Company: CRD-A
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030894
Chunk: 115

Company: CRAWFORD & CO
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 115
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 short-term contractual stipulations.Unbilled revenues are stated on the Company’s Consolidated Balance Sheets, net of estimated billing adjustments and an estimated allowance for expected credit losses. Unbilled assets represent a contract asset for revenue that has been recognized in advance of billing the customer, resulting from professional services delivered that we expect and are entitled to receive as consideration under certain contracts. Billing requirements vary by contract but substantially all unbilled revenues are billed within one year. 

64

The Company maintains an allowance for expected credit losses resulting primarily from the inability of clients to make required payments. Such losses are accounted for as bad debt expense. These allowances are established using historical write-off or adjustment 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 and unbilled revenues when they become uncollectible, and any payments subsequently received are accounted for as recoveries.A summary of the activities in the allowance for expected credit losses for the years ended December 31, 2024, 2023, and 2022 is as follows: 

          2024

          2023

          2022

          (In thousands)

          Allowance for credit losses, January 1
           
          $
          9,530

          $
          9,322

          $
          8,768

          Add/ (Deduct):

          Provision for bad debt expense

          1,341

          626

          1,647

          Write-offs, net of recoveries

          (1,654
          )

          (478
          )

          (528
          )

          Currency translation and other changes

          (128
          )

          60

          (565
          )

          Allowance for credit losses, December 31
           
          $
          9,089

          $
          9,530

          $
          9,322

         Goodwill, Indefinite-Lived Intangible Assets, and Other Long-Lived AssetsGoodwill 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 in business combinations. Indefinite-lived intangible assets consist of trade names associated with acquired businesses. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing