Company: CRD-A
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030894
Chunk: 237

Company: CRAWFORD & CO
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 237
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.4 million to our U.K. Plans. The U.K. Plans were in a funded status totaling $9.2 million and $10.9 million at the end of 2024 and 2023, respectively, with the fair value of plan assets exceeding the projected benefit obligation. There was a $(1.7) million decrease during 2024 in the net prepaid pension balances of the U.K. defined benefit plans.

Our frozen U.S. Qualified Plan was underfunded by $19.0 million at December 31, 2024 based on an accumulated benefit obligation of $248.5 million. The Company does not expect to make any discretionary contributions to the U.S. Qualified Plan for 2025. 

46

Funding requirements are no longer as sensitive to changes in the discount rate used to determine the present value of projected benefits payable under the U.S. Qualified Plan. Volatility in the capital markets, mortality changes and future legislation may have a negative impact on our pension plans, which may further increase the underfunded portion and our attendant funding obligations. Expected and required contributions to our underfunded defined benefit pension plans could reduce our liquidity, restrict available cash for our operating, financing, and investing needs and may materially adversely affect our financial condition and our ability to deploy capital to other opportunities.

Commercial Commitments

As a component of our Credit Facility, we maintain a letter of credit facility to satisfy certain contractual obligations. At December 31, 2024, the issued, but undrawn, letters of credit totaled approximately $8.9 million. These letters of credit are typically renewed annually, but unless renewed, will expire as follows:

    Amount of Commitment Expiration per Period

    One Year orLess

    1 to 3 Years

    3 to 5 Years

    After 5 Years

    Total

    (In thousands)

    Standby Letters of Credit
     
    $
    8,870

    $
    —

    $
    —

    $
    —

    $
    8,870

Changes in Financial Condition

The following addresses changes in our financial condition not addressed elsewhere in this MD&A.

Significant changes on our Consolidated Balance Sheet as of December 31, 2024, compared with our Consolidated Balance Sheet as of December 31, 2023, were as follows:

•Accounts receivable increased by $10.7 million, excluding the impacts from foreign currency exchange, in 2024 compared with 2023.