Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 19, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FCN | |
Entity Registrant Name | FTI CONSULTING INC | |
Entity Central Index Key | 887,936 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,207,093 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 116,556 | $ 189,961 |
Accounts receivable: | ||
Billed receivables | 455,707 | 390,996 |
Unbilled receivables | 368,360 | 312,569 |
Allowance for doubtful accounts and unbilled services | (216,612) | (180,687) |
Accounts receivable, net | 607,455 | 522,878 |
Current portion of notes receivable | 28,619 | 25,691 |
Prepaid expenses and other current assets | 54,806 | 55,649 |
Total current assets | 807,436 | 794,179 |
Property and equipment, net | 75,046 | 75,075 |
Goodwill | 1,198,732 | 1,204,803 |
Other intangible assets, net | 39,379 | 44,150 |
Notes receivable, net | 90,904 | 98,105 |
Other assets | 45,915 | 40,929 |
Total assets | 2,257,412 | 2,257,241 |
Current liabilities | ||
Accounts payable, accrued expenses and other | 93,988 | 94,873 |
Accrued compensation | 224,663 | 268,513 |
Billings in excess of services provided | 33,653 | 46,942 |
Total current liabilities | 352,304 | 410,328 |
Long-term debt, net | 371,662 | 396,284 |
Deferred income taxes | 134,081 | 124,471 |
Other liabilities | 123,564 | 134,187 |
Total liabilities | 981,611 | 1,065,270 |
Commitments and contingent liabilities (Note 11) | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value; shares authorized — 5,000; none outstanding | 0 | 0 |
Common stock, $0.01 par value; shares authorized — 75,000; shares issued and outstanding — 38,179 (2018) and 37,729 (2017) | 382 | 377 |
Additional paid-in capital | 280,201 | 266,035 |
Retained earnings | 1,128,670 | 1,045,774 |
Accumulated other comprehensive loss | (133,452) | (120,215) |
Total stockholders' equity | 1,275,801 | 1,191,971 |
Total liabilities and stockholders' equity | $ 2,257,412 | $ 2,257,241 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 38,179,000 | 37,729,000 |
Common stock, shares outstanding (in shares) | 38,179,000 | 37,729,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 512,098,000 | $ 444,715,000 | $ 1,009,872,000 | $ 891,059,000 |
Operating expenses | ||||
Direct cost of revenues | 330,318,000 | 304,071,000 | 651,435,000 | 613,143,000 |
Selling, general and administrative expenses | 117,897,000 | 108,119,000 | 230,025,000 | 215,809,000 |
Special charges | 0 | 30,074,000 | 0 | 30,074,000 |
Amortization of other intangible assets | 2,052,000 | 2,422,000 | 4,322,000 | 4,915,000 |
Operating expenses | 450,267,000 | 444,686,000 | 885,782,000 | 863,941,000 |
Operating income | 61,831,000 | 29,000 | 124,090,000 | 27,118,000 |
Other income (expense) | ||||
Interest income and other | 2,474,000 | 1,592,000 | 674,000 | 2,197,000 |
Interest expense | (6,583,000) | (6,250,000) | (12,827,000) | (12,051,000) |
Other income (expense) | (4,109,000) | (4,658,000) | (12,153,000) | (9,854,000) |
Income (loss) before income tax provision | 57,722,000 | (4,629,000) | 111,937,000 | 17,264,000 |
Income tax provision | 14,113,000 | 527,000 | 29,383,000 | 8,404,000 |
Net income (loss) | $ 43,609,000 | $ (5,156,000) | $ 82,554,000 | $ 8,860,000 |
Earnings (loss) per common share — basic (in dollars per share) | $ 1.18 | $ (0.13) | $ 2.24 | $ 0.22 |
Earnings (loss) per common share — diluted (in dollars per share) | $ 1.14 | $ (0.13) | $ 2.18 | $ 0.22 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments, net of tax expense of $0 | $ (23,683,000) | $ 10,174,000 | $ (13,237,000) | $ 17,544,000 |
Total other comprehensive income (loss), net of tax | (23,683,000) | 10,174,000 | (13,237,000) | 17,544,000 |
Comprehensive income | $ 19,926,000 | $ 5,018,000 | $ 69,317,000 | $ 26,404,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Foreign currency translation adjustments, tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2017 | 37,729,000 | 37,729,000 | |||
Beginning Balance at Dec. 31, 2017 | $ 1,191,971 | $ 377 | $ 266,035 | $ 1,045,774 | $ (120,215) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 82,554 | 82,554 | |||
Other comprehensive income: | |||||
Cumulative translation adjustment | (13,237) | (13,237) | |||
Issuance of common stock in connection with: | |||||
Exercise of options (in shares) | 513,000 | ||||
Exercise of options | 20,600 | $ 5 | 20,595 | ||
Restricted share grants, less net settled shares of XX (in shares) | 274,000 | ||||
Restricted share grants, less net settled shares of 39 | (1,831) | $ 3 | (1,834) | ||
Stock units issued under incentive compensation plan | 1,059 | 1,059 | |||
Purchase and retirement of common stock (in shares) | (337,000) | ||||
Purchase and retirement of common stock | (14,220) | $ (3) | (14,217) | ||
Cumulative effect due to adoption of new accounting standard | 342 | 342 | |||
Share-based compensation | $ 8,563 | 8,563 | |||
Ending Balance (in shares) at Jun. 30, 2018 | 38,179,000 | 38,179,000 | |||
Ending Balance at Jun. 30, 2018 | $ 1,275,801 | $ 382 | $ 280,201 | $ 1,128,670 | $ (133,452) |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) shares in Thousands | 6 Months Ended |
Jun. 30, 2018shares | |
Statement of Stockholders' Equity [Abstract] | |
Restricted share grants, net settled shares (in shares) | 39 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net income | $ 82,554 | $ 8,860 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 16,253 | 16,298 |
Amortization and impairment of other intangible assets | 4,322 | 4,915 |
Acquisition-related contingent consideration | 232 | 1,172 |
Provision for doubtful accounts | 8,710 | 5,971 |
Non-cash share-based compensation | 8,563 | 9,959 |
Non-cash interest expense and other | 993 | 992 |
Other | 798 | 242 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable, billed and unbilled | (99,299) | (78,100) |
Notes receivable | 4,214 | 2,241 |
Prepaid expenses and other assets | (4,151) | 947 |
Accounts payable, accrued expenses and other | 352 | (1,887) |
Income taxes | 13,143 | 3,087 |
Accrued compensation | (58,547) | (64,531) |
Billings in excess of services provided | (12,722) | 7,634 |
Net cash used in operating activities | (34,585) | (82,200) |
Investing activities | ||
Purchases of property and equipment | (16,220) | (13,127) |
Other | 689 | 72 |
Net cash used in investing activities | (15,531) | (13,055) |
Financing activities | ||
Borrowings (repayments) under revolving line of credit, net | (25,000) | 115,000 |
Deposits | 2,602 | 3,262 |
Purchase and retirement of common stock | (14,220) | (102,513) |
Net issuance of common stock under equity compensation plans | 18,740 | (500) |
Payments for acquisition-related contingent consideration | (3,029) | (79) |
Net cash provided by (used in) financing activities | (20,907) | 15,170 |
Effect of exchange rate changes on cash and cash equivalents | (2,382) | 2,438 |
Net decrease in cash and cash equivalents | (73,405) | (77,647) |
Cash and cash equivalents, beginning of period | 189,961 | 216,158 |
Cash and cash equivalents, end of period | 116,556 | 138,511 |
Supplemental cash flow disclosures | ||
Cash paid for interest | 13,020 | 14,903 |
Cash paid for income taxes, net of refunds | 16,137 | 5,336 |
Non-cash investing and financing activities: | ||
Issuance of stock units under incentive compensation plans | $ 1,059 | $ 1,547 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements of FTI Consulting, Inc., including its consolidated subsidiaries (collectively, the “Company,” “we,” “our” or “FTI Consulting”), presented herein, have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and under the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Some of the information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations. Certain prior period amounts have been reclassified to conform to the current period presentation. In management’s opinion, the interim financial statements reflect all adjustments that are necessary for a fair presentation of the results for the interim periods presented. All adjustments made were normal recurring accruals. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC. Revenue Recognition As of January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASC 606"), which impacts the timing of when certain types of revenue will be recognized. Revenues are recognized when we satisfy a performance obligation by transferring goods or services promised in a contract to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those goods and services. Performance obligations in our contracts represent distinct or separate service streams that we provide to our customers. We evaluate our revenue contracts with customers based on the five-step model under ASC 606: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenues when (or as) each performance obligation is satisfied. If, at the outset of an arrangement, we determine that a contract with enforceable rights and obligations does not exist, revenues are deferred until all criteria for an enforceable contract are met. We generate the majority of our revenues by providing consulting services to our clients. Most of our consulting service contracts are based on one of the following types of arrangements: • Time and expense arrangements require the client to pay us based on the number of hours worked at contractually agreed-upon rates. We recognize revenues for these arrangements based on hours incurred and contracted rates utilizing a right-to-invoice practical expedient, because we have a right to consideration for services completed to date. When a time and expense arrangement has a not-to-exceed or "cap" amount and we expect to perform work in excess of the cap, we recognize up to the cap amount specified by the client, based on the efforts or hours incurred as a percentage of total efforts or hours expected to be incurred (e.g. proportional performance method). Certain time and materials arrangements may be subject to third party approval, e.g. a court or other regulatory institution, with interim billing and payments made and received based upon preliminarily agreed upon rates. We record revenues for the portion of our services based on our assessment of the expected probability of amounts ultimately to be agreed upon by the court or regulator. These assessments are made on a case-by-case basis depending on the nature of the engagement, client economics, historical experience and other appropriate factors. • Fixed fee arrangements require the client to pay a pre-established fee in exchange for a predetermined set of professional services. We recognize revenues for these arrangements based on the proportional performance related to individual performance obligations within each arrangement, however, these arrangements generally have one performance obligation. • Performance based or contingent arrangements represent forms of variable consideration. In these arrangements, our fees are based on the attainment of contractually defined objectives with our client, such as completing a business transaction or assisting the client in achieving a specific business objective. When our performance obligation(s) are satisfied over time, we determine the transaction price based on the expected probability of achieving the agreed-upon outcome and recognize revenues earned to date by applying the proportional performance method. These arrangements include conditional payments, commonly referred to as success fees, which were previously recognized when the cash was collected. In addition, we generate certain revenues from our Technology segment that are based on units of data stored or processed. Unit based revenues are recognized as services are provided, based on either the amount of data stored or processed, the number of concurrent users accessing the information, or the number of pages or images processed for a client, and agreed-upon per unit rates. We also generate revenues from our on-premise software licenses. Software license revenues are generally recognized at a point in time when the customer acceptance occurs, in accordance with the provision of the arrangements. Certain of our time and expense and fixed fee billing arrangements may include client incentives in the form of volume-based discounts, where if certain fee levels are reached, the client can receive future services at a discounted hourly rate. Contracts with customers that have a prospective discounted pricing option based on predetermined volume thresholds are evaluated to determine whether they include a material right, which is an option that provides a customer the right to acquire free or discounted goods or services in the future. If the option provides a material right to the customer, we allocate a portion of the transaction price to the material right and defer revenues during the pre-discount period, compared to our previous practice of recognizing the reduction in revenues when customers became eligible to receive the volume discount. Reimbursable expenses, including those relating to travel, out-of-pocket expenses, outside consultants and other outside service costs, are generally included in revenues, and an equivalent amount of reimbursable expenses is included in costs of services in the period in which the expense is incurred. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | Earnings (Loss) Per Common Share Basic earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common share adjusts basic earnings (loss) per common share for the effects of potentially dilutive common shares. Potentially dilutive common shares include the dilutive effects of shares issuable under our equity compensation plans, including stock options and restricted shares, each using the treasury stock method. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator — basic and diluted Net income (loss) $ 43,609 $ (5,156 ) $ 82,554 $ 8,860 Denominator Weighted average number of common shares outstanding — basic 37,001 39,555 36,851 40,039 Effect of dilutive stock options 558 — 430 129 Effect of dilutive restricted shares 712 — 661 334 Weighted average number of common shares outstanding — diluted (1) 38,271 39,555 37,942 40,502 Earnings (loss) per common share — basic $ 1.18 $ (0.13 ) $ 2.24 $ 0.22 Earnings (loss) per common share — diluted $ 1.14 $ (0.13 ) $ 2.18 $ 0.22 Antidilutive stock options and restricted shares 44 1,947 330 1,469 (1) For the three months ended June 30, 2017, we excluded 377,389 potentially dilutive securities from the computation as their effect would be anti-dilutive due to a net loss applicable to common stockholders. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers . On January 1, 2018, we adopted ASC 606 using the modified retrospective method and recorded an immaterial cumulative effect adjustment to the beginning balance of retained earnings for revenue contracts that existed at the adoption date. Under the modified retrospective method, prior year information has not been adjusted and continues to be reported under the accounting standards in effect for periods prior to the adoption date. We have not retroactively restated the existing contracts for modifications that occurred before January 1, 2018. See Note 1, "Basis of Presentation and Significant Accounting Policies" in Part I, Item 1, of this Quarterly Report on Form 10-Q for a description of the significant accounting policies and methods used in preparation of the Condensed Consolidated Financial Statements. See Note 4, “Revenues” in Part I, Item 1, of this Quarterly Report on Form 10-Q for the disclosures required under ASC 606. The adoption of ASC 606 had an immaterial impact on our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Balance Sheets and had no impact on our Condensed Consolidated Statements of Cash Flows. In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update), Income Taxes ( Topic 740 ). ASU 2018-05 provides guidance regarding the recording of tax impacts where uncertainty exists, in the period of adoption of the 2017 U.S. Tax Cuts and Jobs Act (the “2017 Tax Act”), which allowed companies to reflect provisional amounts for those specific income tax effects of the 2017 Tax Act for which the accounting under ASC Topic 740 is incomplete but for which a reasonable estimate could be determined. During the six months ended June 30, 2018, the Company has not recognized any material changes to the provisional amounts recorded in our 2017 Annual Report on Form 10-K in connection with the 2017 Tax Act. The accounting for the tax effects of the 2017 Tax Act will be finalized in the second half of 2018 as we complete our federal and state tax returns and incorporate any additional guidance that may be issued by the U.S. tax authorities. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases ("ASC 842") , which supersedes existing lease guidance. Under ASC 842, we will be required to record right-of-use assets and corresponding lease liabilities on the balance sheet. Previously, there was no requirement to recognize an asset or liability on the balance sheet for an operating lease. ASC 842 also requires disclosure of key information about leasing arrangements. This guidance is effective beginning January 1, 2019 using a modified retrospective approach for each prior reporting period presented. In January 2018, the FASB issued an exposure draft of the proposed ASU, Leases (Topic 842): Targeted Improvements. The proposed ASU provides an alternative transition method of adoption, permitting the recognition of a cumulative-effect adjustment to retained earnings on the date of adoption. The Company's implementation plan is under way and includes an information system and business process change to accumulate the appropriate data in order to calculate and record the recognition of right-of-use assets, lease liabilities and the related expense recognition. We are creating an inventory of our existing portfolio of leases and continue to review other contracts to determine if they contain leases as defined by ASC 842. Our existing portfolio of leases is primarily composed of operating leases related to our offices. While this assessment continues, we have not yet determined the effect of ASC 842 on our Condensed Consolidated Balance Sheets. We do not expect that the adoption of ASC 842 will have a material impact on our results of operations or cash flow presentation. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenues recognized during the current period may include revenues recognized from performance obligations satisfied or partially satisfied in previous periods. This primarily occurs when the estimated transaction price has changed based on a re-assessment of the expected probability of achieving the agreed-upon outcome for our performance based and contingent arrangements, resulting in a catch-up adjustment for service provided in previous periods. The aggregate amount of revenues recognized related to the catch-up adjustment due to a change in the transaction price during the three and six months ended June 30, 2018 was $4.5 million and $6.5 million , respectively. Unfulfilled performance obligations represent the remaining contract transaction prices allocated to the performance obligations that are unsatisfied, or partially unsatisfied, and therefore revenues have not yet been recorded. Unfulfilled performance obligations primarily consist of the remaining fees not yet recognized under our proportional performance method for both our fixed fee arrangements, and the portion of performance-based and contingent arrangements that we have deemed probable. As of June 30, 2018 , the aggregate amount of the transaction price allocated to unfulfilled performance obligations was $3.8 million , and we expect to recognize the majority of the related revenues over the next 18 months. We elected to utilize the optional exemption to exclude from this disclosure fixed fee and performance-based and contingent arrangements with an original expected duration of one year or less, and to exclude our time and expense arrangements for which revenues are recognized using the right to invoice practical expedient. Contract assets are defined as assets for which we have recorded revenue because we determined that it is probable that we will earn a performance based or contingent fee, but we are not yet entitled to receive our fees because certain events, such as completion of the measurement period or client approval, must occur. The contract asset balance was immaterial as of June 30, 2018 and December 31, 2017. Contract liabilities are defined as liabilities incurred when we have received consideration from a client but have not yet performed the agreed upon services. This may occur when we receive advance billings before delivery and acceptance of software licenses in our Technology segment and when clients pay us upfront fees before we begin work for them. The contract liability balance was immaterial as of June 30, 2018 and December 31, 2017 . |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Doubtful Accounts | 6 Months Ended |
Jun. 30, 2018 | |
Allowance For Doubtful Accounts And Unbilled Services [Abstract] | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Timing of revenue recognition often differs from the timing of billing to our customers. Generally, we transfer goods or services to a customer before the customer pays consideration or payment is due. If we have an unconditional right to invoice and receive payment for goods or services already provided, we record billed and unbilled receivables on our Condensed Consolidated Balance Sheets. Payment terms and conditions vary depending on the jurisdiction, market and type of service and whether regulatory or other third-party approvals are required. In addition, contracts may be negotiated per the client’s request, or at times we are asked to execute contracts in a form provided by customers that might include different terms. Our standard contract terms generally include a requirement of payment within 30 days where no contingencies exist. We record adjustments to the allowance for doubtful accounts and unbilled services as a reduction in revenues when there are changes in estimates of fee reductions, such as those fee reductions imposed by bankruptcy courts and other regulatory institutions for both billed and unbilled receivables. The allowance for doubtful accounts and unbilled services is also adjusted after the related work has been billed to the client and we discover that collectability is not reasonably assured. These adjustments are recorded to “Selling, general and administrative expenses” on the Condensed Consolidated Statements of Comprehensive Income. Our bad debt expense totaled $3.0 million and $8.7 million for the three and six months ended June 30, 2018 , respectively, and $2.4 million and $6.0 million for the three and six months ended June 30, 2017 , respectively. |
Special Charges
Special Charges | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Special Charges | Special Charges There was no special charge recorded during the three and six months ended June 30, 2018. During the three and six months ended June 30, 2017, we recorded a special charge of $30.1 million . The charge includes the impact of certain targeted reductions in areas of each segment where we needed to realign our workforce with then-current business demand and in certain corporate departments where we were able to streamline support activities. In addition, certain strategic actions were taken to reduce our future real estate costs. The special charge included the following components: • $16.1 million of employee severance and other employee-related costs. • $12.4 million of exit costs associated with the curtailment of our lease on our executive office in Washington, D.C. • $1.6 million of other expenses, including costs related to disposing or closing several small international offices. The following table details the special charges by segment for the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended June 30, Special Charges by Segment 2018 2017 2018 2017 Corporate Finance & Restructuring $ — $ 3,049 $ — $ 3,049 Forensic and Litigation Consulting — 10,445 — 10,445 Economic Consulting — 5,910 — 5,910 Technology — 3,827 — 3,827 Strategic Communications — 3,599 — 3,599 — 26,830 — 26,830 Unallocated Corporate — 3,244 — 3,244 Total $ — $ 30,074 $ — $ 30,074 |
Research and Development Costs
Research and Development Costs | 6 Months Ended |
Jun. 30, 2018 | |
