Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-50976 | |
Entity Registrant Name | HURON CONSULTING GROUP INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 01-0666114 | |
Entity Address, Address Line One | 550 West Van Buren Street | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60607 | |
City Area Code | (312) | |
Local Phone Number | 583-8700 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | HURN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 22,445,893 | |
Entity Central Index Key | 0001289848 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 12,982 | $ 67,177 |
Receivables from clients, net of allowances of $8,809 and $7,680, respectively | 116,091 | 87,687 |
Unbilled services, net of allowances of $3,214 and $2,603, respectively | 90,119 | 53,959 |
Income tax receivable | 1,811 | 5,121 |
Prepaid expenses and other current assets | 14,642 | 16,569 |
Total current assets | 235,645 | 230,513 |
Property and equipment, net | 31,271 | 29,093 |
Deferred income taxes, net | 4,745 | 4,191 |
Long-term investments | 66,639 | 71,030 |
Operating lease right-of-use assets | 36,575 | 39,360 |
Other non-current assets | 64,488 | 62,068 |
Intangible assets, net | 18,957 | 20,483 |
Goodwill | 597,552 | 594,237 |
Total assets | 1,055,872 | 1,050,975 |
Current liabilities: | ||
Accounts payable | 6,318 | 648 |
Accrued expenses and other current liabilities | 19,822 | 14,874 |
Accrued payroll and related benefits | 90,158 | 133,830 |
Current maturities of long-term debt | 551 | 499 |
Current maturities of operating lease liabilities | 9,598 | 8,771 |
Deferred revenues | 19,182 | 28,247 |
Total current liabilities | 145,629 | 186,869 |
Non-current liabilities: | ||
Deferred compensation and other liabilities | 46,843 | 47,131 |
Long-term debt, net of current portion | 267,502 | 202,780 |
Operating lease liabilities, net of current portion | 57,324 | 61,825 |
Deferred income taxes, net | 436 | 428 |
Total non-current liabilities | 372,105 | 312,164 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common stock | 243 | 246 |
Treasury stock | (135,364) | (129,886) |
Additional paid-in capital | 429,084 | 454,512 |
Retained earnings | 232,211 | 214,009 |
Accumulated other comprehensive income | 11,964 | 13,061 |
Total stockholders’ equity | 538,138 | 551,942 |
Total liabilities and stockholders’ equity | $ 1,055,872 | $ 1,050,975 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss | $ 8,809 | $ 7,680 |
Unbilled services, allowance for credit losses | $ 3,214 | $ 2,603 |
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) | 24,877,563 | 25,346,916 |
Treasury stock, shares (shares) | 2,445,818 | 2,584,119 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Other Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues and reimbursable expenses: | ||||
Revenues | $ 230,126 | $ 217,857 | $ 433,339 | $ 440,476 |
Reimbursable expenses | 3,252 | 2,970 | 5,186 | 22,273 |
Total revenues and reimbursable expenses | 233,378 | 220,827 | 438,525 | 462,749 |
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses): | ||||
Direct costs | 161,526 | 149,514 | 309,641 | 305,762 |
Amortization of intangible assets and software development costs | 910 | 1,334 | 1,835 | 2,635 |
Reimbursable expenses | 3,316 | 2,866 | 5,319 | 22,255 |
Total direct costs and reimbursable expenses | 165,752 | 153,714 | 316,795 | 330,652 |
Operating expenses and other losses (gains), net | ||||
Selling, general and administrative expenses | 45,190 | 44,857 | 84,956 | 88,303 |
Restructuring charges | 861 | 109 | 1,489 | 1,718 |
Litigation and other losses (gains) | 0 | 0 | 42 | (150) |
Depreciation and amortization | 5,446 | 6,193 | 10,874 | 12,307 |
Goodwill impairment charges | 0 | 0 | 0 | 59,816 |
Total operating expenses and other losses (gains), net | 51,497 | 51,159 | 97,361 | 161,994 |
Operating income (loss) | 16,129 | 15,954 | 24,369 | (29,897) |
Other income (expense), net: | ||||
Interest expense, net of interest income | (2,029) | (2,916) | (3,748) | (5,257) |
Other income (expense), net | 2,151 | 3,948 | 2,571 | (1,348) |
Total other income (expense), net | 122 | 1,032 | (1,177) | (6,605) |
Income (loss) from continuing operations before taxes | 16,251 | 16,986 | 23,192 | (36,502) |
Income tax expense (benefit) | 3,454 | 3,414 | 4,990 | (7,801) |
Net income (loss) from continuing operations | 12,797 | 13,572 | 18,202 | (28,701) |
Loss from discontinued operations, net of tax | 0 | (25) | 0 | (60) |
Net income (loss) | $ 12,797 | $ 13,547 | $ 18,202 | $ (28,761) |
Net earnings (loss) per basic share: | ||||
Net income (loss) from continuing operations (USD per share) | $ 0.59 | $ 0.62 | $ 0.84 | $ (1.31) |
Loss from discontinued operations, net of tax (USD per share) | 0 | 0 | 0 | (0.01) |
Net income (loss) (USD per share) | 0.59 | 0.62 | 0.84 | (1.32) |
Net earnings (loss) per diluted share: | ||||
Net income (loss) from continuing operations (USD per share) | 0.59 | 0.61 | 0.82 | (1.31) |
Loss from discontinued operations, net of tax (USD per share) | 0 | 0 | 0 | (0.01) |
Net income (loss) (USD per share) | $ 0.59 | $ 0.61 | $ 0.82 | $ (1.32) |
Weighted average shares used in calculating earnings (loss) per share: | ||||
Basic (shares) | 21,555 | 21,869 | 21,743 | 21,848 |
Diluted (shares) | 21,871 | 22,116 | 22,105 | 21,848 |
Comprehensive income (loss): | ||||
Net income (loss) | $ 12,797 | $ 13,547 | $ 18,202 | $ (28,761) |
Foreign currency translation adjustments, net of tax | 82 | 104 | 482 | (675) |
Unrealized gain (loss) on investment, net of tax | 1,422 | (5,678) | (3,226) | (5,936) |
Unrealized gain (loss) on cash flow hedging instruments, net of tax | 218 | (1,705) | 1,647 | (3,390) |
Other comprehensive income (loss) | 1,722 | (7,279) | (1,097) | (10,001) |
Comprehensive income (loss) | $ 14,519 | $ 6,268 | $ 17,105 | $ (38,762) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance (shares) at Dec. 31, 2019 | 24,603,308 | 2,763,302 | ||||
Beginning balance at Dec. 31, 2019 | $ 585,465 | $ 247 | $ (128,348) | $ 460,781 | $ 237,849 | $ 14,936 |
Ending balance (shares) at Mar. 31, 2020 | 24,559,854 | 2,780,835 | ||||
Ending balance at Mar. 31, 2020 | 524,609 | $ 246 | $ (128,366) | 444,974 | 195,541 | 12,214 |
Beginning balance (shares) at Dec. 31, 2019 | 24,603,308 | 2,763,302 | ||||
Beginning balance at Dec. 31, 2019 | 585,465 | $ 247 | $ (128,348) | 460,781 | 237,849 | 14,936 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | (38,762) | (28,761) | (10,001) | |||
Restricted stock awards, net of cancellations (shares) | (270,126) | 98,310 | ||||
Restricted stock awards, net of cancellations | 0 | $ 2 | $ 6,919 | (6,921) | ||
Exercise of stock options (shares) | 26,800 | |||||
Exercise of stock options | 646 | 646 | ||||
Share-based compensation | 16,763 | 16,763 | ||||
Shares redeemed for employee tax withholdings (shares) | (121,806) | |||||
Shares redeemed for employee tax withholdings | (7,217) | $ 7,217 | ||||
Stock repurchased and retired (shares) | (313,998) | |||||
Share repurchases | (20,881) | $ (3) | (20,878) | |||
Ending balance (shares) at Jun. 30, 2020 | 24,586,236 | 2,786,798 | ||||
Ending balance at Jun. 30, 2020 | 536,014 | $ 246 | $ (128,646) | 450,391 | 209,088 | 4,935 |
Beginning balance (shares) at Mar. 31, 2020 | 24,559,854 | 2,780,835 | ||||
Beginning balance at Mar. 31, 2020 | 524,609 | $ 246 | $ (128,366) | 444,974 | 195,541 | 12,214 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 6,268 | 13,547 | (7,279) | |||
Restricted stock awards, net of cancellations (shares) | (19,582) | (4,157) | ||||
Restricted stock awards, net of cancellations | 0 | $ 0 | $ (196) | 196 | ||
Exercise of stock options (shares) | 6,800 | |||||
Exercise of stock options | 178 | 178 | ||||
Share-based compensation | 5,043 | 5,043 | ||||
Shares redeemed for employee tax withholdings (shares) | (1,806) | |||||
Shares redeemed for employee tax withholdings | (84) | $ 84 | ||||
Ending balance (shares) at Jun. 30, 2020 | 24,586,236 | 2,786,798 | ||||
Ending balance at Jun. 30, 2020 | 536,014 | $ 246 | $ (128,646) | 450,391 | 209,088 | 4,935 |
Beginning balance (shares) at Dec. 31, 2020 | 24,560,855 | 2,812,896 | ||||
Beginning balance at Dec. 31, 2020 | 551,942 | $ 246 | $ (129,886) | 454,512 | 214,009 | 13,061 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 17,105 | 18,202 | (1,097) | |||
Restricted stock awards, net of cancellations (shares) | (398,551) | 81,009 | ||||
Restricted stock awards, net of cancellations | 0 | $ 4 | $ 3,173 | (3,177) | ||
Exercise of stock options (shares) | 13,403 | |||||
Exercise of stock options | 422 | 422 | ||||
Share-based compensation | 12,563 | 12,563 | ||||
Shares redeemed for employee tax withholdings (shares) | (168,046) | |||||
Shares redeemed for employee tax withholdings | (8,651) | $ 8,651 | ||||
Stock repurchased and retired (shares) | (651,081) | |||||
Share repurchases | (35,243) | $ (7) | (35,236) | |||
Ending balance (shares) at Jun. 30, 2021 | 24,321,728 | 2,899,933 | ||||
Ending balance at Jun. 30, 2021 | 538,138 | $ 243 | $ (135,364) | 429,084 | 232,211 | 11,964 |
Beginning balance (shares) at Mar. 31, 2021 | 24,698,499 | 2,887,999 | ||||
Beginning balance at Mar. 31, 2021 | 541,003 | $ 247 | $ (134,611) | 445,711 | 219,414 | 10,242 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 14,519 | 12,797 | 1,722 | |||
Restricted stock awards, net of cancellations (shares) | (21,820) | (9,091) | ||||
Restricted stock awards, net of cancellations | 0 | $ 0 | $ (605) | 605 | ||
Exercise of stock options (shares) | 6,772 | |||||
Exercise of stock options | 248 | 248 | ||||
Share-based compensation | 4,575 | 4,575 | ||||
Shares redeemed for employee tax withholdings (shares) | (2,843) | |||||
Shares redeemed for employee tax withholdings | (148) | $ 148 | ||||
Stock repurchased and retired (shares) | (405,363) | |||||
Share repurchases | (22,059) | $ (4) | (22,055) | |||
Ending balance (shares) at Jun. 30, 2021 | 24,321,728 | 2,899,933 | ||||
Ending balance at Jun. 30, 2021 | $ 538,138 | $ 243 | $ (135,364) | $ 429,084 | $ 232,211 | $ 11,964 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 18,202 | $ (28,761) |
Adjustments to reconcile net income (loss) to cash flows from operating activities: | ||
Depreciation and amortization | 12,923 | 14,942 |
Non-cash lease expense | 3,301 | 3,880 |
Share-based compensation | 11,566 | 14,527 |
Amortization of debt discount and issuance costs | 397 | 397 |
Goodwill impairment charges | 0 | 59,816 |
Allowances for doubtful accounts | 0 | 512 |
Deferred income taxes | (48) | (15,515) |
Loss on sale of business | 0 | 102 |
Change in fair value of contingent consideration liabilities | 42 | 0 |
Other Noncash Income | (236) | 0 |
Changes in operating assets and liabilities, net of acquisition and divestiture: | ||
(Increase) decrease in receivables from clients, net | (27,749) | (339) |
(Increase) decrease in unbilled services, net | (36,088) | (3,059) |
(Increase) decrease in current income tax receivable / payable, net | 3,366 | 6,546 |
(Increase) decrease in other assets | (1,117) | (1,674) |
Increase (decrease) in accounts payable and other liabilities | 5,038 | (2,787) |
Increase (decrease) in accrued payroll and related benefits | (42,487) | (53,420) |
Increase (decrease) in deferred revenues | (9,080) | 6,638 |
Net cash provided by (used in) operating activities | (61,970) | 1,805 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net | (5,439) | (4,417) |
Purchase of investment securities | 0 | (13,000) |
Investment in life insurance policies | (77) | (1,540) |
Purchase of business | (5,886) | 0 |
Capitalization of internally developed software costs | (2,508) | (5,184) |
Proceeds from Sale of Property, Plant, and Equipment | 158 | 0 |
Net cash used in investing activities | (13,752) | (24,141) |
Cash flows from financing activities: | ||
Proceeds from exercises of stock options | 422 | 646 |
Shares redeemed for employee tax withholdings | (8,651) | (7,217) |
Share repurchases | (35,243) | (22,115) |
Proceeds from bank borrowings | 139,000 | 283,000 |
Repayments of bank borrowings | (74,270) | (160,263) |
Net cash provided by financing activities | 21,258 | 94,051 |
Effect of exchange rate changes on cash | 269 | (107) |
Net increase (decrease) in cash and cash equivalents | (54,195) | 71,608 |
Cash and cash equivalents at beginning of the period | 67,177 | 11,604 |
Cash and cash equivalents at end of the period | 12,982 | 83,212 |
Non-cash investing and financing activities: | ||
Property and equipment expenditures and capitalized software included in accounts payable, accrued expenses and accrued payroll and related benefits | 3,315 | 2,070 |
