Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 23, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Huron Consulting Group Inc. | |
Trading Symbol | HURN | |
Entity Central Index Key | 1,289,848 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 22,553,838 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 9,025 | $ 16,909 |
Receivables from clients, net | 108,747 | 101,778 |
Costs in Excess of Billings, Current | 75,290 | 57,618 |
Income tax receivable | 1,754 | 4,039 |
Prepaid Expense and Other Assets, Current | 13,328 | 10,951 |
Total current assets | 208,144 | 191,295 |
Property and equipment, net | 41,164 | 45,541 |
Deferred Tax Assets, Net, Noncurrent | 14,028 | 16,752 |
Long-term investment | 45,948 | 39,904 |
Other non-current assets | 32,035 | 25,375 |
Intangible assets, net | 53,703 | 72,311 |
Goodwill | 645,543 | 645,750 |
Total assets | 1,040,565 | 1,036,928 |
Current liabilities: | ||
Accounts payable | 9,979 | 9,194 |
Accrued expenses and other current liabilities | 21,016 | 20,144 |
Accrued payroll and related benefits | 83,069 | 73,698 |
Business Combination, Contingent Consideration, Liability, Current | 8,003 | 8,515 |
Deferred revenues | 30,043 | 27,916 |
Total current liabilities | 152,110 | 139,467 |
Non-current liabilities: | ||
Deferred compensation and other liabilities | 22,837 | 20,895 |
Business Combination, Contingent Consideration, Liability, Noncurrent | 4,886 | 14,313 |
Long-term debt, net of current portion | 315,691 | 342,507 |
Deferred lease incentives | 14,110 | 15,333 |
Deferred income taxes, net | 1,058 | 1,097 |
Total non-current liabilities | 358,582 | 394,145 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common stock | 244 | 241 |
Treasury stock | (124,169) | (121,994) |
Additional paid-in capital | 446,649 | 434,256 |
Retained earnings | 192,984 | 180,443 |
Accumulated other comprehensive income | 14,165 | 10,370 |
Total stockholders’ equity | 529,873 | 503,316 |
Total liabilities and stockholders’ equity | $ 1,040,565 | $ 1,036,928 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (shares) | 25,104,739 | 24,560,468 |
Treasury stock, shares (shares) | 2,549,822 | 2,443,577 |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Other Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues and reimbursable expenses: | ||||
Revenues | $ 198,448 | $ 176,376 | $ 589,671 | $ 546,643 |
Reimbursable expenses | 21,296 | 17,982 | 59,648 | 55,862 |
Total revenues and reimbursable expenses | 219,744 | 194,358 | 649,319 | 602,505 |
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses): | ||||
Direct costs | 128,596 | 113,775 | 388,956 | 343,185 |
Amortization of intangible assets and software development costs | 1,009 | 2,657 | 3,195 | 8,388 |
Reimbursable expenses | 21,246 | 18,079 | 59,710 | 55,901 |
Total direct costs and reimbursable expenses | 150,851 | 134,511 | 451,861 | 407,474 |
Operating expenses and other losses (gains), net | ||||
Selling, general and administrative expenses | 45,915 | 41,576 | 138,481 | 132,137 |
Restructuring charges | (31) | 1,347 | 2,665 | 5,295 |
Gain (Loss) Related To Litigation Settlement And Other Operating Gains | (887) | (880) | 4,990 | 222 |
Depreciation and amortization | 8,561 | 9,946 | 26,281 | 28,549 |
Goodwill, Impairment Loss | 0 | 0 | 0 | 209,600 |
Total operating expenses and other losses (gains), net | 55,332 | 53,749 | 162,437 | 375,359 |
Operating income (loss) | 13,561 | 6,098 | 35,021 | (180,328) |
Other income (expense), net: | ||||
Interest expense, net of interest income | (4,628) | (4,880) | (14,636) | (13,811) |
Other income (expense), net | 707 | 930 | (5,131) | 3,204 |
Total other expense, net | (3,921) | (3,950) | (19,767) | (10,607) |
Income (loss) from continuing operations before taxes | 9,640 | 2,148 | 15,254 | (190,935) |
Income tax expense (benefit) | 1,391 | (1,984) | 4,365 | (49,740) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 8,249 | 4,132 | 10,889 | (141,195) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 228 | 238 | (304) | 690 |
Net income (loss) | $ 8,477 | $ 4,370 | $ 10,585 | $ (140,505) |
Net earnings (loss) per basic share: | ||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.38 | $ 0.19 | $ 0.50 | $ (6.59) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0.01 | 0.01 | (0.01) | 0.03 |
Basic (USD per share) | 0.39 | 0.20 | 0.49 | (6.56) |
Net earnings per diluted share: | ||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.37 | 0.19 | 0.50 | (6.59) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0.01 | 0.01 | (0.02) | 0.03 |
Earnings Per Share, Diluted | $ 0.38 | $ 0.20 | $ 0.48 | $ (6.56) |
Weighted average shares used in calculating earnings per share: | ||||
Weighted average common shares outstanding – basic | 21,745 | 21,505 | 21,683 | 21,413 |
Weighted average common shares outstanding – diluted | 22,110 | 21,622 | 21,947 | 21,413 |
Comprehensive income (loss): | ||||
Net income (loss) | $ 8,477 | $ 4,370 | $ 10,585 | $ (140,505) |
Foreign currency translation adjustments, net of tax | (579) | 609 | (1,499) | 1,835 |
Unrealized gain (loss) on investment, net of tax | (852) | (2,200) | 4,473 | (1,669) |
Unrealized gain (loss) on cash flow hedging instruments, net of tax | 206 | 23 | 821 | (4) |
Other comprehensive income (loss) | (1,225) | (1,568) | 3,795 | 162 |
Comprehensive income (loss) | $ 7,252 | $ 2,802 | $ 14,380 | $ (140,343) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance, shares at Dec. 31, 2017 | (24,098,822) | (2,591,135) | ||||
Beginning Balance at Dec. 31, 2017 | $ 503,316 | $ 241 | $ (121,994) | $ 434,256 | $ 180,443 | $ 10,370 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 14,380 | 10,585 | 3,795 | |||
Issuance of common stock in connection with: | ||||||
Restricted stock awards, net of cancellations, shares | 251,965 | (20,407) | ||||
Restricted stock awards, net of cancellations | 0 | $ 3 | $ 916 | (919) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 30,000 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 703 | $ 0 | 703 | |||
Share-based compensation | 12,609 | 12,609 | ||||
Shares redeemed for employee tax withholdings, shares | 84,956 | |||||
Shares redeemed for employee tax withholdings | (3,091) | $ (3,091) | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2014-09 [Member] | 1,956 | 1,956 | ||||
Ending Balance, shares at Sep. 30, 2018 | (24,380,787) | (2,655,684) | ||||
Ending Balance at Sep. 30, 2018 | $ 529,873 | $ 244 | $ (124,169) | $ 446,649 | $ 192,984 | $ 14,165 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 10,585 | $ (140,505) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 29,965 | 37,881 |
Share-based compensation | 12,840 | 11,711 |
Amortization of debt discount and issuance costs | 7,721 | 7,604 |
Goodwill, Impairment Loss | 0 | 209,600 |
Allowances For Doubtful Accounts And Unbilled Services | 573 | 3,812 |
Deferred income taxes | 179 | (51,062) |
Gain (Loss) on Disposition of Business | (5,863) | 931 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (2,463) | (222) |
Changes in operating assets and liabilities, net of acquisitions and divestitures: | ||
(Increase) decrease in receivables from clients, net | (9,103) | 9,025 |
(Increase) decrease in unbilled services, net | (16,714) | (12,251) |
(Increase) decrease in current income tax receivable / payable, net | 1,400 | (32) |
(Increase) decrease in other assets | (3,768) | (1,802) |
Increase (decrease) in accounts payable and accrued liabilities | 186 | 1,850 |
Increase (decrease) in accrued payroll and related benefits | 9,445 | (21,928) |
Increase (decrease) in deferred revenues | 2,158 | (318) |
Net cash provided by operating activities | 48,867 | 52,432 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net | (6,662) | (20,139) |
Investment in life insurance policies | (1,689) | (1,826) |
Proceeds from Life Insurance Policy | 0 | (2,889) |
Purchases of businesses, net of cash acquired | (215) | (106,915) |
Capitalization of internally developed software costs | (3,611) | (938) |
Proceeds from Sale and Collection of Notes Receivable | 1,040 | 177 |
Proceeds from Divestiture of Businesses, Net of Cash Divested | (2,359) | 1,499 |
Net cash used in investing activities | (13,496) | (125,253) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 703 | 0 |
Shares redeemed for employee tax withholdings | (3,091) | (4,450) |
Proceeds from borrowings under credit facility | 179,800 | 241,000 |
Repayments of debt | (213,674) | (170,082) |
Payments of Debt Issuance Costs | 1,385 | 395 |
Payment of Contingent Consideration Liabilities | 5,494 | 1,811 |
Net cash provided by (used in) financing activities | (43,141) | 64,262 |
Effect of exchange rate changes on cash | (114) | 192 |
Net decrease in cash and cash equivalents | (7,884) | (8,367) |
Cash and cash equivalents at beginning of the period | 16,909 | 17,027 |
Cash and cash equivalents at end of the period | 9,025 | 8,660 |
Non-cash investing and financing activities: | ||
Property and equipment expenditures included in accounts payable and accrued expenses | 1,500 | 4,049 |
Notes Assumed | 0 | 5,113 |
Common stock issued related to a business acquisition | $ 0 | $ 9,560 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Huron is a global consultancy that helps clients drive growth, enhance performance and sustain leadership in the markets they serve. We partner with clients to develop strategies and implement solutions that enable the transformative change our clients need to own their future. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements reflect the financial position, results of operations, and cash flows as of and for the three and nine months ended September 30, 2018 and 2017 . These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods presented in conformity with GAAP. These financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2017 included in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for the periods ended March 31, 2018 and June 30, 2018. Our results for any interim period are not necessarily indicative of results for a full year or any other interim period. On January 1, 2018, we adopted Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers . Below is an update to our revenue recognition and capitalized sales commissions accounting policies as a result of the adoption. Refer to Note 3 "New Accounting Pronouncements" for additional information on the adoption of ASU 2014-09. Revenue Recognition We generate substantially all of our revenues from providing professional services to our clients. We also generate revenues from software licenses; software support, maintenance and subscriptions to our cloud-based analytic tools and solutions; speaking engagements; conferences; and publications. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, we allocate the total transaction price to each performance obligation based on its relative standalone selling price, which is determined based on our overall pricing objectives, taking into consideration market conditions and other factors. Revenue is recognized when control of the goods and services provided are transferred to our customers and in an amount that reflects the consideration we expect to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when we satisfy the performance obligations. We typically satisfy our performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to our cloud-based analytic tools and solutions are typically satisfied evenly over the course of the service period. Other performance obligations, such as certain software licenses, speaking engagements, conferences, and publications, are satisfied at a point in time. We generate our revenues under four types of billing arrangements: fixed-fee (including software license revenue); time-and-expense; performance-based; and software support, maintenance and subscriptions. In fixed-fee billing arrangements, we agree to a pre-established fee in exchange for a predetermined set of professional services. We set the fees based on our estimates of the costs and timing for completing the engagements. We generally recognize revenues under fixed-fee billing arrangements using a proportionate performance approach, which is based on work completed to-date versus our estimates of the total services to be provided under the engagement. Contracts within our Studer Group solution are fixed-fee partner contracts with multiple performance obligations, which primarily consist of coaching services, as well as speaking engagements, conferences, publications and software products (“Partner Contracts”). Revenues for coaching services and software products are generally recognized on a straight-line basis over the length of the contract. All other revenues under Partner Contracts, including speaking engagements, conferences and publications, are recognized at the time the goods or services are provided. Estimates of total engagement revenues and cost of services are monitored regularly during the term of the engagement. If our estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. We also generate revenues from software licenses for our revenue cycle management software and research administration and compliance software. Licenses for our revenue cycle management software are sold only as a component of our consulting projects, and the services we provide are essential to the functionality of the software. Therefore, revenues from these software licenses are recognized over the term of the related consulting services contract. License revenue from our research administration and compliance software is generally recognized in the month in which the software is delivered. Time-and-expense billing arrangements require the client to pay based on the number of hours worked by our revenue-generating professionals at agreed upon rates. Time-and-expense arrangements also include certain speaking engagements, conferences, and publications purchased by our clients outside of Partner Contracts within our Studer Group solution. We recognize revenues under time-and-expense arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows us to recognize revenue in the amount that we have a right to invoice based on the number of hours worked and the agreed upon hourly rates or the value of the speaking engagements, conferences or publications purchased by our clients. In performance-based billing arrangements, fees are tied to the attainment of contractually defined objectives. We enter into performance-based engagements in essentially two forms. First, we generally earn fees that are directly related to the savings formally acknowledged by the client as a result of adopting our recommendations for improving operational and cost effectiveness in the areas we review. Second, we have performance-based engagements in which we earn a success fee when and if certain predefined outcomes occur. We recognize revenue under performance-based billing arrangements using the following steps: 1) estimate variable consideration using a probability-weighted assessment of the fees to be earned, 2) apply a constraint to the estimated variable consideration to limit the amount that could be reversed when the uncertainty is resolved (the “constraint”), and 3) recognize revenue of estimated variable consideration, net of the constraint, based on work completed to-date versus our estimates of the total services to be provided under the engagement. Clients that have purchased one of our software licenses can pay an annual fee for software support and maintenance. We also generate subscription revenue from our cloud-based analytic tools and solutions. Software support, maintenance and subscription revenues are recognized ratably over the support or subscription period. These fees are billed in advance and included in deferred revenues until recognized. Provisions are recorded for the estimated realization adjustments on all engagements, including engagements for which fees are subject to review by the bankruptcy courts. Expense reimbursements that are billable to clients are included in total revenues and reimbursable expenses. Under fixed-fee billing arrangements, we estimate the total amount of reimbursable expenses to be incurred over the course of the engagement and recognize the estimated amount as revenue using a proportionate performance approach, which is based on work completed to-date versus our estimates of the total services to be provided under the engagement. Under time-and-expense billing arrangements we recognize reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Subcontractors that are billed to clients at cost are also included in reimbursable expenses. When billings do not specifically identify reimbursable expenses, we allocate the portion of the billings equivalent to these expenses to reimbursable expenses. The payment terms and conditions in our customer contracts vary. Differences between the timing of billings and the recognition of revenue are recognized as either unbilled services or deferred revenues in the accompanying consolidated balance sheets. Revenues recognized for services performed but not yet billed to clients are recorded as unbilled services. Revenues recognized, but for which we are not yet entitled to bill because certain events, such as the completion of the measurement period or client approval, must occur, are recorded as contract assets and included within unbilled services. Client prepayments and retainers are classified as deferred revenues and recognized over future periods as earned in accordance with the applicable engagement agreement. Capitalized Sales Commissions Sales commissions earned by our sales professionals are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions with an expected amortization period greater than one year are deferred and amortized on a straight-line basis over the period of the associated contract. We elected to apply the practical expedient to expense sales commissions as incurred when the expected amortization period is one year or less. Amortization expense is recorded to direct costs. The amount of capitalized sales commissions amortized during both the three and nine months ended September 30, 2018 was $0.1 million . Unamortized sales commissions were $0.4 million as of September 30, 2018 . |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In August 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The amendments to the guidance improve and simplify rules for hedge accounting to better present the economic results of an entity’s risk management activities in its financial statements and improve the disclosures of hedging arrangements. Additionally, ASU 2017-12 simplifies the hedge documentation and effectiveness assessment requirements. We elected to early adopt this ASU effective January 1, 2018. The adoption of this guidance did not have an impact on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments to the guidance enhance the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation, and disclosure. We adopted this ASU effective January 1, 2018. The adoption of this guidance did not have an impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , as a new Topic, ASC 606, which superseded ASC 605, Revenue Recognition . The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted ASC 606 effective January 1, 2018 on a modified retrospective basis to all open contracts, as modified, as of that date. Adoption of the new standard resulted in changes to our accounting policy for revenue recognition, most notably for performance-based billing arrangements, and sales commissions. Refer to Note 2 "Basis of Presentation" for additional information on our new accounting policies for revenue recognition and capitalized sales commissions. Adopting ASC 606 on a modified retrospective basis had no impact on our consolidated financial statements in the prior periods presented. Upon adoption, we recorded a $2.0 million cumulative-effect adjustment to record a net increase to retained earnings for the portion of performance-based billing arrangements that have been earned as of the adoption date but for which we had not recognized as revenue under previous revenue recognition guidance, the capitalization of sales commissions paid on open contracts as of the adoption date, and the related tax effects. The impact of the cumulative effect adjustment on our consolidated balance sheet upon adoption was as follows: As of December 31, 2017 Cumulative Effect Adjustment As of January 1, 2018 Assets Unbilled services, net (1) $ 57,618 $ 2,369 $ 59,987 Prepaid expenses and other current assets $ 10,951 $ 104 $ 11,055 Deferred income taxes, net $ 16,752 $ (687 ) $ 16,065 Other non-current assets $ 25,375 $ 170 $ 25,545 Equity Retained earnings $ 180,443 $ 1,956 $ 182,399 (1) The cumulative effect adjustment related to the portion of performance-based billing arrangements that