2.0.0.10falseMajor Accounting and Reporting Policies0601 - Disclosure - Major Accounting and Reporting Policiestruefalsefalsefalse1usd$falsefalseSharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli020us-gaap_GeneralPoliciesAbstractus-gaaptruenadurationstringNo definition available.falsefalsefalsefalsefalsetruefalsefalsefalsefalsefalsefalse1falsefalsefalsefalse00falsefalsefalseNo definition available.false31us-gaap_SignificantAccountingPoliciesTextBlockus-gaaptruenadurationstringNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabelfalse1falsefalsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
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<b><font style="font-family: 'Times New Roman', Times">
</font></b>
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
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<b><font style="font-family: 'Times New Roman', Times">1. <font style="font-variant: small-caps">Major
Accounting and Reporting Policies</font></font></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Nature
of Operations and Industry Concentration</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Based in Atlanta, Georgia, Crawford & Company
(<u>www.crawfordandcompany.com</u>) is the world’s largest
independent provider of claims management solutions to the risk
management and insurance industry as well as self-insured
entities, with a global network of more than 700 locations in 63
countries. The Crawford System of Claims
Solutions<sup style="font-size: 85%; vertical-align: top"><font style="font-variant: small-caps">sm</font></sup>
offers comprehensive, integrated claims services, business
process outsourcing and consulting services for major product
lines including property and casualty claims management,
workers’ compensation claims and medical management, and
legal settlement administration. Shares of the Company’s
two classes of common stock are traded on the New York Stock
Exchange under the symbols CRDA and CRDB, respectively.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Principles
of Consolidation</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The accompanying consolidated financial statements were prepared
in accordance with accounting principles generally accepted in
the United States (“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. The financial statements of the
Company’s international subsidiaries, other than those in
Canada and the Caribbean, are included in the Company’s
consolidated financial statements on a two-month delayed basis
(fiscal year-end of October 31) as permitted by GAAP in
order to provide sufficient time for accumulation of their
results.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The Company uses the purchase method of accounting for all
acquisitions where the Company is required to consolidate the
acquired entity into the Company’s financial statements.
Results of operations of acquired businesses are included in the
Company’s consolidated results from the acquisition date.
</div>
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</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
For variable interest entities (“VIE”), the Company
determines when it should include the assets, liabilities, and
results of operations of a VIE in its consolidated financial
statements. The Company consolidates the liabilities of its
deferred compensation plan and the related assets, which are
held in a rabbi trust and considered a VIE of the Company. At
December 31, 2009 and 2008, the liabilities of this
deferred compensation plan were $8,570,000 and $7,621,000,
respectively, and the values of the assets held in the related
rabbi trust were $13,551,000 and $12,985,000, respectively.
These assets and liabilities are included in Other Noncurrent
Assets and Other Noncurrent Liabilities on the Company’s
Consolidated Balance Sheets.
</div>
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</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
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, for both the controlling interests and the
noncontrolling interests. The noncontrolling interests represent
the equity interests (formerly referred to as minority
interests) in these entities that are not attributable, either
directly or indirectly, to the Company. Noncontrolling interests
are reported as a separate component of the Company’s
Shareholders’ Investment. On the Company’s
Consolidated Statements of Operations, net income (or loss) is
attributed to the controlling interests and the noncontrolling
interests separately.
</div>
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<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Accounting
Standards Codification</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
With the issuance of Financial Accounting Standards Board
(“FASB”) Statement No. 168, “The FASB
Accounting Standards Codification (“ASC”) and the
Hierarchy of Generally Accepted Accounting Principles,” the
FASB approved its codification (the “Codification”) as
the single source of authoritative GAAP for nongovernmental
entities in the United States (“U.S.”) for interim and
annual periods ending after September 15, 2009. As a
result, on July 1, 2009, the Company adopted ASC Topic 105,
“Generally Accepted Accounting Principles,” as updated
by Accounting Standards Update (“ASU”)
<font style="white-space: nowrap">No. 2009-1,</font>
“Topic 105-Generally Accepted Accounting Principles,”
to establish the Codification as the Company’s source of
authoritative GAAP. The Codification also considers rules and
interpretive releases of the SEC under authority
of U.S. federal securities laws as additional sources of
authoritative GAAP for SEC registrants. The Codification
superseded all then-existing non-SEC accounting and reporting
standards. However, at its initial effective date of
July 1, 2009, the purpose of the Codification was to
reorganize existing GAAP into a consistent and logical
structure. The Codification did not create new GAAP.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
References to the superseded standards in the Company’s
consolidated financial statements have been replaced by
references to the Codification. In the Codification, ASC
referencing is in the following numerical format: XXX-YY-ZZ-PP,
where XXX represents the Topic number, YY represents the
Subtopic number, ZZ represents the Subsection number, and PP
represents the paragraph number. Subsequent standard-setting
activity will be issued in ASUs, referenced as follows: YYYY-XX,
where YYYY is the year issued and XX represents the sequential
number for each ASU issued in that year. An ASU will serve as a
transient document during the time between issuance of the ASU
and the date the new or revised guidance becomes completely
effective; once effective, the Codification will reflect all
necessary amendments for the new or revised guidance.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
On August 18, 2009, the SEC issued interpretive guidance
FR-80, “Commission Guidance Regarding the Financial
Accounting Standards Board’s Accounting Standards
Codification” (“FR-80”). With the issuance of
FR-80, the SEC formally recognized the FASB’s Codification
as the single source of authoritative U.S. accounting and
reporting standards applicable for all nongovernmental entities,
with the exception of guidance issued by the SEC.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Prior
Year Reclassifications</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Certain prior year amounts have been reclassified to conform to
the current year presentation.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Management’s
Use of Estimates</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
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.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Revenue
Recognition</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The Company’s revenues are primarily comprised of claims
processing or program administration fees and are generated from
the Company’s four operating segments.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The U.S. Property & Casualty segment primarily serves
the U.S. property and casualty insurance company market
with additional services provided to the warranty and inspection
services marketplaces. The International Operations segment
primarily serves the property and casualty insurance company
markets outside of the U.S. The Broadspire segment serves
the U.S. self-insurance marketplace. The Legal Settlement
Administration segment primarily serves the securities,
bankruptcy, and other legal settlement markets.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Both the U.S. Property & Casualty segment and the
International Operations segment earn revenues by providing