Operating lease right-of-use asset obtained in exchange for operating lease liability | $ 0 | $ 1,397 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | Description of BusinessHuron is a global consultancy that collaborates with clients to drive strategic growth, ignite innovation and navigate constant change. Through a combination of strategy, expertise and creativity, we help clients accelerate operational, digital and cultural transformation, enabling the change they need to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, Huron creates sustainable results for the organizations it serves. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The accompanying unaudited consolidated financial statements reflect the financial position, results of operations, and cash flows as of and for the three and six months ended June 30, 2021 and 2020. 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, 2020 included in our Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the period ended March 31, 2021. Our results for any interim period are not necessarily indicative of results for a full year or any other interim period. During the first quarter of 2021, we identified an error on our previously reported consolidated balance sheet as of December 31, 2020 related to the classification between receivables from clients, unbilled services, and deferred revenues. Our consolidated balance sheet as of December 31, 2020 presented herein has been revised to reflect the correction of this error. The results of this correction on our consolidated balance sheet were a decrease in unbilled services of $7.2 million, an increase in receivables from clients of $0.7 million, and a decrease in deferred revenues of $6.5 million. This error had no impact on our consolidated statement of operations and other comprehensive income and consolidated statements of cash flows for any current or prior period. We evaluated the materiality of this error from both quantitative and qualitative perspectives and concluded that the impact of the error was not material to the financial statements for the year ended December 31, 2020. Preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and related disclosures. The business and economic uncertainty resulting from the coronavirus (COVID-19) pandemic has made such estimates and assumptions more difficult to predict. Accordingly, actual results and outcomes could differ from those estimates. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In October 2020, the FASB issued ASU 2020-10, Codification Improvements. ASU 2020-10 situates all disclosure guidance within the appropriate disclosure section of the Codification and makes other improvements and technical corrections to the Codification. We adopted ASU 2020-10 effective January 1, 2021, which did not have any impact on our consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021. Healthcare Business Education Total Balance as of December 31, 2020: Goodwill $ 636,810 $ 308,935 $ 104,384 $ 1,050,129 Accumulated impairment losses (208,081) (247,811) — (455,892) Goodwill, net as of December 31, 2020 428,729 61,124 104,384 594,237 Goodwill recorded in connection with a business acquisition (1) — 3,315 — 3,315 Goodwill, net as of June 30, 2021 $ 428,729 $ 64,439 $ 104,384 $ 597,552 (1) On February 1, 2021, we completed the acquisition of Unico Solution, a data strategy and technology consulting firm focused on helping clients use their data to speed business transformation and accelerate cloud adoption. The results of operations of Unico Solution are included in our consolidated financial statements and results of operations of our Business Advisory segment from the date of acquisition. This acquisition is not significant to our consolidated financial statements. First Quarter 2020 Goodwill Impairment Charges The worldwide spread of the COVID-19 pandemic in the first quarter of 2020 created significant volatility, uncertainty and disruption to the global economy. From the onset of the COVID-19 pandemic, we closely monitored the impact it could have on all aspects of our business, including how we expect it to negatively impact our clients, employees and business partners. While the COVID-19 pandemic did not have a significant impact on our consolidated revenues in the first quarter of 2020, we expected it to have an unfavorable impact on sales, increase uncertainty in the backlog and negatively impact full year 2020 results. The services provided by our Strategy and Innovation and Life Sciences reporting units within our Business Advisory segment focus on strategic solutions for healthy, well-capitalized companies to identify new growth opportunities, which may be considered by our clients to be more discretionary in nature, and the duration of the projects within these practices are typically short-term. Therefore, at the onset of the COVID-19 pandemic in the U.S. and due to the uncertainty caused by the pandemic, we were cautious about near-term results for these two reporting units. Based on our internal projections and the preparation of our financial statements for the quarter ended March 31, 2020, and considering the expected decrease in demand due to the COVID-19 pandemic, during the first quarter of 2020 we believed it was more likely than not that the fair value of these two reporting units no longer exceeded their carrying values and performed an interim impairment test on both reporting units as of March 31, 2020. Based on the estimated fair values of the Strategy and Innovation and Life Sciences reporting units, we recorded non-cash pretax goodwill impairment charges of $49.9 million and $9.9 million, respectively, in the first quarter of 2020. The $49.9 million non-cash pretax charge related to the Strategy and Innovation reporting unit reduced the goodwill balance of the reporting unit to $37.5 million. The $9.9 million non-cash pretax charge related to the Life Sciences reporting unit reduced the goodwill balance of the reporting unit to zero. Our goodwill impairment test was performed by comparing the fair value of each of the Strategy and Innovation and Life Sciences reporting units with its respective 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 each reporting unit, we relied on a combination of the income approach and the market approach with a fifty-fifty weighting. In the income approach, we utilized a discounted cash flow analysis, which involved estimating the expected after-tax cash flows that will be generated by each reporting unit and then discounting those cash flows to present value, reflecting the relevant risks associated with each reporting unit and the time value of money. This approach requires the use of significant estimates and assumptions, including forecasted revenue growth rates, forecasted EBITDA margins, and discount rates that reflect the risk inherent in the future cash flows. In estimating future cash flows, we relied on internally generated seven-year forecasts. Our forecasts are based on historical experience, current backlog, expected market demand, and other industry information. In the market approach, we utilized the guideline company method, which involved calculating revenue multiples based on operating data from guideline publicly traded companies. Multiples derived from guideline companies provide an indication of how much a knowledgeable investor in the marketplace would be willing to pay for a company. These multiples were evaluated and adjusted based on specific characteristics of the Strategy and Innovation and Life Sciences reporting units relative to the selected guideline companies and applied to the reporting units' operating data to arrive at an indication of value. Intangible Assets Intangible assets as of June 30, 2021 and December 31, 2020 consisted of the following: As of June 30, 2021 As of December 31, 2020 Useful Life Gross Accumulated Gross Accumulated Customer relationships 3 to 13 $ 71,465 $ 54,833 $ 73,629 $ 56,232 Trade names 6 6,000 4,653 6,130 4,287 Technology and software 5 5,800 5,509 5,800 5,380 Non-competition agreements 5 1,880 1,330 2,090 1,541 Customer contracts 2 800 663 800 526 Total $ 85,945 $ 66,988 $ 88,449 $ 67,966 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 $2.3 million and $3.2 million for the three months ended June 30, 2021 and 2020, respectively; and $4.7 million and $6.4 million for the six months ended June 30, 2021 and 2020. The table below sets forth the estimated annual amortization expense for the intangible assets recorded as of June 30, 2021. Year Ending December 31, Estimated Amortization Expense 2021 $ 9,059 2022 $ 6,878 2023 $ 4,231 2024 $ 1,384 2025 $ 566 Actual future amortization expense could differ from these estimated amounts as a result of future acquisitions, dispositions, and other factors. |
Revenues
Revenues | 3 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues For the three months ended June 30, 2021 and 2020, we recognized revenues of $230.1 million and $217.9 million, respectively. Of the $230.1 million recognized in the second quarter of 2021, we recognized revenues of $15.7 million from obligations satisfied, or partially satisfied, in prior periods, of which $13.5 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $2.2 million was primarily due to the release of allowances on unbilled services as a result of securing contract amendments. Of the $217.9 million recognized in the second quarter of 2020, we recognized revenues of $5.6 million from obligations satisfied, or partially satisfied, in prior periods, of which $4.0 million was primarily due to the release of allowances on unbilled services as a result of securing contract amendments and $1.6 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements. For the six months ended June 30, 2021 and 2020, we recognized revenues of $433.3 million and $440.5 million, respectively. Of the $433.3 million recognized in the first six months of 2021, we recognized revenues of $20.8 million from obligations satisfied, or partially satisfied, in prior periods, of which $13.9 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $6.9 million was primarily due to the release of allowances on unbilled services as a result of securing contract amendments. Of the $440.5 million recognized in the first six months of 2020, we recognized revenues of $10.0 million from obligations satisfied, or partially satisfied, in prior periods, of which $6.2 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $3.8 million was primarily due to the release of allowances on unbilled services as a result of securing contract amendments. As of June 30, 2021, we had $66.7 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 $66.7 million of performance obligations, we expect to recognize approximately $29.2 million as revenue in 2021, $23.1 million in 2022, and the remaining $14.4 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 as of June 30, 2021 and December 31, 2020 was $25.8 million and $17.3 million, respectively. The $8.5 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
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, unvested restricted stock units, and outstanding common stock options, to the extent dilutive. In periods for which 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 Six Months Ended 2021 2020 2021 2020 Net income (loss) from continuing operations $ 12,797 $ 13,572 $ 18,202 $ (28,701) Loss from discontinued operations, net of tax — (25) — (60) Net income (loss) $ 12,797 $ 13,547 $ 18,202 $ (28,761) Weighted average common shares outstanding – basic 21,555 21,869 21,743 21,848 Weighted average common stock equivalents 316 247 362 — Weighted average common shares outstanding – diluted 21,871 22,116 22,105 21,848 Net earnings (loss) per basic share: Net income (loss) from continuing operations $ 0.59 $ 0.62 $ 0.84 $ (1.31) Loss from discontinued operations, net of tax — — — (0.01) Net income (loss) $ 0.59 $ 0.62 $ 0.84 $ (1.32) Net earnings (loss) per diluted share: Net income (loss) from continuing operations $ 0.59 $ 0.61 $ 0.82 $ (1.31) Loss from discontinued operations, net of tax — — — (0.01) Net income (loss) $ 0.59 $ 0.61 $ 0.82 $ (1.32) The number of anti-dilutive securities excluded from the computation of the weighted average common stock equivalents presented above were as follows: As of June 30, 2021 2020 Unvested restricted stock awards 27 58 Total anti-dilutive securities 27 58 In November 2020, our board of directors authorized a share repurchase program (the “2020 Share Repurchase Program”) permitting us to repurchase up to $50 million of our common stock through December 31, 2021. The 2020 Share Repurchase Program was authorized subsequent to the expiration of our prior share repurchase program (the “2015 Share Repurchase Program”) on October 31, 2020. The 2015 Share Repurchase Program permitted us to repurchase up to $125 million of our common stock through October 31, 2020. During the third quarter of 2021, our board of directors authorized an extension of the 2020 Share Repurchase Program through December 31, 2022 and increased the authorized amount from $50 million to $100 million.The amount and timing of repurchases under both share repurchase programs were and will continue to be determined by management and 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. All shares repurchased and retired are reflected as a reduction to our basic weighted average shares outstanding based on the trade date of the share repurchase. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements A summary of the carrying amounts of our debt follows: June 30, December 31, Senior secured credit facility $ 265,000 $ 200,000 Promissory note due 2024 3,053 3,279 Total long-term debt $ 268,053 $ 203,279 Current maturities of long-term debt (551) (499) Long-term debt, net of current portion $ 267,502 $ 202,780 Below is a summary of the scheduled remaining principal payments of our debt as of June 30, 2021. Principal Payments of Long-Term Debt 2021 $ 273 2022 $ 559 2023 $ 575 2024 $ 266,646 Senior Secured Credit Facility The Company has a $600 million 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 September 27, 2024. 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 $750 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 1.125% per annum and 1.875% per annum, in the case of LIBOR borrowings, or between 0.125% per annum and 0.875% 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 upon an Event of Default (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) of 3.75 to 1.00; however the maximum permitted Consolidated Leverage Ratio will increase to 4.00 to 1.00 upon the occurrence of certain transactions, 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. For purposes of the Consolidated Leverage Ratio, total debt is on a gross basis and is not netted against our cash balances. At June 30, 2021, we were in compliance with these financial covenants with a Consolidated Leverage Ratio of 2.80 to 1.00 and a Consolidated Interest Coverage Ratio of 13.83 to 1.00. Borrowings outstanding under the Amended Credit Agreement at June 30, 2021 totaled $265.0 million. These borrowings carried a weighted average interest rate of 2.4%, including the effect of the interest rate swaps described in Note 9 “Derivative Instruments and Hedging Activity." Borrowings outstanding under the Amended Credit Agreement at December 31, 2020 were $200.0 million and carried a weighted average interest rate of 2.5%, including the effect of the interest rate swaps. 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 June 30, 2021, we had outstanding letters of credit totaling $0.7 million, which are used as security deposits for our office facilities. As of June 30, 2021, the unused borrowing capacity under the revolving credit facility was $334.3 million. Promissory Note due 2024 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges for the three and six months ended June 30, 2021 were $0.9 million and $1.5 million, respectively, and primarily related to rent and related expenses, net of sublease income, and accelerated depreciation on furniture and fixtures for vacated office spaces. Restructuring charges for the three and six months ended June 30, 2020 were $0.1 million and $1.7 million, respectively. Restructuring charges recognized in the first six months of 2020 include a $1.2 million accrual for the termination of a third-party advisor agreement, $0.3 million related to workforce reductions to better align resources with market demand, and $0.1 million related to workforce reductions in our corporate operations. In the fourth quarter of 2020, we announced a restructuring plan to reduce operating costs to address the impact of the COVID-19 pandemic on our business. The restructuring plan, which was substantially complete in the fourth quarter of 2020, provided for a reduction in certain leased office spaces and a reduction in workforce. The table below sets forth the changes in the carrying amount of our restructuring charge liability by restructuring type for the six months ended June 30, 2021. Employee Costs Office Space Reductions Other Total Balance as of December 31, 2020 $ 2,447 $ 84 $ 893 $ 3,424 Additions 4 — 200 204 Payments (2,438) (67) (266) (2,771) Adjustments (3) — — (3) Balance as of June 30, 2021 $ 10 $ 17 $ 827 $ 854 The restructuring charge liability related to employee costs at June 30, 2021 is expected to be paid in the next 12 months and is included as a component of accrued payroll and related benefits. The employee related payments made in the first six months of 2021 primarily related to the fourth quarter 2020 restructuring plan. The restructuring charge liability related to office space reductions at June 30, 2021 is included as a component of accrued expenses and other current liabilities. The $0.8 million other restructuring charge liability at June 30, 2021 is primarily related to the termination of a third-party advisor agreement and is expected to be paid over the next 19 months and is included as a component of accrued expenses and other current liabilities and deferred compensation and other liabilities. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activity | Derivative Instruments 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%. On January 30, 2020, we entered into a forward interest rate swap agreement effective December 31, 2019 and ending December 31, 2024, with a notional amount of $50.0 million. We entered into this derivative instrument to further 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 1.500%. On March 16, 2020, we entered into a forward interest rate swap agreement effective February 28, 2020 and ending February 28, 2025, with a notional amount of $100.0 million. We entered into this derivative instrument to further 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 0.885%. We recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. We have designated these derivative instruments as cash flow hedges. Therefore, changes in the fair value of the derivative instruments are recorded to other comprehensive income (“OCI”) to the extent effective and reclassified into interest expense upon settlement. As of June 30, 2021, it was anticipated that $1.7 million of the losses, 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 swaps designated as a cash flow hedging instrument as of June 30, 2021 and December 31, 2020. Fair Value (Derivative Asset and Liability) Balance Sheet Location June 30, December 31, Accrued expenses and other current liabilities $ 2,046 $ 2,100 Deferred compensation and other liabilities $ 1,086 $ 3,297 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020. Level 1 Level 2 Level 3 Total June 30, 2021 Assets: Convertible debt investment $ — $ — $ 59,972 $ 59,972 Deferred compensation assets — 37,047 — 37,047 Total assets $ — $ 37,047 $ 59,972 $ 97,019 Liabilities: Interest rate swaps $ — $ 3,132 $ — $ 3,132 Contingent consideration for business acquisition — — 1,812 1,812 Total liabilities $ — $ 3,132 $ 1,812 $ 4,944 December 31, 2020 Assets: Convertible debt investment $ — $ — $ 64,364 $ 64,364 Deferred compensation assets — 34,056 — 34,056 Total assets $ — $ 34,056 $ 64,364 $ 98,420 Liabilities: Interest rate swaps $ — $ 5,397 $ — $ 5,397 Contingent consideration for business acquisition — — 1,770 $ 1,770 Total liabilities $ — $ 5,397 $ 1,770 $ 7,167 Interest rate swaps: The fair values of our interest rate swaps were derived using estimates to settle the interest rate swap agreements, which are based on the net present value of expected future cash flows on each leg of the swaps utilizing market-based inputs and a discount rate reflecting the risks involved. Refer to Note 9 “Derivative Instruments and Hedging Activity” for additional information on our interest rate swaps. Convertible debt investment: In 2014 and 2015, we invested $27.9 million, in the form of zero coupon convertible debt (the "initial convertible notes"), in Shorelight Holdings, LLC (“Shorelight”), the parent company of Shorelight, 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. In the first quarter of 2020, we invested an additional $13.0 million, in the form of 1.69% convertible debt with a senior liquidation preference to the initial convertible notes (the "additional convertible note") and amended our initial convertible notes to extend the maturity date to January 17, 2024, which coincides with the maturity date of the additional convertible note. 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 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 scenario-based approach in the form of a hybrid analysis that consists of a Monte Carlo simulation model and an expected return analysis. The conclusion of value for our investment is based on the probability weighted assessment of both scenarios. The hybrid analysis utilizes certain assumptions including the assumed holding period through the maturity date of January 17, 2024, the applicable waterfall distribution at the end of the expected holding period based on the rights and privileges of the various instruments; cash flow projections discounted at the risk-adjusted rate of 22.5% and 24.0% as of June 30, 2021 and December 31, 2020, respectively; and the concluded equity volatility of 45.0% as of both June 30, 2021 and December 31, 2020, 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 investments on our consolidated balance sheets. The table below sets forth the changes in the balance of the convertible debt investment for the six months ended June 30, 2021. Convertible Debt Investment Balance as of December 31, 2020 $ 64,364 Change in fair value of convertible debt investment (4,392) Balance as of June 30, 2021 $ 59,972 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 acquisition: We estimate the fair value of acquisition-related contingent consideration using either a probability-weighted assessment of the specific financial performance targets being measured 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 a discount rate which typically reflects a risk-free rate, and was 2.39% and 2.41% as of June 30, 2021 and December 31, 2020, respectively. 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 six months ended June 30, 2021. Contingent Consideration for Business Acquisitions Balance as of December 31, 2020 1,770 Change in fair value of contingent consideration for business acquisition 42 Balance as of June 30, 2021 $ 1,812 Financial assets and liabilities not recorded at fair value are as follows: Preferred Stock Investment In the fourth quarter of 2019, we invested $5.0 million, in the form of preferred stock, in Medically Home Group, Inc. ("Medically Home"), a healthcare technology-enabled services company. To determine the appropriate accounting treatment for our investment, we performed a VIE analysis and concluded that Medically Home does not meet the definition of a VIE. We also reviewed the characteristics of our investment to confirm that the preferred stock is 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 for our investment in Medically Home to be that of an equity security with no readily determinable fair value. We elected to apply the measurement alternative at the time of the purchase and will continue to do so until the investment does not qualify to be so measured. Under the measurement alternative, the investment is carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment in Medically Home. On a quarterly basis, we review the information available to determine whether an orderly and observable transaction for the same or similar equity instrument occurred, and remeasure the fair value of the preferred stock using such identified transactions, with changes in the fair value recorded in consolidated statement of operations. During the six months ended June 30, 2021, there has been no impairment, nor any observable price change related to our investment. As of June 30, 2021, the carrying amount of our preferred stock investment was $6.7 million. 