Instrument [Line Items]        
Line of credit facility, current borrowing capacity 450,000,000      
Credit Facility 112,855,000 176,877,000    
Line of credit facility, remaining borrowing capacity 325,653,000      
Short-term borrowings $ 1,570,000 $ 28,531,000    
Credit Facility | London Interbank Offered Rate (LIBOR)        
Debt Instrument [Line Items]        
Debt instrument, basis spread on variable rate (percent) 1.00%      
Credit Facility | UK Borrower        
Debt Instrument [Line Items]        
Line of credit facility, current borrowing capacity $ 185,000,000      
Credit Facility | Canadian Borrower        
Debt Instrument [Line Items]        
Line of credit facility, current borrowing capacity 75,000,000      
Credit Facility | Australian Borrower        
Debt Instrument [Line Items]        
Line of credit facility, current borrowing capacity $ 32,500,000      
Credit Facility | Maximum | London Interbank Offered Rate (LIBOR)        
Debt Instrument [Line Items]        
Debt instrument, basis spread on variable rate (percent) 2.10%      
Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | Base Rate        
Debt Instrument [Line Items]        
Debt instrument, basis spread on variable rate (percent) 1.10%      
Credit Facility | Minimum | London Interbank Offered Rate (LIBOR)        
Debt Instrument [Line Items]        
Debt instrument, basis spread on variable rate (percent) 1.30%      
Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | Base Rate        
Debt Instrument [Line Items]        
Debt instrument, basis spread on variable rate (percent) 0.30%      
Third Amendment To Credit Agreement | Credit Facility | Maximum        
Debt Instrument [Line Items]        
Investments permitted under the Credit Facility       $ 5,000,000
2015 Amendment to Credit Agreement | Credit Facility | Wells Fargo Bank, National Association        
Debt Instrument [Line Items]        
Debt instrument, maximum senior secured leverage ratio 3.25      
Debt instrument, maximum total leverage ratio 4.25      
Debt instrument, covenant, coverage ratio 1.10      
v3.20.4
Short-Term and Long-Term Debt, Including Finance Leases - Schedule of Maturities of Long-Term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Long-term Debt, Fiscal Year Maturity [Abstract]    
Long-term Debt, 2021 $ 1,570  
Long-term Debt, 2022 111,285  
Long-term Debt 112,855  
Finance Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]    
Finance Lease Obligations, 2021 267  
Finance Lease Obligations, 2022 239  
Finance Lease Obligations, 2023 164  
Finance Lease Obligations, 2024 47  
Finance Lease Obligations, 2025 23  
Finance Leases, Future Minimum Payments Due 740  
Long-term Debt and Capital Lease Obligations, Fiscal Year Maturity [Abstract]    
Total, 2021 1,837  
Total, 2022 111,524  
Total, 2023 164  
Total, 2024 47  
Total, 2025 23  
Total long-term debt and finance leases $ 113,595 $ 176,954
v3.20.4
Lease Commitments - Additional Information (Details)
 12 Months Ended
Dec. 31, 2020
USD ($)
Lessee, Lease, Description [Line Items]  
Renewal term 5 years
Termination period 1 year
Sublease income, 2021 $ 4,180,000
Sublease income, 2022 110,000
Leases, not yet commenced $ 2,370,000
Minimum  
Lessee, Lease, Description [Line Items]  
Remaining lease term 1 year
Lease term, not yet commenced 5 years
Maximum  
Lessee, Lease, Description [Line Items]  
Remaining lease term 12 years
Lease term, not yet commenced 10 years
v3.20.4
Lease Commitments - Lease-Related Assets and Liabilities (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Jan. 01, 2019
Leases [Abstract]      
Operating lease right-of-use assets, net $ 109,315,000 $ 102,354,000 $ 122,300,000
Current operating lease liabilities 32,745,000 30,765,000  
Noncurrent operating lease liabilities 93,228,000 87,064,000  
Total operating lease liabilities $ 125,973,000 $ 117,829,000  
Weighted-Average Remaining Lease Term 6 years 3 months 18 days 5 years 8 months 19 days  
Weighted-Average Discount Rate 5.30% 5.40%  
v3.20.4
Lease Commitments - Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
Operating lease cost $ 38,242 $ 37,824
Variable lease cost 8,037 7,948
Sublease income $ 4,090 $ 4,163
v3.20.4
Lease Commitments - Supplemental Cash Flow (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Jan. 01, 2019
Leases [Abstract]      
Operating cash flows for operating leases $ 37,091,000 $ 38,906,000  
Right-of-use assets obtained in exchange for lease obligations 40,535,000 30,056,000  
Operating lease right-of-use assets, net $ 109,315,000 $ 102,354,000 $ 122,300,000
v3.20.4
Lease Commitments - Operating Lease Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
2021 $ 37,976  
2022 25,214  
2023 17,686  
2024 14,496  
2025 11,770  
Thereafter 41,624  
Total undiscounted lease payments 148,766  
Less imputed interest (22,793)  
Present value of future lease payments $ 125,973 $ 117,829
v3.20.4
Income Taxes - Income (loss) before income taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
U.S. $ (1,029) $ (1,472) $ 4,634
Foreign 40,117 25,109 39,497
Income before income taxes $ 39,088 $ 23,637 $ 44,131
v3.20.4
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current:                      
U.S. federal and state                 $ 12,561 $ 1,546 $ 1,065
Foreign                 8,457 9,525 9,530
Deferred:                      
U.S. federal and state                 (8,870) 1,643 4,051
Foreign                 (135) 1,397 3,896
Provision for income taxes $ 2,459 $ 11,729 $ 6,311 $ (8,486) $ 2,991 $ 5,328 $ 2,859 $ 2,933 $ 12,013 $ 14,111 $ 18,542
v3.20.4
Income Taxes - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
Net cash payments for income taxes $ 12,216,000 $ 16,996,000 $ 8,168,000
Change in tax rate, income tax expense     3,583,000
Valuation allowance, foreign     6,977,000
US tax reform - revaluation of deferred taxes     102,000
Release of transition tax of uncertain tax positions and adjustments     3,496,000
Estimated tax over book differences 89,510,000    
Loss carryforwards 23,033,000    
Unrecognized tax benefits, loss carryforwards 228,000    
Operating loss carryforwards, not subject to expiration 15,936,000    
Operating loss carryforwards, subject to expiration $ 7,097,000    
Operating loss carryforwards, expiration period 20 years    
Unrecognized tax benefits, interest on income taxes accrued $ 89,000 256,000 256,000
Unrecognized tax benefits that would impact effective tax rate $ 713,000 $ 1,940,000 $ 5,493,000
v3.20.4
Income Taxes - Reconciliation to federal statutory rate (Details) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]                      
Federal income taxes at statutory rate                 $ 8,208,000 $ 4,964,000 $ 9,267,000
State income taxes, net of federal benefit                 325,000 505,000 2,685,000
Goodwill impairment                 2,322,000 1,883,000  
Foreign taxes                 3,328,000 2,276,000 2,150,000
Change in valuation allowance                 (374,000) 3,919,000 9,540,000
Research and development credits                 (1,001,000) (626,000) (273,000)
Foreign tax credits                 (1,150,000) (283,000) (429,000)
Nondeductible meals and entertainment                 377,000 724,000 782,000
US tax reform - revaluation of deferred taxes                     102,000
US tax reform - transition tax, net of credits                     (3,496,000)
