Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 17, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-14875 | ||
Entity Registrant Name | FTI CONSULTING, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 52-1261113 | ||
Entity Address, Address Line One | 555 12th Street NW | ||
Entity Address, City or Town | Washington, | ||
Entity Address, Postal Zip Code | 20004 | ||
Entity Address, State or Province | DC | ||
City Area Code | 202 | ||
Local Phone Number | 312-9100 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | FCN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.3 | ||
Entity Common Stock, Shares Outstanding (in shares) | 37,493,897 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of our definitive Proxy Statement to be filed with the Securities and Exchange Commission within 120 days after the end of our 2019 fiscal year are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000887936 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 369,373 | $ 312,069 |
Accounts receivable: | ||
Billed receivables | 540,584 | 437,797 |
Unbilled receivables | 418,288 | 319,205 |
Allowance for doubtful accounts and unbilled services | (265,500) | (202,394) |
Accounts receivable, net | 693,372 | 554,608 |
Current portion of notes receivable | 35,106 | 29,228 |
Prepaid expenses and other current assets | 80,810 | 69,448 |
Total current assets | 1,178,661 | 965,353 |
Property and equipment, net | 93,672 | 84,577 |
Operating lease assets | 159,777 | |
Goodwill | 1,202,767 | 1,172,316 |
Other intangible assets, net | 38,432 | 34,633 |
Notes receivable, net | 69,033 | 84,471 |
Other assets | 40,800 | 37,771 |
Total assets | 2,783,142 | 2,379,121 |
Current liabilities | ||
Accounts payable, accrued expenses and other | 158,936 | 104,600 |
Accrued compensation | 416,903 | 333,536 |
Billings in excess of services provided | 36,698 | 44,434 |
Total current liabilities | 612,537 | 482,570 |
Long-term debt, net | 275,609 | 265,571 |
Noncurrent operating lease liabilities | 176,378 | |
Deferred income taxes | 151,352 | 155,088 |
Other liabilities | 78,124 | 127,067 |
Total liabilities | 1,294,000 | 1,030,296 |
Commitments and contingent liabilities (Note 15) | ||
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 — 37,390 (2019) and 38,147 (2018) | 374 | 381 |
Additional paid-in capital | 216,162 | 299,534 |
Retained earnings | 1,413,453 | 1,196,727 |
Accumulated other comprehensive loss | (140,847) | (147,817) |
Total stockholders' equity | 1,489,142 | 1,348,825 |
Total liabilities and stockholders' equity | $ 2,783,142 | $ 2,379,121 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 37,390,000 | 38,147,000 |
Common stock, shares outstanding (in shares) | 37,390,000 | 38,147,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 2,352,717,000 | $ 2,027,877,000 | $ 1,807,732,000 |
Operating expenses | |||
Direct cost of revenues | 1,534,896,000 | 1,328,074,000 | 1,215,560,000 |
Selling, general and administrative expenses | 504,074,000 | 465,636,000 | 432,013,000 |
Special charges | 0 | 0 | 40,885,000 |
Amortization of other intangible assets | 8,152,000 | 8,162,000 | 10,563,000 |
Costs and Expenses | 2,047,122,000 | 1,801,872,000 | 1,699,021,000 |
Operating income | 305,595,000 | 226,005,000 | 108,711,000 |
Other income (expense) | |||
Interest income and other | 2,061,000 | 4,977,000 | 3,752,000 |
Interest expense | (19,206,000) | (27,149,000) | (25,358,000) |
Gain on sale of business | 0 | 13,031,000 | 0 |
Loss on early extinguishment of debt | 0 | (9,072,000) | 0 |
Other income (expense) | (17,145,000) | (18,213,000) | (21,606,000) |
Income before income tax provision | 288,450,000 | 207,792,000 | 87,105,000 |
Income tax provision | 71,724,000 | 57,181,000 | (20,857,000) |
Net income | $ 216,726,000 | $ 150,611,000 | $ 107,962,000 |
Earnings per common share — basic (in dollars per share) | $ 5.89 | $ 4.06 | $ 2.79 |
Earnings per common share — diluted (in dollars per share) | $ 5.69 | $ 3.93 | $ 2.75 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments, net of tax expense of $—, $373 and $— | $ 6,970,000 | $ (27,602,000) | $ 30,664,000 |
Other comprehensive income (loss), net of tax | 6,970,000 | (27,602,000) | 30,664,000 |
Comprehensive income | $ 223,696,000 | $ 123,009,000 | $ 138,626,000 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Foreign currency translation adjustments, tax expense | $ 0 | $ 373 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2016 | 42,037 | ||||
Beginning Balance at Dec. 31, 2016 | $ 1,207,358 | $ 420 | $ 416,816 | $ 941,001 | $ (150,879) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 107,962 | 107,962 | |||
Other comprehensive income: | |||||
Cumulative translation adjustment | 30,664 | 30,664 | |||
Issuance of common stock in connection with: | |||||
Exercise of options (in shares) | 123 | ||||
Exercise of options | 4,133 | $ 1 | 4,132 | ||
Restricted share grants (in shares) | 243 | ||||
Restricted share grants | (4,440) | $ 2 | (4,442) | ||
Stock units issued under incentive compensation plan | 1,547 | 1,547 | |||
Purchase and retirement of common stock (in shares) | (4,674) | ||||
Purchase and retirement of common stock | (168,094) | $ (46) | (168,048) | ||
Cumulative effect due to adoption of new accounting standard | (3,189) | 0 | (3,189) | ||
Share-based compensation | 16,030 | 16,030 | |||
Ending Balance (in shares) at Dec. 31, 2017 | 37,729 | ||||
Ending 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 | 150,611 | 150,611 | |||
Other comprehensive income: | |||||
Cumulative translation adjustment | (27,602) | (27,602) | |||
Issuance of common stock in connection with: | |||||
Exercise of options (in shares) | 1,051 | ||||
Exercise of options | 41,568 | $ 11 | 41,557 | ||
Restricted share grants (in shares) | 319 | ||||
Restricted share grants | (3,094) | $ 3 | (3,097) | ||
Stock units issued under incentive compensation plan | 1,059 | 1,059 | |||
Purchase and retirement of common stock (in shares) | (952) | ||||
Purchase and retirement of common stock | (55,738) | $ (10) | (55,728) | ||
Cumulative effect due to adoption of new accounting standard | 342 | 342 | |||
Conversion feature of convertible senior notes, due 2023, net | 34,131 | 34,131 | |||
Share-based compensation | $ 15,577 | 15,577 | |||
Ending Balance (in shares) at Dec. 31, 2018 | 38,147 | 38,147 | |||
Ending Balance at Dec. 31, 2018 | $ 1,348,825 | $ 381 | 299,534 | 1,196,727 | (147,817) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 216,726 | 216,726 | |||
Other comprehensive income: | |||||
Cumulative translation adjustment | $ 6,970 | 6,970 | |||
Issuance of common stock in connection with: | |||||
Exercise of options (in shares) | 256 | 256 | |||
Exercise of options | $ 9,688 | $ 3 | 9,685 | ||
Restricted share grants (in shares) | 245 | ||||
Restricted share grants | (6,517) | $ 3 | (6,520) | ||
Stock units issued under incentive compensation plan | 1,413 | 1,413 | |||
Purchase and retirement of common stock (in shares) | (1,258) | ||||
Purchase and retirement of common stock | (105,941) | $ (13) | (105,928) | ||
Share-based compensation | $ 17,978 | 17,978 | |||
Ending Balance (in shares) at Dec. 31, 2019 | 37,390 | 37,390 | |||
Ending Balance at Dec. 31, 2019 | $ 1,489,142 | $ 374 | $ 216,162 | $ 1,413,453 | $ (140,847) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Restricted share grants, settled (in shares) | 78 | 58 | 92 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net income | $ 216,726 | $ 150,611 | $ 107,962 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 30,153 | 31,536 | 31,177 |
Amortization and impairment of other intangible assets | 8,152 | 8,162 | 10,563 |
Acquisition-related contingent consideration | 2,372 | 479 | 2,291 |
Provision for doubtful accounts | 19,602 | 17,872 | 15,386 |
Share-based compensation | 17,978 | 15,577 | 16,030 |
Amortization of debt discount and issuance costs | 11,615 | 5,456 | 1,984 |
Loss on early extinguishment of debt | 0 | 9,072 | 0 |
Gain on sale of business | 0 | (13,031) | 0 |
Deferred income taxes | (3,712) | 20,831 | (51,579) |
Other | 302 | 769 | 611 |
Changes in operating assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable, billed and unbilled | (141,894) | (72,034) | (50,831) |
Notes receivable | 10,445 | 8,987 | 14,928 |
Prepaid expenses and other assets | (22,648) | (2,258) | 629 |
Accounts payable, accrued expenses and other | (8,907) | 8,908 | 4,421 |
Income taxes | 24,496 | (8,890) | 25,811 |
Accrued compensation | 61,339 | 52,510 | 1,795 |
Billings in excess of services provided | (8,133) | (3,885) | 16,447 |
Net cash provided by operating activities | 217,886 | 230,672 | 147,625 |
Investing activities | |||
Proceeds from sale of business | 0 | 50,283 | 0 |
Payments for acquisition of businesses, net of cash received | (18,791) | 0 | (8,929) |
Purchases of property and equipment | (42,072) | (32,270) | (32,004) |
Other | 257 | 731 | 295 |
Net cash provided by (used in) investing activities | (60,606) | 18,744 | (40,638) |
Financing activities | |||
Borrowings under revolving line of credit | 45,000 | 233,500 | 422,000 |
Repayments under revolving line of credit | (45,000) | (333,500) | (392,000) |
Proceeds from issuance of convertible notes | 0 | 316,250 | 0 |
Payments of long-term debt | 0 | (300,000) | 0 |
Payments of debt issue and debt prepayment costs | 0 | (16,149) | 0 |
Purchase and retirement of common stock | (105,797) | (55,738) | (168,094) |
Net issuance of common stock under equity compensation plans | 3,171 | 38,475 | (504) |
Payments for business acquisition liabilities | (2,282) | (3,029) | (5,161) |
Deposits and other | 1,597 | 2,672 | 2,825 |
Net cash used in financing activities | (103,311) | (117,519) | (140,934) |
Effect of exchange rate changes on cash and cash equivalents | 3,335 | (9,789) | 7,750 |
Net increase (decrease) in cash and cash equivalents | 57,304 | 122,108 | (26,197) |
Cash and cash equivalents, beginning of period | 312,069 | 189,961 | 216,158 |
Cash and cash equivalents, end of period | 369,373 | 312,069 | 189,961 |
Supplemental cash flow disclosures | |||
Cash paid for interest | 7,606 | 21,687 | 23,285 |
Cash paid for income taxes, net of refunds | 50,941 | 45,568 | 4,929 |
Non-cash investing and financing activities: | |||
Issuance of stock units under incentive compensation plans | 1,413 | 1,059 | 1,547 |
Business acquisition liabilities not yet paid | $ 9,746 | $ 0 | $ 3,426 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business FTI Consulting, Inc., including its consolidated subsidiaries (collectively, the “Company,” “we,” “our” or “FTI Consulting”), is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political and regulatory, reputational and transactional. Individually, each of our segments and practices is staffed with experts recognized for the depth of their knowledge and a track record of making an impact. Collectively, FTI Consulting offers a comprehensive suite of services designed to assist clients across the business cycle, from proactive risk management to rapid response to unexpected events and dynamic environments. We operate through five reportable segments: Corporate Finance & Restructuring (“Corporate Finance”), Forensic and Litigation Consulting (“FLC”), Economic Consulting, Technology and Strategic Communications. Accounting Principles Our financial statements are prepared in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of FTI Consulting and all of our subsidiaries. All intercompany transactions and balances have been eliminated. Reclassifications of certain prior period amounts have been made to conform to the current period presentation. Foreign Currency Results of operations for our non-U.S. subsidiaries are translated from the designated functional currency to the reporting currency of the U.S. dollar ("USD"). Revenues and expenses are translated at average exchange rates for each month, while assets and liabilities are translated at balance sheet date exchange rates. Resulting net translation adjustments are recorded as a component of stockholders’ equity in “Accumulated other comprehensive income (loss).” Transaction gains and losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in “Interest income and other” on the Consolidated Statements of Comprehensive Income. Such transaction gains and losses may be realized or unrealized depending upon whether the transaction settled during the period or remains outstanding at the balance sheet date. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Due to the inherent uncertainty involved in making those assumptions, actual results could differ from those estimates. Our most significant estimates relate to the determination of the allowance for doubtful accounts and unbilled services, the assessment of the recoverability of goodwill, the realization of deferred tax assets and the fair value of acquisition-related contingent consideration. Management bases its estimates on historical trends, current experience and other assumptions that it believes are reasonable. Concentrations of Risk We do not have a single customer that represents 10% or more of our consolidated revenues. We derive the majority of our revenues from providing professional services to clients in the U.S. For the year ended December 31, 2019 , we derived approximately 34% of our consolidated revenues from the work of professionals who are assigned to locations outside the U.S. We believe that the geographic and industry diversity of our customer base throughout the U.S. and internationally minimizes the risk of incurring material losses due to concentrations of credit risk. Revenue Recognition Revenues are recognized when we satisfy a performance obligation by transferring services promised in a contract to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those services. Performance obligations in our contracts represent distinct or separate services that we provide to our customers. We evaluate our revenue contracts with customers based on the five-step model under Revenue from Contracts with Customers : (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 revenues 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 (i.e., 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. In such cases, 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. We recognize revenues earned to date by applying the proportional performance method. 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. 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 with 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. Direct Cost of Revenues Direct cost of revenues consists primarily of billable employee compensation and related payroll benefits, the cost of contractors assigned to revenue-generating activities and direct expenses billable to clients. Direct cost of revenues also includes expense for cloud-based computing, as well as depreciation expense on the software used to host and process client information. Direct cost of revenues does not include an allocation of corporate overhead and non-billable segment costs. Share-Based Compensation Share-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as expense over the requisite service period or performance period of the award. The amount of share-based compensation expense recognized at any date must at least equal the portion of grant date value of the award that is vested at that date. The fair value of restricted share awards and restricted stock units is measured based on the closing price of the underlying stock on the date of grant. The fair value of performance share units that contain market-based vesting conditions is measured using a Monte Carlo pricing model. The compensation cost of performance stock units with market-based vesting conditions is based on the grant date fair value and is not subsequently reversed if it is later determined that the market condition is unlikely to be met or is expected to be lower than originally expected. For performance share units that contain performance-based vesting conditions, the compensation cost is adjusted each reporting period based on the probability of the awards vesting. We use the Black-Scholes pricing model to determine the fair value of stock options on the date of grant. The Black-Scholes pricing model requires the development of assumptions, including volatility and expected term, which are based on our historical experience. The risk-free interest rate is based on the term of U.S. Treasury interest rates that is consistent with the expected term of the share-based award. For all our share-based awards, we recognize forfeitures in compensation cost when they occur. Advertising Costs Advertising costs consist of marketing, advertising through print and other media, professional event sponsorship and public relations. These costs are expensed as incurred. Advertising costs totaled $18.6 million , $15.5 million and $14.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, and are included in “Selling, general and administrative expenses” on the Consolidated Statements of Comprehensive Income. Acquisition-Related Contingent Consideration The fair value of acquisition-related contingent consideration is estimated at the acquisition date utilizing either a probability weighted estimate of future cash flow adjusted for the expected timing of each payment or a Monte Carlo simulation. Subsequent to the acquisition date, on a quarterly basis, the contingent consideration liability is remeasured at current fair value with any changes recorded in earnings. Accretion expense is recorded to acquisition-related contingent consideration liabilities for changes in fair value due to the passage of time. Remeasurement gains or losses and accretion expense are included in “Selling, general and administrative expenses” on the Consolidated Statements of Comprehensive Income. Income Taxes Our income tax provision (benefit) consists principally of U.S. federal, state and international income taxes. We generate income in a significant number of states located throughout the U.S., as well as foreign countries in which we conduct business. Our effective income tax rate may fluctuate due to a change in the mix of earnings between higher and lower state or country tax jurisdictions and the impact of non-deductible expenses. Additionally, we record deferred tax assets and liabilities using the asset and liability method of accounting, which requires us to measure these assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In evaluating our ability to recover our deferred tax assets, we consider all available positive and negative evidence, including scheduled reversals of temporary differences, projected future taxable income, tax planning strategies and recent results of operations. Cash Equivalents Cash equivalents consist of money market funds, commercial paper and certificates of deposit with maturities of three months or less at the time of purchase. Allowance for Doubtful Accounts and Unbilled Services We maintain an allowance for doubtful accounts and unbilled services for estimated losses resulting from potential fee reductions negotiated with specific clients or imposed by bankruptcy courts or other regulatory agencies and the inability of specific clients to pay our fees, as well as from disputes that affect our ability to fully collect our billed accounts receivable. Even if a bankruptcy court approves our services, the court has the discretion to require us to refund all or a portion of our fees due to the outcome of the case or a variety of other factors. We estimate the allowance for all receivable risks by reviewing the status of each matter and recording reserves based on our experience and knowledge of specific client collections and the Company's historical collection patterns for similar client collections. However, our actual experience may vary significantly from our estimates. If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay our fees, or bankruptcy courts require us to refund certain fees, we may need to record additional allowances or write-offs in future periods. This risk related to a client’s non-payment may be mitigated to the extent that we receive a retainer from some of our clients prior to performing services. 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 that may be 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 Consolidated Statements of Comprehensive Income. Our bad debt expense totaled $19.6 million , $17.9 million and $15.