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 7 “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 7 “Financing Arrangements” for additional information on our promissory note due 2024. Cash and Cash Equivalents and Other Financial Instruments 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) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The table below sets forth the components of other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2021 and 2020. Three Months Ended Three Months Ended Before Tax Net of Before Tax Net of Other comprehensive income (loss): Foreign currency translation adjustments $ 82 $ — $ 82 $ 104 $ — $ 104 Unrealized gain (loss) on investment $ 1,936 $ (514) $ 1,422 $ (7,670) $ 1,992 $ (5,678) Unrealized gain (loss) on cash flow hedges: Change in fair value $ (305) $ 78 $ (227) $ (2,640) $ 686 $ (1,954) Reclassification adjustments into earnings 601 (156) 445 337 (88) 249 Net unrealized gain (loss) $ 296 $ (78) $ 218 $ (2,303) $ 598 $ (1,705) Other comprehensive income (loss) $ 2,314 $ (592) $ 1,722 $ (9,869) $ 2,590 $ (7,279) Six Months Ended Six Months Ended Before Tax Net of Before Tax Net of Other comprehensive income (loss): Foreign currency translation adjustments $ 482 $ — $ 482 $ (675) $ — $ (675) Unrealized gain (loss) on investment $ (4,392) $ 1,166 $ (3,226) $ (8,018) $ 2,082 $ (5,936) Unrealized gain (loss) on cash flow hedges: Change in fair value $ 884 $ (259) $ 625 $ (4,912) $ 1,276 $ (3,636) Reclassification adjustments into earnings 1,381 (359) 1,022 333 (87) 246 Net unrealized gain (loss) $ 2,265 $ (618) $ 1,647 $ (4,579) $ 1,189 $ (3,390) Other comprehensive income (loss) $ (1,645) $ 548 $ (1,097) $ (13,272) $ 3,271 $ (10,001) 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 Available-for-Sale Investment Cash Flow Hedges Total Balance, December 31, 2020 $ (218) $ 17,205 $ (3,926) $ 13,061 Current period change 482 (3,226) 1,647 (1,097) Balance, June 30, 2021 $ 264 $ 13,979 $ (2,279) $ 11,964 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesFor the three months ended June 30, 2021, our effective tax rate was 21.3% as we recognized income tax expense from continuing operations of $3.5 million on income from continuing operations of $16.3 million. The effective tax rate of 21.3% was more favorable than the statutory rate, inclusive of state income taxes, of 26.6%, primarily due to a discrete tax benefit related to electing the Global Intangible Low- Taxed Income (“GILTI”) high-tax exclusion retroactively for the 2018 tax year. On July 20, 2020, the U.S. Treasury issued and enacted final regulations related to GILTI that allow certain U.S. taxpayers to elect to exclude foreign income that is subject to a high effective tax rate from their GILTI inclusions. The GILTI high-tax exclusion is an annual election and is retroactively available. This favorable item was partially offset by certain nondeductible expense items. For the three months ended June 30, 2020, our effective tax rate was 20.1% as we recognized an income tax expense from continuing operations of $3.4 million on income from continuing operations of $17.0 million. The effective tax rate of 20.1% was more favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to the current year-to-date pre-tax losses and the impact during the quarter of certain nondeductible expense items, including the nondeductible portion of the goodwill impairment charges, based on the attribution of those expenses to the quarter in accordance with the allocation of income tax expense on a current year-to-date basis. The effective tax rate also reflected the positive impact of certain federal tax credits. For the six months ended June 30, 2021, our effective tax rate was 21.5% as we recognized income tax expense from continuing operations of $5.0 million on income from continuing operations of $23.2 million. The effective tax rate of 21.5% was more favorable than the statutory rate, inclusive of state income taxes, of 26.6% primarily due to the discrete tax benefit related to electing the GILTI high-tax exclusion retroactively for the 2018 tax year and a discrete tax benefit for share-based compensation awards that vested during the first quarter. These favorable items were partially offset by certain nondeductible expense items. For the six months ended June 30, 2020, our effective tax rate was 21.4% as we recognized an income tax benefit from continuing operations of $7.8 million on a loss from continuing operations of $36.5 million. The effective tax rate of 21.4% was less favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to certain nondeductible expense items and the nondeductible portion of the goodwill impairment charges recorded during the first quarter of 2020. These unfavorable items were partially offset by a discrete tax benefit for share-based compensation awards that vested during the first quarter and the discrete tax benefit for the remeasurement of a portion of our income tax receivable as a result of the enactment of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in the first quarter of 2020. The CARES Act, which was signed into law on March 27, 2020, is an approximately $2 trillion emergency economic stimulus package in response to the COVID-19 outbreak, which among other items, includes income tax provisions relating to net operating loss carryback periods and technical corrections to tax depreciation methods for qualified improvement property. During 2020, as a result of the CARES Act, we recognized a $1.5 million tax benefit related to the remeasurement of a portion of our income tax receivable for the federal net operating loss incurred in 2018 and the expected federal net operating loss in 2020 that will be carried back to prior year income, both for a refund at the higher, prior year tax rate. As a result of electing the retroactive GILTI high-tax exclusion during 2021, we recognized a $1.0 million tax benefit of which $0.4 million related to carrying back our increased 2018 federal net operating loss to prior year income for a refund at the higher, prior year tax rate. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Litigation Oaktree On November 9, 2018, Huron Consulting Services LLC, a wholly owned subsidiary of Huron, was engaged by Oaktree Medical Centre LLC, a management services organization (“Oaktree”), to perform interim management and financial advisory services. As part of the services, a Huron employee was appointed by Oaktree’s board of directors to serve as Chief Restructuring Officer of Oaktree (the "CRO"). The engagement letter through which Oaktree retained Huron’s services (the "Engagement Letter") states that all disputes or claims are subject to binding arbitration, disclaims special, consequential, incidental and exemplary damages and losses and caps liability to the fees paid for the portion of the engagement giving rise to any liability. On September 19, 2019, Oaktree and certain of its affiliates filed for Chapter 7 liquidation in the U.S. Bankruptcy Court for the Western District of North Carolina, with the cases subsequently transferred to the District of South Carolina. As a result of the bankruptcy filing, a Chapter 7 trustee was appointed to oversee the bankruptcy estates, at which time Huron’s services for Oaktree concluded. In April 2021, Trustee’s counsel communicated in writing to Huron its intent to pursue various claims against Huron and the CRO, among others, on behalf of the bankruptcy estates related to the services carried out by Huron and the CRO during the engagement. Trustee's counsel has subsequently asserted that certain provisions in the Engagement Letter are unenforceable and/or inapplicable and that Huron and the CRO, among others, did not develop and implement a Chapter 11 restructuring plan on a timely basis and that their failure to do so led to significant damages. We believe the Trustee’s allegations with respect to Huron and the CRO are without merit and will vigorously defend ourselves should any claim arising out of these alleged facts and circumstances be asserted against us by the Trustee. Notwithstanding the foregoing, given the inherent risk and uncertainty associated with all litigation, we cannot estimate the potential liability with respect to such allegations at this time. 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 or subject to any claim that, in the current opinion of management, could reasonably be expected to 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 $0.7 million and $1.6 million were outstanding at June 30, 2021 and December 31, 2020, respectively, 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 June 30, 2021 and December 31, 2020, the total estimated fair value of our outstanding contingent consideration liability was $1.8 million. 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 serves national and regional hospitals, integrated health systems, academic medical centers, community hospitals, and medical groups. Our Healthcare professionals have a depth of expertise in business operations, including financial and operational improvement, care transformation, and revenue cycle managed services; organizational transformation; and digital, technology and analytic solutions. Most healthcare organizations are focused on changing the way care is delivered; establishing a sustainable business model centered around optimal cost structures, reimbursement models and financial strategies; and evolving their digital, technology and analytic capabilities. Our solutions help clients adapt to this rapidly changing healthcare environment to become a more agile, efficient and consumer-centric organization. We use our deep industry expertise to help clients solve a diverse set of business issues, including, but not limited to, optimizing financial and operational performance, improving care delivery and clinical outcomes, increasing physician, patient and employee satisfaction, evolving organizational culture, and maximizing return on technology investments. • Business Advisory Our Business Advisory segment works with C-suite executives, boards, and business unit and functional leadership across a diverse set of organizations, including healthy, well-capitalized companies to organizations in transition, and across a broad range of industries, including life sciences, financial services, healthcare, education, energy and utilities, industrials and manufacturing, and the public sector. Our Business Advisory professionals have deep industry, functional and technical expertise that they put forward when delivering our digital, technology and analytics, strategy and innovation and corporate finance and restructuring services. In today’s disruptive environment, organizations must reimagine their historical strategies and financial and operating models to sustain and advance their competitive advantage. Organizations also recognize the need to adopt technologies, automation and analytics to improve their operations and compete in a rapidly changing environment. Our experts help organizations across industries with a variety of business challenges, including, but not limited to, embedding technology and analytics throughout their internal and customer-facing operations, developing insights into the needs of tomorrow’s customers in order to evolve their enterprise and business unit strategies, bringing new products to market, and managing through stressed and distressed situations to create a viable path forward for stakeholders. • Education Our Education segment serves public and private colleges and universities, academic medical centers, research institutes and other not-for-profit organizations. Our Education professionals have a depth of expertise in strategy and innovation; business operations, including the research enterprise and student lifecycle; digital, technology and analytic solutions; and organizational transformation. Our Education segment clients are increasingly faced with financial and/or demographic challenges as well as increased competition. To remain competitive, organizations must challenge traditional operating and financial models and reimagine strategic, operational and research-centered opportunities that advance their mission while strengthening their business models. We collaborate with clients to address these challenges and ensure they have a sustainable future. We combine our deep industry, functional and technical expertise to help clients solve their most pressing challenges, including, but not limited to, transforming business operations with technology; strengthening research strategies and support services; evolving their organizational strategy; optimizing financial and operational performance; and enhancing the student lifecycle. 