Research and Development [Abstract] | |
Research and Development Costs | Research and Development Costs Research and development costs related to software development in our Technology segment totaled $2.9 million and $5.8 million for the three and six months ended June 30, 2018 , respectively, and $4.3 million and $8.5 million for the three and six months ended June 30, 2017 , respectively. Research and development costs are included in “Selling, general and administrative expenses” on the Condensed Consolidated Statements of Comprehensive Income. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The following table presents the carrying amounts and estimated fair values of our financial instruments by hierarchy level as of June 30, 2018 and December 31, 2017 . June 30, 2018 Hierarchy Level Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 2,960 $ — $ — $ 2,960 Long-term debt 375,000 — 381,750 — Total $ 377,960 $ — $ 381,750 $ 2,960 December 31, 2017 Hierarchy Level Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 3,750 $ — $ — $ 3,750 Long-term debt 400,000 — 409,000 — Total $ 403,750 $ — $ 409,000 $ 3,750 (1) The short-term portion is included in “Accounts payable, accrued expenses and other,” and the long-term portion is included in “Other liabilities” on the Condensed Consolidated Balance Sheets. The fair values of financial instruments not included in this table are estimated to be equal to their carrying values as of June 30, 2018 and December 31, 2017 . We determine the fair value of our long-term debt primarily based on quoted market prices for our 6% senior notes due 2022 (the “2022 Notes”) as of June 30, 2018 and December 31, 2017 . The fair value of our borrowings on our senior secured bank revolving credit facility (“Credit Facility”) approximates the carrying amount. The fair value of our long-term debt is classified within Level 2 of the fair value hierarchy because it is traded in less active markets. We estimate the fair value of acquisition-related contingent consideration using a probability-weighted discounted cash flow model. This fair value estimate represents a Level 3 measurement as it is based on significant inputs not observed in the market and reflect our own assumptions. The significant unobservable inputs used in the fair value measurements of our acquisition-related contingent consideration are our measures of the future profitability and related cash flows and discount rates. The fair value of the contingent consideration is reassessed at each reporting period by the Company based on additional information as it becomes available. Any change in the fair value of an acquisition’s contingent consideration liability results in a remeasurement gain or loss that is recorded in “Selling, general and administrative expenses” on the Condensed Consolidated Statements of Comprehensive Income. During the six months ended June 30, 2018 there was no change in the estimated fair value of future expected contingent consideration payments. During the six months ended June 30, 2017 , we recorded a remeasurement loss of $0.7 million . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The table below summarizes the changes in the carrying amount of goodwill by reportable segment: Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Total Balance at December 31, 2017 Goodwill $ 454,816 $ 233,719 $ 268,995 $ 117,740 $ 323,672 $ 1,398,942 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2017 454,816 233,719 268,995 117,740 129,533 1,204,803 Foreign currency translation adjustment and other (2,454 ) (1,168 ) (213 ) (38 ) (2,198 ) (6,071 ) Balance at June 30, 2018 Goodwill 452,362 232,551 268,782 117,702 321,474 1,392,871 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at June 30, 2018 $ 452,362 $ 232,551 $ 268,782 $ 117,702 $ 127,335 $ 1,198,732 Other Intangible Assets Other intangible assets with finite lives, comprised primarily of customer relationships, are amortized over their estimated useful lives. We recorded amortization expense of $2.1 million and $4.3 million for the three and six months ended June 30, 2018 , respectively, and $2.4 million and $4.9 million for the three and six months ended June 30, 2017 , respectively. We estimate our future amortization expense for our intangible assets with finite lives to be as follows: Year As of June 30, 2018 (1) 2018 (remaining) $ 3,884 2019 7,437 2020 7,274 2021 6,731 2022 4,939 Thereafter 3,514 $ 33,779 (1) Actual amortization expense to be reported in future periods could differ from these estimates because of new intangible asset acquisitions, changes in useful lives or other relevant factors or changes. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The table below summarizes the components of the Company’s long-term debt. June 30, 2018 December 31, 2017 2022 Notes $ 300,000 $ 300,000 Credit Facility 75,000 100,000 Total debt 375,000 400,000 Less: deferred debt issue costs (3,338 ) (3,716 ) Long-term debt, net (1) $ 371,662 $ 396,284 (1) There were no current portions of long-term debt as of June 30, 2018 and December 31, 2017 . The Company has classified the borrowings under the Company’s Credit Facility as long-term debt in the accompanying Condensed Consolidated Balance Sheets, as amounts due under the credit agreement entered into on June 26, 2015, which expires on June 26, 2020 , are not contractually required or expected to be liquidated for more than one year from the applicable balance sheet date. Additionally, $1.0 million of the borrowing limit under the Credit Facility was utilized for letters of credit as of June 30, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to legal actions arising in the ordinary course of business. In management’s opinion, we believe we have adequate legal defenses and/or insurance coverage with respect to the eventuality of such actions. We do not believe any settlement or judgment relating to any pending legal action would materially affect our financial position or results of operations. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the six months ended June 30, 2018 , we granted 216,761 restricted stock awards, 32,374 restricted stock units and 91,370 performance-based restricted stock units. These awards are recorded as equity on the Condensed Consolidated Balance Sheets. During the six months ended June 30, 2018 , stock options exercisable for up to 190,927 shares and 7,907 shares of restricted stock awards were forfeited prior to the completion of the applicable vesting requirements. Total share-based compensation expense, net of forfeitures, for the three and six months ended June 30, 2018 and 2017 is detailed in the following table: Three Months Ended June 30, Six Months Ended June 30, Income Statement Classification 2018 2017 2018 2017 Direct cost of revenues $ 2,427 $ 1,183 $ 6,206 $ 7,021 Selling, general and administrative expenses 3,158 1,209 5,347 2,052 Special charges — 96 — 96 Total share-based compensation expense $ 5,585 $ 2,488 $ 11,553 $ 9,169 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On June 2, 2016, our Board of Directors authorized a stock repurchase program of up to $100.0 million (the “Repurchase Program”). On each of May 18, 2017 and December 1, 2017, our Board of Directors authorized an additional $100.0 million increasing the Repurchase Program to an aggregate authorization of $300.0 million . No time limit has been established for the completion of the Repurchase Program, and the Repurchase Program may be suspended, discontinued or replaced by the Board of Directors at any time without prior notice. As of June 30, 2018 , we have $99.1 million available under the Repurchase Program to repurchase additional shares. The following table details our stock repurchases under the Repurchase Program: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Shares of common stock repurchased and retired — 1,887 337 2,767 Average price paid per share $ — $ 34.74 $ 42.17 $ 37.03 Total cost $ — $ 65,556 $ 14,213 $ 102,457 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We manage our business in five reportable segments: Corporate Finance & Restructuring ("Corporate Finance"), Forensic and Litigation Consulting ("FLC"), Economic Consulting, Technology and Strategic Communications. Our Corporate Finance segment focuses on the strategic, operational, financial and capital needs of our clients around the world and delivers a wide range of service offerings related to restructuring, business transformation and transaction support. Our restructuring practice includes corporate restructuring, including bankruptcy and interim management services. Our business transformation and transaction practices include financings, mergers and acquisitions (“M&A”), M&A integration, valuations and tax advice, as well as financial, operational and performance improvement services. Our FLC segment provides law firms, companies, government clients and other interested parties with multidisciplinary, independent dispute advisory, investigations, data analytics, forensic accounting, business intelligence and risk mitigation services, as well as interim management and performance improvement services for our health solutions practice clients. Our Economic Consulting segment provides law firms, companies, government entities and other interested parties with analysis of complex economic issues for use in legal, regulatory and international arbitration proceedings, strategic decision making and public policy debates in the U.S. and around the world. Our Technology segment offers a comprehensive portfolio of information governance and e-discovery software, services and consulting support to companies, law firms, courts and government agencies worldwide. Our services allow our clients to control the risk and expense of e-discovery events, as well as manage their data in the context of compliance and risk. Our Strategic Communications segment designs and executes communications strategies for management teams and boards of directors to help them seize opportunities, manage financial, regulatory and reputational challenges, navigate market disruptions, articulate their brand, stake a competitive position, and preserve and grow their operations. We evaluate the performance of our operating segments based on Adjusted Segment EBITDA. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We define Total Adjusted Segment EBITDA, a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We use Adjusted Segment EBITDA to internally evaluate the financial performance of our segments because we believe it reflects current core operating performance and provides an indicator of the segment’s ability to generate cash. The table below presents revenues and Adjusted Segment EBITDA for our reportable segments: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenues Corporate Finance & Restructuring $ 141,355 $ 117,487 $ 284,277 $ 223,388 Forensic and Litigation Consulting 133,527 111,410 261,566 222,816 Economic Consulting 133,308 124,004 266,417 263,225 Technology 46,429 45,566 87,343 91,653 Strategic Communications 57,479 46,248 110,269 89,977 Total revenues $ 512,098 $ 444,715 $ 1,009,872 $ 891,059 Adjusted Segment EBITDA Corporate Finance & Restructuring $ 35,777 $ 20,048 $ 70,581 $ 30,373 Forensic and Litigation Consulting 27,615 13,032 53,372 26,553 Economic Consulting 15,472 15,509 34,608 35,619 Technology 7,508 5,421 13,240 13,225 Strategic Communications 10,967 4,876 20,819 9,133 Total Adjusted Segment EBITDA $ 97,339 $ 58,886 $ 192,620 $ 114,903 The table below reconciles net income (loss) to Total Adjusted Segment EBITDA: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income (loss) $ 43,609 $ (5,156 ) $ 82,554 $ 8,860 Add back: Income tax provision 14,113 527 29,383 8,404 Interest income and other (2,474 ) (1,592 ) (674 ) (2,197 ) Interest expense 6,583 6,250 12,827 12,051 Unallocated corporate expenses 25,882 22,286 49,770 41,339 Segment depreciation expense 7,574 6,783 14,438 13,999 Amortization of intangible assets 2,052 2,422 4,322 4,915 Segment special charges — 26,830 — 26,830 Remeasurement of acquisition-related contingent consideration — 536 — 702 Total Adjusted Segment EBITDA $ 97,339 $ 58,886 $ 192,620 $ 114,903 |
Supplemental Condensed Consolid
