Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

10. Segment Information

Financial information for the three and six months ended June 30, 2021 and 2020 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below:

	Three Months Ended						Six Months Ended
(in thousands)	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Revenues:
Crawford Loss Adjusting	$	115,956		$	109,062		$	228,493		$	216,166
Crawford TPA Solutions		100,374			88,668			198,619			186,665
Crawford Platform Solutions		51,127			36,686			93,526			69,116
Total segment revenues before reimbursements		267,457			234,416			520,638			471,947
Reimbursements		9,088			8,459			18,062			16,974
Total revenues	$	276,545		$	242,875		$	538,700		$	488,921
Segment Operating Earnings
Crawford Loss Adjusting	$	6,199		$	10,043		$	11,061		$	10,715
Crawford TPA Solutions		4,715			3,122			9,431			9,420
Crawford Platform Solutions		10,368			7,145			14,969			10,284
Total segment operating earnings		21,282			20,310			35,461			30,419
Deduct:
Unallocated corporate and shared costs, net		(1,662	)		(2,066	)		(2,815	)		(5,162	)
Net corporate interest expense		(1,213	)		(2,452	)		(2,795	)		(4,676	)
Stock option expense		(264	)		(286	)		(404	)		(576	)
Amortization of customer-relationship intangible assets		(2,750	)		(2,732	)		(5,549	)		(5,488	)
Goodwill impairment		—			—			—			(17,674	)
Restructuring costs		—			—			—			(5,714	)
Loss on disposition of business		—			(341	)		—			(341	)
Income (loss) before income taxes	$	15,393		$	12,433		$	23,898		$	(9,212	)

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

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

Intersegment transactions are not material for any period presented.

As of January 1, 2021, the Company realigned its operating segment manager responsibilities and reorganized its global service line structure to consist of Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. The Company's revised reportable segments are comprised of the following:

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

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

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

The Crawford Loss Adjusting and Crawford TPA Solutions reportable segments represent the aggregation of certain geographic operating segments within those service lines.

Revenues before reimbursements by major service line in the Crawford TPA Solutions segment, which operates under the Broadspire brand globally, and the Crawford Platform Solutions segment are shown in the following table. The Company considers all Crawford Loss Adjusting revenues to be derived from one service line.

	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Crawford TPA Solutions
Claims Management Services	$	62,024	$	54,093	$	124,143	$	110,021
Medical Management Services		38,350		34,575		74,476		76,644
Total Revenues before Reimbursements--Crawford TPA Solutions	$	100,374	$	88,668	$	198,619	$	186,665
Crawford Platform Solutions
Contractor Connection	$	24,443	$	20,748	$	45,425	$	39,786
Network Business		26,684		15,938		48,101		29,330
Total Revenues before Reimbursements--Crawford Platform Solutions	$	51,127	$	36,686	$	93,526	$	69,116