Revenue Segments - North America Loss Adjusting segment accounted for 23.1% of the Company's revenues before reimbursements in 2022[24] - International Operations segment accounted for 30.0% of the Company's revenues before reimbursements in 2022[27] - Broadspire segment accounted for 26.4% of the Company's revenues before reimbursements in 2022[29] - Platform Solutions segment accounted for 20.5% of the Company's revenues before reimbursements in 2022[31] - Revenues from international operations accounted for 38.3%, 40.2%, and 41.9% of consolidated revenues before reimbursements for 2022, 2021, and 2020, respectively[164] - Total International Operations Revenues before Reimbursements amounted to $357,452 thousand in 2022, slightly down from $357,909 thousand in 2021, representing a decrease of approximately 0.13%[219] - The International Loss Adjusting segment generated $335,575 thousand in revenue for 2022, compared to $331,110 thousand in 2021, indicating a growth of about 1.4%[219] Employee and Workforce - The Company operates in 70 countries with approximately 10,400 employees, of which 92% are full-time[39] - Women comprise 56% of the global workforce, with 29% in country-president roles and 28% in senior management[39] - The Company emphasizes employee wellness with comprehensive benefit programs, including fitness challenges and telemedicine services[42] - The Company received high scores in employee engagement, with 88% believing they do not face bias due to personal identity[46] Financial Performance - Consolidated revenues before reimbursements were $1.189 billion in 2022, an increase of 7.9% compared to $1.102 billion in 2021[140] - Net loss attributable to Crawford & Company was $(18.3) million in 2022, compared to net income of $30.7 million in 2021[140] - U.S. revenues increased by 23.5% to $158.5 million in 2021, driven by weather-related cases and new client growth[83] - Canadian revenues decreased by 4.4% to $85.3 million in 2021, primarily due to the pandemic's negative economic impact[84] - Total North America Loss Adjusting revenues rose by 12.0% to $243.8 million in 2021[83] - International Operations segment revenues increased by 11.0% to $357.9 million in 2021, with a 7.7% boost from foreign exchange rates[89] Expenses and Liabilities - Corporate interest expense totaled $11.0 million in 2022, up from $7.0 million in 2021, with a weighted average interest rate of 3.3%[100] - The estimated liabilities for self-insured risks totaled $24.3 million as of December 31, 2022, down from $26.2 million in 2021, with a sensitivity of approximately $0.4 million for a 1.0% change in the discount rate[162] - The accrued liabilities for self-insured risks totaled $24,270,000 as of December 31, 2022, down from $26,226,000 in 2021[214] Cash Flow and Investments - Cash provided by operating activities totaled $54.3 million in 2021, a decrease of $38.9 million from $93.2 million in 2020[112] - Cash used in investing activities increased by $43.8 million in 2021, totaling $70.8 million, primarily for acquisitions and capital expenditures[113] - The company acquired HBA Group for $3.8 million, edjuster for $19.0 million, and an initial payment for the Praxis acquisition for $21.5 million in 2021[113] - Net cash provided by operating activities decreased to $27,634 million in 2022 from $54,321 million in 2021, reflecting a decline of approximately 49%[201] - Cash used in investing activities was $57,876 million in 2022, down from $70,826 million in 2021, indicating a reduction of about 18%[201] Goodwill and Impairment - In Q3 2022, the company recognized a pretax goodwill impairment of $36.8 million due to indicators in its International Operations and Crawford Legal Services reporting units, with specific impairments of $19.6 million and $3.2 million respectively[182] - The company identified goodwill impairment indicators in its North America Loss Adjusting and Platform Solutions segments, leading to a quantitative analysis and subsequent impairment recognition[182] - The company incurred goodwill impairment of $36,808 million in 2022, while there was no such impairment recorded in 2021[201] Revenue Recognition - The Company recognizes revenue over time for claims management services as performance obligations are satisfied, ensuring accurate revenue depiction[218] - Revenue for claims billed on a time and expense incurred basis is recognized at the amount the Company has the right to invoice for services performed, reflecting variable consideration[218] - The Contractor Connection service line generates revenue by charging a fee for each project sold by its network of contractors, with revenue recognized at the point of consumer acceptance of the contractor's proposal[220] Market Risks and Taxation - The company’s operations are exposed to market risks from foreign currency exchange rates and interest rates, with strategies in place to manage these risks[193] - Future changes in tax laws could significantly impact the company, although specific effects cannot be predicted at this time[189] - The effective income tax rate for 2021 was 30.4%, with an anticipated range of 33% to 35% for 2023[99]
Crawford(CRD_B) - 2022 Q4 - Annual Report