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information Substantially all domestic subsidiaries are guarantors of borrowings under our Credit Facility and 2022 Notes. The guarantees are full and unconditional and joint and several. Our guarantors are wholly owned, direct or indirect, subsidiaries. The following financial information presents condensed consolidating balance sheets, statements of comprehensive income and statements of cash flows for FTI Consulting, all the guarantor subsidiaries, all the non-guarantor subsidiaries and the eliminations necessary to arrive at the consolidated information for FTI Consulting and its subsidiaries. For purposes of this presentation, we have accounted for our investments in our subsidiaries using the equity method of accounting. The principal eliminating entries eliminate investment in subsidiary and intercompany balances and transactions. Condensed Consolidating Balance Sheet as of June 30, 2018 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 14,117 $ 151 $ 102,288 $ — $ 116,556 Accounts receivable, net 194,004 194,976 218,475 — 607,455 Intercompany receivables — 1,123,906 — (1,123,906 ) — Other current assets 33,030 24,765 25,630 — 83,425 Total current assets 241,151 1,343,798 346,393 (1,123,906 ) 807,436 Property and equipment, net 37,147 13,397 24,502 — 75,046 Goodwill 570,876 416,053 211,803 — 1,198,732 Other intangible assets, net 16,678 10,525 25,564 (13,388 ) 39,379 Investments in subsidiaries 2,199,577 491,143 — (2,690,720 ) — Other assets 34,322 64,889 37,608 — 136,819 Total assets $ 3,099,751 $ 2,339,805 $ 645,870 $ (3,828,014 ) $ 2,257,412 Liabilities Intercompany payables $ 1,117,874 $ — $ 6,032 $ (1,123,906 ) $ — Other current liabilities 123,468 124,473 104,363 — 352,304 Total current liabilities 1,241,342 124,473 110,395 (1,123,906 ) 352,304 Long-term debt, net 371,662 — — — 371,662 Other liabilities 210,946 11,407 35,292 — 257,645 Total liabilities 1,823,950 135,880 145,687 (1,123,906 ) 981,611 Stockholders' equity 1,275,801 2,203,925 500,183 (2,704,108 ) 1,275,801 Total liabilities and stockholders' equity $ 3,099,751 $ 2,339,805 $ 645,870 $ (3,828,014 ) $ 2,257,412 Condensed Consolidating Balance Sheet as of December 31, 2017 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 10,186 $ 159 $ 179,616 $ — $ 189,961 Accounts receivable, net 155,124 156,859 210,895 — 522,878 Intercompany receivables — 1,093,211 32,695 (1,125,906 ) — Other current assets 31,933 21,840 27,567 — 81,340 Total current assets 197,243 1,272,069 450,773 (1,125,906 ) 794,179 Property and equipment, net 39,137 13,572 22,366 — 75,075 Goodwill 570,876 416,053 217,874 — 1,204,803 Other intangible assets, net 18,426 11,251 29,441 (14,968 ) 44,150 Investments in subsidiaries 2,175,362 566,911 — (2,742,273 ) — Other assets 34,454 60,566 44,014 — 139,034 Total assets $ 3,035,498 $ 2,340,422 $ 764,468 $ (3,883,147 ) $ 2,257,241 Liabilities Intercompany payables $ 1,125,906 $ — $ — $ (1,125,906 ) $ — Other current liabilities 127,295 144,474 138,559 — 410,328 Total current liabilities 1,253,201 144,474 138,559 (1,125,906 ) 410,328 Long-term debt, net 396,284 — — — 396,284 Other liabilities 194,042 14,753 49,863 — 258,658 Total liabilities 1,843,527 159,227 188,422 (1,125,906 ) 1,065,270 Stockholders' equity 1,191,971 2,181,195 576,046 (2,757,241 ) 1,191,971 Total liabilities and stockholders' equity $ 3,035,498 $ 2,340,422 $ 764,468 $ (3,883,147 ) $ 2,257,241 Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended June 30, 2018 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 187,569 $ 159,288 $ 166,503 $ (1,262 ) $ 512,098 Operating expenses Direct cost of revenues 115,751 110,665 105,334 (1,432 ) 330,318 Selling, general and administrative expenses 53,472 30,494 33,797 134 117,897 Amortization of other intangible assets 874 313 1,637 (772 ) 2,052 170,097 141,472 140,768 (2,070 ) 450,267 Operating income 17,472 17,816 25,735 808 61,831 Other income (expense) (32,179 ) (572 ) 5,642 23,000 (4,109 ) Income (loss) before income tax provision (14,707 ) 17,244 31,377 23,808 57,722 Income tax provision 2,547 4,977 6,589 — 14,113 Equity in net earnings of subsidiaries 60,863 32,779 — (93,642 ) — Net income $ 43,609 $ 45,046 $ 24,788 $ (69,834 ) $ 43,609 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (23,683 ) $ — $ (23,683 ) Other comprehensive loss, net of tax — — (23,683 ) — (23,683 ) Comprehensive income $ 43,609 $ 45,046 $ 1,105 $ (69,834 ) $ 19,926 Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended June 30, 2017 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 163,649 $ 151,716 $ 131,480 $ (2,130 ) $ 444,715 Operating expenses Direct cost of revenues 108,445 108,388 89,307 (2,069 ) 304,071 Selling, general and administrative expenses 45,908 31,730 30,542 (61 ) 108,119 Special charges 13,592 7,306 9,176 — 30,074 Amortization of other intangible assets 883 540 1,741 (742 ) 2,422 168,828 147,964 130,766 (2,872 ) 444,686 Operating income (loss) (5,179 ) 3,752 714 742 29 Other income (expense) (5,361 ) (71 ) 774 — (4,658 ) Income (loss) before income tax provision (10,540 ) 3,681 1,488 742 (4,629 ) Income tax provision (benefit) (7,034 ) 4,219 3,342 — 527 Equity in net earnings of subsidiaries (1,650 ) (3,862 ) — 5,512 — Net loss $ (5,156 ) $ (4,400 ) $ (1,854 ) $ 6,254 $ (5,156 ) Other comprehensive income, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ 10,174 $ — $ 10,174 Other comprehensive income, net of tax — — 10,174 — 10,174 Comprehensive income (loss) $ (5,156 ) $ (4,400 ) $ 8,320 $ 6,254 $ 5,018 Condensed Consolidating Statement of Comprehensive Income for the Six Months Ended June 30, 2018 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 372,890 $ 316,417 $ 324,275 $ (3,710 ) $ 1,009,872 Operating expenses Direct cost of revenues 231,211 220,063 203,931 (3,770 ) 651,435 Selling, general and administrative expenses 104,153 59,474 66,374 24 230,025 Amortization of other intangible assets 1,748 727 3,427 (1,580 ) 4,322 337,112 280,264 273,732 (5,326 ) 885,782 Operating income 35,778 36,153 50,543 1,616 124,090 Other income (expense) (15,249 ) (881 ) 3,977 — (12,153 ) Income before income tax provision 20,529 35,272 54,520 1,616 111,937 Income tax provision 6,917 11,017 11,449 — 29,383 Equity in net earnings of subsidiaries 68,942 67,567 — (136,509 ) — Net income $ 82,554 $ 91,822 $ 43,071 $ (134,893 ) $ 82,554 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (13,237 ) $ — $ (13,237 ) Other comprehensive loss, net of tax — — (13,237 ) — (13,237 ) Comprehensive income $ 82,554 $ 91,822 $ 29,834 $ (134,893 ) $ 69,317 Condensed Consolidating Statement of Comprehensive Income for the Six Months Ended June 30, 2017 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 315,456 $ 322,742 $ 257,583 $ (4,722 ) $ 891,059 Operating expenses Direct cost of revenues 219,703 226,174 171,868 (4,602 ) 613,143 Selling, general and administrative expenses 91,706 63,109 61,114 (120 ) 215,809 Special charges 13,592 7,306 9,176 — 30,074 Amortization of other intangible assets 1,785 1,080 3,511 (1,461 ) 4,915 326,786 297,669 245,669 (6,183 ) 863,941 Operating income (loss) (11,330 ) 25,073 11,914 1,461 27,118 Other income (expense) (10,613 ) (498 ) 1,257 — (9,854 ) Income (loss) before income tax provision (21,943 ) 24,575 13,171 1,461 17,264 Income tax provision (benefit) (12,617 ) 15,137 5,884 — 8,404 Equity in net earnings of subsidiaries 18,186 4,711 — (22,897 ) — Net income $ 8,860 $ 14,149 $ 7,287 $ (21,436 ) $ 8,860 Other comprehensive income, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ 17,544 $ — $ 17,544 Other comprehensive income, net of tax — — 17,544 — 17,544 Comprehensive income $ 8,860 $ 14,149 $ 24,831 $ (21,436 ) $ 26,404 Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2018 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Operating activities Net cash provided by (used in) operating activities $ 37,040 $ 65,711 $ (137,336 ) $ (34,585 ) Investing activities Purchases of property and equipment (4,376 ) (5,181 ) (6,663 ) (16,220 ) Other 39 — 650 689 Net cash used in investing activities (4,337 ) (5,181 ) (6,013 ) (15,531 ) Financing activities Repayments under revolving line of credit, net (25,000 ) — — (25,000 ) Deposits — — 2,602 2,602 Purchase and retirement of common stock (14,220 ) — — (14,220 ) Net issuance of common stock under equity compensation plans 18,740 — — 18,740 Payments for acquisition-related contingent consideration (500 ) (2,529 ) — (3,029 ) Intercompany transfers (7,792 ) (58,009 ) 65,801 — Net cash provided by (used in) financing activities (28,772 ) (60,538 ) 68,403 (20,907 ) Effects of exchange rate changes on cash and cash equivalents — — (2,382 ) (2,382 ) Net increase (decrease) in cash and cash equivalents 3,931 (8 ) (77,328 ) (73,405 ) Cash and cash equivalents, beginning of year 10,186 159 179,616 189,961 Cash and cash equivalents, end of year $ 14,117 $ 151 $ 102,288 $ 116,556 Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2017 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Operating activities Net cash provided by (used in) operating activities $ (56,917 ) $ 1,386 $ (26,669 ) $ (82,200 ) Investing activities Purchases of property and equipment (5,440 ) (4,655 ) (3,032 ) (13,127 ) Other 72 — — 72 Net cash used in investing activities (5,368 ) (4,655 ) (3,032 ) (13,055 ) Financing activities Borrowings under revolving line of credit, net 115,000 — — 115,000 Deposits — — 3,262 3,262 Purchase and retirement of common stock (102,513 ) — — (102,513 ) Net issuance of common stock under equity compensation plans (500 ) — — (500 ) Payments for acquisition-related contingent consideration (79 ) — — (79 ) Intercompany transfers 18,070 3,271 (21,341 ) — Net cash provided by (used in) financing activities 29,978 3,271 (18,079 ) 15,170 Effects of exchange rate changes on cash and cash equivalents — — 2,438 2,438 Net increase (decrease) in cash and cash equivalents (32,307 ) 2 (45,342 ) (77,647 ) Cash and cash equivalents, beginning of year 47,420 156 168,582 216,158 Cash and cash equivalents, end of year $ 15,113 $ 158 $ 123,240 $ 138,511 |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Revenue Recognition | Revenue Recognition As of January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASC 606"), which impacts the timing of when certain types of revenue will be recognized. Revenues are recognized when we satisfy a performance obligation by transferring goods or services promised in a contract to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those goods and services. Performance obligations in our contracts represent distinct or separate service streams that we provide to our customers. We evaluate our revenue contracts with customers based on the five-step model under ASC 606: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenues when (or as) each performance obligation is satisfied. If, at the outset of an arrangement, we determine that a contract with enforceable rights and obligations does not exist, revenues are deferred until all criteria for an enforceable contract are met. We generate the majority of our revenues by providing consulting services to our clients. Most of our consulting service contracts are based on one of the following types of arrangements: • Time and expense arrangements require the client to pay us based on the number of hours worked at contractually agreed-upon rates. We recognize revenues for these arrangements based on hours incurred and contracted rates utilizing a right-to-invoice practical expedient, because we have a right to consideration for services completed to date. When a time and expense arrangement has a not-to-exceed or "cap" amount and we expect to perform work in excess of the cap, we recognize up to the cap amount specified by the client, based on the efforts or hours incurred as a percentage of total efforts or hours expected to be incurred (e.g. proportional performance method). Certain time and materials arrangements may be subject to third party approval, e.g. a court or other regulatory institution, with interim billing and payments made and received based upon preliminarily agreed upon rates. We record revenues for the portion of our services based on our assessment of the expected probability of amounts ultimately