have been earned as of the adoption date but for which we had not recognized as revenue under previous revenue recognition guidance was recorded as a contract asset within unbilled services, net on our consolidated balance sheet. Refer to Note 6 "Revenues" for additional information on our contract assets. The impact of adoption on our consolidated balance sheet as of September 30, 2018 and consolidated statements of operations for the three and nine months ended September 30, 2018 was as follows: Balance Sheet As of September 30, 2018 As reported under ASC 606 As computed under ASC 605 Effect of Adoption Increase/(Decrease) Assets Receivables from clients, net $ 108,747 $ 108,083 $ 664 Unbilled services, net $ 75,290 $ 70,140 $ 5,150 Income tax receivable $ 1,754 $ 2,521 $ (767 ) Prepaid expenses and other current assets $ 13,328 $ 13,146 $ 182 Deferred income taxes, net $ 14,028 $ 14,715 $ (687 ) Other non-current assets $ 32,035 $ 31,808 $ 227 Liabilities Accrued payroll and related benefits $ 83,069 $ 83,103 $ (34 ) Deferred revenues $ 30,043 $ 29,379 $ 664 Equity Retained earnings $ 192,984 $ 188,845 $ 4,139 Statement of Operations Three Months Ended September 30, 2018 As reported under ASC 606 As computed under ASC 605 Effect of Adoption Increase/(Decrease) Revenues (1) $ 198,448 $ 202,326 $ (3,878 ) Direct costs $ 128,596 $ 128,684 $ (88 ) Income from continuing operations before taxes $ 9,640 $ 13,430 $ (3,790 ) Income tax expense 1,391 2,376 (985 ) Net income from continuing operations $ 8,249 $ 11,054 $ (2,805 ) Earnings per share from continuing operations - basic $ 0.38 $ 0.51 $ (0.13 ) Earnings per share from continuing operations - diluted $ 0.37 $ 0.50 $ (0.13 ) Nine Months Ended September 30, 2018 As reported under ASC 606 As computed under ASC 605 Effect of Adoption Increase/(Decrease) Revenues (1) $ 589,671 $ 586,890 $ 2,781 Direct costs $ 388,956 $ 389,125 $ (169 ) Income from continuing operations before taxes $ 15,254 $ 12,304 $ 2,950 Income tax expense 4,365 3,598 767 Net income from continuing operations $ 10,889 $ 8,706 $ 2,183 Earnings per share from continuing operations - basic $ 0.50 $ 0.40 $ 0.10 Earnings per share from continuing operations - diluted $ 0.50 $ 0.40 $ 0.10 (1) The change in revenues due to the adoption of ASC 606 relates to revenue recognized for performance-based fee billing arrangements within our Healthcare segment. Not Yet Adopted In March 2016, the FASB issued ASU 2016-02, Leases , as a new Topic, ASC 842, which supersedes ASC Topic 840, Leases , and sets forth the principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record on the balance sheet a right-of-use asset and a lease liability, equal to the present value of the remaining lease payments, for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized using an effective interest rate method or on a straight-line basis over the term of the lease. ASU 2016-02 will be effective for us beginning January 1, 2019 and requires the use of a modified retrospective transition method for existing leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which provides an optional transition method that allows entities to initially apply ASC 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings on the adoption date. We will elect to adopt ASC 842 using the new transition method provided by ASU 2018-11. We have substantially completed our inventory of outstanding lease agreements and are currently evaluating the potential impact this guidance will have on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies certain disclosure requirements related to fair value measurements. ASU 2018-13 will be effective for us beginning January 1, 2020, with early adoption permitted. We do not expect this guidance to have an impact on the amounts reported on our consolidated financial statements, and we are currently evaluating the potential impact this guidance will have on our disclosures within the notes to our consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Innosight Holdings, LLC On March 1, 2017 , we acquired 100% of the membership interests of Innosight Holdings, LLC ("Innosight"). Innosight is a growth strategy firm focused on helping companies navigate disruptive change and manage strategic transformation. Together with Innosight, we use our strategic, operational, and technology capabilities to help clients across multiple industries develop pioneering solutions to address disruption and achieve sustained growth. The acquisition date fair value of the consideration transferred for Innosight was $113.6 million , which consisted of the following: Fair value of consideration transferred March 1, 2017 Cash $ 90,725 Common stock 9,560 Contingent consideration liability 12,050 Net working capital adjustment 1,272 Total consideration transferred $ 113,607 We funded the cash component of the purchase price with cash on hand and borrowings of $89.0 million under our senior secured credit facility. We issued 221,558 shares of our common stock as part of the consideration transferred, with an acquisition date fair value of $9.6 million based on our common stock's closing price of $43.15 on the date of acquisition. The contingent consideration liability of $12.1 million represents the acquisition date fair value of the contingent consideration arrangement, pursuant to which we may be required to pay additional consideration to the sellers if specific financial performance targets are met over a four-year term. The maximum amount that may be paid is $35.0 million . See Note 11 "Fair Value of Financial Instruments" for additional information on the valuation of contingent consideration liabilities. The acquisition was accounted for using the acquisition method of accounting. Tangible and identifiable intangible assets acquired and liabilities assumed are recorded at fair value as of the acquisition date. The following table summarizes the allocation of the purchase price to the fair value of assets acquired and liabilities assumed as of the acquisition date. March 1, 2017 Assets acquired: Accounts receivable $ 7,752 Unbilled services 1,881 Prepaid expenses and other current assets 468 Property and equipment 419 Intangible assets 18,015 Liabilities assumed: Accounts payable 531 Accrued expenses and other current liabilities 894 Accrued payroll and related benefits 883 Deferred revenues 30 Total identifiable net assets 26,197 Goodwill 87,410 Total purchase price $ 113,607 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the acquisition date. Fair Value Useful Life (in years) Customer relationships $ 9,500 6 Trade name 6,000 6 Customer contracts 1,000 1 Non-compete agreements 1,300 5 Favorable lease contract 215 1 Total intangible assets subject to amortization $ 18,015 The weighted average amortization period for the identifiable intangible assets shown above is 5.6 years. Customer relationships and customer contracts represent the fair values of the underlying relationships and agreements with Innosight customers. The trade name represents the fair value of the brand and name recognition associated with the marketing of Innosight's service offerings. Non-compete agreements represent the value derived from preventing certain Innosight executives from entering into or starting a similar, competing business. The favorable lease contract represents the difference between the fair value and minimum lease obligations under the current outstanding lease. Goodwill is recognized for the excess of purchase price over the net fair value of assets acquired and liabilities assumed, and largely reflects the expanded market opportunities expected from combining the service offerings of Huron and Innosight, as well as the assembled workforce of Innosight. Goodwill recognized in conjunction with the acquisition of Innosight was recorded in the Business Advisory segment. Goodwill of $87.4 million is expected to be deductible for income tax purposes. Innosight’s results of operations have been included in our unaudited consolidated statements of operations and results of operations of our Business Advisory segment from the date of acquisition. For the three months ended September 30, 2017 , revenues from Innosight were $11.0 million and operating loss was $0.6 million , which included $0.9 million of amortization expense for intangible assets acquired. For the nine months ended September 30, 2017 , revenues from Innosight were $27.2 million and operating income was $0.8 million , which included $2.7 million of amortization expense for intangible assets acquired. In connection with the acquisition of Innosight, we incurred $1.7 million of transaction and acquisition-related expenses. Of the $1.7 million of expense, $1.4 million was incurred in the first quarter of 2017 and $0.3 million was incurred in the second quarter in 2017. These costs are recorded in selling, general and administrative expenses. The following unaudited supplemental pro forma information summarizes the combined results of operations of Huron and Innosight as though the companies were combined on January 1, 2016. Three Months Ended Nine Months Ended Revenues $ 176,376 $ 555,768 Net income (loss) from continuing operations $ 4,170 $ (137,922 ) Net income (loss) from continuing operations per share - basic $ 0.19 $ (6.43 ) Net income (loss) from continuing operations per share - diluted $ 0.19 $ (6.43 ) The historical financial information has been adjusted to give effect to pro forma adjustments of intangible asset amortization expense, acquisition-related costs, interest expense, and the related income tax effects. For the three and nine months ended September 30, 2017 , the unaudited pro forma adjustments decreased expense by less than $0.1 million and increased expense by $0.5 million , respectively. Additionally, the historical financial information has been adjusted to give effect to the shares issued as consideration. All of these adjustments are based upon currently available information and certain assumptions. Therefore, the pro forma consolidated results are not necessarily indicative of what our consolidated results of operations actually would have been had we completed the acquisition on January 1, 2016. The historical results included in the pro forma consolidated results do not purport to project future results of operations of the combined companies nor do they reflect the expected realization of any cost savings or revenue synergies associated with the acquisition. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The table below sets forth the changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2018 . Healthcare Business Advisory Education Total Balance as of December 31, 2017: Goodwill $ 636,810 $ 302,187 $ 102,829 $ 1,041,826 Accumulated impairment losses (208,081 ) (187,995 ) — (396,076 ) Goodwill, net as of December 31, 2017 428,729 114,192 102,829 645,750 Goodwill recorded in connection with business acquisitions — 186 — 186 Foreign currency translation — (393 ) — (393 ) Goodwill, net as of September 30, 2018 $ 428,729 $ 113,985 $ 102,829 $ 645,543 Second Quarter 2017 Goodwill Impairment Charge During the second quarter of 2017, we performed a goodwill impairment analysis for our Healthcare reporting unit as our Healthcare business had experienced a prolonged period of declining revenues, primarily driven by softness in our revenue cycle offering within our performance improvement solution. This softness was attributable to decreased demand for our services, the winding down of some of our larger projects, and a trend toward smaller projects, as well as fewer large integrated projects. Based on forecasts prepared in the second quarter of 2017 in connection with our quarterly forecasting cycle, we determined that the likely time frame to improve the financial results of this segment would take longer than originally anticipated. As such, we concluded, during the second quarter of 2017, that the fair value of the Healthcare reporting unit may no longer exceed its carrying value. In connection with the preparation of our financial statements for the quarter ended June 30, 2017, we performed an interim impairment test on the Healthcare reporting unit. Our goodwill impairment test was performed by comparing the fair value of the Healthcare reporting unit to its carrying value and recognizing an impairment charge for the amount by which the carrying value exceeded the fair value. To estimate the fair value of the Healthcare reporting unit, we relied on a combination of the income approach and the market approach, utilizing the guideline company method, with a fifty-fifty weighting. Based on the estimated fair value of the Healthcare reporting unit, we recorded a $209.6 million non-cash pretax goodwill impairment charge in the second quarter of 2017 to reduce the carrying value of goodwill in our Healthcare reporting unit. Intangible Assets Intangible assets as of September 30, 2018 and December 31, 2017 consisted of the following: As of September 30, 2018 As of December 31, 2017 Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 4 to 13 $ 98,371 $ 56,611 $ 106,195 $ 51,588 Trade names 5 to 6 28,930 22,104 29,016 18,915 Customer contracts 4 25,097 24,999 25,154 24,751 Technology and software 3 to 5 5,694 2,466 9,340 5,098 Non-compete agreements 3 to 5 4,710 3,048 5,163 2,637 Publishing content 3 — — 3,300 3,163 Favorable lease contract 3 720 591 720 425 Total $ 163,522 $ 109,819 $ 178,888 $ 106,577 Identifiable intangible assets with finite lives are amortized over their estimated useful lives. Customer relationships and customer contracts, as well as certain trade names and technology and software, are amortized on an accelerated basis to correspond to the cash flows expected to be derived from the assets. All other intangible assets with finite lives are amortized on a straight-line basis. Intangible asset amortization expense was $5.9 million and $8.8 million for the three months ended September 30, 2018 and 2017 , respectively. Intangible asset amortization expense was $18.2 million and $26.4 million for the nine months ended September 30, 2018 and 2017 , respectively. The table below sets forth the estimated annual amortization expense for the year ending December 31, 2018 and each of the five succeeding years for the definite-lived intangible assets recorded as of September 30, 2018 . Year Ending December 31, Estimated Amortization Expense 2018 $ 23,863 2019 $ 17,206 2020 $ 12,083 2021 $ 8,064 2022 $ 6,090 2023 $ 3,512 Actual future amortization expense could differ from these estimated amounts as a result of future acquisitions, dispositions, and other factors. |
Revenues Revenue
Revenues Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues For the three and nine months ended September 30, 2018 , we recognized revenues of $198.4 million and $589.7 million , respectively. For the three and nine months ended September 30, 2017 , we recognized revenues of $176.4 million and $546.6 million , respectively. Of the $198.4 million recognized in the third quarter of 2018 , we recognized revenues of $7.6 million from obligations satisfied, or partially satisfied, in prior periods, of which $4.3 million was primarily due to the release of allowances on unbilled services due to securing contract amendments and $3.3 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements. Of the $589.7 million recognized in the first nine months of 2018, we recognized revenues of $10.1 million from obligations satisfied, or partially satisfied, in prior periods, of which $6.5 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $3.6 million was primarily due to the release of allowances on unbilled services due to securing contract amendments. As of September 30, 2018 , we had $55.2 million of remaining performance obligations under engagements with original expected durations greater than one year. These remaining performance obligations exclude obligations under contracts with an original expected duration of one year or less, variable consideration which has been excluded from the total transaction price due to the constraint, and performance obligations under time-and-expense engagements which are recognized in the amount invoiced. Of the $55.2 million of performance obligations, we expect to recognize approximately $16.1 million as revenue in the fourth quarter of 2018 , $30.1 million in 2019 , and the remaining $9.0 million thereafter. Actual revenue recognition could differ from these amounts as a result of changes in the estimated timing of work to be performed, adjustments to estimated variable consideration in performance-based arrangements, or other factors. Contract Assets and Liabilities The payment terms and conditions in our customer contracts vary. Differences between the timing of billings and the recognition of revenue are recognized as either unbilled services or deferred revenues in the consolidated balance sheets. Unbilled services include revenues recognized for services performed but not yet billed to clients. Services performed that we are not yet entitled to bill because certain events, such as the completion of the measurement period or client approval in performance-based engagements, must occur are recorded as contract assets and included within unbilled services, net. The contract asset balance within unbilled services, net was $2.8 million as of September 30, 2018 and $2.4 million as of January 1, 2018, upon adoption of ASC 606. The $0.4 million increase primarily reflects timing differences between the completion of our performance obligations and the amounts billed or billable to clients in accordance with their contractual billing terms. Refer to Note 3 "New Accounting Pronouncements" for additional information on the adoption of ASC 606. Client prepayments and retainers are classified as deferred revenues and recognized over future periods in accordance with the applicable engagement agreement and our revenue recognition policy. Our deferred revenues balance as of September 30, 2018 and December 31, 2017, was $30.0 million and $27.9 million , respectively. The $2.1 million increase primarily reflects timing differences between client payments in accordance with their contract terms and the completion of our performance obligations. For the three and nine months ended September 30, 2018 , $2.2 million and $22.8 million , respectively, of revenues recognized were included in the deferred revenue balance as of December 31, 2017 . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period, excluding unvested restricted common stock. Diluted earnings per share reflects the potential reduction in earnings per share that could occur if securities or other contracts to issue common stock were exercised or converted into common stock under the treasury stock method. Such securities or other contracts include unvested restricted stock awards, outstanding common stock options, convertible senior notes, and outstanding warrants, to the extent dilutive. In periods we report a net loss from continuing operations, diluted weighted average common shares outstanding excludes all potential common stock equivalents as their impact on diluted net loss from continuing operations per share would be anti-dilutive. Earnings (loss) per share under the basic and diluted computations are as follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income (loss) from continuing operations $ 8,249 $ 4,132 $ 10,889 $ (141,195 ) Income (loss) from discontinued operations, net of tax 228 238 (304 ) 690 Net income (loss) $ 8,477 $ 4,370 $ 10,585 $ (140,505 ) Weighted average common shares outstanding – basic 21,745 21,505 21,683 21,413 Weighted average common stock equivalents 365 117 264 — Weighted average common shares outstanding – diluted 22,110 21,622 21,947 21,413 Net earnings (loss) per basic share: Net income (loss) from continuing operations $ 0.38 $ 0.19 $ 0.50 $ (6.59 ) Income (loss) from discontinued operations, net of tax 0.01 0.01 (0.01 ) 0.03 Net income (loss) $ 0.39 $ 0.20 $ 0.49 $ (6.56 ) Net earnings (loss) per diluted share: Net income (loss) from continuing operations $ 0.37 $ 0.19 $ 0.50 $ (6.59 ) Income (loss) from discontinued operations, net of tax 0.01 0.01 (0.02 ) 0.03 Net income (loss) $ 0.38 $ 0.20 $ 0.48 $ (6.56 ) The number of anti-dilutive securities excluded from the computation of the weighted average common stock equivalents presented above were as follows: As of September 30, 2018 2017 Unvested restricted stock awards 11 627 Outstanding common stock options — 194 Convertible senior notes 3,129 3,129 Warrants related to the issuance of convertible senior notes 3,129 3,129 Total anti-dilutive securities 6,269 7,079 See Note 8 “Financing Arrangements” for further information on the convertible senior notes and warrants related to the issuance of convertible notes. As of September 30, 2018, we had a share repurchase program permitting us to repurchase up to $125 million of our common stock through October 31, 2018 (the “Share Repurchase Program”). During the fourth quarter of 2018, our board of directors authorized an extension of the Share Repurchase Program through October 31, 2019. The amount and timing of the repurchases will be determined by management and will depend on a variety of factors, including the trading price of our common stock, capacity under our credit facility, general market and business conditions, and applicable legal requirements. No shares were repurchased during the first nine months of 2018 and 2017. As of September 30, 2018 , $35.1 million remains available for share repurchases. |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements A summary of the carrying amounts of our debt follows: September 30, 2018 December 31, 2017 1.25% convertible senior notes due 2019 $ 240,209 $ 233,140 Senior secured credit facility 71,500 105,000 Promissory note due 2024 4,493 4,868 Total long-term debt $ 316,202 $ 343,008 Current maturities of debt (1) (511 ) (501 ) Long-term debt, net of current portion $ 315,691 $ 342,507 (1) The current maturities of debt are included as a component of accrued expenses and other current liabilities on our consolidated balance sheets. Below is a summary of the scheduled remaining principal payments of our debt as of September 30, 2018 . Principal Payments of Long-Term Debt 2018 $ 126 2019 $ 250,514 2020 $ 529 2021 $ 544 2022 $ 559 Thereafter $ 73,721 Convertible Notes In September 2014, the Company issued $250 million principal amount of 1.25% convertible senior notes due 2019 (the “Convertible Notes”) in a private offering. The Convertible Notes are governed by the terms of an indenture between the Company and U.S. Bank National Association, as Trustee (the “Indenture”). The Convertible Notes are senior unsecured obligations of the Company and will pay interest semi-annually on April 1 and October 1 of each year at an annual rate of 1.25% . The Convertible Notes will mature on October 1, 2019 , unless earlier repurchased by the Company or converted in accordance with their terms. Upon conversion, the Convertible Notes will be settled, at our election, in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. Our current intent and policy is to settle conversions with a combination of cash and shares of common stock with the principal amount of the Convertible Notes paid in cash, in accordance with the settlement provisions of the Indenture. The initial conversion rate for the Convertible Notes is 12.5170 shares of our common stock per $1,000 principal amount of the Convertible Notes, which is equal to an initial conversion price of approximately $79.89 per share of our common stock. The conversion rate will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest, except in certain limited circumstances described in the Indenture. Upon the occurrence of a “make-whole fundamental change” (as defined in the Indenture) the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Convertible Notes in connection with such make-whole fundamental change. Additionally, if the Company undergoes a “fundamental change” (as defined in the Indenture), a holder will have the option to require the Company to repurchase all or a portion of its Convertible Notes for cash at a price equal to 100% of the principal amount of the Convertible Notes being repurchased plus any accrued and unpaid interest. As discussed below, the convertible note hedge transactions and warrants, which were entered into in connection with the Convertible Notes, effectively raise the price at which economic dilution would occur from the initial conversion price of approximately $79.89 to approximately $97.12 per share. Holders of the Convertible Notes may convert their Convertible Notes at their option at any time prior to July 1, 2019 , only under the following circumstances: • during any calendar quarter (and only during such calendar quarter) commencing after December 31, 2014 if, for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter, the last reported sale price of the Company’s common stock for such trading day is equal to or greater than 130% of the applicable conversion price on such trading day; • during the five consecutive business day period immediately following any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which, for each trading day of the measurement period, the “trading price” (as defined in the Indenture) per $1,000 principal amount of the Convertible Notes for such trading day was less than 98% of the product of the last reported sale price of the Company’s common stock for such trading day and the applicable conversion rate on such trading day; or • upon the occurrence of specified corporate transactions described in the Indenture. On or after July 1, 2019 until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or a portion of its Convertible Notes, regardless of the foregoing circumstances. We have separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar liability that does not have an associated convertible feature, assuming our non-convertible debt borrowing rate. The carrying value of the equity component representing the conversion option, which is recognized as a debt discount, was determined by deducting the fair value of the liability component from the proceeds of the Convertible Notes. The debt discount is amortized to interest expense using an effective interest rate of 4.751% over the term of the Convertible Notes. As of September 30, 2018 , the remaining life of the Convertible Notes is one year. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification. The transaction costs related to the issuance of the Convertible Notes were separated into liability and equity components based on their relative values, as determined above. Transaction costs attributable to the liability component are recorded as a deduction to the carrying amount of the liability and amortized to interest expense over the term of the Convertible Notes; and transaction costs attributable to the equity component are netted with the equity component of the Convertible Notes in stockholders’ equity. Total debt issuance costs were approximately $7.3 million , of which $6.2 million was allocated to liability issuance costs and $1.1 million was allocated to equity issuance costs. As of September 30, 2018 and December 31, 2017 , the Convertible Notes consisted of the following: September 30, 2018 December 31, 2017 Liability component: Proceeds $ 250,000 $ 250,000 Less: debt discount, net of amortization (8,530 ) (14,668 ) Less: debt issuance costs, net of amortization (1,261 ) (2,192 ) Net carrying amount $ 240,209 $ 233,140 Equity component (1) $ 39,287 $ 39,287 (1) Included in additional paid-in capital on the consolidated balance sheet. The following table presents the amount of interest expense recognized related to the Convertible Notes for the periods presented. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Contractual interest coupon $ 781 $ 781 $ 2,344 $ 2,344 Amortization of debt discount 2,070 1,974 6,138 5,853 Amortization of debt issuance costs 312 306 931 915 Total interest expense $ 3,163 $ 3,061 $ 9,413 $ 9,112 In connection with the issuance of the Convertible Notes, we entered into convertible note hedge transactions and warrant transactions. The convertible note hedge transactions are intended to reduce the potential future economic dilution associated with the conversion of the Convertible Notes and, combined with the warrants, effectively raise the price at which economic dilution would occur from the initial conversion price of approximately $79.89 to approximately $97.12 per share. For purposes of the computation of diluted earnings per share in accordance with GAAP, dilution will occur when the average share price of our common stock for a given period exceeds the conversion price of the Convertible Notes, which initially is equal to approximately $79.89 per share. The convertible note hedge transactions and warrant transactions are discussed separately below. • Convertible Note Hedge Transactions . In connection with the issuance of the Convertible Notes, the Company entered into convertible note hedge transactions whereby the Company has call options to purchase a total of approximately 3.1 million shares of the Company’s common stock, which is the number of shares initially issuable upon conversion of the Convertible Notes in full, at a price of approximately $79.89 , which corresponds to the initial conversion price of the Convertible Notes, subject to customary anti-dilution adjustments substantially similar to those in the Convertible Notes. The convertible note hedge transactions are exercisable upon conversion of the Convertible Notes and will expire in 2019 if not earlier exercised. We paid an aggregate amount of $42.1 million for the convertible note hedge transactions, which was recorded as additional paid-in capital on the consolidated balance sheet. The convertible note hedge transactions are separate transactions and are not part of the terms of the Convertible Notes. • Warrants. In connection with the issuance of the Convertible Notes, the Company sold warrants whereby the holders of the warrants have the option to purchase a total of approximately 3.1 million shares of the Company’s common stock at a strike price of approximately $97.12 . The warrants will expire incrementally on 100 different dates from January 6, 2020 to May 28, 2020 and are exercisable at each such expiry date. If the average market value per share of our common stock for the reporting period exceeds the strike price of the warrants, the warrants will have a dilutive effect on our earnings per share. We received aggregate proceeds of $23.6 million from the sale of the warrants, which was recorded as additional paid-in capital on the consolidated balance sheet. The warrants are separate transactions and are not part of the terms of the Convertible Notes or the convertible note hedge transactions. The Company recorded an initial deferred tax liability of $15.4 million in connection with the debt discount associated with the Convertible Notes and recorded an initial deferred tax asset of $16.5 million in connection with the convertible note hedge transactions. The deferred tax liability and deferred tax asset are included in deferred income taxes, net on the consolidated balance sheets. Senior Secured Credit Facility The Company has a $500 million five -year senior secured revolving credit facility, subject to the terms of a Second Amended and Restated Credit Agreement dated as of March 31, 2015, as amended to date (as amended and modified the "Amended Credit Agreement"), that becomes due and payable in full upon maturity on March 23, 2023 . The Amended Credit Agreement provides the option to increase the revolving credit facility or establish term loan facilities in an aggregate amount of up to $150 million , subject to customary conditions and the approval of any lender whose commitment would be increased, resulting in a maximum available principal amount under the Amended Credit Agreement of $650 million . The initial borrowings under the Amended Credit Agreement were used to refinance borrowings outstanding under a prior credit agreement, and future borrowings under the Amended Credit Agreement may be used for working capital, capital expenditures, acquisitions of businesses, share repurchases, and general corporate purposes. Fees and interest on borrowings vary based on our Consolidated Leverage Ratio (as defined in the Amended Credit Agreement). At our option, borrowings under the Amended Credit Agreement will bear interest at one, two, three or six-month LIBOR or an alternate base rate, in each case plus the applicable margin. The applicable margin will fluctuate between 1.25% per annum and 2.00% per annum, in the case of LIBOR borrowings, or between 0.25% per annum and 1.00% per annum, in the case of base rate loans, based upon our Consolidated Leverage Ratio at such time. Amounts borrowed under the Amended Credit Agreement may be prepaid at any time without premium or penalty. We are required to prepay the amounts outstanding under the Amended Credit Agreement in certain circumstances, including a requirement to pay all amounts outstanding under the Amended Credit Agreement 90 days prior to the Convertible Indebtedness Maturity Date (as defined in the Amended Credit Agreement) unless (1) the Convertible Indebtedness Maturity Date is waived or extended to a later date, (2) the Company can demonstrate (a) Liquidity (as defined in the Amended Credit Agreement) in an amount at least equal to the principal amount due on the Convertible Indebtedness Maturity Date, and (b) financial covenant compliance after giving effect to such payments and any additional indebtedness incurred on a pro forma basis, or (3) this requirement is waived by the Required Lenders (as defined in the Amended Credit Agreement). In addition, we have the right to permanently reduce or terminate the unused portion of the commitments provided under the Amended Credit Agreement at any time. The loans and obligations under the Amended Credit Agreement are secured pursuant to a Second Amended and Restated Security Agreement and a Second Amended and Restated Pledge Agreement (the “Pledge Agreement”) with Bank of America, N.A. as collateral agent, pursuant to which the Company and the subsidiary guarantors grant Bank of America, N.A., for the ratable benefit of the lenders under the Amended Credit Agreement, a first-priority lien, subject to permitted liens, on substantially all of the personal property assets of the Company and the subsidiary guarantors, and a pledge of 100% of the stock or other equity interests in all domestic subsidiaries and 65% of the stock or other equity interests in each “material first-tier foreign subsidiary” (as defined in the Pledge Agreement). The Amended Credit Agreement contains usual and customary representations and warranties; affirmative and negative covenants, which include limitations on liens, investments, additional indebtedness, and restricted payments; and two quarterly financial covenants as follows: (i) a maximum Consolidated Leverage Ratio (defined as the ratio of debt to consolidated EBITDA) ranging from 3.50 to 1.00 to 4.00 to 1.00, depending on the measurement period, and (ii) a minimum Consolidated Interest Coverage Ratio (defined as the ratio of consolidated EBITDA to interest) of 3.50 to 1.00. Consolidated EBITDA for purposes of the financial covenants is calculated on a continuing operations basis and includes adjustments to add back non-cash goodwill impairment charges, share-based compensation costs, certain non-cash restructuring charges, pro forma historical EBITDA for businesses acquired, and other specified items in accordance with the Amended Credit Agreement. At September 30, 2018 , we were in compliance with these financial covenants with a Consolidated Leverage Ratio of 3.02 to 1.00 and a Consolidated Interest Coverage Ratio of 10.57 to 1.00. Borrowings outstanding under the Amended Credit Agreement at September 30, 2018 totaled $71.5 million . These borrowings carried a weighted average interest rate of 4.2% , including the effect of the interest rate swap described in Note 10 “Derivative Instruments and Hedging Activity." Borrowings outstanding under the Amended Credit Agreement at December 31, 2017 were $105.0 million and carried a weighted average interest rate of 3.7% , including the effect of the interest rate swap described in Note 10 “Derivative Instrument and Hedging Activity." The borrowing capacity under the revolving credit facility is reduced by any outstanding borrowings under the revolving credit facility and outstanding letters of credit. At September 30, 2018 , we had outstanding letters of credit totaling $1.6 million , which are primarily used as security deposits for our office facilities. As of September 30, 2018 , the unused borrowing capacity under the revolving credit facility was $426.9 million . Promissory Note due 2024 On June 30, 2017, in conjunction with our purchase of an aircraft related to the acquisition of Innosight, we assumed, from the sellers of the aircraft, a promissory note with an outstanding principal balance of $5.1 million . The principal balance of the promissory note is subject to scheduled monthly principal payments until the maturity date of March 1, 2024 , at which time a final payment of $1.5 million , plus any accrued and unpaid interest, will be due. Under the terms of the promissory note, we will pay interest on the outstanding principal amount at a rate of one -month LIBOR plus 1.97% per annum. The obligations under the promissory note are secured pursuant to a Loan and Aircraft Security Agreement with Banc of America Leasing & Capital, LLC, which grants the lender a first priority security interest in the aircraft. At September 30, 2018 , the outstanding principal amount of the promissory note was $4.5 million . As of September 30, 2018 , the aircraft had a carrying amount of $5.9 million . At December 31, 2017 , the outstanding principal amount of the promissory note was $4.9 million , and the aircraft had a carrying amount of $6.5 million . |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges netted to an immaterial amount for the three months ended September 30, 2018 and were $2.7 million for the nine months ended September 30, 2018 . The restructuring charges incurred in the third quarter of 2018 consisted of a $0.4 million accrual related to employee costs in our Healthcare segment, offset by a $0.3 million decrease in the accrual for remaining lease obligations, net of estimated sublease income, as a result of updated lease assumptions for our San Francisco office vacated in the third quarter of 2017 and a $0.2 million decrease in the accrual related to workforce reductions in our Business Advisory segment recorded in the second quarter of 2018. The $2.7 million of restructuring charges incurred in the first nine months of 2018 primarily consisted of $0.7 million related to the accrual of remaining lease payments, net of estimated sublease income, and accelerated depreciation on leasehold improvements due to exiting a portion of our Middleton, Wisconsin office in the second quarter of 2018; $0.7 million and $0.5 million related to workforce reductions in our Healthcare segment and our Business Advisory segment, respectively, to better align resources with market demand; $0.3 million related to updated lease assumptions for our San Francisco office vacated in the third quarter of 2017; and $0.3 million related to the divestiture of our Middle East practice within the Business Advisory segment in the second quarter of 2018. During the second quarter of 2018, we sold our Middle East practice to a former employee who was the practice leader of that business at the time and we recorded a $5.9 million loss which is included in other income (expense), net in our consolidated statements of operations. Restructuring charges for the three and nine months ended September 30, 2017 totaled $1.3 million and $5.3 million , respectively. The $1.3 million charge incurred in the third quarter of 2017 primarily related to the accrual of remaining lease obligations, net of estimated sublease income, due to relocating our San Francisco office to a smaller space and consolidating our New York offices in the third quarter of 2017, and accelerated depreciation on leasehold improvements for our San Francisco office. The $5.3 million of restructuring charges incurred in the first nine months of 2017 primarily consisted of $2.5 million related to the accrual of remaining lease obligations, net of estimated sublease income, due to relocating our San Francisco office to a smaller space and consolidating our Chicago and New York offices in the first nine months of 2017 and accelerated depreciation on leasehold improvements for our San Francisco office; $2.0 million related to workforce reductions in our Healthcare segment to better align our resources with market demand; and $0.4 million related to workforce reductions in our corporate operations primarily to adjust our infrastructure to align with the decreased workforce in the Healthcare segment. The table below sets forth the changes in the carrying amount of our restructuring charge liability by restructuring type for the nine months ended September 30, 2018 . Employee Costs Office Space Reductions Other Total Balance as of December 31, 2017 $ 1,267 $ 4,247 $ — $ 5,514 Additions 1,259 896 151 2,306 Payments (1,861 ) (2,710 ) (152 ) (4,723 ) Adjustments (1) (47 ) 833 — 786 Non-cash items — (325 ) 1 (324 ) Balance as of September 30, 2018 $ 618 $ 2,941 $ — $ 3,559 (1) Adjustments for the nine months ended September 30, 2018 includes restructuring charges of $0.4 million related to updated lease assumptions for vacated office spaces directly related to discontinued operations. As of September 30, 2018 , our restructuring charge liability related to office space reductions of $2.9 million represented the present value of remaining lease payments, net of estimated sublease income, primarily for our vacated office spaces in Washington, D.C., Chicago, Houston, San Francisco, and Middleton, Wisconsin. This restructuring charge liability is included as a component of accrued expenses and other current liabilities and deferred compensation and other liabilities. All of the $0.6 million restructuring charge liability related to employee costs at September 30, 2018 is expected to be paid in the next 12 months. The restructuring charge liability related to employee costs is included as a component of accrued payroll and related benefits. