Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 20, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FCN | ||
Entity Registrant Name | FTI CONSULTING INC | ||
Entity Central Index Key | 887,936 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 41,196,382 | ||
Entity Public Float | $ 1.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets | |||
Cash and cash equivalents | $ 216,158 | $ 149,760 | |
Accounts receivable: | |||
Billed receivables | 365,385 | 405,000 | |
Unbilled receivables | 288,331 | 280,538 | |
Allowance for doubtful accounts and unbilled services | (178,819) | (185,754) | |
Accounts receivable, net | 474,897 | 499,784 | |
Current portion of notes receivable | 31,864 | 36,115 | |
Prepaid expenses and other current assets | 60,252 | 55,966 | |
Total current assets | 783,171 | 741,625 | |
Property and equipment, net of accumulated depreciation | 61,856 | 74,760 | |
Goodwill | 1,180,001 | 1,198,298 | |
Other intangible assets, net of amortization | 52,120 | 63,935 | |
Notes receivable, net of current portion | 104,524 | 106,882 | |
Other assets | 43,696 | 43,518 | |
Total assets | 2,225,368 | 2,229,018 | |
Current liabilities | |||
Accounts payable, accrued expenses and other | 87,320 | 89,845 | |
Accrued compensation | 261,500 | 227,783 | |
Billings in excess of services provided | 29,635 | 29,449 | |
Total current liabilities | 378,455 | 347,077 | |
Long-term debt, net | [1] | 365,528 | 494,772 |
Deferred income taxes | 173,799 | 139,787 | |
Other liabilities | 100,228 | 99,779 | |
Total liabilities | 1,018,010 | 1,081,415 | |
Stockholders' equity | |||
Preferred stock, $0.01 par value; shares authorized — 5,000; none outstanding | |||
Common stock, $0.01 par value; shares authorized — 75,000; shares issued and outstanding — 42,037 (2016) and 41,234 (2015) | 420 | 412 | |
Additional paid-in capital | 416,816 | 400,705 | |
Retained earnings | 941,001 | 855,481 | |
Accumulated other comprehensive loss | (150,879) | (108,995) | |
Total stockholders' equity | 1,207,358 | 1,147,603 | |
Total liabilities and stockholders' equity | $ 2,225,368 | $ 2,229,018 | |
[1] | There were no current portions of long-term debt as of December 31, 2016 and 2015. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 42,037,000 | 41,234,000 |
Common stock, shares outstanding | 42,037,000 | 41,234,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||||||||||
Revenues | $ 441,920 | $ 438,042 | $ 460,147 | $ 470,285 | $ 442,204 | $ 455,470 | $ 449,137 | $ 432,338 | $ 1,810,394 | $ 1,779,149 | $ 1,756,212 |
Operating expenses | |||||||||||
Direct cost of revenues | 308,239 | 293,702 | 303,194 | 305,636 | 299,336 | 301,609 | 291,469 | 279,030 | 1,210,771 | 1,171,444 | 1,144,757 |
Selling, general and administrative expenses | 116,478 | 106,220 | 108,245 | 103,609 | 116,351 | 105,058 | 109,045 | 102,214 | 434,552 | 432,668 | 433,845 |
Special charges | 3,634 | 1,750 | 5,061 | 10,445 | 0 | 16,339 | |||||
Acquisition-related contingent consideration | 623 | 201 | 206 | 1,134 | (55) | 159 | (1,538) | 234 | 2,164 | (1,200) | (1,676) |
Amortization of other intangible assets | 2,265 | 2,845 | 2,590 | 2,606 | 2,807 | 2,900 | 3,007 | 3,012 | 10,306 | 11,726 | 15,521 |
Costs and Expenses, Total | 431,239 | 402,968 | 415,985 | 418,046 | 418,439 | 409,726 | 401,983 | 384,490 | 1,668,238 | 1,614,638 | 1,608,786 |
Operating income | 10,681 | 35,074 | 44,162 | 52,239 | 23,765 | 45,744 | 47,154 | 47,848 | 142,156 | 164,511 | 147,426 |
Other income (expense) | |||||||||||
Interest income and other | 571 | 3,213 | 4,125 | 2,557 | 392 | 2,027 | 950 | (137) | 10,466 | 3,232 | 4,670 |
Interest expense | (5,983) | (6,304) | (6,303) | (6,229) | (6,231) | (11,696) | (12,473) | (12,368) | (24,819) | (42,768) | (50,685) |
Loss on early extinguishment of debt | (19,589) | (19,589) | |||||||||
Other (expense) income | (14,353) | (59,125) | (46,015) | ||||||||
Income before income tax provision | 5,269 | 31,983 | 41,984 | 48,567 | 17,926 | 16,486 | 35,631 | 35,343 | 127,803 | 105,386 | 101,411 |
Income tax provision | (1,832) | 10,292 | 15,437 | 18,386 | 7,577 | 6,177 | 13,922 | 11,657 | 42,283 | 39,333 | 42,604 |
Net income | $ 7,101 | $ 21,691 | $ 26,547 | $ 30,181 | $ 10,349 | $ 10,309 | $ 21,709 | $ 23,686 | $ 85,520 | $ 66,053 | $ 58,807 |
Earnings per common share — basic | $ 0.17 | $ 0.53 | $ 0.65 | $ 0.75 | $ 0.25 | $ 0.25 | $ 0.53 | $ 0.59 | $ 2.09 | $ 1.62 | $ 1.48 |
Earnings per common share — diluted | $ 0.17 | $ 0.52 | $ 0.64 | $ 0.73 | $ 0.25 | $ 0.25 | $ 0.52 | $ 0.57 | $ 2.05 | $ 1.58 | $ 1.44 |
Other comprehensive loss, net of tax | |||||||||||
Foreign currency translation adjustments, net of tax expense of $0 | $ (41,884) | $ (28,727) | $ (29,179) | ||||||||
Other comprehensive loss, net of tax | (41,884) | (28,727) | (29,179) | ||||||||
Comprehensive income | $ 43,636 | $ 37,326 | $ 29,628 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Foreign currency translation adjustments, tax expense | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 31, 2013 | $ 1,042,259 | $ 405 | $ 362,322 | $ 730,621 | $ (51,089) |
Beginning Balance (in shares) at Dec. 31, 2013 | 40,526 | ||||
Net income | 58,807 | 58,807 | |||
Other comprehensive income (loss): | |||||
Cumulative translation adjustment | (29,179) | (29,179) | |||
Issuance of common stock in connection with: | |||||
Exercise of options, net of income tax benefit from share-based awards of $1,451 in 2014, $2,050 in 2015, $2,051 in 2016 (in shares) | 413 | ||||
Exercise of options, net of income tax benefit from share-based awards of $1,451 in 2014, $2,050 in 2015, $2,051 in 2016 | 9,899 | $ 4 | 9,895 | ||
Restricted share grants, less net settled shares of 188 in 2014, 116 in 2015 and 137 in 2016 (in shares) | 242 | ||||
Restricted share grants, less net settled shares of 188 in 2014, 116 in 2015 and 137 in 2016 | (6,508) | $ 3 | (6,511) | ||
Stock units issued under incentive compensation plan | 1,674 | 1,674 | |||
Non-employee vesting of stock options | 2,951 | 2,951 | |||
Share-based compensation | 22,843 | 22,843 | |||
Ending Balance at Dec. 31, 2014 | 1,102,746 | $ 412 | 393,174 | 789,428 | (80,268) |
Ending Balance (in shares) at Dec. 31, 2014 | 41,181 | ||||
Net income | 66,053 | 66,053 | |||
Other comprehensive income (loss): | |||||
Cumulative translation adjustment | (28,727) | (28,727) | |||
Issuance of common stock in connection with: | |||||
Exercise of options, net of income tax benefit from share-based awards of $1,451 in 2014, $2,050 in 2015, $2,051 in 2016 (in shares) | 713 | ||||
Exercise of options, net of income tax benefit from share-based awards of $1,451 in 2014, $2,050 in 2015, $2,051 in 2016 | 19,026 | $ 7 | 19,019 | ||
Restricted share grants, less net settled shares of 188 in 2014, 116 in 2015 and 137 in 2016 (in shares) | 105 | ||||
Restricted share grants, less net settled shares of 188 in 2014, 116 in 2015 and 137 in 2016 | (4,371) | $ 1 | (4,372) | ||
Stock units issued under incentive compensation plan | 2,124 | 2,124 | |||
Purchase and retirement of common stock (in shares) | (765) | ||||
Purchase and retirement of common stock | (26,532) | $ (8) | (26,524) | ||
Share-based compensation | 17,284 | 17,284 | |||
Ending Balance at Dec. 31, 2015 | $ 1,147,603 | $ 412 | 400,705 | 855,481 | (108,995) |
Ending Balance (in shares) at Dec. 31, 2015 | 41,234 | 41,234 | |||
Net income | $ 85,520 | 85,520 | |||
Other comprehensive income (loss): | |||||
Cumulative translation adjustment | $ (41,884) | (41,884) | |||
Issuance of common stock in connection with: | |||||
Exercise of options, net of income tax benefit from share-based awards of $1,451 in 2014, $2,050 in 2015, $2,051 in 2016 (in shares) | 816 | 820 | |||
Exercise of options, net of income tax benefit from share-based awards of $1,451 in 2014, $2,050 in 2015, $2,051 in 2016 | $ 25,242 | $ 8 | 25,234 | ||
Restricted share grants, less net settled shares of 188 in 2014, 116 in 2015 and 137 in 2016 (in shares) | 520 | ||||
Restricted share grants, less net settled shares of 188 in 2014, 116 in 2015 and 137 in 2016 | (5,536) | $ 5 | (5,541) | ||
Stock units issued under incentive compensation plan | 1,842 | 1,842 | |||
Purchase and retirement of common stock (in shares) | (537) | ||||
Purchase and retirement of common stock | (21,489) | $ (5) | (21,484) | ||
Share-based compensation | 16,060 | 16,060 | |||
Ending Balance at Dec. 31, 2016 | $ 1,207,358 | $ 420 | $ 416,816 | $ 941,001 | $ (150,879) |
Ending Balance (in shares) at Dec. 31, 2016 | 42,037 | 42,037 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Stockholders Equity [Abstract] | |||
Exercise of options, income tax expense | $ 2,051 | $ 2,050 | $ 1,451 |
Restricted share grants, settled shares | 137 | 116 | 188 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net income | $ 85,520 | $ 66,053 | $ 58,807 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 38,700 | 31,392 | 35,126 |
Amortization and impairment of other intangible assets | 10,306 | 11,726 | 15,521 |
Acquisition-related contingent consideration | 2,164 | (1,200) | (1,676) |
Provision for doubtful accounts | 8,912 | 15,564 | 18,252 |
Non-cash share-based compensation | 16,920 | 17,951 | 22,848 |
Non-cash interest expense | 1,985 | 2,521 | 2,691 |
Loss on early extinguishment of debt | 19,589 | ||
Other | (1,204) | (760) | (522) |
Changes in operating assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable, billed and unbilled | 3,471 | (35,648) | (43,072) |
Notes receivable | 3,145 | 3,106 | (18,253) |
Prepaid expenses and other assets | (2,840) | (3,557) | 10,733 |
Accounts payable, accrued expenses and other | 3,268 | (4,718) | 980 |
Income taxes | 22,012 | 18,491 | 15,283 |
Accrued compensation | 40,350 | 4,780 | 11,106 |
Billings in excess of services provided | 779 | (5,370) | 7,577 |
Net cash provided by operating activities | 233,488 | 139,920 | 135,401 |
Investing activities | |||
Payments for acquisition of businesses, net of cash received | (1,251) | (575) | (23,467) |
Purchases of property and equipment | (28,935) | (31,399) | (39,256) |
Other | 54 | 237 | 5,128 |
Net cash used in investing activities | (30,132) | (31,737) | (57,595) |
Financing activities | |||
Borrowings (repayments) under revolving line of credit, net | (130,000) | 200,000 | |
Payments of long-term debt | (425,671) | (6,014) | |
Payments of debt issue costs | (3,843) | ||
Deposits | 4,006 | 3,227 | 13,071 |
Purchase and retirement of common stock | (21,489) | (26,532) | (4,367) |
Net issuance of common stock under equity compensation plans | 21,708 | 16,666 | 4,772 |
Other | 465 | 191 | (1,132) |
Net cash (used in) provided by financing activities | (125,310) | (235,962) | 6,330 |
Effect of exchange rate changes on cash and cash equivalents | (11,648) | (6,141) | (6,289) |
Net increase (decrease) in cash and cash equivalents | 66,398 | (133,920) | 77,847 |
Cash and cash equivalents, beginning of period | 149,760 | 283,680 | 205,833 |
Cash and cash equivalents, end of period | 216,158 | 149,760 | 283,680 |
Supplemental cash flow disclosures | |||
Cash paid for interest | 23,154 | 46,965 | 48,169 |
Cash paid for income taxes, net of refunds | 20,270 | 20,654 | 27,326 |
Non-cash investing and financing activities: | |||
Issuance of stock units under incentive compensation plans | $ 1,842 | $ 2,124 | $ 1,674 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies Description of Business FTI Consulting, Inc. including its consolidated subsidiaries (collectively, the “Company,” “we,” “our” or “FTI Consulting”), is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political and regulatory, reputational and transactional. Individually, each of our segments and practices is staffed with experts recognized for the depth of their knowledge and a track record of making an impact. Collectively, FTI Consulting offers a comprehensive suite of services designed to assist clients across the business cycle, from proactive risk management to rapid response to unexpected events and dynamic environments. We operate through five reportable segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, 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. Revenues and expenses are translated at average exchange rates for each month, while assets and liabilities are translated at balance sheet date exchange rates. Resulting net translation adjustments are recorded as a component of stockholders’ equity in “Accumulated other comprehensive income (loss).” Transaction gains and losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in “Interest income and other” on our 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. The most significant estimates made and assumptions used are the determination of the allowance for doubtful accounts and unbilled services, the assessment of the recoverability of goodwill and intangible assets and realization of deferred tax assets, the valuation of share-based compensation and the fair value of acquisition-related contingent consideration. Management bases its estimates on historical trends, current experience and other assumptions that it believes are reasonable. Concentrations of Risk We do not have a single customer that represents ten percent 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, 2016, we derived approximately 28% of our consolidated revenues from the work of professionals who are assigned to locations outside of 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 persuasive evidence of an arrangement exists, the related services are provided, the price is fixed or determinable and collectability is reasonably assured. If, at the outset of an arrangement, we determine that the arrangement fee is not fixed or determinable, revenues are deferred until all criteria for recognizing revenues are met. Provisions are recorded for the estimated realization adjustments on all engagements, including engagements for which fees are subject to review by bankruptcy courts and other regulatory institutions. If the client is in bankruptcy, fees for our services may be subject to approval by the court. In some cases, a portion of the fees to be paid to us by a client is required by a court to be held until completion of our work and final fee settlements have been negotiated. We make a determination whether to record all or a portion of such holdback as revenues prior to collection on a case-by-case basis. We generate the majority of our revenues from providing professional services under four types of billing arrangements: time and expense, fixed fee, performance based and unit based. 1. Time and expense billing arrangements require the client to pay based on the number of hours worked by our revenue-generating professionals at contractually agreed-upon rates. We recognize revenues for our professional services rendered under time and expense engagements based on the hours incurred at agreed-upon rates, including discounts, as work is performed. In some cases, time and expense arrangements are subject to a cap, in which case we assess work performed on a periodic basis to ensure that the cap has not been exceeded. 2. Fixed fee billing arrangements require the client to pay a pre-established fee in exchange for a predetermined set of professional services. Generally, the client agrees to pay a fixed fee every month over the specified contract term. These contracts are for varying periods and generally permit the client to cancel the contract before the end of the term. We recognize revenues for our professional services rendered under these fixed fee billing arrangements monthly over the specified contract term or, in certain cases, revenues are recognized on the proportional performance method of accounting based on the ratio of labor hours incurred to estimated total labor hours, which we consider to be the best available indicator of the pattern and timing in which such contract obligations are fulfilled. 3. Performance based or contingent billing arrangements require the client to pay fees based on the attainment of contractually defined objectives. Often this type of arrangement supplements a time and expense or fixed fee engagement, where payment of a performance based fee is deferred until the conclusion of the matter or upon the achievement of performance based criteria. We do not recognize revenues under performance based billing arrangements until all related performance criteria are met and collection of the fee is reasonably assured. 4. Unit based revenues, predominantly in our Technology segment, are based on either the amount of data stored or processed, the number of concurrent users accessing the information, or the number of pages or images processed for a client. We recognize revenues for our professional services rendered under unit based engagements as the services are provided based on agreed-upon rates. Revenues from hosting fees are recognized based on the units used over the term of the hosting agreement. Additionally, we may provide client incentives in the form of volume fee discounts, which are recorded as a reduction of revenues. We also generate certain revenues from software licenses and maintenance, predominantly in our Technology segment. We have vendor-specific objective evidence of fair value for support and maintenance separate from software for the majority of our products. Accordingly, when licenses of certain offerings are included in an arrangement with support and maintenance, we recognize the license revenues upon delivery of the license and recognize the support and maintenance revenues over the term of the maintenance service period. Our software license agreements generally do not include acceptance provisions. If an arrangement allows for customer acceptance of the software, we defer revenues until the earlier of customer acceptance or when the acceptance provisions lapse. Some clients pay us a retainer before we begin work for them. We hold retainers on deposit until we have completed the work. We generally apply these retainers to final billings and refund any excess over the final amount billed to clients, as appropriate. 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. Revenues recognized, but not yet billed to clients, have been recorded as “Unbilled receivables” in the Consolidated Balance Sheets. 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 depreciation expense on the equipment of our Technology segment that is used to host and process client information, as well as amortization of software. 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. We use the Black-Scholes pricing model to determine the fair value of stock options on the dates 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. The fair value of restricted share awards and restricted stock units are measured based on the closing price of the underlying stock on the dates of grant. The fair value of performance share units that contain market-based vesting conditions are measured using a Monte Carlo pricing model. The compensation cost of performance stock units 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 all our share-based awards, we estimate the expected forfeiture rate and recognize expense only for those shares expected to vest. We estimate the forfeiture rate based on historical experience. Groups of share-based award holders that have similar historical behavior with regard to option exercise timing and forfeiture rates are considered separately for valuation and attribution purposes. Forfeitures are estimated at the time an award is granted and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Research and Development Research and development costs related to software development are expensed as incurred. When we have determined that technological feasibility for our software products is reached, development costs related to the project are capitalized until such products are available for general release to customers as discussed in “Capitalized Software to Be Sold, Leased or Otherwise Marketed.” Research and development expense related to software development totaled $17.5 million, $19.5 million and $19.3 million for the years ended December 31, 2016, 2015 and 2014, respectively, and are included in “Selling, general and administrative 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 $15.9 million for the year ended December 31, 2016, $18.2 million for the year ended December 31, 2015 and $20.7 million for the year ended December 31, 2014. Acquisition-Related Contingent Consideration The fair value of acquisition-related contingent consideration is estimated at the acquisition date utilizing a probability weighted estimated cash flow stream adjusted for the expected timing of each payment. 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 adjust the discounted value of acquisition contingent consideration liabilities to their present value. Any remeasurement gain or loss and the accretion expense related to the increase in the net present value of the contingent liability are included in “Acquisition-related contingent consideration” on our 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., as well as foreign countries in which we conduct business. Our effective income tax rate may fluctuate due to a change in the mix of earnings between higher and lower state or country tax jurisdictions and the impact of non-deductible expenses. Additionally, we record deferred tax assets and liabilities using the asset and liability method of accounting, which requires us to measure these assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In evaluating our ability to recover our deferred tax assets, we consider all available positive and negative evidence, including scheduled reversals of temporary differences, projected future taxable income, tax planning strategies and results of recent operations. Cash Equivalents and Short-Term Investments Cash equivalents consist of highly liquid short-term investments, principally money market funds, commercial paper and certificates of deposit with maturities of three months or less at the time of purchase. In addition, we may invest in short-term investments with maturities greater than three months, consisting primarily of certificates of deposit and treasury bills. Any short-term investments are classified as available-for-sale and carried at fair value, based on quoted market prices or other readily available market information. Short-term investments are included in “Prepaid assets and other current assets” on our Consolidated Balance Sheets. Allowance for Doubtful Accounts and Unbilled Services We maintain an allowance for doubtful accounts and unbilled services for estimated losses resulting from potential fee reductions negotiated by clients or imposed by bankruptcy courts or other regulatory agencies, the inability of clients to pay our fees, as well as from disputes that affect our ability to fully collect our billed accounts receivable. Even if a bankruptcy court approves our services, the court has the discretion to require us to refund all or a portion of our fees due to the outcome of the case or a variety of other factors. We estimate the allowance for all receivable risks by reviewing the status of each matter and recording reserves based on our experience and knowledge of the particular client and historical collection patterns. However, our actual experience may vary significantly from our estimates. If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay our fees, or bankruptcy courts require us to refund certain fees, we may need to record additional allowances or write-offs in future periods. This risk related to a client’s non-payment may be mitigated to the extent that we receive a retainer from some of our clients prior to performing services. We record adjustments to the allowance for doubtful accounts and unbilled services as a reduction in revenues when there are changes in estimates of fee reductions that may be imposed by bankruptcy courts and other regulatory institutions for both billed and unbilled receivables. The allowance for doubtful accounts and unbilled services is also adjusted after the related work has been billed to the client and we discover that collectability is not reasonably assured. These adjustments are recorded to “Selling, general and administrative expenses” on the Consolidated Statements of Comprehensive Income and totaled $8.9 million, $15.6 million and $18.