to be agreed upon by the court or regulator. These assessments are made on a case-by-case basis depending on the nature of the engagement, client economics, historical experience and other appropriate factors. • Fixed fee arrangements require the client to pay a pre-established fee in exchange for a predetermined set of professional services. We recognize revenues for these arrangements based on the proportional performance related to individual performance obligations within each arrangement, however, these arrangements generally have one performance obligation. • Performance based or contingent arrangements represent forms of variable consideration. In these arrangements, our fees are based on the attainment of contractually defined objectives with our client, such as completing a business transaction or assisting the client in achieving a specific business objective. When our performance obligation(s) are satisfied over time, we determine the transaction price based on the expected probability of achieving the agreed-upon outcome and recognize revenues earned to date by applying the proportional performance method. These arrangements include conditional payments, commonly referred to as success fees, which were previously recognized when the cash was collected. In addition, we generate certain revenues from our Technology segment that are based on units of data stored or processed. Unit based revenues are recognized as services are provided, based on either the amount of data stored or processed, the number of concurrent users accessing the information, or the number of pages or images processed for a client, and agreed-upon per unit rates. We also generate revenues from our on-premise software licenses. Software license revenues are generally recognized at a point in time when the customer acceptance occurs, in accordance with the provision of the arrangements. Certain of our time and expense and fixed fee billing arrangements may include client incentives in the form of volume-based discounts, where if certain fee levels are reached, the client can receive future services at a discounted hourly rate. Contracts with customers that have a prospective discounted pricing option based on predetermined volume thresholds are evaluated to determine whether they include a material right, which is an option that provides a customer the right to acquire free or discounted goods or services in the future. If the option provides a material right to the customer, we allocate a portion of the transaction price to the material right and defer revenues during the pre-discount period, compared to our previous practice of recognizing the reduction in revenues when customers became eligible to receive the volume discount. Reimbursable expenses, including those relating to travel, out-of-pocket expenses, outside consultants and other outside service costs, are generally included in revenues, and an equivalent amount of reimbursable expenses is included in costs of services in the period in which the expense is incurred. |
New Accounting Standards | New Accounting Standards Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers . On January 1, 2018, we adopted ASC 606 using the modified retrospective method and recorded an immaterial cumulative effect adjustment to the beginning balance of retained earnings for revenue contracts that existed at the adoption date. Under the modified retrospective method, prior year information has not been adjusted and continues to be reported under the accounting standards in effect for periods prior to the adoption date. We have not retroactively restated the existing contracts for modifications that occurred before January 1, 2018. See Note 1, "Basis of Presentation and Significant Accounting Policies" in Part I, Item 1, of this Quarterly Report on Form 10-Q for a description of the significant accounting policies and methods used in preparation of the Condensed Consolidated Financial Statements. See Note 4, “Revenues” in Part I, Item 1, of this Quarterly Report on Form 10-Q for the disclosures required under ASC 606. The adoption of ASC 606 had an immaterial impact on our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Balance Sheets and had no impact on our Condensed Consolidated Statements of Cash Flows. In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update), Income Taxes ( Topic 740 ). ASU 2018-05 provides guidance regarding the recording of tax impacts where uncertainty exists, in the period of adoption of the 2017 U.S. Tax Cuts and Jobs Act (the “2017 Tax Act”), which allowed companies to reflect provisional amounts for those specific income tax effects of the 2017 Tax Act for which the accounting under ASC Topic 740 is incomplete but for which a reasonable estimate could be determined. During the six months ended June 30, 2018, the Company has not recognized any material changes to the provisional amounts recorded in our 2017 Annual Report on Form 10-K in connection with the 2017 Tax Act. The accounting for the tax effects of the 2017 Tax Act will be finalized in the second half of 2018 as we complete our federal and state tax returns and incorporate any additional guidance that may be issued by the U.S. tax authorities. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases ("ASC 842") , which supersedes existing lease guidance. Under ASC 842, we will be required to record right-of-use assets and corresponding lease liabilities on the balance sheet. Previously, there was no requirement to recognize an asset or liability on the balance sheet for an operating lease. ASC 842 also requires disclosure of key information about leasing arrangements. This guidance is effective beginning January 1, 2019 using a modified retrospective approach for each prior reporting period presented. In January 2018, the FASB issued an exposure draft of the proposed ASU, Leases (Topic 842): Targeted Improvements. The proposed ASU provides an alternative transition method of adoption, permitting the recognition of a cumulative-effect adjustment to retained earnings on the date of adoption. The Company's implementation plan is under way and includes an information system and business process change to accumulate the appropriate data in order to calculate and record the recognition of right-of-use assets, lease liabilities and the related expense recognition. We are creating an inventory of our existing portfolio of leases and continue to review other contracts to determine if they contain leases as defined by ASC 842. Our existing portfolio of leases is primarily composed of operating leases related to our offices. While this assessment continues, we have not yet determined the effect of ASC 842 on our Condensed Consolidated Balance Sheets. We do not expect that the adoption of ASC 842 will have a material impact on our results of operations or cash flow presentation. |
Earnings (Loss) Per Common Sh25
Earnings (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Potentially dilutive common shares include the dilutive effects of shares issuable under our equity compensation plans, including stock options and restricted shares, each using the treasury stock method. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator — basic and diluted Net income (loss) $ 43,609 $ (5,156 ) $ 82,554 $ 8,860 Denominator Weighted average number of common shares outstanding — basic 37,001 39,555 36,851 40,039 Effect of dilutive stock options 558 — 430 129 Effect of dilutive restricted shares 712 — 661 334 Weighted average number of common shares outstanding — diluted (1) 38,271 39,555 37,942 40,502 Earnings (loss) per common share — basic $ 1.18 $ (0.13 ) $ 2.24 $ 0.22 Earnings (loss) per common share — diluted $ 1.14 $ (0.13 ) $ 2.18 $ 0.22 Antidilutive stock options and restricted shares 44 1,947 330 1,469 (1) For the three months ended June 30, 2017, we excluded 377,389 potentially dilutive securities from the computation as their effect would be anti-dilutive due to a net loss applicable to common stockholders. |
Special Charges (Tables)
Special Charges (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule Of Special Charges By Segment | The following table details the special charges by segment for the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended June 30, Special Charges by Segment 2018 2017 2018 2017 Corporate Finance & Restructuring $ — $ 3,049 $ — $ 3,049 Forensic and Litigation Consulting — 10,445 — 10,445 Economic Consulting — 5,910 — 5,910 Technology — 3,827 — 3,827 Strategic Communications — 3,599 — 3,599 — 26,830 — 26,830 Unallocated Corporate — 3,244 — 3,244 Total $ — $ 30,074 $ — $ 30,074 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying and Estimated Fair Value of Other Financial Instruments | The following table presents the carrying amounts and estimated fair values of our financial instruments by hierarchy level as of June 30, 2018 and December 31, 2017 . June 30, 2018 Hierarchy Level Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 2,960 $ — $ — $ 2,960 Long-term debt 375,000 — 381,750 — Total $ 377,960 $ — $ 381,750 $ 2,960 December 31, 2017 Hierarchy Level Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 3,750 $ — $ — $ 3,750 Long-term debt 400,000 — 409,000 — Total $ 403,750 $ — $ 409,000 $ 3,750 (1) The short-term portion is included in “Accounts payable, accrued expenses and other,” and the long-term portion is included in “Other liabilities” on the Condensed Consolidated Balance Sheets. |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amounts of Goodwill by Operating Segment | The table below summarizes the changes in the carrying amount of goodwill by reportable segment: Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Total Balance at December 31, 2017 Goodwill $ 454,816 $ 233,719 $ 268,995 $ 117,740 $ 323,672 $ 1,398,942 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2017 454,816 233,719 268,995 117,740 129,533 1,204,803 Foreign currency translation adjustment and other (2,454 ) (1,168 ) (213 ) (38 ) (2,198 ) (6,071 ) Balance at June 30, 2018 Goodwill 452,362 232,551 268,782 117,702 321,474 1,392,871 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at June 30, 2018 $ 452,362 $ 232,551 $ 268,782 $ 117,702 $ 127,335 $ 1,198,732 |
Schedule of Future Amortization Expense Intangible Assets | We estimate our future amortization expense for our intangible assets with finite lives to be as follows: Year As of June 30, 2018 (1) 2018 (remaining) $ 3,884 2019 7,437 2020 7,274 2021 6,731 2022 4,939 Thereafter 3,514 $ 33,779 (1) Actual amortization expense to be reported in future periods could differ from these estimates because of new intangible asset acquisitions, changes in useful lives or other relevant factors or changes. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Components of Debt Obligations | The table below summarizes the components of the Company’s long-term debt. June 30, 2018 December 31, 2017 2022 Notes $ 300,000 $ 300,000 Credit Facility 75,000 100,000 Total debt 375,000 400,000 Less: deferred debt issue costs (3,338 ) (3,716 ) Long-term debt, net (1) $ 371,662 $ 396,284 (1) There were no current portions of long-term debt as of June 30, 2018 and December 31, 2017 . |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-Based Compensation Expense | Total share-based compensation expense, net of forfeitures, for the three and six months ended June 30, 2018 and 2017 is detailed in the following table: Three Months Ended June 30, Six Months Ended June 30, Income Statement Classification 2018 2017 2018 2017 Direct cost of revenues $ 2,427 $ 1,183 $ 6,206 $ 7,021 Selling, general and administrative expenses 3,158 1,209 5,347 2,052 Special charges — 96 — 96 Total share-based compensation expense $ 5,585 $ 2,488 $ 11,553 $ 9,169 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | The following table details our stock repurchases under the Repurchase Program: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Shares of common stock repurchased and retired — 1,887 337 2,767 Average price paid per share $ — $ 34.74 $ 42.17 $ 37.03 Total cost $ — $ 65,556 $ 14,213 $ 102,457 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Revenues and Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization for Reportable Segments | The table below presents revenues and Adjusted Segment EBITDA for our reportable segments: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenues Corporate Finance & Restructuring $ 141,355 $ 117,487 $ 284,277 $ 223,388 Forensic and Litigation Consulting 133,527 111,410 261,566 222,816 Economic Consulting 133,308 124,004 266,417 263,225 Technology 46,429 45,566 87,343 91,653 Strategic Communications 57,479 46,248 110,269 89,977 Total revenues $ 512,098 $ 444,715 $ 1,009,872 $ 891,059 Adjusted Segment EBITDA Corporate Finance & Restructuring $ 35,777 $ 20,048 $ 70,581 $ 30,373 Forensic and Litigation Consulting 27,615 13,032 53,372 26,553 Economic Consulting 15,472 15,509 34,608 35,619 Technology 7,508 5,421 13,240 13,225 Strategic Communications 10,967 4,876 20,819 9,133 Total Adjusted Segment EBITDA $ 97,339 $ 58,886 $ 192,620 $ 114,903 |