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activity | Derivative Instrument and Hedging Activity On June 22, 2017, we entered into a forward interest rate swap agreement effective August 31, 2017 and ending August 31, 2022 , with a notional amount of $50.0 million . We entered into this derivative instrument to hedge against the interest rate risks of our variable-rate borrowings. Under the terms of the interest rate swap agreement, we receive from the counterparty interest on the notional amount based on one -month LIBOR and we pay to the counterparty a fixed rate of 1.900% . We recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. We have designated this derivative instrument as a cash flow hedge. Therefore, changes in the fair value of the derivative instrument are recorded to other comprehensive income (“OCI”) and reclassified into interest expense upon settlement. As of September 30, 2018 , it was anticipated that $0.3 million of the gains, net of tax, currently recorded in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. The table below sets forth additional information relating to the interest rate swap designated as a cash flow hedging instrument as of September 30, 2018 and December 31, 2017 . Fair Value (Derivative Asset and Liability) Balance Sheet Location September 30, December 31, Prepaid expenses and other current assets $ 341 $ — Other non-current assets $ 1,301 $ 581 Accrued expenses $ — $ 48 All of our derivative instruments are transacted under the International Swaps and Derivatives Association (ISDA) master agreements. These agreements permit the net settlement of amounts owed in the event of default and certain other termination events. Although netting is permitted, it is our policy to record all derivative assets and liabilities on a gross basis on our consolidated balance sheet. We do not use derivative instruments for trading or other speculative purposes. Refer to Note 12 “Other Comprehensive Income (Loss)” for additional information on our derivative instrument. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Certain of our assets and liabilities are measured at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value and requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy consists of three levels based on the objectivity of the inputs as follows: Level 1 Inputs Quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Inputs Unobservable inputs for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. The table below sets forth our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 . Level 1 Level 2 Level 3 Total September 30, 2018 Assets: Interest rate swap $ — $ 1,642 $ — $ 1,642 Convertible debt investment — — 45,948 45,948 Deferred compensation assets — 20,352 — 20,352 Total assets $ — $ 21,994 $ 45,948 $ 67,942 Liabilities: Contingent consideration for business acquisitions $ — $ — $ 12,889 $ 12,889 Total liabilities $ — $ — $ 12,889 $ 12,889 December 31, 2017 Assets: Interest rate swap $ — $ 533 $ — $ 533 Promissory note — — 1,078 1,078 Convertible debt investment — — 39,904 39,904 Deferred compensation assets — 17,786 — 17,786 Total assets $ — $ 18,319 $ 40,982 $ 59,301 Liabilities: Contingent consideration for business acquisitions $ — $ — $ 22,828 $ 22,828 Total liabilities $ — $ — $ 22,828 $ 22,828 Interest rate swaps: The fair value of our interest rate swap was derived using estimates to settle the interest rate swap agreement, which is based on the net present value of expected future cash flows on each leg of the swap utilizing market-based inputs and a discount rate reflecting the risks involved. Promissory note : As part of the consideration received for the sale of our Accounting Advisory practice on December 30, 2011, we received a promissory note with an initial principal amount of $3.5 million payable over four years. During the fourth quarter of 2017, we amended and restated the note which established scheduled annual principal payments, increased the interest rate, reduced the outstanding principal amount by $0.5 million , and extended the maturity date to September 30, 2020 . As of December 31, 2017, the outstanding principal balance was $1.0 million . During the first six months of 2018, we received payments for all of the outstanding principal balance and all accrued interest. Prior to the final payment, the fair value of the note was based on the net present value of the projected cash flows using a discount rate of 10% , which accounted for the risks associated with the amended note. This fair value measurement was based on significant inputs not observable in the market and thus represent Level 3 inputs. The table below sets forth the changes in the balance of the promissory note for the nine months ended September 30, 2018 . Promissory Note Balance as of December 31, 2017 $ 1,078 Interest payments received (81 ) Principal payments received (1,040 ) Change in fair value of promissory note 43 Balance as of September 30, 2018 $ — Convertible debt investment: In 2014 and 2015, we invested $27.9 million , in the form of zero coupon convertible debt, in Shorelight Holdings, LLC (“Shorelight”), the parent company of Shorelight Education, a U.S.-based company that partners with leading nonprofit universities to increase access to and retention of international students, boost institutional growth, and enhance an institution’s global footprint. The notes will mature on July 1, 2020 , unless converted earlier. To determine the appropriate accounting treatment for our investment, we performed a variable interest entity (“VIE”) analysis and concluded that Shorelight does not meet the definition of a VIE. We also reviewed the characteristics of our investment to confirm that the convertible notes are not in-substance common stock that would warrant equity method accounting. After we reviewed all of the terms of the investment, we concluded the appropriate accounting treatment to be that of an available-for-sale debt security. The convertible debt investment is carried at fair value with unrealized holding gains and losses excluded from earnings and reported in other comprehensive income. We estimate the fair value of our investment using a Monte Carlo simulation model, cash flow projections discounted at a risk-adjusted rate, and certain assumptions related to equity volatility, default probability, and recovery rate, all of which are Level 3 inputs. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of the investment, which would result in different impacts to our consolidated balance sheet and comprehensive income. Actual results may differ from our estimates. The fair value of the convertible debt investment is recorded in long-term investment on our consolidated balance sheets. The table below sets forth the changes in the balance of the convertible debt investment for the nine months ended September 30, 2018 . Convertible Debt Investment Balance as of December 31, 2017 $ 39,904 Change in fair value of convertible debt investment 6,044 Balance as of September 30, 2018 $ 45,948 Deferred compensation assets: We have a non-qualified deferred compensation plan (the "Plan") for the members of our board of directors and a select group of our employees. The deferred compensation liability is funded by the Plan assets, which consist of life insurance policies maintained within a trust. The cash surrender value of the life insurance policies approximates fair value and is based on third-party broker statements which provide the fair value of the life insurance policies' underlying investments, which are Level 2 inputs. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The Plan assets are included in other non-current assets on our consolidated balance sheets. Realized and unrealized gains (losses) from the deferred compensation assets are recorded to other income (expense), net in our consolidated statements of operations. Contingent consideration for business acquisitions: We estimate the fair value of acquisition-related contingent consideration using either a probability-weighted assessment of the specific financial performance targets being achieved or a Monte Carlo simulation model, as appropriate. These fair value measurements are based on significant inputs not observable in the market and thus represent Level 3 inputs. The significant unobservable inputs used in the fair value measurements of our contingent consideration are our measures of the estimated payouts based on internally generated financial projections on a probability-weighted basis and discount rates, which typically reflect a risk-free rate. The fair value of the contingent consideration is reassessed quarterly based on assumptions used in our latest projections and input provided by practice leaders and management. Any change in the fair value estimate is recorded in our consolidated statement of operations for that period. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of our contingent consideration liability, which would result in different impacts to our consolidated balance sheets and consolidated statements of operations. Actual results may differ from our estimates. The table below sets forth the changes in the balance of the contingent consideration for business acquisitions for the nine months ended September 30, 2018 . Contingent Consideration for Business Acquisitions Balance as of December 31, 2017 $ 22,828 Payments (7,750 ) Remeasurement of contingent consideration for business acquisitions (2,463 ) Acquisition 212 Unrealized loss due to foreign currency translation 62 Balance as of September 30, 2018 $ 12,889 Financial assets and liabilities not recorded at fair value are as follows: Senior Secured Credit Facility The carrying value of our borrowings outstanding under our senior secured credit facility is stated at cost. Our carrying value approximates fair value, using Level 2 inputs, as the senior secured credit facility bears interest at variable rates based on current market rates as set forth in the Amended Credit Agreement. Refer to Note 8 “Financing Arrangements” for additional information on our senior secured credit facility. Promissory Note due 2024 The carrying value of our promissory note due 2024 is stated at cost. Our carrying value approximates fair value, using Level 2 inputs, as the promissory note bears interest at rates based on current market rates as set forth in the terms of the promissory note. Refer to Note 8 “Financing Arrangements” for additional information on our promissory note due 2024. Convertible Notes The carrying amount and estimated fair value of the Convertible Notes are as follows: September 30, 2018 December 31, 2017 Carrying Amount Estimated Fair Value Carrying Estimated 1.25% convertible senior notes due 2019 $ 240,209 $ 241,650 $ 233,140 $ 232,578 The differences between the $250 million principal amount of the Convertible Notes and the carrying amounts shown above represent the unamortized debt discount and issuance costs. As of September 30, 2018 and December 31, 2017 , the carrying value of the equity component of $39.3 million was unchanged from the date of issuance. Refer to Note 8 “Financing Arrangements” for additional information on our Convertible Notes. The estimated fair value of the Convertible Notes was determined based on the quoted bid price of the Convertible Notes in an over-the-counter market, which is a Level 2 input, on the last day of trading for the quarters ended September 30, 2018 and December 31, 2017 . Based on the closing price of our common stock of $49.40 on September 30, 2018 , the if-converted value of the Convertible Notes was less than the principal amount. Cash and cash equivalents are stated at cost, which approximates fair market value. The carrying values of all other financial instruments not described above reasonably approximate fair market value due to the nature of the financial instruments and the short-term maturity of these items. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The tables below set forth the components of other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended Three Months Ended Before Tax Net of Before Tax Net of Other comprehensive income (loss): Foreign currency translation adjustments $ (579 ) $ — $ (579 ) $ 609 $ — $ 609 Unrealized loss on investment $ (1,151 ) $ 299 $ (852 ) $ (3,609 ) $ 1,409 $ (2,200 ) Unrealized gain on cash flow hedges: Change in fair value $ 301 $ (78 ) $ 223 $ 41 $ (16 ) $ 25 Reclassification adjustments into earnings (23 ) 6 (17 ) (3 ) 1 (2 ) Net unrealized gain $ 278 $ (72 ) $ 206 $ 38 $ (15 ) $ 23 Other comprehensive loss $ (1,452 ) $ 227 $ (1,225 ) $ (2,962 ) $ 1,394 $ (1,568 ) Nine Months Ended Nine Months Ended Before Taxes Tax (Expense) Benefit Net of Taxes Before Taxes Tax (Expense) Benefit Net of Taxes Other comprehensive income (loss): Foreign currency translation adjustments $ (1,499 ) $ — $ (1,499 ) $ 1,835 $ — $ 1,835 Unrealized gain (loss) on investment $ 6,044 $ (1,571 ) $ 4,473 $ (2,738 ) $ 1,069 $ (1,669 ) Unrealized gain (loss) on cash flow hedges: Change in fair value $ 1,096 $ (285 ) $ 811 $ (41 ) $ 16 $ (25 ) Reclassification adjustments into earnings 13 (3 ) 10 36 (15 ) 21 Net unrealized gain (loss) $ 1,109 $ (288 ) $ 821 $ (5 ) $ 1 $ (4 ) Other comprehensive income (loss) $ 5,654 $ (1,859 ) $ 3,795 $ (908 ) $ 1,070 $ 162 The before tax amounts reclassified from accumulated other comprehensive income related to our cash flow hedges are recorded to interest expense, net of interest income. Accumulated other comprehensive income, net of tax, includes the following components: Foreign Currency Translation Available-for-Sale Investment Cash Flow Hedges Total Balance, December 31, 2017 $ 1,149 $ 8,812 $ 409 $ 10,370 Current period change (1,499 ) 4,473 821 3,795 Balance, September 30, 2018 $ (350 ) $ 13,285 $ 1,230 $ 14,165 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended September 30, 2018 , our effective tax rate was 14.4% as we recognized income tax expense from continuing operations of $1.4 million on income from continuing operations of $9.6 million . The effective tax rate of 14.4% was more favorable than the statutory rate, inclusive of state income taxes, of 26.0% , primarily due to a discrete tax benefit of $0.8 million for U.S. federal return to provision adjustments related to the 2017 corporate income tax return, which had a favorable impact of 8.6% on the effective tax rate. In addition, the third quarter of 2018 included a discrete tax benefit of $0.4 million for foreign return to provision adjustments, which had a favorable impact of 3.7% on the effective tax rate. For the three months ended September 30, 2017 , we recognized income tax benefit from continuing operations of $2.0 million on income from continuing operations of $2.1 million , which resulted in an effective tax rate of (92.4)% . This rate was more favorable than the statutory rate, inclusive of state income taxes, primarily due to recognizing a $2.7 million tax benefit related to a previously unrecognized tax benefit from our "check-the-box" election made in 2014 to treat one of our wholly-owned foreign subsidiaries as a disregarded entity for U.S federal income tax purposes. This benefit was partially offset by $0.6 million of tax expense recorded in the third quarter of 2017 to correct an error that occurred in the second quarter of 2017. For the nine months ended September 30, 2018 , our effective tax rate was 28.6% as we recognized income tax expense from continuing operations of $4.4 million on income from continuing operations of $15.3 million . The effective tax rate for the nine months ended September 30, 2018 was less favorable than the statutory rate, inclusive of state income taxes, of 26.0% , primarily due to discrete tax expense of $1.2 million for share-based compensation awards that vested during the first quarter of 2018, which had an unfavorable impact of 8.1% on the effective tax rate. This unfavorable discrete item was partially offset by a $0.9 million tax benefit recorded in the third quarter of 2018 related to U.S. federal and foreign return to provision adjustments, which had a favorable impact of 6.1% on the effective tax rate. For the nine months ended September 30, 2017 , our effective tax rate was 26.1% as we recognized income tax benefit from continuing operations of $49.7 million on a loss from continuing operations of $190.9 million . The effective tax rate for the nine months ended September 30, 2017 was less favorable than the statutory rate, inclusive of state income taxes, primarily due to the $61.2 million non-deductible portion of the goodwill impairment charge recorded in the second quarter of 2017, as well as $1.8 million of discrete tax expense for share-based compensation. These unfavorable discrete items were partially offset by a $2.7 million tax benefit recorded in the third quarter of 2017 related to a previously unrecognized tax benefit from our 2014 "check-the-box" election. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act ("2017 Tax Reform"), a tax reform bill which, among other items, reduced the corporate federal income tax rate from 35% to 21% and moved from a worldwide tax system to a territorial system. During the fourth quarter of 2017, we estimated the remeasurement of our net deferred taxes based on the new lower rate, as well as provided for additional one-time income tax expense estimates primarily related to the transition tax on accumulated foreign earnings and elimination of foreign tax credits for dividends that are subject to the 100 percent exemption. During the three and nine months ended September 30, 2018 , we recorded a tax benefit of $0.7 million and $0.6 million , respectively, primarily related to the U.S. federal return to provision adjustments for the remeasurement of our net deferred taxes based on the new lower rate. We continue to analyze the impact of the 2017 Tax Reform, and, in accordance with Staff Accounting Bulletin No. 118, which was issued as a result of the 2017 Tax Reform, we will finalize the analysis no later than one year from the enactment date. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Litigation During the second quarter of 2018, we reached a settlement agreement related to Huron's claim in a class action lawsuit, resulting in a gain of $2.5 million , which is recorded in other losses (gains), net on our consolidated statement of operations. We collected the $2.5 million cash settlement during the second quarter of 2018. From time to time, we are involved in legal proceedings and litigation arising in the ordinary course of business. As of the date of this Quarterly Report on Form 10-Q, we are not a party to any litigation or legal proceeding that, in the current opinion of management, could have a material adverse effect on our financial position or results of operations. However, due to the risks and uncertainties inherent in legal proceedings, actual results could differ from current expected results. Guarantees Guarantees in the form of letters of credit totaling $1.6 million and $1.9 million were outstanding at September 30, 2018 and December 31, 2017 , primarily to support certain office lease obligations. In connection with certain business acquisitions, we may be required to pay post-closing consideration to the sellers if specific financial performance targets are met over a number of years as specified in the related purchase agreements. As of September 30, 2018 and December 31, 2017 , the total estimated fair value of our contingent consideration liabilities was $12.9 million and $22.8 million , respectively. To the extent permitted by law, our bylaws and articles of incorporation require that we indemnify our officers and directors against judgments, fines and amounts paid in settlement, including attorneys’ fees, incurred in connection with civil or criminal action or proceedings, as it relates to their services to us if such person acted in good faith. Although there is no limit on the amount of indemnification, we may have recourse against our insurance carrier for certain payments made. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker, who is our chief executive officer, manages the business under three operating segments, which are our reportable segments: Healthcare, Business Advisory, and Education. • Healthcare Our Healthcare segment has a depth of expertise in care transformation, financial and operational excellence, technology and analytics, and leadership development. We serve national and regional hospitals and integrated health systems, academic medical centers, community hospitals, and medical groups. Our solutions help clients evolve and adapt to the rapidly changing healthcare environment and achieve growth, optimize performance, enhance profitability, improve quality and clinical outcomes, and drive physician, patient, and employee engagement across the enterprise. We help organizations transform and innovate their delivery model to focus on patient wellness by improving quality outcomes, minimizing care variation and fundamentally improving patient and population health. Our consultants partner with clients to help build and sustain today’s business to invest in the future by reducing complexity, improving operational efficiency and growing market share. We enable the healthcare of the future by identifying, integrating and optimizing technology investments to collect data that transforms care delivery and improves patient outcomes. We also develop future leaders capable of driving meaningful operational and organizational change and who transform the patient experience. • Business Advisory Our Business Advisory segment provides services to large and middle market organizations, not-for-profit organizations, lending institutions, law firms, investment banks and private equity firms. We assist clients in a broad range of industries and across the spectrum from healthy, well-capitalized companies to organizations in transition, as well as creditors, equity owners, and other key constituents. Our Business Advisory professionals resolve complex business issues and enhance client enterprise value through a suite of services including capital advisory, transaction advisory, operational improvement, restructuring and turnaround, valuation, and dispute advisory. Our Enterprise Solutions and Analytics professionals deliver technology and analytic solutions that enable organizations to manage and optimize their financial performance, operational efficiency, and client or stakeholder experience. Our Strategy and Innovation professionals collaborate with clients across a range of industries to identify new growth opportunities, build new ventures and capabilities, and accelerate organizational change. Our Life Sciences professionals provide strategic solutions to help pharmaceutical, medical device, and biotechnology companies deliver more value to patients, payers, and providers, and comply with regulations. • Education Our Education segment provides management consulting and technology solutions to higher education institutions and academic medical centers. We partner with clients to address challenges relating to business and technology strategy, financial management, operational and organizational effectiveness, research administration, and regulatory compliance. Our institutional strategy, market research, budgeting and financial management, business operations and student life cycle management solutions align missions with business priorities, improve quality and reduce costs institution-wide. Our technology strategy, enterprise applications, and analytic solutions transform and optimize operations, deliver time and cost savings, and enhance the student experience. Our research enterprise solutions assist clients in identifying and implementing institutional research strategy, optimizing clinical research operations, improving financial management and cost reimbursement, improving service to faculty, and mitigating risk compliance. Segment operating income consists of the revenues generated by a segment, less the direct costs of revenue and selling, general and administrative expenses that are incurred directly by the segment. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. These administrative function costs include costs for corporate office support, certain office facility costs, costs relating to accounting and finance, human resources, legal, marketing, information technology, and company-wide business development functions, as well as costs related to overall corporate management. The table below sets forth information about our operating segments for the three and nine months ended September 30, 2018 and 2017 , along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Healthcare: Revenues $ 90,417 $ 79,582 $ 271,812 $ 261,261 Operating income $ 26,640 $ 25,778 $ 78,172 $ 83,580 Segment operating income as a percentage of segment revenues 29.5 % 32.4 % 28.8 % 32.0 % Business Advisory: Revenues $ 57,175 $ 55,372 $ 170,790 $ 157,753 Operating income $ 11,815 $ 12,832 $ 35,031 $ 34,890 Segment operating income as a percentage of segment revenues 20.7 % 23.2 % 20.5 % 22.1 % Education: Revenues $ 50,856 $ 41,422 $ 147,069 $ 127,629 Operating income $ 15,014 $ 7,762 $ 37,694 $ 31,772 Segment operating income as a percentage of segment revenues 29.5 % 18.7 % 25.6 % 24.9 % Total Company: Revenues $ 198,448 $ 176,376 $ 589,671 $ 546,643 Reimbursable expenses 21,296 17,982 59,648 55,862 Total revenues and reimbursable expenses $ 219,744 $ 194,358 $ 649,319 $ 602,505 Segment operating income $ 53,469 $ 46,372 $ 150,897 $ 150,242 Items not allocated at the segment level: Other operating expenses 30,460 29,448 94,585 92,643 Other losses (gains), net 887 880 (4,990 ) (222 ) Depreciation and amortization 8,561 9,946 26,281 28,549 Goodwill impairment charge (1) — — — 209,600 Other expense, net 3,921 3,950 19,767 10,607 Income (loss) from continuing operations before taxes $ 9,640 $ 2,148 $ 15,254 $ (190,935 ) (1) The goodwill impairment charge is not allocated at the segment level because the underlying goodwill asset is reflective of our corporate investment in the segments. We do not include the impact of goodwill impairment charges in our evaluation of segment performance. The following table illustrates the disaggregation of revenues by billing arrangements, employee types, and timing of revenue recognition, including a reconciliation of the disaggregated revenues to revenues from our three operating segments for the three and nine months ended September 30, 2018 . Three months ended September 30, 2018 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 60,462 $ 24,129 $ 9,259 $ 93,850 Time and expense 15,723 32,197 37,654 85,574 Performance-based 8,372 (60 ) — 8,312 Software support, maintenance and subscriptions 5,860 909 3,943 10,712 Total $ 90,417 $ 57,175 $ 50,856 $ 198,448 Employee Type (1) Revenue generated by full-time billable consultants $ 62,409 $ 54,379 $ 44,876 $ 161,664 Revenue generated by full-time equivalents 28,008 2,796 5,980 36,784 Total $ 90,417 $ 57,175 $ 50,856 $ 198,448 Timing of Revenue Recognition Revenue recognized over time $ 88,372 $ 57,175 $ 50,104 $ 195,651 Revenue recognized at a point in time 2,045 — 752 2,797 Total $ 90,417 $ 57,175 $ 50,856 $ 198,448 Nine months ended September 30, 2018 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 182,491 $ 70,103 $ 28,699 $ 281,293 Time and expense 42,755 94,357 108,019 245,131 Performance-based 27,776 3,117 — 30,893 Software support, maintenance and subscriptions 18,790 3,213 10,351 32,354 Total $ 271,812 $ 170,790 $ 147,069 $ 589,671 Employee Type (1) Revenue generated by full-time billable consultants $ 183,820 $ 162,564 $ 128,613 $ 474,997 Revenue generated by full-time equivalents 87,992 8,226 18,456 114,674 Total $ 271,812 $ 170,790 $ 147,069 $ 589,671 Timing of Revenue Recognition Revenue recognized over time $ 266,320 $ 170,790 $ 144,118 $ 581,228 Revenue recognized at a point in time 5,492 — 2,951 8,443 Total $ 271,812 $ 170,790 $ 147,069 $ 589,671 (1) Full-time billable consultants consist of our full-time professionals who provide consulting services to our clients and are billable to our clients based on the number of hours worked. Full-time equivalent professionals consist of our cultural transformation consultants within our Studer Group solution, which include coaches and their support staff, as well as consultants who work variable schedules as needed by our clients and full-time employees who provide software support and maintenance services to our clients. At September 30, 2018 and December 31, 2017 , no single client accounted for greater than 10% of our combined receivables and unbilled services balances. During the three and nine months ended September 30, 2018 and 2017, no single client generated greater than 10% of our consolidated revenues. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements reflect the financial position, results of operations, and cash flows as of and for the three and nine months ended September 30, 2018 and 2017 . These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods presented in conformity with GAAP. These financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2017 included in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for the periods ended March 31, 2018 and June 30, 2018. Our results for any interim period are not necessarily indicative of results for a full year or any other interim period. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition We generate substantially all of our revenues from providing professional services to our clients. We also generate revenues from software licenses; software support, maintenance and subscriptions to our cloud-based analytic tools and solutions; speaking engagements; conferences; and publications. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, we allocate the total transaction price to each performance obligation based on its relative standalone selling price, which is determined based on our overall pricing objectives, taking into consideration market conditions and other factors. Revenue is recognized when control of the goods and services provided are transferred to our customers and in an amount that reflects the consideration we expect to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when we satisfy the performance obligations. We typically satisfy our performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to our cloud-based analytic tools and solutions are typically satisfied evenly over the course of the service period. Other performance obligations, such as certain software licenses, speaking engagements, conferences, and publications, are satisfied at a point in time. We generate our revenues under four types of billing arrangements: fixed-fee (including software license revenue); time-and-expense; performance-based; and software support, maintenance and subscriptions. In fixed-fee billing arrangements, we agree to a pre-established fee in exchange for a predetermined set of professional services. We set the fees based on our estimates of the costs and timing for completing the engagements. We generally recognize revenues under fixed-fee billing arrangements using a proportionate performance approach, which is based on work completed to-date versus our estimates of the total services to be provided under the engagement. Contracts within our Studer Group solution are fixed-fee partner contracts with multiple performance obligations, which primarily consist of coaching services, as well as speaking engagements, conferences, publications and software products (“Partner Contracts”). Revenues for coaching services and software products are generally recognized on a straight-line basis over the length of the contract. All other revenues under Partner Contracts, including speaking engagements, conferences and publications, are recognized at the time the goods or services are provided. Estimates of total engagement revenues and cost of services are monitored regularly during the term of the engagement. If our estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. We also generate revenues from software licenses for our revenue cycle management software and research administration and compliance software. Licenses for our revenue cycle management software are sold only as a component of our consulting projects, and the services we provide are essential to the functionality of the software. Therefore, revenues from these software licenses are recognized over the term of the related consulting services contract. License revenue from our research administration and compliance software is generally recognized in the month in which the software is delivered. Time-and-expense billing arrangements require the client to pay based on the number of hours worked by our revenue-generating professionals at agreed upon rates. Time-and-expense arrangements also include certain speaking engagements, conferences, and publications purchased by our clients outside of Partner Contracts within our Studer Group solution. We recognize revenues under time-and-expense arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows us to recognize revenue in the amount that we have a right to invoice based on the number of hours worked and the agreed upon hourly rates or the value of the speaking engagements, conferences or publications purchased by our clients. In performance-based billing arrangements, fees are tied to the attainment of contractually defined objectives. We enter into performance-based engagements in essentially two forms. First, we generally earn fees that are directly related to the savings formally acknowledged by the client as a result of adopting our recommendations for improving operational and cost effectiveness in the areas we review. Second, we have performance-based engagements in which we earn a success fee when and if certain predefined outcomes occur. We recognize revenue under performance-based billing arrangements using the following steps: 1) estimate variable consideration using a probability-weighted assessment of the fees to be earned, 2) apply a constraint to the estimated variable consideration to limit the amount that could be reversed when the uncertainty is resolved (the “constraint”), and 3) recognize revenue of estimated variable consideration, net of the constraint, based on work completed to-date versus our estimates of the total services to be provided under the engagement. Clients that have purchased one of our software licenses can pay an annual fee for software support and maintenance. We also generate subscription revenue from our cloud-based analytic tools and solutions. Software support, maintenance and subscription revenues are recognized ratably over the support or subscription period. These fees are billed in advance and included in deferred revenues until recognized. Provisions are recorded for the estimated realization adjustments on all engagements, including engagements for which fees are subject to review by the bankruptcy courts. Expense reimbursements that are billable to clients are included in total revenues and reimbursable expenses. Under fixed-fee billing arrangements, we estimate the total amount of reimbursable expenses to be incurred over the course of the engagement and recognize the estimated amount as revenue using a proportionate performance approach, which is based on work completed to-date versus our estimates of the total services to be provided under the engagement. Under time-and-expense billing arrangements we recognize reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Subcontractors that are billed to clients at cost are also included in reimbursable expenses. When billings do not specifically identify reimbursable expenses, we allocate the portion of the billings equivalent to these expenses to reimbursable expenses. The payment terms and conditions in our customer contracts vary. Differences between the timing of billings and the recognition of revenue are recognized as either unbilled services or deferred revenues in the accompanying consolidated balance sheets. Revenues recognized for services performed but not yet billed to clients are recorded as unbilled services. Revenues recognized, but for which we are not yet entitled to bill because certain events, such as the completion of the measurement period or client approval, must occur, are recorded as contract assets and included within unbilled services. Client prepayments and retainers are classified as deferred revenues and recognized over future periods as earned in accordance with the applicable engagement agreement. |
Earnings Per Share, Policy | Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period, excluding unvested restricted common stock. Diluted earnings per share reflects the potential reduction in earnings per share that could occur if securities or other contracts to issue common stock were exercised or converted into common stock under the treasury stock method. Such securities or other contracts include unvested restricted stock awards, outstanding common stock options, convertible senior notes, and outstanding warrants, to the extent dilutive. In periods we report a net loss from continuing operations, diluted weighted average common shares outstanding excludes all potential common stock equivalents as their impact on diluted net loss from continuing operations per share would be anti-dilutive. |
Accounting For Convertible Senior Notes | We have separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar liability that does not have an associated convertible feature, assuming our non-convertible debt borrowing rate. |
Derivatives and Hedging | We recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. We have designated this derivative instrument as a cash flow hedge. Therefore, changes in the fair value of the derivative instrument are recorded to other comprehensive income (“OCI”) and reclassified into interest expense upon settlement. |
Fair Value of Financial Instruments, Policy | Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value and requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy consists of three levels based on the objectivity of the inputs as follows: Level 1 Inputs Quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Inputs Unobservable inputs for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. |
Segment Reporting, Policy | Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker, who is our chief executive officer, manages the business under three operating segments, which are our reportable segments: Healthcare, Business Advisory, and Education. |
Commissions Expense, Policy [Policy Text Block] | Capitalized Sales Commissions Sales commissions earned by our sales professionals are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions with an expected amortization period greater than one year are deferred and amortized on a straight-line basis over the period of the associated contract. We elected to apply the practical expedient to expense sales commissions as incurred when the expected amortization period is one year or less. Amortization expense is recorded to direct costs. |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements [Abstract] | |
ScheduleofCumulativeEffectAdjustments [Table Text Block] | The impact of the cumulative effect adjustment on our consolidated balance sheet upon adoption was as follows: As of December 31, 2017 Cumulative Effect Adjustment As of January 1, 2018 Assets Unbilled services, net (1) $ 57,618 $ 2,369 $ 59,987 Prepaid expenses and other current assets $ 10,951 $ 104 $ 11,055 Deferred income taxes, net $ 16,752 $ (687 ) $ 16,065 Other non-current assets $ 25,375 $ 170 $ 25,545 Equity Retained earnings $ 180,443 $ 1,956 $ 182,399 (1) The cumulative effect adjustment related to the portion of performance-based billing arrangements that have been earned as of the adoption date but for which we had not recognized as revenue under previous revenue recognition guidance was recorded as a contract asset within unbilled services, net on our consolidated balance sheet. Refer to Note 6 "Revenues" for additional information on our contract assets. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The impact of adoption on our consolidated balance sheet as of September 30, 2018 and consolidated statements of operations for the three and nine months ended September 30, 2018 was as follows: Balance Sheet As of September 30, 2018 As reported under ASC 606 As computed under ASC 605 Effect of Adoption Increase/(Decrease) Assets Receivables from clients, net $ 108,747 $ 108,083 $ 664 Unbilled services, net $ 75,290 $ 70,140 $ 5,150 Income tax receivable $ 1,754 $ 2,521 $ (767 ) Prepaid expenses and other current assets $ 13,328 $ 13,146 $ 182 Deferred income taxes, net $ 14,028 $ 14,715 $ (687 ) Other non-current assets $ 32,035 $ 31,808 $ 227 Liabilities Accrued payroll and related benefits $ 83,069 $ 83,103 $ (34 ) Deferred revenues $ 30,043 $ 29,379 $ 664 Equity Retained earnings $ 192,984 $ 188,845 $ 4,139 Statement of Operations Three Months Ended September 30, 2018 As reported under ASC 606 As computed under ASC 605 Effect of Adoption Increase/(Decrease) Revenues (1) $ 198,448 $ 202,326 $ (3,878 ) Direct costs $ 128,596 $ 128,684 $ (88 ) Income from continuing operations before taxes $ 9,640 $ 13,430 $ (3,790 ) Income tax expense 1,391 2,376 (985 ) Net income from continuing operations $ 8,249 $ 11,054 $ (2,805 ) Earnings per share from continuing operations - basic $ 0.38 $ 0.51 $ (0.13 ) Earnings per share from continuing operations - diluted $ 0.37 $ 0.50 $ (0.13 ) Nine Months Ended September 30, 2018 As reported under ASC 606 As computed under ASC 605 Effect of Adoption Increase/(Decrease) Revenues (1) $ 589,671 $ 586,890 $ 2,781 Direct costs $ 388,956 $ 389,125 $ (169 ) Income from continuing operations before taxes $ 15,254 $ 12,304 $ 2,950 Income tax expense 4,365 3,598 767 Net income from continuing operations $ 10,889 $ 8,706 $ 2,183 Earnings per share from continuing operations - basic $ 0.50 $ 0.40 $ 0.10 Earnings per share from continuing operations - diluted $ 0.50 $ 0.40 $ 0.10 (1) The change in revenues due to the adoption of ASC 606 relates to revenue recognized for performance-based fee billing arrangements within our Healthcare segment. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Summary of Fair Value of Consideration Transferred | The acquisition date fair value of the consideration transferred for Innosight was $113.6 million , which consisted of the following: Fair value of consideration transferred March 1, 2017 Cash $ 90,725 Common stock 9,560 Contingent consideration liability 12,050 Net working capital adjustment 1,272 Total consideration transferred $ 113,607 |
Allocation of the Purchase Price to the Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase price to the fair value of assets acquired and liabilities assumed as of the acquisition date. March 1, 2017 Assets acquired: Accounts receivable $ 7,752 Unbilled services 1,881 Prepaid expenses and other current assets 468 Property and equipment 419 Intangible assets 18,015 Liabilities assumed: Accounts payable 531 Accrued expenses and other current liabilities 894 Accrued payroll and related benefits 883 Deferred revenues 30 Total identifiable net assets 26,197 Goodwill 87,410 Total purchase price $ 113,607 |
Schedule of Components of Identifiable Intangible Assets Acquired and their Estimated Useful Lives | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the acquisition date. Fair Value Useful Life (in years) Customer relationships $ 9,500 6 Trade name 6,000 6 Customer contracts 1,000 1 Non-compete agreements 1,300 5 Favorable lease contract 215 1 Total intangible assets subject to amortization $ 18,015 |
Summary of Supplemental Pro Forma Consolidated Results of Operations | The following unaudited supplemental pro forma information summarizes the combined results of operations of Huron and Innosight as though the companies were combined on January 1, 2016. Three Months Ended Nine Months Ended Revenues $ 176,376 $ 555,768 Net income (loss) from continuing operations $ 4,170 $ (137,922 ) Net income (loss) from continuing operations per share - basic $ 0.19 $ (6.43 ) Net income (loss) from continuing operations per share - diluted $ 0.19 $ (6.43 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The table below sets forth the changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2018 . Healthcare Business Advisory Education Total Balance as of December 31, 2017: Goodwill $ 636,810 $ 302,187 $ 102,829 $ 1,041,826 Accumulated impairment losses (208,081 ) (187,995 ) — (396,076 ) Goodwill, net as of December 31, 2017 428,729 114,192 102,829 645,750 Goodwill recorded in connection with business acquisitions — 186 — 186 Foreign currency translation — (393 ) — (393 ) Goodwill, net as of September 30, 2018 $ 428,729 $ 113,985 $ 102,829 $ 645,543 |
Intangible Assets | Intangible assets as of September 30, 2018 and December 31, 2017 consisted of the following: As of September 30, 2018 As of December 31, 2017 Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 4 to 13 $ 98,371 $ 56,611 $ 106,195 $ 51,588 Trade names 5 to 6 28,930 22,104 29,016 18,915 Customer contracts 4 25,097 24,999 25,154 24,751 Technology and software 3 to 5 5,694 2,466 9,340 5,098 Non-compete agreements 3 to 5 4,710 3,048 5,163 2,637 Publishing content 3 — — 3,300 3,163 Favorable lease contract 3 720 591 720 425 Total $ 163,522 $ 109,819 $ 178,888 $ 106,577 |
Schedule of Future Amortization Expense | The table below sets forth the estimated annual amortization expense for the year ending December 31, 2018 and each of the five succeeding years for the definite-lived intangible assets recorded as of September 30, 2018 . Year Ending December 31, Estimated Amortization Expense 2018 $ 23,863 2019 $ 17,206 2020 $ 12,083 2021 $ 8,064 2022 $ 6,090 2023 $ 3,512 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | Earnings (loss) per share under the basic and diluted computations are as follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income (loss) from continuing operations $ 8,249 $ 4,132 $ 10,889 $ (141,195 ) Income (loss) from discontinued operations, net of tax 228 238 (304 ) 690 Net income (loss) $ 8,477 $ 4,370 $ 10,585 $ (140,505 ) Weighted average common shares outstanding – basic 21,745 21,505 21,683 21,413 Weighted average common stock equivalents 365 117 264 — Weighted average common shares outstanding – diluted 22,110 21,622 21,947 21,413 Net earnings (loss) per basic share: Net income (loss) from continuing operations $ 0.38 $ 0.19 $ 0.50 $ (6.59 ) Income (loss) from discontinued operations, net of tax 0.01 0.01 (0.01 ) 0.03 Net income (loss) $ 0.39 $ 0.20 $ 0.49 $ (6.56 ) Net earnings (loss) per diluted share: Net income (loss) from continuing operations $ 0.37 $ 0.19 $ 0.50 $ (6.59 ) Income (loss) from discontinued operations, net of tax 0.01 0.01 (0.02 ) 0.03 Net income (loss) $ 0.38 $ 0.20 $ 0.48 $ (6.56 ) |
Summary of Anti-dilutive Securities Excluded from Computation of Weighted Average Common Stock Equivalents | The number of anti-dilutive securities excluded from the computation of the weighted average common stock equivalents presented above were as follows: As of September 30, 2018 2017 Unvested restricted stock awards 11 627 Outstanding common stock options — 194 Convertible senior notes 3,129 3,129 Warrants related to the issuance of convertible senior notes 3,129 3,129 Total anti-dilutive securities 6,269 7,079 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Amounts of Debt | A summary of the carrying amounts of our debt follows: September 30, 2018 December 31, 2017 1.25% convertible senior notes due 2019 $ 240,209 $ 233,140 Senior secured credit facility 71,500 105,000 Promissory note due 2024 4,493 4,868 Total long-term debt $ 316,202 $ 343,008 Current maturities of debt (1) (511 ) (501 ) Long-term debt, net of current portion $ 315,691 $ 342,507 (1) The current maturities of debt are included as a component of accrued expenses and other current liabilities on our consolidated balance sheets. |
Schedule of Maturities of Long-term Debt | Below is a summary of the scheduled remaining principal payments of our debt as of September 30, 2018 . Principal Payments of Long-Term Debt 2018 $ 126 2019 $ 250,514 2020 $ 529 2021 $ 544 2022 $ 559 Thereafter $ 73,721 |
Schedule of Convertible Notes | As of September 30, 2018 and December 31, 2017 , the Convertible Notes consisted of the following: September 30, 2018 December 31, 2017 Liability component: Proceeds $ 250,000 $ 250,000 Less: debt discount, net of amortization (8,530 ) (14,668 ) Less: debt issuance costs, net of amortization (1,261 ) (2,192 ) Net carrying amount $ 240,209 $ 233,140 Equity component (1) $ 39,287 $ 39,287 (1) Included in additional paid-in capital on the consolidated balance sheet. |
Summary of Interest Expense Recognized | The following table presents the amount of interest expense recognized related to the Convertible Notes for the periods presented. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Contractual interest coupon $ 781 $ 781 $ 2,344 $ 2,344 Amortization of debt discount 2,070 1,974 6,138 5,853 Amortization of debt issuance costs 312 306 931 915 Total interest expense $ 3,163 $ 3,061 $ 9,413 $ 9,112 |
Restructuring Charges Restructu
Restructuring Charges Restructuring Liability Rollforward (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The table below sets forth the changes in the carrying amount of our restructuring charge liability by restructuring type for the nine months ended September 30, 2018 . Employee Costs Office Space Reductions Other Total Balance as of December 31, 2017 $ 1,267 $ 4,247 $ — $ 5,514 Additions 1,259 896 151 2,306 Payments (1,861 ) (2,710 ) (152 ) (4,723 ) Adjustments (1) (47 ) 833 — 786 Non-cash items — (325 ) 1 (324 ) Balance as of September 30, 2018 $ 618 $ 2,941 $ — $ 3,559 (1) Adjustments for the nine months ended September 30, 2018 includes restructuring charges of $0.4 million related to updated lease assumptions for vacated office spaces directly related to discontinued operations. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Interest Rate Swaps Designated as Cash Flow Hedging Instruments | The table below sets forth additional information relating to the interest rate swap designated as a cash flow hedging instrument as of September 30, 2018 and December 31, 2017 . Fair Value (Derivative Asset and Liability) Balance Sheet Location September 30, December 31, Prepaid expenses and other current assets $ 341 $ — Other non-current assets $ 1,301 $ 581 Accrued expenses $ — $ 48 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below sets forth our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 . Level 1 Level 2 Level 3 Total September 30, 2018 Assets: Interest rate swap $ — $ 1,642 $ — $ 1,642 Convertible debt investment — — 45,948 45,948 Deferred compensation assets — 20,352 — 20,352 Total assets $ — $ 21,994 $ 45,948 $ 67,942 Liabilities: Contingent consideration for business acquisitions $ — $ — $ 12,889 $ 12,889 Total liabilities $ — $ — $ 12,889 $ 12,889 December 31, 2017 Assets: Interest rate swap $ — $ 533 $ — $ 533 Promissory note — — 1,078 1,078 Convertible debt investment — — 39,904 39,904 Deferred compensation assets — 17,786 — 17,786 Total assets $ — $ 18,319 $ 40,982 $ 59,301 Liabilities: Contingent consideration for business acquisitions $ — $ — $ 22,828 $ 22,828 Total liabilities $ — $ — $ 22,828 $ 22,828 |
Summary of Carrying Amount and Estimated Fair Value of Convertible Senior Notes | The carrying amount and estimated fair value of the Convertible Notes are as follows: September 30, 2018 December 31, 2017 Carrying Amount Estimated Fair Value Carrying Estimated 1.25% convertible senior notes due 2019 $ 240,209 $ 241,650 $ 233,140 $ 232,578 |
Contingent consideration for business acquisitions | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below sets forth the changes in the balance of the contingent consideration for business acquisitions for the nine months ended September 30, 2018 . Contingent Consideration for Business Acquisitions Balance as of December 31, 2017 $ 22,828 Payments (7,750 ) Remeasurement of contingent consideration for business acquisitions (2,463 ) Acquisition 212 Unrealized loss due to foreign currency translation 62 Balance as of September 30, 2018 $ 12,889 |
Convertible senior notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below sets forth the changes in the balance of the convertible debt investment for the nine months ended September 30, 2018 . Convertible Debt Investment Balance as of December 31, 2017 $ 39,904 Change in fair value of convertible debt investment 6,044 Balance as of September 30, 2018 $ 45,948 |
Promissory note | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below sets forth the changes in the balance of the promissory note for the nine months ended September 30, 2018 . Promissory Note Balance as of December 31, 2017 $ 1,078 Interest payments received (81 ) Principal payments received (1,040 ) Change in fair value of promissory note 43 Balance as of September 30, 2018 $ — |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss), Net of Tax | The tables below set forth the components of other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended Three Months Ended Before Tax Net of Before Tax Net of Other comprehensive income (loss): Foreign currency translation adjustments $ (579 ) $ — $ (579 ) $ 609 $ — $ 609 Unrealized loss on investment $ (1,151 ) $ 299 $ (852 ) $ (3,609 ) $ 1,409 $ (2,200 ) Unrealized gain on cash flow hedges: Change in fair value $ 301 $ (78 ) $ 223 $ 41 $ (16 ) $ 25 Reclassification adjustments into earnings (23 ) 6 (17 ) (3 ) 1 (2 ) Net unrealized gain $ 278 $ (72 ) $ 206 $ 38 $ (15 ) $ 23 Other comprehensive loss $ (1,452 ) $ 227 $ (1,225 ) $ (2,962 ) $ 1,394 $ (1,568 ) Nine Months Ended Nine Months Ended Before Taxes Tax (Expense) Benefit Net of Taxes Before Taxes Tax (Expense) Benefit Net of Taxes Other comprehensive income (loss): Foreign currency translation adjustments $ (1,499 ) $ — $ (1,499 ) $ 1,835 $ — $ 1,835 Unrealized gain (loss) on investment $ 6,044 $ (1,571 ) $ 4,473 $ (2,738 ) $ 1,069 $ (1,669 ) Unrealized gain (loss) on cash flow hedges: Change in fair value $ 1,096 $ (285 ) $ 811 $ (41 ) $ 16 $ (25 ) Reclassification adjustments into earnings 13 (3 ) 10 36 (15 ) 21 Net unrealized gain (loss) $ 1,109 $ (288 ) $ 821 $ (5 ) $ 1 $ (4 ) Other comprehensive income (loss) $ 5,654 $ (1,859 ) $ 3,795 $ (908 ) $ 1,070 $ 162 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated other comprehensive income, net of tax, includes the following components: Foreign Currency Translation Available-for-Sale Investment Cash Flow Hedges Total Balance, December 31, 2017 $ 1,149 $ 8,812 $ 409 $ 10,370 Current period change (1,499 ) 4,473 821 3,795 Balance, September 30, 2018 $ (350 ) $ 13,285 $ 1,230 $ 14,165 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Components of Segment Information | The table below sets forth information about our operating segments for the three and nine months ended September 30, 2018 and 2017 , along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Healthcare: Revenues $ 90,417 $ 79,582 $ 271,812 $ 261,261 Operating income $ 26,640 $ 25,778 $ 78,172 $ 83,580 Segment operating income as a percentage of segment revenues 29.5 % 32.4 % 28.8 % 32.0 % Business Advisory: Revenues $ 57,175 $ 55,372 $ 170,790 $ 157,753 Operating income $ 11,815 $ 12,832 $ 35,031 $ 34,890 Segment operating income as a percentage of segment revenues 20.7 % 23.2 % 20.5 % 22.1 % Education: Revenues $ 50,856 $ 41,422 $ 147,069 $ 127,629 Operating income $ 15,014 $ 7,762 $ 37,694 $ 31,772 Segment operating income as a percentage of segment revenues 29.5 % 18.7 % 25.6 % 24.9 % Total Company: Revenues $ 198,448 $ 176,376 $ 589,671 $ 546,643 Reimbursable expenses 21,296 17,982 59,648 55,862 Total revenues and reimbursable expenses $ 219,744 $ 194,358 $ 649,319 $ 602,505 Segment operating income $ 53,469 $ 46,372 $ 150,897 $ 150,242 Items not allocated at the segment level: Other operating expenses 30,460 29,448 94,585 92,643 Other losses (gains), net 887 880 (4,990 ) (222 ) Depreciation and amortization 8,561 9,946 26,281 28,549 Goodwill impairment charge (1) — — — 209,600 Other expense, net 3,921 3,950 19,767 10,607 Income (loss) from continuing operations before taxes $ 9,640 $ 2,148 $ 15,254 $ (190,935 ) (1) The goodwill impairment charge is not allocated at the segment level because the underlying goodwill asset is reflective of our corporate investment in the segments. We do not include the impact of goodwill impairment charges in our evaluation of segment performance. |
Disaggregation of Revenue [Table Text Block] | The following table illustrates the disaggregation of revenues by billing arrangements, employee types, and timing of revenue recognition, including a reconciliation of the disaggregated revenues to revenues from our three operating segments for the three and nine months ended September 30, 2018 . Three months ended September 30, 2018 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 60,462 $ 24,129 $ 9,259 $ 93,850 Time and expense 15,723 32,197 37,654 85,574 Performance-based 8,372 (60 ) — 8,312 Software support, maintenance and subscriptions 5,860 909 3,943 10,712 Total $ 90,417 $ 57,175 $ 50,856 $ 198,448 Employee Type (1) Revenue generated by full-time billable consultants $ 62,409 $ 54,379 $ 44,876 $ 161,664 Revenue generated by full-time equivalents 28,008 2,796 5,980 36,784 Total $ 90,417 $ 57,175 $ 50,856 $ 198,448 Timing of Revenue Recognition Revenue recognized over time $ 88,372 $ 57,175 $ 50,104 $ 195,651 Revenue recognized at a point in time 2,045 — 752 2,797 Total $ 90,417 $ 57,175 $ 50,856 $ 198,448 Nine months ended September 30, 2018 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 182,491 $ 70,103 $ 28,699 $ 281,293 Time and expense 42,755 94,357 108,019 245,131 Performance-based 27,776 3,117 — 30,893 Software support, maintenance and subscriptions 18,790 3,213 10,351 32,354 Total $ 271,812 $ 170,790 $ 147,069 $ 589,671 Employee Type (1) Revenue generated by full-time billable consultants $ 183,820 $ 162,564 $ 128,613 $ 474,997 Revenue generated by full-time equivalents 87,992 8,226 18,456 114,674 Total $ 271,812 $ 170,790 $ 147,069 $ 589,671 Timing of Revenue Recognition Revenue recognized over time $ 266,320 $ 170,790 $ 144,118 $ 581,228 Revenue recognized at a point in time 5,492 — 2,951 8,443 Total $ 271,812 $ 170,790 $ 147,069 $ 589,671 (1) Full-time billable consultants consist of our full-time professionals who provide consulting services to our clients and are billable to our clients based on the number of hours worked. Full-time equivalent professionals consist of our cultural transformation consultants within our Studer Group solution, which include coaches and their support staff, as well as consultants who work variable schedules as needed by our clients and full-time employees who provide software support and maintenance services to our clients. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Basis of Presentation - Additional Information [Abstract] | ||
Deferred Sales Commission | $ 0.4 | $ 0.4 |
Capitalized Contract Cost, Amortization | $ 0.1 | $ 0.1 |
New Accounting Pronouncements_2
New Accounting Pronouncements New Accounting Pronouncements - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
New Accounting Pronouncements [Abstract] | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 1,956 |
New Accounting Pronouncements C
New Accounting Pronouncements Cumulative Effect Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Retained Earnings Adjustments [Line Items] | ||||
Costs in Excess of Billings | $ 59,987 | $ 57,618 | ||
Prepaid Expense and Other Assets, Current | $ 13,328 | 11,055 | 10,951 | |
Deferred Tax Assets, Net | 16,065 | 16,752 | ||
Other non-current assets | 32,035 | 25,545 | 25,375 | |
Retained earnings | $ 192,984 | $ 182,399 | $ 180,443 | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 1,956 | |||
Costs in Excess of Billings, Current [Member] | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative Effect on Retained Earnings, before Tax | 2,369 | |||
Prepaid Expenses and Other Current Assets [Member] | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative Effect on Retained Earnings, before Tax | 104 | |||
Deferred Tax Asset, Net, Noncurrent [Member] | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative Effect on Retained Earnings, Tax | (687) | |||
Other Noncurrent Assets [Member] | ||||
Retained Earnings Adjustments [Line Items] | ||||
Cumulative Effect on Retained Earnings, before Tax | $ 170 |
New Accounting Pronouncements I
New Accounting Pronouncements Impact of Adoption - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables from clients, net | $ 108,747 | $ 101,778 | |
Costs in Excess of Billings, Current | 75,290 | 57,618 | |
Prepaid Expense and Other Assets, Current | 13,328 | $ 11,055 | 10,951 |
Income tax receivable | 1,754 | 4,039 | |
Deferred Tax Assets, Net, Noncurrent | 14,028 | 16,752 | |
Other non-current assets | 32,035 | 25,545 | 25,375 |
Accrued payroll and related benefits | 83,069 | 73,698 | |
Deferred revenues | 30,043 | 27,916 | |
Retained earnings | 192,984 | $ 182,399 | $ 180,443 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables from clients, net | 664 | ||
Costs in Excess of Billings, Current | 5,150 | ||
Prepaid Expense and Other Assets, Current | 182 | ||
Income tax receivable | (767) | ||
Deferred Tax Assets, Net, Noncurrent | 687 | ||
Other non-current assets | 227 | ||