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. Property and Equipment We record property and equipment, including improvements that extend useful lives, at cost, while maintenance and repairs are charged to operations as incurred. We calculate depreciation using the straight-line method based on estimated useful lives ranging from three to seven years for furniture, equipment and internal use software. We amortize leasehold improvements over the shorter of the estimated useful life of the asset or the lease term. We capitalize costs incurred during the application development stage of computer software developed or obtained for internal use. Capitalized software developed for internal use is classified within furniture, equipment and software and is amortized over the estimated useful life of the software, which is generally three years. Notes Receivable from Employees Notes receivable from employees 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 service 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 to 10 years. The amount of expense recognized at any date must at least equal the portion of the principal forgiven on the forgiveness date. Goodwill and Other Intangible Assets Goodwill represents the purchase price of acquired businesses in excess of the fair market value of net assets acquired. Other intangible assets may include trade names, customer relationships, non-competition agreements and software. We test our goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter or whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Factors we consider important 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 using a fair value approach 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. When available and as appropriate in order to estimate fair values, we use market multiples derived from a set of guideline companies and/or guideline transactions (market approaches), discounted cash flows (an income approach) or a combination of appropriately weighted income and market approaches. Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. We amortize our acquired finite-lived intangible assets on a straight-line basis over periods ranging from one to 15 years. Impairment of Long-Lived Assets We review long-lived assets such as property and equipment 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. Capitalized Software to Be Sold, Leased or Otherwise Marketed We expense costs for software products that will be sold, leased or otherwise marketed until technological feasibility has been established. Thereafter, eligible software development costs are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. Capitalized costs are amortized based on current and future revenues for each product with an annual minimum equal to the straight-line amortization over the remaining estimated economic life of the product. We classify software products to be sold, leased or otherwise marketed as noncurrent “Other assets” on our Consolidated Balance Sheets. Unamortized capitalized software costs were $16.6 million and $17.6 million as of December 31, 2016 and 2015, respectively. Amortization expense for capitalized software costs was $12.0 million, $6.5 million and $6.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. Leases We lease office space and equipment under non-cancelable operating leases. The leases normally provide for the payment of minimum annual rentals and may include scheduled rent increases. Some leases include provisions for renewal options of up to five years. Some of our leases for office space contain provisions whereby the future rental payments may be adjusted for increases in operating expenses above specified amounts. We recognize rent expense under operating leases on a straight-line basis over the non-cancelable lease term. For leases with scheduled rent increases, this treatment results in a deferred rent liability, which is classified within “Other liabilities” on the Consolidated Balance Sheets. Lease inducements, such as tenant improvement allowances, cash inducements and rent abatements, are amortized on a straight-line basis over the life of the lease. Unamortized lease inducements are also included in deferred rent. Deferred rent totaled $41.9 million and $44.9 million for the years ended December 31, 2016 and 2015, respectively. 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 our Consolidated Balance Sheets. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Standards | 2. New Accounting Standards In October 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which removes the prohibition against immediate recognition of current and deferred income tax effects on intra-entity transfers of assets other than inventory. This standard is effective January 1, 2019, although early adoption is permitted as early as January 1, 2017. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The ASU will require that the difference between the actual tax benefit realized upon option exercise or restricted share or restricted stock unit release and the tax benefit recorded based on the fair value of the stock award at the time of grant (the “excess tax benefits”) to be reflected as a reduction of the current period provision for income taxes with any shortfall recorded as an increase in the tax provision rather than as a component of changes to additional paid-in capital. The ASU will also require the excess tax benefit or detriment realized to be reflected as operating cash flows rather than financing cash flows. The standard is effective beginning January 1, 2017. If we had adopted this ASU on January 1, 2015, the provision for income taxes would have increased by $2.1 million, $2.0 million and $1.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. The actual benefit or detriment realized in future periods cannot be precisely estimated and will vary based on the timing and relative value realized for future share-based transactions. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) • Engagements that contain performance-based arrangements, in which we earn a success or completion fee when and if certain predefined outcomes occur; • Engagements with fixed-fees that have multiple performance obligations; and • Engagements that include discounting arrangements. We have not completed our assessment and have not yet determined whether the impact of the adoption of this standard on our consolidated financial statements will be material. We will adopt this standard on January 1, 2018 but have not yet concluded on a transition approach. We expect to complete our assessment process, including selecting a transition method for adoption during the first half of 2017. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 3. Earnings Per Common Share Basic earnings per common share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share adjust 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 stock, each using the treasury stock method. Year Ended December 31, 2016 2015 2014 Numerator — basic and diluted Net income $ 85,520 $ 66,053 $ 58,807 Denominator Weighted average number of common shares outstanding — basic 40,943 40,846 39,726 Effect of dilutive stock options 281 388 375 Effect of dilutive restricted shares 485 495 628 Weighted average number of common shares outstanding — diluted 41,709 41,729 40,729 Earnings per common share — basic $ 2.09 $ 1.62 $ 1.48 Earnings per common share — diluted $ 2.05 $ 1.58 $ 1.44 Antidilutive stock options and restricted shares 1,404 1,734 2,967 |
Special Charges
Special Charges | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Special Charges | 4. Special Charges During the year ended December 31, 2016, we recorded special charges of $10.4 million. The charges are related to employee terminations in our Technology segment, health solutions practice of our Forensic and Litigation Consulting segment, and Corporate infrastructure group. The charges consisted of salary continuance and other contractual employee-related costs. There were no special charges recorded during the year ended December 31, 2015. During the year ended December 31, 2014, we recorded special charges of $16.3 million. The charges reflect the contractual post-employment payments and equity award expense acceleration, net of forfeitures of awards and annual bonus payments of former executive officers, the termination of the corporate airplane lease, the closure of the Company’s former West Palm Beach executive office and related lease termination, and updated forecasts of expected sublease income for corporate and segment offices previously vacated. The following table details the special charges by segment. Year Ended December 31, Special Charges by Segment 2016 2014 Corporate Finance & Restructuring $ — $ 84 Forensic and Litigation Consulting 2,304 308 Economic Consulting — 12 Technology 7,529 19 Strategic Communications — 3 9,833 426 Unallocated Corporate 612 15,913 Total $ 10,445 $ 16,339 The table below summarizes the activity related to the liabilities for these costs for the years ended December 31, 2016 and 2015. Employee Lease Termination Termination Costs Costs Total Balance at December 31, 2014 $ 13,759 $ 4,854 $ 18,613 Additions — — — Payments (5,826 ) (1,212 ) (7,038 ) Foreign currency translation adjustment and other (1) (165 ) 403 238 Balance at December 31, 2015 $ 7,768 $ 4,045 $ 11,813 Additions (2) 10,724 — 10,724 Payments (10,264 ) (896 ) (11,160 ) Foreign currency translation adjustment and other (3 ) 186 183 Balance at December 31, 2016 (3) $ 8,225 $ 3,335 $ 11,560 (1) (2) (3) |
Interest Income and Other
Interest Income and Other | 12 Months Ended |
Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Interest Income and Other | 5. 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 2016 2015 2014 Interest income $ 4,420 $ 4,996 $ 5,853 Foreign exchange transaction gains (losses), net 4,937 (940 ) (2,830 ) Other 1,109 (824 ) 1,647 Total $ 10,466 $ 3,232 $ 4,670 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 6. Share-Based Compensation Share-Based Incentive Compensation Plans Under the Company’s 2009 Omnibus Incentive Compensation Plan (Amended and Restated Effective as of June 3, 2015) (the “2009 Omnibus Plan”), we are authorized to issue up to 7,450,000 shares of common stock, of which no more than 5,400,000 shares of common stock may be issued in the form of restricted or unrestricted shares or other stock-based awards. As of December 31, 2016, 1,287,549 shares of common stock were available for grant under our 2009 Omnibus Plan, all of which may be granted as stock-based awards. 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, 2016, 2015 and 2014. 2016 2015 2014 Restricted Restricted Restricted Income Statement Classification Options (1) Shares (2) Options (1) Shares (2) Options (1) Shares (2) Direct cost of revenues $ 2,815 $ 7,530 $ 3,736 $ 6,532 $ 5,404 $ 8,951 Selling, general and administrative expenses 966 9,117 1,482 7,469 1,783 8,508 Special charges (3) 56 49 — — (126 ) (990 ) Total $ 3,837 $ 16,696 $ 5,218 $ 14,001 $ 7,061 $ 16,469 (1) Includes options and cash-settled stock appreciation rights. (2) Includes restricted share awards, performance and market condition restricted stock units, and cash-settled restricted stock units. (3) Expense acceleration of $0.2 million related to restricted shares and $0.1 million related to options were netted with expense reversal resulting from forfeitures of $1.2 million and $0.2 million, respectively, for the year ended December 31, 2014. There were no forfeitures related to special charges for the year ended December 31, 2016. (See Note 4, “Special Charges” for information related to the special charges). Stock Options We use the Black-Scholes option-pricing model to value our option grants using the assumptions in the following table. Year Ended December 31, Assumptions 2016 2015 2014 Risk-free interest rate 0.98% 1.07% - 1.70% 0.99% Dividend yield 0% 0% 0% Expected term 3 years 3-5 years 3-6 years Stock price volatility 34.33% 31.03% - 40.36% 31.05% - 37.60% A summary of our stock option activity during the year ended December 31, 2016 is presented below. The aggregate intrinsic value 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 2016 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, 2016. The aggregate intrinsic value changes based on fluctuations in the fair market value per share of our common stock. Weighted Average Weighted Remaining Average Contractual Aggregate Exercise Term Intrinsic Shares Price (in Years) Value Stock options outstanding at December 31, 2015 3,349 $ 39.01 Stock options granted 119 $ 34.33 Stock options exercised (816 ) $ 33.30 Stock options forfeited (234 ) $ 38.17 Stock options outstanding at December 31, 2016 2,418 $ 40.79 4.8 $ 16,876 Stock options exercisable at December 31, 2016 1,593 $ 43.95 3.8 $ 8,290 Cash received from option exercises for the years ended December 31, 2016, 2015 and 2014 was $27.3 million, $21.1 million and $11.3 million, respectively. The actual tax benefit realized from stock options exercised totaled $4.8 million, $5.5 million and $1.9 million for the years ended December 31, 2016, 2015 and 2014, 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, 2016, 2015 and 2014 was $6.9 million, $8.1 million and $4.4 million, respectively. The following is a summary of stock options outstanding and exercisable as of December 31, 2016. Options Outstanding Options Exercisable Weighted Average Weighted Remaining Weighted Average Contractual Average Exercise Term Exercise Exercise Price Range Shares Price (in Years) Shares Price $26.68 - $33.95 544 $ 31.51 6.2 216 $ 32.03 $34.33 - $36.87 556 $ 35.66 6.9 246 $ 35.95 $36.89 - $39.54 484 $ 38.01 4.4 376 $ 38.14 $39.84 - $54.30 486 $ 45.13 3.6 407 $ 45.67 $55.63 - $70.55 348 $ 61.28 1.6 348 $ 61.28 2,418 1,593 As of December 31, 2016, there was $3.8 million of unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized ratably over a weighted average period of 1.6 years. Restricted Share Awards A summary of our unvested restricted share activity during the year ended December 31, 2016 is presented below. The fair value of unvested restricted share awards is determined based on the closing market price per share of our common stock on the grant date. Weighted Average Grant Date Fair Shares Value Unvested restricted share awards outstanding at December 31, 2015 783 $ 36.55 Restricted share awards granted 527 $ 38.37 Restricted share awards vested (280 ) $ 35.67 Restricted share awards forfeited (89 ) $ 35.50 Unvested restricted share awards outstanding at December 31, 2016 941 $ 37.92 As of December 31, 2016, there was $21.4 million of unrecognized compensation cost related to unvested restricted share awards. That cost is expected to be recognized ratably over a weighted average period of 4.7 years. The total fair value of restricted share awards that vested during the years ended December 31, 2016, 2015 and 2014 was $10.4 million, $14.6 million and $20.5 million, respectively. Restricted Stock Units A summary of our restricted stock units activity during the year ended December 31, 2016 is presented below. The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value based on the closing price of our common stock on the last trading day of 2016. The fair value of restricted stock units is determined based on the closing market price per share of our common stock on the grant date. Weighted Average Date Fair Intrinsic Shares Value Value Restricted stock units outstanding at December 31, 2015 623 $ 37.53 Restricted stock units granted 66 $ 36.02 Restricted stock units released (221 ) $ 36.32 Restricted stock units forfeited (3 ) $ 40.46 Restricted stock units outstanding at December 31, 2016 465 $ 37.87 $ 20,980 The intrinsic value of restricted stock units released reflects the market value of our common stock on the date of release. The total intrinsic value of restricted stock units released for the years ended December 31, 2016, 2015 and 2014 was $9.3 million, $3.1 million and $1.7 million, respectively. As of December 31, 2016, there was $0.7 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 1.4 years. The total fair value of restricted stock units that vested during the years ended December 31, 2016, 2015 and 2014 was $2.4 million, $4.4 million and $2.7 million, respectively. Performance Stock Units A summary of our performance stock units activity during the year ended December 31, 2016 is presented below. The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value based on the closing price of our common stock on the last trading day of 2016. The fair value of performance stock units is determined based on the closing market price per share of our common stock on the grant date. Weighted Average Date Fair Intrinsic Shares Value Value Performance stock units outstanding at December 31, 2015 135 $ 28.62 Performance stock units granted 84 $ 23.83 Performance stock units released — $ — Performance stock units forfeited (13 ) $ 29.11 Performance stock units outstanding at December 31, 2016 206 $ 26.64 $ 9,276 As of December 31, 2016, there was $1.3 million of unrecognized compensation cost related to unvested performance stock units. That cost is expected to be recognized ratably over a weighted average period of 1.0 years. There are no performance stock units that vested during the years ended December 31, 2016, 2015 and 2014. The table below reflects the weighted average grant date fair value per share of stock options, restricted share awards, restricted stock units and performance stock units awarded during the years ended December 31, 2016, 2015 and 2014. Year Ended December 31, 2016 2015 2014 Weighted average fair value of grants Stock options $ 8.41 $ 10.85 $ 10.77 Restricted share awards, restricted stock units and performance stock units $ 37.64 $ 39.01 $ 32.87 In addition to the awards discussed above, we have awarded employees cash-settled stock appreciation rights, cash-settled restricted stock units and cash-settled performance stock units. The cash-settled performance stock units are subject to market conditions based on the adjusted total shareholder return of the Company as compared with the adjusted total shareholder return of the adjusted Standard & Poor’s 500 for the three-year period ending March 31, 2017. During the year ended December 31, 2016, we awarded a total of 5,162 cash-settled restricted stock units to employees in a foreign country. There were no cash-settled stock appreciation rights or cash-settled performance stock units awarded during the year ended December 31, 2016. As of December 31, 2016, there were 85,275 cash-settled stock appreciation rights, 13,678 cash-settled restricted stock units and 49,472 cash-settled performance stock units outstanding. |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | 7. Balance Sheet Details December 31, 2016 2015 Prepaid expenses and other current assets Prepaid expenses $ 32,655 $ 30,779 Income tax receivable 14,890 15,147 Other current assets 12,707 10,040 Total $ 60,252 $ 55,966 Accounts payable, accrued expenses and other Accounts payable $ 15,779 $ 9,937 Accrued expenses 43,137 46,279 Accrued interest payable 2,265 2,585 Accrued taxes payable 9,231 17,309 Other current liabilities 16,908 13,735 Total $ 87,320 $ 89,845 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 8. Financial Instruments We consider the recorded value of our certain financial assets and liabilities, which consist primarily of cash equivalents, accounts receivable and accounts payable, to approximate the fair value of the respective assets and liabilities as of December 31, 2016 and 2015, based on the short-term nature of the assets and liabilities. We determine the fair value of our long-term debt primarily based on quoted market prices for our 6% Senior Notes Due 2022 (the “2022 Notes”) as of December 31, 2016. The fair value of our borrowings on our s enior secured bank revolving credit facility (“ The following table presents the carrying amounts and estimated fair values of our other financial instruments as of December 31, 2016 and 2015. December 31, 2016 2015 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Liabilities Acquisition-related contingent consideration, including current portion (1) $ 5,692 $ 5,692 $ 4,394 $ 4,394 Long-term debt 370,000 382,750 500,000 513,500 Total $ 375,692 $ 388,442 $ 504,394 $ 517,894 (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. We estimate the fair value of acquisition-related contingent consideration using a probability-weighted discounted cash flow model. This fair value measure is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Fair value measurements characterized within Level 3 of the fair value hierarchy are measured based on unobservable inputs that are supported by little or no market activity and reflect our own assumptions in measuring fair value. The significant unobservable inputs used in the fair value measurements of our acquisition-related contingent consideration are our measures of the future profitability and related cash flows and discount rates. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumptions used for the discount rates is accompanied by a directionally opposite change in the fair value measurement, and a change in the assumptions used for the future cash flows is accompanied by a directionally similar change in the fair value measurement. The fair value of the contingent consideration is reassessed at each reporting period by the Company based on additional information as it becomes available. Any change in the fair value of an acquisition’s contingent consideration liability results in a remeasurement gain or loss that is recorded as income or expense, respectively, and is included in “Acquisition-related contingent consideration” on the Consolidated Statements of Comprehensive Income. During the year ended December 31, 2016, we recorded a $1.4 million expense related to the increase in the liability for future expected contingent consideration payments. During the year ended December 31, 2015 and 2014, we recorded a $1.9 million and $2.7 million gain related to the change in fair value of future contingent consideration payments, respectively. Accretion expense for acquisition-related contingent consideration totaled $0.8 million, $0.7 million and $1.0 million for the year ended December 31, 2016, 2015 and 2014, respectively, and is included within “Acquisition-related contingent consideration” in the Consolidated Statements of Comprehensive Income. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 9. Property and Equipment Property and equipment consist of the following. December 31, 2016 2015 Leasehold improvements $ 69,278 $ 83,875 Construction in progress 2,349 2,147 Furniture and equipment 35,780 38,015 Computer equipment and software 94,637 111,191 202,044 235,228 Accumulated depreciation and amortization (140,188 ) (160,468 ) Property and equipment, net $ 61,856 $ 74,760 Depreciation expense for property and equipment totaled $26.7 million, $24.9 million and $28.5 million during the years ended December 31, 2016, 2015 and 2014, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 10. Goodwill and Other Intangible Assets Goodwill The table below summarizes the changes in the carrying amount of goodwill by reportable segment. Corporate Forensic Finance & Litigation Economic Strategic Restructuring Consulting Consulting Technology Communications Total Balance at December 31, 2014 Goodwill $ 446,066 $ 238,173 $ 269,897 $ 117,967 $ 333,725 $ 1,405,828 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2014 446,066 238,173 269,897 117,967 139,586 1,211,689 Acquisitions (1) 70 — — — — 70 Foreign currency translation adjustment and other (4,588 ) (2,962 ) (556 ) (79 ) (5,276 ) (13,461 ) Balance at December 31, 2015 Goodwill 441,548 235,211 269,341 117,888 328,449 1,392,437 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2015 441,548 235,211 269,341 117,888 134,310 1,198,298 Acquisitions (1) — — — — 218 218 Foreign currency translation adjustment and other (882 ) (4,667 ) (1,132 ) (281 ) (11,553 ) (18,515 ) Balance at December 31, 2016 Goodwill 440,666 230,544 268,209 117,607 317,114 1,374,140 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2016 $ 440,666 $ 230,544 $ 268,209 $ 117,607 $ 122,975 $ 1,180,001 (1) Includes adjustments during the purchase price allocation period. Other Intangible Assets Other intangible assets with finite lives are amortized over their estimated useful lives. We recorded amortization expense of $10.3 million, $11.7 million and $15.5 million during the years ended December 31, 2016, 2015 and 2014, respectively. Based solely on the amortizable intangible assets recorded as of December 31, 2016, we estimate amortization expense to be $9.4 million in 2017, $7.9 million in 2018, $7.3 million in 2019, $7.1 million in 2020, $6.5 million in 2021 and an aggregate of $8.3 million in years after 2021. Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, changes in useful lives or other relevant factors or changes. December 31, 2016 December 31, 2015 Weighted Average Gross Net Gross Net Useful Life Carrying Accumulated Carrying Carrying Accumulated Carrying in Years Amount Amortization Amount Amount Amortization Amount Amortized intangible assets Customer relationships 13.6 $ 119,736 $ 75,212 $ 44,524 $ 128,512 $ 72,941 $ 55,571 Non-competition agreements 6.5 1,263 1,246 17 7,263 7,052 211 Acquired software 9.3 3,171 1,292 1,879 3,273 940 2,333 Trade names 3.0 360 260 100 360 140 220 124,530 78,010 46,520 139,408 81,073 58,335 Unamortized intangible assets Trade names Indefinite 5,600 — 5,600 5,600 — 5,600 Total 13.4 $ 130,130 $ 78,010 $ 52,120 $ 145,008 $ 81,073 $ 63,935 |
