Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 17, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
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, State or Province | DC | ||
Entity Address, Postal Zip Code | 20004 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.7 | ||
Entity Common Stock, Shares Outstanding | 34,240,806 | ||
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 2020 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 | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000887936 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 294,953,000 | $ 369,373,000 |
Accounts receivable, net | 711,357,000 | 693,372,000 |
Current portion of notes receivable | 35,253,000 | 35,106,000 |
Prepaid expenses and other current assets | 88,144,000 | 80,810,000 |
Total current assets | 1,129,707,000 | 1,178,661,000 |
Property and equipment, net | 101,642,000 | 93,672,000 |
Operating lease assets | 156,645,000 | 159,777,000 |
Goodwill | 1,234,879,000 | 1,202,767,000 |
Intangible assets, net | 41,550,000 | 38,432,000 |
Notes receivable, net | 61,121,000 | 69,033,000 |
Other assets | 51,819,000 | 40,800,000 |
Total assets | 2,777,363,000 | 2,783,142,000 |
Current liabilities | ||
Accounts payable, accrued expenses and other | 170,066,000 | 158,936,000 |
Accrued compensation | 455,933,000 | 416,903,000 |
Billings in excess of services provided | 44,172,000 | 36,698,000 |
Total current liabilities | 670,171,000 | 612,537,000 |
Long-term debt, net | 286,131,000 | 275,609,000 |
Noncurrent operating lease liabilities | 161,677,000 | 176,378,000 |
Deferred income taxes | 158,342,000 | 151,352,000 |
Other liabilities | 100,861,000 | 78,124,000 |
Total liabilities | 1,377,182,000 | 1,294,000,000 |
Commitments and contingencies | ||
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 — 34,481 (2020) and 37,390 (2019) | 345,000 | 374,000 |
Additional paid-in capital | 0 | 216,162,000 |
Retained earnings | 1,506,271,000 | 1,413,453,000 |
Accumulated other comprehensive loss | (106,435,000) | (140,847,000) |
Total stockholders' equity | 1,400,181,000 | 1,489,142,000 |
Total liabilities and stockholders' equity | $ 2,777,363,000 | $ 2,783,142,000 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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) | 34,481,000 | 37,390,000 |
Common stock, shares outstanding (in shares) | 34,481,000 | 37,390,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues | $ 2,461,275 | $ 2,352,717 | $ 2,027,877 |
Operating expenses | |||
Direct cost of revenues | 1,672,711 | 1,534,896 | 1,328,074 |
Selling, general and administrative expenses | 488,411 | 504,074 | 465,636 |
Special charges | 7,103 | 0 | 0 |
Amortization of intangible assets | 10,387 | 8,152 | 8,162 |
Costs and Expenses | 2,178,612 | 2,047,122 | 1,801,872 |
Operating income | 282,663 | 305,595 | 226,005 |
Other income (expense) | |||
Interest income and other | (412) | 2,061 | 4,977 |
Interest expense | (19,805) | (19,206) | (27,149) |
Gain on sale of business | 0 | 0 | 13,031 |
Loss on early extinguishment of debt | 0 | 0 | (9,072) |
Other income (expense) | (20,217) | (17,145) | (18,213) |
Income before income tax provision | 262,446 | 288,450 | 207,792 |
Income tax provision | 51,764 | 71,724 | 57,181 |
Net income | $ 210,682 | $ 216,726 | $ 150,611 |
Earnings per common share — basic (in dollars per share) | $ 5.92 | $ 5.89 | $ 4.06 |
Earnings per common share — diluted (in dollars per share) | $ 5.67 | $ 5.69 | $ 3.93 |
Other comprehensive income (loss), net of tax | |||
Cumulative translation adjustment | $ 34,412 | $ 6,970 | $ (27,602) |
Total other comprehensive income (loss), net of tax | 34,412 | 6,970 | (27,602) |
Comprehensive income | $ 245,094 | $ 223,696 | $ 123,009 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Foreign currency translation adjustments, tax expense | $ 0 | $ 0 | $ 373,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2017 | 37,729 | ||||||
Beginning Balance at Dec. 31, 2017 | $ 1,191,971 | $ 342 | $ 377 | $ 266,035 | $ 1,045,774 | $ 342 | $ (120,215) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 150,611 | 150,611 | |||||
Other comprehensive loss: | |||||||
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) | ||||
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 | ||||||
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 loss: | |||||||
Cumulative translation adjustment | 6,970 | 6,970 | |||||
Issuance of common stock in connection with: | |||||||
Exercise of options (in shares) | 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) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 210,682 | 210,682 | |||||
Other comprehensive loss: | |||||||
Cumulative translation adjustment | $ 34,412 | 34,412 | |||||
Issuance of common stock in connection with: | |||||||
Exercise of options (in shares) | 140 | 140 | |||||
Exercise of options | $ 4,934 | $ 1 | 4,933 | ||||
Restricted share grants (in shares) | 220 | ||||||
Restricted share grants | (10,756) | $ 3 | (10,759) | ||||
Stock units issued under incentive compensation plan | 2,314 | 2,314 | |||||
Purchase and retirement of common stock (in shares) | (3,269) | ||||||
Purchase and retirement of common stock | (353,451) | $ (33) | (235,554) | ||||
Share-based compensation | $ 22,904 | 22,904 | |||||
Ending Balance (in shares) at Dec. 31, 2020 | 34,481 | 34,481 | |||||
Ending Balance at Dec. 31, 2020 | $ 1,400,181 | $ 345 | $ 0 | $ 1,506,271 | $ (106,435) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Restricted share grants, settled (in shares) | 93 | 78 | 58 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net income | $ 210,682 | $ 216,726 | $ 150,611 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 32,661 | 30,153 | 31,536 |
Amortization and impairment of intangible assets | 10,387 | 8,152 | 8,162 |
Acquisition-related contingent consideration | 5,593 | 2,372 | 479 |
Provision for expected credit losses | 19,692 | 19,602 | 17,872 |
Share-based compensation | 22,904 | 17,978 | 15,577 |
Amortization of debt discount and issuance costs | 11,214 | 11,615 | 5,456 |
Loss on early extinguishment of debt | 0 | 0 | 9,072 |
Gain on sale of business | 0 | 0 | (13,031) |
Deferred income taxes | (9,132) | (3,712) | 20,831 |
Other | 45 | 302 | 769 |
Changes in operating assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable, billed and unbilled | (26,800) | (141,894) | (72,034) |
Notes receivable | 8,029 | 10,445 | 8,987 |
Prepaid expenses and other assets | 4,640 | (22,648) | (2,258) |
Accounts payable, accrued expenses and other | 13,901 | (8,907) | 8,908 |
Income taxes | (22,549) | 24,496 | (8,890) |
Accrued compensation | 38,627 | 61,339 | 52,510 |
Billings in excess of services provided | 7,175 | (8,133) | (3,885) |
Net cash provided by operating activities | 327,069 | 217,886 | 230,672 |
Investing activities | |||
Payments for acquisition of businesses, net of cash received | (25,271) | (18,791) | 0 |
Purchases of property and equipment | (34,866) | (42,072) | (32,270) |
Proceeds from sale of business | 0 | 0 | 50,283 |
Other | 17 | 257 | 731 |
Net cash provided by (used in) investing activities | (60,120) | (60,606) | 18,744 |
Financing activities | |||
Borrowings under revolving line of credit | 289,500 | 45,000 | 233,500 |
Repayments under revolving line of credit | (289,500) | (45,000) | (333,500) |
Proceeds from issuance of convertible notes | 0 | 0 | 316,250 |
Payments of long-term debt | 0 | 0 | (300,000) |
Payments of debt issue and debt prepayment costs | 0 | 0 | (16,149) |
Purchase and retirement of common stock | (353,593) | (105,797) | (55,738) |
Net issuance of common stock under equity compensation plans | (5,823) | 3,171 | 38,475 |
Payments for business acquisition liabilities | (3,948) | (2,282) | (3,029) |
Deposits and other | 3,311 | 1,597 | 2,672 |
Net cash used in financing activities | (360,053) | (103,311) | (117,519) |
Effect of exchange rate changes on cash and cash equivalents | 18,684 | 3,335 | (9,789) |
Net increase (decrease) in cash and cash equivalents | (74,420) | 57,304 | 122,108 |
Cash and cash equivalents, beginning of period | 369,373 | 312,069 | 189,961 |
Cash and cash equivalents, end of period | 294,953 | 369,373 | 312,069 |
Supplemental cash flow disclosures | |||
Cash paid for interest | 7,752 | 7,606 | 21,687 |
Cash paid for income taxes, net of refunds | 83,445 | 50,941 | 45,568 |
Non-cash investing and financing activities: | |||
Issuance of stock units under incentive compensation plans | 2,314 | 1,413 | 1,059 |
Business acquisition liabilities not yet paid | $ 6,209 | $ 9,746 | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 & 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 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 revenues and the assessment of the recoverability of goodwill and intangible assets. Other estimates include, but are not limited to, the realization of deferred tax assets and the fair value of acquisition-related contingent consideration. Management bases its estimates on historical trends, projections, 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, 2020, we derived approximately 37% 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 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. 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 contract 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 contract 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). • Fixed-fee arrangements require the client to pay a fixed fee in exchange for a predetermined set of professional services. We recognize revenues earned to date by applying the proportional performance method. Generally, these arrangements 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 in an amount that is probable not to reverse and by applying the proportional performance method when the criteria for over time revenue recognition are met. Certain fees in our time and materials arrangements may be subject to approval by a third-party, such as a bankruptcy court and other regulatory agency. In such cases, we record revenues based on the amount we estimate we will be entitled to in exchange for our services and only to the extent a significant reversal of revenue is not likely to occur when the uncertainty associated with the estimate is subsequently resolved. Potential fee reductions imposed by bankruptcy courts and other regulatory agencies or negotiated with specific clients are estimated on a specific identification basis. Our estimates may vary depending on the nature of the engagement, client economics, historical experience and other appropriate factors. When there are changes in our estimates of potential fee reductions, we record such changes to revenues with a corresponding offset to our billed and unbilled accounts receivable. In our Technology segment we generate unit-based revenues that are recognized at agreed-upon per unit rates for 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. 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. Timing of revenue recognition often differs from the timing of billing to our customers. Generally, we transfer goods or services to a customer before the customer pays consideration or payment is due. If we have an unconditional right to invoice and receive payment for goods or services already provided, we record billed and unbilled receivables on our Consolidated Balance Sheets. Our contract terms generally include a requirement of payment within 30 days when no contingencies exist. Payment terms and conditions vary depending on the jurisdiction, market and type of service, and whether regulatory or other third-party approvals are required. At times, we may execute contracts in a form provided by customers that might include different payment terms and contracts may be negotiated at the client’s request. 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 and 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. Acquisition-Related Contingent Consideration The fair value of acquisition-related contingent consideration is estimated at the acquisition date utilizing either the present value of our probability-weighted estimate of future cash flows 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” ("SG&A") expenses. on the Consolidated Statements of Comprehensive Income. 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 $15.2 million, $18.6 million and $15.5 million for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in SG&A expenses on the Consolidated Statements of Comprehensive Income. Income Taxes Our income tax provision 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. and in 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 Expected Credit Losses We estimate the current-period provision for expected credit losses on a specific identification basis. Our judgments regarding a specific client’s credit risk considers factors such as the counterparty’s creditworthiness, knowledge of the specific client’s circumstances and historical collection experience for similar clients. Other factors include, but are not limited to, current economic conditions and forward-looking estimates. Our actual experience may vary from our estimates. If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay our fees, we may need to record additional provisions for expected credit losses in future periods. The risk of credit losses may be mitigated to the extent that we received a retainer from some of our clients prior to performing services. We maintain an allowance for expected credit losses, which represents the aggregate amount of credit risk arising from the inability of specific clients to pay our fees or disputes that may affect our ability to fully collect our billed accounts receivable. We record our estimate of lifetime expected credit losses concurrently with the initial recognition of the underlying receivable. Accounts receivable, net of the allowance for expected credit losses, represents the amount we expect to collect. At each reporting date, we adjust the allowance for expected credit losses to reflect our current estimate. Adjustments to the allowance for expected credit losses are recorded to SG&A expenses on the Consolidated Statements of Comprehensive Income. Our billed accounts receivables are written off when the potential for recovery is considered remote. The Company voluntarily revised the presentation of billed and unbilled accounts receivables in the Consolidated Balance Sheets. Previously, changes in estimates of our potential fee reductions, such as those imposed by bankruptcy courts and other regulatory agencies, were presented within allowance for expected credit losses in the Consolidated Balance Sheets. Our presentation was revised in the current year to report adjustments to estimates of our potential fee reductions within billed and unbilled receivables. As a result of the change, billed and unbilled receivables were reduced by approximately $58.3 million and $172.1 million, respectively, and the allowance for expected credit losses was reduced by approximately $230.3 million as compared with the amounts previously presented on the Consolidated Balance Sheets in our Annual Report on Form 10-K for the year ended December 31, 2019. The presentation did not impact the Consolidated Statements of Comprehensive Income, Consolidated Statements of Stockholder’s Equity or Consolidated Statements of Cash Flows. 