Accrued payroll and related benefits | (34) | ||
Deferred revenues | 664 | ||
Retained earnings | 4,139 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables from clients, net | 108,083 | ||
Costs in Excess of Billings, Current | 70,140 | ||
Prepaid Expense and Other Assets, Current | 13,146 | ||
Income tax receivable | 2,521 | ||
Deferred Tax Assets, Net, Noncurrent | 14,715 | ||
Other non-current assets | 31,808 | ||
Accrued payroll and related benefits | 83,103 | ||
Deferred revenues | 29,379 | ||
Retained earnings | $ 188,845 |
New Accounting Pronouncements_3
New Accounting Pronouncements Impact of Adoption - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sales Revenue, Services, Net | $ 198,448 | $ 176,376 | $ 589,671 | $ 546,643 |
Direct costs | 128,596 | 113,775 | 388,956 | 343,185 |
Income (loss) from continuing operations before taxes | 9,640 | 2,148 | 15,254 | (190,935) |
Income tax expense (benefit) | 1,391 | (1,984) | 4,365 | (49,740) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 8,249 | $ 4,132 | $ 10,889 | $ (141,195) |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.38 | $ 0.19 | $ 0.50 | $ (6.59) |
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.37 | $ 0.19 | $ 0.50 | $ (6.59) |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sales Revenue, Services, Net | $ (3,878) | $ 2,781 | ||
Direct costs | (88) | (169) | ||
Income (loss) from continuing operations before taxes | (3,790) | 2,950 | ||
Income tax expense (benefit) | (985) | 767 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ (2,805) | $ 2,183 | ||
Income (Loss) from Continuing Operations, Per Basic Share | $ (0.13) | $ 0.10 | ||
Income (Loss) from Continuing Operations, Per Diluted Share | $ (0.13) | $ 0.10 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sales Revenue, Services, Net | $ 202,326 | $ 586,890 | ||
Direct costs | 128,684 | 389,125 | ||
Income (loss) from continuing operations before taxes | 13,430 | 12,304 | ||
Income tax expense (benefit) | 2,376 | 3,598 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 11,054 | $ 8,706 | ||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.51 | $ 0.40 | ||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.50 | $ 0.40 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 01, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||||||||
Acquisition date fair value based on closing price | $ 49.40 | $ 49.40 | |||||||
Business Combination, Contingent Consideration, Liability | $ 15,489 | $ 212 | |||||||
Revenues | $ 198,448 | $ 176,376 | $ 589,671 | $ 546,643 | |||||
Operating income | 13,561 | 6,098 | 35,021 | (180,328) | |||||
Intangible assets amortization expense | $ 5,900 | 8,800 | $ 18,200 | 26,400 | |||||
Innosight Holdings, LLC [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Pro Forma Adjustments, Additional or Decreased Expense | 100 | 500 | |||||||
Effective date of acquisition | Mar. 1, 2017 | ||||||||
Outstanding stock from the existing shareholders | 100.00% | ||||||||
Total consideration transferred | $ 113,607 | ||||||||
Cash | 90,725 | ||||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 89,000 | ||||||||
Common stock issued | 221,558 | ||||||||
Acquisition date fair value, common stock | $ 9,560 | ||||||||
Acquisition date fair value based on closing price | $ 43.15 | ||||||||
Business Combination, Contingent Consideration, Liability | $ 12,050 | ||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 35,000 | ||||||||
Weighted-average amortization period | 5 years 7 months | ||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 87,400 | ||||||||
Revenues | 11,000 | 27,200 | |||||||
Operating income | (600) | 800 | |||||||
Intangible assets amortization expense | $ 900 | $ 2,700 | |||||||
Expenses incurred | $ 300 | $ 1,400 | $ 1,700 |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Consideration Transferred (Detail) - USD ($) $ in Thousands | Mar. 01, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | |||
Business Combination, Contingent Consideration, Liability | $ 212 | $ 15,489 | |
Innosight Holdings, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 90,725 | ||
Common stock | 9,560 | ||
Business Combination, Contingent Consideration, Liability | 12,050 | ||
Net working capital adjustment | 1,272 | ||
Total consideration transferred | $ 113,607 |
Acquisitions - Allocation of th
Acquisitions - Allocation of the Purchase Price to the Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Mar. 01, 2017 |
Assets acquired: | |||
Costs in Excess of Billings, Current | $ 75,290 | $ 57,618 | |
Liabilities assumed: | |||
Goodwill | $ 645,543 | $ 645,750 | |
Innosight Holdings, LLC [Member] | |||
Assets acquired: | |||
Accounts receivable | $ 7,752 | ||
Costs in Excess of Billings, Current | 1,881 | ||
Prepaid expenses and other current assets | 468 | ||
Property and equipment | 419 | ||
Intangible assets | 18,015 | ||
Liabilities assumed: | |||
Accounts payable | 531 | ||
Accrued expenses and other current liabilities | 894 | ||
Accrued payroll and related benefits | 883 | ||
Deferred revenues | 30 | ||
Total identifiable net assets | 26,197 | ||
Goodwill | 87,410 | ||
Total purchase price | $ 113,607 |
Acquisitions - Schedule of Comp
Acquisitions - Schedule of Components of Identifiable Intangible Assets Acquired and their Estimated Useful Lives (Detail) - USD ($) $ in Thousands | Mar. 01, 2017 | Sep. 30, 2018 |
Customer Contracts [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 4 years | |
Off-Market Favorable Lease [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 3 years | |
Innosight Holdings, LLC [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Asset | $ 18,015 | |
Innosight Holdings, LLC [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Asset | $ 9,500 | |
Useful Life (in years) | 6 years | |
Innosight Holdings, LLC [Member] | Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Asset | $ 6,000 | |
Useful Life (in years) | 6 years | |
Innosight Holdings, LLC [Member] | Customer Contracts [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Asset | $ 1,000 | |
Useful Life (in years) | 1 year | |
Innosight Holdings, LLC [Member] | Noncompete Agreements [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Asset | $ 1,300 | |
Useful Life (in years) | 5 years | |
Innosight Holdings, LLC [Member] | Off-Market Favorable Lease [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Asset | $ 215 | |
Useful Life (in years) | 1 year |
Acquisitions - Summary of Suppl
Acquisitions - Summary of Supplemental Pro Forma Consolidated Results of Operations (Detail) - Innosight Holdings, LLC [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||
Revenues | $ 176,376 | $ 555,768 |
Net income (loss) from continuing operations | $ 4,170 | $ (137,922) |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 0.19 | $ (6.43) |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.19 | $ (6.43) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Goodwill | $ 1,041,826 | |
Accumulated impairment losses | (396,076) | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | $ 645,750 | |
Goodwill recorded in connection with business acquisitions | 186 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (393) | |
Goodwill, net ending balance | 645,543 | |
Healthcare | ||
Goodwill [Line Items] | ||
Goodwill | 636,810 | |
Accumulated impairment losses | (208,081) | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | 428,729 | |
Goodwill recorded in connection with business acquisitions | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |
Goodwill, net ending balance | 428,729 | |
Education [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 102,829 | |
Accumulated impairment losses | 0 | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | 102,829 | |
Goodwill recorded in connection with business acquisitions | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |
Goodwill, net ending balance | 102,829 | |
Business Advisory | ||
Goodwill [Line Items] | ||
Goodwill | 302,187 | |
Accumulated impairment losses | $ (187,995) | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | 114,192 | |
Goodwill recorded in connection with business acquisitions | 186 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (393) | |
Goodwill, net ending balance | $ 113,985 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Intangible assets | ||
Gross Carrying Amount | $ 163,522 | $ 178,888 |
Accumulated Amortization | 109,819 | 106,577 |
Customer Relationships [Member] | ||
Intangible assets | ||
Gross Carrying Amount | 98,371 | 106,195 |
Accumulated Amortization | $ 56,611 | 51,588 |
Customer Relationships [Member] | Minimum | ||
Intangible assets | ||
Useful Life (in years) | 4 years | |
Customer Relationships [Member] | Maximum | ||
Intangible assets | ||
Useful Life (in years) | 13 years | |
Trade Names [Member] | ||
Intangible assets | ||
Gross Carrying Amount | $ 28,930 | 29,016 |
Accumulated Amortization | $ 22,104 | 18,915 |
Trade Names [Member] | Minimum | ||
Intangible assets | ||
Useful Life (in years) | 5 years | |
Trade Names [Member] | Maximum | ||
Intangible assets | ||
Useful Life (in years) | 6 years | |
Customer Contracts [Member] | ||
Intangible assets | ||
Useful Life (in years) | 4 years | |
Gross Carrying Amount | $ 25,097 | 25,154 |
Accumulated Amortization | 24,999 | 24,751 |
Technology And Software [Member] | ||
Intangible assets | ||
Gross Carrying Amount | 5,694 | 9,340 |
Accumulated Amortization | $ 2,466 | 5,098 |
Technology And Software [Member] | Minimum | ||
Intangible assets | ||
Useful Life (in years) | 3 years | |
Technology And Software [Member] | Maximum | ||
Intangible assets | ||
Useful Life (in years) | 5 years | |
Noncompete Agreements [Member] | ||
Intangible assets | ||
Gross Carrying Amount | $ 4,710 | 5,163 |
Accumulated Amortization | $ 3,048 | 2,637 |
Noncompete Agreements [Member] | Minimum | ||
Intangible assets | ||
Useful Life (in years) | 3 years | |
Noncompete Agreements [Member] | Maximum | ||
Intangible assets | ||
Useful Life (in years) | 5 years | |
Publishing Content [Member] | ||
Intangible assets | ||
Useful Life (in years) | 3 years | |
Gross Carrying Amount | $ 0 | 3,300 |
Accumulated Amortization | $ 0 | 3,163 |
Off-Market Favorable Lease [Member] | ||
Intangible assets | ||
Useful Life (in years) | 3 years | |
Gross Carrying Amount | $ 720 | 720 |
Accumulated Amortization | $ 591 | $ 425 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible assets amortization expense | $ 5,900 | $ 8,800 | $ 18,200 | $ 26,400 |
Estimated annual intangible assets amortization expense in next twelve months | 23,863 | 23,863 | ||
Estimated annual intangible assets amortization expense, Year Two | 17,206 | 17,206 | ||
Estimated annual intangible assets amortization expense, Year Three | 12,083 | 12,083 | ||
Estimated annual intangible assets amortization expense, Year Four | 8,064 | 8,064 | ||
Estimated annual intangible assets amortization expense, Year Five | 6,090 | 6,090 | ||
Estimated annual intangible assets amortization expense, after Year Five | $ 3,512 | $ 3,512 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Line Items] | |||||
Goodwill, Impairment Loss | $ 0 | $ 209,600 | $ 0 | $ 0 | $ 209,600 |
Amortization of Intangible Assets | $ 5,900 | $ 8,800 | $ 18,200 | $ 26,400 |
Revenues Revenue - Additional I
Revenues Revenue - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sales Revenue, Services, Net | $ 198,448 | $ 176,376 | $ 589,671 | $ 546,643 | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | 7,600 | 10,100 | ||||
Revenue, Remaining Performance Obligation | 55,200 | 55,200 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Contract with Customer, Asset, Net | 2,800 | 2,800 | $ 2,400 | |||
Contract Asset, Period Increase (Decrease) | 400 | |||||
Deferred revenues | 30,043 | 30,043 | $ 27,916 | |||
Increase (decrease) in deferred revenues | 2,100 | |||||
Deferred Revenue, Revenue Recognized | 2,200 | 22,800 | ||||
Release of Allowance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Contract with Customer, Performance Obligation Satisfied in Previous Period | 4,300 | 3,600 | ||||
Change in Estimated Variable Consideration [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 3,300 | $ 6,500 |
Revenues Performance Obligation
Revenues Performance Obligations Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 55.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 16.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 30.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 5 years |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 8,249 | $ 4,132 | $ 10,889 | $ (141,195) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 228 | 238 | (304) | 690 |
Net income | $ 8,477 | $ 4,370 | $ 10,585 | $ (140,505) |
Weighted average common shares outstanding – basic | 21,745 | 21,505 | 21,683 | 21,413 |
Weighted average common stock equivalents | 365 | 117 | 264 | 0 |
Weighted average common shares outstanding – diluted | 22,110 | 21,622 | 21,947 | 21,413 |
Net earnings (loss) per basic share: | ||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.38 | $ 0.19 | $ 0.50 | $ (6.59) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0.01 | 0.01 | (0.01) | 0.03 |
Basic (USD per share) | 0.39 | 0.20 | 0.49 | (6.56) |
Net earnings per diluted share: | ||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.37 | 0.19 | 0.50 | (6.59) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0.01 | 0.01 | (0.02) | 0.03 |
Diluted (USD per share) | $ 0.38 | $ 0.20 | $ 0.48 | $ (6.56) |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Anti-dilutive Securities Excluded from Computation of Weighted Average Common Stock Equivalents (Detail) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 6,269 | 7,079 |
Unvested restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 11 | 627 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 0 | 194 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 3,129 | 3,129 |
Warrants related to the issuance of convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 3,129 | 3,129 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - Share Repurchase Program [Member] | Sep. 30, 2018USD ($) |
Accelerated Share Repurchases [Line Items] | |
Share repurchase authorized amount | $ 125,000,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 35,100,000 |
Financing Arrangements - Summar
Financing Arrangements - Summary of Carrying Amounts of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 316,202 | $ 343,008 | |
Long-term debt, net of current portion | 315,691 | 342,507 | |
1.25% convertible senior notes due 2019 | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 240,209 | 233,140 | |
Senior secured credit facility | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 71,500 | 105,000 | |
Promissory Note due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 4,493 | 4,868 | $ 5,100 |
Long-term Debt, Current Maturities | $ (511) | $ (501) |
Financing Arrangements Schedule
Financing Arrangements Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 126 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 250,514 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 529 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 544 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 559 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 73,721 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Convertible Notes (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2014 |
Convertible Senior Notes [Line Items] | |||
Net carrying amount | $ 316,202,000 | $ 343,008,000 | |
1.25% convertible senior notes due 2019 | |||
Convertible Senior Notes [Line Items] | |||
Proceeds | 250,000,000 | 250,000,000 | $ 250,000,000 |
Less: debt discount, net of amortization | (8,530,000) | (14,668,000) | |
Debt Issuance Costs, Net | (1,261,000) | (2,192,000) | |
Net carrying amount | 240,209,000 | 233,140,000 | |
Equity component | $ 39,287,000 | $ 39,287,000 |
Financing Arrangements - Summ_2
Financing Arrangements - Summary of Interest Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest Expense Recognized [Line Items] | ||||
Interest Expense, Debt, Excluding Amortization | $ 781 | $ 781 | $ 2,344 | $ 2,344 |
Amortization of Debt Discount (Premium) | 2,070 | 1,974 | 6,138 | 5,853 |
Amortization of Debt Issuance Costs | 312 | 306 | 931 | 915 |
1.25% convertible senior notes due 2019 | ||||
Interest Expense Recognized [Line Items] | ||||
Interest Expense, Debt | $ 3,163 | $ 3,061 | $ 9,413 | $ 9,112 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) $ / shares in Units, shares in Millions | Jun. 30, 2017USD ($) | Jun. 22, 2017 | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||
Payments of Debt Issuance Costs | $ 1,385,000 | $ 395,000 | ||||||
Deferred tax liability | 1,058,000 | $ 1,097,000 | ||||||
Net carrying amount | 316,202,000 | 343,008,000 | ||||||
Duration of LIBOR | 1 month | |||||||
Property and equipment, net | 41,164,000 | 45,541,000 | ||||||
Note Hedge | ||||||||
Debt Instrument [Line Items] | ||||||||
Common stock purchased | shares | 3.1 | |||||||
Aggregate amount for convertible hedge | $ 42,100,000 | |||||||
Deferred tax asset | $ 16,500,000 | |||||||
Warrants related to the issuance of convertible senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Common stock purchased | shares | 3.1 | |||||||
Common stock price per share | $ / shares | $ 97.12 | |||||||
Aggregate proceeds from the sale of warrants | $ 23,600,000 | |||||||
1.25% convertible senior notes due 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 250,000,000 | $ 250,000,000 | 250,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | |||||||
Debt instrument maturity date | Oct. 1, 2019 | |||||||
Number of common shares converted upon debt conversion for each $1000 principal amount | 12.5170 | |||||||
Principal amount of notes per conversion | $ 1,000 | |||||||
Optional right of debt instrument holders to convert debt instrument into cash, portion of principal amount | 100.00% | |||||||
Earliest conversion date | Jul. 1, 2019 | |||||||
Number of consecutive business days following consecutive trading days | 5 days | |||||||
Concentration risk percentage | 98.00% | |||||||
Effective interest rate of debt | 4.751% | |||||||
Remaining life of notes | 1 year | |||||||
Payments of Debt Issuance Costs | $ 7,300,000 | |||||||
Liability issuance costs | 6,200,000 | |||||||
Equity issuance costs | 1,100,000 | |||||||
Deferred tax liability | $ 15,400,000 | |||||||
Net carrying amount | $ 240,209,000 | 233,140,000 | ||||||
1.25% convertible senior notes due 2019 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion price of convertible notes | $ / shares | $ 79.89 | |||||||
Number of least trading days required within consecutive trading days | 5 | |||||||
Number of consecutive trading days | 20 days | |||||||
Percentage of applicable conversion price | 130.00% | |||||||
1.25% convertible senior notes due 2019 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion price of convertible notes | $ / shares | $ 97.12 | |||||||
Number of least trading days required within consecutive trading days | 30 | |||||||
Senior secured credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving Credit facility | $ 500,000,000 | $ 500,000,000 | ||||||
Period of revolving credit facility | 5 years | |||||||
Credit agreement expiration date | Mar. 23, 2023 | |||||||
Option to increase revolving credit facility | $ 150,000,000 | |||||||
Maximum principle amount | $ 650,000,000 | $ 650,000,000 | ||||||
Convertible debt maturity term | 90 days | |||||||
Percentage of other equity interests in domestic subsidiaries | 100.00% | |||||||
Percentage of other equity interests in foreign subsidiaries | 65.00% | |||||||
Minimum consolidated interest coverage ratio | 3.50 | 3.50 | ||||||
Actual consolidated leverage ratio | 3.02 | |||||||
Actual interest coverage ratio | 10.57 | |||||||
Net carrying amount | $ 71,500,000 | $ 105,000,000 | ||||||
Percentage of weighted average interest rate of borrowings | 4.20% | 3.70% | ||||||
Outstanding letters of credit | $ 1,600,000 | $ 1,900,000 | ||||||
Unused borrowing capacity under Credit Agreement | 426,900,000 | |||||||
Senior secured credit facility | Scenario One, Leverage Ratio | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum consolidated leverage ratio | 3.50 | |||||||
Senior secured credit facility | Scenario Two, Leverage Ratio | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum consolidated leverage ratio | 4 | |||||||
Senior secured credit facility | Minimum | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 1.25% | |||||||
Senior secured credit facility | Minimum | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 0.25% | |||||||
Senior secured credit facility | Maximum | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 2.00% | |||||||