Notes Receivable from Employees
Notes Receivable from Employees | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Notes Receivable from Employees | 11. Notes Receivable from Employees The table below summarizes the changes in the carrying amount of our notes receivable from employees. December 31, 2016 2015 Notes receivable from employees ― $ 142,997 $ 149,357 Notes granted 33,943 26,827 Repayments (12,985 ) (4,622 ) Amortization expense (25,566 ) (25,977 ) Cumulative translation adjustment and other (2,001 ) (2,588 ) Notes receivable from employees ― 136,388 142,997 Less current portion (31,864 ) (36,115 ) Notes receivable from employees, net of current portion $ 104,524 $ 106,882 As of December 31, 2016 and 2015, there were 307 and 285 notes outstanding, respectively. Total amortization expense for the years ended December 31, 2016, 2015 and 2014 was $25.6 million, $26.0 million and $32.1 million, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 12. Long-Term Debt The table below summarizes the components of the Company’s long-term debt. December 31, 2016 2015 6% senior notes due 2022 $ 300,000 $ 300,000 Senior bank credit facility 70,000 200,000 Total debt 370,000 500,000 Less deferred debt issue costs (4,472 ) (5,228 ) Long-term debt, net (1) $ 365,528 $ 494,772 (1) There were no current portions of long-term debt as of December 31, 2016 and 2015. 6% Senior Notes Due 2022. The 2022 Notes have been registered with the Securities and Exchange Commission. Cash interest is payable semiannually beginning on May 15, 2013 at a rate of 6% per year. The 2022 Notes will mature on November 15, 2022. The 2022 Notes are guaranteed, with certain exceptions, by our existing and future domestic subsidiaries. The 2022 Notes and the guarantees are our and the guarantors’ general unsecured senior obligations. The indebtedness evidenced by the 2022 Notes and the guarantees (i) rank equally in right of payment with all of FTI Consulting, Inc.’s and the guarantors’ existing and future senior indebtedness, (ii) rank senior in right of payment to any existing and future subordinated indebtedness, (iii) are effectively junior to all of FTI Consulting, Inc.’s and the guarantors’ secured debt, including borrowings under the Senior Bank Credit Facility, to the extent of the value of the collateral securing such indebtedness, and (iv) are structurally subordinated to all existing and future indebtedness and other liabilities of any current and future non-guarantor subsidiaries (other than indebtedness and liabilities owed to FTI Consulting, Inc. or one of its guarantor subsidiaries). At any time prior to November 15, 2017, we may redeem the 2022 Notes, in whole or in part, at a price equal to 100% of the principal amount plus an applicable “make-whole” premium and accrued and unpaid interest, if any, to the redemption date. The 2022 Notes are subject to redemption at our option, in whole or in part, at any time after November 15, 2017, upon not less than 30 nor more than 60 days prior notice at the following redemption prices (expressed as percentages of the principal amount to be redeemed) set forth below plus accrued and unpaid interest, if any, to, but excluding, the redemption date . Year Redemption Price 2017 103.000 % 2018 102.000 % 2019 101.000 % 2020 and thereafter 100.000 % Debt issue costs of approximately $7.6 million were capitalized and are being amortized over the term of the 2022 Notes, which approximates the effective interest method. 6 3 4 On August 14, 2015, the Company commenced a cash tender offer for any and all of the 6 ¾% Senior Notes Due 2020 (the “ 2020 Notes”) for a price equal to $1,037.88 per $1,000 principal amount plus accrued interest (the “Tender Offer”). The Tender Offer expired on August 27, 2015, and on August 28, 2015, we retired an aggregate of $192.9 million principal amount of the 2020 Notes pursuant to the Tender Offer. On September 1, 2015, the Company issued a notice of redemption for the balance of $207.1 million principal amount of 2020 Notes that remained outstanding after the Tender Offer, with a redemption date of October 1, 2015. On September 23, 2015, pursuant to the terms of the 2020 Note Indenture, we satisfied and discharged the $207.1 million principal amount of the 2020 Notes that remained outstanding by irrevocably depositing with a trustee, prior to the redemption date, sufficient funds to repurchase all such 2020 Notes at a redemption price of $1,033.75 (plus accrued and unpaid interest through September 30, 2015) for each $1,000 aggregate principal amount. The 2020 Notes were subsequently redeemed by the trustee on October 1, 2015. We recognized a loss on our early extinguishment of debt of $19.6 million, consisting primarily of a redemption premium of $14.3 million and a $4.9 million non-cash write-off of unamortized deferred financing costs. This loss was recorded in “Loss on early extinguishment of debt” within the 2015 Consolidated Statements of Comprehensive Income. Senior Bank Credit Facility. On June 26, 2015, we entered into a credit agreement (the “2015 Credit Agreement”), which effectively amended and extended our prior credit agreement, dated November 27, 2012 (the “2012 Credit Agreement”). The 2012 Credit Agreement provided for a five-year $350.0 million senior secured revolving line of credit maturing on November 27, 2017. The 2015 Credit Agreement provides for a $550.0 million senior secured revolving line of credit maturing on September 26, 2020. We did not incur any early termination or prepayment penalties in connection with the replacement of the 2012 Credit Agreement. At the Company’s option, borrowings under the Senior Bank Credit Facility will bear interest at either one-, two- or three-month LIBOR or an alternative base rate, in each case plus the applicable margin. The applicable margin will fluctuate between 1.375% per annum and 2.00% per annum, in the case of LIBOR borrowings, or between 0.375% per annum and 1.00% per annum, in the case of base rate borrowings, in each case, based upon the Company’s Consolidated Total Leverage Ratio (as defined in the 2015 Credit Agreement) at such time. Under the Senior Bank Credit Facility, we are required to pay a commitment fee rate that fluctuates between 0.25% and 0.35% per annum and the letter of credit fee rate that fluctuates between 1.375% and 2.00% per annum, in each case, based upon the Company’s Consolidated Total Leverage Ratio. Under the Senior Bank Credit Facility, the lenders have a security interest in substantially all of the existing and after-acquired assets of FTI Consulting, Inc. and substantially all of our domestic subsidiaries. Subject to certain conditions, at any time prior to maturity, we will be able to invite existing and new lenders to increase the size of the Senior Bank Credit Facility under the 2015 Credit Agreement or provide new term loans under the 2015 Credit Agreement, in each case, up to a maximum of $100.0 million plus unlimited amounts as long as the effect of the new increase does not cause the Consolidated Total Leverage Ratio to be greater than 3.50 to 1.00. The 2015 Credit Agreement governing our Senior Bank Credit Facility and the indenture governing our 2022 Notes contain covenants that, among other things, limit our ability to incur additional indebtedness; create liens; pay dividends on our capital stock; make distributions or repurchases of our capital stock or make specified other restricted payments; consolidate, merge or sell assets or engage in sale-leasebacks; guarantee obligations of other entities and our foreign subsidiaries; make investments and loans; enter into transactions with affiliates or related persons, repay, redeem or purchase certain indebtedness (or modify the terms thereof), make material changes to accounting and reporting practices; and engage in any business other than consulting-related businesses or substantially related, complimentary or incidental businesses. In addition, the 2015 Credit Agreement governing our Senior Bank Credit Facility includes financial covenants that require us (i) not to exceed a maximum consolidated total leverage ratio (the ratio of total funded debt to adjusted EBITDA) and (ii) to exceed a minimum consolidated interest coverage ratio (the ratio of adjusted EBITDA less capital expenditures and cash taxes to cash interest expense). There were $70.0 million in borrowings outstanding under the Company’s Senior Bank Credit Facility as of December 31, 2016. The Company has classified these borrowings as long-term debt in the accompanying Consolidated Balance Sheets as the Company has the intent and ability, as supported by availability under the 2015 Credit Agreement, to refinance these borrowings for more than one year from the balance sheet date. Additionally, $0.7 million of the borrowing limit was used (and, therefore, unavailable) as of December 31, 2016 for letters of credit. There were $4.3 million, $5.5 million and $2.8 million of unamortized debt issue costs related to Senior Bank Credit Facility as of December 31, 2016, 2015 and 2014, respectively. These amounts were included in “Other assets” on our Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Operating Lease Commitments Rental expense, net of rental income was $54.8 million, $56.1 million and $57.8 million during the years ended December 31, 2016, 2015 and 2014, respectively. For years subsequent to December 31, 2016, future minimum payments for all operating lease obligations that have initial non-cancelable lease terms exceeding one year, net of rental income from subleases of $1.8 million in 2017, $1.3 million in 2018, $1.4 million in 2019, $0.8 million in 2020, $0.8 million in 2021 and $2.3 million thereafter are as follows. Operating Leases 2017 $ 48,712 2018 41,332 2019 37,541 2020 35,052 2021 33,181 Thereafter 74,674 Total $ 270,492 Contingencies We are subject to legal actions arising in the ordinary course of business. In management’s opinion, we believe we have adequate legal defenses and/or insurance coverage with respect to the eventuality of such actions. We do not believe any settlement or judgment relating to any pending legal action would materially affect our financial position or results of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The table below summarizes significant components of deferred tax assets and liabilities. Year Ended December 31, 2016 2015 Deferred tax assets Allowance for doubtful accounts $ 17,220 $ 17,953 Accrued vacation and bonus 38,596 37,481 Deferred rent 12,034 13,415 Share-based compensation 24,783 30,037 Notes receivable from employees 21,010 20,353 State net operating loss carryforward and credits 4,169 3,883 Foreign net operating loss carryforward 12,437 6,614 Future foreign tax credit asset 2,545 3,753 Deferred compensation 3,084 2,279 Other, net 5,284 3,754 Total deferred tax assets 141,162 139,522 Deferred tax liabilities Revenue recognition (11,590 ) (12,452 ) Property, equipment and capitalized software (6,527 ) (5,739 ) Goodwill and other intangible asset amortization (273,990 ) (247,951 ) Total deferred tax liabilities (292,107 ) (266,142 ) Valuation allowance (18,900 ) (13,167 ) Net deferred tax liabilities $ (169,845 ) $ (139,787 ) As of December 31, 2016, we have not provided for deferred taxes on $81.7 million of the undistributed non-U.S. subsidiary earnings that are considered permanently invested. If these earnings were distributed in the form of dividends or otherwise, the distributors would be subject to U.S. federal income tax of approximately $28.6 million. As of December 31, 2016 and 2015, the Company believed certain deferred tax assets principally associated with foreign net operating loss, foreign tax credit carryforwards and other related foreign balance sheet accounts, which can be carried forward for periods ranging from 20 years to indefinite, would expire unused based on updated forward-looking financial information. Therefore, valuation allowances of $18.9 million and $13.2 million were recorded against the Company’s net deferred tax assets as of December 31, 2016 and 2015, respectively. As of December 31, 2016, we have not recorded a $15.4 million deferred tax liability related to the tax basis difference in the investment in our foreign subsidiaries as the investment is considered permanent in duration. The table below summarizes the components of income before income tax provision from continuing operations. Year Ended December 31, 2016 2015 2014 Domestic $ 66,202 $ 59,408 $ 60,315 Foreign 61,601 45,978 41,096 Total $ 127,803 $ 105,386 $ 101,411 The table below summarizes the components of income tax provision from continuing operations. Year Ended December 31, 2016 2015 2014 Current Federal $ (3,326 ) $ 23,957 $ 288 State 1,686 1,943 4,681 Foreign 13,864 10,029 14,042 12,224 35,929 19,011 Deferred Federal 23,182 1,546 21,657 State 8,284 1,265 2,309 Foreign (1,407 ) 593 (373 ) 30,059 3,404 23,593 Income tax provision $ 42,283 $ 39,333 $ 42,604 Our income tax provision from continuing operations resulted in effective tax rates that varied from the statutory federal income tax rate as summarized below. Year Ended December 31, 2016 2015 2014 Income tax expense at federal statutory rate $ 44,731 $ 36,885 $ 35,494 State income taxes, net of federal benefit 6,075 1,587 3,494 Benefit from lower foreign tax rates (7,827 ) (5,973 ) (4,154 ) Valuation allowance on foreign tax credits and net operating loss carryforward 254 2,326 4,604 Other expenses not deductible for tax purposes 3,082 2,719 2,962 Adjustment to reserve for uncertain tax positions (3,547 ) 658 220 Other adjustments, net (485 ) 1,131 (16 ) Income tax provision $ 42,283 $ 39,333 $ 42,604 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 2012. We are also no longer subject to state and local or foreign tax examinations by tax authorities for years prior to 2010. Our liability for uncertain tax positions was $2.7 million and $8.1 million as of December 31, 2016 and 2015, respectively. The $5.4 million decrease in our liability for uncertain tax positions was primarily due to closure of certain income tax audits. As of December 31, 2016, our accrual for the payment of tax-related interest and penalties was not material. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 15. 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 “2016 Repurchase Program”). No time limit has been established for the completion of the program, and the program may be suspended, discontinued or replaced by the Board of Directors at any time without prior notice. During the year ended December 31, 2016, we repurchased and retired 452,300 shares of our common stock for an average price per share of $41.06, at a total cost of $18.6 million, which was paid in full in 2016. As of December 31, 2016, we have $81.4 million available under this program to repurchase additional shares. 2015 Stock Repurchase Program On November 5, 2015, our Board of Directors authorized a six-month stock repurchase program of up to $50.0 million (the “2015 Repurchase Program”). During the year ended December 31, 2015, we repurchased and retired 764,545 shares of our common stock for an average price per share of $34.68, at a cost of $26.5 million, which was paid in full in 2015. During the year ended December 31, 2016, we repurchased and retired 85,100 shares of our common stock for an average per share price of $34.16, at a total cost of $2.9 million, which was paid in full in 2016. The 2015 Repurchase Program expired on May 5, 2016. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 16. 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 percent of the participant’s eligible compensation. FTI Consulting matches each participant’s eligible 401(k) plan contributions up to the annual limit specified by the Internal Revenue Service. We made contributions related to the plan of $11.4 million, $10.9 million and $9.7 million during the years ended December 31, 2016, 2015 and 2014, respectively. We also maintain several defined contribution pension plans for our employees in the United Kingdom and other foreign countries. We contributed to these plans $6.3 million, $6.1 million and $6.0 million during the years ended December 31, 2016, 2015 and 2014, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 17. Segment Reporting We manage our business in five reportable segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications. Our Corporate Finance & Restructuring segment focuses on the strategic, operational, financial and capital needs of our clients around the world and delivers a wide range of distressed and non-distressed practice offerings. Our distressed practice offerings include corporate restructuring (and bankruptcy) and interim management services. Our non-distressed practice offerings include financings, mergers and acquisitions (“M&A”), M&A integration, valuations and tax advice, as well as financial, operational and performance improvement services. Our Forensic and Litigation Consulting segment provides law firms, companies, government clients and other interested parties with multidisciplinary, independent dispute advisory, investigations, data analytics, forensic accounting, business intelligence and risk mitigation services, as well as interim management and performance improvement services for our health solutions practice clients. Our Economic Consulting segment provides law firms, companies, government entities and other interested parties with analysis of complex economic issues for use in legal, regulatory and international arbitration proceedings, strategic decision making and public policy debates in the U.S. and around the world. Our Technology segment offers a comprehensive portfolio of information governance and e-discovery software, services and consulting support to companies, law firms, courts and government agencies worldwide. Our services allow our clients to control the risk and expense of e-discovery events more confidently, as well as manage their data in the context of compliance and risk. Our Strategic Communications segment designs and executes communications strategies for management teams and boards of directors to help them seize opportunities, manage financial, regulatory and reputational challenges, navigate market disruptions, articulate their brand, stake a competitive position, and preserve and grow their operations. We evaluate the performance of our operating segments based on Adjusted Segment EBITDA. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We define Total Adjusted Segment EBITDA, a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We use Adjusted Segment EBITDA to internally evaluate the financial performance of our segments because we believe it reflects current core operating performance and provides an indicator of the segment’s ability to generate cash. The table below presents revenues and Adjusted Segment EBITDA for our reportable segments for the years ended December 31, 2016, 2015 and 2014. Year Ended December 31, 2016 2015 2014 Revenues Corporate Finance & Restructuring $ 483,269 $ 440,398 $ 391,115 Forensic and Litigation Consulting 457,734 482,269 483,380 Economic Consulting 500,487 447,909 451,040 Technology 177,720 218,599 241,310 Strategic Communications 191,184 189,974 189,367 Total revenues $ 1,810,394 $ 1,779,149 $ 1,756,212 Adjusted Segment EBITDA Corporate Finance & Restructuring $ 97,688 $ 90,101 $ 55,492 Forensic and Litigation Consulting 57,882 64,267 90,468 Economic Consulting 74,102 62,330 59,282 Technology 25,814 39,010 63,545 Strategic Communications 30,458 27,727 22,588 Total Adjusted Segment EBITDA $ 285,944 $ 283,435 $ 291,375 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, 2016 2015 2014 Net income $ 85,520 $ 66,053 $ 58,807 Add back: Income tax provision 42,283 39,333 42,604 Interest income and other (10,466 ) (3,232 ) (4,670 ) Interest expense 24,819 42,768 50,685 Loss on early extinguishment of debt — 19,589 — Unallocated corporate expenses 88,182 81,348 84,545 Segment depreciation expense 34,064 27,717 30,267 Amortization of intangible assets 10,306 11,726 15,521 Segment special charges 9,833 — 16,339 Remeasurement of acquisition-related contingent consideration 1,403 (1,867 ) (2,723 ) Total Adjusted Segment EBITDA $ 285,944 $ 283,435 $ 291,375 The table below presents assets by segment. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and other intangible assets. December 31, 2016 2015 Corporate Finance & Restructuring $ 681,919 $ 671,605 Forensic and Litigation Consulting 400,047 437,398 Economic Consulting 496,757 498,765 Technology 189,704 200,987 Strategic Communications 214,160 239,443 Total segment assets 1,982,587 2,048,198 Unallocated corporate assets 242,781 180,820 Total assets $ 2,225,368 $ 2,229,018 The table below details information on our revenues for the years ended December 31, 2016, 2015 and 2014. Revenues have been attributed to location based on the location of the legal entity generating the revenues. Year Ended December 31, 2016 2015 2014 United States $ 1,298,492 $ 1,281,444 $ 1,256,046 United Kingdom 246,236 236,925 232,281 All other foreign countries 265,666 260,780 267,885 Total revenues $ 1,810,394 $ 1,779,149 $ 1,756,212 We do not have a single customer that represents 10 percent or more of our consolidated revenues. The table below details information on our long-lived assets and net assets attributed to geographic location based on the location of the legal entity holding the assets. December 31, 2016 December 31, 2015 United States United Kingdom Al l Foreign Countries United States United Kingdom Al l Foreign Countries Property and equipment, net of accumulated depreciation $ 39,584 $ 15,312 $ 6,960 $ 47,107 $ 20,335 $ 7,318 Net assets $ 709,634 $ 193,276 $ 304,448 $ 660,396 $ 210,801 $ 276,406 |
Supplemental Condensed Consolid