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Property and Equipment We record property and equipment, including improvements that extend useful lives, at cost, while maintenance and repairs are expensed as incurred. We calculate depreciation using the straight-line method based on estimated useful lives ranging from three years to seven years for furniture, equipment and software. We amortize leasehold improvements over the shorter of the estimated useful life of the asset or the lease term. We capitalize costs incurred during the application development stage of computer software developed or obtained for internal use. Capitalized software developed for internal use is classified within furniture, equipment and software and is amortized over the estimated useful life of the software, which is generally three years . Purchased software licenses to be sold to customers are capitalized and amortized over the license term. Notes Receivable from Employees Notes receivable from employees principally include unsecured general recourse forgivable loans and retention payments, which are provided to attract and retain certain of our senior employees and other professionals. Generally, all of the principal amount and accrued interest of the forgivable loans we make to employees and other professionals will be forgiven according to the stated terms of the loan agreement, provided that the professional is providing services to the Company on the forgiveness date and upon other specified events, such as death or disability. Professionals who terminate their employment or services with us prior to the end of the forgiveness period are required to repay the outstanding, unforgiven loan balance and any accrued but unforgiven interest. If the termination was by the Company without cause or by the employee with good reason, or, subject to certain conditions, if the employee terminates his or her employment due to retirement or non-renewal of his or her employment agreement, the loan may be forgiven or continue to be forgivable, in whole or in part. We amortize forgivable loans ratably over the requisite service period, which ranges from a period of one year to 10 years . The amount of expense recognized at any date must at least equal to the portion of the principal forgiven on the forgiveness date. Goodwill and Other Intangible Assets Goodwill represents the purchase price of acquired businesses in excess of the fair market value of net assets acquired at the date of acquisition. Other intangible assets may include customer relationships, trademarks and acquired software. We test our goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter or whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. On a quarterly basis, we monitor the key drivers of fair value to detect events or other changes that would warrant an interim impairment test. Important factors we consider that could trigger an interim impairment review include, but are not limited to, the following: • significant underperformance relative to expected historical or projected future operating results; • a significant change in the manner of our use of the acquired asset or the strategy for our overall business; • a significant market decline related to negative industry or economic trends; and/or • our market capitalization relative to net carrying value. We assess our goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or a business one level below that operating segment if discrete financial information is available and regularly reviewed by the chief operating decision makers. Entities have an option, under certain circumstances, to perform a qualitative assessment regarding the reporting unit’s fair value to determine whether it is necessary to perform the quantitative impairment test. In the qualitative assessment, we consider various factors, events or circumstances, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and other relevant reporting unit specific events. If, based on the qualitative assessment, an entity determines that it is not “more likely than not” that the fair value of a reporting unit is less than its carrying value, we do not prepare a quantitative impairment test. If we determine otherwise, we will prepare a quantitative assessment for potential goodwill impairment. In the quantitative assessment, we compare the estimated fair value of the reporting unit with the carrying amount of that reporting unit. We estimate fair value using a combination of an income approach (based on discounted cash flows) and market approaches, using appropriate weighting factors. If the fair value exceeds the carrying amount, goodwill is not impaired. However, if the carrying value exceeds the fair value of the reporting unit, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. We determine whether to perform a qualitative assessment first or to bypass the qualitative assessment and proceed with the quantitative goodwill impairment test for each of our reporting units based on the excess of fair value over carrying value from the most recent quantitative tests and other events or changes in circumstances that could impact the fair value of the reporting units. Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. We amortize our acquired finite-lived intangible assets on a straight-line basis over periods ranging from three to 15 years . Impairment of Long-Lived Assets We review long-lived assets such as property and equipment, operating lease assets and finite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability of assets to be held and used by a comparison of the carrying value of the assets with future undiscounted net cash flows expected to be generated by the assets. We group assets at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset group, we estimate the fair value of the asset group to determine whether an impairment loss should be recognized. Leases As of January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases , which was amended in some respects by subsequent ASUs (collectively Accounting Standards Codification (“ASC") 842 ("ASC 842")) and supersedes existing lease guidance. The standard requires us to record operating lease assets and corresponding lease liabilities on the balance sheet and disclose key quantitative and qualitative information about our lease contracts. Under ASC 842, we determine if a contract is a leasing arrangement at inception. Operating lease assets represent our right to control the use of an identified asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use the incremental borrowing rate on the commencement date in determining the present value of our lease payments. We recognize operating lease expense for our operating leases on a straight-line basis over the lease term. We lease office space and equipment under non-cancelable operating leases which may include renewal or termination options that are reasonably certain of exercise. Most leases include one or more options to renew, with renewal terms that can extend the lease term up to seven years . Leases with an initial term of 12 months or less are not recorded on the balance sheet and are expensed on a straight-line basis. Lease and non-lease components are accounted for together as a single lease component for operating leases associated with our office space and our equipment leases. We apply a portfolio approach for certain equipment leases to effectively account for the operating lease assets and liabilities. Billings in Excess of Services Provided Billings in excess of services provided represent amounts billed to clients, such as retainers, in advance of work being performed. Clients may make advance payments, which are held on deposit until completion of work or are applied at predetermined amounts or times. Excess payments are either applied to final billings or refunded to clients upon completion of work. Payments in excess of related accounts receivable and unbilled receivables are recorded as billings in excess of services provided within the liabilities section of the Consolidated Balance Sheets. Convertible Notes On August 20, 2018, we issued 2.0% convertible senior notes due 2023 ("2023 Convertible Notes") with an aggregate principal amount of $316.3 million , payable semiannually in arrears on February 15 and August 15 of each year, beginning on February 15, 2019. The 2023 Convertible Notes will mature on August 15, 2023, unless earlier converted or repurchased. Upon conversion, the 2023 Convertible Notes may be settled, at our election in cash, shares of our common stock, or a combination of cash and shares of our common stock. We separately recorded the liability and equity components of the 2023 Convertible Notes. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2023 Convertible Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the 2023 Convertible Notes using the effective interest rate method. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Recently 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, "Description of Business and Summary of Significant Accounting Policies" for a description of the significant accounting policies and methods used in preparation of the Consolidated Financial Statements. See Note 4, “Revenues” for the disclosures required under ASC 606. The adoption of ASC 606 had an immaterial impact on our Consolidated Statements of Comprehensive Income and Consolidated Balance Sheets and had no impact on our Consolidated Statements of Cash Flows. In February 2016, the FASB issued ASU 2016-02, Leases , which was amended in some respects by subsequent ASUs. We adopted ASC 842 using the modified retrospective basis for reporting. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward the historical lease classification for existing leases on the adoption date, and allowed us not to reassess whether an existing contract contains a lease or initial direct costs. As permitted by the guidance, prior comparative periods will not be adjusted under this method. See Note 1, "Description of Business and Summary of Significant Accounting Policies" for a description of the significant accounting policies for our operating leases. See Note 14, "Leases" for the disclosures required under ASC 842. The adoption of this standard resulted in recognition of operating lease assets in the amount of $148.5 million and lease liabilities in the amount of $206.7 million for operating leases on our Consolidated Balance Sheets as of January 1, 2019. Our existing deferred rent and cease-use liabilities were $62.3 million as of December 31, 2018 and were included as a reduction to the initial measurement of our operating lease assets. Our existing prepaid rent balance was $4.1 million as of December 31, 2018 and was included as a reduction to the initial measurement of our operating lease liabilities. There was no material impact on the Consolidated Statements of Comprehensive Income, Consolidated Statements of Stockholders’ Equity or Consolidated Statements of Cash Flows. In August 2018, the FASB issued ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The guidance promotes a framework to help improve the effectiveness of disclosures in the notes to the financial statements and is effective for annual and interim periods beginning after December 15, 2019. We elected, as permitted by the standard, to early adopt ASU 2018-13 as of December 31, 2019 and have prospectively applied the modifications which are limited to presentation and disclosure changes that did not have a material impact on the consolidated financial statements. Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires the Company to capitalize implementation costs of a hosting arrangement that is a service contract and expense those costs over the term of the hosting arrangement. The guidance is effective for annual and interim periods beginning after December 15, 2019 although early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share adjusts basic earnings 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 restricted shares and stock options, each using the treasury stock method. Because we expect to settle the principal amount of the outstanding 2023 Convertible Notes in cash, we use the treasury stock method for calculating the potential dilutive effect of the conversion feature on earnings per common share, if applicable. The conversion feature had a dilutive impact on earnings per common share for the year ended December 31, 2019 , as the average market price per share of our common stock for the period exceeded the conversion price of $101.38 per share. See Note 13, "Debt" for additional information about the 2023 Convertible Notes. Year Ended December 31, 2019 2018 2017 Numerator — basic and diluted Net income $ 216,726 $ 150,611 $ 107,962 Denominator Weighted average number of common shares outstanding — basic 36,774 37,098 38,697 Effect of dilutive convertible notes 62 — — Effect of dilutive stock options 455 491 117 Effect of dilutive restricted shares 820 729 378 Weighted average number of common shares outstanding — diluted 38,111 38,318 39,192 Earnings per common share — basic $ 5.89 $ 4.06 $ 2.79 Earnings per common share — diluted $ 5.69 $ 3.93 $ 2.75 Antidilutive stock options and restricted shares 19 175 1,561 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues 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. • 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. We recognize revenues earned to date by applying the proportional performance method. Revenues are recognized when we satisfy a performance obligation by transferring services promised in a contract to a customer and in an amount that reflects the consideration that we expect to receive in exchange for those services. Performance obligations in our contracts represent distinct or separate services that we provide to our customers. Revenues recognized during the current period may include revenues from performance obligations satisfied or partially satisfied in previous periods. This primarily occurs when the estimated transaction price has changed based on our current probability assessment over whether the agreed-upon outcome for our performance-based and contingent arrangements will be achieved. The aggregate amount of revenues recognized related to a change in the transaction price in the current period, which related to performance obligations satisfied or partially satisfied in a prior period, was $28.9 million and $16.1 million for the years ended December 31, 2019 and 2018 , respectively. Unfulfilled performance obligations represent the remaining contract transaction prices allocated to the performance obligations that are unsatisfied. Unfulfilled performance obligations primarily consist of fees not yet recognized on a proportional performance basis for fixed-fee arrangements and performance-based and contingent arrangements. As of December 31, 2019 and December 31, 2018 , the aggregate amount of the remaining contract transaction price allocated to unfulfilled performance obligations was $2.3 million and $8.8 million , respectively, and we expect to recognize the majority of the related revenues over the next 24 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 but 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 $1.3 million and $2.4 million as of December 31, 2019 and 2018 , respectively. Contract liabilities are defined as liabilities incurred when we have received consideration but have not yet performed the agreed-upon services. This may occur when clients pay us upfront fees before we begin work for them. The contract liability balance was immaterial as of December 31, 2019 and 2018 |
Special Charges
Special Charges | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Special Charges | Special Charges There were no special charges recorded during the years ended December 31, 2019 and December 31, 2018 . During the year ended December 31, 2017 , we recorded special charges of $40.9 million . The charges related to certain targeted reductions in areas of each segment where we needed to realign our workforce with then-current business demand. In addition, cost-cutting actions were taken in certain corporate departments where we were able to streamline support activities and reduce our real estate costs. The special charge included the following components: • $23.5 million of employee severance and other employee-related costs; • $14.4 million of exit costs associated with the curtailment of our lease on our executive office in Washington, D.C.; and • $3.0 million of other expenses, including costs related to disposing or closing several small international offices. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-Based Incentive Compensation Plans Under the Company's 2017 Omnibus Incentive Compensation Plan, effective as of June 7, 2017, there were 1,396,183 shares of common stock available for grant as of December 31, 2019 . Share-Based Compensation Expense The table below reflects the total share-based compensation expense recognized in our Consolidated Statements of Comprehensive Income for the years ended December 31, 2019 , 2018 and 2017 . 2019 2018 2017 Restricted Restricted Restricted Income Statement Classification Options (1) Shares (2) Options (1) Shares (2) Options (1) Shares (2) Direct cost of revenues $ 497 $ 11,869 $ 780 $ 9,804 $ 370 $ 9,691 Selling, general and administrative expenses 2,628 9,005 2,027 8,191 1,207 4,870 Special charges — — — — — 269 Total $ 3,125 $ 20,874 $ 2,807 $ 17,995 $ 1,577 $ 14,830 (1) Includes options and cash-settled stock appreciation rights. (2) Includes restricted share awards, restricted stock units, performance stock units and cash-settled restricted stock units. Stock Options We did no t grant any options during the years ended December 31, 2019 and 2018 . We used the Black-Scholes option-pricing model to determine the fair value of our option grants during the year ended December 31, 2017 using the assumptions in the table below. Year Ended December 31, Assumptions 2017 Risk-free interest rate 1.60% Dividend yield —% Expected term 3 years Stock price volatility 31.94% A summary of our stock option activity during the year ended December 31, 2019 is presented below. The aggregate intrinsic value of stock options outstanding and exercisable, or fully vested, at December 31, 2019 in the table below represents the total pre-tax intrinsic value, which is calculated as the difference between the closing price of our common stock on the last trading day of 2019 and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their options on December 31, 2019 . The aggregate intrinsic value changes based on fluctuations in the fair market value per share of our common stock. Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Stock options outstanding at December 31, 2018 935 $ 36.50 Stock options granted — N/A Stock options exercised (256 ) $ 37.88 Stock options forfeited (1 ) $ 30.28 Stock options outstanding at December 31, 2019 678 $ 35.98 4.7 $ 50,669 Stock options exercisable at December 31, 2019 605 $ 35.75 4.6 $ 45,343 Cash received from option exercises for the years ended December 31, 2019 , 2018 and 2017 was $9.7 million , $41.6 million and $4.1 million , respectively. The tax benefit realized from stock options exercised totaled $0.7 million , $4.0 million and $1.