field investigation and evaluation of property and casualty
claims for insurance companies. The Company’s Broadspire
segment earns revenues by providing initial loss reporting
services for their claimants, loss mitigation services such as
medical case management and vocational rehabilitation,
administration of trust funds established to pay claims, and
risk management information services. The Legal Settlement
Administration segment earns revenues by providing
administration services related to settlements of securities
cases, product liability cases, Chapter 11 bankruptcy
noticing and distribution, and other legal settlements by
identifying and qualifying class members, determining and
dispensing settlement payments, and administering the settlement
funds.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Fees for professional services are recognized in unbilled
revenues at the time such services are rendered, at estimated
collectible amounts. Substantially all unbilled revenues are
billed within one year.
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<div align="left" style="margin-top: 6pt; margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Deferred revenues represent the estimated unearned portion of
fees derived from certain fixed-rate claim service agreements.
The Company’s fixed-fee service arrangements typically call
for the Company to handle claims on either a one- or two-year
basis, or for the lifetime of the claim. In cases where the
claim is handled on a non-lifetime basis, an additional fee is
typically received on each anniversary date that the claim
remains open. For service arrangements where the Company
provides services for the life of the claim, the Company only
receives one fee for the life of the claim, regardless of the
ultimate duration of the claim. Deferred revenues are recognized
based on the estimated rate at which the services are provided.
These rates are primarily based on a historical evaluation of
actual claim closing rates by major line of coverage.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
In the normal course of business, the Company incurs certain
<font style="white-space: nowrap">out-of-pocket</font>
expenses that are thereafter reimbursed by the Company’s
clients. Under GAAP, these
<font style="white-space: nowrap">out-of-pocket</font>
expenses and associated reimbursements are reported as revenues
and expenses in the Company’s consolidated results of
operations. The amounts of reimbursed expenses and related
revenues offset each other in the Company’s results of
operations with no impact to its net (loss) income.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Intersegment sales are recorded at cost and are not material.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Cash
and Cash Equivalents</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
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, 2009,
time deposits with original maturities of less than three months
totaling approximately $1,425,000 were in financial institutions
outside the United States.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Accounts
Receivable and Allowance for Doubtful Accounts</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
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 within
30 days and are stated on the Company’s Consolidated
Balance Sheets at amounts due from clients net of an estimated
allowance for doubtful accounts. Accounts outstanding longer
than the contractual payment terms are considered past due. The
fair value of accounts receivable approximates carrying value
due to their short-term contractual stipulations.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The Company maintains an allowance for doubtful accounts for
estimated losses resulting primarily from the inability of
clients to make required payments and for adjustments to
invoiced amounts. Losses resulting from the inability of clients
to make required payments 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 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 doubtful accounts for the years ended
December 31, 2009, 2008, and 2007 is as follows:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="71%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="5%" align="right"> </td><!-- colindex=02 type=body -->
<td width="1%" align="left"> </td><!-- colindex=02 type=hang1 -->
<td width="3%"> </td><!-- colindex=03 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=03 type=lead -->
<td width="5%" align="right"> </td><!-- colindex=03 type=body -->
<td width="1%" align="left"> </td><!-- colindex=03 type=hang1 -->
<td width="3%"> </td><!-- colindex=04 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=04 type=lead -->
<td width="5%" align="right"> </td><!-- colindex=04 type=body -->
<td width="1%" align="left"> </td><!-- colindex=04 type=hang1 -->
</tr>
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<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2009</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2008</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2007</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="10" align="center" valign="bottom">
<b>(In thousands)</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Allowance for doubtful accounts, January 1
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>$</b>
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>12,341</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
16,552
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
16,802
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Add/ (Deduct):
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Provision (credit) to bad debt expense
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(189</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(2,126
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
1,299
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Write-offs, net of recoveries
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(701</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(974
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(1,674
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Currency translation and other changes
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>532</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(1,077
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
819
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Adjustments for acquired and disposed businesses
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(34
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(694
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Allowance for doubtful accounts, December 31
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>$</b>
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>11,983</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
12,341
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
16,552
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
</div>
<!-- XBRL Pagebreak Begin -->
</div>
<!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<div style="margin-left: 0%">
<!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<div style="margin-top: 0pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-top: 6pt; margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
For the years ended December 31, 2009, 2008, and 2007, the
Company’s adjustments to revenues associated with client
invoice adjustments totaled $3,151,000, $4,665,000, and
$5,560,000, respectively.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Goodwill,
Indefinite-Lived Intangible Assets, and Other Long-Lived
Assets</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
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 from business
combinations. Indefinite-lived intangible assets consist of
trade names associated with acquired businesses. Other
long-lived assets consist primarily of property and equipment,
deferred income tax assets, capitalized software, and
amortizable intangible assets related to customer relationships
and technology. Goodwill and indefinite-lived intangible assets
are not amortized, but are subject to impairment testing at
least annually.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Subsequent to a business acquisition in which goodwill was
recorded as an asset, post-acquisition accounting requires that
goodwill be tested to determine whether there has been an
impairment loss. 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, indefinite-lived
intangible assets, or other long-lived assets. When factors
indicate that such assets should be evaluated for possible
impairment between the scheduled annual impairment tests, the
Company performs an impairment test. The Company believes its
