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, and prior to the Garden City Group disposal on June 15, 2018, the class action, regulatory, mass tort, bankruptcy, and other legal settlement markets, primarily in the U.S. and Canada. 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 operating 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 impairment charges, restructuring and special charges, loss on disposition of business line, arbitration and claim settlements, income taxes, and net income or loss attributable to noncontrolling interests and redeemable noncontrolling interests.

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

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, 2019, 2018, and 2017 related to the Company's reportable segments is presented below.



	Crawford Claims Solutions		Crawford TPA Solutions		Crawford Specialty Solutions		Total

2019
Revenues before reimbursements	$	339,837	$	393,856	$	272,109	$	1,005,802
Segment operating earnings	7,630		27,173		49,321		84,124
Depreciation and amortization ⁽¹⁾	2,461		10,152		1,811		14,424
Assets ⁽²⁾	136,451		85,810		165,575		387,836
2018
Revenues before reimbursements	$	361,053	$	405,335	$	304,583	$	1,070,971
Segment operating earnings	11,308		36,909		49,564		97,781
Depreciation and amortization ⁽¹⁾	3,485		9,844		3,517		16,846
Assets ⁽²⁾	163,899		92,007		165,415		421,321
2017
Revenues before reimbursements	$	365,058	$	390,583	$	350,191	$	1,105,832
Segment operating earnings	18,541		38,224		52,404		109,169
Depreciation and amortization ⁽¹⁾	4,039		9,924		5,629		19,592
Assets ⁽²⁾	174,559		91,101		211,320		476,980

______________________


⁽¹⁾	Excludes amortization expense of finite-lived customer relationships and trade name intangible assets.


⁽²⁾	Consists of accounts receivable, less allowance for doubtful accounts, unbilled revenues, at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net.

During 2019, the Company realigned certain operations within Canada from the Crawford Claims Solutions segment to the Crawford Specialty Solutions segment to be consistent with current operating segment responsibilities. Previously reported amounts have been reclassified to reflect these changes. No other changes in operating responsibilities occurred. These transfers are not material to the Company's financial statements.

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, 2019, 2018, and 2017 are shown in the following table:



Year Ended December 31,	2019		2018		2017
	(In thousands)
Crawford Claims Solutions	$	1,396	$	3,811	$	1,155
Crawford TPA Solutions	3,259		5,947		4,136
Crawford Specialty Solutions	458		2,148		11,689
Corporate	16,011		18,114		27,931
Total capital expenditures	$	21,124	$	30,020	$	44,911

The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the years ended December 31, 2019, 2018, and 2017 was as follows:



Year Ended December 31,	2019		2018		2017
	(In thousands)
Segments' revenues before reimbursements	$	1,005,802	$	1,070,971	$	1,105,832
Reimbursements	41,825		52,008		57,877
Total consolidated revenues	$	1,047,627	$	1,122,979	$	1,163,709

The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the years ended December 31, 2019, 2018, and 2017 were as follows:



Year Ended December 31,	2019			2018			2017
	(In thousands)
Operating earnings of all reportable segments	$	84,124		$	97,781		$	109,169
Unallocated corporate and shared costs and credits	(6,515		)	(9,321		)	(13,463		)
Net corporate interest expense	(10,774		)	(10,109		)	(9,062		)
Stock option expense	(1,885		)	(1,742		)	(1,718		)
Amortization of acquisition-related intangible assets	(11,277		)	(11,152		)	(10,982		)
Goodwill and intangible asset impairment charges	(17,484		)	(1,056		)	(19,598		)
Arbitration and claim settlements	(12,552		)	—			—
Restructuring and special charges	—			—			(12,084		)
Loss on disposition of business line	—			(20,270		)	—
Income before income taxes	$	23,637		$	44,131		$	42,262

The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at December 31, 2019 and 2018 are presented in the following table:



December 31,	2019		2018
	(In thousands)
Assets of reportable segments	$	387,836	$	421,321
Corporate assets:
Cash and cash equivalents	51,802		53,119
Income taxes receivable	7,820		4,084
Prepaid expenses and other current assets	23,476		24,237
Net property and equipment	31,425		34,303
Operating lease right-of-use asset, net	102,354		—
Capitalized software costs, net	66,445		72,210
Deferred income tax assets	17,971		22,146
Other noncurrent assets	70,884		70,022
Total corporate assets	372,177		280,121
Total assets	$	760,013	$	701,442

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, including goodwill.



	U.S.		U.K.		Canada		All Other International		Total Company
			(In thousands)
2019
Revenues before reimbursements	$	569,205	$	126,337	$	114,438	$	195,822	$	1,005,802
Long-lived assets	140,560		20,749		17,999		20,916		200,224
2018
Revenues before reimbursements	615,687		131,651		121,076		202,557		1,070,971
Long-lived assets	88,157		7,631		7,553		3,172		106,513
2017
Revenues before reimbursements	653,693		139,338		110,962		201,839		1,105,832
Long-lived assets	111,688		7,747		8,771		3,282		131,488