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The intrinsic value of stock options exercised is the amount by which the market value of our common stock on the exercise date exceeds the exercise price. The total intrinsic value of stock options exercised for the years ended December 31, 2019 , 2018 and 2017 was $13.2 million , $26.4 million and $0.9 million , respectively. The following is a summary of stock options outstanding and exercisable as of December 31, 2019 . Options Outstanding Options Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Weighted Average Exercise Price Exercise Price Range Options Shares $26.68-$33.95 137 $ 31.46 3.7 124 $ 31.53 $34.33-$34.62 138 $ 34.40 5.4 138 $ 34.40 $35.73-$36.87 195 $ 36.67 4.4 188 $ 36.68 $36.89-$40.36 202 $ 39.28 5.4 149 $ 39.12 $41.69-$41.69 6 $ 41.69 0.3 6 $ 41.69 678 605 As of December 31, 2019 , there was $0.1 million of unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized ratably over a weighted average period of 0.2 years . Restricted Share Awards A summary of our restricted share activity during the year ended December 31, 2019 is presented below. Shares Weighted Average Grant Date Fair Value Unvested restricted share awards outstanding at December 31, 2018 992 $ 43.76 Restricted share awards granted 222 $ 81.64 Restricted share awards vested (229 ) $ 43.04 Restricted share awards forfeited (28 ) $ 38.87 Unvested restricted share awards outstanding at December 31, 2019 957 $ 52.86 As of December 31, 2019 , there was $27.5 million of unrecognized compensation cost related to unvested restricted share awards. That cost is expected to be recognized ratably over a weighted average period of 4.0 years . The total fair value of restricted share awards that vested during the years ended December 31, 2019 , 2018 and 2017 was $18.6 million , $10.4 million and $9.9 million , respectively. Restricted Stock Units A summary of our restricted stock units activity during the year ended December 31, 2019 is presented below. Shares Weighted Average Grant Date Fair Value Restricted stock units outstanding at December 31, 2018 335 $ 39.72 Restricted stock units granted 30 $ 82.39 Restricted stock units released (52 ) $ 42.15 Restricted stock units forfeited — N/A Restricted stock units outstanding at December 31, 2019 313 $ 43.45 As of December 31, 2019 , there was $0.8 million of unrecognized compensation cost related to unvested restricted stock units. That cost is expected to be recognized ratably over a weighted average period of 2.8 years . The total fair value of restricted stock units released for the years ended December 31, 2019 , 2018 and 2017 was $4.5 million , $5.4 million and $4.1 million , respectively. Performance Stock Units Performance stock units represent common stock potentially issuable in the future, subject to achievement of either market or performance conditions. Our current outstanding performance stock units that are subject to market conditions vest based on the adjusted total shareholder return of the Company as compared with the adjusted total shareholder return of the Standard & Poor’s 500 Index over the applicable performance period. Our current outstanding performance stock units that are subject to performance conditions vest based on Adjusted EBITDA metrics over the applicable performance period. The vesting and payout for all of our performance stock units typically range between 0% and up to 150% of the target number of shares granted at the end of a two- or three-year performance period. A summary of our performance stock units activity during the year ended December 31, 2019 is presented below. Shares Weighted Average Grant Date Fair Value Performance stock units outstanding at December 31, 2018 275 $ 42.60 Performance stock units granted (1) 170 $ 77.67 Performance stock units released (84 ) $ 35.75 Performance stock units forfeited — N/A Performance stock units outstanding at December 31, 2019 361 $ 60.67 (1) Performance stock units granted are presented at the maximum potential payout percentage of 150% of target shares granted. As of December 31, 2019 , there was $6.3 million of unrecognized compensation cost related to unvested performance stock units. That cost is expected to be recognized ratably over a weighted average period of 1.1 years . The total fair value of performance stock units that released during the years ended December 31, 2019 and 2018 was $5.8 million and $1.4 million , respectively. There were no performance stock units that released during the year ended December 31, 2017 . The table below reflects the weighted average grant date fair value per share of stock options, restricted share awards, restricted stock units and performance stock units awarded during the years ended December 31, 2019 , 2018 and 2017 . The fair value of our stock options is calculated using the Black-Scholes option-pricing model. The fair value of our restricted stock awards, restricted stock units and our performance stock units that are subject to performance conditions is determined based on the closing market price per share of our common stock on the grant date. The fair value of our performance stock units that are subject to market conditions reflects the market conditions as of the grant date using a Monte Carlo simulation. Year Ended December 31, 2019 2018 2017 Weighted average fair value of grants Stock options $ — $ — $ 9.56 Restricted share awards, restricted stock units and performance stock units $ 80.10 $ 51.73 $ 38.88 |
Interest Income and Other
Interest Income and Other | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Interest Income and Other | Interest Income and Other The table below presents the components of “Interest income and other” as shown on the Consolidated Statements of Comprehensive Income. Year Ended December 31, Interest Income and Other 2019 2018 2017 Interest income $ 4,761 $ 5,448 $ 3,968 Foreign exchange transaction gains (losses), net (3,056 ) 261 (77 ) Other 356 (732 ) (139 ) Total $ 2,061 $ 4,977 $ 3,752 |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details December 31, 2019 2018 Prepaid expenses and other current assets Prepaid expenses $ 39,740 $ 35,762 Income tax receivable 8,161 18,947 Other current assets 32,909 14,739 Total $ 80,810 $ 69,448 Accounts payable, accrued expenses and other Accounts payable $ 18,346 $ 17,728 Accrued expenses 46,511 52,461 Accrued interest payable 2,243 2,358 Accrued taxes payable 35,895 13,119 Current operating lease liabilities 35,727 — Other current liabilities 20,214 18,934 Total $ 158,936 $ 104,600 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following. December 31, 2019 2018 Leasehold improvements $ 99,837 $ 88,623 Construction in progress 4,359 2,754 Furniture and equipment 36,698 34,865 Computer equipment and software 119,904 106,318 260,798 232,560 Accumulated depreciation (167,126 ) (147,983 ) Property and equipment, net $ 93,672 $ 84,577 Depreciation expense for property and equipment totaled $30.1 million , $26.2 million and $24.4 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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 FLC 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 Sale of business (1) — — — (20,928 ) — (20,928 ) Foreign currency translation adjustment and other (3,819 ) (2,182 ) (448 ) (89 ) (5,021 ) (11,559 ) Balance at December 31, 2018 Goodwill 450,997 231,537 268,547 96,723 318,651 1,366,455 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2018 450,997 231,537 268,547 96,723 124,512 1,172,316 Acquisitions (2) 27,389 — — — — 27,389 Foreign currency translation adjustment and other 456 583 130 47 1,846 3,062 Balance at December 31, 2019 Goodwill 478,842 232,120 268,677 96,770 320,497 1,396,906 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2019 $ 478,842 $ 232,120 $ 268,677 $ 96,770 $ 126,358 $ 1,202,767 (1) During the year ended December 31, 2018, we sold a business within our Technology segment for proceeds of $50.3 million . We wrote off $20.9 million in goodwill as a result of the sale. (2) During the year ended December 31, 2019 , we acquired a restructuring business that was assigned to the Corporate Finance segment. We recorded $27.4 million in goodwill based on a preliminary purchase price allocation as a result of the acquisition. We have included the results of the acquired business’s operations in the Corporate Finance segment since its acquisition date. Other Intangible Assets Other intangible assets were as follows: December 31, 2019 December 31, 2018 Weighted Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets Customer relationships (1) 14.2 $ 99,613 $ 76,808 $ 22,805 $ 99,080 $ 71,036 $ 28,044 Trademarks (1) 6.0 9,855 653 9,202 — — — Acquired software and other (1) 9.1 3,386 2,061 1,325 3,107 1,618 1,489 13.4 112,854 79,522 33,332 102,187 72,654 29,533 Non-amortizing intangible assets Trademarks Indefinite 5,100 — 5,100 5,100 — 5,100 Total $ 117,954 $ 79,522 $ 38,432 $ 107,287 $ 72,654 $ 34,633 (1) During the year ended December 31, 2019 , we acquired a restructuring business and its related intangible assets that were assigned to the Corporate Finance segment. Other intangible assets with finite lives are amortized over their estimated useful lives. We recorded amortization expense of $8.2 million , $8.2 million and $10.6 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. We estimate our future amortization expense for our intangible assets with a finite life to be as follows: As of December 31, 2019 (1) Year 2020 $ 9,393 2021 8,861 2022 7,028 2023 3,604 2024 2,207 Thereafter 2,239 $ 33,332 (1) Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, changes in useful lives, or other relevant factors or changes. |
Notes Receivable from Employees
Notes Receivable from Employees | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Notes Receivable from Employees | Notes Receivable from Employees The table below summarizes the changes in the carrying amount of our notes receivable from employees. December 31, 2019 2018 Notes receivable from employees — beginning $ 113,699 $ 123,796 Notes granted 28,879 32,937 Repayments (13,179 ) (5,405 ) Amortization (26,294 ) (36,418 ) Cumulative translation adjustment and other 1,034 (1,211 ) Notes receivable from employees — ending 104,139 113,699 Less: current portion (35,106 ) (29,228 ) Notes receivable from employees, net of current portion $ 69,033 $ 84,471 As of December 31, 2019 and 2018 , there were 303 and 294 notes outstanding, respectively. Total amortization expense for the years ended December 31, 2019 , 2018 and 2017 was $26.3 million , $36.4 million and $26.8 million , respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The following table presents the carrying amounts and estimated fair values of our other financial instruments by hierarchy level as of December 31, 2019 and 2018 . December 31, 2019 Hierarchy Level (Fair Value) Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) (2) $ 14,826 $ — $ — $ 14,826 Long-term debt (3) 275,609 — 398,016 — Total $ 290,435 $ — $ 398,016 $ 14,826 December 31, 2018 Hierarchy Level (Fair Value) Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 3,698 $ — $ — $ 3,698 Long-term debt (3) 265,571 — 291,837 — Total $ 269,269 $ — $ 291,837 $ 3,698 (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 Consolidated Balance Sheets. (2) During the year ended December 31, 2019 , we acquired a restructuring business that was assigned to the Corporate Finance segment. (3) The carrying values include unamortized deferred debt issue costs and debt discount. The fair value of financial instruments not included in this table are estimated to be equal to their carrying value as of December 31, 2019 and 2018 . We estimate the fair value of our 2023 Convertible Notes based on their last actively traded prices. The fair value of our 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 either a probability-weighted discounted cash flow model or a Monte Carlo simulation. These fair value estimates represent Level 3 measurements as they are based on significant inputs not observed in the market and reflect our own assumptions. We have multiple valuation models that use different inputs and assumptions based on the timing of the acquisitions. As a result, the significant unobservable inputs used in these models vary. The acquisition-related contingent consideration subject to the probability-weighted discounted cash flow model was valued using significant unobservable inputs including a discount rate of 13.5% and future cash flows. The acquisition-related contingent consideration subject to the Monte Carlo simulation was valued using significant unobservable inputs including a volatility rate of 30.0% and a discount rate of 13.6% , which reflects the weighted average of our cost of debt and adjusted cost of equity of the acquired company. Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly lower (higher) fair value. We reassess the fair value of our acquisition-related contingent consideration at each reporting period based on additional information as it becomes available. The change in our liability for acquisition-related contingent consideration for our Level 3 financial instruments is as follows: Liability for Acquisition-Related Contingent Consideration Balance at December 31, 2016 $ 5,692 Additions (1) 3,426 Accretion for time value of money (2) 1,589 Remeasurement gain (3) 702 Payments (5,161 ) Transfer out (2,498 ) Balance at December 31, 2017 $ 3,750 Accretion for time value of money (2) 479 Payments (531 ) Balance at December 31, 2018 $ 3,698 Additions (1) 9,746 Accretion for time value of money (2) 2,372 Payments (1,000 ) Foreign currency translation adjustment (4) 10 Balance at December 31, 2019 $ 14,826 (1) We acquired restructuring businesses that were assigned to the Corporate Finance segment during the years ended December 31, 2017 and 2019 . (2) Accretion for the time value of money is included in "Selling, general and administrative expenses" on the Consolidated Statements of Comprehensive Income. (3) Remeasurement gain or loss resulting from a change in the fair value of an acquisition's contingent consideration liability is recorded in “Selling, general and administrative expenses” on the Consolidated Statements of Comprehensive Income. (4) Foreign currency translation adjustments are included in "Other comprehensive income (loss), net of tax" on the Consolidated Statements of Comprehensive Income. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the components of the Company’s debt: December 31, 2019 2018 2023 Convertible Notes $ 316,250 $ 316,250 Total debt 316,250 316,250 Less: deferred debt discount (35,393 ) (43,998 ) Less: deferred debt issue costs (5,248 ) (6,681 ) Long-term debt, net (1) $ 275,609 $ 265,571 Additional paid-in capital $ 35,306 $ 35,306 Discount attribution to equity (1,175 ) (1,175 ) Equity component, net $ 34,131 $ 34,131 (1) There were no current portions of long-term debt as of December 31, 2019 and 2018 . 2023 Convertible Notes On August 20, 2018, we issued the 2023 Convertible Notes in an aggregate principal amount of $316.3 million . The 2023 Convertible Notes bear interest at a fixed rate of 2.0% per year, payable semiannually in arrears on February 15 and August 15 of each year, and will mature on August 15, 2023, unless earlier converted or repurchased. The 2023 Convertible Notes are senior unsecured obligations of the Company. The 2023 Convertible Notes are convertible at an initial conversion rate of 9.8643 shares of our common stock per $1,000 principal amount of the 2023 Convertible Notes (equivalent to an initial conversion price of approximately $101.38 per share of common stock). Holders may convert their 2023 Convertible Notes at any time prior to the close of business on the business day immediately preceding May 15, 2023 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2018 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “Measurement Period”) in which the trading price (as defined in the indenture governing the 2023 Convertible Notes) per $1,000 principal amount of the 2023 Convertible Notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate in effect on each such trading day; or (3) upon the occurrence of specified corporate events. On or after May 15, 2023, until the close of business on the business day immediately preceding the maturity date of August 15, 2023, holders may convert their 2023 Convertible Notes at any time, regardless of the foregoing circumstances. The circumstances required to allow the holders to convert their 2023 Convertible Notes were not met as of December 31, 2019 . If we undergo a fundamental change (as defined in the indenture governing the 2023 Convertible Notes), subject to certain conditions, holders may require us to repurchase for cash all or part of their 2023 Convertible Notes. The debt discount is amortized to interest expense over the term of the 2023 Convertible Notes using the effective interest rate method. We incurred debt issue costs and allocated the total amount to the liability and equity components of the 2023 Convertible Notes based on their relative values. The debt issue costs attributable to the liability component are amortized to interest expense over the term of the 2023 Convertible Notes using the effective interest rate method. Issuance costs attributable to the equity component were netted with the equity component in stockholders' equity. The table below summarizes the amount of interest cost recognized by us for both the contractual interest expense and amortization of the debt discount for the 2023 Convertible Notes: December 31, 2019 2018 Contractual interest expense $ 6,325 $ 2,302 Amortization of debt discount (1) 8,606 3,018 Total $ 14,931 $ 5,320 (1) The effective interest rate of the liability component was 5.45% . 2022 Notes On November 15, 2018, we redeemed the $300.0 million outstanding principal amount of our 6.0% senior notes due 2022 ("2022 Notes"), pursuant to the terms of the indenture governing the 2022 Notes. We recognized a loss on early extinguishment of debt of $9.1 million , consisting primarily of a redemption premium of $6.0 million and a $3.1 million non-cash write-off of unamortized deferred financing costs. This loss has been recorded in “Loss on early extinguishment of debt” within the Consolidated Statements of Comprehensive Income. Credit Facility On June 26, 2015, we entered into a credit agreement, which provides for a $550.0 million senior secured revolving credit facility ("Original Credit Facility") maturing on June 26, 2020 . In November 2018, we amended and restated the credit agreement to the Original Credit Facility, to, among other things, extend the maturity to November 30, 2023 and incurred an additional $1.7 million of debt issuance costs (the Original Credit Facility as amended and restated, the “Credit Facility”). At the Company’s option, borrowings under the Credit Facility in USD, euro and British pound will bear interest at either one-, two- or three-month London Interbank Offered Rate ("LIBOR") or an alternative base rate, in each case plus the applicable margin. The applicable margin will fluctuate between 1.25% per annum and 2.00% per annum, in the case of LIBOR borrowings, or between 0.25% per annum and 1.00% per annum, in the case of base rate borrowings, in each case, based upon the Company’s Consolidated Total Net Leverage Ratio (as defined in the Credit Facility) at such time. The lenders have a security interest in substantially all of the assets of the Company and substantially all of its domestic subsidiaries. Under the Credit Facility, we are required to pay a commitment fee rate that fluctuates between 0.20% and 0.35% per annum and a letter of credit fee rate that fluctuates between 1.25% and 2.00% per annum, in each case, based upon the Company’s Consolidated Total Net Leverage Ratio. There were no borrowings outstanding under the Credit Facility as of December 31, 2019 and 2018 . Additionally, $1.0 million of the borrowing limit was used (and, therefore, unavailable) as of December 31, 2019 for letters of credit. There were $2.0 million and $3.6 million of unamortized debt issue costs related to the Credit Facility as of December 31, 2019 and 2018 , respectively. These amounts were included in “Other assets” on our Consolidated Balance Sheets. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease office space and equipment under non-cancelable operating leases. We recognize operating lease expense on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are expensed on a straight-line basis. Most leases include one or more options to renew, with renewal terms that can extend the lease term from six months to seven years . The exercise of lease renewal options is at our sole discretion. Certain of our lease agreements include rental payments that are adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The table below summarizes the carrying amount of our operating lease assets and liabilities: As of Leases Classification December 31, 2019 Assets Operating lease assets Operating lease assets $ 159,777 Total lease assets $ 159,777 Liabilities Current Operating lease liabilities Accounts payable, accrued expenses and other $ 35,727 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 176,378 Total lease liabilities $ 212,105 The table below summarizes total lease costs for the year ended December 31, 2019 : Year Ended December 31, Lease Cost 2019 Operating lease costs $ 45,144 Short-term lease costs 3,173 Variable lease costs 11,962 Sublease income (5,015 ) Total lease cost $ 55,264 We sublease certain of our leased office spaces to third parties. Our sublease portfolio consists of leases of office space that we have vacated before the lease term expiration. Operating lease expense on vacated office space is reduced by sublease rental income, which is recorded to selling, general and administrative (“SG&A”) expenses on the Consolidated Statements of Comprehensive Income. Our sublease arrangements do not contain renewal options or restrictive covenants. We estimate future sublease rental income to be $4.9 million in 2020, $4.5 million in 2021, $0.7 million in 2022, $0.6 million in 2023, $0.6 million in 2024 and $0.3 million in years beyond 2024. The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases, a reconciliation to operating lease liabilities reported on the Consolidated Balance Sheets, our weighted average remaining lease term and weighted average discount rate: As of December 31, 2019 2020 $ 45,849 2021 51,331 2022 32,194 2023 26,896 2024 23,654 Thereafter 77,162 Total future lease payments 257,086 Less: imputed interest (44,981 ) Total $ 212,105 Weighted average remaining lease term (years) Operating leases 6.5 Weighted average discount rate Operating leases 5.6 % The table below summarizes cash paid for our operating lease liabilities and other non-cash information: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 46,079 Operating lease assets obtained in exchange for lease liabilities $ 37,774 Operating Lease Commitments Under ASC 840, Leases , our future minimum payments for all operating lease obligations that have initial non-cancelable lease terms exceeding one year, net of rental income from subleases as of December 31, 2018 , were as follows: Operating Leases Sublease Rental Income 2019 $ 49,757 $ 4,760 2020 47,084 3,944 2021 44,480 3,864 2022 24,471 707 2023 20,309 614 Thereafter 75,190 939 Total $ 261,291 $ 14,828 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the 2017 U.S. Tax Cuts and Jobs Act (the “2017 Tax Act”) was signed into law. The 2017 Tax Act included a number of changes to the U.S. Internal Revenue Code, including a reduction of the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017, and a one-time transition tax on certain unrepatriated foreign earnings (the “Transition Tax”). Prospective changes from the 2017 Tax Act that began in 2018 include imposed limitations on the deductibility of executive compensation and interest, a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, and a new provision designed to tax global intangible low-taxed income ("GILTI"). The Company has made an accounting policy election to account for the tax effects of the GILTI provision as a period cost. The table below summarizes significant components of deferred tax assets and liabilities. Year Ended December 31, 2019 2018 Deferred tax assets Allowance for doubtful accounts $ 13,041 $ 11,792 Accrued vacation and bonus 27,438 23,545 Deferred rent — 9,016 Share-based compensation 12,647 11,837 Notes receivable from employees 12,187 12,993 State net operating loss carryforward 2,066 3,510 Foreign net operating loss carryforward 9,388 9,857 Federal tax credit and capital loss carryforward 7,336 9,470 Deferred compensation 2,117 1,801 Operating lease assets 43,397 — Employee benefits obligations 1,191 943 Other, net 1,898 186 Total deferred tax assets 132,706 94,950 Deferred tax liabilities Revenue recognition (6,732 ) (5,087 ) Operating lease liabilities (29,671 ) — Property and equipment, net (3,797 ) (6,652 ) Equity debt discount (8,890 ) (11,014 ) Goodwill and other intangible assets (209,250 ) (199,964 ) Total deferred tax liabilities (258,340 ) (222,717 ) Foreign withholding tax (1,195 ) (413 ) Valuation allowance (19,865 ) (21,929 ) Net deferred tax liabilities $ (146,694 ) $ (150,109 ) As of December 31, 2019 and 2018 , the Company recorded certain deferred tax assets related to foreign tax credits, capital losses and foreign net operating loss carryforwards, which can be carried forward for periods ranging from 10 years to indefinite . Based on forward-looking financial information, the Company believes it is not more likely than not that the attributes will be utilized. Therefore, valuation allowances of $19.9 million and $21.9 million are recorded against the Company’s deferred tax assets as of December 31, 2019 and 2018 , respectively. As of December 31, 2019 , the Company has not recorded a $22.9 million deferred tax liability related to the basis difference in the investment in our foreign subsidiaries, as the investment is considered permanent in nature. The table below summarizes the components of income before income tax provision (benefit) from continuing operations. Year Ended December 31, 2019 2018 2017 Domestic $ 150,860 $ 96,543 $ 30,013 Foreign 137,590 111,249 57,092 Total $ 288,450 $ 207,792 $ 87,105 The table below summarizes the components of income tax provision (benefit) from continuing operations. Year Ended December 31, 2019 2018 2017 Current Federal $ 30,651 $ 10,847 $ 15,164 State 7,702 4,447 742 Foreign 37,083 21,056 14,816 75,436 36,350 30,722 Deferred Federal (1,767 ) 14,538 (47,820 ) State 785 503 (152 ) Foreign (2,730 ) 5,790 (3,607 ) (3,712 ) 20,831 (51,579 ) Income tax provision (benefit) $ 71,724 $ 57,181 $ (20,857 ) Our income tax provision (benefit) from continuing operations resulted in effective tax rates that varied from the statutory federal income tax rate as summarized below. Year Ended December 31, 2019 2018 2017 Income tax expense at federal statutory rate $ 60,575 $ 43,636 $ 30,487 State income taxes, net of federal benefit 8,430 4,950 781 Detriment (benefit) from foreign tax rates 3,425 3,655 (8,500 ) Valuation allowance on foreign net operating loss carryforward 260 (450 ) 253 Other expenses not deductible for tax purposes 4,362 3,543 2,466 Adjustment to reserve for uncertain tax positions 2,504 (132 ) 456 Impact of 2017 U.S. tax reform — deferred tax — (706 ) (63,525 ) Impact of 2017 U.S. tax reform — Transition Tax (1,088 ) 50 18,655 Sale of Ringtail business (2,097 ) 3,798 — Equity-based compensation (4,447 ) (1,371 ) 809 Other adjustments, net (200 ) 208 (2,739 ) Income tax provision (benefit) $ 71,724 $ 57,181 $ (20,857 ) The income tax expense for the years ended December 31, 2019 and 2018 was $71.7 million and $57.2 million , respectively. The increase in expense is primarily attributable to higher pre-tax income in 2019 as compared with 2018 . We file numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many city, state and foreign jurisdictions. We are no longer subject to U.S. federal income tax examinations for years prior to 2015. We are also no longer subject to state and local or foreign tax examinations by tax authorities for years prior to 2013. Our liability for uncertain tax positions was $11.1 million and $3.7 million as of December 31, 2019 and 2018 , respectively. The Company does not expect any of the uncertain tax positions to settle within the next 12 months. As of December 31, 2019 , our accrual for the payment of tax-related interest and penalties was not significant. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 2016 Stock Repurchase Program 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, December 1, 2017 and February 21, 2019, our Board of Directors authorized an additional $100.0 million , respectively, increasing the Repurchase Program to an aggregate authorization of $400.0 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 December 31, 2019 , we have $66.6 million available under this program to repurchase additional shares. The following table details our stock repurchases under the Repurchase Program: Year Ended December 31, 2019 2018 2017 Shares of common stock repurchased and retired 1,258 756 4,674 Average price per share $ 84.16 $ 53.88 $ 35.94 Total cost $ 105,915 $ 40,722 $ 168,001 2018 Repurchase Transaction On August 13, 2018, our Board of Directors authorized the use of a portion of the proceeds from the issuance of the 2023 Convertible Notes to repurchase up to $25.0 million of common stock. On August 16, 2018, 196,050 shares of our common stock were repurchased at $76.51 per share for a total cost of $15.0 million . This is a separate repurchase transaction outside of the Repurchase Program. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We maintain a qualified defined contribution 401(k) plan, which covers substantially all of our U.S. employees. Under the plan, participants are entitled to make pre-tax and/or Roth post-tax contributions up to the annual maximums established by the Internal Revenue Service. We match a certain percentage of participant contributions pursuant to the terms of the plan, which contributions are limited to a percentage of the participant’s eligible compensation. Effective in 2018, we increased our matching percentage. We made contributions related to the plan of $17.4 million , $15.2 million and $11.6 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. We also maintain several defined contribution pension plans for our employees in the United Kingdom and other foreign countries. We contributed to these plans $7.3 million , $7.7 million and $6.4 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We manage our business in five reportable segments: Corporate Finance, FLC, Economic Consulting, Technology and Strategic Communications. Our Corporate Finance segment focuses on the strategic, operational, financial, transactional and capital needs of our clients around the world and delivers a wide range of service offerings related to restructuring, business transformation and transactions. Our restructuring practice includes corporate restructuring, including bankruptcy and interim management services. Our business transformation and transactions practices include financial, operational and performance improvement services, as well as due diligence, financing advisory, mergers and acquisitions ("M&A") advisory, M&A integration, carveout support and valuations. Our FLC segment provides law firms, companies, government clients and other interested parties with multidisciplinary and independent services related to risk advisory, investigations and disputes. We have expertise in anti-corruption/anti-money laundering investigations and compliance, cybersecurity, data analytics, export controls and sanctions, and monitorship. We offer specialized industry expertise in the areas of insurance, construction, healthcare, environmental and trial services. 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 provides companies and law firms with a comprehensive and global portfolio of consulting and services for information governance, privacy and security, electronic discovery and insight analytics. Our consulting expertise enables clients to more confidently govern, secure, find, analyze and rapidly understand their data in the context of compliance and risk. Our Strategic Communications segment designs and executes communications strategies for CEOs, management teams and boards of directors that help them seize opportunities, manage financial, regulatory and reputational challenges, navigate market disruptions, articulate their corporate brand, stake a competitive position, and preserve their freedom to operate. We evaluate the performance of our operating segments based on Adjusted Segment EBITDA, a GAAP financial measure. We define Adjusted Segment EBITDA as a segment’ The table below presents revenues and Adjusted Segment EBITDA for our reportable segments for the years ended December 31, 2019 , 2018 and 2017 . Year Ended December 31, 2019 2018 2017 Revenues Corporate Finance $ 723,721 $ 564,479 $ 482,041 FLC 577,780 520,333 462,324 Economic Consulting 592,542 533,979 496,029 Technology 215,584 185,755 174,850 Strategic Communications 243,090 223,331 192,488 Total revenues $ 2,352,717 $ 2,027,877 $ 1,807,732 Adjusted Segment EBITDA Corporate Finance $ 160,735 $ 121,660 $ 82,863 FLC 104,435 96,821 72,705 Economic Consulting 84,112 69,955 61,964 Technology 45,688 27,387 22,171 Strategic Communications 44,544 42,918 27,732 Total Adjusted Segment EBITDA $ 439,514 $ 358,741 $ 267,435 The table below reconciles net income to Total Adjusted Segment EBITDA. Unallocated corporate expenses primarily include indirect costs related to centrally managed administrative functions that have not been allocated to the segments. These administrative costs include costs related to executive management, legal, corporate office support costs, information technology, accounting, marketing, human resources and company-wide business development and strategy functions. Year Ended December 31, 2019 2018 2017 Net income $ 216,726 $ 150,611 $ 107,962 Add back: Income tax provision (benefit) 71,724 57,181 (20,857 ) Interest income and other (2,061 ) (4,977 ) (3,752 ) Interest expense 19,206 27,149 25,358 Gain on sale of business — (13,031 ) — Loss on early extinguishment of debt — 9,072 — Unallocated corporate expenses 98,398 96,595 83,140 Segment depreciation expense 27,369 27,979 27,112 Amortization of intangible assets 8,152 8,162 10,563 Segment special charges — — 37,207 Remeasurement of acquisition-related contingent consideration — — 702 Total Adjusted Segment EBITDA $ 439,514 $ 358,741 $ 267,435 The table below presents assets by segment. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and other intangible assets. December 31, 2019 2018 Corporate Finance $ 814,820 $ 707,924 FLC 462,155 412,667 Economic Consulting 543,475 516,123 Technology 200,430 171,002 Strategic Communications 217,129 212,147 Total segment assets 2,238,009 2,019,863 Unallocated corporate assets 545,133 359,258 Total assets $ 2,783,142 $ 2,379,121 The table below details information on our revenues for the years ended December 31, 2019 , 2018 and 2017 . Revenues have been attributed to locations based on the location of the legal entity generating the revenues. Year Ended December 31, 2019 2018 2017 U.S. $ 1,555,133 $ 1,372,116 $ 1,262,682 United Kingdom 389,338 302,576 251,843 All other foreign countries 408,246 353,185 293,207 Total revenues $ 2,352,717 $ 2,027,877 $ 1,807,732 We do not have a single customer that represents 10% or more of our consolidated revenues. The table below details information on our long-lived assets and net assets by geographic location, which is based on the location of the legal entity holding the assets. We define net assets as total assets less total liabilities. December 31, 2019 December 31, 2018 U.S. United Kingdom All Other Foreign Countries U.S. United Kingdom All Other Foreign Countries Property and equipment, net $ 63,563 $ 16,423 $ 13,686 $ 59,611 $ 14,023 $ 10,943 Net assets $ 925,288 $ 196,087 $ 367,767 $ 867,321 $ 160,894 $ 320,610 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) Quarter Ended March 31 June 30 September 30 December 31 2019 Revenues $ 551,274 $ 606,119 $ 593,106 $ 602,218 Operating expenses Direct cost of revenues 349,066 386,266 380,892 418,672 Selling, general and administrative expenses 113,185 129,906 127,951 133,032 Amortization of other intangible assets 1,861 1,852 2,125 2,314 464,112 518,024 510,968 554,018 Operating income 87,162 88,095 82,138 48,200 Interest income and other 159 2,609 2,973 (3,680 ) Interest expense (4,746 ) (4,793 ) (4,832 ) (4,835 ) Income before income tax provision 82,575 85,911 80,279 39,685 Income tax provision 19,930 21,313 19,857 10,624 Net income $ 62,645 $ 64,598 $ 60,422 $ 29,061 Earnings per common share — basic (1) $ 1.69 $ 1.75 $ 1.65 $ 0.80 Earnings per common share — diluted (1) $ 1.64 $ 1.69 $ 1.59 $ 0.76 Weighted average common shares outstanding Basic 36,981 36,960 36,617 36,545 Diluted 38,219 38,168 37,938 38,126 Quarter Ended March 31 June 30 September 30 December 31 2018 Revenues $ 497,774 $ 512,098 $ 513,012 $ 504,993 Operating expenses Direct cost of revenues 321,117 330,318 336,477 340,162 Selling, general and administrative expenses 112,128 117,897 117,448 118,163 Amortization of other intangible assets 2,270 2,052 1,975 1,865 435,515 450,267 455,900 460,190 Operating income 62,259 61,831 57,112 44,803 Interest income and other (1,800 ) 2,474 1,400 2,903 Interest expense (6,244 ) (6,583 ) (7,246 ) (7,076 ) Gain on sale of business — — 13,031 — Loss on early extinguishment of debt — — — (9,072 ) Income before income tax provision 54,215 57,722 64,297 31,558 Income tax provision 15,270 14,113 19,964 7,834 Net income $ 38,945 $ 43,609 $ 44,333 $ 23,724 Earnings per common share — basic (1) $ 1.06 $ 1.18 $ 1.19 $ 0.63 Earnings per common share — diluted (1) $ 1.04 $ 1.14 $ 1.14 $ 0.61 Weighted average common shares outstanding Basic 36,700 37,001 37,318 37,368 Diluted 37,612 38,271 38,756 38,628 (1) The sum of the quarterly earnings per share amounts may not equal the annual amounts due to changes in the weighted average number of common shares outstanding during each quarterly period. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts (in thousands) Balance at Beginning of Period Additions Balance at End of Period Charged to Expense Charged to Other Accounts* Description Deductions** Year Ended December 31, 2019 Reserves and allowances deducted from asset accounts: Allowance for doubtful accounts and unbilled services $ 202,394 $ 19,602 $ 56,238 $ 12,734 $ 265,500 Valuation allowance for deferred tax asset $ 21,929 $ — $ — $ 2,064 $ 19,865 Year Ended December 31, 2018 Reserves and allowances deducted from asset accounts: Allowance for doubtful accounts and unbilled services $ 180,687 $ 17,872 $ 25,300 $ 21,465 $ 202,394 Valuation allowance for deferred tax asset $ 21,621 $ 308 $ — $ — $ 21,929 Year Ended December 31, 2017 Reserves and allowances deducted from asset accounts: Allowance for doubtful accounts and unbilled services $ 178,819 $ 15,386 $ 9,656 $ 23,174 $ 180,687 Valuation allowance for deferred tax asset $ 18,900 $ 2,721 $ — $ — $ 21,621 * Includes estimated provision for unbilled services recorded as a reduction to revenues (i.e., fee, rate and other adjustments). ** Includes estimated direct write-offs of uncollectible and unrealizable accounts receivable. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles Our financial statements are prepared in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of FTI Consulting and all of our subsidiaries. All intercompany transactions and balances have been eliminated. Reclassifications of certain prior period amounts have been made to conform to the current period presentation. |
Foreign Currency | Foreign Currency Results of operations for our non-U.S. subsidiaries are translated from the designated functional currency to the reporting currency of the U.S. dollar ("USD"). Revenues and expenses are translated at average exchange rates for each month, while assets and liabilities are translated at balance sheet date exchange rates. Resulting net translation adjustments are recorded as a component of stockholders’ equity in “Accumulated other comprehensive income (loss).” Transaction gains and losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in “Interest income and other” on the Consolidated Statements of Comprehensive Income. Such transaction gains and losses may be realized or unrealized depending upon whether the transaction settled during the period or remains outstanding at the balance sheet date. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Due to the inherent uncertainty involved in making those assumptions, actual results could differ from those estimates. Our most significant estimates relate to the determination of the allowance for doubtful accounts and unbilled services, the assessment of the recoverability of goodwill, the realization of deferred tax assets and the fair value of acquisition-related contingent consideration. Management bases its estimates on historical trends, current experience and other assumptions that it believes are reasonable. |
Concentrations of Risk | Concentrations of Risk We do not have a single customer that represents 10% or more of our consolidated revenues. We derive the majority of our revenues from providing professional services to clients in the U.S. For the year ended December 31, 2019 , we derived approximately 34% of our consolidated revenues from the work of professionals who are assigned to locations outside the U.S. We believe that the geographic and industry diversity of our customer base throughout the U.S. and internationally minimizes the risk of incurring material losses due to concentrations of credit risk. |