goodwill, indefinite-lived intangible assets, and other
long-lived assets were appropriately valued and not impaired at
December 31, 2009.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Goodwill impairment testing is a two-step process performed on a
reporting unit basis. In step 1 of the testing process, the fair
value of each reporting unit is determined and compared to its
book value. If the fair value of the reporting unit exceeds its
book value, goodwill is not deemed impaired. If the book value
of the reporting unit exceeds its fair value, the testing
proceeds to step 2. In step 2, the reporting unit’s fair
value is allocated to its assets and liabilities following
acquisition accounting procedures to determine the implied fair
value of goodwill. This hypothetical acquisition accounting
process is applied only for the purpose of determining whether
goodwill must be reduced; it is not used to adjust the book
values of other assets or liabilities. There is an impairment if
(and to the extent) the carrying value of goodwill exceeds its
implied fair value. An impairment loss reduces the recorded
goodwill and cannot subsequently be reversed.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
For step 1 of goodwill impairment testing, the carrying value of
each of the Company’s reporting units is compared to the
estimated fair value of the reporting unit as determined
utilizing an income approach. The income approach 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 Company believes that this approach is
appropriate because it provides a fair value estimate based upon
the reporting unit’s expected long-term operating cash flow
performance. The discount rate used reflects the Company’s
assessment of a market participant’s view of the risks
associated with the projected cash flows. Other significant
assumptions include terminal value growth rates, terminal value
margin rates, future capital expenditures and changes in future
working capital requirements. While there are inherent
uncertainties related to these assumptions used and to
management’s application of these assumptions, the Company
believes that the income approach provides a reasonable estimate
of the fair value of its reporting units.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
For impairment testing of indefinite-lived intangible assets,
the carrying value is compared to the fair value, which
represents the present value of the incremental after-tax cash
flows (excess earnings) attributable solely to the asset over
its estimated remaining useful life. Long-lived assets are
tested at an asset or asset group level that is determined to be
the lowest level for which identifiable cash flows are largely
independent of the cash flows of other groups of assets and
liabilities.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The Company’s four operating segments are deemed to be
reporting units because the components of each operating segment
have similar economic characteristics. If changes to the
Company’s reporting structure impact the composition of the
Company’s reporting units, existing goodwill is reallocated
to the revised reporting units based on their relative fair
market values as determined by a discounted cash flow analysis.
If all of the assets and liabilities of an acquired business are
assigned to a specific reporting unit, then 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.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Property
and Equipment</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Property and equipment are stated at cost less accumulated
depreciation. Property and equipment, including assets under
capital leases, consisted of the following at December 31,
2009 and 2008:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="78%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="7%" align="right"> </td><!-- colindex=02 type=body -->
<td width="1%" align="left"> </td><!-- colindex=02 type=hang1 -->
<td width="3%"> </td><!-- colindex=03 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=03 type=lead -->
<td width="6%" align="right"> </td><!-- colindex=03 type=body -->
<td width="1%" align="left"> </td><!-- colindex=03 type=hang1 -->
</tr>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2009</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2008</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="6" align="center" valign="bottom">
<b>(In thousands)</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Land
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>$</b>
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>603</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
545
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Buildings and improvements
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>27,842</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
26,302
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Furniture and fixtures
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>51,723</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
49,819
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Data processing equipment
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>61,003</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
60,523
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Automobiles and other
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>3,083</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
3,210
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 20pt">
Total property and equipment
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>144,254</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
140,399
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Less accumulated depreciation
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(102,108</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(95,785
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 20pt">
Net property and equipment
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>$</b>
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>42,146</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
44,614
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Additions to property and equipment under capital leases totaled
$81,000, $208,000, and $328,000 for 2009, 2008, and 2007,
respectively. Additions to property and equipment that were
funded directly by lessors totaled $100,000 and $4,921,000 for
2009 and 2007, respectively. There were no such additions in
2008.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The Company depreciates the cost of property and equipment,
including assets recorded under capital 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:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="79%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="9%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="1%" align="right"> </td><!-- colindex=02 type=body -->
<td width="9%" align="left"> </td><!-- colindex=02 type=hang1 -->
</tr>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
<b>Classification</b>
</div>
</td>
<td>
 
</td>
<td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>Estimated Useful Lives</b>
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Furniture and fixtures
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
3-10 years
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Data processing equipment
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
3-5 years
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Automobiles
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
3-4 years
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Buildings and improvements
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
7-40 years
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Depreciation on property and equipment, including property under
capital leases and amortization of leasehold improvements, was
$14,433,000, $14,992,000, and $14,081,000 for the years ended
December 31, 2009, 2008, and 2007, respectively.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Capitalized
Software</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Capitalized software reflects costs related to internally
developed or purchased software used by the Company that has
future economic benefits. Certain internal and external costs
incurred during the application stage of development 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 consists of internal payroll costs
and external payments for software purchases and related
services. These capitalized software costs are amortized over
periods ranging from three to ten years, depending on the
estimated life of each software application. At least annually,
the Company evaluates capitalized software for impairment.