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 one 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 Goodwill and 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. Intangible assets may include customer relationships, trademarks and acquired software. We test our goodwill and indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter and 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. Our annual goodwill impairment test may be conducted using a qualitative assessment or a quantitative assessment. Under GAAP, we have an unconditional option to bypass the qualitative assessment and perform a quantitative impairment test. 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. 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, we determine 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. Intangible assets with finite lives are amortized over their estimated useful life and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We amortize our acquired finite-lived intangible assets on a straight-line basis over periods ranging from two 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 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 on the Consolidated Balance Sheets 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 We separately recorded the liability and equity components of our 2.0% convertible senior notes due 2023 ("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. We record debt issuance costs as an adjustment to the carrying amount of the related liability and equity components of our 2023 Convertible Notes. We amortize the debt discount and debt issuance costs on the liability component using the effective interest rate method over the expected life of the debt instrument. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15 ("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 companies to capitalize implementation costs of a hosting arrangement that is a service contract and expense those costs over the term of the hosting arrangement. On January 1, 2020, we prospectively adopted ASU 2018-15 for eligible costs incurred on or after the adoption date. The adoption of this standard resulted in the recognition of additional internal use software costs, which are included in the “Property and equipment, net” financial statement line item on the Consolidated Balance Sheets. The impact was not material on the Consolidated Balance Sheets as of December 31, 2020 or on the Consolidated Statements of Comprehensive Income, Consolidated Statements of Stockholders’ Equity or Consolidated Statements of Cash Flows for the year ended December 31, 2020. Accounting Standards Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2021, 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, 2020 | |
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 stock options and restricted shares (restricted share awards, restricted stock units and performance stock units), 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 years ended December 31, 2020 and 2019, as the average market price per share of our common stock for the periods exceeded the conversion price of $101.38 per share. See Note 14, "Debt" for additional information about the 2023 Convertible Notes. Year Ended December 31, 2020 2019 2018 Numerator — basic and diluted Net income $ 210,682 $ 216,726 $ 150,611 Denominator Weighted average number of common shares outstanding — basic 35,602 36,774 37,098 Effect of dilutive restricted shares 763 820 729 Effect of dilutive stock options 419 455 491 Effect of dilutive convertible notes 365 62 — Weighted average number of common shares outstanding — diluted 37,149 38,111 38,318 Earnings per common share — basic $ 5.92 $ 5.89 $ 4.06 Earnings per common share — diluted $ 5.67 $ 5.69 $ 3.93 Antidilutive stock options and restricted shares 66 19 175 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues We generate the majority of our revenues by providing consulting services to our clients. See Note 1, "Description of Business and Summary of Significant Accounting Policies” for additional information on the types of consulting contract arrangements we provide. 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. 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. 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 $19.0 million, $28.9 million and $16.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. Unfulfilled performance obligations primarily consist of fees not yet recognized on certain fixed-fee arrangements and performance-based and contingent arrangements. As of December 31, 2020 and 2019, the aggregate amount of the remaining contract transaction price allocated to unfulfilled performance obligations was $8.5 million and $2.3 million, respectively. 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 revenues 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 $2.6 million and $1.3 million as of December 31, 2020 and 2019, respectively. |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Expected Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Allowance For Doubtful Accounts And Unbilled Services [Abstract] | |
Accounts Receivable and Allowance for Expected Credit Losses | Accounts Receivable and Allowance for Expected Credit Losses The following table summarizes the components of “Accounts receivable, net” as presented on the Consolidated Balance Sheets: December 31, 2020 2019 Accounts receivable: Billed receivables $ 513,459 $ 482,333 Unbilled receivables 236,285 246,205 Allowance for expected credit losses (38,387) (35,166) Accounts receivable, net $ 711,357 $ 693,372 The following table summarizes total provision for expected credit losses and write-offs: Year Ended December 31, 2020 2019 2018 Provision for expected credit losses $ 19,692 $ 19,602 $ 17,872 Write-offs $ 24,717 $ 12,734 $ 21,465 Our provision for expected credit losses includes recoveries, direct write-offs and charges to other accounts. Billed accounts receivables are written off when the potential for recovery is considered remote. See Note 1, "Description of Business and Summary of Significant Accounting Policies” for additional information on our accounting policies for revenue recognition and allowance for expected credit losses. |
Special Charges
Special Charges | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Special Charges | Special Charges During the year ended December 31, 2020, we recorded a special charge of $7.1 million, which consists of the following components: • $4.7 million of lease abandonment and other relocation costs associated with the consolidation of office space in New York, New York. The lease abandonment costs include non-cash charges of $4.4 million related to accelerated amortization on operating lease assets and accelerated depreciation on lease-related property and equipment; and • $2.4 million of employee severance and other employee-related costs associated with performance-related actions in our FLC segment that impacted 16 employees. All of these amounts will be paid in cash within the next 12 months. There were no special charges recorded during the years ended December 31, 2019 and 2018. The following table details the special charges by segment: Year Ended December 31, 2020 Corporate Finance $ 861 FLC 3,484 Economic Consulting 35 Technology 276 Strategic Communications 2,074 Segment special charge 6,730 Unallocated Corporate 373 Total $ 7,103 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
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 1,310,586 shares of common stock available for grant as of December 31, 2020. 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, 2020, 2019 and 2018: 2020 2019 2018 Restricted Restricted Restricted Income Statement Classification Options (1) Shares (2) Options (1) Shares (2) Options (1) Shares (2) Direct cost of revenues $ 9 $ 13,080 $ 497 $ 11,869 $ 780 $ 9,804 Selling, general and administrative expenses 126 11,926 2,628 9,005 2,027 8,191 Total $ 135 $ 25,006 $ 3,125 $ 20,874 $ 2,807 $ 17,995 (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 not grant any stock options during the years ended December 31, 2020, 2019 and 2018. Historically, we used the Black-Scholes option-pricing model to determine the fair value of our stock option grants. A summary of our stock option activity during the year ended December 31, 2020 is presented below. The aggregate intrinsic value of stock options outstanding and exercisable, or fully vested, at December 31, 2020 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 2020 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, 2020. The aggregate intrinsic value changes based on fluctuations in the fair market value per share of our common stock. Options Weighted Weighted Aggregate Stock options outstanding at December 31, 2019 678 $ 35.98 Stock options granted — N/A Stock options exercised (140) $ 35.14 Stock options forfeited — N/A Stock options outstanding at December 31, 2020 538 $ 36.20 4.3 $ 40,065 Stock options exercisable at December 31, 2020 538 $ 36.20 4.3 $ 40,065 Cash received from option exercises for the years ended December 31, 2020, 2019 and 2018 was $4.9 million, $9.7 million and $41.6 million, respectively. The tax benefit realized from stock options exercised totaled $0.4 million, $0.7 million and $4.0 million for the years ended December 31, 2020, 2019 and 2018, 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, 2020, 2019 and 2018 was $11.0 million, $13.2 million and $26.4 million, respectively. As of December 31, 2020, there was no unrecognized compensation cost related to stock options. Restricted Share Awards A summary of our restricted share awards activity during the year ended December 31, 2020 is presented below: Shares Weighted Unvested restricted share awards outstanding at December 31, 2019 957 $ 52.86 Restricted share awards granted 165 $ 116.75 Restricted share awards vested (242) $ 48.95 Restricted share awards forfeited (7) $ 56.08 Unvested restricted share awards outstanding at December 31, 2020 873 $ 66.00 As of December 31, 2020, there was $32.0 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 3.8 years. The total fair value of restricted share awards that vested during the years ended December 31, 2020, 2019 and 2018 was $27.9 million, $18.6 million and $10.4 million, respectively. Restricted Stock Units A summary of our restricted stock units activity during the year ended December 31, 2020 is presented below: Shares Weighted Restricted stock units outstanding at December 31, 2019 313 $ 43.45 Restricted stock units granted 57 $ 114.95 Restricted stock units released (55) $ 48.08 Restricted stock units forfeited — N/A Restricted stock units outstanding at December 31, 2020 315 $ 55.45 As of December 31, 2020, there was $3.9 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 4.7 years. The total fair value of restricted stock units released for the years ended December 31, 2020, 2019 and 2018 was $6.1 million, $4.5 million and $5.4 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 range for all of our performance stock units is typically between 0% and up to 150% of the target number of shares granted at the end of a two A summary of our performance stock units activity during the year ended December 31, 2020 is presented below: Shares Weighted Performance stock units outstanding at December 31, 2019 361 $ 60.67 Performance stock units granted (1) 109 $ 130.58 Performance stock units released (100) $ 37.48 Performance stock units forfeited — N/A Performance stock units outstanding at December 31, 2020 370 $ 87.50 (1) Performance stock units granted are presented at the maximum potential payout percentage of 150% of target shares granted. |
Interest Income and Other
Interest Income and Other | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 2018 Interest income $ 3,735 $ 4,761 $ 5,448 Foreign exchange transaction gains (losses), net (4,099) (3,056) 261 Other (48) 356 (732) Total $ (412) $ 2,061 $ 4,977 |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details December 31, 2020 2019 Prepaid expenses and other current assets Prepaid expenses $ 48,220 $ 39,740 Income tax receivable 10,300 8,161 Other current assets 29,624 32,909 Total $ 88,144 $ 80,810 Accounts payable, accrued expenses and other Accounts payable $ 13,124 $ 18,346 Accrued expenses 65,082 46,511 Accrued interest payable 2,902 2,243 Accrued taxes payable 14,719 35,895 Current operating lease liabilities 42,716 35,727 Other current liabilities 31,523 20,214 Total $ 170,066 $ 158,936 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: December 31, 2020 2019 Leasehold improvements $ 97,074 $ 99,837 Construction in progress 15,291 4,359 Furniture and equipment 26,127 36,698 Computer equipment and software 107,901 119,904 246,393 260,798 Accumulated depreciation (144,751) (167,126) Property and equipment, net $ 101,642 $ 93,672 Depreciation expense for property and equipment totaled $32.6 million, $30.1 million and $26.2 million during the years ended December 31, 2020, 2019 and 2018, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The table below summarizes the changes in the carrying amount of goodwill by reportable segment: Corporate Finance (1) FLC (1) Economic Consulting (1) Technology (1) Strategic Communications (2) Total Balance as of December 31, 2018 $ 450,997 $ 231,537 $ 268,547 $ 96,723 $ 124,512 $ 1,172,316 Acquisitions (3) 27,389 — — — — 27,389 Foreign currency translation adjustment and other 456 583 130 47 1,846 3,062 Balance as of December 31, 2019 478,842 232,120 268,677 96,770 126,358 1,202,767 Acquisitions (3) 20,632 — — — — 20,632 Foreign currency translation adjustment and other 6,598 1,254 410 51 3,167 11,480 Balance as of December 31, 2020 $ 506,072 $ 233,374 $ 269,087 $ 96,821 $ 129,525 $ 1,234,879 (1) There were no accumulated impairment losses for the Corporate Finance, FLC, Economic Consulting or Technology segments as of December 31, 2020, 2019 and 2018. (2) Amounts for our Strategic Communications segment include gross carrying values of $323.7 million, $320.5 million and $318.7 million as of December 31, 2020, 2019 and 2018, respectively, and accumulated impairment losses of $194.1 million as of December 31, 2020, 2019 and 2018. (3) During the years ended December 31, 2020 and 2019, we acquired businesses that were assigned to the Corporate Finance segment. We recorded $20.6 million and $27.4 million in goodwill as a result of the acquisitions in 2020 and 2019, respectively. The purchase price allocation for the 2020 acquisition is preliminary. We have included the results of the acquired businesses' operations in the Corporate Finance segment since the acquisition dates. Intangible Assets Intangible assets were as follows: December 31, 2020 December 31, 2019 Weighted Average Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets Customer relationships (1) 13.9 $ 111,556 $ 85,180 $ 26,376 $ 99,613 $ 76,808 $ 22,805 Trademarks (1) 5.7 11,809 2,768 9,041 9,855 653 9,202 Acquired software and other 9.2 3,618 2,585 1,033 3,386 2,061 1,325 13.0 126,983 90,533 36,450 112,854 79,522 33,332 Non-amortizing intangible assets Trademarks Indefinite 5,100 — 5,100 5,100 — 5,100 Total $ 132,083 $ 90,533 $ 41,550 $ 117,954 $ 79,522 $ 38,432 (1) During the year ended December 31, 2020, we acquired a strategy consulting and investment banking business, and its related intangible assets were assigned to the Corporate Finance segment. Intangible assets with finite lives are amortized over their estimated useful life. We recorded amortization expense of $10.4 million, $8.2 million and $8.2 million during the years ended December 31, 2020, 2019 and 2018, respectively. We estimate our future amortization expense for our intangible assets with finite lives to be as follows: As of December 31, 2020 (1) Year 2021 $ 10,710 2022 8,683 2023 4,972 2024 3,504 2025 2,787 Thereafter 5,794 $ 36,450 (1) Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, impairments, changes in useful lives, or other relevant factors or changes. |