Revenues | Revenue Recognition Revenues are recognized when we satisfy a performance obligation by transferring services promised in a contract to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those services. Performance obligations in our contracts represent distinct or separate services that we provide to our customers. We evaluate our revenue contracts with customers based on the five-step model under Revenue from Contracts with Customers : (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 revenues 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 (i.e., 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. In such cases, 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. We recognize revenues earned to date by applying the proportional performance method. 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. 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 with 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. Direct Cost of Revenues $28.9 million and $16.1 million for the years ended December 31, 2019 and 2018 , respectively. Unfulfilled performance obligations represent the remaining contract transaction prices allocated to the performance obligations that are unsatisfied. Unfulfilled performance obligations primarily consist of fees not yet recognized on a proportional performance basis for fixed-fee arrangements and performance-based and contingent arrangements. As of December 31, 2019 and December 31, 2018 , the aggregate amount of the remaining contract transaction price allocated to unfulfilled performance obligations was $2.3 million and $8.8 million , respectively, and we expect to recognize the majority of the related revenues over the next 24 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 but 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 $1.3 million and $2.4 million as of December 31, 2019 and 2018 , respectively. Contract liabilities are defined as liabilities incurred when we have received consideration but have not yet performed the agreed-upon services. This may occur when clients pay us upfront fees before we begin work for them. The contract liability balance was immaterial as of December 31, 2019 and 2018 |
Share-Based Compensation | Share-Based Compensation Share-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as expense over the requisite service period or performance period of the award. The amount of share-based compensation expense recognized at any date must at least equal the portion of grant date value of the award that is vested at that date. The fair value of restricted share awards and restricted stock units is measured based on the closing price of the underlying stock on the date of grant. The fair value of performance share units that contain market-based vesting conditions is measured using a Monte Carlo pricing model. The compensation cost of performance stock units with market-based vesting conditions is based on the grant date fair value and is not subsequently reversed if it is later determined that the market condition is unlikely to be met or is expected to be lower than originally expected. For performance share units that contain performance-based vesting conditions, the compensation cost is adjusted each reporting period based on the probability of the awards vesting. We use the Black-Scholes pricing model to determine the fair value of stock options on the date of grant. The Black-Scholes pricing model requires the development of assumptions, including volatility and expected term, which are based on our historical experience. The risk-free interest rate is based on the term of U.S. Treasury interest rates that is consistent with the expected term of the share-based award. |
Advertising Costs | Advertising Costs |
Acquisition-Related Contingent Consideration | Acquisition-Related Contingent Consideration |
Income Taxes | Income Taxes |
Cash Equivalents | Cash Equivalents |
Allowance for Doubtful Accounts and Unbilled Services | Allowance for Doubtful Accounts and Unbilled Services We maintain an allowance for doubtful accounts and unbilled services for estimated losses resulting from potential fee reductions negotiated with specific clients or imposed by bankruptcy courts or other regulatory agencies and the inability of specific clients to pay our fees, as well as from disputes that affect our ability to fully collect our billed accounts receivable. Even if a bankruptcy court approves our services, the court has the discretion to require us to refund all or a portion of our fees due to the outcome of the case or a variety of other factors. We estimate the allowance for all receivable risks by reviewing the status of each matter and recording reserves based on our experience and knowledge of specific client collections and the Company's historical collection patterns for similar client collections. However, our actual experience may vary significantly from our estimates. If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay our fees, or bankruptcy courts require us to refund certain fees, we may need to record additional allowances or write-offs in future periods. This risk related to a client’s non-payment may be mitigated to the extent that we receive a retainer from some of our clients prior to performing services. 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 that may be imposed by bankruptcy courts and other regulatory institutions for |
Property and Equipment | Property and Equipment We record property and equipment, including improvements that extend useful lives, at cost, while maintenance and repairs are expensed as incurred. We calculate depreciation using the straight-line method based on estimated useful lives ranging from three years to seven years for furniture, equipment and software. We amortize leasehold improvements over the shorter of the estimated useful life of the asset or the lease term. We capitalize costs incurred during the application development stage of computer software developed or obtained for internal use. Capitalized software developed for internal use is classified within furniture, equipment and software and is amortized over the estimated useful life of the software, which is generally three years |
Notes Receivable from Employees | Notes Receivable from Employees Notes receivable from employees principally include unsecured general recourse forgivable loans and retention payments, which are provided to attract and retain certain of our senior employees and other professionals. Generally, all of the principal amount and accrued interest of the forgivable loans we make to employees and other professionals will be forgiven according to the stated terms of the loan agreement, provided that the professional is providing services to the Company on the forgiveness date and upon other specified events, such as death or disability. Professionals who terminate their employment or services with us prior to the end of the forgiveness period are required to repay the outstanding, unforgiven loan balance and any accrued but unforgiven interest. If the termination was by the Company without cause or by the employee with good reason, or, subject to certain conditions, if the employee terminates his or her employment due to retirement or non-renewal of his or her employment agreement, the loan may be forgiven or continue to be forgivable, in whole or in part. We amortize forgivable loans ratably over the requisite service period, which ranges from a period of one year to 10 years |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the purchase price of acquired businesses in excess of the fair market value of net assets acquired at the date of acquisition. Other intangible assets may include customer relationships, trademarks and acquired software. We test our goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter or whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. On a quarterly basis, we monitor the key drivers of fair value to detect events or other changes that would warrant an interim impairment test. Important factors we consider that could trigger an interim impairment review include, but are not limited to, the following: • significant underperformance relative to expected historical or projected future operating results; • a significant change in the manner of our use of the acquired asset or the strategy for our overall business; • a significant market decline related to negative industry or economic trends; and/or • our market capitalization relative to net carrying value. We assess our goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or a business one level below that operating segment if discrete financial information is available and regularly reviewed by the chief operating decision makers. Entities have an option, under certain circumstances, to perform a qualitative assessment regarding the reporting unit’s fair value to determine whether it is necessary to perform the quantitative impairment test. In the qualitative assessment, we consider various factors, events or circumstances, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and other relevant reporting unit specific events. If, based on the qualitative assessment, an entity determines that it is not “more likely than not” that the fair value of a reporting unit is less than its carrying value, we do not prepare a quantitative impairment test. If we determine otherwise, we will prepare a quantitative assessment for potential goodwill impairment. In the quantitative assessment, we compare the estimated fair value of the reporting unit with the carrying amount of that reporting unit. We estimate fair value using a combination of an income approach (based on discounted cash flows) and market approaches, using appropriate weighting factors. If the fair value exceeds the carrying amount, goodwill is not impaired. However, if the carrying value exceeds the fair value of the reporting unit, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. We determine whether to perform a qualitative assessment first or to bypass the qualitative assessment and proceed with the quantitative goodwill impairment test for each of our reporting units based on the excess of fair value over carrying value from the most recent quantitative tests and other events or changes in circumstances that could impact the fair value of the reporting units. Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. We amortize our acquired finite-lived intangible assets on a straight-line basis over periods ranging from three to 15 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Leases | Leases As of January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases , which was amended in some respects by subsequent ASUs (collectively Accounting Standards Codification (“ASC") 842 ("ASC 842")) and supersedes existing lease guidance. The standard requires us to record operating lease assets and corresponding lease liabilities on the balance sheet and disclose key quantitative and qualitative information about our lease contracts. Under ASC 842, we determine if a contract is a leasing arrangement at inception. Operating lease assets represent our right to control the use of an identified asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use the incremental borrowing rate on the commencement date in determining the present value of our lease payments. We recognize operating lease expense for our operating leases on a straight-line basis over the lease term. We lease office space and equipment under non-cancelable operating leases which may include renewal or termination options that are reasonably certain of exercise. Most leases include one or more options to renew, with renewal terms that can extend the lease term up to seven years . Leases with an initial term of 12 months or less are not recorded on the balance sheet and are expensed on a straight-line basis. Lease and non-lease components are accounted for together as a single lease component for operating leases associated with our office space and our equipment leases. We apply a portfolio approach for certain equipment leases to effectively account for the operating lease assets and liabilities. |
Billings in Excess of Services Provided | Billings in Excess of Services Provided |
New Accounting Standards | New Accounting Standards Recently 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, "Description of Business and Summary of Significant Accounting Policies" for a description of the significant accounting policies and methods used in preparation of the Consolidated Financial Statements. See Note 4, “Revenues” for the disclosures required under ASC 606. The adoption of ASC 606 had an immaterial impact on our Consolidated Statements of Comprehensive Income and Consolidated Balance Sheets and had no impact on our Consolidated Statements of Cash Flows. In February 2016, the FASB issued ASU 2016-02, Leases , which was amended in some respects by subsequent ASUs. We adopted ASC 842 using the modified retrospective basis for reporting. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward the historical lease classification for existing leases on the adoption date, and allowed us not to reassess whether an existing contract contains a lease or initial direct costs. As permitted by the guidance, prior comparative periods will not be adjusted under this method. See Note 1, "Description of Business and Summary of Significant Accounting Policies" for a description of the significant accounting policies for our operating leases. See Note 14, "Leases" for the disclosures required under ASC 842. The adoption of this standard resulted in recognition of operating lease assets in the amount of $148.5 million and lease liabilities in the amount of $206.7 million for operating leases on our Consolidated Balance Sheets as of January 1, 2019. Our existing deferred rent and cease-use liabilities were $62.3 million as of December 31, 2018 and were included as a reduction to the initial measurement of our operating lease assets. Our existing prepaid rent balance was $4.1 million as of December 31, 2018 and was included as a reduction to the initial measurement of our operating lease liabilities. There was no material impact on the Consolidated Statements of Comprehensive Income, Consolidated Statements of Stockholders’ Equity or Consolidated Statements of Cash Flows. In August 2018, the FASB issued ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The guidance promotes a framework to help improve the effectiveness of disclosures in the notes to the financial statements and is effective for annual and interim periods beginning after December 15, 2019. We elected, as permitted by the standard, to early adopt ASU 2018-13 as of December 31, 2019 and have prospectively applied the modifications which are limited to presentation and disclosure changes that did not have a material impact on the consolidated financial statements. Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires the Company to capitalize implementation costs of a hosting arrangement that is a service contract and expense those costs over the term of the hosting arrangement. The guidance is effective for annual and interim periods beginning after December 15, 2019 although early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Year Ended December 31, 2019 2018 2017 Numerator — basic and diluted Net income $ 216,726 $ 150,611 $ 107,962 Denominator Weighted average number of common shares outstanding — basic 36,774 37,098 38,697 Effect of dilutive convertible notes 62 — — Effect of dilutive stock options 455 491 117 Effect of dilutive restricted shares 820 729 378 Weighted average number of common shares outstanding — diluted 38,111 38,318 39,192 Earnings per common share — basic $ 5.89 $ 4.06 $ 2.79 Earnings per common share — diluted $ 5.69 $ 3.93 $ 2.75 Antidilutive stock options and restricted shares 19 175 1,561 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | The table below reflects the total share-based compensation expense recognized in our Consolidated Statements of Comprehensive Income for the years ended December 31, 2019 , 2018 and 2017 . 2019 2018 2017 Restricted Restricted Restricted Income Statement Classification Options (1) Shares (2) Options (1) Shares (2) Options (1) Shares (2) Direct cost of revenues $ 497 $ 11,869 $ 780 $ 9,804 $ 370 $ 9,691 Selling, general and administrative expenses 2,628 9,005 2,027 8,191 1,207 4,870 Special charges — — — — — 269 Total $ 3,125 $ 20,874 $ 2,807 $ 17,995 $ 1,577 $ 14,830 (1) Includes options and cash-settled stock appreciation rights. (2) Includes restricted share awards, restricted stock units, performance stock units and cash-settled restricted stock units. |
Schedule of Stock Option and Grants Using Valuation Assumptions | We did no t grant any options during the years ended December 31, 2019 and 2018 . We used the Black-Scholes option-pricing model to determine the fair value of our option grants during the year ended December 31, 2017 using the assumptions in the table below. Year Ended December 31, Assumptions 2017 Risk-free interest rate 1.60% Dividend yield —% Expected term 3 years Stock price volatility 31.94% |
Schedule of Stock Option Activity | A summary of our stock option activity during the year ended December 31, 2019 is presented below. The aggregate intrinsic value of stock options outstanding and exercisable, or fully vested, at December 31, 2019 in the table below represents the total pre-tax intrinsic value, which is calculated as the difference between the closing price of our common stock on the last trading day of 2019 and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their options on December 31, 2019 . The aggregate intrinsic value changes based on fluctuations in the fair market value per share of our common stock. Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Stock options outstanding at December 31, 2018 935 $ 36.50 Stock options granted — N/A Stock options exercised (256 ) $ 37.88 Stock options forfeited (1 ) $ 30.28 Stock options outstanding at December 31, 2019 678 $ 35.98 4.7 $ 50,669 Stock options exercisable at December 31, 2019 605 $ 35.75 4.6 $ 45,343 |
Schedule of Stock Options Outstanding and Exercisable | The following is a summary of stock options outstanding and exercisable as of December 31, 2019 . Options Outstanding Options Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Weighted Average Exercise Price Exercise Price Range Options Shares $26.68-$33.95 137 $ 31.46 3.7 124 $ 31.53 $34.33-$34.62 138 $ 34.40 5.4 138 $ 34.40 $35.73-$36.87 195 $ 36.67 4.4 188 $ 36.68 $36.89-$40.36 202 $ 39.28 5.4 149 $ 39.12 $41.69-$41.69 6 $ 41.69 0.3 6 $ 41.69 678 605 |
Schedule of Unvested Restricted Share Activity | A summary of our restricted share activity during the year ended December 31, 2019 is presented below. Shares Weighted Average Grant Date Fair Value Unvested restricted share awards outstanding at December 31, 2018 992 $ 43.76 Restricted share awards granted 222 $ 81.64 Restricted share awards vested (229 ) $ 43.04 Restricted share awards forfeited (28 ) $ 38.87 Unvested restricted share awards outstanding at December 31, 2019 957 $ 52.86 |
Schedule of Restricted Stock Unit Activity | A summary of our restricted stock units activity during the year ended December 31, 2019 is presented below. Shares Weighted Average Grant Date Fair Value Restricted stock units outstanding at December 31, 2018 335 $ 39.72 Restricted stock units granted 30 $ 82.39 Restricted stock units released (52 ) $ 42.15 Restricted stock units forfeited — N/A Restricted stock units outstanding at December 31, 2019 313 $ 43.45 |
Schedule of Performance Stock Units Activity | A summary of our performance stock units activity during the year ended December 31, 2019 is presented below. Shares Weighted Average Grant Date Fair Value Performance stock units outstanding at December 31, 2018 275 $ 42.60 Performance stock units granted (1) 170 $ 77.67 Performance stock units released (84 ) $ 35.75 Performance stock units forfeited — N/A Performance stock units outstanding at December 31, 2019 361 $ 60.67 (1) Performance stock units granted are presented at the maximum potential payout percentage of 150% of target shares granted. |
Schedule of Weighted-Average Grant Date Fair Value Per Share of Stock Options, Restricted Share Awards, Restricted Stock Units and Performance Stock Units Awarded | The table below reflects the weighted average grant date fair value per share of stock options, restricted share awards, restricted stock units and performance stock units awarded during the years ended December 31, 2019 , 2018 and 2017 . The fair value of our stock options is calculated using the Black-Scholes option-pricing model. The fair value of our restricted stock awards, restricted stock units and our performance stock units that are subject to performance conditions is determined based on the closing market price per share of our common stock on the grant date. The fair value of our performance stock units that are subject to market conditions reflects the market conditions as of the grant date using a Monte Carlo simulation. Year Ended December 31, 2019 2018 2017 Weighted average fair value of grants Stock options $ — $ — $ 9.56 Restricted share awards, restricted stock units and performance stock units $ 80.10 $ 51.73 $ 38.88 |