Change in permanent reinvestment assertion                 776,000   (1,792,000)
Disposals and liquidations of businesses                 (935,000)    
Global intangible low-tax income, net of credits                 (54,000) 892,000 454,000
Foreign-derived intangible income deduction                 (115,000) (315,000) (323,000)
Tax rate changes                 (359,000) 486,000 (392,000)
Other                 665,000 (314,000) 267,000
Provision for income taxes $ 2,459,000 $ 11,729,000 $ 6,311,000 $ (8,486,000) $ 2,991,000 $ 5,328,000 $ 2,859,000 $ 2,933,000 $ 12,013,000 $ 14,111,000 $ 18,542,000
v3.20.4
Income Taxes - Deferred income taxes (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]        
Accounts receivable allowance $ 1,019 $ 1,163    
Accrued compensation 14,655 9,553    
Accrued pension liabilities 4,950 9,116    
Self-insured risks 5,746 4,301    
Deferred revenues 5,376 4,249    
Interest 2,419 5,399    
Tax credit carryforwards 7,090 11,634    
Loss carryforwards 22,805 25,523    
Lease liability 31,435 29,785    
Other 2,158 3,436    
Gross deferred income tax assets 97,653 104,159    
Unbilled revenues 5,311 6,522    
Repatriated earnings 776      
Depreciation and amortization 23,474 28,025    
Lease right-of-use asset 27,513 25,865    
Gross deferred income tax liabilities 57,074 60,412    
Net deferred income tax assets before valuation allowance 40,579 43,747    
Valuation allowance (16,579) (28,128) $ (25,864) $ (18,829)
Net deferred income tax assets 24,000 15,619    
Amounts recognized in the Consolidated Balance Sheets consist of:        
Deferred income tax assets 25,595 17,971    
Long-term deferred income tax liabilities included in "Other noncurrent liabilities" (1,595) (2,352)    
Net deferred income tax assets $ 24,000 $ 15,619    
v3.20.4
Income Taxes - Deferred tax valuation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Valuation Allowance, Deferred Tax Asset [Roll Forward]      
Balance, beginning of year $ 28,128 $ 25,864 $ 18,829
Other changes (11,549) 2,264 7,035
Balance, end of year $ 16,579 $ 28,128 $ 25,864
v3.20.4
Income Taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Unrecognized income tax benefits [Rollforward]      
Beginning of year $ 5,287 $ 7,401 $ 11,297
Additions for tax provisions related to the current year 92 515 54
Additions for tax positions related to prior years 2 646  
Reductions for tax positions related to prior years (505) (113) (3,941)
Currency translation adjustment     (9)
Reductions for settlements (516) (2,642)  
Lapses of applicable statutes of limitation (582) (520)  
Ending of year $ 3,778 $ 5,287 $ 7,401
v3.20.4
Retirement Plans - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]      
Defined contribution plan, cost recognized $ 23,641,000 $ 25,226,000 $ 23,417,000
Defined benefit plan, voluntary contribution $ 10,446,000 1,112,000  
Corridor amount 10.00%    
Net unrecognized actuarial losses expected to be recognized in 2018 $ 10,400,000,000    
Net unrecognized actuarial losses expected to be recognized in 2018, net of tax 7,700,000,000    
Net periodic benefit cost (income), non-service cost (569,000) 3,559,000 (2,590,000)
U.S.      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, planned contributions for each of next 5 years   $ 9,000,000  
Defined benefit plan, voluntary contribution     $ 10,000,000
Increase (decrease) in projected benefit obligation $ (3,063,000)    
Discount rate used to compute periodic benefit cost 3.92%    
Expected long-term rates of return on plans' assets in next fiscal year 4.70%    
U.K Plan      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate used to compute periodic benefit cost 1.71%    
Expected long-term rates of return on plans' assets in next fiscal year   2.10%  
v3.20.4
Retirement Plans - Projected Benefit Obligations and Fair Value of Plan Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
U.S.    
Defined Benefit Plan Disclosure [Line Items]    
Projected benefit obligations $ 494,273 $ 486,305
Fair value of plans' assets 437,234 417,074
U.K Plan    
Defined Benefit Plan Disclosure [Line Items]    
Projected benefit obligations 267,200 261,953
Fair value of plans' assets $ 303,957 $ 296,943
v3.20.4
Retirement Plans - Reconciliation of Projected Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Projected Benefit Obligations:    
Beginning of measurement period $ 748,258 $ 694,482
Service cost 1,295 1,278
Interest cost 16,643 22,408
Employee contributions 35 45
Actuarial loss (gain) 49,938 77,549
Plan settlements (1,450)  
Benefits paid (55,150) (50,415)
Foreign currency effects 1,904 2,911
End of measurement period 761,473 748,258
Fair Value of Plans' Assets:    
Beginning of measurement period 714,017 649,688
Actual return on plans' assets 71,446 109,670
Defined benefit plan, voluntary contribution 10,446 1,112
Employee contributions 35 522
Plan settlements (1,450)  
Benefits paid (55,150) (50,415)
Foreign currency effects 1,847 3,440
End of measurement period 741,191 714,017
Unfunded Status $ (20,282) $ (34,241)
v3.20.4
Retirement Plans - Fund Status (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]    
Unfunded Status $ (20,282) $ (34,241)
Accumulated other comprehensive loss, before income taxes (264,244) (268,275)
Qualified Plan    
Defined Benefit Plan Disclosure [Line Items]    
U.S. Qualified Plan 53,886 65,909
U.K. prepaid pension asset included in "Other noncurrent assets" (36,757) (34,990)
US | Qualified Plan    
Defined Benefit Plan Disclosure [Line Items]    
U.S. Qualified Plan 51,645 63,538
U.K Plan | Qualified Plan    
Defined Benefit Plan Disclosure [Line Items]    
U.S. Qualified Plan 2,241 2,371
Defined Benefit Plan, Unfunded Plan | Nonqualified Plan    
Defined Benefit Plan Disclosure [Line Items]    
U.S. Qualified Plan 316 310
Unfunded status of nonqualified defined benefit pension plans included in "Other noncurrent liabilities" 2,837 3,012
Unfunded Status $ 20,282 $ 34,241
v3.20.4
Retirement Plans - AOCI (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Net unrecognized actuarial (loss) gain at beginning of period $ (268,427) $ (280,948)
Amortization of net loss (gain) 10,804 10,836
Net gain arising during the year (6,510) 2,311
Currency translation (111) (626)
Net unrecognized actuarial (loss) gain at end of period (264,244) (268,427)
Post-Retirement Medical Benefits Plan    
Defined Benefit Plan Disclosure [Line Items]    
Net unrecognized actuarial (loss) gain at beginning of period 152 304
Amortization of net loss (gain) $ (152) (152)
Net unrecognized actuarial (loss) gain at end of period   $ 152
v3.20.4
Retirement Plans - Net Periodic Benefit Costs and Benefit Payments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]      
Service cost $ 1,295 $ 1,278  
Interest cost 16,643 22,408  
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]      
2021 42,436    
2022 42,590    
2023 42,611    
2024 42,440    
2025 42,329    
2026-2030 206,549    
Defined Benefit Pension Plans      
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]      
Service cost 1,295 1,278 $ 1,395
Interest cost 16,643 22,376 20,933
Expected return on assets (28,016) (29,654) (34,267)
Amortization of actuarial loss 10,804 10,837 10,744
Net periodic benefit cost (credit) $ 726 $ 4,837 $ (1,195)
v3.20.4
Retirement Plans - Assumptions (Details)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
U.S.    