Notes Receivable from Employees
Notes Receivable from Employees | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Notes receivable from employees — beginning $ 104,139 $ 113,699 Notes granted 34,383 28,879 Repayments (8,043) (13,179) Amortization (29,444) (26,294) Cumulative translation adjustment and other (4,661) 1,034 Notes receivable from employees — ending 96,374 104,139 Less: current portion (35,253) (35,106) Notes receivable from employees, net of current portion $ 61,121 $ 69,033 As of December 31, 2020 and 2019, there were 320 and 303 notes outstanding, respectively. Total amortization expense for the years ended December 31, 2020, 2019 and 2018 was $29.4 million, $26.3 million and $36.4 million, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The following table presents the carrying amounts and estimated fair values of our financial instruments by hierarchy level as of December 31, 2020 and 2019: December 31, 2020 Hierarchy Level Carrying Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1)(2) $ 20,118 $ — $ — $ 20,118 2023 Convertible Notes (3) 286,131 — 396,982 — Total $ 306,249 $ — $ 396,982 $ 20,118 December 31, 2019 Hierarchy Level Carrying Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 14,826 $ — $ — $ 14,826 2023 Convertible Notes (3) 275,609 — 398,016 — Total $ 290,435 $ — $ 398,016 $ 14,826 (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, 2020, we acquired a strategy consulting and investment banking business that was assigned to the Corporate Finance segment and recorded an acquisition-related contingent consideration liability. (3) The carrying values include unamortized deferred debt issue costs and debt discount. The fair values of financial instruments not included in this table are estimated to be equal to their carrying values as of December 31, 2020 and December 31, 2019. 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 liabilities subject to the Monte Carlo simulation were valued using significant unobservable inputs, including volatility rates between 31.5% and 40.0% and discount rates between 14.0% and 13.6%, which reflect the weighted average of our cost of debt and adjusted cost of equity of the acquired companies, and future cash flows. Significant increases (or decreases) in these unobservable inputs in isolation would result in significantly lower (or higher) fair values. 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: Contingent Consideration Balance at December 31, 2017 $ 3,750 Accretion expense (1) 479 Payments (531) Balance at December 31, 2018 $ 3,698 Additions (2) 9,746 Accretion expense (1) 2,372 Payments (1,000) Foreign currency translation adjustment (3) 10 Balance at December 31, 2019 $ 14,826 Additions (2) 3,460 Accretion expense (1) 5,593 Payments (4,692) Foreign currency translation adjustment (3) 931 Balance at December 31, 2020 $ 20,118 (1) Accretion expense is included in "Selling, general and administrative expenses" on the Consolidated Statements of Comprehensive Income. (2) During the years ended December 31, 2020 and 2019, we acquired businesses that were assigned to the Corporate Finance segment. (3) 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, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the components of the Company’s debt: December 31, 2020 2019 2023 Convertible Notes $ 316,250 $ 316,250 Total debt 316,250 316,250 Less: deferred debt discount (26,310) (35,393) Less: deferred debt issue costs (3,809) (5,248) Long-term debt, net (1) $ 286,131 $ 275,609 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, 2020 and 2019. 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 maturity at a conversion rate of 9.8643 shares of our common stock per $1,000 principal amount of the 2023 Convertible Notes (equivalent to a 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, 2020. 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: Year Ended December 31, 2020 2019 2018 Contractual interest expense $ 6,325 $ 6,325 $ 2,302 Amortization of debt discount (1) 9,083 8,606 3,018 Total $ 15,408 $ 14,931 $ 5,320 (1) The effective interest rate of the liability component is 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 bank 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, 2020 and 2019. Additionally, $1.1 million of the borrowing limit was used for letters of credit (and, therefore, unavailable) as of December 31, 2020. There were $1.3 million and $2.0 million of unamortized debt issue costs related to the Credit Facility as of December 31, 2020 and 2019, respectively. These amounts were included in “Other assets” on our Consolidated Balance Sheets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
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, which may include renewal or termination options that are reasonably certain of exercise. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets 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: December 31, Leases Classification 2020 2019 Assets Operating lease assets Operating lease assets $ 156,645 $ 159,777 Total lease assets $ 156,645 $ 159,777 Liabilities Current Operating lease liabilities Accounts payable, accrued expenses and other $ 42,716 $ 35,727 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 161,677 176,378 Total lease liabilities $ 204,393 $ 212,105 The table below summarizes total lease costs: Year Ended December 31, Lease Cost 2020 2019 Operating lease costs $ 51,764 $ 45,144 Short-term lease costs 2,476 3,173 Variable lease costs 12,986 11,962 Sublease income (4,226) (5,015) Total lease cost, net $ 63,000 $ 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 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 $4.6 million in 2021, $0.8 million in 2022, $0.6 million in 2023, $0.6 million in 2024 and $0.3 million in 2025. There is no future sublease rental income estimated for the years beyond 2025. The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Consolidated Balance Sheets: As of 2021 $ 49,666 2022 41,055 2023 34,434 2024 29,688 2025 24,700 Thereafter 63,943 Total future lease payments 243,486 Less: imputed interest (39,093) Total $ 204,393 The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate: Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 56,075 $ 46,079 Operating lease assets obtained in exchange for lease liabilities $ 32,759 $ 37,774 Weighted average remaining lease term (years) Operating leases 6.7 6.5 Weighted average discount rate Operating leases 5.4 % 5.6 % On October 26, 2020, the Company entered into a material lease agreement, amending and restating the lease agreement entered into as of August 19, 2020 (the "Lease") for its new principal office space in New York, New York. The Company expects to accept possession of the premises on or about April 1, 2021, subject to the satisfaction of certain conditions. The Lease shall continue for an initial fixed term of 15 years, subject to two renewal options of five years each. Fixed rental payments under the Lease are scheduled to commence in April 2022, payable in monthly installments, and will aggregate approximately $145 million, excluding lease-related incentives over the term of the Lease. The Lease is not included in operating lease assets and operating lease liabilities on the Consolidated Balance Sheets as of December 31, 2020 as the Company does not yet have the right to use the premises. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company entered into a material lease agreement for its new principal office space in New York, New York during the year ended December 31, 2020. See Note 15, "Leases" for additional information about the terms of the Lease. 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, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The table below summarizes significant components of deferred tax assets and liabilities: December 31, 2020 2019 Deferred tax assets Allowance for expected credit losses $ 14,676 $ 13,041 Accrued vacation and bonus 30,694 27,438 Share-based compensation 13,522 12,647 Notes receivable from employees 13,333 12,187 State net operating loss carryforward 2,090 2,066 Foreign net operating loss carryforward 9,437 9,388 Federal tax credit and capital loss carryforward — 7,336 Deferred compensation 240 2,117 Operating lease assets 41,283 43,397 Employee benefits obligations 2,339 1,191 Other, net 3,701 1,898 Total deferred tax assets 131,315 132,706 Deferred tax liabilities Revenue recognition (8,351) (6,732) Operating lease liabilities (28,523) (29,671) Property and equipment, net (7,663) (3,797) Equity debt discount (6,623) (8,890) Goodwill and intangible assets (202,842) (209,250) Total deferred tax liabilities (254,002) (258,340) Foreign withholding tax (1,980) (1,195) Valuation allowance (13,300) (19,865) Net deferred tax liabilities $ (137,967) $ (146,694) As of December 31, 2020 and 2019, the Company recorded certain deferred tax assets related to foreign tax credits, capital loss 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 $13.3 million and $19.9 million are recorded against the Company’s deferred tax assets as of December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, a U.S. subsidiary of the Company (the “Licensor”) entered into an intellectual property license agreement with a United Kingdom ("U.K.") subsidiary of the Company (the “Licensee”) in consideration of royalty payments that have been partially prepaid (the "License Agreement"). The prepaid royalties remitted to the Licensor were taxable in the U.S. for the year ended December 31, 2020. The impact on the U.S. current income tax provision was mainly offset by a deferred foreign income tax benefit related to the future tax deductions arising from amortization of intangible assets in the U.K. The License Agreement provided sufficient taxable income in the U.S. to fully utilize the Company’s existing foreign tax credits, which were previously subject to a valuation allowance. As of December 31, 2020, the Company has not recorded a $27.9 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 from continuing operations: Year Ended December 31, 2020 2019 2018 Domestic $ 122,800 $ 150,860 $ 96,543 Foreign 139,646 137,590 111,249 Total $ 262,446 $ 288,450 $ 207,792 The table below summarizes the components of income tax provision from continuing operations: Year Ended December 31, 2020 2019 2018 Current Federal $ 22,164 $ 30,651 $ 10,847 State 10,257 7,702 4,447 Foreign 29,390 37,083 21,056 61,811 75,436 36,350 Deferred Federal 3,936 (1,767) 14,538 State 362 785 503 Foreign (14,345) (2,730) 5,790 (10,047) (3,712) 20,831 Income tax provision $ 51,764 $ 71,724 $ 57,181 Our income tax provision from continuing operations resulted in effective tax rates that varied from the federal statutory income tax rate as summarized below: Year Ended December 31, 2020 2019 2018 Income tax expense at federal statutory rate $ 55,114 $ 60,575 $ 43,636 State income taxes, net of federal benefit 10,567 8,430 4,950 Detriment from foreign tax rates 1,175 3,425 3,655 Other expenses not deductible for tax purposes 3,079 4,362 3,543 Adjustment to reserve for uncertain tax positions (1,231) 2,504 (132) Impact of 2017 U.S. tax reform — (1,088) (656) Sale of Ringtail business — (2,097) 3,798 Share-based compensation (6,560) (4,447) (1,371) Release of valuation allowance on foreign tax credits (7,336) — — Income tax benefit related to the License Agreement, net (3,899) — — Other adjustments, net 855 60 (242) Income tax provision $ 51,764 $ 71,724 $ 57,181 The income tax provision for the years ended December 31, 2020 and 2019 was $51.8 million and $71.7 million, respectively. The decrease in expense is primarily attributable to lower pre-tax income in 2020 as compared with 2019, the release of the valuation allowance on foreign tax credits and the income tax benefit related to the License Agreement. 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 2016. We are also no longer subject to state and local or foreign tax examinations by tax authorities for years prior to 2014. Our liability for uncertain tax positions was $7.3 million and $11.1 million as of December 31, 2020 and 2019, respectively. The Company does not expect any of the uncertain tax positions to settle within the next 12 months. As of December 31, 2020, our accrual for the payment of tax-related interest and penalties was not significant. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