Reconciliation of Net Income to Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization | The table below reconciles net income (loss) to Total Adjusted Segment EBITDA: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income (loss) $ 43,609 $ (5,156 ) $ 82,554 $ 8,860 Add back: Income tax provision 14,113 527 29,383 8,404 Interest income and other (2,474 ) (1,592 ) (674 ) (2,197 ) Interest expense 6,583 6,250 12,827 12,051 Unallocated corporate expenses 25,882 22,286 49,770 41,339 Segment depreciation expense 7,574 6,783 14,438 13,999 Amortization of intangible assets 2,052 2,422 4,322 4,915 Segment special charges — 26,830 — 26,830 Remeasurement of acquisition-related contingent consideration — 536 — 702 Total Adjusted Segment EBITDA $ 97,339 $ 58,886 $ 192,620 $ 114,903 |
Supplemental Condensed Consol33
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet Information | Condensed Consolidating Balance Sheet as of June 30, 2018 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 14,117 $ 151 $ 102,288 $ — $ 116,556 Accounts receivable, net 194,004 194,976 218,475 — 607,455 Intercompany receivables — 1,123,906 — (1,123,906 ) — Other current assets 33,030 24,765 25,630 — 83,425 Total current assets 241,151 1,343,798 346,393 (1,123,906 ) 807,436 Property and equipment, net 37,147 13,397 24,502 — 75,046 Goodwill 570,876 416,053 211,803 — 1,198,732 Other intangible assets, net 16,678 10,525 25,564 (13,388 ) 39,379 Investments in subsidiaries 2,199,577 491,143 — (2,690,720 ) — Other assets 34,322 64,889 37,608 — 136,819 Total assets $ 3,099,751 $ 2,339,805 $ 645,870 $ (3,828,014 ) $ 2,257,412 Liabilities Intercompany payables $ 1,117,874 $ — $ 6,032 $ (1,123,906 ) $ — Other current liabilities 123,468 124,473 104,363 — 352,304 Total current liabilities 1,241,342 124,473 110,395 (1,123,906 ) 352,304 Long-term debt, net 371,662 — — — 371,662 Other liabilities 210,946 11,407 35,292 — 257,645 Total liabilities 1,823,950 135,880 145,687 (1,123,906 ) 981,611 Stockholders' equity 1,275,801 2,203,925 500,183 (2,704,108 ) 1,275,801 Total liabilities and stockholders' equity $ 3,099,751 $ 2,339,805 $ 645,870 $ (3,828,014 ) $ 2,257,412 Condensed Consolidating Balance Sheet as of December 31, 2017 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 10,186 $ 159 $ 179,616 $ — $ 189,961 Accounts receivable, net 155,124 156,859 210,895 — 522,878 Intercompany receivables — 1,093,211 32,695 (1,125,906 ) — Other current assets 31,933 21,840 27,567 — 81,340 Total current assets 197,243 1,272,069 450,773 (1,125,906 ) 794,179 Property and equipment, net 39,137 13,572 22,366 — 75,075 Goodwill 570,876 416,053 217,874 — 1,204,803 Other intangible assets, net 18,426 11,251 29,441 (14,968 ) 44,150 Investments in subsidiaries 2,175,362 566,911 — (2,742,273 ) — Other assets 34,454 60,566 44,014 — 139,034 Total assets $ 3,035,498 $ 2,340,422 $ 764,468 $ (3,883,147 ) $ 2,257,241 Liabilities Intercompany payables $ 1,125,906 $ — $ — $ (1,125,906 ) $ — Other current liabilities 127,295 144,474 138,559 — 410,328 Total current liabilities 1,253,201 144,474 138,559 (1,125,906 ) 410,328 Long-term debt, net 396,284 — — — 396,284 Other liabilities 194,042 14,753 49,863 — 258,658 Total liabilities 1,843,527 159,227 188,422 (1,125,906 ) 1,065,270 Stockholders' equity 1,191,971 2,181,195 576,046 (2,757,241 ) 1,191,971 Total liabilities and stockholders' equity $ 3,035,498 $ 2,340,422 $ 764,468 $ (3,883,147 ) $ 2,257,241 |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended June 30, 2018 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 187,569 $ 159,288 $ 166,503 $ (1,262 ) $ 512,098 Operating expenses Direct cost of revenues 115,751 110,665 105,334 (1,432 ) 330,318 Selling, general and administrative expenses 53,472 30,494 33,797 134 117,897 Amortization of other intangible assets 874 313 1,637 (772 ) 2,052 170,097 141,472 140,768 (2,070 ) 450,267 Operating income 17,472 17,816 25,735 808 61,831 Other income (expense) (32,179 ) (572 ) 5,642 23,000 (4,109 ) Income (loss) before income tax provision (14,707 ) 17,244 31,377 23,808 57,722 Income tax provision 2,547 4,977 6,589 — 14,113 Equity in net earnings of subsidiaries 60,863 32,779 — (93,642 ) — Net income $ 43,609 $ 45,046 $ 24,788 $ (69,834 ) $ 43,609 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (23,683 ) $ — $ (23,683 ) Other comprehensive loss, net of tax — — (23,683 ) — (23,683 ) Comprehensive income $ 43,609 $ 45,046 $ 1,105 $ (69,834 ) $ 19,926 Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended June 30, 2017 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 163,649 $ 151,716 $ 131,480 $ (2,130 ) $ 444,715 Operating expenses Direct cost of revenues 108,445 108,388 89,307 (2,069 ) 304,071 Selling, general and administrative expenses 45,908 31,730 30,542 (61 ) 108,119 Special charges 13,592 7,306 9,176 — 30,074 Amortization of other intangible assets 883 540 1,741 (742 ) 2,422 168,828 147,964 130,766 (2,872 ) 444,686 Operating income (loss) (5,179 ) 3,752 714 742 29 Other income (expense) (5,361 ) (71 ) 774 — (4,658 ) Income (loss) before income tax provision (10,540 ) 3,681 1,488 742 (4,629 ) Income tax provision (benefit) (7,034 ) 4,219 3,342 — 527 Equity in net earnings of subsidiaries (1,650 ) (3,862 ) — 5,512 — Net loss $ (5,156 ) $ (4,400 ) $ (1,854 ) $ 6,254 $ (5,156 ) Other comprehensive income, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ 10,174 $ — $ 10,174 Other comprehensive income, net of tax — — 10,174 — 10,174 Comprehensive income (loss) $ (5,156 ) $ (4,400 ) $ 8,320 $ 6,254 $ 5,018 Condensed Consolidating Statement of Comprehensive Income for the Six Months Ended June 30, 2018 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 372,890 $ 316,417 $ 324,275 $ (3,710 ) $ 1,009,872 Operating expenses Direct cost of revenues 231,211 220,063 203,931 (3,770 ) 651,435 Selling, general and administrative expenses 104,153 59,474 66,374 24 230,025 Amortization of other intangible assets 1,748 727 3,427 (1,580 ) 4,322 337,112 280,264 273,732 (5,326 ) 885,782 Operating income 35,778 36,153 50,543 1,616 124,090 Other income (expense) (15,249 ) (881 ) 3,977 — (12,153 ) Income before income tax provision 20,529 35,272 54,520 1,616 111,937 Income tax provision 6,917 11,017 11,449 — 29,383 Equity in net earnings of subsidiaries 68,942 67,567 — (136,509 ) — Net income $ 82,554 $ 91,822 $ 43,071 $ (134,893 ) $ 82,554 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (13,237 ) $ — $ (13,237 ) Other comprehensive loss, net of tax — — (13,237 ) — (13,237 ) Comprehensive income $ 82,554 $ 91,822 $ 29,834 $ (134,893 ) $ 69,317 Condensed Consolidating Statement of Comprehensive Income for the Six Months Ended June 30, 2017 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 315,456 $ 322,742 $ 257,583 $ (4,722 ) $ 891,059 Operating expenses Direct cost of revenues 219,703 226,174 171,868 (4,602 ) 613,143 Selling, general and administrative expenses 91,706 63,109 61,114 (120 ) 215,809 Special charges 13,592 7,306 9,176 — 30,074 Amortization of other intangible assets 1,785 1,080 3,511 (1,461 ) 4,915 326,786 297,669 245,669 (6,183 ) 863,941 Operating income (loss) (11,330 ) 25,073 11,914 1,461 27,118 Other income (expense) (10,613 ) (498 ) 1,257 — (9,854 ) Income (loss) before income tax provision (21,943 ) 24,575 13,171 1,461 17,264 Income tax provision (benefit) (12,617 ) 15,137 5,884 — 8,404 Equity in net earnings of subsidiaries 18,186 4,711 — (22,897 ) — Net income $ 8,860 $ 14,149 $ 7,287 $ (21,436 ) $ 8,860 Other comprehensive income, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ 17,544 $ — $ 17,544 Other comprehensive income, net of tax — — 17,544 — 17,544 Comprehensive income $ 8,860 $ 14,149 $ 24,831 $ (21,436 ) $ 26,404 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2018 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Operating activities Net cash provided by (used in) operating activities $ 37,040 $ 65,711 $ (137,336 ) $ (34,585 ) Investing activities Purchases of property and equipment (4,376 ) (5,181 ) (6,663 ) (16,220 ) Other 39 — 650 689 Net cash used in investing activities (4,337 ) (5,181 ) (6,013 ) (15,531 ) Financing activities Repayments under revolving line of credit, net (25,000 ) — — (25,000 ) Deposits — — 2,602 2,602 Purchase and retirement of common stock (14,220 ) — — (14,220 ) Net issuance of common stock under equity compensation plans 18,740 — — 18,740 Payments for acquisition-related contingent consideration (500 ) (2,529 ) — (3,029 ) Intercompany transfers (7,792 ) (58,009 ) 65,801 — Net cash provided by (used in) financing activities (28,772 ) (60,538 ) 68,403 (20,907 ) Effects of exchange rate changes on cash and cash equivalents — — (2,382 ) (2,382 ) Net increase (decrease) in cash and cash equivalents 3,931 (8 ) (77,328 ) (73,405 ) Cash and cash equivalents, beginning of year 10,186 159 179,616 189,961 Cash and cash equivalents, end of year $ 14,117 $ 151 $ 102,288 $ 116,556 Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2017 FTI Consulting Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Operating activities Net cash provided by (used in) operating activities $ (56,917 ) $ 1,386 $ (26,669 ) $ (82,200 ) Investing activities Purchases of property and equipment (5,440 ) (4,655 ) (3,032 ) (13,127 ) Other 72 — — 72 Net cash used in investing activities (5,368 ) (4,655 ) (3,032 ) (13,055 ) Financing activities Borrowings under revolving line of credit, net 115,000 — — 115,000 Deposits — — 3,262 3,262 Purchase and retirement of common stock (102,513 ) — — (102,513 ) Net issuance of common stock under equity compensation plans (500 ) — — (500 ) Payments for acquisition-related contingent consideration (79 ) — — (79 ) Intercompany transfers 18,070 3,271 (21,341 ) — Net cash provided by (used in) financing activities 29,978 3,271 (18,079 ) 15,170 Effects of exchange rate changes on cash and cash equivalents — — 2,438 2,438 Net increase (decrease) in cash and cash equivalents (32,307 ) 2 (45,342 ) (77,647 ) Cash and cash equivalents, beginning of year 47,420 156 168,582 216,158 Cash and cash equivalents, end of year $ 15,113 $ 158 $ 123,240 $ 138,511 |
Earnings (Loss) Per Common Sh34
Earnings (Loss) Per Common Share - Schedule of Earnings Per Share Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator — basic and diluted | ||||
Net income (loss) | $ 43,609 | $ (5,156) | $ 82,554 | $ 8,860 |
Denominator | ||||
Weighted average number of common shares outstanding — basic (in shares) | 37,001,000 | 39,555,000 | 36,851,000 | 40,039,000 |
Effect of dilutive stock options (in shares) | 558,000 | 0 | 430,000 | 129,000 |
Effect of dilutive restricted shares (in shares) | 712,000 | 0 | 661,000 | 334,000 |
Weighted average number of common shares outstanding — diluted (in shares) | 38,271,000 | 39,555,000 | 37,942,000 | 40,502,000 |
Earnings (loss) per common share — basic (in dollars per share) | $ 1.18 | $ (0.13) | $ 2.24 | $ 0.22 |
Earnings (loss) per common share — diluted (in dollars per share) | $ 1.14 | $ (0.13) | $ 2.18 | $ 0.22 |
Antidilutive stock options and restricted shares (in shares) | 377,389 | |||
Stock Options And Restricted Shares | ||||
Denominator | ||||
Antidilutive stock options and restricted shares (in shares) | 44,000 | 1,947,000 | 330,000 | 1,469,000 |
Revenues (Details)
Revenues (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Performance obligations satisfied or partially satisfied in previous periods | $ 4.5 | $ 6.5 |