Amortization expense for capitalized software was $10,144,000,
$8,875,000, and $9,165,000 for the years ended December 31,
2009, 2008, and 2007, respectively.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Self-Insured
Risks</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The Company self insures certain insurable risks consisting
primarily of professional liability, auto liability, 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, 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 payment 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 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, 2009 and 2008, accrued
liabilities for self-insured risks totaled $33,299,000 and
$36,470,000, respectively, including current liabilities of
$18,475,000 and $17,939,000, respectively.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Defined
Benefit Pensions and Other Retirement Plans</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
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. A fixed number of
U.S. employees, retirees, and eligible dependents are
covered under a frozen post-retirement medical benefits plan in
the U.S. In addition, the Company sponsors nonqualified,
unfunded defined benefit pension plans for certain employees and
retirees.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The Company sponsors defined benefit pension plans in the
U.S. and U.K. Effective December 31, 2002, the Company
elected to freeze its U.S. defined benefit pension plan.
The Company’s U.K. defined benefit pension plans have also
been closed for new employees, but existing participants may
still accrue additional limited benefits based on salary amounts
in effect at the time the plan was closed.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Effective December 31, 2006, the Company adopted new
accounting guidance for the recognition and disclosure of
defined benefit pension and other postretirement plans. This
guidance requires sponsors of defined benefit pension and other
postretirement benefit plans (collectively, “postretirement
benefit plans”) to recognize the funded status of their
postretirement benefit plans in the balance sheet, measure the
fair value of plan assets and benefit obligations as of the date
of the balance sheet, and provide additional disclosures. As
permitted by the new guidance, the Company’s adoption was
in two phases. On December 31, 2006, the Company adopted
the first phase, the recognition and disclosure provisions. The
requirement to measure the fair value of plan assets and benefit
obligations as of the most recent balance sheet date, the second
phase, was effective for the Company on January 1, 2008.
Prior to 2008, the Company’s frozen U.S. defined
benefit retirement plans as well as its frozen U.S. retiree
medical benefit plan used a September 30 annual measurement
date. Under the new guidance, the September 30 early measurement
date can no longer be used and the Company became required to
instead use December 31 as its year-end measurement date
beginning in 2008. The Company’s United Kingdom
(“U.K.”) and other international defined benefit plans
already used a fiscal year-end measurement date, and thus no
measurement date changes were needed for the
<font style="white-space: nowrap">non-U.S. plans.</font>
The new guidance provided entities with two alternatives to
transition to a fiscal year-end measurement date. The Company
selected the alternative that allowed it to use the existing
early measurement date of September 30, 2007 to compute net
benefit costs for the period between October 1, 2007 and
December 31, 2008 (the
<font style="white-space: nowrap">“15-month</font>
alternative”). Net periodic benefit costs under the
<font style="white-space: nowrap">15-month</font>
period alternative were a net credit of $711,000 before income
taxes for the Company’s U.S. defined benefit pension
plan and its frozen U.S. retiree medical benefit plan.
Eighty percent of this net periodic benefit expense credit, or
approximately $569,000 credit before income taxes, was
recognized in the Company’s Consolidated Statement of
Income as a periodic benefit cost reduction during 2008. The
remaining 20% of the benefit credit, or approximately $94,000
credit after income taxes, was credited to the Company’s
beginning retained earnings on January 1, 2008. The 2008
adoption of the second phase of the new guidance resulted in a
credit of $769,000, or approximately $492,000 net of income
taxes, to the Company’s Accumulated Other Comprehensive
Loss.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
External trusts are maintained to hold assets of the
Company’s defined benefit pension plans in the
U.S. and U.K. The Company’s funding policy is to make
cash contributions in amounts sufficient to meet regulatory
funding requirements. Assets of the plans are measured at fair
value at the end of each reporting
period, but the plan assets are not recorded on the
Company’s Consolidated Balance Sheet. Instead, the funded
or unfunded status of the Company’s defined benefit pension
plans are recorded on the Company’s Consolidated Balance
Sheet based on the projected benefit obligations less the fair
values of the plans’ assets. See Note 9,
“Retirement Plans.”
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Income
Taxes</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
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 revenue recognition, accrued compensation, pension plans,
self-insurance, and depreciation and amortization.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
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.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Other factors which influence the effective tax rate used for
financial reporting purposes include changes in enacted
statutory tax rates, changes in the composition of taxable
income from the countries in which the Company operates, the
ability of the Company to utilize net operating loss
carryforwards, and the Company’s accounting for any
uncertain tax positions. See Note 8, “Income
Taxes.”
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Effective January 1, 2007, the Company adopted new
accounting guidance issued by the FASB to create a single model
to address accounting for uncertainty in tax positions. The new
guidance clarifies the accounting for income taxes by
prescribing a minimum recognition threshold that a tax position
must meet before being recognized in the financial statements.
The new guidance also provides guidance on derecognition,
measurement, classification, interest and penalties, accounting
in interim periods, disclosure, and transition. The adoption of
the new guidance resulted in a $214,000 charge to the
Company’s retained earnings on January 1, 2007.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Sales
and Other Taxes Assessed by Governments</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
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. The Company records these government-imposed taxes on
a net basis with amounts collected related to these pass-through
taxes recorded as balance sheet transactions.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Net
(Loss) Income Attributable to Crawford & Company per
Common Share</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Both classes of the Company’s common stock, Common Stock
Class A (“CRDA”) and Common Stock Class B
(“CRDB”), share equally in the Company’s earnings
for purposes of computing earnings per share (“EPS”).
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Basic EPS is computed based on the weighted-average number of
total common shares outstanding during the respective period,
including nonvested shares of issued restricted stock that are
entitled to receive dividends should any dividends be declared.
Diluted EPS is computed under the “treasury stock”
method based on the weighted-average number of total common
shares outstanding, including nonvested shares of restricted
stock that are entitled to receive dividends should any
dividends be declared, plus the dilutive effect of: outstanding
stock options, estimated shares issuable under employee stock
purchase plans, and nonvested shares under the Company’s
Executive Stock Bonus Plan that vest based on service conditions
or on performance conditions that have been achieved.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The computations of basic and diluted net (loss) income
attributable to Crawford & Company per common share,
after giving effect to the adoption of ASC
<font style="white-space: nowrap">260-10-45-60,</font>
“Earnings Per Share-Overall-Other Presentation
Matters,” were as follows for the years ended
December 31, 2009, 2008, and 2007:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="69%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="7%" align="right"> </td><!-- colindex=02 type=body -->
<td width="1%" align="left"> </td><!-- colindex=02 type=hang1 -->
<td width="3%"> </td><!-- colindex=03 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=03 type=lead -->
<td width="5%" align="right"> </td><!-- colindex=03 type=body -->
<td width="1%" align="left"> </td><!-- colindex=03 type=hang1 -->
<td width="3%"> </td><!-- colindex=04 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=04 type=lead -->
<td width="5%" align="right"> </td><!-- colindex=04 type=body -->
<td width="1%" align="left"> </td><!-- colindex=04 type=hang1 -->
</tr>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2009</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2008</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2007</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="10" nowrap="nowrap" align="center" valign="bottom">
<b>In thousands, except (loss)<br />
</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="10" nowrap="nowrap" align="center" valign="bottom">
<b>earnings per share</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Net (loss) income attributable to Crawford & Company
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>$</b>
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(115,683</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
32,259
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
16,116
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Weighted average common shares used to compute basic (loss)
earnings per share
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>51,830</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
50,958
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
50,532
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Dilutive effects of stock-based compensation plans
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>(a)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
1,384
</td>
<td nowrap="nowrap" align="left" valign="bottom">
(b)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
127
</td>
<td nowrap="nowrap" align="left" valign="bottom">
(c)
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 20pt">
Weighted-average common share equivalents used to compute
diluted (loss) earnings per share
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>51,830</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
52,342
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
50,659
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Basic (loss) earnings per share
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>$</b>
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(2.23</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
0.63
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
0.32
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
<b>Diluted (loss) earnings per share</b>
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b> $</b>
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(2.23</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
0.62
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
0.32
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000">
</div>
<div style="margin-top: 3pt; font-size: 1pt"> 
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left">
<tr>
<td width="2%"></td>
<td width="1%"></td>
<td width="97%"></td>
</tr>
<tr>
<td align="right" valign="top">
(a) </td>
<td></td>
<td valign="bottom">
For the year ended December 31, 2009, the Company excluded
from its loss per share calculations all common share
equivalents because their inclusion would have been
anti-dilutive. The weighted-average number of these common share
equivalents for the year ended December 31, 2009 totaled
approximately 842,000 shares. These common share
equivalents excluded weighted-average stock options of
approximately 2,496,000, because their inclusion would have been
anti-dilutive based on the average price of CRDA during 2009.</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> </td>
</tr>
<tr>
<td align="right" valign="top">
(b) </td>
<td></td>
<td valign="bottom">
Weighted-average outstanding stock options to purchase
approximately 1,944,000 shares of CRDA were excluded from
the computations of diluted EPS for the year ended
December 31, 2008, because their inclusion would have been
antidilutive based on the average price of CRDA during 2008.</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> </td>
</tr>
<tr>
<td align="right" valign="top">
(c) </td>
<td></td>
<td valign="bottom">
Weighted-average outstanding stock options to purchase
approximately 2,494,000 shares of CRDA were excluded from