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, February 21, 2019 and February 20, 2020, our Board of Directors authorized an additional $100.0 million, respectively. On each of July 28, 2020 and December 3, 2020, our Board of Directors authorized an additional $200.0 million, respectively, increasing the Repurchase Program to an aggregate authorization of $900.0 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, 2020, we have $213.2 million available under the Repurchase Program to repurchase additional shares. The following table details our stock repurchases under the Repurchase Program: Year Ended December 31, 2020 2019 2018 Shares of common stock repurchased and retired 3,269 1,258 756 Average price paid per share $ 108.11 $ 84.16 $ 53.88 Total cost $ 353,385 $ 105,915 $ 40,722 As we repurchase our common shares, we reduce stated capital on our Consolidated Balance Sheets for the $0.01 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. During the year ended December 31, 2020, due to the volume of repurchases, we recorded a reduction to stated capital for the par value of the shares repurchased, with a portion of the excess purchase price over par value recorded as a reduction of additional paid-in capital of $235.6 million, which reduced additional paid-in capital to zero, and the remainder of the excess purchase price over par value of $117.9 million recorded as a reduction of retained earnings. 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. Common Stock Outstanding Common stock outstanding was 34.5 million shares and 37.4 million shares as of December 31, 2020 and 2019, respectively. Common stock outstanding includes unvested restricted stock awards, which are considered issued and outstanding under the terms of the restricted stock award agreements. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
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 2020, we increased our matching percentage. We made contributions related to the plan of $26.2 million, $17.4 million and $15.2 million during the years ended December 31, 2020, 2019 and 2018, respectively. We also maintain several defined contribution pension plans for our employees in the U.K. and other foreign countries. We contributed to these plans $9.2 million, $7.3 million and $7.7 million during the years ended December 31, 2020, 2019 and 2018, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
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. Our clients include companies, boards of directors, investors, private equity sponsors, banks, lenders, and other financing sources and creditor groups, as well as other parties-in-interest. We deliver a wide range of services centered around three core offerings: business transformation, transactions and turnaround, restructuring and bankruptcy. Our FLC segment provides law firms, companies, government entities and other interested parties with a multidisciplinary and independent range of services in risk and investigations and disputes, including a focus on highly regulated industries such as our construction & environmental solutions and health solutions services. These services are supported by our data & analytics services which help our clients analyze large, disparate sets of data related to their business operations and support our clients during regulatory inquiries and commercial disputes. We deliver a wide range of services centered around five core offerings: construction & environmental solutions, data & analytics, disputes, health solutions and risk and investigations. Our Economic Consulting segment, including subsidiary Compass Lexecon LLC, provides law firms, companies, government entities and other interested parties with analyses of complex economic issues for use in international arbitration, legal and regulatory proceedings, and strategic decision making and public policy debates around the world. We deliver a wide range of services centered around three core offerings: antitrust & competition economics, financial economics and international arbitration. Our Technology segment provides companies, law firms and government entities with a comprehensive global portfolio of e-discovery, information governance, privacy and security and corporate legal operations solutions. We deliver a full spectrum of services including data collection, data processing, document review, hosting, advanced analytics and consulting. Our Strategic Communications segment develops and executes communications strategies to help management teams, boards of directors, law firms, governments and regulators manage change and mitigate risk surrounding transformational and disruptive events, including transactions, investigations, disputes, crises, regulation and legislation. We deliver a wide range of services centered around three core offerings: corporate reputation, financial communications and public affairs. 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’s share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We define Total Adjusted Segment EBITDA, which is a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects current core operating performance and provides an indicator of the segment’s ability to generate cash. The table below presents revenues and Adjusted Segment EBITDA for our reportable segments: Year Ended December 31, 2020 2019 2018 Revenues Corporate Finance $ 910,184 $ 723,721 $ 564,479 FLC 500,275 577,780 520,333 Economic Consulting 599,088 592,542 533,979 Technology 223,016 215,584 185,755 Strategic Communications 228,712 243,090 223,331 Total revenues $ 2,461,275 $ 2,352,717 $ 2,027,877 Adjusted Segment EBITDA Corporate Finance $ 216,830 $ 160,735 $ 121,660 FLC 33,374 104,435 96,821 Economic Consulting 91,432 84,112 69,955 Technology 43,013 45,688 27,387 Strategic Communications 38,975 44,544 42,918 Total Adjusted Segment EBITDA $ 423,624 $ 439,514 $ 358,741 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, 2020 2019 2018 Net income $ 210,682 $ 216,726 $ 150,611 Add back: Income tax provision 51,764 71,724 57,181 Interest income and other 412 (2,061) (4,977) Interest expense 19,805 19,206 27,149 Gain on sale of business — — (13,031) Loss on early extinguishment of debt — — 9,072 Unallocated corporate expenses (1) 94,463 98,398 96,595 Segment depreciation expense 29,381 27,369 27,979 Amortization of intangible assets 10,387 8,152 8,162 Segment special charges 6,730 — — Total Adjusted Segment EBITDA $ 423,624 $ 439,514 $ 358,741 (1) Includes a $0.4 million special charge. The table below presents assets by reportable segment, reconciled to consolidated amounts. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and intangible assets. December 31, 2020 2019 Corporate Finance $ 925,082 $ 814,820 FLC 412,803 462,155 Economic Consulting 553,217 543,475 Technology 200,396 200,430 Strategic Communications 214,503 217,129 Total segment assets 2,306,001 2,238,009 Unallocated corporate assets 471,362 545,133 Total assets $ 2,777,363 $ 2,783,142 The table below details total revenues by country. Revenues have been attributed to locations based on the location of the legal entity generating the revenues. Year Ended December 31, 2020 2019 2018 U.S. $ 1,544,777 $ 1,555,133 $ 1,372,116 U.K. 421,125 389,338 302,576 All other foreign countries 495,373 408,246 353,185 Total revenues $ 2,461,275 $ 2,352,717 $ 2,027,877 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, 2020 December 31, 2019 U.S. U.K. All Other U.S. U.K. All Other Property and equipment, net $ 64,923 $ 19,150 $ 17,569 $ 63,563 $ 16,423 $ 13,686 Net assets $ 763,159 $ 196,708 $ 440,314 $ 925,288 $ 196,087 $ 367,767 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) Quarter Ended March 31 June 30 September 30 December 31 2020 Revenues $ 604,593 $ 607,852 $ 622,249 $ 626,581 Operating income $ 73,056 $ 65,599 $ 73,070 $ 70,938 Net income $ 56,747 $ 48,174 $ 50,172 $ 55,589 Earnings per common share — basic (1) $ 1.56 $ 1.33 $ 1.41 $ 1.63 Earnings per common share — diluted (1) $ 1.49 $ 1.27 $ 1.35 $ 1.57 Weighted average common shares outstanding Basic 36,415 36,169 35,639 34,198 Diluted 38,190 37,852 37,086 35,484 Quarter Ended March 31 June 30 September 30 December 31 2019 Revenues $ 551,274 $ 606,119 $ 593,106 $ 602,218 Operating income $ 87,162 $ 88,095 $ 82,138 $ 48,200 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 (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_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 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 revenues and the assessment of the recoverability of goodwill and intangible assets. Other estimates include, but are not limited to, the realization of deferred tax assets and the fair value of acquisition-related contingent consideration. Management bases its estimates on historical trends, projections, 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, 2020, we derived approximately 37% 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 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. 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 contract 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 contract 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). • Fixed-fee arrangements require the client to pay a fixed fee in exchange for a predetermined set of professional services. We recognize revenues earned to date by applying the proportional performance method. Generally, these arrangements 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 in an amount that is probable not to reverse and by applying the proportional performance method when the criteria for over time revenue recognition are met. Certain fees in our time and materials arrangements may be subject to approval by a third-party, such as a bankruptcy court and other regulatory agency. In such cases, we record revenues based on the amount we estimate we will be entitled to in exchange for our services and only to the extent a significant reversal of revenue is not likely to occur when the uncertainty associated with the estimate is subsequently resolved. Potential fee reductions imposed by bankruptcy courts and other regulatory agencies or negotiated with specific clients are estimated on a specific identification basis. Our estimates may vary depending on the nature of the engagement, client economics, historical experience and other appropriate factors. When there are changes in our estimates of potential fee reductions, we record such changes to revenues with a corresponding offset to our billed and unbilled accounts receivable. In our Technology segment we generate unit-based revenues that are recognized at agreed-upon per unit rates for 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. 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. Timing of revenue recognition often differs from the timing of billing to our customers. Generally, we transfer goods or services to a customer before the customer pays consideration or payment is due. If we have an unconditional right to invoice and receive payment for goods or services already provided, we record billed and unbilled receivables on our Consolidated Balance Sheets. Our contract terms generally include a requirement of payment within 30 days when no contingencies exist. Payment terms and conditions vary depending on the jurisdiction, market and type of service, and whether regulatory or other third-party approvals are required. At times, we may execute contracts in a form provided by customers that might include different payment terms and contracts may be negotiated at the client’s request. 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 and 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 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. |
Acquisition-Related Contingent Consideration | Acquisition-Related Contingent Consideration The fair value of acquisition-related contingent consideration is estimated at the acquisition date utilizing either the present value of our probability-weighted estimate of future cash flows 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” ("SG&A") expenses. on the Consolidated Statements of Comprehensive Income. |
Advertising Costs | Advertising CostsAdvertising costs consist of marketing, advertising through print and other media, professional event sponsorship and public relations. These costs are expensed as incurred. |
Income Taxes | Income Taxes Our income tax provision 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. and in 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 EquivalentsCash 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 Expected Credit Losses | Allowance for Expected Credit Losses We estimate the current-period provision for expected credit losses on a specific identification basis. Our judgments regarding a specific client’s credit risk considers factors such as the counterparty’s creditworthiness, knowledge of the specific client’s circumstances and historical collection experience for similar clients. Other factors include, but are not limited to, current economic conditions and forward-looking estimates. Our actual experience may vary from our estimates. If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay our fees, we may need to record additional provisions for expected credit losses in future periods. The risk of credit losses may be mitigated to the extent that we received a retainer from some of our clients prior to performing services. |
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 one |
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 |
Goodwill and Intangible Assets | Goodwill and 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. Intangible assets may include customer relationships, trademarks and acquired software. We test our goodwill and indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter and 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. Our annual goodwill impairment test may be conducted using a qualitative assessment or a quantitative assessment. Under GAAP, we have an unconditional option to bypass the qualitative assessment and perform a quantitative impairment test. 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. 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, we determine 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. Intangible assets with finite lives are amortized over their estimated useful life and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We amortize our acquired finite-lived intangible assets on a straight-line basis over periods ranging from two |
Impairment of Long-Lived Assets | 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 | Leases 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 on the Consolidated Balance Sheets 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 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 |