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 six months ended June 30, 2021 and 2020, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Three Months Ended Six Months Ended 2021 2020 2021 2020 Healthcare: Revenues $ 101,357 $ 85,356 $ 181,079 $ 180,934 Operating income $ 27,624 $ 21,171 $ 48,108 $ 45,221 Segment operating income as a percentage of segment revenues 27.3 % 24.8 % 26.6 % 25.0 % Business Advisory: Revenues $ 70,908 $ 70,470 $ 143,775 $ 135,375 Operating income $ 14,315 $ 16,684 $ 27,392 $ 26,526 Segment operating income as a percentage of segment revenues 20.2 % 23.7 % 19.1 % 19.6 % Education: Revenues $ 57,861 $ 62,031 $ 108,485 $ 124,167 Operating income $ 13,770 $ 16,128 $ 22,423 $ 29,244 Segment operating income as a percentage of segment revenues 23.8 % 26.0 % 20.7 % 23.6 % Total Company: Revenues $ 230,126 $ 217,857 $ 433,339 $ 440,476 Reimbursable expenses 3,252 2,970 5,186 22,273 Total revenues and reimbursable expenses $ 233,378 $ 220,827 $ 438,525 $ 462,749 Segment operating income $ 55,709 $ 53,983 $ 97,923 $ 100,991 Items not allocated at the segment level: Other operating expenses 34,325 31,638 63,162 58,784 Litigation and other losses (gains) — — 42 (150) Depreciation and amortization 5,255 6,391 10,350 12,438 Goodwill impairment charges 1 — — — 59,816 Other expense (income), net (122) (1,032) 1,177 6,605 Income (loss) from continuing operations before taxes $ 16,251 $ 16,986 $ 23,192 $ (36,502) (1) The non-cash goodwill impairment charges are 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 six months ended June 30, 2021 and 2020. In conjunction with our continuous evaluation of the appropriate level of disaggregation of revenues as our business evolves and in consideration of a group hire of approximately 300 employees in our Healthcare Managed Services solution within our Healthcare segment in the second quarter of 2021, we began assessing our operating performance by the following three employee types: billable consultants, full-time equivalents, and Healthcare Managed Services employees. The disaggregation of revenues by employee type previously reported for the three and six months ended June 30, 2020 was revised below to reflect this change. This change has no impact on our consolidated total revenues or total revenues by segment. Three Months Ended June 30, 2021 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 55,095 $ 31,350 $ 17,886 $ 104,331 Time and expense 18,039 35,988 33,039 87,066 Performance-based 23,061 1,517 — 24,578 Software support, maintenance and subscriptions 5,162 2,053 6,936 14,151 Total $ 101,357 $ 70,908 $ 57,861 $ 230,126 Employee Type (1) Revenue generated by billable consultants $ 66,810 $ 66,051 $ 49,291 $ 182,152 Revenue generated by full-time equivalents 20,498 4,857 8,570 33,925 Revenue generated by Healthcare Managed Services employees 14,049 — — 14,049 Total $ 101,357 $ 70,908 $ 57,861 $ 230,126 Timing of Revenue Recognition Revenue recognized over time $ 99,884 $ 70,908 $ 57,861 $ 228,653 Revenue recognized at a point in time 1,473 — — 1,473 Total $ 101,357 $ 70,908 $ 57,861 $ 230,126 Six Months Ended June 30, 2021 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 103,390 $ 61,231 $ 33,145 $ 197,766 Time and expense 29,414 73,621 61,823 164,858 Performance-based 37,730 4,926 — 42,656 Software support, maintenance and subscriptions 10,545 3,997 13,517 28,059 Total $ 181,079 $ 143,775 $ 108,485 $ 433,339 Employee Type (1) Revenue generated by billable consultants $ 118,555 $ 135,898 $ 91,819 $ 346,272 Revenue generated by full-time equivalents 40,727 7,877 16,666 65,270 Revenue generated by Healthcare Managed Services employees 21,797 — — 21,797 Total $ 181,079 $ 143,775 $ 108,485 $ 433,339 Timing of Revenue Recognition Revenue recognized over time $ 178,648 $ 143,775 $ 108,485 $ 430,908 Revenue recognized at a point in time 2,431 — — 2,431 Total $ 181,079 $ 143,775 $ 108,485 $ 433,339 Three Months Ended June 30, 2020 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 50,803 $ 27,374 $ 11,397 $ 89,574 Time and expense 14,029 40,264 44,568 98,861 Performance-based 14,480 1,586 695 16,761 Software support, maintenance and subscriptions 6,044 1,246 5,371 12,661 Total $ 85,356 $ 70,470 $ 62,031 $ 217,857 Employee Type (1) Revenue generated by billable consultants $ 55,249 $ 67,269 $ 53,187 $ 175,705 Revenue generated by full-time equivalents 22,821 3,201 8,844 34,866 Revenue generated by Healthcare Managed Services employees 7,286 — — 7,286 Total $ 85,356 $ 70,470 $ 62,031 $ 217,857 Timing of Revenue Recognition Revenue recognized over time $ 84,941 $ 70,470 $ 62,030 $ 217,441 Revenue recognized at a point in time 415 — 1 416 Total $ 85,356 $ 70,470 $ 62,031 $ 217,857 Six Months Ended June 30, 2020 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 106,588 $ 52,767 $ 24,572 $ 183,927 Time and expense 28,762 77,853 88,279 194,894 Performance-based 33,401 2,232 695 36,328 Software support, maintenance and subscriptions 12,183 2,523 10,621 25,327 Total $ 180,934 $ 135,375 $ 124,167 $ 440,476 Employee Type (1) Revenue generated by full-time billable consultants $ 117,115 $ 129,226 $ 106,623 $ 352,964 Revenue generated by full-time equivalents 48,749 6,149 17,544 72,442 Revenue generated by Healthcare Managed Services employees 15,070 — — 15,070 Total $ 180,934 $ 135,375 $ 124,167 $ 440,476 Timing of Revenue Recognition Revenue recognized over time $ 179,400 $ 135,375 $ 124,052 $ 438,827 Revenue recognized at a point in time 1,534 — 115 1,649 Total $ 180,934 $ 135,375 $ 124,167 $ 440,476 (1) Billable consultants consist of our consulting 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 leadership coaches and their support staff within our Culture and Organizational Excellence solution, consultants who work variable schedules as needed by our clients, and full-time employees who provide software support and maintenance services to our clients. Healthcare Managed Services employees manage and provide revenue cycle billing, collections, insurance verification and change integrity services to healthcare clients. At June 30, 2021, one client in our Healthcare segment had a total receivable and unbilled services balance that accounted for 10.4%of our combined balance of receivables from clients, net and unbilled services, net. The outstanding balance for this client is the result of outstanding invoices due in the normal course of the contract payment terms and services performed in advance of the contract billing schedule. At December 31, 2020, no single client accounted for greater than 10% of our combined balance of receivables from clients, net |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted In October 2020, the FASB issued ASU 2020-10, Codification Improvements. ASU 2020-10 situates all disclosure guidance within the appropriate disclosure section of the Codification and makes other improvements and technical corrections to the Codification. We adopted ASU 2020-10 effective January 1, 2021, which did not have any impact on our consolidated financial statements. |
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, unvested restricted stock units, and outstanding common stock options, to the extent dilutive. In periods for which 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. |
Derivative Instruments and Hedging Activity | We recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. We have designated these derivative instruments as cash flow hedges. Therefore, changes in the fair value of the derivative instruments are recorded to other comprehensive income (“OCI”) to the extent effective and reclassified into interest expense upon settlement. |
Fair Value of Financial Instruments | 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. |
Investments | The investment is carried at fair value with unrealized holding gains and losses excluded from earnings and reported in other comprehensiveincome. |
Equity Securities without Readily Determinable Fair Value | We elected to apply the measurement alternative at the time of the purchase and will continue to do so until the investment does not qualify to be so measured. Under the measurement alternative, the investment is carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment in Medically Home. On a quarterly basis, we review the information available to determine whether an orderly and observable transaction for the same or similar equity instrument occurred, and remeasure the fair value of the preferred stock using such identified transactions, with changes in the fair value recorded in consolidated statement of operations. |
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. |
Segment Reporting (Policies)
Segment Reporting (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021. Healthcare Business Education Total Balance as of December 31, 2020: Goodwill $ 636,810 $ 308,935 $ 104,384 $ 1,050,129 Accumulated impairment losses (208,081) (247,811) — (455,892) Goodwill, net as of December 31, 2020 428,729 61,124 104,384 594,237 Goodwill recorded in connection with a business acquisition (1) — 3,315 — 3,315 Goodwill, net as of June 30, 2021 $ 428,729 $ 64,439 $ 104,384 $ 597,552 (1) On February 1, 2021, we completed the acquisition of Unico Solution, a data strategy and technology consulting firm focused on helping clients use their data to speed business transformation and accelerate cloud adoption. The results of operations of Unico Solution are included in our consolidated financial statements and results of operations of our Business Advisory segment from the date of acquisition. This acquisition is not significant to our consolidated financial statements. |
Intangible Assets | Intangible assets as of June 30, 2021 and December 31, 2020 consisted of the following: As of June 30, 2021 As of December 31, 2020 Useful Life Gross Accumulated Gross Accumulated Customer relationships 3 to 13 $ 71,465 $ 54,833 $ 73,629 $ 56,232 Trade names 6 6,000 4,653 6,130 4,287 Technology and software 5 5,800 5,509 5,800 5,380 Non-competition agreements 5 1,880 1,330 2,090 1,541 Customer contracts 2 800 663 800 526 Total $ 85,945 $ 66,988 $ 88,449 $ 67,966 |
Schedule of Future Amortization Expense | The table below sets forth the estimated annual amortization expense for the intangible assets recorded as of June 30, 2021. Year Ending December 31, Estimated Amortization Expense 2021 $ 9,059 2022 $ 6,878 2023 $ 4,231 2024 $ 1,384 2025 $ 566 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended 2021 2020 2021 2020 Net income (loss) from continuing operations $ 12,797 $ 13,572 $ 18,202 $ (28,701) Loss from discontinued operations, net of tax — (25) — (60) Net income (loss) $ 12,797 $ 13,547 $ 18,202 $ (28,761) Weighted average common shares outstanding – basic 21,555 21,869 21,743 21,848 Weighted average common stock equivalents 316 247 362 — Weighted average common shares outstanding – diluted 21,871 22,116 22,105 21,848 Net earnings (loss) per basic share: Net income (loss) from continuing operations $ 0.59 $ 0.62 $ 0.84 $ (1.31) Loss from discontinued operations, net of tax — — — (0.01) Net income (loss) $ 0.59 $ 0.62 $ 0.84 $ (1.32) Net earnings (loss) per diluted share: Net income (loss) from continuing operations $ 0.59 $ 0.61 $ 0.82 $ (1.31) Loss from discontinued operations, net of tax — — — (0.01) Net income (loss) $ 0.59 $ 0.61 $ 0.82 $ (1.32) |
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 June 30, 2021 2020 Unvested restricted stock awards 27 58 Total anti-dilutive securities 27 58 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Amounts of Debt | A summary of the carrying amounts of our debt follows: June 30, December 31, Senior secured credit facility $ 265,000 $ 200,000 Promissory note due 2024 3,053 3,279 Total long-term debt $ 268,053 $ 203,279 Current maturities of long-term debt (551) (499) Long-term debt, net of current portion $ 267,502 $ 202,780 |
Schedule of Maturities of Long-term Debt | Below is a summary of the scheduled remaining principal payments of our debt as of June 30, 2021. Principal Payments of Long-Term Debt 2021 $ 273 2022 $ 559 2023 $ 575 2024 $ 266,646 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021. Employee Costs Office Space Reductions Other Total Balance as of December 31, 2020 $ 2,447 $ 84 $ 893 $ 3,424 Additions 4 — 200 204 Payments (2,438) (67) (266) (2,771) Adjustments (3) — — (3) Balance as of June 30, 2021 $ 10 $ 17 $ 827 $ 854 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 swaps designated as a cash flow hedging instrument as of June 30, 2021 and December 31, 2020. Fair Value (Derivative Asset and Liability) Balance Sheet Location June 30, December 31, Accrued expenses and other current liabilities $ 2,046 $ 2,100 Deferred compensation and other liabilities $ 1,086 $ 3,297 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
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 June 30, 2021 and December 31, 2020. Level 1 Level 2 Level 3 Total June 30, 2021 Assets: Convertible debt investment $ — $ — $ 59,972 $ 59,972 Deferred compensation assets — 37,047 — 37,047 Total assets $ — $ 37,047 $ 59,972 $ 97,019 Liabilities: Interest rate swaps $ — $ 3,132 $ — $ 3,132 Contingent consideration for business acquisition — — 1,812 1,812 Total liabilities $ — $ 3,132 $ 1,812 $ 4,944 December 31, 2020 Assets: Convertible debt investment $ — $ — $ 64,364 $ 64,364 Deferred compensation assets — 34,056 — 34,056 Total assets $ — $ 34,056 $ 64,364 $ 98,420 Liabilities: Interest rate swaps $ — $ 5,397 $ — $ 5,397 Contingent consideration for business acquisition — — 1,770 $ 1,770 Total liabilities $ — $ 5,397 $ 1,770 $ 7,167 |