Defined Benefit Plan Disclosure [Line Items]    
Discount rate used to compute benefit obligations 2.38% 3.15%
Discount rate used to compute periodic benefit cost 3.15% 4.31%
Expected long-term rates of return on plans' assets 4.70% 6.10%
U.K Plan    
Defined Benefit Plan Disclosure [Line Items]    
Discount rate used to compute benefit obligations 1.60% 1.93%
Discount rate used to compute periodic benefit cost 1.93% 2.77%
Expected long-term rates of return on plans' assets 2.54% 3.28%
v3.20.4
Retirement Plans - Plan Asset Allocation (Details)
Dec. 31, 2020
Dec. 31, 2019
U.S.    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 100.00% 100.00%
U.S. | Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 23.40% 21.40%
U.S. | Fixed income securities    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 67.20% 69.30%
U.S. | Alternative strategies    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 6.20% 5.90%
U.S. | Cash, cash equivalents and short-term investment funds    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 3.10% 3.40%
U.K Plan    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 100.00% 100.00%
U.K Plan | Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 17.10% 17.90%
U.K Plan | Fixed income securities    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 67.40% 68.30%
U.K Plan | Alternative strategies    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 14.70% 13.00%
U.K Plan | Cash, cash equivalents and short-term investment funds    
Defined Benefit Plan Disclosure [Line Items]    
Total asset allocation 0.90% 0.80%
v3.20.4
Common Stock and Earnings per Share - Additional Information (Details)
 12 Months Ended
Dec. 31, 2020
shares
Dec. 31, 2020
$ / shares
shares
Dec. 31, 2020
shares
Dec. 31, 2020
classofstock
shares
Dec. 31, 2019
$ / shares
shares
May 09, 2019
shares
Jul. 29, 2017
shares
Equity, Class of Treasury Stock              
Number of classes of common stock     2 2      
Average cost (USD per share) | $ / shares   $ 8.42          
Class A Non-Voting              
Equity, Class of Treasury Stock              
Approval rate to waive equal consideration rights     75.00%        
Shares repurchased (shares) 155,351            
Class A Non-Voting | Stock Purchase Agreement              
Equity, Class of Treasury Stock              
Shares repurchased (in shares)         421,427    
Class A Non-Voting | Repurchase Authorization2017              
Equity, Class of Treasury Stock              
Shares repurchased (shares)         1,103,398    
Average cost (USD per share) | $ / shares         $ 9.33    
Common Stock | Repurchase Authorization2017              
Equity, Class of Treasury Stock              
Number of shares authorized to be repurchased (shares)             2,000,000
Common Stock | Repurchase Authorization 2019              
Equity, Class of Treasury Stock              
Number of shares authorized to be repurchased (shares)           2,000,000  
Number of shares remaining to be repurchased (shares) 642,097 642,097 642,097 642,097 958,907    
Class B Voting              
Equity, Class of Treasury Stock              
Shares repurchased (shares) 161,459            
Class B Voting | Stock Purchase Agreement              
Equity, Class of Treasury Stock              
Shares repurchased (in shares)         1,376,889    
Class B Voting | Repurchase Authorization2017              
Equity, Class of Treasury Stock              
Shares repurchased (shares)         1,736,011    
Average cost (USD per share) | $ / shares         $ 9.17    
v3.20.4
Common Stock and Earnings per Share - Schedule of Computations of Basic Net Income Attributable to Shareholders of Crawford & Company per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
 [1]
Sep. 30, 2020
 [1]
Jun. 30, 2020
 [1]
Mar. 31, 2020
 [1]
Dec. 31, 2019
 [1]
Sep. 30, 2019
 [1]
Jun. 30, 2019
 [1]
Mar. 31, 2019
 [1]
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Class A Non-Voting                      
Numerator:                      
Allocation of undistributed earnings (loss)                 $ 10,743 $ (392) $ 6,941
Dividends paid                 5,815 8,592 8,639
Net income available to common shareholders, basic                 $ 16,558 $ 8,200 $ 15,580
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:                      
Weighted-average common shares outstanding, basic                 30,605 30,637 30,805
Earnings per share - basic $ 0.18 $ 0.46 $ 0.11 $ 0.21 $ 0.13 $ 0.22 $ 0.06 $ 0.12 $ 0.54 [1] $ 0.27 [1] $ 0.51
Class B Voting                      
Numerator:                      
Allocation of undistributed earnings (loss)                 $ 7,908 $ (294) $ 5,509
Dividends paid                 3,830 4,579 4,889
Net income available to common shareholders, basic                 $ 11,738 $ 4,285 $ 10,398
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:                      
Weighted-average common shares outstanding, basic                 22,527 22,975 24,449
Earnings per share - basic $ 0.18 $ 0.46 $ 0.11 $ 0.23 $ 0.15 $ 0.19 $ 0.04 $ 0.10 $ 0.52 [1] $ 0.19 [1] $ 0.43
[1]

Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data.
v3.20.4
Common Stock and Earnings per Share - Schedule of Computations of Diluted Net Income Attributable to Shareholders of Crawford & Company per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
 [1]
Sep. 30, 2020
 [1]
Jun. 30, 2020
 [1]
Mar. 31, 2020
 [1]
Dec. 31, 2019
 [1]
Sep. 30, 2019
 [1]
Jun. 30, 2019
 [1]
Mar. 31, 2019
 [1]
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Class A Non-Voting                      
Numerator:                      
Allocation of undistributed earnings (loss)                 $ 10,781 $ (394) $ 7,003
Dividends paid                 5,815 8,592 8,639
Net income available to common shareholders, diluted                 $ 16,596 $ 8,198 $ 15,642
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:                      
Weighted-average common shares outstanding, basic                 30,605 30,637 30,805
Weighted-average effect of dilutive securities (1)                 252 453 629
Weighted-average number of shares outstanding, diluted                 30,857 31,090 31,434
Earnings per share - diluted $ 0.18 $ 0.46 $ 0.11 $ 0.21 $ 0.13 $ 0.21 $ 0.06 $ 0.12 $ 0.54 [1] $ 0.26 [1] $ 0.50
Class B Voting                      
Numerator:                      
Allocation of undistributed earnings (loss)                 $ 7,870 $ (292) $ 5,447
Dividends paid                 3,830 4,579 4,889
Net income available to common shareholders, diluted                 $ 11,700 $ 4,287 $ 10,336
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:                      
Weighted-average common shares outstanding, basic                 22,527 22,975 24,449
Weighted-average number of shares outstanding, diluted                 22,527 22,975 24,449
Earnings per share - diluted $ 0.18 $ 0.46 $ 0.11 $ 0.23 $ 0.15 $ 0.19 $ 0.04 $ 0.10 $ 0.52 [1] $ 0.19 [1] $ 0.42
[1]

Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data.