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 18. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information Substantially all of our domestic subsidiaries are guarantors of borrowings under our Senior Bank Credit Facility and 2022 Notes. The guarantees are full and unconditional and joint and several. All of our guarantors are 100% owned, direct or indirect, subsidiaries. The following financial information presents condensed consolidating balance sheets, statements of comprehensive income (loss) and statements of cash flows for FTI Consulting, all the guarantor subsidiaries, all the non-guarantor subsidiaries and the eliminations necessary to arrive at the consolidated information for FTI Consulting and its subsidiaries. For purposes of this presentation, we have accounted for our investments in our subsidiaries using the equity method of accounting. The principal eliminating entries eliminate investment in subsidiary and intercompany balances and transactions. Condensed Consolidating Balance Sheet Information as of December 31, 2016 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 47,420 $ 156 $ 168,582 $ — $ 216,158 Accounts receivable, net 137,523 163,820 173,554 — 474,897 Intercompany receivables — 1,029,800 — (1,029,800 ) — Other current assets 44,708 24,944 22,464 — 92,116 Total current assets 229,651 1,218,720 364,600 (1,029,800 ) 783,171 Property and equipment, net 25,466 14,118 22,272 — 61,856 Goodwill 558,978 416,053 204,970 — 1,180,001 Other intangible assets, net 21,959 13,393 34,725 (17,957 ) 52,120 Investments in subsidiaries 2,065,819 490,634 — (2,556,453 ) — Other assets 47,308 65,398 35,514 — 148,220 Total assets $ 2,949,181 $ 2,218,316 $ 662,081 $ (3,604,210 ) $ 2,225,368 Liabilities Intercompany payables $ 1,027,050 $ — $ 2,750 $ (1,029,800 ) $ — Other current liabilities 137,710 129,810 110,935 — 378,455 Total current liabilities 1,164,760 129,810 113,685 (1,029,800 ) 378,455 Long-term debt, net 365,528 — — — 365,528 Other liabilities 211,535 16,411 46,081 — 274,027 Total liabilities 1,741,823 146,221 159,766 (1,029,800 ) 1,018,010 Stockholders' equity 1,207,358 2,072,095 502,315 (2,574,410 ) 1,207,358 Total liabilities and stockholders' equity $ 2,949,181 $ 2,218,316 $ 662,081 $ (3,604,210 ) $ 2,225,368 Condensed Consolidating Balance Sheet Information as of December 31, 2015 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 35,211 $ 165 $ 114,384 $ — $ 149,760 Accounts receivable, net 159,121 169,488 171,175 — 499,784 Intercompany receivables — 936,452 62,651 (999,103 ) — Other current assets 44,086 25,627 22,368 — 92,081 Total current assets 238,418 1,131,732 370,578 (999,103 ) 741,625 Property and equipment, net 33,699 13,409 27,652 — 74,760 Goodwill 558,978 416,053 223,267 — 1,198,298 Other intangible assets, net 25,863 15,571 43,542 (21,041 ) 63,935 Investments in subsidiaries 1,995,409 486,462 — (2,481,871 ) — Other assets 40,359 72,981 37,060 — 150,400 Total assets $ 2,892,726 $ 2,136,208 $ 702,099 $ (3,502,015 ) $ 2,229,018 Liabilities Intercompany payables $ 930,066 $ 8,921 $ 60,116 $ (999,103 ) $ — Other current liabilities 135,421 107,188 104,468 — 347,077 Total current liabilities 1,065,487 116,109 164,584 (999,103 ) 347,077 Long-term debt, net 494,772 — — — 494,772 Other liabilities 184,864 12,562 42,140 — 239,566 Total liabilities 1,745,123 128,671 206,724 (999,103 ) 1,081,415 Stockholders' equity 1,147,603 2,007,537 495,375 (2,502,912 ) 1,147,603 Total liabilities and stockholders' equity $ 2,892,726 $ 2,136,208 $ 702,099 $ (3,502,015 ) $ 2,229,018 Condensed Consolidating Statement of Comprehensive Income for the Year Ended December 31, 2016 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Revenues $ 671,408 $ 625,950 $ 522,757 $ (9,721 ) $ 1,810,394 Operating expenses Direct cost of revenues 447,254 428,158 344,820 (9,461 ) 1,210,771 Selling, general and administrative expenses 190,546 124,019 120,247 (260 ) 434,552 Special charges 2,916 6,242 1,287 — 10,445 Acquisition-related contingent consideration 6 2,158 — — 2,164 Amortization of other intangible assets 3,903 2,179 7,308 (3,084 ) 10,306 644,625 562,756 473,662 (12,805 ) 1,668,238 Operating income 26,783 63,194 49,095 3,084 142,156 Other (expense) income (27,228 ) (2,811 ) 15,686 — (14,353 ) Income (loss) before income tax provision (445 ) 60,383 64,781 3,084 127,803 Income tax provision 1,222 27,961 13,100 — 42,283 Equity in net earnings of subsidiaries 87,187 45,412 — (132,599 ) — Net income $ 85,520 $ 77,834 $ 51,681 $ (129,515 ) $ 85,520 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (41,884 ) $ — $ (41,884 ) Other comprehensive loss, net of tax — — (41,884 ) — (41,884 ) Comprehensive income $ 85,520 $ 77,834 $ 9,797 $ (129,515 ) $ 43,636 Condensed Consolidating Statement of Comprehensive Income for the Year Ended December 31, 2015 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Revenues $ 667,259 $ 754,458 $ 504,429 $ (146,997 ) $ 1,779,149 Operating expenses Direct cost of revenues 428,356 551,829 337,856 (146,597 ) 1,171,444 Selling, general and administrative expenses 189,607 121,112 122,348 (399 ) 432,668 Acquisition-related contingent consideration (1,408 ) 208 — — (1,200 ) Amortization of other intangible assets 3,944 2,861 8,442 (3,521 ) 11,726 620,499 676,010 468,646 (150,517 ) 1,614,638 Operating income 46,760 78,448 35,783 3,520 164,511 Other (expense) income (64,554 ) (4,881 ) 10,310 — (59,125 ) Income (loss) before income tax provision (17,794 ) 73,567 46,093 3,520 105,386 Income tax (benefit) provision (6,944 ) 35,579 10,698 — 39,333 Equity in net earnings of subsidiaries 76,903 31,744 — (108,647 ) — Net income $ 66,053 $ 69,732 $ 35,395 $ (105,127 ) $ 66,053 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (28,727 ) $ — $ (28,727 ) Other comprehensive loss, net of tax — — (28,727 ) — (28,727 ) Comprehensive income $ 66,053 $ 69,732 $ 6,668 $ (105,127 ) $ 37,326 Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year Ended December 31, 2014 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Revenues $ 617,843 $ 1,002,571 $ 506,181 $ (370,383 ) $ 1,756,212 Operating expenses Direct cost of revenues 401,451 778,648 334,015 (369,357 ) 1,144,757 Selling, general and administrative expenses 181,529 121,085 132,257 (1,026 ) 433,845 Special charges 15,227 30 1,082 — 16,339 Acquisition-related contingent consideration (469 ) (358 ) (849 ) — (1,676 ) Amortization of other intangible assets 4,235 2,702 12,375 (3,791 ) 15,521 601,973 902,107 478,880 (374,174 ) 1,608,786 Operating income 15,870 100,464 27,301 3,791 147,426 Other (expense) income (51,511 ) (7,104 ) 12,600 — (46,015 ) Income (loss) before income tax provision (35,641 ) 93,360 39,901 3,791 101,411 Income tax (benefit) provision (14,981 ) 43,915 13,670 — 42,604 Equity in net earnings of subsidiaries 79,467 23,633 — (103,100 ) — Net income $ 58,807 $ 73,078 $ 26,231 $ (99,309 ) $ 58,807 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (29,179 ) $ — $ (29,179 ) Other comprehensive loss, net of tax — — (29,179 ) — (29,179 ) Comprehensive income (loss) $ 58,807 $ 73,078 $ (2,948 ) $ (99,309 ) $ 29,628 Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2016 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Consolidated Operating activities Net cash provided by operating activities $ 46,908 $ 123,101 $ 63,479 $ 233,488 Investing activities Payments for acquisition of businesses, net of cash received — — (1,251 ) (1,251 ) Purchases of property and equipment and other (3,576 ) (20,185 ) (5,174 ) (28,935 ) Other 54 — — 54 Net cash used in investing activities (3,522 ) (20,185 ) (6,425 ) (30,132 ) Financing activities Borrowings under revolving line of credit, net (130,000 ) — — (130,000 ) Deposits — — 4,006 4,006 Purchase and retirement of common stock (21,489 ) — — (21,489 ) Net issuance of common stock under equity compensation plans 21,708 — — 21,708 Other 1,121 (656 ) — 465 Intercompany transfers 97,483 (102,269 ) 4,786 — Net cash (used in) provided by financing activities (31,177 ) (102,925 ) 8,792 (125,310 ) Effects of exchange rate changes on cash and cash equivalents — — (11,648 ) (11,648 ) Net increase (decrease) in cash and cash equivalents 12,209 (9 ) 54,198 66,398 Cash and cash equivalents, beginning of year 35,211 165 114,384 149,760 Cash and cash equivalents, end of year $ 47,420 $ 156 $ 168,582 $ 216,158 Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2015 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Consolidated Operating activities Net cash provided by operating activities $ 14,815 $ 83,516 $ 41,589 $ 139,920 Investing activities Payments for acquisition of businesses, net of cash received — — (575 ) (575 ) Purchases of property and equipment and other (9,192 ) (16,487 ) (5,720 ) (31,399 ) Other 79 — 158 237 Net cash used in investing activities (9,113 ) (16,487 ) (6,137 ) (31,737 ) Financing activities Borrowings under revolving line of credit, net 200,000 — — 200,000 Payments of long-term debt (425,671 ) — — (425,671 ) Payments of debt financing fees (3,843 ) — — (3,843 ) Deposits — — 3,227 3,227 Purchase and retirement of common stock (26,532 ) — — (26,532 ) Net issuance of common stock under equity compensation plans 16,666 — — 16,666 Other 485 (294 ) — 191 Intercompany transfers 97,314 (66,729 ) (30,585 ) — Net cash used in financing activities (141,581 ) (67,023 ) (27,358 ) (235,962 ) Effects of exchange rate changes on cash and cash equivalents — — (6,141 ) (6,141 ) Net increase (decrease) in cash and cash equivalents (135,879 ) 6 1,953 (133,920 ) Cash and cash equivalents, beginning of year 171,090 159 112,431 283,680 Cash and cash equivalents, end of year $ 35,211 $ 165 $ 114,384 $ 149,760 Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2014 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Consolidated Operating activities Net cash (used in) provided by operating activities $ (36,921 ) $ 142,540 $ 29,782 $ 135,401 Investing activities Payments for acquisition of businesses, net of cash received (14,729 ) (7,783 ) (955 ) (23,467 ) Purchases of property and equipment and other (12,738 ) (13,080 ) (13,438 ) (39,256 ) Other 139 — 4,989 5,128 Net cash used in investing activities (27,328 ) (20,863 ) (9,404 ) (57,595 ) Financing activities Payments of long-term debt and capital lease obligations — (6,000 ) (14 ) (6,014 ) Deposits — — 13,071 13,071 Purchase and retirement of common stock (4,367 ) — — (4,367 ) Net issuance of common stock under equity compensation plans 4,772 — — 4,772 Other 366 (555 ) (943 ) (1,132 ) Intercompany transfers 122,625 (115,457 ) (7,168 ) — Net cash provided by (used in) financing activities 123,396 (122,012 ) 4,946 6,330 Effects of exchange rate changes on cash and cash equivalents — — (6,289 ) (6,289 ) Net increase (decrease) in cash and cash equivalents 59,147 (335 ) 19,035 77,847 Cash and cash equivalents, beginning of year 111,943 494 93,396 205,833 Cash and cash equivalents, end of year $ 171,090 $ 159 $ 112,431 $ 283,680 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | 19. Quarterly Financial Data (unaudited) Quarter Ended March 31 June 30 September 30 December 31 2016 Revenues $ 470,285 $ 460,147 $ 438,042 $ 441,920 Operating expenses Direct cost of revenues 305,636 303,194 293,702 308,239 Selling, general and administrative expenses 103,609 108,245 106,220 116,478 Special charges 5,061 1,750 — 3,634 Acquisition-related contingent consideration 1,134 206 201 623 Amortization of other intangible assets 2,606 2,590 2,845 2,265 418,046 415,985 402,968 431,239 Operating income 52,239 44,162 35,074 10,681 Interest income and other 2,557 4,125 3,213 571 Interest expense (6,229 ) (6,303 ) (6,304 ) (5,983 ) Income before income tax provision 48,567 41,984 31,983 5,269 Income tax provision 18,386 15,437 10,292 (1,832 ) Net income $ 30,181 $ 26,547 $ 21,691 $ 7,101 Earnings per common share — basic $ 0.75 $ 0.65 $ 0.53 $ 0.17 Earnings per common share — diluted $ 0.73 $ 0.64 $ 0.52 $ 0.17 Weighted average common shares outstanding Basic 40,506 40,820 41,239 41,201 Diluted 41,148 41,599 42,065 42,018 Quarter Ended March 31 June 30 September 30 December 31 2015 Revenues $ 432,338 $ 449,137 $ 455,470 $ 442,204 Operating expenses Direct cost of revenues 279,030 291,469 301,609 299,336 Selling, general and administrative expenses 102,214 109,045 105,058 116,351 Acquisition-related contingent consideration 234 (1,538 ) 159 (55 ) Amortization of other intangible assets 3,012 3,007 2,900 2,807 384,490 401,983 409,726 418,439 Operating income 47,848 47,154 45,744 23,765 Interest income and other (137 ) 950 2,027 392 Interest expense (12,368 ) (12,473 ) (11,696 ) (6,231 ) Loss on early extinguishment of debt — — (19,589 ) — Income before income tax provision 35,343 35,631 16,486 17,926 Income tax provision 11,657 13,922 6,177 7,577 Net income $ 23,686 $ 21,709 $ 10,309 $ 10,349 Earnings per common share — basic $ 0.59 $ 0.53 $ 0.25 $ 0.25 Earnings per common share — diluted $ 0.57 $ 0.52 $ 0.25 $ 0.25 Weighted average common shares outstanding Basic 40,384 40,792 41,094 41,078 Diluted 41,324 41,696 41,982 41,879 The sum of the quarterly earnings per share amounts may not equal the annual amounts due to changes in the weighted average number of common shares outstanding during each quarterly period. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | FTI Consulting, Inc. and Subsidiaries Schedule II — Valuation and Qualifying Accounts (in thousands) Balance Additions Balance at Charged Charged at End Beginning to to Other of Description of Period Expense Accounts* Deductions** Period Year Ended December 31, 2016 Reserves and allowances deducted from asset accounts: Allowance for doubtful accounts and unbilled services $ 185,754 $ 8,912 $ 9,501 $ 25,348 $ 178,819 Valuation allowance for deferred tax asset $ 13,167 $ 5,733 $ — $ — $ 18,900 Year Ended December 31, 2015 Reserves and allowances deducted from asset accounts: Allowance for doubtful accounts and unbilled services $ 144,825 $ 15,564 $ 42,134 $ 16,769 $ 185,754 Valuation allowance for deferred tax asset $ 14,442 $ — $ — $ 1,275 $ 13,167 Year Ended December 31, 2014 Reserves and allowances deducted from asset accounts: Allowance for doubtful accounts and unbilled services $ 109,273 $ 18,252 $ 35,423 $ 18,123 $ 144,825 Valuation allowance for deferred tax asset $ 10,201 $ 4,241 $ — $ — $ 14,442 * Includes estimated provision for unbilled services recorded as a reduction to revenues (i.e., fee, rate and other adjustments). ** Includes estimated direct write-offs of uncollectible and unrealizable accounts receivable. |
Description of Business and S29
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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. Revenues and expenses are translated at average exchange rates for each month, while assets and liabilities are translated at balance sheet date exchange rates. Resulting net translation adjustments are recorded as a component of stockholders’ equity in “Accumulated other comprehensive income (loss).” Transaction gains and losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in “Interest income and other” on our 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. The most significant estimates made and assumptions used are the determination of the allowance for doubtful accounts and unbilled services, the assessment of the recoverability of goodwill and intangible assets and realization of deferred tax assets, the valuation of share-based compensation and the fair value of acquisition-related contingent consideration. Management bases its estimates on historical trends, current experience and other assumptions that it believes are reasonable. |
Concentrations of Risk | Concentrations of Risk We do not have a single customer that represents ten percent 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, 2016, we derived approximately 28% of our consolidated revenues from the work of professionals who are assigned to locations outside of 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 | Revenue Recognition Revenues are recognized when persuasive evidence of an arrangement exists, the related services are provided, the price is fixed or determinable and collectability is reasonably assured. If, at the outset of an arrangement, we determine that the arrangement fee is not fixed or determinable, revenues are deferred until all criteria for recognizing revenues are met. Provisions are recorded for the estimated realization adjustments on all engagements, including engagements for which fees are subject to review by bankruptcy courts and other regulatory institutions. If the client is in bankruptcy, fees for our services may be subject to approval by the court. In some cases, a portion of the fees to be paid to us by a client is required by a court to be held until completion of our work and final fee settlements have been negotiated. We make a determination whether to record all or a portion of such holdback as revenues prior to collection on a case-by-case basis. We generate the majority of our revenues from providing professional services under four types of billing arrangements: time and expense, fixed fee, performance based and unit based. 1. Time and expense billing arrangements require the client to pay based on the number of hours worked by our revenue-generating professionals at contractually agreed-upon rates. We recognize revenues for our professional services rendered under time and expense engagements based on the hours incurred at agreed-upon rates, including discounts, as work is performed. In some cases, time and expense arrangements are subject to a cap, in which case we assess work performed on a periodic basis to ensure that the cap has not been exceeded. 2. Fixed fee billing arrangements require the client to pay a pre-established fee in exchange for a predetermined set of professional services. Generally, the client agrees to pay a fixed fee every month over the specified contract term. These contracts are for varying periods and generally permit the client to cancel the contract before the end of the term. We recognize revenues for our professional services rendered under these fixed fee billing arrangements monthly over the specified contract term or, in certain cases, revenues are recognized on the proportional performance method of accounting based on the ratio of labor hours incurred to estimated total labor hours, which we consider to be the best available indicator of the pattern and timing in which such contract obligations are fulfilled. 3. Performance based or contingent billing arrangements require the client to pay fees based on the attainment of contractually defined objectives. Often this type of arrangement supplements a time and expense or fixed fee engagement, where payment of a performance based fee is deferred until the conclusion of the matter or upon the achievement of performance based criteria. We do not recognize revenues under performance based billing arrangements until all related performance criteria are met and collection of the fee is reasonably assured. 4. Unit based revenues, predominantly in our Technology segment, are based on either the amount of data stored or processed, the number of concurrent users accessing the information, or the number of pages or images processed for a client. We recognize revenues for our professional services rendered under unit based engagements as the services are provided based on agreed-upon rates. Revenues from hosting fees are recognized based on the units used over the term of the hosting agreement. Additionally, we may provide client incentives in the form of volume fee discounts, which are recorded as a reduction of revenues. We also generate certain revenues from software licenses and maintenance, predominantly in our Technology segment. We have vendor-specific objective evidence of fair value for support and maintenance separate from software for the majority of our products. Accordingly, when licenses of certain offerings are included in an arrangement with support and maintenance, we recognize the license revenues upon delivery of the license and recognize the support and maintenance revenues over the term of the maintenance service period. Our software license agreements generally do not include acceptance provisions. If an arrangement allows for customer acceptance of the software, we defer revenues until the earlier of customer acceptance or when the acceptance provisions lapse. Some clients pay us a retainer before we begin work for them. We hold retainers on deposit until we have completed the work. We generally apply these retainers to final billings and refund any excess over the final amount billed to clients, as appropriate. 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. Revenues recognized, but not yet billed to clients, have been recorded as “Unbilled receivables” in the Consolidated Balance Sheets. |
Direct Cost of Revenues | 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 depreciation expense on the equipment of our Technology segment that is used to host and process client information, as well as amortization of software. 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. We use the Black-Scholes pricing model to determine the fair value of stock options on the dates 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. The fair value of restricted share awards and restricted stock units are measured based on the closing price of the underlying stock on the dates of grant. The fair value of performance share units that contain market-based vesting conditions are measured using a Monte Carlo pricing model. The compensation cost of performance stock units 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 all our share-based awards, we estimate the expected forfeiture rate and recognize expense only for those shares expected to vest. We estimate the forfeiture rate based on historical experience. Groups of share-based award holders that have similar historical behavior with regard to option exercise timing and forfeiture rates are considered separately for valuation and attribution purposes. Forfeitures are estimated at the time an award is granted and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Research and Development | Research and Development Research and development costs related to software development are expensed as incurred. When we have determined that technological feasibility for our software products is reached, development costs related to the project are capitalized until such products are available for general release to customers as discussed in “Capitalized Software to Be Sold, Leased or Otherwise Marketed.” Research and development expense related to software development totaled $17.5 million, $19.5 million and $19.3 million for the years ended December 31, 2016, 2015 and 2014, respectively, and are included in “Selling, general and administrative expenses” on the Consolidated Statements of Comprehensive Income. |
Advertising Costs | 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 $15.9 million for the year ended December 31, 2016, $18.2 million for the year ended December 31, 2015 and $20.7 million for the year ended December 31, 2014. |
Acquisition-Related Contingent Consideration | Acquisition-Related Contingent Consideration The fair value of acquisition-related contingent consideration is estimated at the acquisition date utilizing a probability weighted estimated cash flow stream adjusted for the expected timing of each payment. 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 adjust the discounted value of acquisition contingent consideration liabilities to their present value. Any remeasurement gain or loss and the accretion expense related to the increase in the net present value of the contingent liability are included in “Acquisition-related contingent consideration” on our Consolidated Statements of Comprehensive Income. |