Interest Income and Other (Tabl
Interest Income and Other (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Interest Income and Other | The table below presents the components of “Interest income and other” as shown on the Consolidated Statements of Comprehensive Income. Year Ended December 31, Interest Income and Other 2019 2018 2017 Interest income $ 4,761 $ 5,448 $ 3,968 Foreign exchange transaction gains (losses), net (3,056 ) 261 (77 ) Other 356 (732 ) (139 ) Total $ 2,061 $ 4,977 $ 3,752 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Balance Sheet Details | December 31, 2019 2018 Prepaid expenses and other current assets Prepaid expenses $ 39,740 $ 35,762 Income tax receivable 8,161 18,947 Other current assets 32,909 14,739 Total $ 80,810 $ 69,448 Accounts payable, accrued expenses and other Accounts payable $ 18,346 $ 17,728 Accrued expenses 46,511 52,461 Accrued interest payable 2,243 2,358 Accrued taxes payable 35,895 13,119 Current operating lease liabilities 35,727 — Other current liabilities 20,214 18,934 Total $ 158,936 $ 104,600 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following. December 31, 2019 2018 Leasehold improvements $ 99,837 $ 88,623 Construction in progress 4,359 2,754 Furniture and equipment 36,698 34,865 Computer equipment and software 119,904 106,318 260,798 232,560 Accumulated depreciation (167,126 ) (147,983 ) Property and equipment, net $ 93,672 $ 84,577 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 FLC 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 Sale of business (1) — — — (20,928 ) — (20,928 ) Foreign currency translation adjustment and other (3,819 ) (2,182 ) (448 ) (89 ) (5,021 ) (11,559 ) Balance at December 31, 2018 Goodwill 450,997 231,537 268,547 96,723 318,651 1,366,455 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2018 450,997 231,537 268,547 96,723 124,512 1,172,316 Acquisitions (2) 27,389 — — — — 27,389 Foreign currency translation adjustment and other 456 583 130 47 1,846 3,062 Balance at December 31, 2019 Goodwill 478,842 232,120 268,677 96,770 320,497 1,396,906 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2019 $ 478,842 $ 232,120 $ 268,677 $ 96,770 $ 126,358 $ 1,202,767 (1) During the year ended December 31, 2018, we sold a business within our Technology segment for proceeds of $50.3 million . We wrote off $20.9 million in goodwill as a result of the sale. (2) During the year ended December 31, 2019 , we acquired a restructuring business that was assigned to the Corporate Finance segment. We recorded $27.4 million in goodwill based on a preliminary purchase price allocation as a result of the acquisition. We have included the results of the acquired business’s operations in the Corporate Finance segment since its acquisition date. |
Schedule of Other Intangible Assets Amortized Intangibles | Other intangible assets were as follows: December 31, 2019 December 31, 2018 Weighted Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets Customer relationships (1) 14.2 $ 99,613 $ 76,808 $ 22,805 $ 99,080 $ 71,036 $ 28,044 Trademarks (1) 6.0 9,855 653 9,202 — — — Acquired software and other (1) 9.1 3,386 2,061 1,325 3,107 1,618 1,489 13.4 112,854 79,522 33,332 102,187 72,654 29,533 Non-amortizing intangible assets Trademarks Indefinite 5,100 — 5,100 5,100 — 5,100 Total $ 117,954 $ 79,522 $ 38,432 $ 107,287 $ 72,654 $ 34,633 (1) During the year ended December 31, 2019 , we acquired a restructuring business and its related intangible assets that were assigned to the Corporate Finance segment. |
Schedule of Other Intangible Assets Unamortized Intangibles | Other intangible assets were as follows: December 31, 2019 December 31, 2018 Weighted Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets Customer relationships (1) 14.2 $ 99,613 $ 76,808 $ 22,805 $ 99,080 $ 71,036 $ 28,044 Trademarks (1) 6.0 9,855 653 9,202 — — — Acquired software and other (1) 9.1 3,386 2,061 1,325 3,107 1,618 1,489 13.4 112,854 79,522 33,332 102,187 72,654 29,533 Non-amortizing intangible assets Trademarks Indefinite 5,100 — 5,100 5,100 — 5,100 Total $ 117,954 $ 79,522 $ 38,432 $ 107,287 $ 72,654 $ 34,633 (1) During the year ended December 31, 2019 , we acquired a restructuring business and its related intangible assets that were assigned to the Corporate Finance segment. |
Schedule of Future Amortization Expense Intangible Assets | We estimate our future amortization expense for our intangible assets with a finite life to be as follows: As of December 31, 2019 (1) Year 2020 $ 9,393 2021 8,861 2022 7,028 2023 3,604 2024 2,207 Thereafter 2,239 $ 33,332 (1) Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, changes in useful lives, or other relevant factors or changes. |
Notes Receivable from Employe_2
Notes Receivable from Employees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Changes in Carrying Amount of Notes Receivable From Employees | The table below summarizes the changes in the carrying amount of our notes receivable from employees. December 31, 2019 2018 Notes receivable from employees — beginning $ 113,699 $ 123,796 Notes granted 28,879 32,937 Repayments (13,179 ) (5,405 ) Amortization (26,294 ) (36,418 ) Cumulative translation adjustment and other 1,034 (1,211 ) Notes receivable from employees — ending 104,139 113,699 Less: current portion (35,106 ) (29,228 ) Notes receivable from employees, net of current portion $ 69,033 $ 84,471 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 other financial instruments by hierarchy level as of December 31, 2019 and 2018 . December 31, 2019 Hierarchy Level (Fair Value) Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) (2) $ 14,826 $ — $ — $ 14,826 Long-term debt (3) 275,609 — 398,016 — Total $ 290,435 $ — $ 398,016 $ 14,826 December 31, 2018 Hierarchy Level (Fair Value) Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 3,698 $ — $ — $ 3,698 Long-term debt (3) 265,571 — 291,837 — Total $ 269,269 $ — $ 291,837 $ 3,698 (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 Consolidated Balance Sheets. (2) During the year ended December 31, 2019 , we acquired a restructuring business that was assigned to the Corporate Finance segment. (3) The carrying values include unamortized deferred debt issue costs and debt discount. |
Schedule of Acquisition-Related Contingent Consideration | The change in our liability for acquisition-related contingent consideration for our Level 3 financial instruments is as follows: Liability for Acquisition-Related Contingent Consideration Balance at December 31, 2016 $ 5,692 Additions (1) 3,426 Accretion for time value of money (2) 1,589 Remeasurement gain (3) 702 Payments (5,161 ) Transfer out (2,498 ) Balance at December 31, 2017 $ 3,750 Accretion for time value of money (2) 479 Payments (531 ) Balance at December 31, 2018 $ 3,698 Additions (1) 9,746 Accretion for time value of money (2) 2,372 Payments (1,000 ) Foreign currency translation adjustment (4) 10 Balance at December 31, 2019 $ 14,826 (1) We acquired restructuring businesses that were assigned to the Corporate Finance segment during the years ended December 31, 2017 and 2019 . (2) Accretion for the time value of money is included in "Selling, general and administrative expenses" on the Consolidated Statements of Comprehensive Income. (3) Remeasurement gain or loss resulting from a change in the fair value of an acquisition's contingent consideration liability is recorded in “Selling, general and administrative expenses” on the Consolidated Statements of Comprehensive Income. (4) Foreign currency translation adjustments are included in "Other comprehensive income (loss), net of tax" on the Consolidated Statements of Comprehensive Income. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Components of Debt Obligations | The table below summarizes the components of the Company’s debt: December 31, 2019 2018 2023 Convertible Notes $ 316,250 $ 316,250 Total debt 316,250 316,250 Less: deferred debt discount (35,393 ) (43,998 ) Less: deferred debt issue costs (5,248 ) (6,681 ) Long-term debt, net (1) $ 275,609 $ 265,571 Additional paid-in capital $ 35,306 $ 35,306 Discount attribution to equity (1,175 ) (1,175 ) Equity component, net $ 34,131 $ 34,131 (1) There were no current portions of long-term debt as of December 31, 2019 and 2018 . |
Summary of Interest Cost | The table below summarizes the amount of interest cost recognized by us for both the contractual interest expense and amortization of the debt discount for the 2023 Convertible Notes: December 31, 2019 2018 Contractual interest expense $ 6,325 $ 2,302 Amortization of debt discount (1) 8,606 3,018 Total $ 14,931 $ 5,320 (1) The effective interest rate of the liability component was 5.45% . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease assets and liabilities | The table below summarizes the carrying amount of our operating lease assets and liabilities: As of Leases Classification December 31, 2019 Assets Operating lease assets Operating lease assets $ 159,777 Total lease assets $ 159,777 Liabilities Current Operating lease liabilities Accounts payable, accrued expenses and other $ 35,727 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 176,378 Total lease liabilities $ 212,105 |
Lease cost | The table below summarizes total lease costs for the year ended December 31, 2019 : Year Ended December 31, Lease Cost 2019 Operating lease costs $ 45,144 Short-term lease costs 3,173 Variable lease costs 11,962 Sublease income (5,015 ) Total lease cost $ 55,264 The table below summarizes cash paid for our operating lease liabilities and other non-cash information: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 46,079 Operating lease assets obtained in exchange for lease liabilities $ 37,774 |
Operating lease maturity analysis | The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases, a reconciliation to operating lease liabilities reported on the Consolidated Balance Sheets, our weighted average remaining lease term and weighted average discount rate: As of December 31, 2019 2020 $ 45,849 2021 51,331 2022 32,194 2023 26,896 2024 23,654 Thereafter 77,162 Total future lease payments 257,086 Less: imputed interest (44,981 ) Total $ 212,105 Weighted average remaining lease term (years) Operating leases 6.5 Weighted average discount rate Operating leases 5.6 % Under ASC 840, Leases , our future minimum payments for all operating lease obligations that have initial non-cancelable lease terms exceeding one year, net of rental income from subleases as of December 31, 2018 , were as follows: Operating Leases Sublease Rental Income 2019 $ 49,757 $ 4,760 2020 47,084 3,944 2021 44,480 3,864 2022 24,471 707 2023 20,309 614 Thereafter 75,190 939 Total $ 261,291 $ 14,828 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Deferred Tax Assets and Liabilities | The table below summarizes significant components of deferred tax assets and liabilities. Year Ended December 31, 2019 2018 Deferred tax assets Allowance for doubtful accounts $ 13,041 $ 11,792 Accrued vacation and bonus 27,438 23,545 Deferred rent — 9,016 Share-based compensation 12,647 11,837 Notes receivable from employees 12,187 12,993 State net operating loss carryforward 2,066 3,510 Foreign net operating loss carryforward 9,388 9,857 Federal tax credit and capital loss carryforward 7,336 9,470 Deferred compensation 2,117 1,801 Operating lease assets 43,397 — Employee benefits obligations 1,191 943 Other, net 1,898 186 Total deferred tax assets 132,706 94,950 Deferred tax liabilities Revenue recognition (6,732 ) (5,087 ) Operating lease liabilities (29,671 ) — Property and equipment, net (3,797 ) (6,652 ) Equity debt discount (8,890 ) (11,014 ) Goodwill and other intangible assets (209,250 ) (199,964 ) Total deferred tax liabilities (258,340 ) (222,717 ) Foreign withholding tax (1,195 ) (413 ) Valuation allowance (19,865 ) (21,929 ) Net deferred tax liabilities $ (146,694 ) $ (150,109 ) |
Summary of Components of Income Before Income Tax Provision from Continuing Operations | The table below summarizes the components of income before income tax provision (benefit) from continuing operations. Year Ended December 31, 2019 2018 2017 Domestic $ 150,860 $ 96,543 $ 30,013 Foreign 137,590 111,249 57,092 Total $ 288,450 $ 207,792 $ 87,105 |
Summary of Components of Income Tax Provision from Continuing Operations | The table below summarizes the components of income tax provision (benefit) from continuing operations. Year Ended December 31, 2019 2018 2017 Current Federal $ 30,651 $ 10,847 $ 15,164 State 7,702 4,447 742 Foreign 37,083 21,056 14,816 75,436 36,350 30,722 Deferred Federal (1,767 ) 14,538 (47,820 ) State 785 503 (152 ) Foreign (2,730 ) 5,790 (3,607 ) (3,712 ) 20,831 (51,579 ) Income tax provision (benefit) $ 71,724 $ 57,181 $ (20,857 ) |
Summary of Income Tax Provision from Continuing Operations Resulted in Effective Tax Rates | Our income tax provision (benefit) from continuing operations resulted in effective tax rates that varied from the statutory federal income tax rate as summarized below. Year Ended December 31, 2019 2018 2017 Income tax expense at federal statutory rate $ 60,575 $ 43,636 $ 30,487 State income taxes, net of federal benefit 8,430 4,950 781 Detriment (benefit) from foreign tax rates 3,425 3,655 (8,500 ) Valuation allowance on foreign net operating loss carryforward 260 (450 ) 253 Other expenses not deductible for tax purposes 4,362 3,543 2,466 Adjustment to reserve for uncertain tax positions 2,504 (132 ) 456 Impact of 2017 U.S. tax reform — deferred tax — (706 ) (63,525 ) Impact of 2017 U.S. tax reform — Transition Tax (1,088 ) 50 18,655 Sale of Ringtail business (2,097 ) 3,798 — Equity-based compensation (4,447 ) (1,371 ) 809 Other adjustments, net (200 ) 208 (2,739 ) Income tax provision (benefit) $ 71,724 $ 57,181 $ (20,857 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | The following table details our stock repurchases under the Repurchase Program: Year Ended December 31, 2019 2018 2017 Shares of common stock repurchased and retired 1,258 756 4,674 Average price per share $ 84.16 $ 53.88 $ 35.94 Total cost $ 105,915 $ 40,722 $ 168,001 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of 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 for the years ended December 31, 2019 , 2018 and 2017 . Year Ended December 31, 2019 2018 2017 Revenues Corporate Finance $ 723,721 $ 564,479 $ 482,041 FLC 577,780 520,333 462,324 Economic Consulting 592,542 533,979 496,029 Technology 215,584 185,755 174,850 Strategic Communications 243,090 223,331 192,488 Total revenues $ 2,352,717 $ 2,027,877 $ 1,807,732 Adjusted Segment EBITDA Corporate Finance $ 160,735 $ 121,660 $ 82,863 FLC 104,435 96,821 72,705 Economic Consulting 84,112 69,955 61,964 Technology 45,688 27,387 22,171 Strategic Communications 44,544 42,918 27,732 Total Adjusted Segment EBITDA $ 439,514 $ 358,741 $ 267,435 |
Schedule of Reconciliation of Net Income to Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization | The table below reconciles net income to Total Adjusted Segment EBITDA. Unallocated corporate expenses primarily include indirect costs related to centrally managed administrative functions that have not been allocated to the segments. These administrative costs include costs related to executive management, legal, corporate office support costs, information technology, accounting, marketing, human resources and company-wide business development and strategy functions. Year Ended December 31, 2019 2018 2017 Net income $ 216,726 $ 150,611 $ 107,962 Add back: Income tax provision (benefit) 71,724 57,181 (20,857 ) Interest income and other (2,061 ) (4,977 ) (3,752 ) Interest expense 19,206 27,149 25,358 Gain on sale of business — (13,031 ) — Loss on early extinguishment of debt — 9,072 — Unallocated corporate expenses 98,398 96,595 83,140 Segment depreciation expense 27,369 27,979 27,112 Amortization of intangible assets 8,152 8,162 10,563 Segment special charges — — 37,207 Remeasurement of acquisition-related contingent consideration — — 702 Total Adjusted Segment EBITDA $ 439,514 $ 358,741 $ 267,435 |
Schedule of Assets by Segments | The table below presents assets by segment. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and other intangible assets. December 31, 2019 2018 Corporate Finance $ 814,820 $ 707,924 FLC 462,155 412,667 Economic Consulting 543,475 516,123 Technology 200,430 171,002 Strategic Communications 217,129 212,147 Total segment assets 2,238,009 2,019,863 Unallocated corporate assets 545,133 359,258 Total assets $ 2,783,142 $ 2,379,121 |
Schedule of Revenues Based on Location of Legal Entity and Information on Long-Lived Assets and Net Assets | The table below details information on our revenues for the years ended December 31, 2019 , 2018 and 2017 . Revenues have been attributed to locations based on the location of the legal entity generating the revenues. Year Ended December 31, 2019 2018 2017 U.S. $ 1,555,133 $ 1,372,116 $ 1,262,682 United Kingdom 389,338 302,576 251,843 All other foreign countries 408,246 353,185 293,207 Total revenues $ 2,352,717 $ 2,027,877 $ 1,807,732 We do not have a single customer that represents 10% or more of our consolidated revenues. The table below details information on our long-lived assets and net assets by geographic location, which is based on the location of the legal entity holding the assets. We define net assets as total assets less total liabilities. December 31, 2019 December 31, 2018 U.S. United Kingdom All Other Foreign Countries U.S. United Kingdom All Other Foreign Countries Property and equipment, net $ 63,563 $ 16,423 $ 13,686 $ 59,611 $ 14,023 $ 10,943 Net assets $ 925,288 $ 196,087 $ 367,767 $ 867,321 $ 160,894 $ 320,610 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Data | Quarter Ended March 31 June 30 September 30 December 31 2019 Revenues $ 551,274 $ 606,119 $ 593,106 $ 602,218 Operating expenses Direct cost of revenues 349,066 386,266 380,892 418,672 Selling, general and administrative expenses 113,185 129,906 127,951 133,032 Amortization of other intangible assets 1,861 1,852 2,125 2,314 464,112 518,024 510,968 554,018 Operating income 87,162 88,095 82,138 48,200 Interest income and other 159 2,609 2,973 (3,680 ) Interest expense (4,746 ) (4,793 ) (4,832 ) (4,835 ) Income before income tax provision 82,575 85,911 80,279 39,685 Income tax provision 19,930 21,313 19,857 10,624 Net income $ 62,645 $ 64,598 $ 60,422 $ 29,061 Earnings per common share — basic (1) $ 1.69 $ 1.75 $ 1.65 $ 0.80 Earnings per common share — diluted (1) $ 1.64 $ 1.69 $ 1.59 $ 0.76 Weighted average common shares outstanding Basic 36,981 36,960 36,617 36,545 Diluted 38,219 38,168 37,938 38,126 Quarter Ended March 31 June 30 September 30 December 31 2018 Revenues $ 497,774 $ 512,098 $ 513,012 $ 504,993 Operating expenses Direct cost of revenues 321,117 330,318 336,477 340,162 Selling, general and administrative expenses 112,128 117,897 117,448 118,163 Amortization of other intangible assets 2,270 2,052 1,975 1,865 435,515 450,267 455,900 460,190 Operating income 62,259 61,831 57,112 44,803 Interest income and other (1,800 ) 2,474 1,400 2,903 Interest expense (6,244 ) (6,583 ) (7,246 ) (7,076 ) Gain on sale of business — — 13,031 — Loss on early extinguishment of debt — — — (9,072 ) Income before income tax provision 54,215 57,722 64,297 31,558 Income tax provision 15,270 14,113 19,964 7,834 Net income $ 38,945 $ 43,609 $ 44,333 $ 23,724 Earnings per common share — basic (1) $ 1.06 $ 1.18 $ 1.19 $ 0.63 Earnings per common share — diluted (1) $ 1.04 $ 1.14 $ 1.14 $ 0.61 Weighted average common shares outstanding Basic 36,700 37,001 37,318 37,368 Diluted 37,612 38,271 38,756 38,628 (1) The sum of the quarterly earnings per share amounts may not equal the annual amounts due to changes in the weighted average number of common shares outstanding during each quarterly period. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 20, 2018USD ($) | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reportable business segments | segment | 5 | |||
Advertising costs | $ 18,600,000 | $ 15,500,000 | $ 14,800,000 | |
Provision for doubtful accounts | $ 19,602,000 | $ 17,872,000 | $ 15,386,000 | |
Forgivable loans, forgiveness period, minimum | 1 year | |||
Forgivable loans, forgiveness period, maximum | 10 years | |||
Definite-lived intangible assets amortization period | 13 years 4 months 24 days | |||
Renewal term | 7 years | |||
Minimum | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Definite-lived intangible assets amortization period | 3 years | |||
Renewal term | 6 months | |||
Maximum | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Definite-lived intangible assets amortization period | 15 years | |||