Unfulfilled performance obligations | $ 3.8 | $ 3.8 |
Performance obligation expected duration | 18 months |
Accounts Receivable and Allow36
Accounts Receivable and Allowance for Doubtful Accounts - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance For Doubtful Accounts And Unbilled Services [Abstract] | ||||
Provision for doubtful accounts | $ 3,000 | $ 2,400 | $ 8,710 | $ 5,971 |
Special Charges - Additional In
Special Charges - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | $ 0 | $ 30,074,000 | $ 0 | $ 30,074,000 |
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | 16,100,000 | |||
Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | 12,400,000 | |||
Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | $ 1,600,000 |
Special Charges - Schedule Of S
Special Charges - Schedule Of Special Charges By Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | $ 0 | $ 30,074,000 | $ 0 | $ 30,074,000 |
Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | 0 | 26,830,000 | 0 | 26,830,000 |
Unallocated Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | 0 | 3,244,000 | 0 | 3,244,000 |
Corporate Finance & Restructuring | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | 0 | 3,049,000 | 0 | 3,049,000 |
Forensic and Litigation Consulting | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | 0 | 10,445,000 | 0 | 10,445,000 |
Economic Consulting | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | 0 | 5,910,000 | 0 | 5,910,000 |
Technology | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | 0 | 3,827,000 | 0 | 3,827,000 |
Strategic Communications | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special charges | $ 0 | $ 3,599,000 | $ 0 | $ 3,599,000 |
Research and Development Costs
Research and Development Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Research and Development [Abstract] | ||||
Research and development costs related to software development | $ 2.9 | $ 4.3 | $ 5.8 | $ 8.5 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Carrying and Estimated Fair Value of Other Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | $ 2,960 | $ 3,750 |
Long-term debt | 375,000 | 400,000 |
Total | 377,960 | 403,750 |
Level 1 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | 0 | 0 |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Level 2 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | 0 | 0 |
Long-term debt | 381,750 | 409,000 |
Total | 381,750 | 409,000 |
Level 3 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | 2,960 | 3,750 |
Long-term debt | 0 | 0 |
Total | $ 2,960 | $ 3,750 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Expense related to increase in fair value of future expected contingent consideration | $ 0 | $ (700,000) |
Senior Notes | 6.0% senior notes due 2022 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate (as a percent) | 6.00% |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amounts of Goodwill by Operating Segment (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 1,392,871 | $ 1,398,942 |
Accumulated goodwill impairment | (194,139) | (194,139) |
Goodwill beginning of period | 1,204,803 | |
Foreign currency translation adjustment and other | (6,071) | |
Goodwill end of period | 1,198,732 | |
Corporate Finance & Restructuring | ||
Goodwill [Roll Forward] | ||
Goodwill | 452,362 | 454,816 |
Goodwill beginning of period | 454,816 | |
Foreign currency translation adjustment and other | (2,454) | |
Goodwill end of period | 452,362 | |
Forensic and Litigation Consulting | ||
Goodwill [Roll Forward] | ||
Goodwill | 232,551 | 233,719 |
Goodwill beginning of period | 233,719 | |
Foreign currency translation adjustment and other | (1,168) | |
Goodwill end of period | 232,551 | |
Economic Consulting | ||
Goodwill [Roll Forward] | ||
Goodwill | 268,782 | 268,995 |
Goodwill beginning of period | 268,995 | |
Foreign currency translation adjustment and other | (213) | |
Goodwill end of period | 268,782 | |
Technology | ||
Goodwill [Roll Forward] | ||
Goodwill | 117,702 | 117,740 |
Goodwill beginning of period | 117,740 | |
Foreign currency translation adjustment and other | (38) | |
Goodwill end of period | 117,702 | |
Strategic Communications | ||
Goodwill [Roll Forward] | ||
Goodwill | 321,474 | 323,672 |
Accumulated goodwill impairment | (194,139) | $ (194,139) |
Goodwill beginning of period | 129,533 | |
Foreign currency translation adjustment and other | (2,198) | |
Goodwill end of period | $ 127,335 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of other intangible assets | $ 2,052 | $ 2,422 | $ 4,322 | $ 4,915 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Schedule of Future Amortization Expense (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2018 (remaining) | $ 3,884 |
2,019 | 7,437 |
2,020 | 7,274 |
2,021 | 6,731 |
2,022 | 4,939 |
Thereafter | 3,514 |
Amortized intangible assets, Net Carrying Amount | $ 33,779 |
Long-Term Debt - Summary of Com
Long-Term Debt - Summary of Components of Debt Obligations (Detail) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 375,000,000 | $ 400,000,000 |
Less: deferred debt issue costs | (3,338,000) | (3,716,000) |
Long-term debt, net | 371,662,000 | 396,284,000 |
Long-term debt, current portion | 0 | 0 |
Senior Notes | 6.0% senior notes due 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | 300,000,000 | 300,000,000 |
Line of Credit | Credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | $ 75,000,000 | $ 100,000,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Millions | Jun. 30, 2018USD ($) |
Credit facility | Line of Credit | |
Debt Instrument [Line Items] | |
Borrowing limit used | $ 1 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018shares | |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options forfeited (in shares) | 190,927 |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based awards granted (in shares) | 216,761 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based awards granted (in shares) | 32,374 |
Restricted stock awards forfeited (in shares) | 7,907 |
Performance-Based Restricted Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based awards granted (in shares) | 91,370 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | $ 5,585 | $ 2,488 | $ 11,553 | $ 9,169 |
Direct cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | 2,427 | 1,183 | 6,206 | 7,021 |
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | 3,158 | 1,209 | 5,347 | 2,052 |
Special charges | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | $ 0 | $ 96 | $ 0 | $ 96 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - 2016 Stock Repurchase Program - USD ($) | Jun. 30, 2018 | Dec. 01, 2017 | May 18, 2017 | Jun. 02, 2016 |
Stockholders Equity [Line Items] | ||||
Stock repurchase program authorized amount | $ 300,000,000 | $ 100,000,000 | ||
Stock repurchase program additional amount authorized | $ 100,000,000 | $ 100,000,000 | ||
Available amount under repurchase program | $ 99,100,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Repurchases (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stockholders Equity [Line Items] | ||||
Total cost | $ 14,220 | |||
2016 Stock Repurchase Program | ||||
Stockholders Equity [Line Items] | ||||
Shares of common stock repurchased and retired | 0 | 1,887 | 0 | 2,767 |
Average price paid per share | $ 0 | $ 34.74 | $ 42.17 | $ 37.03 |
Total cost | $ 0 | $ 65,556 | $ 14,213 | $ 102,457 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 512,098 | $ 444,715 | $ 1,009,872 | $ 891,059 |
Adjusted Segment EBITDA | 97,339 | 58,886 | 192,620 | 114,903 |
Corporate Finance & Restructuring | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 141,355 | 117,487 | 284,277 | 223,388 |
Adjusted Segment EBITDA | 35,777 | 20,048 | 70,581 | 30,373 |
Forensic and Litigation Consulting | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 133,527 | 111,410 | 261,566 | 222,816 |
Adjusted Segment EBITDA | 27,615 | 13,032 | 53,372 | 26,553 |
Economic Consulting | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 133,308 | 124,004 | 266,417 | 263,225 |
Adjusted Segment EBITDA | 15,472 | 15,509 | 34,608 | 35,619 |
Technology | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 46,429 | 45,566 | 87,343 | 91,653 |
Adjusted Segment EBITDA | 7,508 | 5,421 | 13,240 | 13,225 |
Strategic Communications | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 57,479 | 46,248 | 110,269 | 89,977 |
Adjusted Segment EBITDA | $ 10,967 | $ 4,876 | $ 20,819 | $ 9,133 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Net Income to Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Net income (loss) | $ 43,609 | $ (5,156) | $ 82,554 | $ 8,860 |
Add back: | ||||
Income tax provision | 14,113 | 527 | 29,383 | 8,404 |
Interest income and other | (2,474) | (1,592) | (674) | (2,197) |
Interest expense | 6,583 | 6,250 | 12,827 | 12,051 |
Total Adjusted Segment EBITDA | 97,339 | 58,886 | 192,620 | 114,903 |
Segment Reconciling Items | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Net income (loss) | 43,609 | (5,156) | 82,554 | 8,860 |
Add back: | ||||
Income tax provision | 14,113 | 527 | 29,383 | 8,404 |
Interest income and other | (2,474) | (1,592) | (674) | (2,197) |
Interest expense | 6,583 | 6,250 | 12,827 | 12,051 |
Unallocated corporate expenses | 25,882 | 22,286 | 49,770 | 41,339 |
Segment depreciation expense | 7,574 | 6,783 | 14,438 | 13,999 |
Amortization of intangible assets | 2,052 | 2,422 | 4,322 | 4,915 |
Segment Reporting Special Charges Amount | 0 | 26,830 | 0 | 26,830 |
Remeasurement of acquisition-related contingent consideration | 0 | 536 | 0 | 702 |
Total Adjusted Segment EBITDA | $ 97,339 | $ 58,886 | $ 192,620 | $ 114,903 |
Supplemental Condensed Consol54
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Balance Sheet Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | $ 116,556 | $ 189,961 | $ 138,511 | $ 216,158 |
Accounts receivable, net | 607,455 | 522,878 | ||
Intercompany receivables | 0 | 0 | ||
Other current assets | 83,425 | 81,340 | ||
Total current assets | 807,436 | 794,179 | ||
Property and equipment, net | 75,046 | 75,075 | ||
Goodwill | 1,198,732 | 1,204,803 | ||
Other intangible assets, net | 39,379 | 44,150 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 136,819 | 139,034 | ||
Total assets | 2,257,412 | 2,257,241 | ||
Liabilities | ||||
Intercompany payables | 0 | 0 | ||
Other current liabilities | 352,304 | 410,328 | ||
Total current liabilities | 352,304 | 410,328 | ||
Long-term debt, net | 371,662 | 396,284 | ||
Other liabilities | 257,645 | 258,658 | ||
Total liabilities | 981,611 | 1,065,270 | ||
Stockholders' equity | 1,275,801 | 1,191,971 | ||
Total liabilities and stockholders' equity | 2,257,412 | 2,257,241 | ||
Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | (1,123,906) | (1,125,906) | ||
Other current assets | 0 | 0 | ||
Total current assets | (1,123,906) | (1,125,906) | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | (13,388) | (14,968) | ||
Investments in subsidiaries | (2,690,720) | (2,742,273) | ||
Other assets | 0 | 0 | ||
Total assets | (3,828,014) | (3,883,147) | ||
Liabilities | ||||
Intercompany payables | (1,123,906) | (1,125,906) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (1,123,906) | (1,125,906) | ||
Long-term debt, net | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (1,123,906) | (1,125,906) | ||
Stockholders' equity | (2,704,108) | (2,757,241) | ||
Total liabilities and stockholders' equity | (3,828,014) | (3,883,147) | ||
FTI Consulting | ||||
Assets | ||||
Cash and cash equivalents | 14,117 | 10,186 | 15,113 | 47,420 |
Accounts receivable, net | 194,004 | 155,124 | ||
Intercompany receivables | 0 | 0 | ||
Other current assets | 33,030 | 31,933 | ||
Total current assets | 241,151 | 197,243 | ||
Property and equipment, net | 37,147 | 39,137 | ||
Goodwill | 570,876 | 570,876 | ||
Other intangible assets, net | 16,678 | 18,426 | ||
Investments in subsidiaries | 2,199,577 | 2,175,362 | ||
Other assets | 34,322 | 34,454 | ||
Total assets | 3,099,751 | 3,035,498 | ||
Liabilities | ||||
Intercompany payables | 1,117,874 | 1,125,906 | ||
Other current liabilities | 123,468 | 127,295 | ||
Total current liabilities | 1,241,342 | 1,253,201 | ||
Long-term debt, net | 371,662 | 396,284 | ||