v3.20.4
Common Stock and Earnings per Share - Schedule of Antidilutive Shares Excluded from Computation of Diluted Earnings per Share (Details) - shares
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Shares Underlying Stock Options Excluded      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Shares excluded from diluted earnings per share (shares) 1,996 622 1,175
Performance Stock Grants Excluded because Performance Conditions Have Not Been Met      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Shares excluded from diluted earnings per share (shares) 578 717 752
v3.20.4
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Foreign Currency Translation Adjustments      
Accumulated Other Comprehensive Income Loss [Line Items]      
Adjustment for long-term intercompany transactions, net of tax $ (5,165,000) $ (928,000) $ (1,838,000)
v3.20.4
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance $ 162,567 $ 175,446 $ 186,964
Unrealized net gains (losses) arising during the year (4,966) 1,036 (18,014)
Ending balance 186,928 162,567 175,446
Foreign Currency Translation Adjustments      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance (35,850) (36,352)  
Other comprehensive income before reclassifications 4,595 502  
Unrealized net gains (losses) arising during the year 0 0  
Amounts reclassified from accumulated other comprehensive income [1] 0 0  
Net current period other comprehensive income 4,595 502  
Acquisition/Disposition of noncontrolling interest 463    
Ending balance (30,792) (35,850) (36,352)
Retirement Liabilities      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance (171,057) (180,095)  
Other comprehensive income before reclassifications 0 0  
Unrealized net gains (losses) arising during the year (4,966) 1,036  
Amounts reclassified from accumulated other comprehensive income [1] 7,959 8,002  
Net current period other comprehensive income 2,993 9,038  
Acquisition/Disposition of noncontrolling interest 0    
Ending balance (168,064) (171,057) (180,095)
AOCL Attributable to Shareholders of Crawford & Company      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance (206,907) (216,447) (196,477)
Other comprehensive income before reclassifications 4,595 502  
Unrealized net gains (losses) arising during the year (4,966) 1,036  
Amounts reclassified from accumulated other comprehensive income [1] 7,959 8,002  
Net current period other comprehensive income 7,588 9,540  
Acquisition/Disposition of noncontrolling interest 463    
Ending balance $ (198,856) $ (206,907) $ (216,447)
[1] Retirement liabilities reclassified to net income are related to the amortization of actuarial losses and are included in "Selling, general, and administrative expenses" in the Company's Consolidated Statements of Operations. See Note 8, "Retirement Plans" for additional details.
v3.20.4
Stock-Based Compensation - Stock Options (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Stock-based compensation costs $ 4,384,000 $ 4,109,000 $ 6,196,000  
Tax benefit from compensation expense $ 947,000 $ 888,000 $ 1,475,000  
Share based award vesting period 5 years      
Class A Non-Voting        
Summary of Option Activity, Shares        
Outstanding beginning balance (in shares) 1,694 1,294 887  
Granted (in shares) 660 591 582  
Exercised (in shares)   (111) (21)  
Forfeited or expired (in shares) (458) (80) (154)  
Outstanding ending balance (in shares) 1,896 1,694 1,294 887
Exercisable at end of period (in shares) 1,101      
Summary of Option Activity, Weighted-Average Exercise Price        
Outstanding beginning balance, weighted-average exercise price (in usd per share) $ 9.13 $ 8.60 $ 8.53  
Granted, weighted-average exercise price (in usd per share) 8.73 9.70 8.60  
Exercised, weighted-average exercise price (in usd per share)   5.91 4.88  
Forfeited or expired, weighted-average exercise price (in usd per share) 9.05 9.24 8.74  
Outstanding ending balance, weighted-average exercise price (in usd per share) 9.01 $ 9.13 $ 8.60 $ 8.53
Exercisable at end of period, weighted-average exercise price (in usd per share) $ 9.06      
Summary of Option Activity, Weighted-Average Remaining Contractual Term        
Outstanding, weighted-average remaining contractual term 7 years 4 months 24 days 7 years 10 months 24 days 8 years 1 month 6 days 8 years 4 months 24 days
Exercisable at end of period, weighted-average exercise price (in usd per share) 6 years 7 months 6 days      
Outstanding, aggregate intrinsic value $ 114,000 $ 3,969,000 $ 667,000 $ 527,000
Exercisable at end of period, aggregate intrinsic value $ 26,000      
Shares Underlying Stock Options Excluded        
Summary of Option Activity, Weighted-Average Remaining Contractual Term        
Expected dividend yield 3.02% 3.80%    
Expected volatility 35.48% 36.73%    
Risk-free interest rate 1.38% 2.56%    
Expected term of options 7 years 7 years    
Shares Underlying Stock Options Excluded | Class A Non-Voting        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Share based award vesting period 3 years      
Stock option vesting per year (percent) 33.00%      
Stock options expiration period 10 years      
Share-based compensation expense $ 617,000 $ 1,397,000 $ 1,253,000  
Summary of Option Activity, Weighted-Average Remaining Contractual Term        
Weighted average grant date fair value, options granted during period (in usd per share) $ 2.29 $ 2.57 $ 2.78  
Options, exercised in period, intrinsic value $ 0 $ 446,000 $ 80,000  
Options, vested in period, fair value 0 $ 1,000,000 $ 36,000  
Unearned compensation cost $ 636,000      
v3.20.4
Stock-Based Compensation - Performance-Based Stock Grants (Details)
 12 Months Ended
Sep. 23, 2020
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Share based award vesting period   5 years      
Weighted-Average Grant-Date Fair Value          
Number of share to vest 0        
Shares          
Nonvested at the beginning of the period (in shares)   79,560 81,608 72,109 112,219
Granted (in shares)   117,279 149,496 112,502  
Vested (in shares)   (119,327) (108,610) (131,260)  
Forfeited or unearned (in shares)     (31,387) (21,352)  
Nonvested at the beginning of the period, weighted-average grant-date fair value (in usd per share) | $ / shares   $ 8.08 $ 8.35 $ 7.76 $ 7.89
Granted, weighted-average grant-date fair value (in usd per share) | $ / shares   8.34 9.38 7.81  
Vested, weighted-average grant-date fair value (in usd per share) | $ / shares   $ 8.52 9.04 8.27  
Forfeited or unearned, weighted-average grant-date fair value (in usd per share) | $ / shares     $ 9.55 $ 8.43  
Minimum          
Weighted-Average Grant-Date Fair Value          
Percentage of number of share earned of target share granted 50        
Maximum          
Weighted-Average Grant-Date Fair Value          
Percentage of number of share earned of target share granted 200        
Shares Underlying Stock Options Excluded | Class A Non-Voting          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Share based award vesting period   3 years      