Renewal term | 7 years | |||
Furniture, Equipment, And Internal-Use Software | Minimum | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful of furniture, equipment and internal use software (in years) | 3 years | |||
Furniture, Equipment, And Internal-Use Software | Maximum | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful of furniture, equipment and internal use software (in years) | 7 years | |||
Software and Software Development Costs | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful of furniture, equipment and internal use software (in years) | 3 years | |||
Geographic Concentration Risk | Consolidated Revenues | Non U.S | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Revenue from the work of professionals | 34.00% | |||
Senior Notes | Convertible Note Due 2023 | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Interest rate (as a percent) | 2.00% | |||
Principal amount | $ 316,300,000 |
New Accounting Standards (Detai
New Accounting Standards (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 159,777 | ||
Operating lease liability | $ 212,105 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 148,500 | ||
Operating lease liability | $ 206,700 | ||
Deferred rent and cease-use liability | $ 62,300 | ||
Prepaid rent | $ 4,100 |
Earnings per Common Share (Deta
Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Common Share [Line Items] | |||||||||||
Conversion price (in dollars per share) | $ 101.38 | $ 101.38 | |||||||||
Numerator — basic and diluted | |||||||||||
Net income | $ 29,061 | $ 60,422 | $ 64,598 | $ 62,645 | $ 23,724 | $ 44,333 | $ 43,609 | $ 38,945 | $ 216,726 | $ 150,611 | $ 107,962 |
Denominator | |||||||||||
Weighted average number of common shares outstanding — basic (in shares) | 36,545 | 36,617 | 36,960 | 36,981 | 37,368 | 37,318 | 37,001 | 36,700 | 36,774 | 37,098 | 38,697 |
Effect of dilutive convertible notes (in shares) | 62 | 0 | 0 | ||||||||
Effect of dilutive stock options (in shares) | 455 | 491 | 117 | ||||||||
Effect of dilutive restricted shares (in shares) | 820 | 729 | 378 | ||||||||
Weighted average number of common shares outstanding — diluted (in shares) | 38,126 | 37,938 | 38,168 | 38,219 | 38,628 | 38,756 | 38,271 | 37,612 | 38,111 | 38,318 | 39,192 |
Earnings per common share — basic (in dollars per share) | $ 0.80 | $ 1.65 | $ 1.75 | $ 1.69 | $ 0.63 | $ 1.19 | $ 1.18 | $ 1.06 | $ 5.89 | $ 4.06 | $ 2.79 |
Earnings per common share — diluted (in dollars per share) | $ 0.76 | $ 1.59 | $ 1.69 | $ 1.64 | $ 0.61 | $ 1.14 | $ 1.14 | $ 1.04 | $ 5.69 | $ 3.93 | $ 2.75 |
Stock Options And Restricted Shares | |||||||||||
Denominator | |||||||||||
Antidilutive stock options and restricted shares (in shares) | 19 | 175 | 1,561 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Revenues recognized related to catch-up adjustment | $ 28.9 | $ 16.1 |
Amount of remaining performance obligation | 8.8 | |
Contract asset balance | 1.3 | $ 2.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Amount of remaining performance obligation | $ 2.3 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining period of performance obligation | 24 months |
Special Charges - Additional In
Special Charges - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Special charges | $ 0 | $ 0 | $ 40,885,000 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | 23,500,000 | ||
Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | 14,400,000 | ||
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | $ 3,000,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 0 | ||
Cash received from option exercises | $ 9,700,000 | $ 41,600,000 | $ 4,100,000 |
Tax benefit realized from stock options exercised | 700,000 | 4,000,000 | 1,100,000 |
Intrinsic value of options exercised | 13,200,000 | 26,400,000 | 900,000 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 100,000 | ||
Unrecognized compensation cost, recognition period (in years) | 2 months 12 days | ||
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 27,500,000 | ||
Unrecognized compensation cost, recognition period (in years) | 4 years | ||
Fair value, released | $ 18,600,000 | 10,400,000 | 9,900,000 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 800,000 | ||
Unrecognized compensation cost, recognition period (in years) | 2 years 9 months 18 days | ||
Fair value, released | $ 4,500,000 | 5,400,000 | 4,100,000 |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 6,300,000 | ||
Unrecognized compensation cost, recognition period (in years) | 1 year 1 month 6 days | ||
Fair value, released | $ 5,800,000 | $ 1,400,000 | $ 0 |
Omnibus Plan 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock available for grant (in shares) | 1,396,183 | ||
Minimum | Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 2 years | ||
Maximum | Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 3,125 | $ 2,807 | $ 1,577 |
Stock options | Direct cost of revenues | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 497 | 780 | 370 |
Stock options | Selling, general and administrative expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 2,628 | 2,027 | 1,207 |
Stock options | Special charges | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 0 | 0 | 0 |
Restricted Shares | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 20,874 | 17,995 | 14,830 |
Restricted Shares | Direct cost of revenues | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 11,869 | 9,804 | 9,691 |
Restricted Shares | Selling, general and administrative expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 9,005 | 8,191 | 4,870 |
Restricted Shares | Special charges | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 0 | $ 0 | $ 269 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Stock Option and Grants Using Valuation Assumptions (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 3 years |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate (as a percent) | 1.60% |
Dividend yield (as a percent) | 0.00% |
Stock price volatility (as a percent) | 31.94% |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Options | |
Stock options outstanding beginning of period (in shares) | 935,000 |
Stock options granted (in shares) | 0 |
Stock options exercised (in shares) | (256,000) |
Stock options forfeited (in shares) | (1,000) |
Stock options outstanding end of period (in shares) | 678,000 |
Stock options exercisable at end of period (in shares) | 605,000 |
Weighted Average Exercise Price | |
Stock options outstanding, Weighted Average Exercise Price, beginning of period (in dollars per share) | $ / shares | $ 36.50 |
Stock options exercised, Weighted Average Exercise Price (in dollars per share) | $ / shares | 37.88 |
Stock options forfeited, Weighted Average Exercise Price (in dollars per share) | $ / shares | 30.28 |
Stock options outstanding, Weighted Average Exercise Price, end of period (in dollars per share) | $ / shares | 35.98 |
Stock options exercisable, end of period, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 35.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Stock options outstanding, Weighted Average Remaining Contractual Term (in Years) | 4 years 8 months 12 days |
Stock options exercisable, Weighted Average Remaining Contractual Term (in Years) | 4 years 7 months 6 days |
Stock options outstanding, Aggregate Intrinsic Value | $ | $ 50,669 |
Stock options exercisable, Aggregate Intrinsic Value | $ | $ 45,343 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Stock Options Outstanding and Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 678,000 |
Options Exercisable, Shares | shares | 605,000 |
$26.68-$33.95 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum (in dollars per share) | $ 26.68 |
Exercise Price Range, maximum (in dollars per share) | $ 33.95 |
Options Outstanding (in shares) | shares | 137,000 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 31.46 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 3 years 8 months 12 days |
Options Exercisable, Shares | shares | 124,000 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 31.53 |
$34.33-$34.62 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum (in dollars per share) | 34.33 |
Exercise Price Range, maximum (in dollars per share) | $ 34.62 |
Options Outstanding (in shares) | shares | 138,000 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 34.40 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 5 years 4 months 24 days |
Options Exercisable, Shares | shares | 138,000 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 34.40 |
$35.73-$36.87 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum (in dollars per share) | 35.73 |
Exercise Price Range, maximum (in dollars per share) | $ 36.87 |
Options Outstanding (in shares) | shares | 195,000 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 36.67 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 4 years 4 months 24 days |
Options Exercisable, Shares | shares | 188,000 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 36.68 |
$36.89-$40.36 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum (in dollars per share) | 36.89 |
Exercise Price Range, maximum (in dollars per share) | $ 40.36 |
Options Outstanding (in shares) | shares | 202,000 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 39.28 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 5 years 4 months 24 days |
Options Exercisable, Shares | shares | 149,000 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 39.12 |
$41.69-$41.69 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum (in dollars per share) | 41.69 |
Exercise Price Range, maximum (in dollars per share) | $ 41.69 |
Options Outstanding (in shares) | shares | 6,000 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 41.69 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 3 months 18 days |
Options Exercisable, Shares | shares | 6,000 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 41.69 |
Share-Based Compensation - Sc_5
Share-Based Compensation - Schedule of Unvested Restricted Share Activity (Detail) - Restricted Shares shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Unvested share awards outstanding, beginning of period (in shares) | shares | 992 |
Awards granted (in shares) | shares | 222 |
Awards vested (in shares) | shares | (229) |
Awards forfeited (in shares) | shares | (28) |
Unvested share awards outstanding, end of period (in shares) | shares | 957 |
Weighted Average Grant Date Fair Value | |
Unvested share awards, Weighted Average Grant Date Fair Value, Beginning of Period (in dollars per share) | $ / shares | $ 43.76 |
Awards granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 81.64 |
Restricted share awards vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 43.04 |
Awards forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 38.87 |
Unvested share awards, Weighted Average Grant Date Fair Value, End of Period (in dollars per share) | $ / shares | $ 52.86 |
Share-Based Compensation - Sc_6
Share-Based Compensation - Schedule of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Unvested share awards outstanding, beginning of period (in shares) | 335 |
Awards granted (in shares) | 30 |
Awards released (in shares) | (52) |
Awards forfeited (in shares) | 0 |
Unvested share awards outstanding, end of period (in shares) | 313 |
Weighted Average Grant Date Fair Value | |
Unvested share awards, Weighted Average Grant Date Fair Value, Beginning of Period (in dollars per share) | $ / shares | $ 39.72 |
Awards granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 82.39 |
Awards released, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 42.15 |
Unvested share awards, Weighted Average Grant Date Fair Value, End of Period (in dollars per share) | $ / shares | $ 43.45 |
Share-Based Compensation - Sc_7
Share-Based Compensation - Schedule of Performance Stock Units Activity (Detail) - Performance Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Unvested share awards outstanding, beginning of period (in shares) | 275 |
Awards granted (in shares) | 170 |
Awards released (in shares) | (84) |
Awards forfeited (in shares) | 0 |
Unvested share awards outstanding, end of period (in shares) | 361 |
Weighted Average Grant Date Fair Value | |
Unvested share awards, Weighted Average Grant Date Fair Value, Beginning of Period (in dollars per share) | $ / shares | $ 42.60 |
Awards granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 77.67 |
Awards released, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 35.75 |
Unvested share awards, Weighted Average Grant Date Fair Value, End of Period (in dollars per share) | $ / shares | $ 60.67 |
Maximum payout potential | 150.00% |
Minimum | |
Weighted Average Grant Date Fair Value | |
Maximum payout potential | 0.00% |
Maximum | |
Weighted Average Grant Date Fair Value | |
Maximum payout potential | 150.00% |
Share-Based Compensation - Sc_8
Share-Based Compensation - Schedule of Weighted-Average Grant Date Fair Value Per Share of Stock Options, Restricted Share Awards, Restricted Stock Units and Performance Stock Units Awarded (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of grants. Stock options (in dollars per share) | $ 0 | $ 0 | $ 9.56 |
Restricted share awards, restricted stock units and performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 80.10 | $ 51.73 | $ 38.88 |
Interest Income and Other (Deta
Interest Income and Other (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||||||||||
Interest income | $ 4,761 | $ 5,448 | $ 3,968 | ||||||||
Foreign exchange transaction gains (losses), net | (3,056) | 261 | (77) | ||||||||
Other | 356 | (732) | (139) | ||||||||
Total | $ (3,680) | $ 2,973 | $ 2,609 | $ 159 | $ 2,903 | $ 1,400 | $ 2,474 | $ (1,800) | $ 2,061 | $ 4,977 | $ 3,752 |
Balance Sheet Details (Detail)
Balance Sheet Details (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid expenses and other current assets | ||
Prepaid expenses | $ 39,740 | $ 35,762 |
Income tax receivable | 8,161 | 18,947 |
Other current assets | 32,909 | 14,739 |
Total | 80,810 | 69,448 |
Accounts payable, accrued expenses and other | ||
Accounts payable | 18,346 | 17,728 |
Accrued expenses | 46,511 | 52,461 |
Accrued interest payable | 2,243 | 2,358 |
Accrued taxes payable | 35,895 | 13,119 |
Current operating lease liabilities | 35,727 | 0 |
Other current liabilities | 20,214 | 18,934 |
Total | $ 158,936 | $ 104,600 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 260,798 | $ 232,560 | |
Accumulated depreciation | (167,126) | (147,983) | |
Property and equipment, net | 93,672 | 84,577 | |
Depreciation expense for property and equipment | 30,100 | 26,200 | $ 24,400 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 99,837 | 88,623 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,359 | 2,754 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 36,698 | 34,865 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 119,904 | $ 106,318 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amounts of Goodwill by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||||
Goodwill | $ 1,366,455 | $ 1,398,942 | ||
Accumulated goodwill impairment | (194,139) | (194,139) | ||
Goodwill beginning of period | 1,172,316 | 1,204,803 | ||
Sale of business | (20,928) | |||
Acquisitions | 27,389 | |||
Foreign currency translation adjustment and other | 3,062 | (11,559) | ||
Goodwill | $ 1,396,906 | 1,396,906 | 1,366,455 | $ 1,398,942 |
Accumulated goodwill impairment | (194,139) | (194,139) | (194,139) | (194,139) |
Goodwill end of period | 1,202,767 | 1,202,767 | 1,172,316 | 1,204,803 |
Proceeds from sale of business | 0 | 50,283 | 0 | |
Corporate Finance | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 450,997 | 454,816 | ||
Accumulated goodwill impairment | 0 | 0 | ||
Goodwill beginning of period | 450,997 | 454,816 | ||
Sale of business | 0 | |||
Acquisitions | 27,389 | |||
Foreign currency translation adjustment and other | 456 | (3,819) | ||
Goodwill | 478,842 | 478,842 | 450,997 | 454,816 |
Accumulated goodwill impairment | 0 | 0 | 0 | 0 |
Goodwill end of period | 478,842 | 478,842 | 450,997 | 454,816 |
Forensic and Litigation Consulting | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 231,537 | 233,719 | ||
Accumulated goodwill impairment | 0 | 0 | ||
Goodwill beginning of period | 231,537 | 233,719 | ||
Sale of business | 0 | |||
Acquisitions | 0 | |||
Foreign currency translation adjustment and other | 583 | (2,182) | ||
Goodwill | 232,120 | 232,120 | 231,537 | 233,719 |
Accumulated goodwill impairment | 0 | 0 | 0 | 0 |
Goodwill end of period | 232,120 | 232,120 | 231,537 | 233,719 |
Economic Consulting | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 268,547 | 268,995 | ||
Accumulated goodwill impairment | 0 | 0 | ||
Goodwill beginning of period | 268,547 | 268,995 | ||
Sale of business | 0 | |||
Acquisitions | 0 | |||
Foreign currency translation adjustment and other | 130 | (448) | ||
Goodwill | 268,677 | 268,677 | 268,547 | 268,995 |
Accumulated goodwill impairment | 0 | 0 | 0 | 0 |
Goodwill end of period | 268,677 | 268,677 | 268,547 | 268,995 |
Technology | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 96,723 | 117,740 | ||
Accumulated goodwill impairment | 0 | 0 | ||
Goodwill beginning of period | 96,723 | 117,740 | ||
Sale of business | (20,928) | |||
Acquisitions | 0 | |||
Foreign currency translation adjustment and other | 47 | (89) | ||
Goodwill | 96,770 | 96,770 | 96,723 | 117,740 |
Accumulated goodwill impairment | 0 | 0 | 0 | 0 |
Goodwill end of period | 96,770 | 96,770 | 96,723 | 117,740 |
Proceeds from sale of business | 50,300 | |||
Strategic Communications | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 318,651 | 323,672 | ||
Accumulated goodwill impairment | (194,139) | (194,139) | ||
Goodwill beginning of period | 124,512 | 129,533 | ||
Sale of business | 0 | |||
Acquisitions | 0 | |||
Foreign currency translation adjustment and other | 1,846 | (5,021) | ||
Goodwill | 320,497 | 320,497 | 318,651 | 323,672 |
Accumulated goodwill impairment | (194,139) | (194,139) | (194,139) | (194,139) |
Goodwill end of period | 126,358 | $ 126,358 | $ 124,512 | $ 129,533 |
Andersch AG | ||||
Goodwill [Roll Forward] | ||||
Acquisitions | $ 27,400 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets by Major Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, Weighted Average Useful Life in Years | 13 years 4 months 24 days | |
Amortized intangible assets, Gross Carrying Amount | $ 112,854 | $ 102,187 |
Amortized intangible assets, Accumulated Amortization | 79,522 | 72,654 |
Amortized intangible assets, Net Carrying Amount | 33,332 | 29,533 |
Unamortized intangible assets, Gross Carrying Amount | 117,954 | 107,287 |
Intangible assets, Net Carrying Amount | 38,432 | 34,633 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets, Gross Carrying Amount | $ 5,100 | 5,100 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, Weighted Average Useful Life in Years | 14 years 2 months 12 days | |
Amortized intangible assets, Gross Carrying Amount | $ 99,613 | 99,080 |
Amortized intangible assets, Accumulated Amortization | 76,808 | 71,036 |
Amortized intangible assets, Net Carrying Amount | $ 22,805 | 28,044 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, Weighted Average Useful Life in Years | 6 years | |
Amortized intangible assets, Gross Carrying Amount | $ 9,855 | 0 |
Amortized intangible assets, Accumulated Amortization | 653 | 0 |
Amortized intangible assets, Net Carrying Amount | $ 9,202 | 0 |
Acquired software and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, Weighted Average Useful Life in Years | 9 years 1 month 6 days | |
Amortized intangible assets, Gross Carrying Amount | $ 3,386 | 3,107 |
Amortized intangible assets, Accumulated Amortization | 2,061 | 1,618 |
Amortized intangible assets, Net Carrying Amount | $ 1,325 | $ 1,489 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Amortization of other intangible assets | $ 2,314 | $ 2,125 | $ 1,852 | $ 1,861 | $ 1,865 | $ 1,975 | $ 2,052 | $ 2,270 | $ 8,152 | $ 8,162 | $ 10,563 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 9,393 | |
2021 | 8,861 | |
2022 | 7,028 | |
2023 | 3,604 | |
2024 | 2,207 | |
Thereafter | 2,239 | |
Amortized intangible assets, Net Carrying Amount | $ 33,332 | $ 29,533 |
Notes Receivable from Employe_3
Notes Receivable from Employees - Summary of Changes in Carrying Amount of Notes Receivable From Employees (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||||
Notes receivable from employees — beginning | $ 113,699 | $ 123,796 | ||
Notes granted | 28,879 | 32,937 | ||
Repayments | (13,179) | (5,405) | ||