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., as well as foreign countries in which we conduct business. Our effective income tax rate may fluctuate due to a change in the mix of earnings between higher and lower state or country tax jurisdictions and the impact of non-deductible expenses. Additionally, we record deferred tax assets and liabilities using the asset and liability method of accounting, which requires us to measure these assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In evaluating our ability to recover our deferred tax assets, we consider all available positive and negative evidence, including scheduled reversals of temporary differences, projected future taxable income, tax planning strategies and results of recent operations. |
Cash Equivalents and Short-Term Investments | Cash Equivalents and Short-Term Investments Cash equivalents consist of highly liquid short-term investments, principally money market funds, commercial paper and certificates of deposit with maturities of three months or less at the time of purchase. In addition, we may invest in short-term investments with maturities greater than three months, consisting primarily of certificates of deposit and treasury bills. Any short-term investments are classified as available-for-sale and carried at fair value, based on quoted market prices or other readily available market information. Short-term investments are included in “Prepaid assets and other current assets” on our Consolidated Balance Sheets. |
Allowance for Doubtful Accounts and Unbilled Services | Allowance for Doubtful Accounts and Unbilled Services We maintain an allowance for doubtful accounts and unbilled services for estimated losses resulting from potential fee reductions negotiated by clients or imposed by bankruptcy courts or other regulatory agencies, the inability of clients to pay our fees, as well as from disputes that affect our ability to fully collect our billed accounts receivable. Even if a bankruptcy court approves our services, the court has the discretion to require us to refund all or a portion of our fees due to the outcome of the case or a variety of other factors. We estimate the allowance for all receivable risks by reviewing the status of each matter and recording reserves based on our experience and knowledge of the particular client and historical collection patterns. However, our actual experience may vary significantly from our estimates. If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay our fees, or bankruptcy courts require us to refund certain fees, we may need to record additional allowances or write-offs in future periods. This risk related to a client’s non-payment may be mitigated to the extent that we receive a retainer from some of our clients prior to performing services. We record adjustments to the allowance for doubtful accounts and unbilled services as a reduction in revenues when there are changes in estimates of fee reductions that may be imposed by bankruptcy courts and other regulatory institutions for both billed and unbilled receivables. The allowance for doubtful accounts and unbilled services is also adjusted after the related work has been billed to the client and we discover that collectability is not reasonably assured. These adjustments are recorded to “Selling, general and administrative expenses” on the Consolidated Statements of Comprehensive Income and totaled $8.9 million, $15.6 million and $18.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Property and Equipment | Property and Equipment We record property and equipment, including improvements that extend useful lives, at cost, while maintenance and repairs are charged to operations as incurred. We calculate depreciation using the straight-line method based on estimated useful lives ranging from three to seven years for furniture, equipment and internal use software. We amortize leasehold improvements over the shorter of the estimated useful life of the asset or the lease term. We capitalize costs incurred during the application development stage of computer software developed or obtained for internal use. Capitalized software developed for internal use is classified within furniture, equipment and software and is amortized over the estimated useful life of the software, which is generally three years. |
Notes Receivable from Employees | Notes Receivable from Employees Notes receivable from employees principally include unsecured general recourse forgivable loans and retention payments, which are provided to attract and retain certain of our senior employees and other professionals. Generally, all of the principal amount and accrued interest of the forgivable loans we make to employees and other professionals will be forgiven according to the stated terms of the loan agreement, provided that the professional is providing service 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 to 10 years. The amount of expense recognized at any date must at least equal the portion of the principal forgiven on the forgiveness date. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the purchase price of acquired businesses in excess of the fair market value of net assets acquired. Other intangible assets may include trade names, customer relationships, non-competition agreements and software. We test our goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter or whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Factors we consider important 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 using a fair value approach 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. When available and as appropriate in order to estimate fair values, we use market multiples derived from a set of guideline companies and/or guideline transactions (market approaches), discounted cash flows (an income approach) or a combination of appropriately weighted income and market approaches. Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. We amortize our acquired finite-lived intangible assets on a straight-line basis over periods ranging from one to 15 years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets such as property and equipment 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. |
Capitalized Software to Be Sold, Leased or Otherwise Marketed | Capitalized Software to Be Sold, Leased or Otherwise Marketed We expense costs for software products that will be sold, leased or otherwise marketed until technological feasibility has been established. Thereafter, eligible software development costs are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. Capitalized costs are amortized based on current and future revenues for each product with an annual minimum equal to the straight-line amortization over the remaining estimated economic life of the product. We classify software products to be sold, leased or otherwise marketed as noncurrent “Other assets” on our Consolidated Balance Sheets. Unamortized capitalized software costs were $16.6 million and $17.6 million as of December 31, 2016 and 2015, respectively. Amortization expense for capitalized software costs was $12.0 million, $6.5 million and $6.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Leases | Leases We lease office space and equipment under non-cancelable operating leases. The leases normally provide for the payment of minimum annual rentals and may include scheduled rent increases. Some leases include provisions for renewal options of up to five years. Some of our leases for office space contain provisions whereby the future rental payments may be adjusted for increases in operating expenses above specified amounts. We recognize rent expense under operating leases on a straight-line basis over the non-cancelable lease term. For leases with scheduled rent increases, this treatment results in a deferred rent liability, which is classified within “Other liabilities” on the Consolidated Balance Sheets. Lease inducements, such as tenant improvement allowances, cash inducements and rent abatements, are amortized on a straight-line basis over the life of the lease. Unamortized lease inducements are also included in deferred rent. Deferred rent totaled $41.9 million and $44.9 million for the years ended December 31, 2016 and 2015, respectively. |
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 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 our Consolidated Balance Sheets. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Year Ended December 31, 2016 2015 2014 Numerator — basic and diluted Net income $ 85,520 $ 66,053 $ 58,807 Denominator Weighted average number of common shares outstanding — basic 40,943 40,846 39,726 Effect of dilutive stock options 281 388 375 Effect of dilutive restricted shares 485 495 628 Weighted average number of common shares outstanding — diluted 41,709 41,729 40,729 Earnings per common share — basic $ 2.09 $ 1.62 $ 1.48 Earnings per common share — diluted $ 2.05 $ 1.58 $ 1.44 Antidilutive stock options and restricted shares 1,404 1,734 2,967 |
Special Charges (Tables)
Special Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Special Charges by Segment | The following table details the special charges by segment. Year Ended December 31, Special Charges by Segment 2016 2014 Corporate Finance & Restructuring $ — $ 84 Forensic and Litigation Consulting 2,304 308 Economic Consulting — 12 Technology 7,529 19 Strategic Communications — 3 9,833 426 Unallocated Corporate 612 15,913 Total $ 10,445 $ 16,339 |
Summary of Activity Related to Liability for Special Charges | The table below summarizes the activity related to the liabilities for these costs for the years ended December 31, 2016 and 2015. Employee Lease Termination Termination Costs Costs Total Balance at December 31, 2014 $ 13,759 $ 4,854 $ 18,613 Additions — — — Payments (5,826 ) (1,212 ) (7,038 ) Foreign currency translation adjustment and other (1) (165 ) 403 238 Balance at December 31, 2015 $ 7,768 $ 4,045 $ 11,813 Additions (2) 10,724 — 10,724 Payments (10,264 ) (896 ) (11,160 ) Foreign currency translation adjustment and other (3 ) 186 183 Balance at December 31, 2016 (3) $ 8,225 $ 3,335 $ 11,560 (1) (2) (3) |
Interest Income and Other (Tabl
Interest Income and Other (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 2014 Interest income $ 4,420 $ 4,996 $ 5,853 Foreign exchange transaction gains (losses), net 4,937 (940 ) (2,830 ) Other 1,109 (824 ) 1,647 Total $ 10,466 $ 3,232 $ 4,670 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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, 2016, 2015 and 2014. 2016 2015 2014 Restricted Restricted Restricted Income Statement Classification Options (1) Shares (2) Options (1) Shares (2) Options (1) Shares (2) Direct cost of revenues $ 2,815 $ 7,530 $ 3,736 $ 6,532 $ 5,404 $ 8,951 Selling, general and administrative expenses 966 9,117 1,482 7,469 1,783 8,508 Special charges (3) 56 49 — — (126 ) (990 ) Total $ 3,837 $ 16,696 $ 5,218 $ 14,001 $ 7,061 $ 16,469 (1) Includes options and cash-settled stock appreciation rights. (2) Includes restricted share awards, performance and market condition restricted stock units, and cash-settled restricted stock units. (3) Expense acceleration of $0.2 million related to restricted shares and $0.1 million related to options were netted with expense reversal resulting from forfeitures of $1.2 million and $0.2 million, respectively, for the year ended December 31, 2014. There were no forfeitures related to special charges for the year ended December 31, 2016. (See Note 4, “Special Charges” for information related to the special charges). |
Schedule of Stock Option and Grants Using Valuation Assumptions | We use the Black-Scholes option-pricing model to value our option grants using the assumptions in the following table. Year Ended December 31, Assumptions 2016 2015 2014 Risk-free interest rate 0.98% 1.07% - 1.70% 0.99% Dividend yield 0% 0% 0% Expected term 3 years 3-5 years 3-6 years Stock price volatility 34.33% 31.03% - 40.36% 31.05% - 37.60% |
Schedule of Stock Option Activity | The aggregate intrinsic value 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 2016 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, 2016. The aggregate intrinsic value changes based on fluctuations in the fair market value per share of our common stock. Weighted Average Weighted Remaining Average Contractual Aggregate Exercise Term Intrinsic Shares Price (in Years) Value Stock options outstanding at December 31, 2015 3,349 $ 39.01 Stock options granted 119 $ 34.33 Stock options exercised (816 ) $ 33.30 Stock options forfeited (234 ) $ 38.17 Stock options outstanding at December 31, 2016 2,418 $ 40.79 4.8 $ 16,876 Stock options exercisable at December 31, 2016 1,593 $ 43.95 3.8 $ 8,290 |
Schedule of Stock Options Outstanding and Exercisable Price Range Status | The following is a summary of stock options outstanding and exercisable as of December 31, 2016. Options Outstanding Options Exercisable Weighted Average Weighted Remaining Weighted Average Contractual Average Exercise Term Exercise Exercise Price Range Shares Price (in Years) Shares Price $26.68 - $33.95 544 $ 31.51 6.2 216 $ 32.03 $34.33 - $36.87 556 $ 35.66 6.9 246 $ 35.95 $36.89 - $39.54 484 $ 38.01 4.4 376 $ 38.14 $39.84 - $54.30 486 $ 45.13 3.6 407 $ 45.67 $55.63 - $70.55 348 $ 61.28 1.6 348 $ 61.28 2,418 1,593 |
Schedule of Unvested Restricted Stock-Based Activity | The fair value of unvested restricted share awards is determined based on the closing market price per share of our common stock on the grant date Weighted Average Grant Date Fair Shares Value Unvested restricted share awards outstanding at December 31, 2015 783 $ 36.55 Restricted share awards granted 527 $ 38.37 Restricted share awards vested (280 ) $ 35.67 Restricted share awards forfeited (89 ) $ 35.50 Unvested restricted share awards outstanding at December 31, 2016 941 $ 37.92 |
Schedule of Restricted Stock Unit Activity | The fair value of restricted stock units is determined based on the closing market price per share of our common stock on the grant date Weighted Average Date Fair Intrinsic Shares Value Value Restricted stock units outstanding at December 31, 2015 623 $ 37.53 Restricted stock units granted 66 $ 36.02 Restricted stock units released (221 ) $ 36.32 Restricted stock units forfeited (3 ) $ 40.46 Restricted stock units outstanding at December 31, 2016 465 $ 37.87 $ 20,980 |
Schedule of Performance Stock Units Activity | The fair value of performance stock units is determined based on the closing market price per share of our common stock on the grant date. Weighted Average Date Fair Intrinsic Shares Value Value Performance stock units outstanding at December 31, 2015 135 $ 28.62 Performance stock units granted 84 $ 23.83 Performance stock units released — $ — Performance stock units forfeited (13 ) $ 29.11 Performance stock units outstanding at December 31, 2016 206 $ 26.64 $ 9,276 |
Schedule of Weighted-Average Grant Date Fair Value Per Share of Stock Options, Restricted Share Awards, Restricted Stock Units and Performance Stock Units Awarded | The table below reflects the weighted average grant date fair value per share of stock options, restricted share awards, restricted stock units and performance stock units awarded during the years ended December 31, 2016, 2015 and 2014. Year Ended December 31, 2016 2015 2014 Weighted average fair value of grants Stock options $ 8.41 $ 10.85 $ 10.77 Restricted share awards, restricted stock units and performance stock units $ 37.64 $ 39.01 $ 32.87 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Balance Sheet Details | December 31, 2016 2015 Prepaid expenses and other current assets Prepaid expenses $ 32,655 $ 30,779 Income tax receivable 14,890 15,147 Other current assets 12,707 10,040 Total $ 60,252 $ 55,966 Accounts payable, accrued expenses and other Accounts payable $ 15,779 $ 9,937 Accrued expenses 43,137 46,279 Accrued interest payable 2,265 2,585 Accrued taxes payable 9,231 17,309 Other current liabilities 16,908 13,735 Total $ 87,320 $ 89,845 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying and Estimated Fair Value of Other Financial Instruments | The following table presents the carrying amounts and estimated fair values of our other financial instruments as of December 31, 2016 and 2015. December 31, 2016 2015 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Liabilities Acquisition-related contingent consideration, including current portion (1) $ 5,692 $ 5,692 $ 4,394 $ 4,394 Long-term debt 370,000 382,750 500,000 513,500 Total $ 375,692 $ 388,442 $ 504,394 $ 517,894 (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. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property And Equipment | Property and equipment consist of the following. December 31, 2016 2015 Leasehold improvements $ 69,278 $ 83,875 Construction in progress 2,349 2,147 Furniture and equipment 35,780 38,015 Computer equipment and software 94,637 111,191 202,044 235,228 Accumulated depreciation and amortization (140,188 ) (160,468 ) Property and equipment, net $ 61,856 $ 74,760 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Forensic Finance & Litigation Economic Strategic Restructuring Consulting Consulting Technology Communications Total Balance at December 31, 2014 Goodwill $ 446,066 $ 238,173 $ 269,897 $ 117,967 $ 333,725 $ 1,405,828 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2014 446,066 238,173 269,897 117,967 139,586 1,211,689 Acquisitions (1) 70 — — — — 70 Foreign currency translation adjustment and other (4,588 ) (2,962 ) (556 ) (79 ) (5,276 ) (13,461 ) Balance at December 31, 2015 Goodwill 441,548 235,211 269,341 117,888 328,449 1,392,437 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2015 441,548 235,211 269,341 117,888 134,310 1,198,298 Acquisitions (1) — — — — 218 218 Foreign currency translation adjustment and other (882 ) (4,667 ) (1,132 ) (281 ) (11,553 ) (18,515 ) Balance at December 31, 2016 Goodwill 440,666 230,544 268,209 117,607 317,114 1,374,140 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2016 $ 440,666 $ 230,544 $ 268,209 $ 117,607 $ 122,975 $ 1,180,001 (1) Includes adjustments during the purchase price allocation period. |
Schedule of Intangible Assets by Major Class | December 31, 2016 December 31, 2015 Weighted Average Gross Net Gross Net Useful Life Carrying Accumulated Carrying Carrying Accumulated Carrying in Years Amount Amortization Amount Amount Amortization Amount Amortized intangible assets Customer relationships 13.6 $ 119,736 $ 75,212 $ 44,524 $ 128,512 $ 72,941 $ 55,571 Non-competition agreements 6.5 1,263 1,246 17 7,263 7,052 211 Acquired software 9.3 3,171 1,292 1,879 3,273 940 2,333 Trade names 3.0 360 260 100 360 140 220 124,530 78,010 46,520 139,408 81,073 58,335 Unamortized intangible assets Trade names Indefinite 5,600 — 5,600 5,600 — 5,600 Total 13.4 $ 130,130 $ 78,010 $ 52,120 $ 145,008 $ 81,073 $ 63,935 |
Notes Receivable from Employe38
Notes Receivable from Employees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Summary of Changes in Carrying Amount of Notes Receivable From Employees | The table below summarizes the changes in the carrying amount of our notes receivable from employees. December 31, 2016 2015 Notes receivable from employees ― $ 142,997 $ 149,357 Notes granted 33,943 26,827 Repayments (12,985 ) (4,622 ) Amortization expense (25,566 ) (25,977 ) Cumulative translation adjustment and other (2,001 ) (2,588 ) Notes receivable from employees ― 136,388 142,997 Less current portion (31,864 ) (36,115 ) Notes receivable from employees, net of current portion $ 104,524 $ 106,882 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Components of Debt Obligations | The table below summarizes the components of the Company’s long-term debt. December 31, 2016 2015 6% senior notes due 2022 $ 300,000 $ 300,000 Senior bank credit facility 70,000 200,000 Total debt 370,000 500,000 Less deferred debt issue costs (4,472 ) (5,228 ) Long-term debt, net (1) $ 365,528 $ 494,772 (1) There were no current portions of long-term debt as of December 31, 2016 and 2015. |
6.0% Senior Notes Due 2022 | |
Schedule Of Redemption Price Percentage | The 2022 Notes are subject to redemption at our option, in whole or in part, at any time after November 15, 2017, upon not less than 30 nor more than 60 days prior notice at the following redemption prices (expressed as percentages of the principal amount to be redeemed) set forth below plus accrued and unpaid interest, if any, to, but excluding, the redemption date . Year Redemption Price 2017 103.000 % 2018 102.000 % 2019 101.000 % 2020 and thereafter 100.000 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Payments For All Operating Lease Obligations | Operating Leases 2017 $ 48,712 2018 41,332 2019 37,541 2020 35,052 2021 33,181 Thereafter 74,674 Total $ 270,492 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Deferred Tax Assets and Liabilities | The table below summarizes significant components of deferred tax assets and liabilities. Year Ended December 31, 2016 2015 Deferred tax assets Allowance for doubtful accounts $ 17,220 $ 17,953 Accrued vacation and bonus 38,596 37,481 Deferred rent 12,034 13,415 Share-based compensation 24,783 30,037 Notes receivable from employees 21,010 20,353 State net operating loss carryforward and credits 4,169 3,883 Foreign net operating loss carryforward 12,437 6,614 Future foreign tax credit asset 2,545 3,753 Deferred compensation 3,084 2,279 Other, net 5,284 3,754 Total deferred tax assets 141,162 139,522 Deferred tax liabilities Revenue recognition (11,590 ) (12,452 ) Property, equipment and capitalized software (6,527 ) (5,739 ) Goodwill and other intangible asset amortization (273,990 ) (247,951 ) Total deferred tax liabilities (292,107 ) (266,142 ) Valuation allowance (18,900 ) (13,167 ) Net deferred tax liabilities $ (169,845 ) $ (139,787 ) |
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, 2016 2015 2014 Domestic $ 66,202 $ 59,408 $ 60,315 Foreign 61,601 45,978 41,096 Total $ 127,803 $ 105,386 $ 101,411 |
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, 2016 2015 2014 Current Federal $ (3,326 ) $ 23,957 $ 288 State 1,686 1,943 4,681 Foreign 13,864 10,029 14,042 12,224 35,929 19,011 Deferred Federal 23,182 1,546 21,657 State 8,284 1,265 2,309 Foreign (1,407 ) 593 (373 ) 30,059 3,404 23,593 Income tax provision $ 42,283 $ 39,333 $ 42,604 |
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 statutory federal income tax rate as summarized below. Year Ended December 31, 2016 2015 2014 Income tax expense at federal statutory rate $ 44,731 $ 36,885 $ 35,494 State income taxes, net of federal benefit 6,075 1,587 3,494 Benefit from lower foreign tax rates (7,827 ) (5,973 ) (4,154 ) Valuation allowance on foreign tax credits and net operating loss carryforward 254 2,326 4,604 Other expenses not deductible for tax purposes 3,082 2,719 2,962 Adjustment to reserve for uncertain tax positions (3,547 ) 658 220 Other adjustments, net (485 ) 1,131 (16 ) Income tax provision $ 42,283 $ 39,333 $ 42,604 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Revenues and Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization for Reportable Segments | The table below presents revenues and Adjusted Segment EBITDA for our reportable segments for the years ended December 31, 2016, 2015 and 2014. Year Ended December 31, 2016 2015 2014 Revenues Corporate Finance & Restructuring $ 483,269 $ 440,398 $ 391,115 Forensic and Litigation Consulting 457,734 482,269 483,380 Economic Consulting 500,487 447,909 451,040 Technology 177,720 218,599 241,310 Strategic Communications 191,184 189,974 189,367 Total revenues $ 1,810,394 $ 1,779,149 $ 1,756,212 Adjusted Segment EBITDA Corporate Finance & Restructuring $ 97,688 $ 90,101 $ 55,492 Forensic and Litigation Consulting 57,882 64,267 90,468 Economic Consulting 74,102 62,330 59,282 Technology 25,814 39,010 63,545 Strategic Communications 30,458 27,727 22,588 Total Adjusted Segment EBITDA $ 285,944 $ 283,435 $ 291,375 |