Fair Value of Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below sets forth the changes in the balance of the convertible debt investment for the six months ended June 30, 2021. Convertible Debt Investment Balance as of December 31, 2020 $ 64,364 Change in fair value of convertible debt investment (4,392) Balance as of June 30, 2021 $ 59,972 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below sets forth the changes in the balance of the contingent consideration for business acquisitions for the six months ended June 30, 2021. Contingent Consideration for Business Acquisitions Balance as of December 31, 2020 1,770 Change in fair value of contingent consideration for business acquisition 42 Balance as of June 30, 2021 $ 1,812 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss), Net of Tax | The table below sets forth the components of other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2021 and 2020. Three Months Ended Three Months Ended Before Tax Net of Before Tax Net of Other comprehensive income (loss): Foreign currency translation adjustments $ 82 $ — $ 82 $ 104 $ — $ 104 Unrealized gain (loss) on investment $ 1,936 $ (514) $ 1,422 $ (7,670) $ 1,992 $ (5,678) Unrealized gain (loss) on cash flow hedges: Change in fair value $ (305) $ 78 $ (227) $ (2,640) $ 686 $ (1,954) Reclassification adjustments into earnings 601 (156) 445 337 (88) 249 Net unrealized gain (loss) $ 296 $ (78) $ 218 $ (2,303) $ 598 $ (1,705) Other comprehensive income (loss) $ 2,314 $ (592) $ 1,722 $ (9,869) $ 2,590 $ (7,279) Six Months Ended Six Months Ended Before Tax Net of Before Tax Net of Other comprehensive income (loss): Foreign currency translation adjustments $ 482 $ — $ 482 $ (675) $ — $ (675) Unrealized gain (loss) on investment $ (4,392) $ 1,166 $ (3,226) $ (8,018) $ 2,082 $ (5,936) Unrealized gain (loss) on cash flow hedges: Change in fair value $ 884 $ (259) $ 625 $ (4,912) $ 1,276 $ (3,636) Reclassification adjustments into earnings 1,381 (359) 1,022 333 (87) 246 Net unrealized gain (loss) $ 2,265 $ (618) $ 1,647 $ (4,579) $ 1,189 $ (3,390) Other comprehensive income (loss) $ (1,645) $ 548 $ (1,097) $ (13,272) $ 3,271 $ (10,001) |
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated other comprehensive income, net of tax, includes the following components: Foreign Currency Available-for-Sale Investment Cash Flow Hedges Total Balance, December 31, 2020 $ (218) $ 17,205 $ (3,926) $ 13,061 Current period change 482 (3,226) 1,647 (1,097) Balance, June 30, 2021 $ 264 $ 13,979 $ (2,279) $ 11,964 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Components of Segment Information | The table below sets forth information about our operating segments for the three and six months ended June 30, 2021 and 2020, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Three Months Ended Six Months Ended 2021 2020 2021 2020 Healthcare: Revenues $ 101,357 $ 85,356 $ 181,079 $ 180,934 Operating income $ 27,624 $ 21,171 $ 48,108 $ 45,221 Segment operating income as a percentage of segment revenues 27.3 % 24.8 % 26.6 % 25.0 % Business Advisory: Revenues $ 70,908 $ 70,470 $ 143,775 $ 135,375 Operating income $ 14,315 $ 16,684 $ 27,392 $ 26,526 Segment operating income as a percentage of segment revenues 20.2 % 23.7 % 19.1 % 19.6 % Education: Revenues $ 57,861 $ 62,031 $ 108,485 $ 124,167 Operating income $ 13,770 $ 16,128 $ 22,423 $ 29,244 Segment operating income as a percentage of segment revenues 23.8 % 26.0 % 20.7 % 23.6 % Total Company: Revenues $ 230,126 $ 217,857 $ 433,339 $ 440,476 Reimbursable expenses 3,252 2,970 5,186 22,273 Total revenues and reimbursable expenses $ 233,378 $ 220,827 $ 438,525 $ 462,749 Segment operating income $ 55,709 $ 53,983 $ 97,923 $ 100,991 Items not allocated at the segment level: Other operating expenses 34,325 31,638 63,162 58,784 Litigation and other losses (gains) — — 42 (150) Depreciation and amortization 5,255 6,391 10,350 12,438 Goodwill impairment charges 1 — — — 59,816 Other expense (income), net (122) (1,032) 1,177 6,605 Income (loss) from continuing operations before taxes $ 16,251 $ 16,986 $ 23,192 $ (36,502) (1) The non-cash goodwill impairment charges are 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 | 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 six months ended June 30, 2021 and 2020. In conjunction with our continuous evaluation of the appropriate level of disaggregation of revenues as our business evolves and in consideration of a group hire of approximately 300 employees in our Healthcare Managed Services solution within our Healthcare segment in the second quarter of 2021, we began assessing our operating performance by the following three employee types: billable consultants, full-time equivalents, and Healthcare Managed Services employees. The disaggregation of revenues by employee type previously reported for the three and six months ended June 30, 2020 was revised below to reflect this change. This change has no impact on our consolidated total revenues or total revenues by segment. Three Months Ended June 30, 2021 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 55,095 $ 31,350 $ 17,886 $ 104,331 Time and expense 18,039 35,988 33,039 87,066 Performance-based 23,061 1,517 — 24,578 Software support, maintenance and subscriptions 5,162 2,053 6,936 14,151 Total $ 101,357 $ 70,908 $ 57,861 $ 230,126 Employee Type (1) Revenue generated by billable consultants $ 66,810 $ 66,051 $ 49,291 $ 182,152 Revenue generated by full-time equivalents 20,498 4,857 8,570 33,925 Revenue generated by Healthcare Managed Services employees 14,049 — — 14,049 Total $ 101,357 $ 70,908 $ 57,861 $ 230,126 Timing of Revenue Recognition Revenue recognized over time $ 99,884 $ 70,908 $ 57,861 $ 228,653 Revenue recognized at a point in time 1,473 — — 1,473 Total $ 101,357 $ 70,908 $ 57,861 $ 230,126 Six Months Ended June 30, 2021 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 103,390 $ 61,231 $ 33,145 $ 197,766 Time and expense 29,414 73,621 61,823 164,858 Performance-based 37,730 4,926 — 42,656 Software support, maintenance and subscriptions 10,545 3,997 13,517 28,059 Total $ 181,079 $ 143,775 $ 108,485 $ 433,339 Employee Type (1) Revenue generated by billable consultants $ 118,555 $ 135,898 $ 91,819 $ 346,272 Revenue generated by full-time equivalents 40,727 7,877 16,666 65,270 Revenue generated by Healthcare Managed Services employees 21,797 — — 21,797 Total $ 181,079 $ 143,775 $ 108,485 $ 433,339 Timing of Revenue Recognition Revenue recognized over time $ 178,648 $ 143,775 $ 108,485 $ 430,908 Revenue recognized at a point in time 2,431 — — 2,431 Total $ 181,079 $ 143,775 $ 108,485 $ 433,339 Three Months Ended June 30, 2020 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 50,803 $ 27,374 $ 11,397 $ 89,574 Time and expense 14,029 40,264 44,568 98,861 Performance-based 14,480 1,586 695 16,761 Software support, maintenance and subscriptions 6,044 1,246 5,371 12,661 Total $ 85,356 $ 70,470 $ 62,031 $ 217,857 Employee Type (1) Revenue generated by billable consultants $ 55,249 $ 67,269 $ 53,187 $ 175,705 Revenue generated by full-time equivalents 22,821 3,201 8,844 34,866 Revenue generated by Healthcare Managed Services employees 7,286 — — 7,286 Total $ 85,356 $ 70,470 $ 62,031 $ 217,857 Timing of Revenue Recognition Revenue recognized over time $ 84,941 $ 70,470 $ 62,030 $ 217,441 Revenue recognized at a point in time 415 — 1 416 Total $ 85,356 $ 70,470 $ 62,031 $ 217,857 Six Months Ended June 30, 2020 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 106,588 $ 52,767 $ 24,572 $ 183,927 Time and expense 28,762 77,853 88,279 194,894 Performance-based 33,401 2,232 695 36,328 Software support, maintenance and subscriptions 12,183 2,523 10,621 25,327 Total $ 180,934 $ 135,375 $ 124,167 $ 440,476 Employee Type (1) Revenue generated by full-time billable consultants $ 117,115 $ 129,226 $ 106,623 $ 352,964 Revenue generated by full-time equivalents 48,749 6,149 17,544 72,442 Revenue generated by Healthcare Managed Services employees 15,070 — — 15,070 Total $ 180,934 $ 135,375 $ 124,167 $ 440,476 Timing of Revenue Recognition Revenue recognized over time $ 179,400 $ 135,375 $ 124,052 $ 438,827 Revenue recognized at a point in time 1,534 — 115 1,649 Total $ 180,934 $ 135,375 $ 124,167 $ 440,476 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Unbilled services, net of allowances of $3,214 and $2,603, respectively | $ 90,119 | $ 53,959 |
Deferred revenues | $ 19,182 | 28,247 |
Restatement adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Unbilled services, net of allowances of $3,214 and $2,603, respectively | 7,200 | |
Accounts and Other Receivables, Net, Current | 700 | |
Deferred revenues | $ 6,500 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill | $ 1,050,129 | |
Accumulated impairment losses | (455,892) | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | $ 594,237 | |
Goodwill recorded in connection with a business acquisition | 3,315 | |
Goodwill, net ending balance | 597,552 | |
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 a business acquisition | 0 | |
Goodwill, net ending balance | 428,729 | |
Business Advisory | ||
Goodwill [Line Items] | ||
Goodwill | 308,935 | |
Accumulated impairment losses | (247,811) | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | 61,124 | |
Goodwill recorded in connection with a business acquisition | 3,315 | |
Goodwill, net ending balance | 64,439 | |
Education | ||
Goodwill [Line Items] | ||
Goodwill | 104,384 | |
Accumulated impairment losses | $ 0 | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | 104,384 | |
Goodwill recorded in connection with a business acquisition | 0 | |
Goodwill, net ending balance | $ 104,384 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill [Line Items] | |||||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 | $ 59,816,000 | |
Goodwill, net ending balance | 597,552,000 | 597,552,000 | |||
Amortization expense | $ 2,300,000 | $ 3,200,000 | $ 4,700,000 | $ 6,400,000 | |
Strategy and Innovation | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charges | $ 49,900,000 | ||||
Goodwill, net ending balance | 37,500,000 | ||||
Life Sciences | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charges | 9,900,000 | ||||
Goodwill, net ending balance | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Intangible assets | ||
Gross Carrying Amount | $ 85,945 | $ 88,449 |
Accumulated Amortization | 66,988 | 67,966 |
Customer relationships | ||
Intangible assets | ||
Gross Carrying Amount | 71,465 | 73,629 |
Accumulated Amortization | $ 54,833 | 56,232 |
Customer relationships | Minimum | ||
Intangible assets | ||
Useful Life (in years) | 3 years | |
Customer relationships | Maximum | ||
Intangible assets | ||
Useful Life (in years) | 13 years | |
Trade names | ||
Intangible assets | ||
Useful Life (in years) | 6 years | |
Gross Carrying Amount | $ 6,000 | 6,130 |
Accumulated Amortization | $ 4,653 | 4,287 |
Technology and software | ||
Intangible assets | ||
Useful Life (in years) | 5 years | |
Gross Carrying Amount | $ 5,800 | 5,800 |
Accumulated Amortization | $ 5,509 | 5,380 |
Non-competition agreements | ||
Intangible assets | ||
Useful Life (in years) | 5 years | |
Gross Carrying Amount | $ 1,880 | 2,090 |
Accumulated Amortization | $ 1,330 | 1,541 |
Customer contracts | ||
Intangible assets | ||
Useful Life (in years) | 2 years | |
Gross Carrying Amount | $ 800 | 800 |
Accumulated Amortization | $ 663 | $ 526 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization Expense (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 9,059 |
2022 | 6,878 |
2023 | 4,231 |
2024 | 1,384 |
2025 | $ 566 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenues | $ 230,126 | $ 217,857 | $ 433,339 | $ 440,476 | |
Performance obligation satisfied in previous period | 15,700 | 5,600 | 20,800 | 10,000 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Contract asset after allowance for credit loss | 25,800 | 25,800 | $ 17,300 | ||
Increase (decrease) in contract asset | (8,500) | ||||
Deferred revenues | 19,182 | 19,182 | $ 28,247 | ||
Increase (decrease) in performance obligation | (9,000) | ||||
Revenue recognized | 5,200 | 26,000 | |||
Change in estimated variable consideration | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Performance obligation satisfied in previous period | 2,200 | 4,000 | 6,900 | 3,800 | |
Release of allowance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Performance obligation satisfied in previous period | $ 13,500 | $ 1,600 | $ 13,900 | $ 6,200 |
Revenues - Performance Obligati
Revenues - Performance Obligations Information (Details) $ in Millions | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 66.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 29.2 |
Expected timing of satisfaction | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 23.1 |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 14.4 |
Expected timing of satisfaction | 0 years |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) from continuing operations | $ 12,797 | $ 13,572 | $ 18,202 | $ (28,701) |
Loss from discontinued operations, net of tax | 0 | (25) | 0 | (60) |
Net income (loss) | $ 12,797 | $ 13,547 | $ 18,202 | $ (28,761) |
Weighted average common shares outstanding - basic (shares) | 21,555 | 21,869 | 21,743 | 21,848 |
Weighted average common stock equivalents (shares) | 316 | 247 | 362 | 0 |
Weighted average common shares outstanding - diluted (shares) | 21,871 | 22,116 | 22,105 | 21,848 |
Net earnings (loss) per basic share: | ||||
Net income (loss) from continuing operations (USD per share) | $ 0.59 | $ 0.62 | $ 0.84 | $ (1.31) |
Loss from discontinued operations, net of tax (USD per share) | 0 | 0 | 0 | (0.01) |
Net income (loss) (USD per share) | 0.59 | 0.62 | 0.84 | (1.32) |
Net earnings (loss) per diluted share: | ||||
Net income (loss) from continuing operations (USD per share) | 0.59 | 0.61 | 0.82 | (1.31) |