Amortization | (26,294) | (36,418) | ||
Cumulative translation adjustment and other | 1,034 | (1,211) | ||
Notes receivable from employees — ending | $ 113,699 | $ 123,796 | $ 104,139 | $ 113,699 |
Less: current portion | (35,106) | (29,228) | ||
Notes receivable from employees, net of current portion | $ 69,033 | $ 84,471 |
Notes Receivable from Employe_4
Notes Receivable from Employees - Additional information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)note | Dec. 31, 2018USD ($)note | Dec. 31, 2017USD ($) | |
Receivables [Abstract] | |||
Notes outstanding (in notes) | note | 303 | 294 | |
Amortization of forgivable loan expense | $ | $ 26.3 | $ 36.4 | $ 26.8 |
Financial Instruments - Carryin
Financial Instruments - Carrying And Estimated Fair Value Of Other Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | $ 14,826 | $ 3,698 |
Long-term debt | 275,609 | 265,571 |
Total | 290,435 | 269,269 |
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 | 398,016 | 291,837 |
Total | 398,016 | 291,837 |
Level 3 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | 14,826 | 3,698 |
Long-term debt | 0 | 0 |
Total | $ 14,826 | $ 3,698 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | Dec. 31, 2019USD ($) |
Measurement Input, Discount Rate | Probability Weighted | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.135 |
Measurement Input, Discount Rate | Monte Carlo | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.136 |
Measurement Input, Price Volatility | Monte Carlo | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.300 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | $ 3,698 | $ 3,750 | $ 5,692 |
Additions | 9,746 | 3,426 | |
Accretion for time value of money | 2,372 | 479 | 1,589 |
Remeasurement gain | 702 | ||
Payments | (1,000) | (531) | (5,161) |
Transfer out | (2,498) | ||
Foreign currency translation adjustment | 10 | ||
Ending balance | $ 14,826 | $ 3,698 | $ 3,750 |
Debt - Summary of Components of
Debt - Summary of Components of Long-Term Debt Obligations (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Total debt | $ 316,250,000 | $ 316,250,000 | |
Less: deferred debt discount | (35,393,000) | (43,998,000) | |
Less: deferred debt issue costs | (5,248,000) | (6,681,000) | |
Long-term debt, net | 275,609,000 | 265,571,000 | |
Additional paid-in capital | 35,306,000 | 35,306,000 | |
Discount attribution to equity | (1,175,000) | (1,175,000) | |
Equity component, net | 34,131,000 | 34,131,000 | |
Long-term debt, current portion | 0 | $ 0 | |
Convertible Note Due 2023 | |||
Debt Instrument [Line Items] | |||
Total debt | 316,250,000 | 316,250,000 | |
Line of Credit | Credit facility | |||
Debt Instrument [Line Items] | |||
Less: deferred debt issue costs | (2,000,000) | $ (3,600,000) | |
Long-term Line of Credit | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Aug. 20, 2018USD ($)$ / shares | Nov. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 15, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 101.38 | |||||||||
Loss on early extinguishment of debt | $ (9,072,000) | $ 0 | $ 0 | $ 0 | $ 0 | $ (9,072,000) | $ 0 | |||
Unamortized debt issue costs | 6,681,000 | 5,248,000 | 6,681,000 | |||||||
Senior Notes | Convertible Note Due 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 316,300,000 | |||||||||
Interest rate (as a percent) | 2.00% | |||||||||
Conversion rate | 9.8643 | |||||||||
Conversion price (in dollars per share) | $ / shares | $ 101.38 | |||||||||
Senior Notes | 6% senior notes due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 300,000,000 | |||||||||
Interest rate (as a percent) | 6.00% | |||||||||
Redemption premium | 6,000,000 | |||||||||
Write off of deferred debt issuance cost | 3,100,000 | |||||||||
Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing limit used | 1,000,000 | |||||||||
Line of Credit | Credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior secured revolving line of credit | $ 550,000,000 | |||||||||
Line of credit, maturity date | Jun. 26, 2020 | |||||||||
Debt issuance costs | $ 1,700,000 | |||||||||
Borrowings outstanding | $ 0 | |||||||||
Unamortized debt issue costs | $ 3,600,000 | $ 2,000,000 | $ 3,600,000 | |||||||
Line of Credit | Credit facility | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee (as a percent) | 0.20% | |||||||||
Fronting fees (as a percent) | 1.25% | |||||||||
Line of Credit | Credit facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread (as a percent) | 1.25% | |||||||||
Line of Credit | Credit facility | Minimum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread (as a percent) | 0.25% | |||||||||
Line of Credit | Credit facility | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee (as a percent) | 0.35% | |||||||||
Fronting fees (as a percent) | 2.00% | |||||||||
Line of Credit | Credit facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread (as a percent) | 2.00% | |||||||||
Line of Credit | Credit facility | Maximum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread (as a percent) | 1.00% | |||||||||
Debt Instrument, Redemption, Period One | Senior Notes | Convertible Note Due 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 130.00% | |||||||||
Debt Instrument, Redemption, Period Two | Senior Notes | Convertible Note Due 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 98.00% |
Debt - Interest Cost Recognized
Debt - Interest Cost Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Amortization of debt discount and issuance costs | $ 11,615 | $ 5,456 | $ 1,984 |
Senior Notes | Convertible Note Due 2023 | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 6,325 | 2,302 | |
Amortization of debt discount and issuance costs | 8,606 | 3,018 | |
Interest expense | $ 14,931 | $ 5,320 | |
Effective interest rate | 5.45% |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Renewal term | 7 years |
2020 | $ 4.9 |
2021 | 4.5 |
2022 | 0.7 |
2023 | 0.6 |
2024 | 0.6 |
Thereafter | $ 0.3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 6 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 7 years |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease assets | $ 159,777 | |
Current operating lease liabilities | 35,727 | $ 0 |
Noncurrent operating lease liabilities | 176,378 | |
Total lease liabilities | $ 212,105 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 45,144 |
Short-term lease costs | 3,173 |
Variable lease costs | 11,962 |
Sublease income | (5,015) |
Total lease cost | $ 55,264 |
Leases - Maturity Analysis (Det
Leases - Maturity Analysis (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 45,849 |
2021 | 51,331 |
2022 | 32,194 |
2023 | 26,896 |
2024 | 23,654 |
Thereafter | 77,162 |
Total future lease payments | 257,086 |
Less: imputed interest | (44,981) |
Total lease liabilities | $ 212,105 |
Weighted average remaining lease term (years) | |
Weighted average remaining lease term (years) | 6 years 6 months |
Weighted average discount rate | |
Weighted average discount rate | 5.60% |
Leases - Cash Paid For Operatin
Leases - Cash Paid For Operating Leases and Noncash Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 46,079 |
Operating lease assets obtained in exchange for lease liabilities | $ 37,774 |
Leases - Operating Lease Commit
Leases - Operating Lease Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 49,757 |
2020 | 47,084 |
2021 | 44,480 |
2022 | 24,471 |
2023 | 20,309 |
Thereafter | 75,190 |
Total | 261,291 |
Sublease Rental Income | |
2019 | 4,760 |
2020 | 3,944 |
2021 | 3,864 |
2022 | 707 |
2023 | 614 |
Thereafter | 939 |
Total | $ 14,828 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Valuation allowance | $ 19,865 | $ 21,929 | $ 19,865 | $ 21,929 | |||||||
Deferred tax liability not recognized related to tax basis difference in investment in foreign subsidiaries | 22,900 | 22,900 | |||||||||
Income tax provision | 10,624 | $ 19,857 | $ 21,313 | $ 19,930 | 7,834 | $ 19,964 | $ 14,113 | $ 15,270 | 71,724 | 57,181 | $ (20,857) |
Liability for uncertain tax positions | $ 11,100 | $ 3,700 | $ 11,100 | $ 3,700 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets, Gross [Abstract] | ||
Allowance for doubtful accounts | $ 13,041 | $ 11,792 |
Accrued vacation and bonus | 27,438 | 23,545 |
Deferred rent | 0 | 9,016 |
Share-based compensation | 12,647 | 11,837 |
Notes receivable from employees | 12,187 | 12,993 |
State net operating loss carryforward | 2,066 | 3,510 |
Foreign net operating loss carryforward | 9,388 | 9,857 |
Federal tax credit and capital loss carryforward | 7,336 | 9,470 |
Deferred compensation | 2,117 | 1,801 |
Operating lease assets | 43,397 | |
Employee benefits obligations | 1,191 | 943 |
Other, net | 1,898 | 186 |
Total deferred tax assets | 132,706 | 94,950 |
Deferred tax liabilities | ||
Revenue recognition | (6,732) | (5,087) |
Operating lease liabilities | (29,671) | |
Property and equipment, net | (3,797) | (6,652) |
Equity debt discount | (8,890) | (11,014) |
Goodwill and other intangible assets | (209,250) | (199,964) |
Total deferred tax liabilities | (258,340) | (222,717) |
Foreign withholding tax | (1,195) | (413) |
Valuation allowance | (19,865) | (21,929) |
Net deferred tax liabilities | $ (146,694) | $ (150,109) |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Income Before Income Tax Provision from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 150,860 | $ 96,543 | $ 30,013 | ||||||||
Foreign | 137,590 | 111,249 | 57,092 | ||||||||
Income before income tax provision | $ 39,685 | $ 80,279 | $ 85,911 | $ 82,575 | $ 31,558 | $ 64,297 | $ 57,722 | $ 54,215 | $ 288,450 | $ 207,792 | $ 87,105 |
Income Taxes - Summary of Com_3
Income Taxes - Summary of Components of Income Tax Provision from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||||||||||
Federal | $ 30,651 | $ 10,847 | $ 15,164 | ||||||||
State | 7,702 | 4,447 | 742 | ||||||||
Foreign | 37,083 | 21,056 | 14,816 | ||||||||
Current, Total | 75,436 | 36,350 | 30,722 | ||||||||
Deferred | |||||||||||
Federal | (1,767) | 14,538 | (47,820) | ||||||||
State | 785 | 503 | (152) | ||||||||
Foreign | (2,730) | 5,790 | (3,607) | ||||||||
Deferred, Total | (3,712) | 20,831 | (51,579) | ||||||||
Income tax provision (benefit) | $ 10,624 | $ 19,857 | $ 21,313 | $ 19,930 | $ 7,834 | $ 19,964 | $ 14,113 | $ 15,270 | $ 71,724 | $ 57,181 | $ (20,857) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision from Continuing Operations Resulted in Effective Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense at federal statutory rate | $ 60,575 | $ 43,636 | $ 30,487 | ||||||||
State income taxes, net of federal benefit | 8,430 | 4,950 | 781 | ||||||||
Detriment (benefit) from foreign tax rates | 3,425 | 3,655 | (8,500) | ||||||||
Valuation allowance on foreign net operating loss carryforward | 260 | (450) | 253 | ||||||||
Other expenses not deductible for tax purposes | 4,362 | 3,543 | 2,466 | ||||||||
Adjustment to reserve for uncertain tax positions | 2,504 | (132) | 456 | ||||||||
Impact of 2017 U.S. tax reform — deferred tax | 0 | (706) | (63,525) | ||||||||
Impact of 2017 U.S. tax reform — Transition Tax | (1,088) | 50 | 18,655 | ||||||||
Sale of Ringtail business | (2,097) | 3,798 | 0 | ||||||||
Equity-based compensation | (4,447) | (1,371) | 809 | ||||||||
Other adjustments, net | (200) | 208 | (2,739) | ||||||||
Income tax provision (benefit) | $ 10,624 | $ 19,857 | $ 21,313 | $ 19,930 | $ 7,834 | $ 19,964 | $ 14,113 | $ 15,270 | $ 71,724 | $ 57,181 | $ (20,857) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Aug. 16, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 21, 2019 | Aug. 13, 2018 | Dec. 01, 2017 | May 18, 2017 | Jun. 02, 2016 |
Stockholders Equity [Line Items] | |||||||||
Total cost | $ 105,941,000 | $ 55,738,000 | $ 168,094,000 | ||||||
2016 Stock Repurchase Program | |||||||||
Stockholders Equity [Line Items] | |||||||||
Share repurchase program authorized amount | $ 400,000,000 | $ 100,000,000 | |||||||
Stock repurchase program additional amount authorized | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||
Available amount under repurchase program | $ 66,600,000 | ||||||||
Shares of common stock repurchased and retired (in shares) | 1,258,000 | 756,000 | 4,674,000 | ||||||
Average price per share (in dollars per share) | $ 84.16 | $ 53.88 | $ 35.94 | ||||||
Total cost | $ 105,915,000 | $ 40,722,000 | $ 168,001,000 | ||||||
2018 Stock Repurchase Program | |||||||||
Stockholders Equity [Line Items] | |||||||||
Share repurchase program authorized amount | $ 25,000,000 | ||||||||
Shares of common stock repurchased and retired (in shares) | 196,050 | ||||||||
Average price per share (in dollars per share) | $ 76.51 | ||||||||
Total cost | $ 15,000,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Total cost | $ 105,941 | $ 55,738 | $ 168,094 |
2016 Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Shares of common stock repurchased and retired (in shares) | 1,258 | 756 | 4,674 |
Average price per share (in dollars per share) | $ 84.16 | $ 53.88 | $ 35.94 |
Total cost | $ 105,915 | $ 40,722 | $ 168,001 |
Employee Benefit Plans (Detail)
Employee Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contributions to plan | $ 17.4 | $ 15.2 | $ 11.6 |
United Kingdom | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contributions to plan | $ 7.3 | $ 7.7 | $ 6.4 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments (in 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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 602,218 | $ 593,106 | $ 606,119 | $ 551,274 | $ 504,993 | $ 513,012 | $ 512,098 | $ 497,774 | $ 2,352,717 | $ 2,027,877 | $ 1,807,732 |
Adjusted Segment EBITDA | 439,514 | 358,741 | 267,435 | ||||||||
Corporate Finance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 723,721 | 564,479 | 482,041 | ||||||||
Adjusted Segment EBITDA | 160,735 | 121,660 | 82,863 | ||||||||
FLC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 577,780 | 520,333 | 462,324 | ||||||||
Adjusted Segment EBITDA | 104,435 | 96,821 | 72,705 | ||||||||
Economic Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 592,542 | 533,979 | 496,029 | ||||||||
Adjusted Segment EBITDA | 84,112 | 69,955 | 61,964 | ||||||||
Technology | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 215,584 | 185,755 | 174,850 | ||||||||
Adjusted Segment EBITDA | 45,688 | 27,387 | 22,171 | ||||||||
Strategic Communications | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 243,090 | 223,331 | 192,488 | ||||||||
Adjusted Segment EBITDA | $ 44,544 | $ 42,918 | $ 27,732 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||||||||
Net income | $ 29,061 | $ 60,422 | $ 64,598 | $ 62,645 | $ 23,724 | $ 44,333 | $ 43,609 | $ 38,945 | $ 216,726 | $ 150,611 | $ 107,962 |
Income tax provision (benefit) | 10,624 | 19,857 | 21,313 | 19,930 | 7,834 | 19,964 | 14,113 | 15,270 | 71,724 | 57,181 | (20,857) |
Interest income and other | 3,680 | (2,973) | (2,609) | (159) | (2,903) | (1,400) | (2,474) | 1,800 | (2,061) | (4,977) | (3,752) |
Interest expense | $ 4,835 | $ 4,832 | $ 4,793 | $ 4,746 | 7,076 | 7,246 | 6,583 | 6,244 | 19,206 | 27,149 | 25,358 |
Gain on sale of business | 0 | (13,031) | 0 | 0 | 0 | (13,031) | 0 | ||||
Loss on early extinguishment of debt | $ 9,072 | $ 0 | $ 0 | $ 0 | 0 | 9,072 | 0 | ||||
Unallocated corporate expenses | 98,398 | 96,595 | 83,140 | ||||||||
Segment depreciation expense | 27,369 | 27,979 | 27,112 | ||||||||
Amortization of intangible assets | 8,152 | 8,162 | 10,563 | ||||||||
Segment special charges | 0 | 0 | 37,207 | ||||||||
Remeasurement of acquisition-related contingent consideration | 0 | 0 | 702 | ||||||||
Adjusted Segment EBITDA | $ 439,514 | $ 358,741 | $ 267,435 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Assets by Segments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,783,142 | $ 2,379,121 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,238,009 | 2,019,863 |
Operating Segments | Corporate Finance & Restructuring | ||
Segment Reporting Information [Line Items] | ||
Total assets | 814,820 | 707,924 |
Operating Segments | Forensic and Litigation Consulting | ||
Segment Reporting Information [Line Items] | ||
Total assets | 462,155 | 412,667 |
Operating Segments | Economic Consulting | ||
Segment Reporting Information [Line Items] | ||
Total assets | 543,475 | 516,123 |
Operating Segments | Technology | ||
Segment Reporting Information [Line Items] | ||
Total assets | 200,430 | 171,002 |
Operating Segments | Strategic Communications | ||
Segment Reporting Information [Line Items] | ||
Total assets | 217,129 | 212,147 |
Unallocated corporate assets | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 545,133 | $ 359,258 |
Segment Reporting - Revenues Ba
Segment Reporting - Revenues Based on Location of Legal Entity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 602,218 | $ 593,106 | $ 606,119 | $ 551,274 | $ 504,993 | $ 513,012 | $ 512,098 | $ 497,774 | $ 2,352,717 | $ 2,027,877 | $ 1,807,732 |
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,555,133 | 1,372,116 | 1,262,682 | ||||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 389,338 | 302,576 | 251,843 | ||||||||
All other foreign countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 408,246 | $ 353,185 | $ 293,207 |
Segment Reporting - Information
Segment Reporting - Information on Long-Lived Assets and Net Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 93,672 | $ 84,577 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 63,563 | 59,611 |
Net assets | 925,288 | 867,321 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 16,423 | 14,023 |
Net assets | 196,087 | 160,894 |
All other foreign countries | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 13,686 | 10,943 |
Net assets | $ 367,767 | $ 320,610 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 602,218 | $ 593,106 | $ 606,119 | $ 551,274 | $ 504,993 | $ 513,012 | $ 512,098 | $ 497,774 | $ 2,352,717 | $ 2,027,877 | $ 1,807,732 |
Operating expenses | |||||||||||
Direct cost of revenues | 418,672 | 380,892 | 386,266 | 349,066 | 340,162 | 336,477 | 330,318 | 321,117 | 1,534,896 | 1,328,074 | 1,215,560 |
Selling, general and administrative expenses | 133,032 | 127,951 | 129,906 | 113,185 | 118,163 | 117,448 | 117,897 | 112,128 | 504,074 | 465,636 | 432,013 |
Amortization of other intangible assets | 2,314 | 2,125 | 1,852 | 1,861 | 1,865 | 1,975 | 2,052 | 2,270 | 8,152 | 8,162 | 10,563 |
Costs and Expenses | 554,018 | 510,968 | 518,024 | 464,112 | 460,190 | 455,900 | 450,267 | 435,515 | 2,047,122 | 1,801,872 | 1,699,021 |
Operating income | 48,200 | 82,138 | 88,095 | 87,162 | 44,803 | 57,112 | 61,831 | 62,259 | 305,595 | 226,005 | 108,711 |
Interest income and other | (3,680) | 2,973 | 2,609 | 159 | 2,903 | 1,400 | 2,474 | (1,800) | 2,061 | 4,977 | 3,752 |
Interest expense | (4,835) | (4,832) | (4,793) | (4,746) | (7,076) | (7,246) | (6,583) | (6,244) | (19,206) | (27,149) | (25,358) |
Gain on sale of business | 0 | 13,031 | 0 | 0 | 0 | 13,031 | 0 | ||||
Loss on early extinguishment of debt | (9,072) | 0 | 0 | 0 | 0 | (9,072) | 0 | ||||
Income before income tax provision | 39,685 | 80,279 | 85,911 | 82,575 | 31,558 | 64,297 | 57,722 | 54,215 | 288,450 | 207,792 | 87,105 |
Income tax provision | 10,624 | 19,857 | 21,313 | 19,930 | 7,834 | 19,964 | 14,113 | 15,270 | 71,724 | 57,181 | (20,857) |
Net income | $ 29,061 | $ 60,422 | $ 64,598 | $ 62,645 | $ 23,724 | $ 44,333 | $ 43,609 | $ 38,945 | $ 216,726 | $ 150,611 | $ 107,962 |
Earnings per common share — basic (in dollars per share) | $ 0.80 | $ 1.65 | $ 1.75 | $ 1.69 | $ 0.63 | $ 1.19 | $ 1.18 | $ 1.06 | $ 5.89 | $ 4.06 | $ 2.79 |
Earnings per common share — diluted (in dollars per share) | $ 0.76 | $ 1.59 | $ 1.69 | $ 1.64 | $ 0.61 | $ 1.14 | $ 1.14 | $ 1.04 | $ 5.69 | $ 3.93 | $ 2.75 |
Weighted average common shares outstanding | |||||||||||
Basic (in shares) | 36,545 | 36,617 | 36,960 | 36,981 | 37,368 | 37,318 | 37,001 | 36,700 | 36,774 | 37,098 | 38,697 |
Diluted (in shares) | 38,126 | 37,938 | 38,168 | 38,219 | 38,628 | 38,756 | 38,271 | 37,612 | 38,111 | 38,318 | 39,192 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts and unbilled services | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 202,394 | $ 180,687 | $ 178,819 |
Charged to Expense | 19,602 | 17,872 | 15,386 |
Charged to Other Accounts | 56,238 | 25,300 | 9,656 |
Deductions | 12,734 | 21,465 | 23,174 |
Balance at End of Period | 265,500 | 202,394 | 180,687 |
Valuation allowance for deferred tax asset | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 21,929 | 21,621 | 18,900 |
Charged to Expense | 0 | 308 | 2,721 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 2,064 | 0 | 0 |
Balance at End of Period | $ 19,865 | $ 21,929 | $ 21,621 |