Convertible Notes | Convertible Notes We separately recorded the liability and equity components of our 2.0% convertible senior notes due 2023 ("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. We record debt issuance costs as an adjustment to the carrying amount of the related liability and equity components of our 2023 Convertible Notes. We amortize the debt discount and debt issuance costs on the liability component using the effective interest rate method over the expected life of the debt instrument. |
Recently Adopted Accounting Standards and Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15 ("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 companies to capitalize implementation costs of a hosting arrangement that is a service contract and expense those costs over the term of the hosting arrangement. On January 1, 2020, we prospectively adopted ASU 2018-15 for eligible costs incurred on or after the adoption date. The adoption of this standard resulted in the recognition of additional internal use software costs, which are included in the “Property and equipment, net” financial statement line item on the Consolidated Balance Sheets. The impact was not material on the Consolidated Balance Sheets as of December 31, 2020 or on the Consolidated Statements of Comprehensive Income, Consolidated Statements of Stockholders’ Equity or Consolidated Statements of Cash Flows for the year ended December 31, 2020. Accounting Standards Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2021, 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, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Year Ended December 31, 2020 2019 2018 Numerator — basic and diluted Net income $ 210,682 $ 216,726 $ 150,611 Denominator Weighted average number of common shares outstanding — basic 35,602 36,774 37,098 Effect of dilutive restricted shares 763 820 729 Effect of dilutive stock options 419 455 491 Effect of dilutive convertible notes 365 62 — Weighted average number of common shares outstanding — diluted 37,149 38,111 38,318 Earnings per common share — basic $ 5.92 $ 5.89 $ 4.06 Earnings per common share — diluted $ 5.67 $ 5.69 $ 3.93 Antidilutive stock options and restricted shares 66 19 175 |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Expected Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Allowance For Doubtful Accounts And Unbilled Services [Abstract] | |
Schedule of accounts receivable | The following table summarizes the components of “Accounts receivable, net” as presented on the Consolidated Balance Sheets: December 31, 2020 2019 Accounts receivable: Billed receivables $ 513,459 $ 482,333 Unbilled receivables 236,285 246,205 Allowance for expected credit losses (38,387) (35,166) Accounts receivable, net $ 711,357 $ 693,372 The table below summarizes the changes in the carrying amount of our notes receivable from employees: December 31, 2020 2019 Notes receivable from employees — beginning $ 104,139 $ 113,699 Notes granted 34,383 28,879 Repayments (8,043) (13,179) Amortization (29,444) (26,294) Cumulative translation adjustment and other (4,661) 1,034 Notes receivable from employees — ending 96,374 104,139 Less: current portion (35,253) (35,106) Notes receivable from employees, net of current portion $ 61,121 $ 69,033 |
Schedule of accounts receivable, writeoff | The following table summarizes total provision for expected credit losses and write-offs: Year Ended December 31, 2020 2019 2018 Provision for expected credit losses $ 19,692 $ 19,602 $ 17,872 Write-offs $ 24,717 $ 12,734 $ 21,465 |
Special Charges (Tables)
Special Charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Special Charges by Segment | The following table details the special charges by segment: Year Ended December 31, 2020 Corporate Finance $ 861 FLC 3,484 Economic Consulting 35 Technology 276 Strategic Communications 2,074 Segment special charge 6,730 Unallocated Corporate 373 Total $ 7,103 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018: 2020 2019 2018 Restricted Restricted Restricted Income Statement Classification Options (1) Shares (2) Options (1) Shares (2) Options (1) Shares (2) Direct cost of revenues $ 9 $ 13,080 $ 497 $ 11,869 $ 780 $ 9,804 Selling, general and administrative expenses 126 11,926 2,628 9,005 2,027 8,191 Total $ 135 $ 25,006 $ 3,125 $ 20,874 $ 2,807 $ 17,995 (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 Activity | A summary of our stock option activity during the year ended December 31, 2020 is presented below. The aggregate intrinsic value of stock options outstanding and exercisable, or fully vested, at December 31, 2020 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 2020 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, 2020. The aggregate intrinsic value changes based on fluctuations in the fair market value per share of our common stock. Options Weighted Weighted Aggregate Stock options outstanding at December 31, 2019 678 $ 35.98 Stock options granted — N/A Stock options exercised (140) $ 35.14 Stock options forfeited — N/A Stock options outstanding at December 31, 2020 538 $ 36.20 4.3 $ 40,065 Stock options exercisable at December 31, 2020 538 $ 36.20 4.3 $ 40,065 |
Schedule of Unvested Restricted Share Awards Activity | A summary of our restricted share awards activity during the year ended December 31, 2020 is presented below: Shares Weighted Unvested restricted share awards outstanding at December 31, 2019 957 $ 52.86 Restricted share awards granted 165 $ 116.75 Restricted share awards vested (242) $ 48.95 Restricted share awards forfeited (7) $ 56.08 Unvested restricted share awards outstanding at December 31, 2020 873 $ 66.00 |
Schedule of Restricted Stock Unit Activity | A summary of our restricted stock units activity during the year ended December 31, 2020 is presented below: Shares Weighted Restricted stock units outstanding at December 31, 2019 313 $ 43.45 Restricted stock units granted 57 $ 114.95 Restricted stock units released (55) $ 48.08 Restricted stock units forfeited — N/A Restricted stock units outstanding at December 31, 2020 315 $ 55.45 |
Schedule of Performance Stock Units Activity | A summary of our performance stock units activity during the year ended December 31, 2020 is presented below: Shares Weighted Performance stock units outstanding at December 31, 2019 361 $ 60.67 Performance stock units granted (1) 109 $ 130.58 Performance stock units released (100) $ 37.48 Performance stock units forfeited — N/A Performance stock units outstanding at December 31, 2020 370 $ 87.50 (1) Performance stock units granted are presented at the maximum potential payout percentage of 150% of target shares granted. |
Interest Income and Other (Tabl
Interest Income and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 2018 Interest income $ 3,735 $ 4,761 $ 5,448 Foreign exchange transaction gains (losses), net (4,099) (3,056) 261 Other (48) 356 (732) Total $ (412) $ 2,061 $ 4,977 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Balance Sheet Details | December 31, 2020 2019 Prepaid expenses and other current assets Prepaid expenses $ 48,220 $ 39,740 Income tax receivable 10,300 8,161 Other current assets 29,624 32,909 Total $ 88,144 $ 80,810 Accounts payable, accrued expenses and other Accounts payable $ 13,124 $ 18,346 Accrued expenses 65,082 46,511 Accrued interest payable 2,902 2,243 Accrued taxes payable 14,719 35,895 Current operating lease liabilities 42,716 35,727 Other current liabilities 31,523 20,214 Total $ 170,066 $ 158,936 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: December 31, 2020 2019 Leasehold improvements $ 97,074 $ 99,837 Construction in progress 15,291 4,359 Furniture and equipment 26,127 36,698 Computer equipment and software 107,901 119,904 246,393 260,798 Accumulated depreciation (144,751) (167,126) Property and equipment, net $ 101,642 $ 93,672 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 (1) FLC (1) Economic Consulting (1) Technology (1) Strategic Communications (2) Total Balance as of December 31, 2018 $ 450,997 $ 231,537 $ 268,547 $ 96,723 $ 124,512 $ 1,172,316 Acquisitions (3) 27,389 — — — — 27,389 Foreign currency translation adjustment and other 456 583 130 47 1,846 3,062 Balance as of December 31, 2019 478,842 232,120 268,677 96,770 126,358 1,202,767 Acquisitions (3) 20,632 — — — — 20,632 Foreign currency translation adjustment and other 6,598 1,254 410 51 3,167 11,480 Balance as of December 31, 2020 $ 506,072 $ 233,374 $ 269,087 $ 96,821 $ 129,525 $ 1,234,879 (1) There were no accumulated impairment losses for the Corporate Finance, FLC, Economic Consulting or Technology segments as of December 31, 2020, 2019 and 2018. (2) Amounts for our Strategic Communications segment include gross carrying values of $323.7 million, $320.5 million and $318.7 million as of December 31, 2020, 2019 and 2018, respectively, and accumulated impairment losses of $194.1 million as of December 31, 2020, 2019 and 2018. (3) During the years ended December 31, 2020 and 2019, we acquired businesses that were assigned to the Corporate Finance segment. We recorded $20.6 million and $27.4 million in goodwill as a result of the acquisitions in 2020 and 2019, respectively. The purchase price allocation for the 2020 acquisition is preliminary. We have included the results of the acquired businesses' operations in the Corporate Finance segment since the acquisition dates. |
Schedule of Other Intangible Assets Amortized Intangibles | Intangible assets were as follows: December 31, 2020 December 31, 2019 Weighted Average Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets Customer relationships (1) 13.9 $ 111,556 $ 85,180 $ 26,376 $ 99,613 $ 76,808 $ 22,805 Trademarks (1) 5.7 11,809 2,768 9,041 9,855 653 9,202 Acquired software and other 9.2 3,618 2,585 1,033 3,386 2,061 1,325 13.0 126,983 90,533 36,450 112,854 79,522 33,332 Non-amortizing intangible assets Trademarks Indefinite 5,100 — 5,100 5,100 — 5,100 Total $ 132,083 $ 90,533 $ 41,550 $ 117,954 $ 79,522 $ 38,432 (1) During the year ended December 31, 2020, we acquired a strategy consulting and investment banking business, and its related intangible assets were assigned to the Corporate Finance segment. |
Schedule of Other Intangible Assets Unamortized Intangibles | Intangible assets were as follows: December 31, 2020 December 31, 2019 Weighted Average Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets Customer relationships (1) 13.9 $ 111,556 $ 85,180 $ 26,376 $ 99,613 $ 76,808 $ 22,805 Trademarks (1) 5.7 11,809 2,768 9,041 9,855 653 9,202 Acquired software and other 9.2 3,618 2,585 1,033 3,386 2,061 1,325 13.0 126,983 90,533 36,450 112,854 79,522 33,332 Non-amortizing intangible assets Trademarks Indefinite 5,100 — 5,100 5,100 — 5,100 Total $ 132,083 $ 90,533 $ 41,550 $ 117,954 $ 79,522 $ 38,432 (1) During the year ended December 31, 2020, we acquired a strategy consulting and investment banking business, and its related intangible assets 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 finite lives to be as follows: As of December 31, 2020 (1) Year 2021 $ 10,710 2022 8,683 2023 4,972 2024 3,504 2025 2,787 Thereafter 5,794 $ 36,450 (1) Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, impairments, 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, 2020 | |
Receivables [Abstract] | |
Summary of Changes in Carrying Amount of Notes Receivable From Employees | The following table summarizes the components of “Accounts receivable, net” as presented on the Consolidated Balance Sheets: December 31, 2020 2019 Accounts receivable: Billed receivables $ 513,459 $ 482,333 Unbilled receivables 236,285 246,205 Allowance for expected credit losses (38,387) (35,166) Accounts receivable, net $ 711,357 $ 693,372 The table below summarizes the changes in the carrying amount of our notes receivable from employees: December 31, 2020 2019 Notes receivable from employees — beginning $ 104,139 $ 113,699 Notes granted 34,383 28,879 Repayments (8,043) (13,179) Amortization (29,444) (26,294) Cumulative translation adjustment and other (4,661) 1,034 Notes receivable from employees — ending 96,374 104,139 Less: current portion (35,253) (35,106) Notes receivable from employees, net of current portion $ 61,121 $ 69,033 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying and Estimated Fair Value of Other Financial Instruments | The following table presents the carrying amounts and estimated fair values of our financial instruments by hierarchy level as of December 31, 2020 and 2019: December 31, 2020 Hierarchy Level Carrying Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1)(2) $ 20,118 $ — $ — $ 20,118 2023 Convertible Notes (3) 286,131 — 396,982 — Total $ 306,249 $ — $ 396,982 $ 20,118 December 31, 2019 Hierarchy Level Carrying Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 14,826 $ — $ — $ 14,826 2023 Convertible Notes (3) 275,609 — 398,016 — Total $ 290,435 $ — $ 398,016 $ 14,826 (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, 2020, we acquired a strategy consulting and investment banking business that was assigned to the Corporate Finance segment and recorded an acquisition-related contingent consideration liability. (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: Contingent Consideration Balance at December 31, 2017 $ 3,750 Accretion expense (1) 479 Payments (531) Balance at December 31, 2018 $ 3,698 Additions (2) 9,746 Accretion expense (1) 2,372 Payments (1,000) Foreign currency translation adjustment (3) 10 Balance at December 31, 2019 $ 14,826 Additions (2) 3,460 Accretion expense (1) 5,593 Payments (4,692) Foreign currency translation adjustment (3) 931 Balance at December 31, 2020 $ 20,118 (1) Accretion expense is included in "Selling, general and administrative expenses" on the Consolidated Statements of Comprehensive Income. (2) During the years ended December 31, 2020 and 2019, we acquired businesses that were assigned to the Corporate Finance segment. (3) 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, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Components of Debt Obligations | The table below summarizes the components of the Company’s debt: December 31, 2020 2019 2023 Convertible Notes $ 316,250 $ 316,250 Total debt 316,250 316,250 Less: deferred debt discount (26,310) (35,393) Less: deferred debt issue costs (3,809) (5,248) Long-term debt, net (1) $ 286,131 $ 275,609 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, 2020 and 2019. |