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, 2016 2015 2014 Net income $ 85,520 $ 66,053 $ 58,807 Add back: Income tax provision 42,283 39,333 42,604 Interest income and other (10,466 ) (3,232 ) (4,670 ) Interest expense 24,819 42,768 50,685 Loss on early extinguishment of debt — 19,589 — Unallocated corporate expenses 88,182 81,348 84,545 Segment depreciation expense 34,064 27,717 30,267 Amortization of intangible assets 10,306 11,726 15,521 Segment special charges 9,833 — 16,339 Remeasurement of acquisition-related contingent consideration 1,403 (1,867 ) (2,723 ) Total Adjusted Segment EBITDA $ 285,944 $ 283,435 $ 291,375 |
Schedule of Assets by Segments | The table below presents assets by segment. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and other intangible assets. December 31, 2016 2015 Corporate Finance & Restructuring $ 681,919 $ 671,605 Forensic and Litigation Consulting 400,047 437,398 Economic Consulting 496,757 498,765 Technology 189,704 200,987 Strategic Communications 214,160 239,443 Total segment assets 1,982,587 2,048,198 Unallocated corporate assets 242,781 180,820 Total assets $ 2,225,368 $ 2,229,018 |
Revenues | |
Schedule of Revenues Based on Location of Legal Entity and Information on Long-Lived Assets and Net Assets | The table below details information on our revenues for the years ended December 31, 2016, 2015 and 2014. Revenues have been attributed to location based on the location of the legal entity generating the revenues. Year Ended December 31, 2016 2015 2014 United States $ 1,298,492 $ 1,281,444 $ 1,256,046 United Kingdom 246,236 236,925 232,281 All other foreign countries 265,666 260,780 267,885 Total revenues $ 1,810,394 $ 1,779,149 $ 1,756,212 |
Long-Lived Assets and Net Assets | |
Schedule of Revenues Based on Location of Legal Entity and Information on Long-Lived Assets and Net Assets | The table below details information on our long-lived assets and net assets attributed to geographic location based on the location of the legal entity holding the assets. December 31, 2016 December 31, 2015 United States United Kingdom Al l Foreign Countries United States United Kingdom Al l Foreign Countries Property and equipment, net of accumulated depreciation $ 39,584 $ 15,312 $ 6,960 $ 47,107 $ 20,335 $ 7,318 Net assets $ 709,634 $ 193,276 $ 304,448 $ 660,396 $ 210,801 $ 276,406 |
Supplemental Condensed Consol43
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet Information | Condensed Consolidating Balance Sheet Information as of December 31, 2016 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 47,420 $ 156 $ 168,582 $ — $ 216,158 Accounts receivable, net 137,523 163,820 173,554 — 474,897 Intercompany receivables — 1,029,800 — (1,029,800 ) — Other current assets 44,708 24,944 22,464 — 92,116 Total current assets 229,651 1,218,720 364,600 (1,029,800 ) 783,171 Property and equipment, net 25,466 14,118 22,272 — 61,856 Goodwill 558,978 416,053 204,970 — 1,180,001 Other intangible assets, net 21,959 13,393 34,725 (17,957 ) 52,120 Investments in subsidiaries 2,065,819 490,634 — (2,556,453 ) — Other assets 47,308 65,398 35,514 — 148,220 Total assets $ 2,949,181 $ 2,218,316 $ 662,081 $ (3,604,210 ) $ 2,225,368 Liabilities Intercompany payables $ 1,027,050 $ — $ 2,750 $ (1,029,800 ) $ — Other current liabilities 137,710 129,810 110,935 — 378,455 Total current liabilities 1,164,760 129,810 113,685 (1,029,800 ) 378,455 Long-term debt, net 365,528 — — — 365,528 Other liabilities 211,535 16,411 46,081 — 274,027 Total liabilities 1,741,823 146,221 159,766 (1,029,800 ) 1,018,010 Stockholders' equity 1,207,358 2,072,095 502,315 (2,574,410 ) 1,207,358 Total liabilities and stockholders' equity $ 2,949,181 $ 2,218,316 $ 662,081 $ (3,604,210 ) $ 2,225,368 Condensed Consolidating Balance Sheet Information as of December 31, 2015 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 35,211 $ 165 $ 114,384 $ — $ 149,760 Accounts receivable, net 159,121 169,488 171,175 — 499,784 Intercompany receivables — 936,452 62,651 (999,103 ) — Other current assets 44,086 25,627 22,368 — 92,081 Total current assets 238,418 1,131,732 370,578 (999,103 ) 741,625 Property and equipment, net 33,699 13,409 27,652 — 74,760 Goodwill 558,978 416,053 223,267 — 1,198,298 Other intangible assets, net 25,863 15,571 43,542 (21,041 ) 63,935 Investments in subsidiaries 1,995,409 486,462 — (2,481,871 ) — Other assets 40,359 72,981 37,060 — 150,400 Total assets $ 2,892,726 $ 2,136,208 $ 702,099 $ (3,502,015 ) $ 2,229,018 Liabilities Intercompany payables $ 930,066 $ 8,921 $ 60,116 $ (999,103 ) $ — Other current liabilities 135,421 107,188 104,468 — 347,077 Total current liabilities 1,065,487 116,109 164,584 (999,103 ) 347,077 Long-term debt, net 494,772 — — — 494,772 Other liabilities 184,864 12,562 42,140 — 239,566 Total liabilities 1,745,123 128,671 206,724 (999,103 ) 1,081,415 Stockholders' equity 1,147,603 2,007,537 495,375 (2,502,912 ) 1,147,603 Total liabilities and stockholders' equity $ 2,892,726 $ 2,136,208 $ 702,099 $ (3,502,015 ) $ 2,229,018 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income for the Year Ended December 31, 2016 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Revenues $ 671,408 $ 625,950 $ 522,757 $ (9,721 ) $ 1,810,394 Operating expenses Direct cost of revenues 447,254 428,158 344,820 (9,461 ) 1,210,771 Selling, general and administrative expenses 190,546 124,019 120,247 (260 ) 434,552 Special charges 2,916 6,242 1,287 — 10,445 Acquisition-related contingent consideration 6 2,158 — — 2,164 Amortization of other intangible assets 3,903 2,179 7,308 (3,084 ) 10,306 644,625 562,756 473,662 (12,805 ) 1,668,238 Operating income 26,783 63,194 49,095 3,084 142,156 Other (expense) income (27,228 ) (2,811 ) 15,686 — (14,353 ) Income (loss) before income tax provision (445 ) 60,383 64,781 3,084 127,803 Income tax provision 1,222 27,961 13,100 — 42,283 Equity in net earnings of subsidiaries 87,187 45,412 — (132,599 ) — Net income $ 85,520 $ 77,834 $ 51,681 $ (129,515 ) $ 85,520 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (41,884 ) $ — $ (41,884 ) Other comprehensive loss, net of tax — — (41,884 ) — (41,884 ) Comprehensive income $ 85,520 $ 77,834 $ 9,797 $ (129,515 ) $ 43,636 Condensed Consolidating Statement of Comprehensive Income for the Year Ended December 31, 2015 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Revenues $ 667,259 $ 754,458 $ 504,429 $ (146,997 ) $ 1,779,149 Operating expenses Direct cost of revenues 428,356 551,829 337,856 (146,597 ) 1,171,444 Selling, general and administrative expenses 189,607 121,112 122,348 (399 ) 432,668 Acquisition-related contingent consideration (1,408 ) 208 — — (1,200 ) Amortization of other intangible assets 3,944 2,861 8,442 (3,521 ) 11,726 620,499 676,010 468,646 (150,517 ) 1,614,638 Operating income 46,760 78,448 35,783 3,520 164,511 Other (expense) income (64,554 ) (4,881 ) 10,310 — (59,125 ) Income (loss) before income tax provision (17,794 ) 73,567 46,093 3,520 105,386 Income tax (benefit) provision (6,944 ) 35,579 10,698 — 39,333 Equity in net earnings of subsidiaries 76,903 31,744 — (108,647 ) — Net income $ 66,053 $ 69,732 $ 35,395 $ (105,127 ) $ 66,053 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (28,727 ) $ — $ (28,727 ) Other comprehensive loss, net of tax — — (28,727 ) — (28,727 ) Comprehensive income $ 66,053 $ 69,732 $ 6,668 $ (105,127 ) $ 37,326 Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year Ended December 31, 2014 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Eliminations Consolidated Revenues $ 617,843 $ 1,002,571 $ 506,181 $ (370,383 ) $ 1,756,212 Operating expenses Direct cost of revenues 401,451 778,648 334,015 (369,357 ) 1,144,757 Selling, general and administrative expenses 181,529 121,085 132,257 (1,026 ) 433,845 Special charges 15,227 30 1,082 — 16,339 Acquisition-related contingent consideration (469 ) (358 ) (849 ) — (1,676 ) Amortization of other intangible assets 4,235 2,702 12,375 (3,791 ) 15,521 601,973 902,107 478,880 (374,174 ) 1,608,786 Operating income 15,870 100,464 27,301 3,791 147,426 Other (expense) income (51,511 ) (7,104 ) 12,600 — (46,015 ) Income (loss) before income tax provision (35,641 ) 93,360 39,901 3,791 101,411 Income tax (benefit) provision (14,981 ) 43,915 13,670 — 42,604 Equity in net earnings of subsidiaries 79,467 23,633 — (103,100 ) — Net income $ 58,807 $ 73,078 $ 26,231 $ (99,309 ) $ 58,807 Other comprehensive loss, net of tax: Foreign currency translation adjustments, net of tax expense of $0 $ — $ — $ (29,179 ) $ — $ (29,179 ) Other comprehensive loss, net of tax — — (29,179 ) — (29,179 ) Comprehensive income (loss) $ 58,807 $ 73,078 $ (2,948 ) $ (99,309 ) $ 29,628 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2016 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Consolidated Operating activities Net cash provided by operating activities $ 46,908 $ 123,101 $ 63,479 $ 233,488 Investing activities Payments for acquisition of businesses, net of cash received — — (1,251 ) (1,251 ) Purchases of property and equipment and other (3,576 ) (20,185 ) (5,174 ) (28,935 ) Other 54 — — 54 Net cash used in investing activities (3,522 ) (20,185 ) (6,425 ) (30,132 ) Financing activities Borrowings under revolving line of credit, net (130,000 ) — — (130,000 ) Deposits — — 4,006 4,006 Purchase and retirement of common stock (21,489 ) — — (21,489 ) Net issuance of common stock under equity compensation plans 21,708 — — 21,708 Other 1,121 (656 ) — 465 Intercompany transfers 97,483 (102,269 ) 4,786 — Net cash (used in) provided by financing activities (31,177 ) (102,925 ) 8,792 (125,310 ) Effects of exchange rate changes on cash and cash equivalents — — (11,648 ) (11,648 ) Net increase (decrease) in cash and cash equivalents 12,209 (9 ) 54,198 66,398 Cash and cash equivalents, beginning of year 35,211 165 114,384 149,760 Cash and cash equivalents, end of year $ 47,420 $ 156 $ 168,582 $ 216,158 Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2015 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Consolidated Operating activities Net cash provided by operating activities $ 14,815 $ 83,516 $ 41,589 $ 139,920 Investing activities Payments for acquisition of businesses, net of cash received — — (575 ) (575 ) Purchases of property and equipment and other (9,192 ) (16,487 ) (5,720 ) (31,399 ) Other 79 — 158 237 Net cash used in investing activities (9,113 ) (16,487 ) (6,137 ) (31,737 ) Financing activities Borrowings under revolving line of credit, net 200,000 — — 200,000 Payments of long-term debt (425,671 ) — — (425,671 ) Payments of debt financing fees (3,843 ) — — (3,843 ) Deposits — — 3,227 3,227 Purchase and retirement of common stock (26,532 ) — — (26,532 ) Net issuance of common stock under equity compensation plans 16,666 — — 16,666 Other 485 (294 ) — 191 Intercompany transfers 97,314 (66,729 ) (30,585 ) — Net cash used in financing activities (141,581 ) (67,023 ) (27,358 ) (235,962 ) Effects of exchange rate changes on cash and cash equivalents — — (6,141 ) (6,141 ) Net increase (decrease) in cash and cash equivalents (135,879 ) 6 1,953 (133,920 ) Cash and cash equivalents, beginning of year 171,090 159 112,431 283,680 Cash and cash equivalents, end of year $ 35,211 $ 165 $ 114,384 $ 149,760 Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2014 FTI Guarantor Non-Guarantor Consulting Subsidiaries Subsidiaries Consolidated Operating activities Net cash (used in) provided by operating activities $ (36,921 ) $ 142,540 $ 29,782 $ 135,401 Investing activities Payments for acquisition of businesses, net of cash received (14,729 ) (7,783 ) (955 ) (23,467 ) Purchases of property and equipment and other (12,738 ) (13,080 ) (13,438 ) (39,256 ) Other 139 — 4,989 5,128 Net cash used in investing activities (27,328 ) (20,863 ) (9,404 ) (57,595 ) Financing activities Payments of long-term debt and capital lease obligations — (6,000 ) (14 ) (6,014 ) Deposits — — 13,071 13,071 Purchase and retirement of common stock (4,367 ) — — (4,367 ) Net issuance of common stock under equity compensation plans 4,772 — — 4,772 Other 366 (555 ) (943 ) (1,132 ) Intercompany transfers 122,625 (115,457 ) (7,168 ) — Net cash provided by (used in) financing activities 123,396 (122,012 ) 4,946 6,330 Effects of exchange rate changes on cash and cash equivalents — — (6,289 ) (6,289 ) Net increase (decrease) in cash and cash equivalents 59,147 (335 ) 19,035 77,847 Cash and cash equivalents, beginning of year 111,943 494 93,396 205,833 Cash and cash equivalents, end of year $ 171,090 $ 159 $ 112,431 $ 283,680 |
Quarterly Financial Data (una44
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Data | Quarter Ended March 31 June 30 September 30 December 31 2016 Revenues $ 470,285 $ 460,147 $ 438,042 $ 441,920 Operating expenses Direct cost of revenues 305,636 303,194 293,702 308,239 Selling, general and administrative expenses 103,609 108,245 106,220 116,478 Special charges 5,061 1,750 — 3,634 Acquisition-related contingent consideration 1,134 206 201 623 Amortization of other intangible assets 2,606 2,590 2,845 2,265 418,046 415,985 402,968 431,239 Operating income 52,239 44,162 35,074 10,681 Interest income and other 2,557 4,125 3,213 571 Interest expense (6,229 ) (6,303 ) (6,304 ) (5,983 ) Income before income tax provision 48,567 41,984 31,983 5,269 Income tax provision 18,386 15,437 10,292 (1,832 ) Net income $ 30,181 $ 26,547 $ 21,691 $ 7,101 Earnings per common share — basic $ 0.75 $ 0.65 $ 0.53 $ 0.17 Earnings per common share — diluted $ 0.73 $ 0.64 $ 0.52 $ 0.17 Weighted average common shares outstanding Basic 40,506 40,820 41,239 41,201 Diluted 41,148 41,599 42,065 42,018 Quarter Ended March 31 June 30 September 30 December 31 2015 Revenues $ 432,338 $ 449,137 $ 455,470 $ 442,204 Operating expenses Direct cost of revenues 279,030 291,469 301,609 299,336 Selling, general and administrative expenses 102,214 109,045 105,058 116,351 Acquisition-related contingent consideration 234 (1,538 ) 159 (55 ) Amortization of other intangible assets 3,012 3,007 2,900 2,807 384,490 401,983 409,726 418,439 Operating income 47,848 47,154 45,744 23,765 Interest income and other (137 ) 950 2,027 392 Interest expense (12,368 ) (12,473 ) (11,696 ) (6,231 ) Loss on early extinguishment of debt — — (19,589 ) — Income before income tax provision 35,343 35,631 16,486 17,926 Income tax provision 11,657 13,922 6,177 7,577 Net income $ 23,686 $ 21,709 $ 10,309 $ 10,349 Earnings per common share — basic $ 0.59 $ 0.53 $ 0.25 $ 0.25 Earnings per common share — diluted $ 0.57 $ 0.52 $ 0.25 $ 0.25 Weighted average common shares outstanding Basic 40,384 40,792 41,094 41,078 Diluted 41,324 41,696 41,982 41,879 |
Description of Business and S45
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Number of reportable business segments | Segment | 5 | ||
Research and development costs related to software development | $ 17,500 | $ 19,500 | $ 19,300 |
Advertising costs | 15,900 | 18,200 | 20,700 |
Provision for doubtful accounts | $ 8,912 | 15,564 | 18,252 |
Forgivable loans, forgiveness period, minimum | 1 year | ||
Forgivable loans, forgiveness period, maximum | 10 years | ||
Definite-lived intangible assets amortization period | 13 years 4 months 24 days | ||
Unamortized capitalized software cost | $ 16,600 | 17,600 | |
Amortization of capitalized software cost | 12,000 | 6,500 | $ 6,700 |
Deferred rent | $ 41,900 | $ 44,900 | |
Minimum | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Definite-lived intangible assets amortization period | 1 year | ||
Maximum | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Definite-lived intangible assets amortization period | 15 years | ||
Lease provisions for renewal options (In years) | 5 years | ||
Furniture, Equipment, And Internal-Use Software | Minimum | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful of furniture, equipment and internal use software (in years) | 3 years | ||
Furniture, Equipment, And Internal-Use Software | Maximum | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful of furniture, equipment and internal use software (in years) | 7 years | ||
Software and Software Development Costs | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful of furniture, equipment and internal use software (in years) | 3 years | ||
Geographic Concentration Risk | Consolidated Revenues | Non U.S | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Revenue from the work of professionals | 28.00% |
New Accounting Standards - Addi
New Accounting Standards - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
ASU 2016-09 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Increase in provision for income taxes | $ 2.1 | $ 2 | $ 1.5 |
Earnings Per Common Share Basic
Earnings Per Common Share Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator — basic and diluted | |||||||||||
Net income | $ 7,101 | $ 21,691 | $ 26,547 | $ 30,181 | $ 10,349 | $ 10,309 | $ 21,709 | $ 23,686 | $ 85,520 | $ 66,053 | $ 58,807 |
Denominator | |||||||||||
Weighted average number of common shares outstanding — basic | 41,201 | 41,239 | 40,820 | 40,506 | 41,078 | 41,094 | 40,792 | 40,384 | 40,943 | 40,846 | 39,726 |
Effect of dilutive stock options | 281 | 388 | 375 | ||||||||
Effect of dilutive restricted shares | 485 | 495 | 628 | ||||||||
Weighted average number of common shares outstanding — diluted | 42,018 | 42,065 | 41,599 | 41,148 | 41,879 | 41,982 | 41,696 | 41,324 | 41,709 | 41,729 | 40,729 |
Earnings per common share — basic | $ 0.17 | $ 0.53 | $ 0.65 | $ 0.75 | $ 0.25 | $ 0.25 | $ 0.53 | $ 0.59 | $ 2.09 | $ 1.62 | $ 1.48 |
Earnings per common share — diluted | $ 0.17 | $ 0.52 | $ 0.64 | $ 0.73 | $ 0.25 | $ 0.25 | $ 0.52 | $ 0.57 | $ 2.05 | $ 1.58 | $ 1.44 |
Stock Options And Restricted Shares | |||||||||||
Denominator | |||||||||||
Anti-dilutive securities excluded from computation of earnings per share | 1,404 | 1,734 | 2,967 |
Special Charges - Additional In
Special Charges - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income And Expenses [Abstract] | ||||||
Special charges | $ 3,634 | $ 1,750 | $ 5,061 | $ 10,445 | $ 0 | $ 16,339 |
Special Charges By Segment (Det
Special Charges By Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Special Charges [Line Items] | ||||||
Special charges | $ 3,634 | $ 1,750 | $ 5,061 | $ 10,445 | $ 0 | $ 16,339 |
Operating Segments | ||||||
Special Charges [Line Items] | ||||||
Special charges | 9,833 | 426 | ||||
Operating Segments | Corporate Finance & Restructuring | ||||||
Special Charges [Line Items] | ||||||
Special charges | 84 | |||||
Operating Segments | Forensic and Litigation Consulting | ||||||
Special Charges [Line Items] | ||||||
Special charges | 2,304 | 308 | ||||
Operating Segments | Economic Consulting | ||||||
Special Charges [Line Items] | ||||||
Special charges | 12 | |||||
Operating Segments | Technology | ||||||
Special Charges [Line Items] | ||||||
Special charges | 7,529 | 19 | ||||
Operating Segments | Strategic Communications | ||||||
Special Charges [Line Items] | ||||||
Special charges | 3 | |||||
Unallocated Corporate | ||||||
Special Charges [Line Items] | ||||||
Special charges | $ 612 | $ 15,913 |
Summary of Activity Related to
Summary of Activity Related to Liability for Special Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | ||||
Special Charges [Line Items] | |||||
Beginning Balance | $ 11,813 | $ 18,613 | |||
Additions | [1] | 10,724 | |||
Payments | (11,160) | (7,038) | |||
Foreign currency translation adjustment and other | 183 | 238 | [2] | ||
Ending Balance | 11,560 | [3] | 11,813 | ||
Employee Termination Costs | |||||
Special Charges [Line Items] | |||||
Beginning Balance | 7,768 | 13,759 | |||
Additions | [1] | 10,724 | |||
Payments | (10,264) | (5,826) | |||
Foreign currency translation adjustment and other | (3) | (165) | [2] | ||
Ending Balance | 8,225 | [3] | 7,768 | ||
Lease Termination Costs | |||||
Special Charges [Line Items] | |||||
Beginning Balance | 4,045 | 4,854 | |||
Payments | (896) | (1,212) | |||
Foreign currency translation adjustment and other | 186 | 403 | [2] | ||
Ending Balance | $ 3,335 | [3] | $ 4,045 | ||
[1] | Excludes $0.3 million in net non-cash expense reversals. | ||||
[2] | A fair value adjustment of $0.2 million and $0.4 million related to expected sublease income was recorded to “Selling, general and administrative expenses” within operating income in our Consolidated Statements of Comprehensive Income during the years ended December 31, 2016 and 2015, respectively. | ||||
[3] | Of the $11.6 million remaining liability for special charges, $6.1 million is expected to be paid in 2017, $2.6 million is expected to be paid in 2018, $1.2 million is expected to be paid in 2019, $0.4 million is expected to be paid in 2020 and the remaining balance of $1.3 million is expected to be paid from 2021 to 2025 |
Summary of Activity Related t51
Summary of Activity Related to Liability for Special Charges (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Special Charges [Line Items] | ||||
Net non-cash expense reversals | $ 300 | |||
Special charges remaining liability | 11,560 | [1] | $ 11,813 | $ 18,613 |
Total expected payments to special charges, amount expected to be paid in 2017 | 6,100 | |||
Total expected payments to special charges, amount expected to be paid in 2018 | 2,600 | |||
Total expected payments to special charges, amount expected to be paid in 2019 | 1,200 | |||
Total expected payments to special charges, amount expected to be paid in 2020 | 400 | |||
Total expected payments to special charges, amount expected to be paid from 2021 to 2025 | 1,300 | |||
Selling, General and Administrative Expenses | ||||
Special Charges [Line Items] | ||||
Expected sublease income | $ 200 | $ 400 | ||
[1] | Of the $11.6 million remaining liability for special charges, $6.1 million is expected to be paid in 2017, $2.6 million is expected to be paid in 2018, $1.2 million is expected to be paid in 2019, $0.4 million is expected to be paid in 2020 and the remaining balance of $1.3 million is expected to be paid from 2021 to 2025 |
Interest Income and Other (Deta
Interest Income and Other (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||||||||||
Interest income | $ 4,420 | $ 4,996 | $ 5,853 | ||||||||
Foreign exchange transaction gains (losses), net | 4,937 | (940) | (2,830) | ||||||||
Other | 1,109 | (824) | 1,647 | ||||||||
Total | $ 571 | $ 3,213 | $ 4,125 | $ 2,557 | $ 392 | $ 2,027 | $ 950 | $ (137) | $ 10,466 | $ 3,232 | $ 4,670 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from option exercises | $ 27,300,000 | $ 21,100,000 | $ 11,300,000 |
Tax benefit realized from stock options exercised | 4,800,000 | 5,500,000 | 1,900,000 |
Intrinsic value of options exercised | 6,900,000 | 8,100,000 | 4,400,000 |
Released intrinsic value | $ 9,300,000 | 3,100,000 | 1,700,000 |
2009 Omnibus Incentive Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized shares of common stock | 7,450,000 | ||
Common stock available for grant | 1,287,549 | ||
Restricted Or Unrestricted Shares Or Other Stock-Based Awards | 2009 Omnibus Incentive Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized shares of common stock | 5,400,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 3,800,000 | ||
Expected to be recognized, weighted average period (in years) | 1 year 7 months 6 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 21,400,000 | ||
Expected to be recognized, weighted average period (in years) | 4 years 8 months 12 days | ||
Fair value, vested | $ 10,400,000 | 14,600,000 | 20,500,000 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 700,000 | ||
Expected to be recognized, weighted average period (in years) | 1 year 4 months 24 days | ||
Fair value, vested | $ 2,400,000 | $ 4,400,000 | 2,700,000 |
Employees awards, granted | 66,000 | ||
Employees awards, outstanding | 465,000 | 623,000 | |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1,300,000 | ||
Expected to be recognized, weighted average period (in years) | 1 year | ||
Fair value, vested | $ 0 | $ 0 | $ 0 |
Employees awards, granted | 84,000 | ||
Employees awards, outstanding | 206,000 | 135,000 | |
Cash-settled Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employees awards, outstanding | 13,678 | ||