Senior secured credit facility | Maximum | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 1.00% | |||||||
Promissory Note due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 1.97% | |||||||
Net carrying amount | $ 5,100,000 | 4,493,000 | 4,868,000 | |||||
Debt Instrument, Maturity Date | Mar. 1, 2024 | |||||||
Repayment of Principal at Maturity Date | $ 1,500,000 | |||||||
Duration of LIBOR | 1 month | |||||||
Aircraft [Domain] | ||||||||
Debt Instrument [Line Items] | ||||||||
Property and equipment, net | $ 5,900,000 | $ 6,500,000 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Restructuring Charges [Abstract] | ||||||
Restructuring charges | $ (31) | $ 1,347 | $ 2,665 | $ 5,295 | ||
Gain (Loss) on Disposition of Business | $ 5,900 | (5,863) | 931 | |||
Restructuring reserve | 3,559 | 3,559 | $ 5,514 | |||
Employee Severance [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring reserve | 618 | 618 | 1,267 | |||
Other Restructuring [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring reserve | 0 | 0 | 0 | |||
Office Space Reductions [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring charges | 2,500 | |||||
Restructuring reserve | 2,941 | 2,941 | $ 4,247 | |||
Business Advisory | Employee Severance [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring charges | 200 | 500 | ||||
Business Advisory | Other Restructuring [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring charges | 300 | |||||
Healthcare | Employee Severance [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring charges | 400 | 700 | $ 2,000 | |||
Corporate, Non-Segment [Member] | Employee Severance [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring charges | 400 | |||||
Huron Legal [Member] | Discontinued Operations [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring charges | 400 | |||||
Wisconsin Office [Member] | Office Space Reductions [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring charges | 700 | |||||
San Francisco Office [Member] | Office Space Reductions [Member] | ||||||
Restructuring Charges [Abstract] | ||||||
Restructuring charges | $ 300 | $ 300 |
Restructuring Charges Restruc_2
Restructuring Charges Restructuring Liability Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | $ 3,559 | $ 5,514 |
Restructuring and Related Cost, Incurred Cost | 2,306 | |
Payments for Restructuring | (4,723) | |
Restructuring Reserve, Accrual Adjustment | 786 | |
Noncashrestructuringadjustments | (324) | |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | 618 | 1,267 |
Restructuring and Related Cost, Incurred Cost | 1,259 | |
Payments for Restructuring | (1,861) | |
Restructuring Reserve, Accrual Adjustment | (47) | |
Noncashrestructuringadjustments | 0 | |
Office Space Reductions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | 2,941 | 4,247 |
Restructuring and Related Cost, Incurred Cost | 896 | |
Payments for Restructuring | (2,710) | |
Restructuring Reserve, Accrual Adjustment | 833 | |
Noncashrestructuringadjustments | (325) | |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | 0 | $ 0 |
Restructuring and Related Cost, Incurred Cost | 151 | |
Payments for Restructuring | (152) | |
Restructuring Reserve, Accrual Adjustment | 0 | |
Noncashrestructuringadjustments | $ 1 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activity - Additional Information (Detail) - USD ($) | Jun. 22, 2017 | Sep. 30, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Interest rate swap agreement, effective date | Aug. 31, 2017 | |
Interest rate swap agreement, end date | Aug. 31, 2022 | |
Interest rate swap agreement for a notional amount | $ 50,000,000 | |
Duration of LIBOR | 1 month | |
Percentage of fixed rate | 1.90% | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 300,000 | |
Gain (loss) reclassification from accumulated OCI to income, estimate of time to transfer | 12 months |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activity - Fair Value Interest Rate Swaps Designated as Cash Flow Hedging Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Prepaid Expenses and Other Current Assets [Member] | ||
Fair Value interest rate swaps designated as cash flow hedging instruments | ||
Fair Value (Derivative Asset and Liability) | $ 341 | $ 0 |
Other Noncurrent Assets [Member] | ||
Fair Value interest rate swaps designated as cash flow hedging instruments | ||
Fair Value (Derivative Asset and Liability) | 1,301 | 581 |
Accrued expenses | ||
Fair Value interest rate swaps designated as cash flow hedging instruments | ||
Fair Value (Derivative Asset and Liability) | $ 0 | $ 48 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Asset/Liability | ||
Assets, fair value | $ 67,942 | $ 59,301 |
Liabilities, fair value | 12,889 | 22,828 |
Contingent consideration for business acquisitions | ||
Fair Value, Asset/Liability | ||
Liabilities, fair value | 12,889 | 22,828 |
Interest Rate Swap [Member] | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 1,642 | 533 |
Convertible debt investment | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 45,948 | 39,904 |
Promissory note | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 0 | 1,078 |
Level 2 | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 21,994 | 18,319 |
Liabilities, fair value | 0 | 0 |
Level 2 | Interest Rate Swap [Member] | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 1,642 | 533 |
Level 3 | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 45,948 | 40,982 |
Liabilities, fair value | 12,889 | 22,828 |
Level 3 | Contingent consideration for business acquisitions | ||
Fair Value, Asset/Liability | ||
Liabilities, fair value | 12,889 | 22,828 |
Level 3 | Convertible debt investment | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 45,948 | 39,904 |
Level 3 | Promissory note | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 1,078 | |
Deferred Compensation Plan Assets [Member] | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 20,352 | 17,786 |
Deferred Compensation Plan Assets [Member] | Level 2 | ||
Fair Value, Asset/Liability | ||
Assets, fair value | $ 20,352 | $ 17,786 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | Jun. 22, 2017 | Dec. 30, 2011 | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Duration of LIBOR | 1 month | ||||
Fair Value of Financial Instruments [Abstract] | |||||
Investments in notes | $ 39,904,000 | $ 45,948,000 | |||
Closing price of common stock | $ 49.40 | ||||
1.25% convertible senior notes due 2019 | |||||
Fair Value of Financial Instruments [Abstract] | |||||
Aggregate principal amount | 250,000,000 | $ 250,000,000 | $ 250,000,000 | ||
Carrying value of equity component | 39,287,000 | 39,287,000 | |||
Convertible debt investment | Shorelight Holdings LLC | |||||
Fair Value of Financial Instruments [Abstract] | |||||
Investments in notes | $ 27,900,000 | ||||
Debt Instrument, Maturity Date | Jul. 1, 2020 | ||||
Promissory note | Accounting Advisory Practice | |||||
Fair Value of Financial Instruments [Abstract] | |||||
Promissory note received for sale of Accounting Advisory | $ 3,500,000 | ||||
Promissory note term | 4 years | ||||
Reduction in Principal of Amended Promissory Note | $ 500,000 | ||||
Promissory note payable maturity date | Sep. 30, 2020 | ||||
Discount rate used to measure fair value | 10.00% | ||||
Promissory Note, Principal, Outstanding | $ 1,000,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Summary of Carrying Amount and Estimated Fair Value of Convertible Notes (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ||
Net carrying amount | $ 316,202 | $ 343,008 |
1.25% convertible senior notes due 2019 | ||
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ||
Net carrying amount | 240,209 | 233,140 |
Estimated Fair Value | $ 241,650 | $ 232,578 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments Fair Value of Financial Instruments - Contingent Consideration Reconciliation (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 12,889 | $ 22,828 |
Contingent consideration for business acquisitions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (7,750) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | (2,463) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 212 | |
Contingent consideration for business acquisitions | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 12,889 | $ 22,828 |
Foreign Currency Gain (Loss) [Member] | Contingent consideration for business acquisitions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | $ 62 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments Fair Value of Financial Instruments - Convertible Debt Investment Reconciliation (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 67,942 | $ 59,301 |
Convertible senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 6,044 | |
Convertible senior notes | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 45,948 | $ 39,904 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments Fair Value of Financial Instruments - Promissory Note Reconciliation (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 67,942 | $ 59,301 |
Promissory note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 43 | |
Promissory note | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | $ 1,078 |
Interest Income [Member] | Promissory note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (81) | |
Notes Receivable [Member] | Promissory note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | $ (1,040) |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss )- Components of Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Abstract] | ||||
Foreign currency translation adjustment, before taxes | $ (579) | $ 609 | $ (1,499) | $ 1,835 |
Foreign currency translation adjustment, taxes | 0 | 0 | 0 | 0 |
Foreign currency translation adjustment, net of taxes | (579) | 609 | (1,499) | 1,835 |
Unrealized gain on investment, before taxes | (1,151) | (3,609) | 6,044 | (2,738) |
Unrealized gain on investment, tax (expense) benefit | 299 | 1,409 | (1,571) | 1,069 |
Unrealized gain on investment, net of taxes | (852) | (2,200) | 4,473 | (1,669) |
Change in fair value, before taxes | 301 | 41 | 1,096 | (41) |
Change in fair value, tax (expense) benefit | (78) | (16) | (285) | 16 |
Change in fair value, net of taxes | 223 | 25 | 811 | (25) |
Reclassification adjustments into earnings, before taxes | (23) | (3) | 13 | 36 |
Reclassification adjustments into earnings, tax (expense) benefit | 6 | 1 | (3) | (15) |
Reclassification adjustments into earnings, net of taxes | (17) | (2) | 10 | 21 |
Net unrealized gain (loss), before taxes | 278 | 38 | 1,109 | (5) |
Net unrealized gain (loss), tax (expense) benefit | (72) | (15) | (288) | 1 |
Net unrealized gain (loss), net of taxes | 206 | 23 | 821 | (4) |
Other comprehensive income (loss), before taxes | (1,452) | (2,962) | 5,654 | (908) |
Other comprehensive income (loss), tax (expense) benefit | 227 | 1,394 | (1,859) | 1,070 |
Accumulated Other Comprehensive (Income) Loss, Current period change | $ (1,225) | $ (1,568) | $ 3,795 | $ 162 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss )- Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Abstract] | ||||
Foreign Currency Translation Adjustments, Beginning balance | $ 1,149 | |||
Foreign currency translation adjustments, net of tax | $ (579) | $ 609 | (1,499) | $ 1,835 |
Foreign Currency Translation Adjustments, Ending balance | (350) | (350) | ||
Net Unrealized Gain (Loss) on Investment, Beginning balance | 8,812 | |||
Unrealized gain (loss) on investment, net of tax | (852) | (2,200) | 4,473 | (1,669) |
Net Unrealized Gain (Loss) on Investment, Ending balance | 13,285 | 13,285 | ||
Net Unrealized Losses on Derivatives, Beginning balance | 409 | |||
Unrealized gain (loss) on cash flow hedging instruments, net of tax | 206 | 23 | 821 | (4) |
Net Unrealized Losses on Derivatives, Ending balance | 1,230 | 1,230 | ||
Accumulated Other Comprehensive Income (Loss), Beginning balance | 10,370 | |||
Accumulated Other Comprehensive (Income) Loss, Current period change | (1,225) | $ (1,568) | 3,795 | $ 162 |
Accumulated Other Comprehensive Income (Loss), Ending balance | $ 14,165 | $ 14,165 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 14.40% | (92.40%) | 28.60% | 26.10% |
Income tax expense (benefit) | $ 1,391 | $ (1,984) | $ 4,365 | $ (49,740) |
Income (loss) from continuing operations before taxes | $ 9,640 | 2,148 | $ 15,254 | (190,935) |
Effective Income Tax Rate Reconciliation, at Statutory Rate, Inclusive of State Income Tax, Percent | 26.00% | 26.00% | ||
Provision adjustments related to prior year US tax return | $ 900 | |||
Provision adjustments related to prior year US tax return, Percent | 6.10% | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | 8.10% | |||
Goodwill, Impairment Loss, Not Deductible for Tax Purposes | 61,200 | |||
Net Income Tax Benefit Recognized from Intercompany Receivable Write Off | 2,700 | 2,700 | ||
Additional Income Tax Expense due to Tax Reform | $ 700 | $ 600 | ||
Share-based Compensation [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Income tax expense (benefit) | $ 1,200 | $ 1,800 | ||
Income Tax Expense [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Income tax expense (benefit) | $ 600 | |||
Domestic Tax Authority [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Provision adjustments related to prior year US tax return | $ 800 | |||
Provision adjustments related to prior year US tax return, Percent | 8.60% | |||
Foreign Tax Authority [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Provision adjustments related to prior year US tax return | $ 400 | |||
Provision adjustments related to prior year US tax return, Percent | 3.70% |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies [Line Items] | |||
Gain (Loss) Related to Litigation Settlement | $ 2,500 | ||
Fair Value, Measurements, Recurring | |||
Commitments And Contingencies [Line Items] | |||
Liabilities, fair value | $ 12,889 | $ 22,828 | |
Fair Value, Measurements, Recurring | Contingent consideration for business acquisitions | |||
Commitments And Contingencies [Line Items] | |||
Liabilities, fair value | 12,889 | 22,828 | |
Senior secured credit facility | |||
Commitments And Contingencies [Line Items] | |||
Guarantees in the form of letters of credit | $ 1,600 | $ 1,900 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 3 |
Segment Information - Component
Segment Information - Components of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Components of Segment Information | |||||
Revenues | $ 198,448 | $ 176,376 | $ 589,671 | $ 546,643 | |
Operating income (loss) | 13,561 | 6,098 | 35,021 | (180,328) | |
Reimbursable expenses | 21,296 | 17,982 | 59,648 | 55,862 | |
Total revenues and reimbursable expenses | 219,744 | 194,358 | 649,319 | 602,505 | |
Gain (Loss) Related To Litigation Settlement And Other Operating Gains | (887) | (880) | 4,990 | 222 | |
Depreciation and amortization | 8,561 | 9,946 | 26,281 | 28,549 | |
Goodwill, Impairment Loss | 0 | $ 209,600 | 0 | 0 | 209,600 |
Other expense, net | (3,921) | (3,950) | (19,767) | (10,607) | |
Income from continuing operations before income tax expense | 9,640 | 2,148 | 15,254 | (190,935) | |
Healthcare | |||||
Components of Segment Information | |||||
Revenues | 90,417 | 271,812 | |||
Business Advisory | |||||
Components of Segment Information | |||||
Revenues | 57,175 | 170,790 | |||
Education [Member] | |||||
Components of Segment Information | |||||
Revenues | 50,856 | 147,069 | |||
Operating Segments | |||||
Components of Segment Information | |||||
Revenues | 198,448 | 176,376 | 589,671 | 546,643 | |
Operating income (loss) | 53,469 | 46,372 | 150,897 | 150,242 | |
Reimbursable expenses | 21,296 | 17,982 | 55,862 | ||
Total revenues and reimbursable expenses | 219,744 | 194,358 | 602,505 | ||
Operating Segments | Healthcare | |||||
Components of Segment Information | |||||
Revenues | 90,417 | 79,582 | 271,812 | 261,261 | |
Operating income (loss) | $ 26,640 | $ 25,778 | $ 78,172 | $ 83,580 | |
Segment operating income as a percentage of segment revenues | 29.50% | 32.40% | 28.80% | 32.00% | |
Operating Segments | Business Advisory | |||||
Components of Segment Information | |||||
Revenues | $ 57,175 | $ 55,372 | $ 170,790 | $ 157,753 | |
Operating income (loss) | $ 11,815 | $ 12,832 | $ 35,031 | $ 34,890 | |
Segment operating income as a percentage of segment revenues | 20.70% | 23.20% | 20.50% | 22.10% | |
Operating Segments | Education [Member] | |||||
Components of Segment Information | |||||
Revenues | $ 50,856 | $ 41,422 | $ 147,069 | $ 127,629 | |
Operating income (loss) | $ 15,014 | $ 7,762 | $ 37,694 | $ 31,772 | |
Segment operating income as a percentage of segment revenues | 29.50% | 18.70% | 25.60% | 24.90% | |
Segment Reconciling Items | |||||
Components of Segment Information | |||||
Other operating expenses | $ 30,460 | $ 29,448 | $ 94,585 | $ 92,643 | |
Gain (Loss) Related To Litigation Settlement And Other Operating Gains | 887 | 880 | (4,990) | (222) | |
Depreciation and amortization | 8,561 | 9,946 | 26,281 | 28,549 | |
Goodwill, Impairment Loss | 0 | 0 | 209,600 | ||
Other expense, net | $ 3,921 | $ 3,950 | $ 19,767 | $ 10,607 |
Segment Information Segment Inf
Segment Information Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | $ 198,448 | $ 176,376 | $ 589,671 | $ 546,643 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 90,417 | 271,812 | ||
Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 57,175 | 170,790 | ||
Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 50,856 | 147,069 | ||
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 195,651 | 581,228 | ||
Transferred over Time [Member] | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 88,372 | 266,320 | ||
Transferred over Time [Member] | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 57,175 | 170,790 | ||
Transferred over Time [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 50,104 | 144,118 | ||
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 2,797 | 8,443 | ||
Transferred at Point in Time [Member] | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 2,045 | 5,492 | ||
Transferred at Point in Time [Member] | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 0 | 0 | ||
Transferred at Point in Time [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 752 | 2,951 | ||
Full-time Billable Consultants [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 161,664 | 474,997 | ||
Full-time Billable Consultants [Member] | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 62,409 | 183,820 | ||
Full-time Billable Consultants [Member] | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 54,379 | 162,564 | ||
Full-time Billable Consultants [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 44,876 | 128,613 | ||
Full-time Equivalents [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 36,784 | 114,674 | ||
Full-time Equivalents [Member] | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 28,008 | 87,992 | ||
Full-time Equivalents [Member] | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 2,796 | 8,226 | ||
Full-time Equivalents [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 5,980 | 18,456 | ||
Fixed-price Contract [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 93,850 | 281,293 | ||
Fixed-price Contract [Member] | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 60,462 | 182,491 | ||
Fixed-price Contract [Member] | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 24,129 | 70,103 | ||
Fixed-price Contract [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 9,259 | 28,699 | ||
Time-and-materials Contract [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 85,574 | 245,131 | ||
Time-and-materials Contract [Member] | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 15,723 | 42,755 | ||
Time-and-materials Contract [Member] | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 32,197 | 94,357 | ||
Time-and-materials Contract [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 37,654 | 108,019 | ||
Performance-based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 8,312 | 30,893 | ||
Performance-based [Member] | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 8,372 | 27,776 | ||
Performance-based [Member] | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | (60) | 3,117 | ||
Performance-based [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 0 | 0 | ||
Software Service, Support and Maintenance Arrangement [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 10,712 | 32,354 | ||
Software Service, Support and Maintenance Arrangement [Member] | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 5,860 | 18,790 | ||
Software Service, Support and Maintenance Arrangement [Member] | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | 909 | 3,213 | ||
Software Service, Support and Maintenance Arrangement [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales Revenue, Services, Net | $ 3,943 | $ 10,351 |