Table of Contents Although operating earnings is the primary financial performance measure used by our senior management and CODM to evaluate the financial performance of our operating segments and make resource allocation and certain compensation decisions, we believe that a non-GAAP discussion and analysis of segment gross profit is also helpful in understanding the results of our segment operations excluding indirect centralized administrative support costs. Our discussion and analysis of segment gross profit includes the revenues and direct expenses of each segment. Segment gross profit is defined as revenues, less direct costs, which exclude indirect centralized administrative support costs allocated to the business. In the Crawford Claims Solutions segment, operating earnings declined primarily due to the reduction in revenues and an increase in centralized indirect administrative support costs during 2019. Excluding indirect support costs, gross profit decreased from $78.3 million, or 21.7% of revenues before reimbursements in 2018, to $76.7 million, or 22.6% of revenues before reimbursements in 2019. In the Crawford TPA Solutions segment, operating earnings declined primarily due to a reduction in revenues and a gross profit decline during 2019. Excluding indirect support costs, gross profit decreased from $109.2 million, or 26.9% of revenues before reimbursements in 2018, to $99.7 million, or 25.3%, as direct costs grew at a higher rate than revenues. In the Crawford Specialty Solutions segment, operating earnings declined as a result of increased compensation expense compared to 2018. Excluding indirect support costs, gross profit decreased from $105.5 million, or 34.6% of revenues before reimbursements in 2018, to $95.4 million, or 35.1%, due primarily to the Garden City Group business which contributed $6.2 million gross profit in the 2018 period. Cost of services provided, before reimbursements, decreased $45.0 million, or 6.0% for 2019 compared with 2018. The decrease was primarily due to the disposition of the Garden City Group, which had $22.3 million of expenses in 2018, lower expenses in our Crawford Claims Solutions segment to support the decrease the weather related activity, and changes in foreign exchange rates. Selling, general and administrative ("SG&A") expenses were $15.3 million lower, a decrease of 6.3%, in 2019 compared to 2018. The decrease in 2019 was due to a decrease in non-employee labor, professional fees, and other administrative expenses, and the Garden City Group disposition, which had $11.6 million of expenses in 2018. The Company recognized arbitration and claim settlement charges in 2019 of $12.6 million related to an arbitration panel awarding three of four former executives of our former Garden City Group business unit additional payments associated with their departure from the Garden City Group on December 31, 2015, and a claim settlement with the fourth former executive. The Company incurred a non-cash goodwill impairment charge in 2019 totaling $17.5 million. This charge was partially offset by a $2.2 million reduction in income tax expense and $2.2 million credit in noncontrolling interest expense. There were no goodwill impairment charges in 2018, although we recognized a $1.1 million impairment to an indefinite-lived trade name intangible asset. During 2019, the Company realigned certain operations within Canada from the Crawford Claims Solutions segment to the Crawford Specialty Solutions segment to be consistent with current operating segment responsibilities. Previously reported amounts have been reclassified to reflect these changes. No other changes in operating responsibilities occurred. These transfers are not material to the Company's financial statements. We believe that a discussion and analysis of the segment operating earnings of our three operating segments is helpful in understanding the results of our operations. Operating earnings is our segment measure of profitability presented in conformity with the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") Topic 280 "Segment Reporting." Operating earnings is the primary financial performance measure used by our senior management and CODM to evaluate the financial performance of our operating segments and make resource allocation and certain compensation decisions. Segment Operating Earnings 21