the computations of diluted EPS for the year ended
December 31, 2007, because their inclusion would have been
antidilutive based on the average price of CRDA during 2007.</td>
</tr>
</table>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Foreign
Currency</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Realized net gains from foreign currency transactions totaled
$2,011,000, $2,046,000, and $508,000 for the years ended
December 31, 2009, 2008, and 2007, respectively.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
For operations outside the U.S. that prepare financial
statements in currencies other than the U.S. dollar,
results from operations and cash flows are translated into
U.S. dollars at average exchange rates during the period,
and assets and liabilities are translated at
<font style="white-space: nowrap">end-of-period</font>
exchange rates. The resulting translation adjustments are
included in comprehensive income (loss) in the Company’s
Consolidated Statements of Shareholders’ Investment,
Noncontrolling Interest, and Comprehensive Income (Loss), and
the accumulated translation adjustment is reported as a
component of accumulated other comprehensive loss in the
Company’s Consolidated Balance Sheets.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Comprehensive
Income (Loss) and Accumulated Other Comprehensive
Loss</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Comprehensive income (loss) for the Company consists of the
total of net income, foreign currency translations, the
effective portions of the Company’s interest rate swaps,
and accrued pension and retiree medical liability adjustments.
The Company reports comprehensive income (loss), net of income
taxes, in the Consolidated Statements of Shareholders’
Investment, Noncontrolling Interests, and Comprehensive Income
(Loss). Ending accumulated balances for each item in accumulated
other comprehensive loss included in the
Company’s Consolidated Balance Sheet and Consolidated
Statements of Shareholders’ Investment, Noncontrolling
Interests, and Comprehensive Income (Loss) were as follows:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="65%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="7%" align="right"> </td><!-- colindex=02 type=body -->
<td width="1%" align="left"> </td><!-- colindex=02 type=hang1 -->
<td width="3%"> </td><!-- colindex=03 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=03 type=lead -->
<td width="7%" align="right"> </td><!-- colindex=03 type=body -->
<td width="1%" align="left"> </td><!-- colindex=03 type=hang1 -->
<td width="3%"> </td><!-- colindex=04 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=04 type=lead -->
<td width="7%" align="right"> </td><!-- colindex=04 type=body -->
<td width="1%" align="left"> </td><!-- colindex=04 type=hang1 -->
</tr>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2009</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2008</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2007</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="10" align="center" valign="bottom">
<b>(In thousands)</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Adjustments to retirement liabilities
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>$</b>
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(263,438</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(228,235
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)*
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(102,112
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 20pt">
Tax benefit on retirement liabilities adjustments
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>93,025</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
84,343
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
38,367
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Adjustments to retirement liabilities, net of tax
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(170,413</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(143,892
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)*
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(63,745
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Effective portions of interest rate swaps, net of tax
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(1,354</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(3,285
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(2,463
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Foreign currency translation adjustments
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>6,364</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(10,980
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
26,941
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Total accumulated other comprehensive loss
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>$</b>
</td>
<td nowrap="nowrap" align="right" valign="bottom">
<b>(165,403</b>
</td>
<td nowrap="nowrap" align="left" valign="bottom">
<b>)</b>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(158,157
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(39,267
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000">
</div>
<div style="margin-top: 3pt; font-size: 1pt"> 
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left">
<tr>
<td width="2%"></td>
<td width="1%"></td>
<td width="97%"></td>
</tr>
<tr>
<td align="right" valign="top">
* </td>
<td></td>
<td valign="bottom">
Includes adjustment of $769,000, net of $492,000 after income
tax, relating to the second phase adoption of new accounting
guidance. See Note 9, “Retirement Plans.”</td>
</tr>
</table>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Stock-Based
Compensation</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Effective January 1, 2006, the Company adopted the fair
value recognition guidance issued by the FASB for share-based
payments, using the modified-prospective-transition method.
Under that transition method, compensation cost recognized in
2009, 2008, and 2007 included: (a) compensation cost for
all share-based payments granted prior to, but not yet vested,
as of January 1, 2006, based on the grant-date fair value,
and (b) compensation cost for all share-based payments
granted subsequent to January 1, 2006, based on the
grant-date fair value. Under the modified-prospective-transition
method, results for prior periods have not been restated. The
guidance requires the cash flows related to any tax benefits
resulting from tax deductions in excess of the compensation cost
recognized for stock-based awards (excess tax benefits) to be
classified as financing cash flows. During the years ended
December 31, 2009, 2008, and 2007, the Company recognized
no such excess tax benefits.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Advertising
Costs</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
Advertising costs are expensed in the period in which the costs
are incurred. Advertising expenses were $3,121,000, $3,532,000,
and $3,275,000, respectively, for the years ended
December 31, 2009, 2008, and 2007.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: 'Times New Roman', Times">Adoption
of New Accounting Standards</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
The Company’s adoption of any other new accounting
standards not previously discussed in this Note 1 is
presented below.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: 'Times New Roman', Times">Expanded
Disclosure for Derivative Instruments and Hedging
Activities</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff">
On January 1, 2009, the Company adopted ASC
<font style="white-space: nowrap">815-10-50,</font>
“Derivatives and Hedging-Overall-Disclosure,” which
requires expanded disclosures about an entity’s derivative
instruments and hedging activities, including requirements that
interim financial statements include certain disclosures for
derivative instruments. ASC
<font style="white-space: nowrap">815-10-50</font>
did not change any accounting requirements, but instead relates
only to disclosures. Since this new guidance relates only to
disclosures, its adoption did not have any impact on the
Company’s results of operations, financial condition, or
cash flows. See Note 5 “Interest Rate Swap
Agreements” and Note 6 “Fair Value.”