Cash-settled Restricted Stock Units | Employees In Foreign Country | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employees awards, granted | 5,162 | ||
Cash-settled stock appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employees awards, granted | 0 | ||
Employees awards, outstanding | 85,275 | ||
Cash-settled performance units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employees awards, granted | 0 | ||
Employees awards, outstanding | 49,472 |
Schedule of Share-based Compens
Schedule of Share-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | [1] | $ 3,837 | $ 5,218 | $ 7,061 |
Stock Options | Direct Cost Of Revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | [1] | 2,815 | 3,736 | 5,404 |
Stock Options | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | [1] | 966 | 1,482 | 1,783 |
Stock Options | Special Charges | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | [1],[2] | 56 | (126) | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | [3] | 16,696 | 14,001 | 16,469 |
Restricted Stock | Direct Cost Of Revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | [3] | 7,530 | 6,532 | 8,951 |
Restricted Stock | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | [3] | 9,117 | $ 7,469 | 8,508 |
Restricted Stock | Special Charges | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | [2],[3] | $ 49 | $ (990) | |
[1] | Includes options and cash-settled stock appreciation rights. | |||
[2] | Expense acceleration of $0.2 million related to restricted shares and $0.1 million related to options were netted with expense reversal resulting from forfeitures of $1.2 million and $0.2 million, respectively, for the year ended December 31, 2014. There were no forfeitures related to special charges for the year ended December 31, 2016. (See Note 4, “Special Charges” for information related to the special charges). | |||
[3] | Includes restricted share awards, performance and market condition restricted stock units, and cash-settled restricted stock units. |
Schedule of Share-based Compe55
Schedule of Share-based Compensation Expense (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Special charges | $ 3,634,000 | $ 1,750,000 | $ 5,061,000 | $ 10,445,000 | $ 0 | $ 16,339,000 |
Restricted shares expense acceleration | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Special charges | 200,000 | |||||
Share based awards, value of shares forfeited | 0 | 1,200,000 | ||||
Option expense acceleration | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Special charges | 100,000 | |||||
Options, value of shares forfeited | $ 0 | $ 200,000 |
Stock Option and Grants Using V
Stock Option and Grants Using Valuation Assumptions (Detail) - Stock Options | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.98% | ||
Risk-free interest rate, minimum | 1.07% | 0.99% | |
Risk-free interest rate, maximum | 1.70% | 1.94% | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected term,(Years) | 3 years | ||
Stock price volatility | 34.33% | ||
Stock price volatility, minimum | 31.03% | 31.05% | |
Stock price volatility, maximum | 40.36% | 37.60% | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term,(Years) | 3 years | 3 years | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term,(Years) | 5 years | 6 years |
Stock Option Activity (Detail)
Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock options outstanding at December 31, 2015, Shares | shares | 3,349 |
Stock options granted, Shares | shares | 119 |
Stock options exercised, Shares | shares | (816) |
Stock options forfeited, Shares | shares | (234) |
Stock options outstanding at December 31, 2016, Shares | shares | 2,418 |
Stock options exercisable at December 31, 2016, Shares | shares | 1,593 |
Stock options outstanding at December 31, 2015, Weighted Average Exercise Price | $ / shares | $ 39.01 |
Stock options granted, Weighted Average Exercise Price | $ / shares | 34.33 |
Stock options exercised, Weighted Average Exercise Price | $ / shares | 33.30 |
Stock options forfeited, Weighted Average Exercise Price | $ / shares | 38.17 |
Stock options outstanding at December 31, 2016, Weighted Average Exercise Price | $ / shares | 40.79 |
Stock options exercisable at December 31, 2016, Weighted Average Exercise Price | $ / shares | $ 43.95 |
Stock options outstanding at December 31, 2016, Weighted Average Remaining Contractual Term (in Years) | 4 years 9 months 18 days |
Stock options exercisable at December 31, 2016, Weighted Average Remaining Contractual Term (in Years) | 3 years 9 months 18 days |
Stock options outstanding at December 31, 2016, Aggregate Intrinsic Value | $ | $ 16,876 |
Stock options exercisable at December 31, 2016, Aggregate Intrinsic Value | $ | $ 8,290 |
Stock Options Outstanding and E
Stock Options Outstanding and Exercisable Price Range Status (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Shares | shares | 2,418,000 |
Options Exercisable, Shares | shares | 1,593,000 |
$26.68 - $33.95 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum | $ 26.68 |
Exercise Price Range, maximum | $ 33.95 |
Options Outstanding, Shares | shares | 544,000 |
Options Outstanding, Weighted Average Exercise Price | $ 31.51 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 6 years 2 months 12 days |
Options Exercisable, Shares | shares | 216,000 |
Options Exercisable, Weighted Average Exercise Price | $ 32.03 |
$34.33 - $36.87 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum | 34.33 |
Exercise Price Range, maximum | $ 36.87 |
Options Outstanding, Shares | shares | 556,000 |
Options Outstanding, Weighted Average Exercise Price | $ 35.66 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 6 years 10 months 24 days |
Options Exercisable, Shares | shares | 246,000 |
Options Exercisable, Weighted Average Exercise Price | $ 35.95 |
$36.89 - $39.54 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum | 36.89 |
Exercise Price Range, maximum | $ 39.54 |
Options Outstanding, Shares | shares | 484,000 |
Options Outstanding, Weighted Average Exercise Price | $ 38.01 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 4 years 4 months 24 days |
Options Exercisable, Shares | shares | 376,000 |
Options Exercisable, Weighted Average Exercise Price | $ 38.14 |
$39.84 - $54.30 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum | 39.84 |
Exercise Price Range, maximum | $ 54.30 |
Options Outstanding, Shares | shares | 486,000 |
Options Outstanding, Weighted Average Exercise Price | $ 45.13 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 3 years 7 months 6 days |
Options Exercisable, Shares | shares | 407,000 |
Options Exercisable, Weighted Average Exercise Price | $ 45.67 |
$55.63 - $70.55 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price Range, minimum | 55.63 |
Exercise Price Range, maximum | $ 70.55 |
Options Outstanding, Shares | shares | 348,000 |
Options Outstanding, Weighted Average Exercise Price | $ 61.28 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 1 year 7 months 6 days |
Options Exercisable, Shares | shares | 348,000 |
Options Exercisable, Weighted Average Exercise Price | $ 61.28 |
Unvested Restricted Share Activ
Unvested Restricted Share Activity (Detail) - Restricted Share Award shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at December 31, 2015, Shares | shares | 783 |
Restricted share awards granted, Shares | shares | 527 |
Restricted share awards vested, Shares | shares | (280) |
Restricted share awards forfeited, Shares | shares | (89) |
Outstanding at December 31, 2016, Shares | shares | 941 |
Outstanding at December 31, 2015, Weighted Average Grant Date Fair Value | $ / shares | $ 36.55 |
Restricted share awards granted, Weighted Average Grant Date Fair Value | $ / shares | 38.37 |
Restricted share awards vested, Weighted Average Grant Date Fair Value | $ / shares | 35.67 |
Restricted share awards forfeited, Weighted Average Grant Date Fair Value | $ / shares | 35.50 |
Outstanding at December 31, 2016, Weighted Average Grant Date Fair Value | $ / shares | $ 37.92 |
Restricted Stock Unit Activity
Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at December 31, 2015, Shares | shares | 623 |
Restricted Stock Units granted, Shares | shares | 66 |
Restricted Stock Units released, Shares | shares | (221) |
Restricted Stock Units forfeited, Shares | shares | (3) |
Outstanding at December 31, 2016, Shares | shares | 465 |
Restricted Stock Units outstanding at December 31, 2016, Intrinsic Value | $ | $ 20,980 |
Outstanding at December 31, 2015, Weighted Average Grant Date Fair Value | $ / shares | $ 37.53 |
Restricted Stock Units granted, Weighted Average Grant Date Fair Value | $ / shares | 36.02 |
Restricted Stock Units released, Weighted Average Grant Date Fair Value | $ / shares | 36.32 |
Restricted Stock Units forfeited, Weighted Average Grant Date Fair Value | $ / shares | 40.46 |
Outstanding at December 31, 2016, Weighted Average Grant Date Fair Value | $ / shares | $ 37.87 |
Schedule of Performance Stock U
Schedule of Performance Stock Units Activity (Detail) - Performance Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at December 31, 2015, Shares | shares | 135 |
Performance stock units granted, Shares | shares | 84 |
Restricted Stock Units forfeited, Shares | shares | (13) |
Outstanding at December 31, 2016, Shares | shares | 206 |
Performance stock units outstanding, at December 31,2016, Intrinsic Value | $ | $ 9,276 |
Outstanding at December 31, 2015, Weighted Average Grant Date Fair Value | $ / shares | $ 28.62 |
Performance stock units granted, Weighted Average Grant Date Fair Value | $ / shares | 23.83 |
Performance stock units forfeited, Weighted Average Grant Date Fair Value | $ / shares | 29.11 |
Outstanding at December 31, 2016, Weighted Average Grant Date Fair Value | $ / shares | $ 26.64 |
Weighted-Average Grant Date Fai
Weighted-Average Grant Date Fair Value Per Share of Stock Options, Restricted Share Awards, Restricted Stock Units and Performance Stock Units Awarded (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of grants. Stock options | $ 8.41 | $ 10.85 | $ 10.77 |
Restricted Share Awards, Restricted Stock Units and Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of grants, Restricted share awards, restricted stock units and performance stock units | $ 37.64 | $ 39.01 | $ 32.87 |
Balance Sheet Details (Detail)
Balance Sheet Details (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Information Of Subsidiaries Disclosure [Abstract] | ||
Prepaid expenses | $ 32,655 | $ 30,779 |
Income tax receivable | 14,890 | 15,147 |
Other current assets | 12,707 | 10,040 |
Total | 60,252 | 55,966 |
Accounts payable | 15,779 | 9,937 |
Accrued expenses | 43,137 | 46,279 |
Accrued interest payable | 2,265 | 2,585 |
Accrued taxes payable | 9,231 | 17,309 |
Other current liabilities | 16,908 | 13,735 |
Total | $ 87,320 | $ 89,845 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets Sold Under Agreements To Repurchase [Line Items] | |||
Gain/Loss on remeasurement of contingent consideration | $ 1.4 | $ 1.9 | $ 2.7 |
Accretion expenses for acquisition-related contingent consideration | $ 0.8 | $ 0.7 | $ 1 |
6.0% Senior Notes Due 2022 | |||
Assets Sold Under Agreements To Repurchase [Line Items] | |||
Interest percentage | 6.00% | 6.00% | |
Debt maturity period | 2,022 | 2,022 |
Carrying And Estimated Fair Val
Carrying And Estimated Fair Value Of Other Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||
Acquisition-related contingent consideration, including current portion, Carrying Amount | [1] | $ 5,692 | $ 4,394 |
Long-term debt, Carrying Amount | 370,000 | 500,000 | |
Total, Carrying Amount | 375,692 | 504,394 | |
Acquisition-related contingent consideration, including current portion, Estimated Fair Value | [1] | 5,692 | 4,394 |
Long-term debt, Estimated Fair Value | 382,750 | 513,500 | |
Total, Estimated Fair Value | $ 388,442 | $ 517,894 | |
[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. |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Abstract] | ||
Leasehold improvements | $ 69,278 | $ 83,875 |
Construction in progress | 2,349 | 2,147 |
Furniture and equipment | 35,780 | 38,015 |
Computer equipment and software | 94,637 | 111,191 |
Property, Plant and Equipment, Gross, Total | 202,044 | 235,228 |
Accumulated depreciation and amortization | (140,188) | (160,468) |
Property and equipment, net | $ 61,856 | $ 74,760 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense for property and equipment | $ 26.7 | $ 24.9 | $ 28.5 |
Summary of Changes in Carrying
Summary of Changes in Carrying Amounts of Goodwill by Operating Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Goodwill [Line Items] | ||||
Goodwill, Gross | $ 1,374,140 | $ 1,392,437 | $ 1,405,828 | |
Accumulated goodwill impairment | (194,139) | (194,139) | (194,139) | |
Goodwill, net | 1,180,001 | 1,198,298 | 1,211,689 | |
Acquisitions | [1] | 218 | 70 | |
Foreign currency translation adjustment and other | (18,515) | (13,461) | ||
Corporate Finance & Restructuring | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 440,666 | 441,548 | 446,066 | |
Goodwill, net | 440,666 | 441,548 | 446,066 | |
Acquisitions | [1] | 70 | ||
Foreign currency translation adjustment and other | (882) | (4,588) | ||
Forensic and Litigation Consulting | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 230,544 | 235,211 | 238,173 | |
Goodwill, net | 230,544 | 235,211 | 238,173 | |
Foreign currency translation adjustment and other | (4,667) | (2,962) | ||
Economic Consulting | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 268,209 | 269,341 | 269,897 | |
Goodwill, net | 268,209 | 269,341 | 269,897 | |
Foreign currency translation adjustment and other | (1,132) | (556) | ||
Technology | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 117,607 | 117,888 | 117,967 | |
Goodwill, net | 117,607 | 117,888 | 117,967 | |
Foreign currency translation adjustment and other | (281) | (79) | ||
Strategic Communications | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 317,114 | 328,449 | 333,725 | |
Accumulated goodwill impairment | (194,139) | (194,139) | (194,139) | |
Goodwill, net | 122,975 | 134,310 | $ 139,586 | |
Acquisitions | [1] | 218 | ||
Foreign currency translation adjustment and other | $ (11,553) | $ (5,276) | ||
[1] | Includes adjustments during the purchase price allocation period. |
Goodwill and Other Intangible69
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||
Amortization of other intangible assets | $ 2,265 | $ 2,845 | $ 2,590 | $ 2,606 | $ 2,807 | $ 2,900 | $ 3,007 | $ 3,012 | $ 10,306 | $ 11,726 | $ 15,521 |
Estimated amortization expense for the year 2017 | 9,400 | 9,400 | |||||||||
Estimated amortization expense for the year 2018 | 7,900 | 7,900 | |||||||||
Estimated amortization expense for the year 2019 | 7,300 | 7,300 | |||||||||
Estimated amortization expense for the year 2020 | 7,100 | 7,100 | |||||||||
Estimated amortization expense for the year 2021 | 6,500 | 6,500 | |||||||||
Estimated amortization expense after the year 2021 | $ 8,300 | $ 8,300 |
Intangible Assets by Major Clas
Intangible Assets by Major Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets [Line Items] | ||
Finite lived intangible assets, Weighted Average Useful Life in Years | 13 years 4 months 24 days | |
Finite lived intangible assets, Gross Carrying Amount | $ 124,530 | $ 139,408 |
Intangible assets, Accumulated Amortization | 78,010 | 81,073 |
Finite lived intangible assets, Net Carrying Amount | 46,520 | 58,335 |
Intangible assets, Gross Carrying Amount | 130,130 | 145,008 |
Intangible assets, Net Carrying Amount | $ 52,120 | 63,935 |
Customer Relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Finite lived intangible assets, Weighted Average Useful Life in Years | 13 years 7 months 6 days | |
Finite lived intangible assets, Gross Carrying Amount | $ 119,736 | 128,512 |
Intangible assets, Accumulated Amortization | 75,212 | 72,941 |
Finite lived intangible assets, Net Carrying Amount | $ 44,524 | 55,571 |
Non-Competition agreements | ||
Goodwill And Intangible Assets [Line Items] | ||
Finite lived intangible assets, Weighted Average Useful Life in Years | 6 years 6 months | |
Finite lived intangible assets, Gross Carrying Amount | $ 1,263 | 7,263 |
Intangible assets, Accumulated Amortization | 1,246 | 7,052 |
Finite lived intangible assets, Net Carrying Amount | $ 17 | 211 |
Computer Software, Intangible Asset | ||
Goodwill And Intangible Assets [Line Items] | ||
Finite lived intangible assets, Weighted Average Useful Life in Years | 9 years 3 months 18 days | |
Finite lived intangible assets, Gross Carrying Amount | $ 3,171 | 3,273 |
Intangible assets, Accumulated Amortization | 1,292 | 940 |
Finite lived intangible assets, Net Carrying Amount | $ 1,879 | 2,333 |
Trade Names | ||
Goodwill And Intangible Assets [Line Items] | ||
Finite lived intangible assets, Weighted Average Useful Life in Years | 3 years | |
Finite lived intangible assets, Gross Carrying Amount | $ 360 | 360 |
Intangible assets, Accumulated Amortization | 260 | 140 |
Finite lived intangible assets, Net Carrying Amount | $ 100 | 220 |
Indefinite-lived intangible assets, Useful Life | Indefinite | |
Indefinite-lived intangible assets, Gross Carrying Amount | $ 5,600 | $ 5,600 |
Summary of Changes in Carryin71
Summary of Changes in Carrying Amount of Notes Receivable From Employees (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | ||
Notes receivable from employees ― beginning | $ 142,997 | $ 149,357 |
Notes granted | 33,943 | 26,827 |
Repayments | (12,985) | (4,622) |
Amortization expense | (25,566) | (25,977) |
Cumulative translation adjustment and other | (2,001) | (2,588) |
Notes receivable from employees ― ending | 136,388 | 142,997 |
Less current portion | (31,864) | (36,115) |
Notes receivable, net of current portion | $ 104,524 | $ 106,882 |
Notes Receivable from Employe72
Notes Receivable from Employees - Additional information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)Note | Dec. 31, 2015USD ($)Note | Dec. 31, 2014USD ($) | |
Receivables [Abstract] | |||
Notes outstanding | Note | 307 | 285 | |
Amortization of forgivable loan expense | $ | $ 25.6 | $ 26 | $ 32.1 |
Summary of Components of Long-T
Summary of Components of Long-Term Debt Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Total debt | $ 370,000 | $ 500,000 | ||
Less deferred debt issue costs | (4,472) | (5,228) | ||
Long-term debt, net | [1] | 365,528 | 494,772 | |
Senior Bank Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility | 70,000 | 200,000 | ||
Less deferred debt issue costs | (4,300) | (5,500) | $ (2,800) | |
6.0% Senior Notes Due 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 300,000 | $ 300,000 | ||
[1] | There were no current portions of long-term debt as of December 31, 2016 and 2015. |
Summary of Components of Long74
Summary of Components of Long-Term Debt Obligations (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Long-term debt, current portion | $ 0 | $ 0 |
6.0% Senior Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Interest percentage | 6.00% | 6.00% |
Debt maturity period | 2,022 | 2,022 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Sep. 23, 2015 | Aug. 28, 2015 | Aug. 14, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||||
Loss on early extinguishment of debt | $ (19,589,000) | $ (19,589,000) | |||||
Debt issue costs included in other assets | $ 4,472,000 | 5,228,000 | |||||
Former Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Senior secured revolving line of credit | 350,000,000 | ||||||
2015 Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Senior secured revolving line of credit | $ 550,000,000 | ||||||
Line of credit, maturity date | Sep. 26, 2020 | ||||||
Senior Bank Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing interest rate description | The applicable margin will fluctuate between 1.375% per annum and 2.00% per annum, in the case of LIBOR borrowings, or between 0.375% per annum and 1.00% per annum, in the case of base rate borrowings, in each case, based upon the Company’s Consolidated Total Leverage Ratio (as defined in the 2015 Credit Agreement) at such time. | ||||||
Senior secured revolving line of credit | $ 100,000,000 | ||||||
Leverage ratio | 350.00% | ||||||
Credit facility | $ 70,000,000 | 200,000,000 | |||||
Letters of Credit Outstanding, Amount | 700,000 | ||||||
Debt issue costs included in other assets | $ 4,300,000 | $ 5,500,000 | $ 2,800,000 | ||||
Minimum | Senior Bank Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, commitment fees on unused borrowing capacity | 0.25% | ||||||
Line of credit, fronting fees | 1.375% | ||||||
Minimum | Senior Bank Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Revolving Credit Facility, percentage points added to the reference rate | 1.375% | ||||||
Minimum | Senior Bank Credit Facility | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Revolving Credit Facility, percentage points added to the reference rate | 0.375% | ||||||
Maximum | Senior Bank Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, commitment fees on unused borrowing capacity | 0.35% | ||||||
Line of credit, fronting fees | 2.00% | ||||||
Maximum | Senior Bank Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Revolving Credit Facility, percentage points added to the reference rate | 2.00% | ||||||
Maximum | Senior Bank Credit Facility | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Revolving Credit Facility, percentage points added to the reference rate | 1.00% | ||||||
6.0% Senior Notes Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Interest percentage | 6.00% | 6.00% | |||||
Debt maturity period | 2,022 | 2,022 | |||||
Debt redemption period start date | Nov. 15, 2022 | ||||||
Redemption price percentage | 100.00% | ||||||
Debt issue costs | $ 7,600,000 | ||||||
6.0% Senior Notes Due 2022 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Number of days prior notice required for redemption of notes | 30 days | ||||||
6.0% Senior Notes Due 2022 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Number of days prior notice required for redemption of notes | 60 days | ||||||
6 3/4 % Senior Notes Due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Interest percentage | 6.75% | ||||||
Debt maturity period | 2,020 | ||||||
Debt redemption period start date | Sep. 1, 2015 | ||||||
Debt redemption price for each $1000 principal amount | $ 1,037.88 | ||||||
Debt aggregate principal amount | $ 1,000 | ||||||
Debt maturity date | Aug. 27, 2015 | ||||||
Repayment of debt | $ 192,900,000 | ||||||
Debt redemption amount | $ 207,100,000 | ||||||
Debt redemption period end date | Oct. 1, 2015 | ||||||
Loss on early extinguishment of debt | $ (19,600,000) | ||||||
Write-off of unamortized deferred financing costs | 4,900,000 | ||||||
Redemption premium | $ 14,300,000 | ||||||
6 3/4 % Senior Notes Due 2020 Tender Offer | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price for each $1000 principal amount | $ 1,033.75 | ||||||
Debt aggregate principal amount | $ 1,000 |
Redemption Price Percentage (De
Redemption Price Percentage (Detail) - 6.0% Senior Notes Due 2022 | 12 Months Ended |
Dec. 31, 2016 | |
2,017 | |
Long Term Debt And Capital Lease Obligations [Line Items] | |
Redemption price percentage | 103.00% |
2,018 | |
Long Term Debt And Capital Lease Obligations [Line Items] | |
Redemption price percentage | 102.00% |
2,019 | |
Long Term Debt And Capital Lease Obligations [Line Items] | |
Redemption price percentage | 101.00% |
2020 And Thereafter | |
Long Term Debt And Capital Lease Obligations [Line Items] | |
Redemption price percentage | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rental expense | $ 54.8 | $ 56.1 | $ 57.8 |
Rental income from subleases in 2017 | 1.8 | ||
Rental income from subleases in 2018 | 1.3 | ||
Rental income from subleases in 2019 | 1.4 | ||
Rental income from subleases in 2020 | 0.8 | ||
Rental income from subleases in 2021 | 0.8 | ||
Rental income from subleases beyond five years | $ 2.3 |
Future Minimum Payments for all