Loss from discontinued operations, net of tax (USD per share) | 0 | 0 | 0 | (0.01) |
Net income (loss) (USD per share) | $ 0.59 | $ 0.61 | $ 0.82 | $ (1.32) |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Anti-dilutive Securities Excluded from Computation of Weighted Average Common Stock Equivalents (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (shares) | 27 | 58 |
Unvested restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (shares) | 27 | 58 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Nov. 30, 2020 | Oct. 31, 2020 | |
Accelerated Share Repurchases [Line Items] | ||||||||
Stock repurchased and retired | $ 22,059,000 | $ 35,243,000 | $ 20,881,000 | |||||
Operating lease right-of-use asset obtained in exchange for operating lease liability | $ 0 | $ 0 | $ 1,397,000 | |||||
2020 Share repurchase program | ||||||||
Accelerated Share Repurchases [Line Items] | ||||||||
Share repurchase authorized amount | $ 50,000,000 | |||||||
Stock repurchased and retired (shares) | 405,363 | 651,081 | ||||||
Stock repurchased and retired | $ 22,100,000 | $ 35,200,000 | ||||||
Remaining authorized repurchase amount | $ 9,700,000 | $ 9,700,000 | ||||||
2015 Share repurchase program | ||||||||
Accelerated Share Repurchases [Line Items] | ||||||||
Share repurchase authorized amount | $ 125,000,000 | |||||||
Stock repurchased and retired (shares) | 313,998 | |||||||
Stock repurchased and retired | $ 20,900,000 | |||||||
StockPurchaseInitiatedbutnotyetSettledShares | 18,000 | |||||||
Operating lease right-of-use asset obtained in exchange for operating lease liability | $ 1,200,000 | |||||||
2020 Share Repurchase Program Extension Total | Subsequent event | ||||||||
Accelerated Share Repurchases [Line Items] | ||||||||
Share repurchase authorized amount | $ 100,000,000 |
Financing Arrangements - Summar
Financing Arrangements - Summary of Carrying Amounts of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 268,053 | $ 203,279 | |
Current maturities of long-term debt | (551) | (499) | |
Long-term debt, net of current portion | 267,502 | 202,780 | |
Senior secured credit facility | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 265,000 | 200,000 | |
Promissory note due 2024 | |||
Debt Instrument [Line Items] | |||
Net carrying amount | $ 3,053 | $ 3,279 | $ 5,100 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 273 |
2022 | 559 |
2023 | 575 |
2023 | $ 266,646 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) | Jun. 30, 2017 | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Net carrying amount | $ 268,053,000 | $ 203,279,000 | ||||
Property and equipment, net | 31,271,000 | 29,093,000 | ||||
Aircraft Security Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Property and equipment, net | $ 4,100,000 | 4,400,000 | ||||
Senior secured credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | $ 600,000,000 | |||||
Option to increase revolving credit facility | $ 150,000,000 | |||||
Maximum principle amount | $ 750,000,000 | |||||
Percentage of other equity interests in domestic subsidiaries | 100.00% | |||||
Percentage of other equity interests in foreign subsidiaries | 65.00% | |||||
Maximum consolidated leverage ratio | 3.75 | |||||
Additional increase of consolidated leverage ratio | 4 | |||||
Minimum consolidated interest coverage ratio | 3.50 | |||||
Actual consolidated leverage ratio | 2.80 | |||||
Actual interest coverage ratio | 13.83 | |||||
Net carrying amount | $ 265,000,000 | $ 200,000,000 | ||||
Percentage of weighted average interest rate of borrowings | 2.40% | 2.50% | ||||
Outstanding letters of credit | $ 700,000 | $ 1,600,000 | ||||
Unused borrowing capacity under Credit Agreement | 334,300,000 | |||||
Senior secured credit facility | Minimum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on borrowings | 1.125% | |||||
Senior secured credit facility | Minimum | Base rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on borrowings | 0.125% | |||||
Senior secured credit facility | Maximum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on borrowings | 1.875% | |||||
Senior secured credit facility | Maximum | Base rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on borrowings | 0.875% | |||||
Promissory note due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Net carrying amount | 3,053,000 | 3,279,000 | $ 5,100,000 | |||
Repayment of principal at maturity date | $ 1,500,000 | |||||
Promissory note due 2024 | Aircraft Security Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on borrowings | 1.97% | |||||
Net carrying amount | $ 3,100,000 | $ 3,300,000 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |||||
Restructuring charges | $ 861 | $ 109 | $ 1,489 | $ 1,718 | |
Restructuring reserve | 854 | $ 854 | $ 3,424 | ||
Payment period | 19 months | ||||
Other | |||||
Restructuring Charges [Abstract] | |||||
Restructuring charges | 1,200 | ||||
Restructuring reserve | 827 | $ 827 | 893 | ||
Employee Costs | |||||
Restructuring Charges [Abstract] | |||||
Restructuring charges | 300 | ||||
Restructuring reserve | $ 10 | $ 10 | $ 2,447 | ||
Corporate, non-segment | Employee Costs | |||||
Restructuring Charges [Abstract] | |||||
Restructuring charges | $ 100 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Liability Rollforward (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 3,424 |
Additions | 204 |
Payments | (2,771) |
Adjustments | (3) |
Ending balance | 854 |
Employee Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 2,447 |
Additions | 4 |
Payments | (2,438) |
Adjustments | (3) |
Ending balance | 10 |
Office Space Reductions | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 84 |
Additions | 0 |
Payments | (67) |
Adjustments | 0 |
Ending balance | 17 |
Other | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 893 |
Additions | 200 |
Payments | (266) |
Adjustments | 0 |
Ending balance | $ 827 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activity - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 16, 2020 | Jan. 30, 2020 | Jun. 22, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Interest rate swap agreement for a notional amount | $ 100 | $ 50 | $ 50 | |
Percentage of fixed rate | 0.885% | 1.50% | 1.90% | |
Interest rate cash flow hedge gain (loss) to be reclassified | $ (1.7) | |||
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 (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accrued expenses and other current liabilities | ||
Fair Value interest rate swaps designated as cash flow hedging instruments | ||
Fair Value (Derivative Asset and Liability) | $ 2,046 | $ 2,100 |
Deferred compensation and other liabilities | ||
Fair Value interest rate swaps designated as cash flow hedging instruments | ||
Fair Value (Derivative Asset and Liability) | $ 1,086 | $ 3,297 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Asset/Liability | ||
Assets | $ 97,019 | $ 98,420 |
Liabilities | 4,944 | 7,167 |
Contingent consideration for business acquisition | ||
Fair Value, Asset/Liability | ||
Liabilities | 1,812 | 1,770 |
Interest rate swaps | ||
Fair Value, Asset/Liability | ||
Liabilities | 3,132 | 5,397 |
Convertible debt investment | ||
Fair Value, Asset/Liability | ||
Assets | 59,972 | 64,364 |
Level 1 | ||
Fair Value, Asset/Liability | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 1 | Contingent consideration for business acquisition | ||
Fair Value, Asset/Liability | ||
Liabilities | 0 | 0 |
Level 1 | Interest rate swaps | ||
Fair Value, Asset/Liability | ||
Liabilities | 0 | 0 |
Level 1 | Convertible debt investment | ||
Fair Value, Asset/Liability | ||
Assets | 0 | 0 |
Level 2 | ||
Fair Value, Asset/Liability | ||
Assets | 37,047 | 34,056 |
Liabilities | 3,132 | 5,397 |
Level 2 | Contingent consideration for business acquisition | ||
Fair Value, Asset/Liability | ||
Liabilities | 0 | 0 |
Level 2 | Interest rate swaps | ||
Fair Value, Asset/Liability | ||
Liabilities | 3,132 | 5,397 |
Level 2 | Convertible debt investment | ||
Fair Value, Asset/Liability | ||
Assets | 0 | 0 |
Level 3 | ||
Fair Value, Asset/Liability | ||
Assets | 59,972 | 64,364 |
Liabilities | 1,812 | 1,770 |
Level 3 | Contingent consideration for business acquisition | ||
Fair Value, Asset/Liability | ||
Liabilities | 1,812 | 1,770 |
Level 3 | Interest rate swaps | ||
Fair Value, Asset/Liability | ||
Liabilities | 0 | 0 |
Level 3 | Convertible debt investment | ||
Fair Value, Asset/Liability | ||
Assets | 59,972 | 64,364 |
Deferred compensation assets | ||
Fair Value, Asset/Liability | ||
Assets | 37,047 | 34,056 |
Deferred compensation assets | Level 1 | ||
Fair Value, Asset/Liability | ||
Assets | 0 | 0 |
Deferred compensation assets | Level 2 | ||
Fair Value, Asset/Liability | ||
Assets | 37,047 | 34,056 |
Deferred compensation assets | Level 3 | ||
Fair Value, Asset/Liability | ||
Assets | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in notes | $ 66,639 | $ 71,030 | |||
Equity securities without readily determinable fair value | $ 5,000 | ||||
Shorelight Holdings LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Instrument, Maturity Date | Jan. 17, 2024 | ||||
Contingent consideration for business acquisition | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Measurement input | 0.0239 | 0.0241 | |||
Convertible debt investment | Shorelight Holdings LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in notes | $ 13,000 | $ 27,900 | |||
Interest rate | 1.69% | ||||
Preferred Stock | Medically Home Group Inc | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in notes | $ 6,700 | ||||
Discount rate | Convertible debt investment | Shorelight Holdings LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Measurement input | 0.225 | 0.240 | |||
Price volatility | Convertible debt investment | Shorelight Holdings LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Measurement input | 0.450 | 0.450 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Convertible Debt Investment Reconciliation (Details) - Fair value, measurements, recurring $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Roll Forward] | |
Beginning balance | $ 98,420 |
Ending balance | 97,019 |
Outstanding common stock options | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Roll Forward] | |
Beginning balance | 64,364 |
Change in fair value of convertible debt investment | (4,392) |
Ending balance | $ 59,972 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Contingent Consideration for Business Acquisitions (Details) - Fair value, measurements, recurring $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Roll Forward] | |
Beginning balance | $ 7,167 |
Ending balance | 4,944 |
Contingent consideration for business acquisition | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Roll Forward] | |
Beginning balance | 1,770 |
Change in fair value of contingent consideration for business acquisition | 42 |
Ending balance | $ 1,812 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss )- Components of Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity [Abstract] | ||||
Foreign currency translation adjustment, before taxes | $ 82 | $ 104 | $ 482 | $ (675) |
Foreign currency translation adjustment, taxes | 0 | 0 | 0 | 0 |
Foreign currency translation adjustment, net of taxes | 82 | 104 | 482 | (675) |
Unrealized gain on investment, before taxes | 1,936 | (7,670) | (4,392) | (8,018) |
Unrealized gain on investment, tax (expense) benefit | (514) | 1,992 | 1,166 | 2,082 |
Unrealized gain on investment, net of taxes | 1,422 | (5,678) | (3,226) | (5,936) |
Change in fair value, before taxes | (305) | (2,640) | 884 | (4,912) |
Change in fair value, tax (expense) benefit | 78 | 686 | (259) | 1,276 |
Change in fair value, net of taxes | (227) | (1,954) | 625 | (3,636) |
Reclassification adjustments into earnings, before taxes | 601 | 337 | 1,381 | 333 |
Reclassification adjustments into earnings, tax (expense) benefit | (156) | (88) | (359) | (87) |
Reclassification adjustments into earnings, net of taxes | 445 | 249 | 1,022 | 246 |
Net unrealized gain (loss), before taxes | 296 | (2,303) | 2,265 | (4,579) |
Net unrealized gain (loss), tax (expense) benefit | (78) | 598 | (618) | 1,189 |
Net unrealized gain (loss), net of taxes | (1,705) | 1,647 | (3,390) | |
Other comprehensive income (loss), before taxes | 2,314 | (9,869) | (1,645) | (13,272) |
Other comprehensive income (loss), tax (expense) benefit | (592) | 2,590 | 548 | 3,271 |
Other comprehensive income (loss) | $ 1,722 | $ (7,279) | $ (1,097) | $ (10,001) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss )- Components of Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 541,003 | $ 524,609 | $ 551,942 | $ 585,465 |
Current period change | 1,722 | (7,279) | (1,097) | (10,001) |
Ending balance | 538,138 | 536,014 | 538,138 | 536,014 |
Accumulated Other Comprehensive Income | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 10,242 | 12,214 | 13,061 | 14,936 |
Ending balance | 11,964 | $ 4,935 | 11,964 | $ 4,935 |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (218) | |||