Other liabilities | 210,946 | 194,042 | ||
Total liabilities | 1,823,950 | 1,843,527 | ||
Stockholders' equity | 1,275,801 | 1,191,971 | ||
Total liabilities and stockholders' equity | 3,099,751 | 3,035,498 | ||
Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 151 | 159 | 158 | 156 |
Accounts receivable, net | 194,976 | 156,859 | ||
Intercompany receivables | 1,123,906 | 1,093,211 | ||
Other current assets | 24,765 | 21,840 | ||
Total current assets | 1,343,798 | 1,272,069 | ||
Property and equipment, net | 13,397 | 13,572 | ||
Goodwill | 416,053 | 416,053 | ||
Other intangible assets, net | 10,525 | 11,251 | ||
Investments in subsidiaries | 491,143 | 566,911 | ||
Other assets | 64,889 | 60,566 | ||
Total assets | 2,339,805 | 2,340,422 | ||
Liabilities | ||||
Intercompany payables | 0 | 0 | ||
Other current liabilities | 124,473 | 144,474 | ||
Total current liabilities | 124,473 | 144,474 | ||
Long-term debt, net | 0 | 0 | ||
Other liabilities | 11,407 | 14,753 | ||
Total liabilities | 135,880 | 159,227 | ||
Stockholders' equity | 2,203,925 | 2,181,195 | ||
Total liabilities and stockholders' equity | 2,339,805 | 2,340,422 | ||
Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 102,288 | 179,616 | $ 123,240 | $ 168,582 |
Accounts receivable, net | 218,475 | 210,895 | ||
Intercompany receivables | 0 | 32,695 | ||
Other current assets | 25,630 | 27,567 | ||
Total current assets | 346,393 | 450,773 | ||
Property and equipment, net | 24,502 | 22,366 | ||
Goodwill | 211,803 | 217,874 | ||
Other intangible assets, net | 25,564 | 29,441 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 37,608 | 44,014 | ||
Total assets | 645,870 | 764,468 | ||
Liabilities | ||||
Intercompany payables | 6,032 | 0 | ||
Other current liabilities | 104,363 | 138,559 | ||
Total current liabilities | 110,395 | 138,559 | ||
Long-term debt, net | 0 | 0 | ||
Other liabilities | 35,292 | 49,863 | ||
Total liabilities | 145,687 | 188,422 | ||
Stockholders' equity | 500,183 | 576,046 | ||
Total liabilities and stockholders' equity | $ 645,870 | $ 764,468 |
Supplemental Condensed Consol55
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Statement Of Comprehensive Income (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | $ 512,098,000 | $ 444,715,000 | $ 1,009,872,000 | $ 891,059,000 |
Operating expenses | ||||
Direct cost of revenues | 330,318,000 | 304,071,000 | 651,435,000 | 613,143,000 |
Selling, general and administrative expenses | 117,897,000 | 108,119,000 | 230,025,000 | 215,809,000 |
Special charges | 0 | 30,074,000 | 0 | 30,074,000 |
Amortization of other intangible assets | 2,052,000 | 2,422,000 | 4,322,000 | 4,915,000 |
Operating expenses | 450,267,000 | 444,686,000 | 885,782,000 | 863,941,000 |
Operating income | 61,831,000 | 29,000 | 124,090,000 | 27,118,000 |
Other income (expense) | (4,109,000) | (4,658,000) | (12,153,000) | (9,854,000) |
Income (loss) before income tax provision | 57,722,000 | (4,629,000) | 111,937,000 | 17,264,000 |
Income tax provision | 14,113,000 | 527,000 | 29,383,000 | 8,404,000 |
Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | 43,609,000 | (5,156,000) | 82,554,000 | 8,860,000 |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments, net of tax expense of $0 | (23,683,000) | 10,174,000 | (13,237,000) | 17,544,000 |
Total other comprehensive income (loss), net of tax | (23,683,000) | 10,174,000 | (13,237,000) | 17,544,000 |
Comprehensive income | 19,926,000 | 5,018,000 | 69,317,000 | 26,404,000 |
Foreign currency translation adjustments, tax expense | 0 | 0 | 0 | 0 |
Eliminations | ||||
Revenues | (1,262,000) | (2,130,000) | (3,710,000) | (4,722,000) |
Operating expenses | ||||
Direct cost of revenues | (1,432,000) | (2,069,000) | (3,770,000) | (4,602,000) |
Selling, general and administrative expenses | 134,000 | (61,000) | 24,000 | (120,000) |
Special charges | 0 | 0 | ||
Amortization of other intangible assets | (772,000) | (742,000) | (1,580,000) | (1,461,000) |
Operating expenses | (2,070,000) | (2,872,000) | (5,326,000) | (6,183,000) |
Operating income | 808,000 | 742,000 | 1,616,000 | 1,461,000 |
Other income (expense) | 23,000,000 | 0 | 0 | 0 |
Income (loss) before income tax provision | 23,808,000 | 742,000 | 1,616,000 | 1,461,000 |
Income tax provision | 0 | 0 | 0 | 0 |
Equity in net earnings of subsidiaries | (93,642,000) | 5,512,000 | (136,509,000) | (22,897,000) |
Net income (loss) | (69,834,000) | 6,254,000 | (134,893,000) | (21,436,000) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments, net of tax expense of $0 | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Comprehensive income | (69,834,000) | 6,254,000 | (134,893,000) | (21,436,000) |
FTI Consulting | ||||
Revenues | 187,569,000 | 163,649,000 | 372,890,000 | 315,456,000 |
Operating expenses | ||||
Direct cost of revenues | 115,751,000 | 108,445,000 | 231,211,000 | 219,703,000 |
Selling, general and administrative expenses | 53,472,000 | 45,908,000 | 104,153,000 | 91,706,000 |
Special charges | 13,592,000 | 13,592,000 | ||
Amortization of other intangible assets | 874,000 | 883,000 | 1,748,000 | 1,785,000 |
Operating expenses | 170,097,000 | 168,828,000 | 337,112,000 | 326,786,000 |
Operating income | 17,472,000 | (5,179,000) | 35,778,000 | (11,330,000) |
Other income (expense) | (32,179,000) | (5,361,000) | (15,249,000) | (10,613,000) |
Income (loss) before income tax provision | (14,707,000) | (10,540,000) | 20,529,000 | (21,943,000) |
Income tax provision | 2,547,000 | (7,034,000) | 6,917,000 | (12,617,000) |
Equity in net earnings of subsidiaries | 60,863,000 | (1,650,000) | 68,942,000 | 18,186,000 |
Net income (loss) | 43,609,000 | (5,156,000) | 82,554,000 | 8,860,000 |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments, net of tax expense of $0 | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Comprehensive income | 43,609,000 | (5,156,000) | 82,554,000 | 8,860,000 |
Guarantor Subsidiaries | ||||
Revenues | 159,288,000 | 151,716,000 | 316,417,000 | 322,742,000 |
Operating expenses | ||||
Direct cost of revenues | 110,665,000 | 108,388,000 | 220,063,000 | 226,174,000 |
Selling, general and administrative expenses | 30,494,000 | 31,730,000 | 59,474,000 | 63,109,000 |
Special charges | 7,306,000 | 7,306,000 | ||
Amortization of other intangible assets | 313,000 | 540,000 | 727,000 | 1,080,000 |
Operating expenses | 141,472,000 | 147,964,000 | 280,264,000 | 297,669,000 |
Operating income | 17,816,000 | 3,752,000 | 36,153,000 | 25,073,000 |
Other income (expense) | (572,000) | (71,000) | (881,000) | (498,000) |
Income (loss) before income tax provision | 17,244,000 | 3,681,000 | 35,272,000 | 24,575,000 |
Income tax provision | 4,977,000 | 4,219,000 | 11,017,000 | 15,137,000 |
Equity in net earnings of subsidiaries | 32,779,000 | (3,862,000) | 67,567,000 | 4,711,000 |
Net income (loss) | 45,046,000 | (4,400,000) | 91,822,000 | 14,149,000 |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments, net of tax expense of $0 | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Comprehensive income | 45,046,000 | (4,400,000) | 91,822,000 | 14,149,000 |
Non-Guarantor Subsidiaries | ||||
Revenues | 166,503,000 | 131,480,000 | 324,275,000 | 257,583,000 |
Operating expenses | ||||
Direct cost of revenues | 105,334,000 | 89,307,000 | 203,931,000 | 171,868,000 |
Selling, general and administrative expenses | 33,797,000 | 30,542,000 | 66,374,000 | 61,114,000 |
Special charges | 9,176,000 | 9,176,000 | ||
Amortization of other intangible assets | 1,637,000 | 1,741,000 | 3,427,000 | 3,511,000 |
Operating expenses | 140,768,000 | 130,766,000 | 273,732,000 | 245,669,000 |
Operating income | 25,735,000 | 714,000 | 50,543,000 | 11,914,000 |
Other income (expense) | 5,642,000 | 774,000 | 3,977,000 | 1,257,000 |
Income (loss) before income tax provision | 31,377,000 | 1,488,000 | 54,520,000 | 13,171,000 |
Income tax provision | 6,589,000 | 3,342,000 | 11,449,000 | 5,884,000 |
Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | 24,788,000 | (1,854,000) | 43,071,000 | 7,287,000 |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments, net of tax expense of $0 | (23,683,000) | 10,174,000 | (13,237,000) | 17,544,000 |
Total other comprehensive income (loss), net of tax | (23,683,000) | 10,174,000 | (13,237,000) | 17,544,000 |
Comprehensive income | $ 1,105,000 | $ 8,320,000 | $ 29,834,000 | $ 24,831,000 |
Supplemental Condensed Consol56
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Statement Of Cash Flows (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net cash provided by (used in) operating activities | $ (34,585) | $ (82,200) |
Investing activities | ||
Purchases of property and equipment | (16,220) | (13,127) |
Other | 689 | 72 |
Net cash used in investing activities | (15,531) | (13,055) |
Financing activities | ||
Repayments under revolving line of credit, net | (25,000) | 115,000 |
Deposits | 2,602 | 3,262 |
Purchase and retirement of common stock | (14,220) | (102,513) |
Net issuance of common stock under equity compensation plans | 18,740 | (500) |
Payments for acquisition-related contingent consideration | (3,029) | (79) |
Intercompany transfers | 0 | 0 |
Net cash provided by (used in) financing activities | (20,907) | 15,170 |
Effect of exchange rate changes on cash and cash equivalents | (2,382) | 2,438 |
Net decrease in cash and cash equivalents | (73,405) | (77,647) |
Cash and cash equivalents, beginning of period | 189,961 | 216,158 |
Cash and cash equivalents, end of period | 116,556 | 138,511 |
FTI Consulting | ||
Operating activities | ||
Net cash provided by (used in) operating activities | 37,040 | (56,917) |
Investing activities | ||
Purchases of property and equipment | (4,376) | (5,440) |
Other | 39 | 72 |
Net cash used in investing activities | (4,337) | (5,368) |
Financing activities | ||
Repayments under revolving line of credit, net | (25,000) | 115,000 |
Deposits | 0 | 0 |
Purchase and retirement of common stock | (14,220) | (102,513) |
Net issuance of common stock under equity compensation plans | 18,740 | (500) |
Payments for acquisition-related contingent consideration | (500) | (79) |
Intercompany transfers | (7,792) | 18,070 |
Net cash provided by (used in) financing activities | (28,772) | 29,978 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | 3,931 | (32,307) |
Cash and cash equivalents, beginning of period | 10,186 | 47,420 |
Cash and cash equivalents, end of period | 14,117 | 15,113 |
Guarantor Subsidiaries | ||
Operating activities | ||
Net cash provided by (used in) operating activities | 65,711 | 1,386 |
Investing activities | ||
Purchases of property and equipment | (5,181) | (4,655) |
Other | 0 | 0 |
Net cash used in investing activities | (5,181) | (4,655) |
Financing activities | ||
Repayments under revolving line of credit, net | 0 | 0 |
Deposits | 0 | 0 |
Purchase and retirement of common stock | 0 | 0 |
Net issuance of common stock under equity compensation plans | 0 | 0 |
Payments for acquisition-related contingent consideration | (2,529) | 0 |
Intercompany transfers | (58,009) | 3,271 |
Net cash provided by (used in) financing activities | (60,538) | 3,271 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | (8) | 2 |
Cash and cash equivalents, beginning of period | 159 | 156 |
Cash and cash equivalents, end of period | 151 | 158 |
Non-Guarantor Subsidiaries | ||
Operating activities | ||
Net cash provided by (used in) operating activities | (137,336) | (26,669) |
Investing activities | ||
Purchases of property and equipment | (6,663) | (3,032) |
Other | 650 | 0 |
Net cash used in investing activities | (6,013) | (3,032) |
Financing activities | ||
Repayments under revolving line of credit, net | 0 | 0 |
Deposits | 2,602 | 3,262 |
Purchase and retirement of common stock | 0 | 0 |
Net issuance of common stock under equity compensation plans | 0 | 0 |
Payments for acquisition-related contingent consideration | 0 | 0 |
Intercompany transfers | 65,801 | (21,341) |
Net cash provided by (used in) financing activities | 68,403 | (18,079) |
Effect of exchange rate changes on cash and cash equivalents | (2,382) | 2,438 |
Net decrease in cash and cash equivalents | (77,328) | (45,342) |
Cash and cash equivalents, beginning of period | 179,616 | 168,582 |
Cash and cash equivalents, end of period | $ 102,288 | $ 123,240 |