Weighted-Average Grant-Date Fair Value          
Stock option vesting per year (percent)   33.00%      
Shares          
Share-based compensation expense | $   $ 617,000 $ 1,397,000 $ 1,253,000  
Unearned compensation cost | $   $ 636,000      
2019 Replacement Awards          
Weighted-Average Grant-Date Fair Value          
Stock option vesting per year (percent) 50.00%        
Vesting date December 31, 2021        
2019 Replacement Awards | Maximum          
Weighted-Average Grant-Date Fair Value          
Total shareholder return 10        
2020 Replacement Awards          
Weighted-Average Grant-Date Fair Value          
Stock option vesting per year (percent) 100.00%        
Vesting date December 31, 2022        
2020 Replacement Awards | Maximum          
Weighted-Average Grant-Date Fair Value          
Total shareholder return 20        
Performance Stock Grants Excluded because Performance Conditions Have Not Been Met | Class A Non-Voting          
Shares          
Nonvested at the beginning of the period (in shares)   899,271 973,779 988,837 884,342
Granted (in shares)   1,616,902 626,776 751,128  
Vested (in shares)   (224,681) (214,824) (445,311)  
Forfeited or unearned (in shares)   (1,466,729) (427,010) (201,322)  
Nonvested at the beginning of the period, weighted-average grant-date fair value (in usd per share) | $ / shares   $ 8.19 $ 8.38 $ 8.07 $ 7.05
Granted, weighted-average grant-date fair value (in usd per share) | $ / shares   8.01 8.87 7.43  
Vested, weighted-average grant-date fair value (in usd per share) | $ / shares   8.33 8.49 5.98  
Forfeited or unearned, weighted-average grant-date fair value (in usd per share) | $ / shares   $ 8.10 $ 8.34 $ 7.54  
Fair value of performance shares vested | $   $ 1,871,000 $ 1,823,000 $ 2,662,000  
Share-based compensation expense | $   2,382,000,000 $ 1,082,000,000 $ 3,307,000,000  
Unearned compensation cost | $   $ 4,999,000,000      
v3.20.4
Stock-Based Compensation - Restricted Shares (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Share based award vesting period 5 years    
Shares      
Nonvested at the beginning of the period (in shares) 81,608 72,109 112,219
Granted (in shares) 117,279 149,496 112,502
Vested (in shares) (119,327) (108,610) (131,260)
Forfeited or unearned (in shares)   (31,387) (21,352)
Nonvested at the end of the period (in shares) 79,560 81,608 72,109
Weighted-Average Grant-Date Fair Value      
Nonvested at the beginning of the period, weighted-average grant-date fair value (in usd per share) $ 8.35 $ 7.76 $ 7.89
Granted, weighted-average grant-date fair value (in usd per share) 8.34 9.38 7.81
Vested, weighted-average grant-date fair value (in usd per share) 8.52 9.04 8.27
Forfeited or unearned, weighted-average grant-date fair value (in usd per share)   9.55 8.43
Nonvested at the end of the period, weighted-average grant-date fair value (in usd per share) $ 8.08 $ 8.35 $ 7.76
Restricted stock | Class A Non-Voting      
Weighted-Average Grant-Date Fair Value      
Share-based compensation expense $ 942,000 $ 1,205,000 $ 1,176,000
Unearned compensation cost $ 214,000    
v3.20.4
Stock-Based Compensation - Employee Stock Purchase Plans (Details)
 12 Months Ended
Dec. 31, 2020
USD ($)
Stock_PurchasePlan
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2020
GBP (£)
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Number of employee stock purchase plans | Stock_PurchasePlan 3      
United States Stock Repurchase Program | Class A Non-Voting        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Shares authorized (in shares) 1,200,000     1,200,000
Maximum annual earnings withheld to purchase shares | $ $ 25,000      
Purchase price of stock, percent of market price (percent) 85.00%      
Shares issued (in shares) 114,408 131,100 143,769  
Purchase price of shares during period (in usd per share) | $ / shares $ 6.71 $ 7.38 $ 7.32  
Projected exercises in period (in shares) 151,000     151,000
Share-based compensation expense | $ $ 343,000 $ 277,000 $ 321,000  
U.K. Stock Repurchase Plan | Class A Non-Voting        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Shares authorized (in shares) 1,200,000     1,200,000
Purchase price of stock, percent of market price (percent) 85.00%      
Shares issued (in shares) 2,061 289,901 63,033  
Share-based compensation expense | $ $ 163,000,000 $ 148,000,000 $ 140,000,000  
Maximum monthly earnings withheld to purchase shares (in gbp) | £       £ 250
Estimated shares eligible for purchase (in shares) 108,000     108,000
U.K. Stock Repurchase Plan | Class A Non-Voting | Minimum        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Purchase price of shares during period (in usd per share) | $ / shares $ 6.32      
U.K. Stock Repurchase Plan | Class A Non-Voting | Maximum        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Purchase price of shares during period (in usd per share) | $ / shares $ 8.95      
International stock based compensation plan | Class A Non-Voting        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Shares authorized (in shares) 1,000,000     1,000,000
Shares issued (in shares) 4,051 4,264 8,740  
Purchase price of stock, percent of market price (percent) 85.00%      
International stock based compensation plan | Class A Non-Voting | Minimum        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Maximum annual earnings withheld to purchase shares | $ $ 21,250      
International stock based compensation plan | Class A Non-Voting | Maximum        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Maximum number of shares per employee 5,000      
v3.20.4
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Liabilities:    
Contingent earnout liability $ 6,151 $ 454
Significant Unobservable Inputs (Level 3)    
Liabilities:    
Contingent earnout liability 6,151 454
Money Market Funds    
ASSETS    
Money market funds 10,026 10,028
Money Market Funds | Quoted Prices in Active Markets (Level 1)    
ASSETS    
Money market funds $ 10,026 $ 10,028
v3.20.4
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Details)
Dec. 31, 2020
USD ($)
Crawford Specialty Solutions  
Liabilities:  
Maximum possible earnout liability $ 12,090,000
v3.20.4
Fair Value Measurements - Additional Information (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2020
 [1]
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Liabilities:          
Transfers of assets measured on a recurring basis out of Level 1 into Level 2   $ 0   $ 0 $ 0
Transfers of assets measured on a recurring basis out of Level 2 into Level 1   0   0 0
Transfers of assets measured on a recurring basis into Level 3       0 0
Transfers of assets measured on a recurring basis out Level 3       0 0
Debt instrument, variable interest rate duration between resets     90 days    
Goodwill and intangible asset impairments $ 17,674,000 $ 17,484,000 $ 17,674,000 [1] $ 17,484,000 $ 1,056,000
[1] The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.