Current period change | 482 | |||
Ending balance | 264 | 264 | ||
Available-for-Sale Investment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 17,205 | |||
Current period change | (3,226) | |||
Ending balance | 13,979 | 13,979 | ||
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (3,926) | |||
Current period change | 1,647 | |||
Ending balance | $ (2,279) | $ (2,279) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 21.30% | 20.10% | 21.50% | 21.40% | |
Income tax expense (benefit) | $ (3,454) | $ (3,414) | $ (4,990) | $ 7,801 | |
Income from continuing operations before income tax expense | $ 16,251 | $ 16,986 | $ 23,192 | $ (36,502) | |
Statutory income tax rate, Inclusive of state income tax | 26.60% | 26.00% | 26.60% | 26.00% | |
Deferred tax benefit resulting from CARES Act | $ 1,500 | ||||
Deferred Tax Benefit Resulting From GILTI Tax | $ 1,000 | ||||
Income Taxes | Income TaxesFor the three months ended June 30, 2021, our effective tax rate was 21.3% as we recognized income tax expense from continuing operations of $3.5 million on income from continuing operations of $16.3 million. The effective tax rate of 21.3% was more favorable than the statutory rate, inclusive of state income taxes, of 26.6%, primarily due to a discrete tax benefit related to electing the Global Intangible Low- Taxed Income (“GILTI”) high-tax exclusion retroactively for the 2018 tax year. On July 20, 2020, the U.S. Treasury issued and enacted final regulations related to GILTI that allow certain U.S. taxpayers to elect to exclude foreign income that is subject to a high effective tax rate from their GILTI inclusions. The GILTI high-tax exclusion is an annual election and is retroactively available. This favorable item was partially offset by certain nondeductible expense items. For the three months ended June 30, 2020, our effective tax rate was 20.1% as we recognized an income tax expense from continuing operations of $3.4 million on income from continuing operations of $17.0 million. The effective tax rate of 20.1% was more favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to the current year-to-date pre-tax losses and the impact during the quarter of certain nondeductible expense items, including the nondeductible portion of the goodwill impairment charges, based on the attribution of those expenses to the quarter in accordance with the allocation of income tax expense on a current year-to-date basis. The effective tax rate also reflected the positive impact of certain federal tax credits. For the six months ended June 30, 2021, our effective tax rate was 21.5% as we recognized income tax expense from continuing operations of $5.0 million on income from continuing operations of $23.2 million. The effective tax rate of 21.5% was more favorable than the statutory rate, inclusive of state income taxes, of 26.6% primarily due to the discrete tax benefit related to electing the GILTI high-tax exclusion retroactively for the 2018 tax year and a discrete tax benefit for share-based compensation awards that vested during the first quarter. These favorable items were partially offset by certain nondeductible expense items. For the six months ended June 30, 2020, our effective tax rate was 21.4% as we recognized an income tax benefit from continuing operations of $7.8 million on a loss from continuing operations of $36.5 million. The effective tax rate of 21.4% was less favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to certain nondeductible expense items and the nondeductible portion of the goodwill impairment charges recorded during the first quarter of 2020. These unfavorable items were partially offset by a discrete tax benefit for share-based compensation awards that vested during the first quarter and the discrete tax benefit for the remeasurement of a portion of our income tax receivable as a result of the enactment of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in the first quarter of 2020. The CARES Act, which was signed into law on March 27, 2020, is an approximately $2 trillion emergency economic stimulus package in response to the COVID-19 outbreak, which among other items, includes income tax provisions relating to net operating loss carryback periods and technical corrections to tax depreciation methods for qualified improvement property. During 2020, as a result of the CARES Act, we recognized a $1.5 million tax benefit related to the remeasurement of a portion of our income tax receivable for the federal net operating loss incurred in 2018 and the expected federal net operating loss in 2020 that will be carried back to prior year income, both for a refund at the higher, prior year tax rate. As a result of electing the retroactive GILTI high-tax exclusion during 2021, we recognized a $1.0 million tax benefit of which $0.4 million related to carrying back our increased 2018 federal net operating loss to prior year income for a refund at the higher, prior year tax rate. | ||||
Deferred Tax Benefit Resulting from Gilti Tax - Carry Back 2018 Loss | $ 400 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair value, measurements, recurring | ||
Commitments And Contingencies [Line Items] | ||
Contingent consideration liability | $ 4,944 | $ 7,167 |
Contingent consideration for business acquisition | Fair value, measurements, recurring | ||
Commitments And Contingencies [Line Items] | ||
Contingent consideration liability | 1,812 | 1,770 |
Level 3 | Fair value, measurements, recurring | ||
Commitments And Contingencies [Line Items] | ||
Contingent consideration liability | 1,812 | 1,770 |
Level 3 | Contingent consideration for business acquisition | Fair value, measurements, recurring | ||
Commitments And Contingencies [Line Items] | ||
Contingent consideration liability | 1,812 | 1,770 |
Senior secured credit facility | ||
Commitments And Contingencies [Line Items] | ||
Guarantees in the form of letters of credit | $ 700 | $ 1,600 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments (in segments) | 3 |
Receivables from Major Customer Percentage | 10.40% |
Segment Information - Component
Segment Information - Components of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Components of Segment Information | ||||
Revenues | $ 230,126 | $ 217,857 | $ 433,339 | $ 440,476 |
Operating income | 16,129 | 15,954 | 24,369 | (29,897) |
Reimbursable expenses | 3,252 | 2,970 | 5,186 | 22,273 |
Total revenues and reimbursable expenses | 233,378 | 220,827 | 438,525 | 462,749 |
Litigation and other losses (gains) | 0 | 0 | (42) | 150 |
Depreciation and amortization | 5,446 | 6,193 | 10,874 | 12,307 |
Goodwill impairment charges | 0 | 0 | 0 | 59,816 |
Other expense (income), net | 122 | 1,032 | (1,177) | (6,605) |
Income (loss) from continuing operations before income taxes | 16,251 | 16,986 | 23,192 | (36,502) |
Healthcare | ||||
Components of Segment Information | ||||
Revenues | 101,357 | 85,356 | 181,079 | 180,934 |
Business Advisory | ||||
Components of Segment Information | ||||
Revenues | 70,908 | 70,470 | 143,775 | 135,375 |
Education | ||||
Components of Segment Information | ||||
Revenues | 57,861 | 62,031 | 108,485 | 124,167 |
Operating segments | ||||
Components of Segment Information | ||||
Revenues | 230,126 | 217,857 | 433,339 | 440,476 |
Operating income | 55,709 | 53,983 | 97,923 | 100,991 |
Reimbursable expenses | 3,252 | 2,970 | 5,186 | 22,273 |
Total revenues and reimbursable expenses | 233,378 | 220,827 | 438,525 | 462,749 |
Operating segments | Healthcare | ||||
Components of Segment Information | ||||
Revenues | 101,357 | 85,356 | 181,079 | 180,934 |
Operating income | $ 27,624 | $ 21,171 | $ 48,108 | $ 45,221 |
Segment operating income as a percentage of segment revenues | 27.30% | 24.80% | 26.60% | 25.00% |
Operating segments | Business Advisory | ||||
Components of Segment Information | ||||
Revenues | $ 70,908 | $ 70,470 | $ 143,775 | $ 135,375 |
Operating income | $ 14,315 | $ 16,684 | $ 27,392 | $ 26,526 |
Segment operating income as a percentage of segment revenues | 20.20% | 23.70% | 19.10% | 19.60% |
Operating segments | Education | ||||
Components of Segment Information | ||||
Revenues | $ 57,861 | $ 62,031 | $ 108,485 | $ 124,167 |
Operating income | $ 13,770 | $ 16,128 | $ 22,423 | $ 29,244 |
Segment operating income as a percentage of segment revenues | 23.80% | 26.00% | 20.70% | 23.60% |
Segment reconciling items | ||||
Components of Segment Information | ||||
Other operating expenses | $ 34,325 | $ 31,638 | $ 63,162 | $ 58,784 |
Litigation and other losses (gains) | 0 | 0 | 42 | (150) |
Depreciation and amortization | 5,255 | 6,391 | 10,350 | 12,438 |
Goodwill impairment charges | 0 | |||
Other expense (income), net | $ (122) | $ (1,032) | $ 1,177 | $ 6,605 |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 230,126 | $ 217,857 | $ 433,339 | $ 440,476 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 101,357 | 85,356 | 181,079 | 180,934 |
Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70,908 | 70,470 | 143,775 | 135,375 |
Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 57,861 | 62,031 | 108,485 | 124,167 |
Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 228,653 | 217,441 | 430,908 | 438,827 |
Revenue recognized over time | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 99,884 | 84,941 | 178,648 | 179,400 |
Revenue recognized over time | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70,908 | 70,470 | 143,775 | 135,375 |
Revenue recognized over time | Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 57,861 | 62,030 | 108,485 | 124,052 |
Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,473 | 416 | 2,431 | 1,649 |
Revenue recognized at a point in time | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,473 | 415 | 2,431 | 1,534 |
Revenue recognized at a point in time | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Revenue recognized at a point in time | Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 1 | 0 | 115 |
Revenue generated by billable consultants | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 182,152 | 175,705 | 346,272 | 352,964 |
Revenue generated by billable consultants | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 66,810 | 55,249 | 118,555 | 117,115 |
Revenue generated by billable consultants | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 66,051 | 67,269 | 135,898 | 129,226 |
Revenue generated by billable consultants | Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 49,291 | 53,187 | 91,819 | 106,623 |
Revenue generated by full-time equivalents | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,925 | 34,866 | 65,270 | 72,442 |
Revenue generated by full-time equivalents | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,498 | 22,821 | 40,727 | 48,749 |
Revenue generated by full-time equivalents | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,857 | 3,201 | 7,877 | 6,149 |
Revenue generated by full-time equivalents | Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,570 | 8,844 | 16,666 | 17,544 |
Helathcare Managed Services [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,049 | 7,286 | 21,797 | 15,070 |
Helathcare Managed Services [Domain] | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,049 | 7,286 | 21,797 | 15,070 |
Fixed-fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 104,331 | 89,574 | 197,766 | 183,927 |
Fixed-fee | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 55,095 | 50,803 | 103,390 | 106,588 |
Fixed-fee | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31,350 | 27,374 | 61,231 | 52,767 |
Fixed-fee | Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,886 | 11,397 | 33,145 | 24,572 |
Time and expense | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 87,066 | 98,861 | 164,858 | 194,894 |
Time and expense | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,039 | 14,029 | 29,414 | 28,762 |
Time and expense | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,988 | 40,264 | 73,621 | 77,853 |
Time and expense | Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,039 | 44,568 | 61,823 | 88,279 |
Performance-based | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,578 | 16,761 | 42,656 | 36,328 |
Performance-based | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,061 | 14,480 | 37,730 | 33,401 |
Performance-based | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,517 | 1,586 | 4,926 | 2,232 |
Performance-based | Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 695 | 0 | 695 |
Software support, maintenance and subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,151 | 12,661 | 28,059 | 25,327 |
Software support, maintenance and subscriptions | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,162 | 6,044 | 10,545 | 12,183 |
Software support, maintenance and subscriptions | Business Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,053 | 1,246 | 3,997 | 2,523 |
Software support, maintenance and subscriptions | Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 6,936 | $ 5,371 | $ 13,517 | $ 10,621 |