</div>
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</div>
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<i><font style="font-family: 'Times New Roman', Times">Noncontrolling
Interests in Consolidated Financial Statements</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
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On January 1, 2009, the Company adopted ASC
<font style="white-space: nowrap">810-10-65-1,</font>
“Consolidation-Overall-Transition and Open Effective Date
Information,” which revised the classification of
noncontrolling interests in consolidated statements of financial
position and the accounting for and reporting of transactions
between the reporting entity and holders of such noncontrolling
interests. Under this new guidance, noncontrolling interests are
considered equity and the practice of classifying minority
interests within a mezzanine section of the balance sheet was
eliminated. Net (loss) income encompasses the total (loss)
income of all consolidated subsidiaries and there is separate
disclosure on the face of the statement of operations of the
attribution of that (loss) income between the controlling and
noncontrolling interests. Increases and decreases in the
noncontrolling ownership interest amounts are accounted for as
equity transactions. Any future issuance of noncontrolling
interests that causes the controlling interest to lose control
and deconsolidate a subsidiary will be accounted for by full
gain or loss recognition. Upon adoption, ASC
<font style="white-space: nowrap">810-10-65-1</font>
was applied retroactively to all previous financial statements
and increased Shareholders’ Investment on January 1,
2009 by $4,808,000. The adoption of ASC
<font style="white-space: nowrap">810-10-65-1</font>
was not material to the Company’s results of operations or
cash flows.
</div>
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</div>
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<i><font style="font-family: 'Times New Roman', Times">Business
Combinations</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
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On January 1, 2009, the Company adopted ASC 805,
“Business Combinations.” ASC 805 changed many
well-established business combination accounting practices and
significantly affected how acquisition transactions are
reflected in the financial statements. ASC 805 changed the
accounting treatment for certain acquisition-related activities
that occur after its adoption including (a) recording
contingent consideration at the acquisition date at fair value,
(b) expensing acquisition-related costs as incurred, and
(c) expensing restructuring costs associated with the
acquired business. ASC 805 also introduced certain new
disclosure requirements. Since ASC 805 uses an expanded
definition of a business, the Company was required to evaluate
its reporting units at adoption. The adoption of ASC 805 did not
have an impact on the Company’s consolidated financial
statements. However, it could have a significant impact on the
accounting for any future acquisitions.
</div>
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</div>
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<i><font style="font-family: 'Times New Roman', Times">Share-Based
Payments As Participating Securities for EPS
Calculations</font></i>
</div>
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</div>
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On January 1, 2009, the Company adopted ASC
<font style="white-space: nowrap">260-10-45-60,</font>
“Earnings Per Share-Overall-Other Presentation
Matters.” Under this guidance, unvested share-based payment
awards that contain nonforfeitable rights to dividends or
dividend equivalents (whether paid or unpaid) are considered
participating securities, and as such they are included in the
computation of basic earnings per share (“EPS”) using
the two-class method. Upon adoption, all prior-period EPS data
were adjusted retrospectively to conform to the provisions of
ASC
<font style="white-space: nowrap">260-10-45-60.</font>
The Company’s grants of restricted shares of its
Class A Common Stock made under its Executive Stock Bonus
Plan provide for the payment of nonforfeitable dividends, should
any be declared and paid by the Company, during any vesting
period for the restricted stock grants. As such, these unvested
restricted stock grants are now considered participating
securities and thus the two-class method of computing EPS
applies to the Company upon adoption of the new guidance. The
impact of ASC
<font style="white-space: nowrap">260-10-45-60</font>
on the Company’s basic and diluted EPS calculations for any
time period depends upon the number of unvested restricted stock
grants outstanding for the period. The adoption of this new
guidance reduced basic EPS by $0.01 for the year ended
December 31, 2008. For the year ended December 2007,
retroactive adoption of this new guidance did not change EPS
amounts from those originally reported before the adoption.
</div>
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</div>
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<i><font style="font-family: 'Times New Roman', Times">Subsequent
Events</font></i>
</div>
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</div>
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On June 30, 2009, the Company adopted ASC 855,
“Subsequent Events.” ASC 855 provides authoritative
accounting and disclosure guidance for events occurring
subsequent to the financial statement date. Prior to ASC 855,
this subject was only addressed in the U.S. by existing
auditing standards. The guidance in ASC 855 is similar to the
existing guidance found in the auditing standards with some
exceptions that are not intended to result in significant
changes in the accounting and disclosure for subsequent events.