Summary of Interest Expense | 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: Year Ended December 31, 2020 2019 2018 Contractual interest expense $ 6,325 $ 6,325 $ 2,302 Amortization of debt discount (1) 9,083 8,606 3,018 Total $ 15,408 $ 14,931 $ 5,320 (1) The effective interest rate of the liability component is 5.45%. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Carrying Amount of Operating Lease Assets and Liabilities | The table below summarizes the carrying amount of our operating lease assets and liabilities: December 31, Leases Classification 2020 2019 Assets Operating lease assets Operating lease assets $ 156,645 $ 159,777 Total lease assets $ 156,645 $ 159,777 Liabilities Current Operating lease liabilities Accounts payable, accrued expenses and other $ 42,716 $ 35,727 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 161,677 176,378 Total lease liabilities $ 204,393 $ 212,105 |
Schedule of Lease Cost | The table below summarizes total lease costs: Year Ended December 31, Lease Cost 2020 2019 Operating lease costs $ 51,764 $ 45,144 Short-term lease costs 2,476 3,173 Variable lease costs 12,986 11,962 Sublease income (4,226) (5,015) Total lease cost, net $ 63,000 $ 55,264 The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate: Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 56,075 $ 46,079 Operating lease assets obtained in exchange for lease liabilities $ 32,759 $ 37,774 Weighted average remaining lease term (years) Operating leases 6.7 6.5 Weighted average discount rate Operating leases 5.4 % 5.6 % |
Schedule of Future Minimum Lease Payments | The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Consolidated Balance Sheets: As of 2021 $ 49,666 2022 41,055 2023 34,434 2024 29,688 2025 24,700 Thereafter 63,943 Total future lease payments 243,486 Less: imputed interest (39,093) Total $ 204,393 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: December 31, 2020 2019 Deferred tax assets Allowance for expected credit losses $ 14,676 $ 13,041 Accrued vacation and bonus 30,694 27,438 Share-based compensation 13,522 12,647 Notes receivable from employees 13,333 12,187 State net operating loss carryforward 2,090 2,066 Foreign net operating loss carryforward 9,437 9,388 Federal tax credit and capital loss carryforward — 7,336 Deferred compensation 240 2,117 Operating lease assets 41,283 43,397 Employee benefits obligations 2,339 1,191 Other, net 3,701 1,898 Total deferred tax assets 131,315 132,706 Deferred tax liabilities Revenue recognition (8,351) (6,732) Operating lease liabilities (28,523) (29,671) Property and equipment, net (7,663) (3,797) Equity debt discount (6,623) (8,890) Goodwill and intangible assets (202,842) (209,250) Total deferred tax liabilities (254,002) (258,340) Foreign withholding tax (1,980) (1,195) Valuation allowance (13,300) (19,865) Net deferred tax liabilities $ (137,967) $ (146,694) |
Summary of Components of Income Before Income Tax Provision from Continuing Operations | The table below summarizes the components of income before income tax provision from continuing operations: Year Ended December 31, 2020 2019 2018 Domestic $ 122,800 $ 150,860 $ 96,543 Foreign 139,646 137,590 111,249 Total $ 262,446 $ 288,450 $ 207,792 |
Summary of Components of Income Tax Provision from Continuing Operations | The table below summarizes the components of income tax provision from continuing operations: Year Ended December 31, 2020 2019 2018 Current Federal $ 22,164 $ 30,651 $ 10,847 State 10,257 7,702 4,447 Foreign 29,390 37,083 21,056 61,811 75,436 36,350 Deferred Federal 3,936 (1,767) 14,538 State 362 785 503 Foreign (14,345) (2,730) 5,790 (10,047) (3,712) 20,831 Income tax provision $ 51,764 $ 71,724 $ 57,181 |
Summary of Income Tax Provision from Continuing Operations Resulted in Effective Tax Rates | Our income tax provision from continuing operations resulted in effective tax rates that varied from the federal statutory income tax rate as summarized below: Year Ended December 31, 2020 2019 2018 Income tax expense at federal statutory rate $ 55,114 $ 60,575 $ 43,636 State income taxes, net of federal benefit 10,567 8,430 4,950 Detriment from foreign tax rates 1,175 3,425 3,655 Other expenses not deductible for tax purposes 3,079 4,362 3,543 Adjustment to reserve for uncertain tax positions (1,231) 2,504 (132) Impact of 2017 U.S. tax reform — (1,088) (656) Sale of Ringtail business — (2,097) 3,798 Share-based compensation (6,560) (4,447) (1,371) Release of valuation allowance on foreign tax credits (7,336) — — Income tax benefit related to the License Agreement, net (3,899) — — Other adjustments, net 855 60 (242) Income tax provision $ 51,764 $ 71,724 $ 57,181 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | The following table details our stock repurchases under the Repurchase Program: Year Ended December 31, 2020 2019 2018 Shares of common stock repurchased and retired 3,269 1,258 756 Average price paid per share $ 108.11 $ 84.16 $ 53.88 Total cost $ 353,385 $ 105,915 $ 40,722 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: Year Ended December 31, 2020 2019 2018 Revenues Corporate Finance $ 910,184 $ 723,721 $ 564,479 FLC 500,275 577,780 520,333 Economic Consulting 599,088 592,542 533,979 Technology 223,016 215,584 185,755 Strategic Communications 228,712 243,090 223,331 Total revenues $ 2,461,275 $ 2,352,717 $ 2,027,877 Adjusted Segment EBITDA Corporate Finance $ 216,830 $ 160,735 $ 121,660 FLC 33,374 104,435 96,821 Economic Consulting 91,432 84,112 69,955 Technology 43,013 45,688 27,387 Strategic Communications 38,975 44,544 42,918 Total Adjusted Segment EBITDA $ 423,624 $ 439,514 $ 358,741 |
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, 2020 2019 2018 Net income $ 210,682 $ 216,726 $ 150,611 Add back: Income tax provision 51,764 71,724 57,181 Interest income and other 412 (2,061) (4,977) Interest expense 19,805 19,206 27,149 Gain on sale of business — — (13,031) Loss on early extinguishment of debt — — 9,072 Unallocated corporate expenses (1) 94,463 98,398 96,595 Segment depreciation expense 29,381 27,369 27,979 Amortization of intangible assets 10,387 8,152 8,162 Segment special charges 6,730 — — Total Adjusted Segment EBITDA $ 423,624 $ 439,514 $ 358,741 |
Schedule of Assets by Segments | The table below presents assets by reportable segment, reconciled to consolidated amounts. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and intangible assets. December 31, 2020 2019 Corporate Finance $ 925,082 $ 814,820 FLC 412,803 462,155 Economic Consulting 553,217 543,475 Technology 200,396 200,430 Strategic Communications 214,503 217,129 Total segment assets 2,306,001 2,238,009 Unallocated corporate assets 471,362 545,133 Total assets $ 2,777,363 $ 2,783,142 |
Schedule of Revenues Based on Location of Legal Entity and Information on Long-Lived Assets and Net Assets | The table below details total revenues by country. Revenues have been attributed to locations based on the location of the legal entity generating the revenues. Year Ended December 31, 2020 2019 2018 U.S. $ 1,544,777 $ 1,555,133 $ 1,372,116 U.K. 421,125 389,338 302,576 All other foreign countries 495,373 408,246 353,185 Total revenues $ 2,461,275 $ 2,352,717 $ 2,027,877 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, 2020 December 31, 2019 U.S. U.K. All Other U.S. U.K. All Other Property and equipment, net $ 64,923 $ 19,150 $ 17,569 $ 63,563 $ 16,423 $ 13,686 Net assets $ 763,159 $ 196,708 $ 440,314 $ 925,288 $ 196,087 $ 367,767 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | Quarter Ended March 31 June 30 September 30 December 31 2020 Revenues $ 604,593 $ 607,852 $ 622,249 $ 626,581 Operating income $ 73,056 $ 65,599 $ 73,070 $ 70,938 Net income $ 56,747 $ 48,174 $ 50,172 $ 55,589 Earnings per common share — basic (1) $ 1.56 $ 1.33 $ 1.41 $ 1.63 Earnings per common share — diluted (1) $ 1.49 $ 1.27 $ 1.35 $ 1.57 Weighted average common shares outstanding Basic 36,415 36,169 35,639 34,198 Diluted 38,190 37,852 37,086 35,484 Quarter Ended March 31 June 30 September 30 December 31 2019 Revenues $ 551,274 $ 606,119 $ 593,106 $ 602,218 Operating income $ 87,162 $ 88,095 $ 82,138 $ 48,200 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 (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 (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($)segmentoptionToExtend | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 26, 2020 | Aug. 20, 2018 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of reportable business segments | segment | 5 | ||||
Advertising costs | $ 15,200 | $ 18,600 | $ 15,500 | ||
Billed receivables | (513,459) | (482,333) | |||
Unbilled receivables | (236,285) | (246,205) | |||
Allowance for expected credit losses | $ (38,387) | $ (35,166) | |||
Forgivable loans, forgiveness period, minimum | 1 year | ||||
Forgivable loans, forgiveness period, maximum | 10 years | ||||
Definite-lived intangible assets amortization period | 13 years | ||||
Number of option to extend | optionToExtend | 1 | ||||
Lessee renewal term | 5 years | ||||
Revision of Prior Period, Reclassification, Adjustment [Member] | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Billed receivables | $ 58,300 | ||||
Unbilled receivables | 172,100 | ||||
Allowance for expected credit losses | $ 230,300 | ||||
Minimum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Definite-lived intangible assets amortization period | 2 years | ||||
Maximum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Definite-lived intangible assets amortization period | 15 years | ||||
Lessee 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) | 1 year | ||||
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 | 37.00% | ||||
Senior Notes | Convertible Note Due 2023 | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Interest rate (as a percent) | 2.00% | 2.00% |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Common Share [Line Items] | |||||||||||
Conversion price (in dollars per share) | $ 101.38 | $ 101.38 | $ 101.38 | $ 101.38 | |||||||
Numerator — basic and diluted | |||||||||||
Net income | $ 55,589 | $ 50,172 | $ 48,174 | $ 56,747 | $ 29,061 | $ 60,422 | $ 64,598 | $ 62,645 | $ 210,682 | $ 216,726 | $ 150,611 |
Denominator | |||||||||||
Weighted average number of common shares outstanding — basic (in shares) | 34,198 | 35,639 | 36,169 | 36,415 | 36,545 | 36,617 | 36,960 | 36,981 | 35,602 | 36,774 | 37,098 |
Effect of dilutive restricted shares (in shares) | 763 | 820 | 729 | ||||||||
Effect of dilutive stock options (in shares) | 419 | 455 | 491 | ||||||||
Effect of dilutive convertible notes (in shares) | 365 | 62 | 0 | ||||||||
Weighted average number of common shares outstanding — diluted (in shares) | 35,484 | 37,086 | 37,852 | 38,190 | 38,126 | 37,938 | 38,168 | 38,219 | 37,149 | 38,111 | 38,318 |
Earnings per common share — basic (in dollars per share) | $ 1.63 | $ 1.41 | $ 1.33 | $ 1.56 | $ 0.80 | $ 1.65 | $ 1.75 | $ 1.69 | $ 5.92 | $ 5.89 | $ 4.06 |
Earnings per common share — diluted (in dollars per share) | $ 1.57 | $ 1.35 | $ 1.27 | $ 1.49 | $ 0.76 | $ 1.59 | $ 1.69 | $ 1.64 | $ 5.67 | $ 5.69 | $ 3.93 |
Stock Options And Restricted Shares | |||||||||||
Denominator | |||||||||||
Antidilutive stock options and restricted shares (in shares) | 66 | 19 | 175 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Performance obligations satisfied or partially satisfied in previous periods | $ 19 | $ 28.9 | $ 16.1 |
Contract asset balance | 2.6 | 1.3 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Unfulfilled performance obligations | $ 2.3 | ||
Performance obligation expected duration | 24 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Unfulfilled performance obligations | $ 8.5 | ||
Performance obligation expected duration | 24 months |
Accounts Receivable and Allow_3
Accounts Receivable and Allowance for Expected Credit Losses - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable: | ||
Billed receivables | $ 513,459 | $ 482,333 |
Unbilled receivables | 236,285 | 246,205 |
Allowance for expected credit losses | (38,387) | (35,166) |
Accounts receivable, net | $ 711,357 | $ 693,372 |
Accounts Receivable and Allow_4
Accounts Receivable and Allowance for Expected Credit Losses - Writeoff (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance For Doubtful Accounts And Unbilled Services [Abstract] | |||
Provision for expected credit losses | $ 19,692 | $ 19,602 | $ 17,872 |
Write-offs | $ 24,717 | $ 12,734 | $ 21,465 |
Special Charges - Additional In
Special Charges - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Special charges | $ 7,103,000 | $ 0 | $ 0 |
Non cash charges | $ 4,400,000 | ||
Restructuring charge, payment term | 12 months | ||
Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | $ 4,700,000 | ||
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | $ 2,400,000 | ||
Reduction in workforce | employee | 16 |
Special Charges - Schedule of S
Special Charges - Schedule of Special Charges By Segment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Special charges | $ 7,103,000 | $ 0 | $ 0 |
Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | 6,730,000 | ||
Operating Segments | Corporate Finance | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | 861,000 | ||
Operating Segments | FLC | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | 3,484,000 | ||
Operating Segments | Economic Consulting | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | 35,000 | ||
Operating Segments | Technology | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | 276,000 | ||
Operating Segments | Strategic Communications | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | 2,074,000 | ||
Unallocated Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Special charges | $ 373,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 0 | 0 | 0 |
Cash received from option exercises | $ 4,900,000 | $ 9,700,000 | $ 41,600,000 |
Tax benefit realized from stock options exercised | 400,000 | 700,000 | 4,000,000 |
Intrinsic value of options exercised | 11,000,000 | 13,200,000 | 26,400,000 |
Option, cost not yet recognized | 0 | ||
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 32,000,000 | ||
Unrecognized compensation cost, recognition period (in years) | 3 years 9 months 18 days | ||
Fair value, vested | $ 27,900,000 | 18,600,000 | 10,400,000 |
Weighted average grant date fair value (in dollars per share) | $ 116.75 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 3,900,000 | ||
Unrecognized compensation cost, recognition period (in years) | 4 years 8 months 12 days | ||
Fair value, vested | $ 6,100,000 | 4,500,000 | 5,400,000 |
Weighted average grant date fair value (in dollars per share) | $ 114.95 | ||
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 8,000,000 | ||
Unrecognized compensation cost, recognition period (in years) | 9 months 18 days | ||
Fair value, vested | $ 12,600,000 | $ 5,800,000 | $ 1,400,000 |