v3.20.4
Fair Value Measurements - Pension Plan Assets within Fair Value Hierarchy (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets $ 741,191 $ 714,017 $ 649,688
US      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 404,275 403,144  
Other plan liabilities, net [1] (7,336) (26,220)  
Net plan assets 396,939 376,924  
US | Cash and Cash Equivalents      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 2,861 8,082  
US | Short-term Investments      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 9,827 5,496  
US | United States Equity Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 66,145 60,039  
US | International Equity Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 28,529 26,142  
US | United States Fixed Income Funds      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 243,226 275,994  
US | International Fixed Income Funds      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 28,501 3,745  
US | Asset Categories Other      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 25,186 23,646  
US | Quoted Prices in Active Markets (Level 1)      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 38,868 59,329  
US | Quoted Prices in Active Markets (Level 1) | Cash and Cash Equivalents      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 2,861 8,082  
US | Quoted Prices in Active Markets (Level 1) | United States Fixed Income Funds      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 36,007 51,247  
US | Significant Other Observable Inputs (Level 2)      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 349,469 329,049  
US | Significant Other Observable Inputs (Level 2) | Short-term Investments      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 9,827 5,496  
US | Significant Other Observable Inputs (Level 2) | United States Equity Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 66,145 60,039  
US | Significant Other Observable Inputs (Level 2) | International Equity Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 28,529 26,142  
US | Significant Other Observable Inputs (Level 2) | United States Fixed Income Funds      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 207,219 224,747  
US | Significant Other Observable Inputs (Level 2) | International Fixed Income Funds      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 28,501 3,745  
US | Significant Other Observable Inputs (Level 2) | Asset Categories Other      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 9,248 8,880  
US | Significant Unobservable Inputs (Level 3)      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 15,938 14,766 16,488
US | Significant Unobservable Inputs (Level 3) | Asset Categories Other      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 15,938 14,766  
U.K Plan      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 303,954 296,943  
U.K Plan | Cash and Cash Equivalents      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 2,613 2,338  
U.K Plan | United States Equity Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 44,461 43,613  
U.K Plan | International Equity Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 7,510 9,418  
U.K Plan | Money Market Funds      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 162,276 167,741  
U.K Plan | US Government Agencies Debt Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 42,564 34,926  
U.K Plan | Alternative strategies      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 34,958 29,172  
U.K Plan | Real Estate Funds      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 9,572 9,735  
U.K Plan | Quoted Prices in Active Markets (Level 1)      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 2,613 2,338  
U.K Plan | Quoted Prices in Active Markets (Level 1) | Cash and Cash Equivalents      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 2,613 2,338  
U.K Plan | Significant Other Observable Inputs (Level 2)      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 291,769 284,870  
U.K Plan | Significant Other Observable Inputs (Level 2) | United States Equity Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 44,461 43,613  
U.K Plan | Significant Other Observable Inputs (Level 2) | International Equity Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 7,510 9,418  
U.K Plan | Significant Other Observable Inputs (Level 2) | Money Market Funds      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 162,276 167,741  
U.K Plan | Significant Other Observable Inputs (Level 2) | US Government Agencies Debt Securities      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 42,564 34,926  
U.K Plan | Significant Other Observable Inputs (Level 2) | Alternative strategies      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 34,958 29,172  
U.K Plan | Significant Unobservable Inputs (Level 3)      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets 9,572 9,735 $ 9,945
U.K Plan | Significant Unobservable Inputs (Level 3) | Real Estate Funds      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Total plan assets $ 9,572 $ 9,735  
[1] net amounts payable for unsettled security transactions.
v3.20.4
Fair Value Measurements - Reconciliation Of Level 3 Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Beginning of measurement period $ 714,017 $ 649,688
Actual return on plan assets:    
End of measurement period 741,191 714,017
U.S.    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Beginning of measurement period 403,144  
Actual return on plan assets:    
End of measurement period 404,275 403,144
U.K Plan    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Beginning of measurement period 296,943  
Actual return on plan assets:    
End of measurement period 303,954 296,943
Significant Unobservable Inputs (Level 3) | U.S.    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Beginning of measurement period 14,766 16,488
Actual return on plan assets:    
Related to assets still held at the reporting date 1,172 (1,722)
End of measurement period 15,938 14,766
Significant Unobservable Inputs (Level 3) | U.K Plan    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Beginning of measurement period 9,735 9,945
Actual return on plan assets:    
Related to assets still held at the reporting date (163) (210)
End of measurement period $ 9,572 $ 9,735
v3.20.4
Segment and Geographic Information - Financial Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]                      
Revenues $ 265,605 $ 261,669 $ 242,875 $ 246,046 $ 257,562 $ 265,842 $ 267,846 $ 256,377 $ 1,016,195 $ 1,047,627 $ 1,122,979
Assets 752,984       760,013       752,984 760,013  
Operating Segments                      
Segment Reporting Information [Line Items]                      
Segment operating earnings                 88,404 84,124 97,781
Depreciation and amortization [1]                 13,041 14,424 16,846
Assets [2] 364,301       387,836       364,301 387,836 421,321
Service                      
Segment Reporting Information [Line Items]                      
Revenues                 982,492 1,005,802 1,070,971
Crawford Claims Solutions | Operating Segments                      
Segment Reporting Information [Line Items]                      
Segment operating earnings                 14,375 7,630 11,308
Depreciation and amortization [1]                 2,405 2,461 3,485
Assets [2] 120,777       136,451       120,777 136,451 163,899
Crawford Claims Solutions | Service                      
Segment Reporting Information [Line Items]                      
Revenues                 356,447 339,837 361,053
Crawford TPA Solutions                      
Segment Reporting Information [Line Items]                      
Revenues                 364,983 393,856  
Crawford TPA Solutions | Operating Segments                      
Segment Reporting Information [Line Items]                      
Segment operating earnings                 21,476 27,173 36,909
Depreciation and amortization [1]                 9,345 10,152 9,844
Assets [2] 88,002       85,810       88,002 85,810 92,007
Crawford TPA Solutions | Service                      
Segment Reporting Information [Line Items]                      
Revenues                 364,983 393,856 405,335
Crawford Specialty Solutions                      
Segment Reporting Information [Line Items]                      
Revenues                 261,062 272,109  
Crawford Specialty Solutions | Operating Segments                      
Segment Reporting Information [Line Items]                      
Segment operating earnings                 52,553 49,321 49,564
Depreciation and amortization [1]                 1,291 1,811 3,517
Assets [2] $ 155,522       $ 165,575       155,522 165,575 165,415
Crawford Specialty Solutions | Service                      
Segment Reporting Information [Line Items]                      
Revenues                 $ 261,062 $ 272,109 $ 304,583
[1] Excludes amortization expense of finite-lived customer relationships and trade name intangible assets.
[2] Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net.
v3.20.4
Segment and Geographic Information - Capital Expenditures (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]      
Crawford Claims Solutions $ 37,380 $ 21,124 $ 30,020
Corporate, Non-Segment      
Segment Reporting Information [Line Items]      
Crawford Claims Solutions 19,724 16,011 18,114
Crawford Claims Solutions | Operating Segments      
Segment Reporting Information [Line Items]      
Crawford Claims Solutions 5,443 1,396 3,811
Crawford TPA Solutions | Operating Segments      
Segment Reporting Information [Line Items]      
Crawford Claims Solutions 6,527 3,259 5,947
Crawford Specialty Solutions | Operating Segments      
Segment Reporting Information [Line Items]      
Crawford Claims Solutions $ 5,686 $ 458 $ 2,148
v3.20.4
Segment and Geographic Information - Revenues (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]                      
Revenues $ 265,605 $ 261,669 $ 242,875 $ 246,046 $ 257,562 $ 265,842 $ 267,846 $ 256,377 $ 1,016,195 $ 1,047,627 $ 1,122,979
Service                      
Segment Reporting Information [Line Items]                      
Revenues                 982,492 1,005,802 1,070,971
Reimbursements                      
Segment Reporting Information [Line Items]                      
Revenues                 $ 33,703 $ 41,825 $ 52,008
v3.20.4
Segment and Geographic Information - Income Before Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]                      
Unallocated corporate and shared costs and credits $ (11,347) $ (968) $ (1,709) $ (2,550) $ (4,122) $ (1,649) $ 3,170 $ (3,914) $ (16,574) $ (6,515)  
Net corporate interest expense                 (7,923) (10,774) $ (10,109)
Goodwill and intangible asset impairments                 (17,674) (17,484) (1,056)
Arbitration and claim settlements                   (12,552)  
Restructuring and other costs, net                 (9,760)    
Gain (loss) on disposition of businesses, net [1]   $ 14,104 $ (341)           13,763    
(Loss) Income Before Income Taxes                 39,088 23,637 44,131
Segment Reconciling Items                      
Segment Reporting Information [Line Items]                      
Segment operating earnings                 88,404 84,124 97,781
Unallocated corporate and shared costs and credits                 (16,574) (6,515) (9,321)
Net corporate interest expense                 (7,923) (10,774) (10,109)
Stock option expense                 (1,122) (1,885) (1,742)
Amortization of acquisition-related intangible assets                 (11,653) (11,277) (11,152)
Goodwill and intangible asset impairments                 (17,674) (17,484) (1,056)
Arbitration and claim settlements                   (12,552)  
Restructuring and other costs, net                 (8,133)    
Gain (loss) on disposition of businesses, net                 13,763   (20,270)
(Loss) Income Before Income Taxes                 $ 39,088 $ 23,637 $ 44,131
[1] The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.