</div>
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</div>
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<i><font style="font-family: 'Times New Roman', Times">Measuring
Liabilities at Fair Value</font></i>
</div>
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</div>
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On August 28, 2009, ASU
<font style="white-space: nowrap">2009-05</font> was
issued by the FASB. ASU
<font style="white-space: nowrap">2009-05</font>
amended ASC
<font style="white-space: nowrap">820-10,</font>
“Fair Value Measurements and Disclosures-Overall,” by
providing additional guidance clarifying the measurement of
liabilities at fair value. When a quoted price in an active
market for the identical liability is not available, the
amendments in ASU
<font style="white-space: nowrap">2009-05</font>
require that the fair value of a liability be measured using one
or more of the listed valuation techniques that should maximize
the use of relevant observable inputs and minimize the use of
unobservable inputs. In addition, the amendments in ASU
<font style="white-space: nowrap">2009-05</font>
clarify that when estimating the fair value of a liability, an
entity is not required to include a separate input or adjustment
to other inputs for the
existence of a restriction that prevents the transfer of the
liability. The Company adopted the provisions of ASU
<font style="white-space: nowrap">2009-05</font> on
October 1, 2009. Its adoption did not have a material
impact on the Company’s financial condition, results of
operations, or cash flows.
</div>
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</div>
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<i><font style="font-family: 'Times New Roman', Times">Employers’
Disclosures About Postretirement Benefit Plan Assets</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
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ASC
<font style="white-space: nowrap">715-10-50,</font>
“Compensation-Retirement Benefits,” requires
additional disclosures about assets held in an employer’s
defined benefit pension or other postretirement plan. ASC
<font style="white-space: nowrap">715-10-50</font>
replaces many of the disclosures currently required under GAAP
and requires disclosure of the fair value of each major asset
category. Disclosure is also required for the level within the
fair value hierarchy of each major category of plan assets,
using the guidance in ASC Topic 820, “Fair Value
Measurements and Disclosures.” Employers are required to
reconcile the beginning and ending balances of plan assets with
fair values measured using significant unobservable inputs
(Level 3), separately presenting changes during the period
attributable to a) actual return on plan assets,
b) purchases, sales, and settlements (net), and
c) transfers in and out of Level 3, if any. ASC
<font style="white-space: nowrap">715-10-50</font> is
effective beginning with the Company’s December 31,
2009 annual disclosures related to its defined benefit pension
plans. The Company’s other postretirement plans are not
funded, thus the disclosure provisions of ASC
<font style="white-space: nowrap">715-10-50</font> do
not apply to those plans. Since ASC
<font style="white-space: nowrap">715-10-50</font>
relates only to disclosures, its adoption did not have an impact
on the Company’s results of operations, financial
condition, or cash flows. See Note 9, “Retirement
Plans.”
</div>
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<b><i><font style="font-family: 'Times New Roman', Times">Pending
Adoption of New Accounting Standards</font></i></b>
</div>
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</div>
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<i><font style="font-family: 'Times New Roman', Times">Multiple-Deliverable
Revenue Arrangements</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
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On October 7, 2009, the FASB issued ASU
<font style="white-space: nowrap">2009-13,</font>
which will supersede certain guidance in ASC
<font style="white-space: nowrap">605-25,</font>
“Revenue Recognition-Multiple Element Arrangements,”
and will require an entity to allocate arrangement consideration
to all of its deliverables at the inception of an arrangement
based on their relative selling prices (i.e., the
relative-selling-price method). The use of the residual method
of allocation will no longer be permitted in circumstances in
which an entity recognized revenue for an arrangement with
multiple deliverables subject to ASC
<font style="white-space: nowrap">605-25.</font> ASU
<font style="white-space: nowrap">2009-13</font> will
also require additional disclosures. The Company will adopt the
provisions of ASU
<font style="white-space: nowrap">2009-13</font> on
January 1, 2011. Based on the Company’s current
revenue arrangements, the adoption of ASU
<font style="white-space: nowrap">2009-13</font> is
not expected to have a material impact on the Company’s
financial condition, results of operations, or cash flows.
</div>
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<i><font style="font-family: 'Times New Roman', Times">Variable
Interest Entities</font></i>
</div>
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</div>
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On June 12, 2009, the FASB issued ASU
<font style="white-space: nowrap">2009-17,</font>
which amends ASC 810, “Consolidations” and other
related guidance. ASU
<font style="white-space: nowrap">2009-17</font> will
make certain changes to the guidance used to determine when an
entity should consolidate a variable interest entity in its
consolidated financial statements. ASU
<font style="white-space: nowrap">2009-17</font> is
effective for the Company on January 1, 2010. Based on the
current status of the entities that are evaluated under existing
guidance for consolidation in the Company’s consolidated
financial statements, the Company does not expect the adoption
of ASU
<font style="white-space: nowrap">2009-17</font> to
have a material impact on its results of operations, financial
condition, or cash flows.
</div>
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</div>
</div>
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