Weighted average grant date fair value (in dollars per share) | $ 130.58 | ||
Performance Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum payout potential | 0.00% | ||
Award vesting period | 2 years | ||
Performance Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum payout potential | 150.00% | 150.00% | |
Award vesting period | 3 years | ||
Restricted Stock units and Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 120.99 | $ 80.10 | $ 51.73 |
Omnibus Plan 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock available for grant (in shares) | 1,310,586 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 135 | $ 3,125 | $ 2,807 |
Options | Direct cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 9 | 497 | 780 |
Options | Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 126 | 2,628 | 2,027 |
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 25,006 | 20,874 | 17,995 |
Restricted Shares | Direct cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 13,080 | 11,869 | 9,804 |
Restricted Shares | Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 11,926 | $ 9,005 | $ 8,191 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | |||
Stock options outstanding beginning of period (in shares) | 678,000 | ||
Stock options granted (in shares) | 0 | 0 | 0 |
Stock options exercised (in shares) | (140,000) | ||
Stock options forfeited (in shares) | 0 | ||
Stock options outstanding end of period (in shares) | 538,000 | 678,000 | |
Stock options exercisable at end of period (in shares) | 538,000 | ||
Weighted Average Exercise Price | |||
Stock options outstanding, beginning of period (in dollars per share) | $ 35.98 | ||
Stock options exercised (in dollars per share) | 35.14 | ||
Stock options outstanding, end of period (in dollars per share) | 36.20 | $ 35.98 | |
Stock options exercisable, end of period (in dollars per share) | $ 36.20 | ||
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 3 months 18 days | ||
Stock options exercisable, weighted average remaining contractual term (in Years) | 4 years 3 months 18 days | ||
Stock options outstanding, aggregate intrinsic value | $ 40,065 | ||
Stock options exercisable, aggregate intrinsic value | $ 40,065 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Unvested Restricted Share Activity (Details) - Restricted Shares shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares | |
Restricted stock units outstanding beginning of period (in shares) | shares | 957 |
Awards granted (in shares) | shares | 165 |
Awards vested (in shares) | shares | (242) |
Awards forfeited (in shares) | shares | (7) |
Restricted stock units outstanding ending of period (in shares) | shares | 873 |
Weighted Average Grant Date Fair Value | |
Restricted stock units outstanding beginning of period (in dollars per share) | $ / shares | $ 52.86 |
Restricted stock units granted (in dollars per share) | $ / shares | 116.75 |
Restricted share awards vested, (in dollars per share) | $ / shares | 48.95 |
Awards forfeited (in dollars per share) | $ / shares | 56.08 |
Restricted stock units outstanding ending of period (in dollars per share) | $ / shares | $ 66 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares | |
Restricted stock units outstanding beginning of period (in shares) | 313 |
Restricted stock units granted (in shares) | 57 |
Restricted stock units released (in shares) | (55) |
Restricted stock units forfeited (in shares) | 0 |
Restricted stock units outstanding ending of period (in shares) | 315 |
Weighted Average Grant Date Fair Value | |
Restricted stock units outstanding beginning of period (in dollars per share) | $ / shares | $ 43.45 |
Restricted stock units granted (in dollars per share) | $ / shares | 114.95 |
Restricted stock units released (in dollars per share) | $ / shares | 48.08 |
Restricted stock units outstanding ending of period (in dollars per share) | $ / shares | $ 55.45 |
Share-Based Compensation - Sc_5
Share-Based Compensation - Schedule of Performance Stock Units Activity (Details) - Performance Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares | |
Restricted stock units outstanding beginning of period (in shares) | 361 |
Awards granted (in shares) | 109 |
Awards released (in shares) | (100) |
Awards forfeited (in shares) | 0 |
Restricted stock units outstanding ending of period (in shares) | 370 |
Weighted Average Grant Date Fair Value | |
Restricted stock units outstanding beginning of period (in dollars per share) | $ / shares | $ 60.67 |
Performance stock units granted (in dollars per share) | $ / shares | 130.58 |
Performance stock units released (in dollars per share) | $ / shares | 37.48 |
Restricted stock units outstanding ending of period (in dollars per share) | $ / shares | $ 87.50 |
Interest Income and Other (Deta
Interest Income and Other (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 3,735 | $ 4,761 | $ 5,448 |
Foreign exchange transaction gains (losses), net | (4,099) | (3,056) | 261 |
Other | (48) | 356 | (732) |
Total | $ (412) | $ 2,061 | $ 4,977 |
Balance Sheet Details (Details)
Balance Sheet Details (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid expenses and other current assets | ||
Prepaid expenses | $ 48,220 | $ 39,740 |
Income tax receivable | 10,300 | 8,161 |
Other current assets | 29,624 | 32,909 |
Total | 88,144 | 80,810 |
Accounts payable, accrued expenses and other | ||
Accounts payable | 13,124 | 18,346 |
Accrued expenses | 65,082 | 46,511 |
Accrued interest payable | 2,902 | 2,243 |
Accrued taxes payable | 14,719 | 35,895 |
Current operating lease liabilities | 42,716 | 35,727 |
Other current liabilities | 31,523 | 20,214 |
Total | $ 170,066 | $ 158,936 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 246,393 | $ 260,798 | |
Accumulated depreciation | (144,751) | (167,126) | |
Property and equipment, net | 101,642 | 93,672 | |
Depreciation expense for property and equipment | 32,600 | 30,100 | $ 26,200 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 97,074 | 99,837 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 15,291 | 4,359 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 26,127 | 36,698 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 107,901 | $ 119,904 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in Carrying Amounts of Goodwill by Operating Segment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill beginning of period | $ 1,202,767,000 | $ 1,172,316,000 | |
Acquisitions | 20,632,000 | 27,389,000 | |
Foreign currency translation adjustment and other | 11,480,000 | 3,062,000 | |
Goodwill end of period | 1,234,879,000 | 1,202,767,000 | $ 1,172,316,000 |
Proceeds from sale of business | 0 | 0 | 50,283,000 |
Corporate Finance | |||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | 478,842,000 | 450,997,000 | |
Acquisitions | 20,632,000 | 27,389,000 | |
Foreign currency translation adjustment and other | 6,598,000 | 456,000 | |
Goodwill end of period | 506,072,000 | 478,842,000 | 450,997,000 |
Accumulated impairment loss | 0 | 0 | 0 |
Proceeds from sale of business | 20,600,000 | 27,400,000 | |
FLC | |||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | 232,120,000 | 231,537,000 | |
Foreign currency translation adjustment and other | 1,254,000 | 583,000 | |
Goodwill end of period | 233,374,000 | 232,120,000 | 231,537,000 |
Accumulated impairment loss | 0 | 0 | 0 |
Economic Consulting | |||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | 268,677,000 | 268,547,000 | |
Foreign currency translation adjustment and other | 410,000 | 130,000 | |
Goodwill end of period | 269,087,000 | 268,677,000 | 268,547,000 |
Accumulated impairment loss | 0 | 0 | 0 |
Technology | |||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | 96,770,000 | 96,723,000 | |
Foreign currency translation adjustment and other | 51,000 | 47,000 | |
Goodwill end of period | 96,821,000 | 96,770,000 | 96,723,000 |
Accumulated impairment loss | 0 | 0 | 0 |
Strategic Communications | |||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | 126,358,000 | 124,512,000 | |
Foreign currency translation adjustment and other | 3,167,000 | 1,846,000 | |
Goodwill end of period | 129,525,000 | 126,358,000 | 124,512,000 |
Accumulated impairment loss | 194,100,000 | 194,100,000 | 194,100,000 |
Goodwill | $ 323,700,000 | $ 320,500,000 | $ 318,700,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets by Major Class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life in Years | 13 years | |
Gross Carrying Amount | $ 126,983 | $ 112,854 |
Accumulated Amortization | 90,533 | 79,522 |
Net Carrying Amount | 36,450 | 33,332 |
Intangible assets, gross carrying amount | 132,083 | 117,954 |
Intangible assets, Net Carrying Amount | 41,550 | 38,432 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, non-amortizing intangible assets | $ 5,100 | 5,100 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life in Years | 13 years 10 months 24 days | |
Gross Carrying Amount | $ 111,556 | 99,613 |
Accumulated Amortization | 85,180 | 76,808 |
Net Carrying Amount | $ 26,376 | 22,805 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life in Years | 5 years 8 months 12 days | |
Gross Carrying Amount | $ 11,809 | 9,855 |
Accumulated Amortization | 2,768 | 653 |
Net Carrying Amount | $ 9,041 | 9,202 |
Acquired software and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life in Years | 9 years 2 months 12 days | |
Gross Carrying Amount | $ 3,618 | 3,386 |
Accumulated Amortization | 2,585 | 2,061 |
Net Carrying Amount | $ 1,033 | $ 1,325 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other intangible assets | $ 10,387 | $ 8,152 | $ 8,162 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 10,710 | |
2022 | 8,683 | |
2023 | 4,972 | |
2024 | 3,504 | |
2025 | 2,787 | |
Thereafter | 5,794 | |
Net Carrying Amount | $ 36,450 | $ 33,332 |
Notes Receivable from Employe_3
Notes Receivable from Employees - Summary of Changes in Carrying Amount of Notes Receivable From Employees (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||||
Notes receivable from employees — beginning | $ 104,139 | $ 113,699 | ||
Notes granted | 34,383 | 28,879 | ||
Repayments | (8,043) | (13,179) | ||
Amortization | (29,444) | (26,294) | ||
Cumulative translation adjustment and other | (4,661) | 1,034 | ||
Notes receivable from employees — ending | $ 104,139 | $ 113,699 | $ 96,374 | $ 104,139 |
Less: current portion | (35,253) | (35,106) | ||
Notes receivable from employees, net of current portion | $ 61,121 | $ 69,033 |
Notes Receivable from Employe_4
Notes Receivable from Employees - Additional information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)note | Dec. 31, 2019USD ($)note | Dec. 31, 2018USD ($) | |
Receivables [Abstract] | |||
Notes outstanding (in notes) | note | 320 | 303 | |
Amortization of forgivable loan expense | $ | $ 29.4 | $ 26.3 | $ 36.4 |
Financial Instruments - Carryin
Financial Instruments - Carrying And Estimated Fair Value Of Other Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | $ 20,118 | $ 14,826 |
Long-term debt | 286,131 | 275,609 |
Total | 306,249 | 290,435 |
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 | 396,982 | 398,016 |
Total | 396,982 | 398,016 |
Level 3 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | 20,118 | 14,826 |
Long-term debt | 0 | 0 |
Total | $ 20,118 | $ 14,826 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) | Dec. 31, 2020 |
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 | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.140 |
Measurement Input, Discount Rate | Monte Carlo | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.136 |
Measurement Input, Price Volatility | Monte Carlo | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.315 |
Measurement Input, Price Volatility | Monte Carlo | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.400 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | $ 14,826 | $ 3,698 | $ 3,750 |
Accretion expense | 5,593 | 2,372 | 479 |
Payments | (4,692) | (1,000) | (531) |
Additions | 3,460 | 9,746 | |
Foreign currency translation adjustment | 931 | 10 | |
Ending balance | $ 20,118 | $ 14,826 | $ 3,698 |
Debt - Summary of Components of
Debt - Summary of Components of Long-Term Debt Obligations (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 316,250,000 | $ 316,250,000 |
Less: deferred debt discount | (26,310,000) | (35,393,000) |
Less: deferred debt issue costs | (3,809,000) | (5,248,000) |
Long-term debt, net | 286,131,000 | 275,609,000 |
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 |
Debt - Additional Information (
Debt - Additional Information (Details) | Nov. 15, 2018USD ($) | Aug. 20, 2018USD ($)$ / shares | Nov. 30, 2018USD ($) | Dec. 31, 2020USD ($)trading_daybusiness_daysegment$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Jun. 26, 2015USD ($) |
Debt Instrument [Line Items] | |||||||
Conversion price (in dollars per share) | $ / shares | $ 101.38 | $ 101.38 | |||||
Loss on early extinguishment of debt | $ 0 | $ 0 | $ 9,072,000 | ||||
Unamortized debt issue costs | 3,809,000 | 5,248,000 | |||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing limit used | $ 1,100,000 | ||||||
Convertible Note Due 2023 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 316,300,000 | ||||||
Interest rate (as a percent) | 2.00% | 2.00% | |||||
Conversion rate | 0.0098643 | ||||||
Conversion price (in dollars per share) | $ / shares | $ 101.38 | ||||||
Convertible Note Due 2023 | Debt Instrument, Redemption, Period One | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Threshold Trading Days | trading_day | 20 | ||||||
Consecutive trading days | trading_day | 30 | ||||||
Redemption price percentage | 130.00% | ||||||
Convertible Note Due 2023 | Debt Instrument, Redemption, Period Two | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Consecutive trading days | segment | 5 | ||||||
Debt instrument business days | business_day | 5 | ||||||
Redemption price percentage | 98.00% | ||||||
6% senior notes due 2022 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 300,000,000 | ||||||
Interest rate (as a percent) | 6.00% | ||||||
Loss on early extinguishment of debt | $ 9,100,000 | ||||||
Redemption premium | 6,000,000 | ||||||
Write off of deferred debt issuance cost | $ 3,100,000 | ||||||
Credit facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Senior secured revolving line of credit | $ 550,000,000 | ||||||
Debt issuance costs | $ 1,700,000 | ||||||
Borrowings outstanding | $ 0 | 0 | |||||
Unamortized debt issue costs | $ 1,300,000 | $ 2,000,000 | |||||
Credit facility | Line of Credit | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee (as a percent) | 0.20% | ||||||
Fronting fees (as a percent) | 1.25% | ||||||