v3.20.4
Segment and Geographic Information - Assets (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Segment Reporting Asset Reconciling Item [Line Items]        
Assets $ 752,984,000 $ 760,013,000    
ASSETS        
Cash and cash equivalents 44,656,000 51,802,000    
Income taxes receivable 1,269,000 7,820,000    
Prepaid expenses and other current assets 29,490,000 23,476,000    
Net Property and Equipment 36,402,000 31,425,000    
Operating lease right-of-use asset, net 109,315,000 102,354,000 $ 122,300,000  
Capitalized software costs, net 71,021,000 66,445,000    
Deferred income tax assets 25,595,000 17,971,000    
Other noncurrent assets 70,935,000 70,884,000    
TOTAL ASSETS 752,984,000 760,013,000    
Operating Segments        
Segment Reporting Asset Reconciling Item [Line Items]        
Assets [1] 364,301,000 387,836,000   $ 421,321,000
ASSETS        
TOTAL ASSETS [1] 364,301,000 387,836,000   $ 421,321,000
Corporate, Non-Segment        
Segment Reporting Asset Reconciling Item [Line Items]        
Assets 388,683,000 372,177,000    
ASSETS        
Cash and cash equivalents 44,656,000 51,802,000    
Income taxes receivable 1,269,000 7,820,000    
Prepaid expenses and other current assets 29,490,000 23,476,000    
Net Property and Equipment 36,402,000 31,425,000    
Operating lease right-of-use asset, net 109,315,000 102,354,000    
Capitalized software costs, net 71,021,000 66,445,000    
Deferred income tax assets 25,595,000 17,971,000    
Other noncurrent assets 70,935,000 70,884,000    
TOTAL ASSETS $ 388,683,000 $ 372,177,000    
[1] Consists of accounts receivable, less allowance for expected credit losses, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net.
v3.20.4
Segment and Geographic Information - Revenues and Long-lived Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues $ 265,605 $ 261,669 $ 242,875 $ 246,046 $ 257,562 $ 265,842 $ 267,846 $ 256,377 $ 1,016,195 $ 1,047,627 $ 1,122,979
Crawford TPA Solutions                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues                 982,492 1,005,802 1,070,971
Long-lived assets 216,738       200,224       216,738 200,224 106,513
U.S. | Crawford TPA Solutions                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues                 570,822 569,205 615,687
Long-lived assets 151,906       140,560       151,906 140,560 88,157
U.K. | Crawford TPA Solutions                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues                 128,545 126,337 131,651
Long-lived assets 20,290       20,749       20,290 20,749 7,631
Canada | Crawford TPA Solutions                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues                 89,163 114,438 121,076
Long-lived assets 14,404       17,999       14,404 17,999 7,553
International Countries_ Otherthan U K And Canada | Crawford TPA Solutions                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues                 193,962 195,822 202,557
Long-lived assets $ 30,138       $ 20,916       $ 30,138 $ 20,916 $ 3,172
v3.20.4
Client Funds - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Custodial    
Funds Heldfor Clients [Line Items]    
Funds held for clients $ 537,531,000 $ 410,673,000
v3.20.4
Commitments and Contingencies - Additional Information (Details)
Dec. 31, 2020
USD ($)
Letter of credit subcommitment  
Loss Contingencies [Line Items]  
Letters of credit outstanding amount $ 11,512,000
v3.20.4
Restructuring and Other Costs - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring And Related Activities [Abstract]      
Restructuring and other costs $ 8,133,000 $ 0 $ 0
v3.20.4
Restructuring and Other Costs - Restructuring and Related Costs (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring And Related Activities [Abstract]      
Severance benefits $ 9,350,000    
Asset impairments and lease termination costs 2,538,000    
Gain on fair value remeasurement of cost and equity method investments (1,099,000)    
Liquidation dividend from a cost method investment (1,247,000)    
Gain on sale of internet protocol addresses (1,409,000)    
Total restructuring and other costs, net $ 8,133,000 $ 0 $ 0
v3.20.4
Restructuring Costs - Schedule of Restructuring Reserve Liabilities by Type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring Reserve [Roll Forward]      
Beginning balance $ 814 $ 2,265 $ 9,413
Additions 9,760    
Adjustments to accruals (925) (1,301) (2,187)
Cash payments (5,690) (150) (4,961)
Ending balance 3,959 814 2,265
Additions 9,760    
Deferred rent      
Restructuring Reserve [Roll Forward]      
Beginning balance   1,302 2,846
Adjustments to accruals   (1,302) (1,544)
Ending balance     1,302
Accrued Compensation and Related Costs      
Restructuring Reserve [Roll Forward]      
Beginning balance 342 477 4,782
Additions 9,112    
Adjustments to accruals (453)    
Cash payments (5,632) (135) (4,305)
Ending balance 3,369 342 477
Additions 9,112    
Other Accrued Liabilities      
Restructuring Reserve [Roll Forward]      
Beginning balance 472 486 1,785
Additions 648    
Adjustments to accruals (472) 1 (643)
Cash payments (58) (15) (656)
Ending balance 590 $ 472 $ 486
Additions $ 648    
v3.20.4
Subsequent Events - Additional Information (Details) - HBA Group
$ in Millions
Nov. 01, 2020
USD ($)
Subsequent Event [Line Items]  
Date of acquisition Nov. 01, 2020
Description of acquired entity On November 1, 2020, the Company acquired 100% of HBA Group in Australia, including 100% of the stock in each of HBA Group’s entities HBA Legal, Pillion and Paratus. HBA Legal is a legal services provider that will complement the Company’s Crawford TPA Solutions segment in Australia. The purchase price includes an initial cash payment of $4.1 million, net of working capital adjustment, and a maximum $3.2 million payable in cash over the next four years based on achieving certain revenue and EBITDA performance goals.
