Company: CRD-A
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030894
Chunk: 157

Company: CRAWFORD & CO
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 157
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 in 2024 and $4,025,000 in 2023 related to the fair value adjustment of earnout liabilities arising from recent acquisitions. The fair value of the contingent earnout liability is included in "Other accrued liabilities" and "Other noncurrent liabilities" on the Company's Consolidated Balance Sheets, based upon the term of the contingent earnout agreement. The following table summarizes the change in the fair value of the Company's contingent earnout liability balance: 

        December 31,
         
        2024

        2023

        (In thousands)

        Acquisition-related contingent consideration, beginning of the year
         
        $
        13,066

        $
        16,815

        Change in fair value of contingent consideration, including foreign exchange impacts

        (1,264
        )

        4,313

        Settlement of contingent consideration

        (9,283
        )

        (8,062
        )

        Acquisition-related contingent consideration, end of the year
         
        $
        2,519

        $
        13,066

      As of December 31, 2024, an earnout liability of $1,137,000 for the 2024 earnout period is based on the actual achievement of performance targets and will be paid in 2025, thus is no longer subject to fair value measurement and was accordingly transferred out of Level 3. Changes in fair value of contingent consideration are included in "Selling, general, and administrative expenses" on the Consolidated Statements of Operations. Fair Value DisclosuresThe categorization of assets and liabilities within the fair value hierarchy and the measurement techniques are reviewed quarterly. Any transfers between levels are deemed to have occurred at the end of the quarter.The fair values of accounts receivable, unbilled revenues, accounts payable and short-term borrowings approximate their respective carrying values due to the short-term maturities of the instruments. The interest rate on the Company's variable rate long-term debt resets at least every 90 days; therefore, the recorded value approximates fair value. These assets and liabilities are measured within Level 2 of the fair value hierarchy.Nonrecurring Fair Value DisclosuresDuring 2022, the Company impaired and expensed goodwill of $36,808,000. See Note 4, "Goodwill and Intangible Assets," where discussed in more detail. There were no goodwill impairments in 2024 or 2023.  

94

Fair Value Measurements for Defined Benefit