Credit facility | Line of Credit | Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread (as a percent) | 1.25% | ||||||
Credit facility | Line of Credit | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread (as a percent) | 0.25% | ||||||
Credit facility | Line of Credit | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee (as a percent) | 0.35% | ||||||
Fronting fees (as a percent) | 2.00% | ||||||
Credit facility | Line of Credit | Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread (as a percent) | 2.00% | ||||||
Credit facility | Line of Credit | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread (as a percent) | 1.00% |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | |||
Amortization of debt discount | $ 11,214 | $ 11,615 | $ 5,456 |
Convertible Note Due 2023 | Senior Notes | |||
Short-term Debt [Line Items] | |||
Contractual interest expense | 6,325 | 6,325 | 2,302,000 |
Amortization of debt discount | 9,083 | 8,606 | 3,018,000 |
Total | $ 15,408 | $ 14,931 | $ 5,320,000 |
Effective interest rate | 5.45% |
Leases - Additional Information
Leases - Additional Information (Details) | Oct. 26, 2020USD ($)employee | Dec. 31, 2020USD ($)lease_option |
Lessor, Lease, Description [Line Items] | ||
Number of renewal options | 2 | 1 |
Sublease rental income 2021 | $ 4,600,000 | |
Sublease rental income 2022 | 800,000 | |
Sublease rental income 2023 | 600,000 | |
Sublease rental income 2024 | 600,000 | |
Sublease rental income 2025 | 300,000 | |
Future sublease rental income | 0 | |
Lease term | 15 years | |
Lessee renewal term | 5 years | |
Operating lease rental payments | $ 145,000,000 | $ 243,486,000 |
Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Renewal term | 6 months | |
Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Renewal term | 7 years | |
Lessee renewal term | 7 years |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease assets | $ 156,645 | $ 159,777 |
Current operating lease liabilities | 42,716 | 35,727 |
Noncurrent operating lease liabilities | 161,677 | 176,378 |
Total lease liabilities | $ 204,393 | $ 212,105 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost | ||
Operating lease costs | $ 51,764 | $ 45,144 |
Short-term lease costs | 2,476 | 3,173 |
Variable lease costs | 12,986 | 11,962 |
Sublease income | (4,226) | (5,015) |
Total lease cost, net | $ 63,000 | $ 55,264 |
Leases - Maturity Analysis (Det
Leases - Maturity Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Oct. 26, 2020 | Dec. 31, 2019 |
Leases [Abstract] | |||
2021 | $ 49,666 | ||
2022 | 41,055 | ||
2023 | 34,434 | ||
2024 | 29,688 | ||
2025 | 24,700 | ||
Thereafter | 63,943 | ||
Total future lease payments | 243,486 | $ 145,000 | |
Less: imputed interest | (39,093) | ||
Total lease liabilities | $ 204,393 | $ 212,105 |
Leases - Cash Paid For Operatin
Leases - Cash Paid For Operating Leases and Noncash Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 56,075 | $ 46,079 |
Operating lease assets obtained in exchange for lease liabilities | $ 32,759 | $ 37,774 |
Weighted average remaining lease term (years) | 6 years 8 months 12 days | 6 years 6 months |
Weighted average discount rate | 5.40% | 5.60% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Allowance for expected credit losses | $ 14,676 | $ 13,041 |
Accrued vacation and bonus | 30,694 | 27,438 |
Share-based compensation | 13,522 | 12,647 |
Notes receivable from employees | 13,333 | 12,187 |
State net operating loss carryforward | 2,090 | 2,066 |
Foreign net operating loss carryforward | 9,437 | 9,388 |
Federal tax credit and capital loss carryforward | 0 | 7,336 |
Deferred compensation | 240 | 2,117 |
Operating lease assets | 41,283 | 43,397 |
Employee benefits obligations | 2,339 | 1,191 |
Other, net | 3,701 | 1,898 |
Total deferred tax assets | 131,315 | 132,706 |
Deferred tax liabilities | ||
Revenue recognition | (8,351) | (6,732) |
Operating lease liabilities | (28,523) | (29,671) |
Property and equipment, net | (7,663) | (3,797) |
Equity debt discount | (6,623) | (8,890) |
Goodwill and intangible assets | (202,842) | (209,250) |
Total deferred tax liabilities | (254,002) | (258,340) |
Foreign withholding tax | (1,980) | (1,195) |
Valuation allowance | (13,300) | (19,865) |
Net deferred tax liabilities | $ (137,967) | $ (146,694) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Valuation allowance | $ 13,300 | $ 19,865 | |
Deferred tax liability not recognized related to tax basis difference in investment in foreign subsidiaries | 27,900 | ||
Income tax provision | 51,764 | 71,724 | $ 57,181 |
Liability for uncertain tax positions | $ 7,300 | $ 11,100 |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Income Before Income Tax Provision from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 122,800 | $ 150,860 | $ 96,543 |
Foreign | 139,646 | 137,590 | 111,249 |
Income before income tax provision | $ 262,446 | $ 288,450 | $ 207,792 |
Income Taxes - Summary of Com_3
Income Taxes - Summary of Components of Income Tax Provision from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
Federal | $ 22,164 | $ 30,651 | $ 10,847 |
State | 10,257 | 7,702 | 4,447 |
Foreign | 29,390 | 37,083 | 21,056 |
Current, Total | 61,811 | 75,436 | 36,350 |
Deferred | |||
Federal | 3,936 | (1,767) | 14,538 |
State | 362 | 785 | 503 |
Foreign | (14,345) | (2,730) | 5,790 |
Deferred, Total | (10,047) | (3,712) | 20,831 |
Income tax provision | $ 51,764 | $ 71,724 | $ 57,181 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision from Continuing Operations Resulted in Effective Tax Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at federal statutory rate | $ 55,114 | $ 60,575 | $ 43,636 |
State income taxes, net of federal benefit | 10,567 | 8,430 | 4,950 |
Detriment from foreign tax rates | 1,175 | 3,425 | 3,655 |
Other expenses not deductible for tax purposes | 3,079 | 4,362 | 3,543 |
Adjustment to reserve for uncertain tax positions | (1,231) | 2,504 | (132) |
Impact of 2017 U.S. tax reform — deferred tax | 0 | (1,088) | (656) |
Sale of Ringtail business | 0 | (2,097) | 3,798 |
Share-based compensation | (6,560) | (4,447) | (1,371) |
Release of valuation allowance on foreign tax credits | (7,336) | 0 | 0 |
Income tax benefit related to the License Agreement, net | (3,899) | 0 | 0 |
Other adjustments, net | 855 | 60 | (242) |
Income tax provision | $ 51,764 | $ 71,724 | $ 57,181 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Aug. 16, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 03, 2020 | Jul. 28, 2020 | Feb. 20, 2020 | Feb. 21, 2019 | Aug. 13, 2018 | Dec. 01, 2017 | May 18, 2017 | Jun. 02, 2016 |
Stockholders Equity [Line Items] | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||||||
Reduction to additional paid in capital | $ (353,451,000) | $ (105,941,000) | $ (55,738,000) | |||||||||
Additional paid-in capital | 0 | 216,162,000 | ||||||||||
Reduction to retained earnings | $ (1,506,271,000) | $ (1,413,453,000) | ||||||||||
Common stock, shares outstanding (in shares) | 34,481,000 | 37,390,000 | ||||||||||
2016 Stock Repurchase Program | ||||||||||||
Stockholders Equity [Line Items] | ||||||||||||
Share repurchase program authorized amount | $ 900,000,000 | $ 100,000,000 | ||||||||||
Stock repurchase program additional amount authorized | $ 200,000,000 | $ 200,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||
Available amount under repurchase program | $ 213,200,000 | |||||||||||
Reduction to additional paid in capital | (353,385,000) | $ (105,915,000) | $ (40,722,000) | |||||||||
Reduction to retained earnings | $ 117,864,000 | |||||||||||
Shares of common stock repurchased and retired (in shares) | 3,269,000 | 1,258,000 | 756,000 | |||||||||
Average price paid per share (in dollars per share) | $ 108.11 | $ 84.16 | $ 53.88 | |||||||||
2018 Stock Repurchase Program | ||||||||||||
Stockholders Equity [Line Items] | ||||||||||||
Share repurchase program authorized amount | $ 25,000,000 | |||||||||||
Reduction to additional paid in capital | $ (15,000,000) | |||||||||||
Shares of common stock repurchased and retired (in shares) | 196,050 | |||||||||||
Average price paid per share (in dollars per share) | $ 76.51 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Total cost | $ 353,451 | $ 105,941 | $ 55,738 |
2016 Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Shares of common stock repurchased and retired (in shares) | 3,269 | 1,258 | 756 |
Average price paid per share (in dollars per share) | $ 108.11 | $ 84.16 | $ 53.88 |
Total cost | $ 353,385 | $ 105,915 | $ 40,722 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contributions to plan | $ 26.2 | $ 17.4 | $ 15.2 |
U.K. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contributions to plan | $ 9.2 | $ 7.3 | $ 7.7 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 5 |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 626,581 | $ 622,249 | $ 607,852 | $ 604,593 | $ 602,218 | $ 593,106 | $ 606,119 | $ 551,274 | $ 2,461,275 | $ 2,352,717 | $ 2,027,877 |
Adjusted Segment EBITDA | 423,624 | 439,514 | 358,741 | ||||||||
Corporate Finance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 910,184 | 723,721 | 564,479 | ||||||||
Adjusted Segment EBITDA | 216,830 | 160,735 | 121,660 | ||||||||
FLC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 500,275 | 577,780 | 520,333 | ||||||||
Adjusted Segment EBITDA | 33,374 | 104,435 | 96,821 | ||||||||
Economic Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 599,088 | 592,542 | 533,979 | ||||||||
Adjusted Segment EBITDA | 91,432 | 84,112 | 69,955 | ||||||||
Technology | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 223,016 | 215,584 | 185,755 | ||||||||
Adjusted Segment EBITDA | 43,013 | 45,688 | 27,387 | ||||||||
Strategic Communications | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 228,712 | 243,090 | 223,331 | ||||||||
Adjusted Segment EBITDA | $ 38,975 | $ 44,544 | $ 42,918 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Net Income To Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Net income | $ 55,589,000 | $ 50,172,000 | $ 48,174,000 | $ 56,747,000 | $ 29,061,000 | $ 60,422,000 | $ 64,598,000 | $ 62,645,000 | $ 210,682,000 | $ 216,726,000 | $ 150,611,000 |
Income tax provision | 51,764,000 | 71,724,000 | 57,181,000 | ||||||||
Interest income and other | 412,000 | (2,061,000) | (4,977,000) | ||||||||
Interest expense | 19,805,000 | 19,206,000 | 27,149,000 | ||||||||
Gain on sale of business | 0 | 0 | (13,031,000) | ||||||||
Loss on early extinguishment of debt | 0 | 0 | 9,072,000 | ||||||||
Adjusted Segment EBITDA | 423,624,000 | 439,514,000 | 358,741,000 | ||||||||
Special charges | 7,103,000 | 0 | 0 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Net income | 210,682,000 | 216,726,000 | 150,611,000 | ||||||||
Income tax provision | 51,764,000 | 71,724,000 | 57,181,000 | ||||||||
Interest income and other | 412,000 | (2,061,000) | (4,977,000) | ||||||||
Interest expense | 19,805,000 | 19,206,000 | 27,149,000 | ||||||||
Gain on sale of business | 0 | 0 | (13,031,000) | ||||||||
Loss on early extinguishment of debt | 0 | 0 | 9,072,000 | ||||||||
Unallocated corporate expenses (1) | 94,463,000 | 98,398,000 | 96,595,000 | ||||||||
Segment depreciation expense | 29,381,000 | 27,369,000 | 27,979,000 | ||||||||
Amortization of intangible assets | 10,387,000 | 8,152,000 | 8,162,000 | ||||||||
Segment special charges | 6,730,000 | 0 | 0 | ||||||||
Adjusted Segment EBITDA | 423,624,000 | $ 439,514,000 | $ 358,741,000 | ||||||||
Special charges | $ 400,000 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Assets by Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,777,363 | $ 2,783,142 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,306,001 | 2,238,009 |
Operating Segments | Corporate Finance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 925,082 | 814,820 |
Operating Segments | FLC | ||
Segment Reporting Information [Line Items] | ||
Total assets | 412,803 | 462,155 |
Operating Segments | Economic Consulting | ||
Segment Reporting Information [Line Items] | ||
Total assets | 553,217 | 543,475 |
Operating Segments | Technology | ||
Segment Reporting Information [Line Items] | ||
Total assets | 200,396 | 200,430 |
Operating Segments | Strategic Communications | ||
Segment Reporting Information [Line Items] | ||
Total assets | 214,503 | 217,129 |
Unallocated corporate assets | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 471,362 | $ 545,133 |
Segment Reporting - Revenues Ba
Segment Reporting - Revenues Based on Location of Legal Entity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 626,581 | $ 622,249 | $ 607,852 | $ 604,593 | $ 602,218 | $ 593,106 | $ 606,119 | $ 551,274 | $ 2,461,275 | $ 2,352,717 | $ 2,027,877 |
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,544,777 | 1,555,133 | 1,372,116 | ||||||||
U.K. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 421,125 | 389,338 | 302,576 | ||||||||
All other foreign countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 495,373 | $ 408,246 | $ 353,185 |
Segment Reporting - Information
Segment Reporting - Information on Long-Lived Assets and Net Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 101,642 | $ 93,672 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 64,923 | 63,563 |
Net assets | 763,159 | 925,288 |
U.K. | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 19,150 | 16,423 |
Net assets | 196,708 | 196,087 |
All Other Foreign Countries | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 17,569 | 13,686 |
Net assets | $ 440,314 | $ 367,767 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 626,581 | $ 622,249 | $ 607,852 | $ 604,593 | $ 602,218 | $ 593,106 | $ 606,119 | $ 551,274 | $ 2,461,275 | $ 2,352,717 | $ 2,027,877 |
Operating income | 70,938 | 73,070 | 65,599 | 73,056 | 48,200 | 82,138 | 88,095 | 87,162 | 282,663 | 305,595 | 226,005 |
Net income | $ 55,589 | $ 50,172 | $ 48,174 | $ 56,747 | $ 29,061 | $ 60,422 | $ 64,598 | $ 62,645 | $ 210,682 | $ 216,726 | $ 150,611 |
Earnings per common share — basic (in dollars per share) | $ 1.63 | $ 1.41 | $ 1.33 | $ 1.56 | $ 0.80 | $ 1.65 | $ 1.75 | $ 1.69 | $ 5.92 | $ 5.89 | $ 4.06 |
Earnings per common share — diluted (in dollars per share) | $ 1.57 | $ 1.35 | $ 1.27 | $ 1.49 | $ 0.76 | $ 1.59 | $ 1.69 | $ 1.64 | $ 5.67 | $ 5.69 | $ 3.93 |
Weighted average common shares outstanding | |||||||||||
Basic (in shares) | 34,198 | 35,639 | 36,169 | 36,415 | 36,545 | 36,617 | 36,960 | 36,981 | 35,602 | 36,774 | 37,098 |
Diluted (in shares) | 35,484 | 37,086 | 37,852 | 38,190 | 38,126 | 37,938 | 38,168 | 38,219 | 37,149 | 38,111 | 38,318 |
Uncategorized Items - fcn-20201
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201409Member |