Membership interest percentage 100.00%
Initial lump-sum payment of purchase price $ 4.1
Maximum  
Subsequent Event [Line Items]  
Payment to acquire business $ 3.2
v3.20.4
Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Financial Data (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Revenues from services:                      
Revenues before reimbursements $ 257,421,000 $ 253,124,000 $ 234,416,000 $ 237,531,000 $ 247,186,000 $ 254,677,000 $ 256,881,000 $ 247,058,000 $ 982,492,000 $ 1,005,802,000  
Reimbursements 8,184,000 8,545,000 8,459,000 8,515,000 10,376,000 11,165,000 10,965,000 9,319,000 33,703,000 41,825,000  
Total revenues 265,605,000 261,669,000 242,875,000 246,046,000 257,562,000 265,842,000 267,846,000 256,377,000 1,016,195,000 1,047,627,000 $ 1,122,979,000
Total costs of services 193,538,000 185,606,000 172,057,000 186,119,000 187,660,000 192,014,000 185,892,000 187,207,000 737,320,000 752,773,000  
(Loss) Income before income taxes 11,862,000 36,438,000 12,433,000 (21,645,000) (6,567,000) 16,019,000 5,483,000 8,702,000 39,088,000 23,637,000  
Unallocated corporate and shared costs and credits (11,347,000) (968,000) (1,709,000) (2,550,000) (4,122,000) (1,649,000) 3,170,000 (3,914,000) (16,574,000) (6,515,000)  
Impairment of goodwill       (17,674,000) [1] (17,484,000)       (17,674,000) [1] (17,484,000) (1,056,000)
Net corporate interest expense (1,648,000) (1,599,000) (2,452,000) (2,224,000) (2,428,000) (3,162,000) (2,468,000) (2,716,000) (7,923,000) (10,774,000)  
Stock option expense (89,000) (457,000) (286,000) (290,000) (537,000) (450,000) (413,000) (485,000) (1,122,000) (1,885,000)  
Amortization of customer-relationship intangible assets (2,500,000) (3,665,000) (2,732,000) (2,756,000) (2,848,000) (2,829,000) (2,802,000) (2,798,000) (11,653,000) (11,277,000)  
Restructuring and other costs, net (4) [1] (2,419,000)     (5,714,000)         (8,133,000)    
Gain (loss) on disposition of businesses, net [1]   14,104,000 (341,000)           13,763,000    
Income tax benefit (provision) (2,459,000) (11,729,000) (6,311,000) 8,486,000 (2,991,000) (5,328,000) (2,859,000) (2,933,000) (12,013,000) (14,111,000) (18,542,000)
Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests (3,000) (312,000) (224,000) 1,760,000 2,246,000 355,000 18,000 340,000 1,221,000 2,959,000 389,000
Net (Loss) Income Attributable to Shareholders of Crawford & Company 9,400,000 24,397,000 5,898,000 (11,399,000) (7,312,000) 11,046,000 2,642,000 6,109,000 28,296,000 12,485,000 $ 25,978,000
(Loss) Earnings Per Share - Diluted:                      
Arbitration and claim settlements (4) [1]           (1,200,000) (11,352,000)     (12,552,000)  
Crawford Claims                      
Revenues from services:                      
Segment operating earnings [2] 8,046,000 7,219,000 2,789,000 (3,679,000) 3,572,000 2,661,000 1,710,000 (313,000) 14,375,000 7,630,000  
Crawford T P A                      
Revenues from services:                      
Segment operating earnings [2] 7,606,000 4,414,000 3,171,000 6,285,000 6,067,000 9,347,000 5,026,000 6,733,000 21,476,000 27,173,000  
Crawford Specialty                      
Revenues from services:                      
Segment operating earnings [2] $ 14,213,000 $ 17,390,000 $ 13,993,000 $ 6,957,000 $ 11,213,000 $ 13,301,000 $ 12,612,000 $ 12,195,000 $ 52,553,000 $ 49,321,000  
Class A Non-Voting                      
(Loss) Earnings Per Share - Basic:                      
(Loss) Earnings Per Share - Basic: $ 0.18 [3] $ 0.46 [3] $ 0.11 [3] $ 0.21 [3] $ 0.13 [3] $ 0.22 [3] $ 0.06 [3] $ 0.12 [3] $ 0.54 [3] $ 0.27 [3] $ 0.51
(Loss) Earnings Per Share - Diluted:                      
(Loss) Earnings Per Share - Diluted: 0.18 [3] 0.46 [3] 0.11 [3] 0.21 [3] 0.13 [3] 0.21 [3] 0.06 [3] 0.12 [3] 0.54 [3] 0.26 [3] 0.50
Class B Voting                      
(Loss) Earnings Per Share - Basic:                      
(Loss) Earnings Per Share - Basic: 0.18 [3] 0.46 [3] 0.11 [3] 0.23 [3] 0.15 [3] 0.19 [3] 0.04 [3] 0.10 [3] 0.52 [3] 0.19 [3] 0.43
(Loss) Earnings Per Share - Diluted:                      
(Loss) Earnings Per Share - Diluted: $ 0.18 [3] $ 0.46 [3] $ 0.11 [3] $ 0.23 [3] $ 0.15 [3] $ 0.19 [3] $ 0.04 [3] $ 0.10 [3] $ 0.52 [3] $ 0.19 [3] $ 0.42
[1] The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.
[2] This is a segment financial measure representing segment earnings before certain unallocated corporate and shared costs and credits, goodwill and intangible asset impairment charges, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, restructuring and other costs, gain/loss on disposal of business, income taxes, and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests. See Note 13, "Segment and Geographic Information," in the consolidated financial statements contained in this Item 8.
[3]

Due to the method used in calculating per share data as prescribed by ASC 260, "Earnings Per Share," the quarterly per share data may not total to the full-year per share data.
v3.20.4
Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Financial Data- Additional informattion (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]                    
Goodwill and intangible asset impairments       $ 17,674,000 [1] $ 17,484,000     $ 17,674,000 [1] $ 17,484,000 $ 1,056,000
Arbitration and claim settlements [1]           $ 1,200,000 $ 11,352,000   $ 12,552,000  
Gain (loss) on disposition of businesses, net [1]   $ 14,104,000 $ (341,000)         13,763,000    
Restructuring and other costs, net [1] $ 2,419,000     $ 5,714,000       $ 8,133,000    
[1] The Company recognized non-cash goodwill impairment in the amount of $17.7 million related to its Crawford Claims Solutions segment in the first quarter of 2020. The Company recognized non-cash goodwill impairment of $17.5 million related to its Crawford Claims Solutions reporting unit in the fourth quarter of 2019. See Note 4, "Goodwill and Intangible Assets" in the consolidated financial statements included in this Item 8. The Company recognized a pretax loss for Arbitration and claim settlements of $12.6 million in 2019. The Company recognized a pretax gain of $13.8 million due to the disposal of LWI, net of a loss on the disposal of Crawford Compliance in 2020. See Note 3, "Business Acquisitions and Dispositions" in the consolidated financial statements included in this Item 8. The Company recognized pretax restructuring and other costs in the first and fourth quarters of 2020 totaling $8.1 million. The provision for income taxes in 2020 and 2019 included the impact of these transactions and tax valuation adjustments.