Future Minimum Payments for all Operating Lease Obligations (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 48,712 |
2,018 | 41,332 |
2,019 | 37,541 |
2,020 | 35,052 |
2,021 | 33,181 |
Thereafter | 74,674 |
Total | $ 270,492 |
Summary of Components of Deferr
Summary of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, Allowance for doubtful accounts | $ 17,220 | $ 17,953 |
Deferred tax assets, Accrued vacation and bonus | 38,596 | 37,481 |
Deferred tax assets, Deferred rent | 12,034 | 13,415 |
Deferred tax assets, Share-based compensation | 24,783 | 30,037 |
Deferred tax assets, Notes receivable from employees | 21,010 | 20,353 |
Deferred tax assets, State net operating loss carryforward and credits | 4,169 | 3,883 |
Deferred tax assets, Foreign net operating loss carryforward | 12,437 | 6,614 |
Deferred tax assets, Future foreign tax credit asset | 2,545 | 3,753 |
Deferred compensation | 3,084 | 2,279 |
Deferred tax assets, Other-net | 5,284 | 3,754 |
Total deferred tax assets | 141,162 | 139,522 |
Deferred tax liabilities, Revenue recognition | (11,590) | (12,452) |
Deferred tax liabilities, Property, equipment and capitalized software | (6,527) | (5,739) |
Deferred tax liabilities, Goodwill and other intangible asset amortization | (273,990) | (247,951) |
Total deferred tax liabilities | (292,107) | (266,142) |
Valuation allowance | (18,900) | (13,167) |
Net deferred tax liabilities | $ (169,845) | $ (139,787) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||
Undistributed non-U.S. subsidiary earnings | $ 81,700 | |
Undistributed earnings subject to U.S. federal income tax | 28,600 | |
Valuation allowance | 18,900 | $ 13,167 |
Deferred tax liability not recognized related to tax basis difference in investment in foreign subsidiaries | 15,400 | |
Liability for uncertain tax positions | 2,700 | $ 8,100 |
Increase decrease in liability for uncertain tax positions | $ (5,400) | |
Minimum | ||
Income Tax [Line Items] | ||
Operating loss carryforward period | 20 years | |
Maximum | ||
Income Tax [Line Items] | ||
Operating loss carryforward period | indefinite |
Summary of Components of Income
Summary of Components of Income Before Income Tax Provision from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 66,202 | $ 59,408 | $ 60,315 | ||||||||
Foreign | 61,601 | 45,978 | 41,096 | ||||||||
Income before income tax provision | $ 5,269 | $ 31,983 | $ 41,984 | $ 48,567 | $ 17,926 | $ 16,486 | $ 35,631 | $ 35,343 | $ 127,803 | $ 105,386 | $ 101,411 |
Summary of Components of Inco82
Summary of Components of Income Tax Provision from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||||||||||
Federal | $ (3,326) | $ 23,957 | $ 288 | ||||||||
State | 1,686 | 1,943 | 4,681 | ||||||||
Foreign | 13,864 | 10,029 | 14,042 | ||||||||
Current, Total | 12,224 | 35,929 | 19,011 | ||||||||
Deferred | |||||||||||
Federal | 23,182 | 1,546 | 21,657 | ||||||||
State | 8,284 | 1,265 | 2,309 | ||||||||
Foreign | (1,407) | 593 | (373) | ||||||||
Deferred, Total | 30,059 | 3,404 | 23,593 | ||||||||
Income tax provision | $ (1,832) | $ 10,292 | $ 15,437 | $ 18,386 | $ 7,577 | $ 6,177 | $ 13,922 | $ 11,657 | $ 42,283 | $ 39,333 | $ 42,604 |
Summary of Income Tax Provision
Summary of Income Tax Provision from Continuing Operations Resulted in Effective Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense at federal statutory rate | $ 44,731 | $ 36,885 | $ 35,494 | ||||||||
State income taxes, net of federal benefit | 6,075 | 1,587 | 3,494 | ||||||||
Benefit from lower foreign tax rates | (7,827) | (5,973) | (4,154) | ||||||||
Valuation allowance on foreign tax credits and net operating loss carryforward | 254 | 2,326 | 4,604 | ||||||||
Other expenses not deductible for tax purposes | 3,082 | 2,719 | 2,962 | ||||||||
Adjustment to reserve for uncertain tax positions | (3,547) | 658 | 220 | ||||||||
Other adjustments, net | (485) | 1,131 | (16) | ||||||||
Income tax provision | $ (1,832) | $ 10,292 | $ 15,437 | $ 18,386 | $ 7,577 | $ 6,177 | $ 13,922 | $ 11,657 | $ 42,283 | $ 39,333 | $ 42,604 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Nov. 05, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 02, 2016 |
Stockholders Equity [Line Items] | |||||
Value of shares that have been repurchased and retired during the period | $ 21,489,000 | $ 26,532,000 | |||
Payment for share repurchase | $ 21,489,000 | $ 26,532,000 | $ 4,367,000 | ||
2016 Stock Repurchase Program | |||||
Stockholders Equity [Line Items] | |||||
Board of Directors authorized stock repurchase program | $ 100,000,000 | ||||
Number of shares that have been repurchased and retired during the period | 452,300 | ||||
Average price per share | $ 41.06 | ||||
Value of shares that have been repurchased and retired during the period | $ 18,600,000 | ||||
Available amount under repurchase program | 81,400,000 | ||||
Payment for share repurchase | $ 18,600,000 | ||||
2015 Stock Repurchase Program | |||||
Stockholders Equity [Line Items] | |||||
Board of Directors authorized stock repurchase program | $ 50,000,000 | ||||
Number of shares that have been repurchased and retired during the period | 85,100 | 764,545 | |||
Average price per share | $ 34.16 | $ 34.68 | |||
Value of shares that have been repurchased and retired during the period | $ 2,900,000 | $ 26,532,000 | |||
Payment for share repurchase | $ 2,900,000 | $ 26,532,000 | |||
Stock repurchase program, period | 6 months | ||||
Stock repurchase program expiration date | May 5, 2016 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic Employees | |||
Employee Benefit Plan [Line Items] | |||
Employer contributions to plan | $ 11.4 | $ 10.9 | $ 9.7 |
Foreign Employees | |||
Employee Benefit Plan [Line Items] | |||
Employer contributions to plan | $ 6.3 | $ 6.1 | $ 6 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 5 |
Revenues and Adjusted Segment E
Revenues and Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 441,920 | $ 438,042 | $ 460,147 | $ 470,285 | $ 442,204 | $ 455,470 | $ 449,137 | $ 432,338 | $ 1,810,394 | $ 1,779,149 | $ 1,756,212 |
Adjusted Segment EBITDA | 285,944 | 283,435 | 291,375 | ||||||||
Corporate Finance & Restructuring | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 483,269 | 440,398 | 391,115 | ||||||||
Adjusted Segment EBITDA | 97,688 | 90,101 | 55,492 | ||||||||
Forensic and Litigation Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 457,734 | 482,269 | 483,380 | ||||||||
Adjusted Segment EBITDA | 57,882 | 64,267 | 90,468 | ||||||||
Economic Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 500,487 | 447,909 | 451,040 | ||||||||
Adjusted Segment EBITDA | 74,102 | 62,330 | 59,282 | ||||||||
Technology | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 177,720 | 218,599 | 241,310 | ||||||||
Adjusted Segment EBITDA | 25,814 | 39,010 | 63,545 | ||||||||
Strategic Communications | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 191,184 | 189,974 | 189,367 | ||||||||
Adjusted Segment EBITDA | $ 30,458 | $ 27,727 | $ 22,588 |
Reconciliation of Net Income To
Reconciliation of Net Income To Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||||||||||
Net income | $ 7,101 | $ 21,691 | $ 26,547 | $ 30,181 | $ 10,349 | $ 10,309 | $ 21,709 | $ 23,686 | $ 85,520 | $ 66,053 | $ 58,807 |
Income tax provision | (1,832) | 10,292 | 15,437 | 18,386 | 7,577 | 6,177 | 13,922 | 11,657 | 42,283 | 39,333 | 42,604 |
Interest income and other | (571) | (3,213) | (4,125) | (2,557) | (392) | (2,027) | (950) | 137 | (10,466) | (3,232) | (4,670) |
Interest expense | $ 5,983 | $ 6,304 | $ 6,303 | $ 6,229 | $ 6,231 | 11,696 | $ 12,473 | $ 12,368 | 24,819 | 42,768 | 50,685 |
Loss on early extinguishment of debt | $ 19,589 | 19,589 | |||||||||
Unallocated corporate expenses | 88,182 | 81,348 | 84,545 | ||||||||
Segment depreciation expense | 34,064 | 27,717 | 30,267 | ||||||||
Amortization of intangible assets | 10,306 | 11,726 | 15,521 | ||||||||
Segment special charges | 9,833 | 16,339 | |||||||||
Remeasurement of acquisition-related contingent consideration | 1,403 | (1,867) | (2,723) | ||||||||
Adjusted Segment EBITDA | $ 285,944 | $ 283,435 | $ 291,375 |
Assets by Segments (Detail)
Assets by Segments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,225,368 | $ 2,229,018 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,982,587 | 2,048,198 |
Operating Segments | Corporate Finance & Restructuring | ||
Segment Reporting Information [Line Items] | ||
Total assets | 681,919 | 671,605 |
Operating Segments | Forensic and Litigation Consulting | ||
Segment Reporting Information [Line Items] | ||
Total assets | 400,047 | 437,398 |
Operating Segments | Economic Consulting | ||
Segment Reporting Information [Line Items] | ||
Total assets | 496,757 | 498,765 |
Operating Segments | Technology | ||
Segment Reporting Information [Line Items] | ||
Total assets | 189,704 | 200,987 |
Operating Segments | Strategic Communications | ||
Segment Reporting Information [Line Items] | ||
Total assets | 214,160 | 239,443 |
Unallocated Corporate Assets | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 242,781 | $ 180,820 |
Revenues Based on Location of L
Revenues Based on Location of Legal Entity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 441,920 | $ 438,042 | $ 460,147 | $ 470,285 | $ 442,204 | $ 455,470 | $ 449,137 | $ 432,338 | $ 1,810,394 | $ 1,779,149 | $ 1,756,212 |
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,298,492 | 1,281,444 | 1,256,046 | ||||||||
UNITED KINGDOM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 246,236 | 236,925 | 232,281 | ||||||||
All Other Foreign Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 265,666 | $ 260,780 | $ 267,885 |
Information on Long-Lived Asset
Information on Long-Lived Assets and Net Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation | $ 61,856 | $ 74,760 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation | 39,584 | 47,107 |
Net assets | 709,634 | 660,396 |
UNITED KINGDOM | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation | 15,312 | 20,335 |
Net assets | 193,276 | 210,801 |
All Other Foreign Countries | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation | 6,960 | 7,318 |
Net assets | $ 304,448 | $ 276,406 |
Supplemental Condensed Consol92
Supplemental Condensed Consolidating Guarantor and Non- Guarantor Financial Information - Additional Information (Detail) | Dec. 31, 2016 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Guarantors Subsidiary ownership percentage | 100.00% |
Supplemental Condensed Consol93
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information Condensed Consolidating Balance Sheet Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assets | |||||
Cash and cash equivalents | $ 216,158 | $ 149,760 | $ 283,680 | $ 205,833 | |
Accounts receivable, net | 474,897 | 499,784 | |||
Other current assets | 92,116 | 92,081 | |||
Total current assets | 783,171 | 741,625 | |||
Property and equipment, net | 61,856 | 74,760 | |||
Goodwill | 1,180,001 | 1,198,298 | 1,211,689 | ||
Other intangible assets, net | 52,120 | 63,935 | |||
Other assets | 148,220 | 150,400 | |||
Total assets | 2,225,368 | 2,229,018 | |||
Liabilities | |||||
Other current liabilities | 378,455 | 347,077 | |||
Total current liabilities | 378,455 | 347,077 | |||
Long-term debt, net | [1] | 365,528 | 494,772 | ||
Other liabilities | 274,027 | 239,566 | |||
Total liabilities | 1,018,010 | 1,081,415 | |||
Stockholders' equity | 1,207,358 | 1,147,603 | 1,102,746 | 1,042,259 | |
Total liabilities and stockholders' equity | 2,225,368 | 2,229,018 | |||
FTI Consulting | |||||
Assets | |||||
Cash and cash equivalents | 47,420 | 35,211 | 171,090 | 111,943 | |
Accounts receivable, net | 137,523 | 159,121 | |||
Other current assets | 44,708 | 44,086 | |||
Total current assets | 229,651 | 238,418 | |||
Property and equipment, net | 25,466 | 33,699 | |||
Goodwill | 558,978 | 558,978 | |||
Other intangible assets, net | 21,959 | 25,863 | |||
Investments in subsidiaries | 2,065,819 | 1,995,409 | |||
Other assets | 47,308 | 40,359 | |||
Total assets | 2,949,181 | 2,892,726 | |||
Liabilities | |||||
Intercompany payables | 1,027,050 | 930,066 | |||
Other current liabilities | 137,710 | 135,421 | |||
Total current liabilities | 1,164,760 | 1,065,487 | |||
Long-term debt, net | 365,528 | 494,772 | |||
Other liabilities | 211,535 | 184,864 | |||
Total liabilities | 1,741,823 | 1,745,123 | |||
Stockholders' equity | 1,207,358 | 1,147,603 | |||
Total liabilities and stockholders' equity | 2,949,181 | 2,892,726 | |||
Guarantor Subsidiaries | |||||
Assets | |||||
Cash and cash equivalents | 156 | 165 | 159 | 494 | |
Accounts receivable, net | 163,820 | 169,488 | |||
Intercompany receivables | 1,029,800 | 936,452 | |||
Other current assets | 24,944 | 25,627 | |||
Total current assets | 1,218,720 | 1,131,732 | |||
Property and equipment, net | 14,118 | 13,409 | |||
Goodwill | 416,053 | 416,053 | |||
Other intangible assets, net | 13,393 | 15,571 | |||
Investments in subsidiaries | 490,634 | 486,462 | |||
Other assets | 65,398 | 72,981 | |||
Total assets | 2,218,316 | 2,136,208 | |||
Liabilities | |||||
Intercompany payables | 8,921 | ||||
Other current liabilities | 129,810 | 107,188 | |||
Total current liabilities | 129,810 | 116,109 | |||
Other liabilities | 16,411 | 12,562 | |||
Total liabilities | 146,221 | 128,671 | |||
Stockholders' equity | 2,072,095 | 2,007,537 | |||
Total liabilities and stockholders' equity | 2,218,316 | 2,136,208 | |||
Non-Guarantor Subsidiaries | |||||
Assets | |||||
Cash and cash equivalents | 168,582 | 114,384 | $ 112,431 | $ 93,396 | |
Accounts receivable, net | 173,554 | 171,175 | |||
Intercompany receivables | 62,651 | ||||
Other current assets | 22,464 | 22,368 | |||
Total current assets | 364,600 | 370,578 | |||
Property and equipment, net | 22,272 | 27,652 | |||
Goodwill | 204,970 | 223,267 | |||
Other intangible assets, net | 34,725 | 43,542 | |||
Other assets | 35,514 | 37,060 | |||
Total assets | 662,081 | 702,099 | |||
Liabilities | |||||
Intercompany payables | 2,750 | 60,116 | |||
Other current liabilities | 110,935 | 104,468 | |||
Total current liabilities | 113,685 | 164,584 | |||
Other liabilities | 46,081 | 42,140 | |||
Total liabilities | 159,766 | 206,724 | |||
Stockholders' equity | 502,315 | 495,375 | |||
Total liabilities and stockholders' equity | 662,081 | 702,099 | |||
Eliminations | |||||
Assets | |||||
Intercompany receivables | (1,029,800) | (999,103) | |||
Total current assets | (1,029,800) | (999,103) | |||
Other intangible assets, net | (17,957) | (21,041) | |||
Investments in subsidiaries | (2,556,453) | (2,481,871) | |||
Total assets | (3,604,210) | (3,502,015) | |||
Liabilities | |||||
Intercompany payables | (1,029,800) | (999,103) | |||
Total current liabilities | (1,029,800) | (999,103) | |||
Total liabilities | (1,029,800) | (999,103) | |||
Stockholders' equity | (2,574,410) | (2,502,912) | |||
Total liabilities and stockholders' equity | $ (3,604,210) | $ (3,502,015) | |||
[1] | There were no current portions of long-term debt as of December 31, 2016 and 2015. |
Supplemental Condensed Consol94
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Condensed Consolidating Statement Of Comprehensive Income (Loss)) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 441,920 | $ 438,042 | $ 460,147 | $ 470,285 | $ 442,204 | $ 455,470 | $ 449,137 | $ 432,338 | $ 1,810,394 | $ 1,779,149 | $ 1,756,212 |
Operating expenses | |||||||||||
Direct cost of revenues | 308,239 | 293,702 | 303,194 | 305,636 | 299,336 | 301,609 | 291,469 | 279,030 | 1,210,771 | 1,171,444 | 1,144,757 |
Selling, general and administrative expenses | 116,478 | 106,220 | 108,245 | 103,609 | 116,351 | 105,058 | 109,045 | 102,214 | 434,552 | 432,668 | 433,845 |
Special charges | 3,634 | 1,750 | 5,061 | 10,445 | 0 | 16,339 | |||||
Acquisition-related contingent consideration | 623 | 201 | 206 | 1,134 | (55) | 159 | (1,538) | 234 | 2,164 | (1,200) | (1,676) |
Amortization of other intangible assets | 2,265 | 2,845 | 2,590 | 2,606 | 2,807 | 2,900 | 3,007 | 3,012 | 10,306 | 11,726 | 15,521 |
Costs and Expenses, Total | 431,239 | 402,968 | 415,985 | 418,046 | 418,439 | 409,726 | 401,983 | 384,490 | 1,668,238 | 1,614,638 | 1,608,786 |
Operating income | 10,681 | 35,074 | 44,162 | 52,239 | 23,765 | 45,744 | 47,154 | 47,848 | 142,156 | 164,511 | 147,426 |
Other (expense) income | (14,353) | (59,125) | (46,015) | ||||||||
Income before income tax provision | 5,269 | 31,983 | 41,984 | 48,567 | 17,926 | 16,486 | 35,631 | 35,343 | 127,803 | 105,386 | 101,411 |
Income tax provision | (1,832) | 10,292 | 15,437 | 18,386 | 7,577 | 6,177 | 13,922 | 11,657 | 42,283 | 39,333 | 42,604 |
Net income | $ 7,101 | $ 21,691 | $ 26,547 | $ 30,181 | $ 10,349 | $ 10,309 | $ 21,709 | $ 23,686 | 85,520 | 66,053 | 58,807 |
Other comprehensive loss, net of tax: | |||||||||||
Foreign currency translation adjustments, net of tax expense of $0 | (41,884) | (28,727) | (29,179) | ||||||||
Other comprehensive loss, net of tax | (41,884) | (28,727) | (29,179) | ||||||||
Comprehensive income | 43,636 | 37,326 | 29,628 | ||||||||
FTI Consulting | |||||||||||
Revenues | 671,408 | 667,259 | 617,843 | ||||||||
Operating expenses | |||||||||||
Direct cost of revenues | 447,254 | 428,356 | 401,451 | ||||||||
Selling, general and administrative expenses | 190,546 | 189,607 | 181,529 | ||||||||
Special charges | 2,916 | 15,227 | |||||||||
Acquisition-related contingent consideration | 6 | (1,408) | (469) | ||||||||
Amortization of other intangible assets | 3,903 | 3,944 | 4,235 | ||||||||
Costs and Expenses, Total | 644,625 | 620,499 | 601,973 | ||||||||
Operating income | 26,783 | 46,760 | 15,870 | ||||||||
Other (expense) income | (27,228) | (64,554) | (51,511) | ||||||||
Income before income tax provision | (445) | (17,794) | (35,641) | ||||||||
Income tax provision | 1,222 | (6,944) | (14,981) | ||||||||
Equity in net earnings of subsidiaries | 87,187 | 76,903 | 79,467 | ||||||||
Net income | 85,520 | 66,053 | 58,807 | ||||||||
Other comprehensive loss, net of tax: | |||||||||||
Comprehensive income | 85,520 | 66,053 | 58,807 | ||||||||
Guarantor Subsidiaries | |||||||||||
Revenues | 625,950 | 754,458 | 1,002,571 | ||||||||
Operating expenses | |||||||||||
Direct cost of revenues | 428,158 | 551,829 | 778,648 | ||||||||
Selling, general and administrative expenses | 124,019 | 121,112 | 121,085 | ||||||||
Special charges | 6,242 | 30 | |||||||||
Acquisition-related contingent consideration | 2,158 | 208 | (358) | ||||||||
Amortization of other intangible assets | 2,179 | 2,861 | 2,702 | ||||||||
Costs and Expenses, Total | 562,756 | 676,010 | 902,107 | ||||||||
Operating income | 63,194 | 78,448 | 100,464 | ||||||||
Other (expense) income | (2,811) | (4,881) | (7,104) | ||||||||
Income before income tax provision | 60,383 | 73,567 | 93,360 | ||||||||
Income tax provision | 27,961 | 35,579 | 43,915 | ||||||||
Equity in net earnings of subsidiaries | 45,412 | 31,744 | 23,633 | ||||||||
Net income | 77,834 | 69,732 | 73,078 | ||||||||
Other comprehensive loss, net of tax: | |||||||||||
Comprehensive income | 77,834 | 69,732 | 73,078 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Revenues | 522,757 | 504,429 | 506,181 | ||||||||
Operating expenses | |||||||||||
Direct cost of revenues | 344,820 | 337,856 | 334,015 | ||||||||
Selling, general and administrative expenses | 120,247 | 122,348 | 132,257 | ||||||||
Special charges | 1,287 | 1,082 | |||||||||
Acquisition-related contingent consideration | (849) | ||||||||||
Amortization of other intangible assets | 7,308 | 8,442 | 12,375 | ||||||||
Costs and Expenses, Total | 473,662 | 468,646 | 478,880 | ||||||||
Operating income | 49,095 | 35,783 | 27,301 | ||||||||
Other (expense) income | 15,686 | 10,310 | 12,600 | ||||||||
Income before income tax provision | 64,781 | 46,093 | 39,901 | ||||||||
Income tax provision | 13,100 | 10,698 | 13,670 | ||||||||
Net income | 51,681 | 35,395 | 26,231 | ||||||||
Other comprehensive loss, net of tax: | |||||||||||
Foreign currency translation adjustments, net of tax expense of $0 | (41,884) | (28,727) | (29,179) | ||||||||
Other comprehensive loss, net of tax | (41,884) | (28,727) | (29,179) | ||||||||
Comprehensive income | 9,797 | 6,668 | (2,948) | ||||||||
Eliminations | |||||||||||
Revenues | (9,721) | (146,997) | (370,383) | ||||||||
Operating expenses | |||||||||||
Direct cost of revenues | (9,461) | (146,597) | (369,357) | ||||||||
Selling, general and administrative expenses | (260) | (399) | (1,026) | ||||||||
Amortization of other intangible assets | (3,084) | (3,521) | (3,791) | ||||||||
Costs and Expenses, Total | (12,805) | (150,517) | (374,174) | ||||||||
Operating income | 3,084 | 3,520 | 3,791 | ||||||||
Income before income tax provision | 3,084 | 3,520 | 3,791 | ||||||||
Equity in net earnings of subsidiaries | (132,599) | (108,647) | (103,100) | ||||||||
Net income | (129,515) | (105,127) | (99,309) | ||||||||
Other comprehensive loss, net of tax: | |||||||||||
Comprehensive income | $ (129,515) | $ (105,127) | $ (99,309) |
Supplemental Condensed Consol95
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Condensed Consolidating Statement Of Comprehensive Income (Loss)) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Foreign currency translation adjustments, tax expense | $ 0 | $ 0 | $ 0 |
Supplemental Condensed Consol96
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information Condensed Consolidating Statement Of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net cash (used in) provided by operating activities | $ 233,488 | $ 139,920 | $ 135,401 |
Investing activities | |||
Payments for acquisition of businesses, net of cash received | (1,251) | (575) | (23,467) |
Purchases of property and equipment | (28,935) | (31,399) | (39,256) |
Other | 54 | 237 | 5,128 |
Net cash used in investing activities | (30,132) | (31,737) | (57,595) |
Financing activities | |||
Borrowings under revolving line of credit, net | (130,000) | 200,000 | |
Payments of long-term debt | (425,671) | (6,014) | |
Payments of debt issue costs | (3,843) | ||
Deposits | 4,006 | 3,227 | 13,071 |
Purchase and retirement of common stock | (21,489) | (26,532) | (4,367) |
Net issuance of common stock under equity compensation plans | 21,708 | 16,666 | 4,772 |
Other | 465 | 191 | (1,132) |
Net cash (used in) provided by financing activities | (125,310) | (235,962) | 6,330 |
Effect of exchange rate changes on cash and cash equivalents | (11,648) | (6,141) | (6,289) |
Net increase (decrease) in cash and cash equivalents | 66,398 | (133,920) | 77,847 |
Cash and cash equivalents, beginning of period | 149,760 | 283,680 | 205,833 |
Cash and cash equivalents, end of period | 216,158 | 149,760 | 283,680 |
FTI Consulting | |||
Operating activities | |||
Net cash (used in) provided by operating activities | 46,908 | 14,815 | (36,921) |
Investing activities | |||
Payments for acquisition of businesses, net of cash received | (14,729) | ||
Purchases of property and equipment | (3,576) | (9,192) | (12,738) |
Other | 54 | 79 | 139 |
Net cash used in investing activities | (3,522) | (9,113) | (27,328) |
Financing activities | |||
Borrowings under revolving line of credit, net | (130,000) | 200,000 | |
Payments of long-term debt | (425,671) | ||
Payments of debt issue costs | (3,843) | ||
Purchase and retirement of common stock | (21,489) | (26,532) | (4,367) |
Net issuance of common stock under equity compensation plans | 21,708 | 16,666 | 4,772 |
Other | 1,121 | 485 | 366 |
Intercompany transfers | 97,483 | 97,314 | 122,625 |
Net cash (used in) provided by financing activities | (31,177) | (141,581) | 123,396 |
Net increase (decrease) in cash and cash equivalents | 12,209 | (135,879) | 59,147 |
Cash and cash equivalents, beginning of period | 35,211 | 171,090 | 111,943 |
Cash and cash equivalents, end of period | 47,420 | 35,211 | 171,090 |
Guarantor Subsidiaries | |||
Operating activities | |||
Net cash (used in) provided by operating activities | 123,101 | 83,516 | 142,540 |
Investing activities | |||
Payments for acquisition of businesses, net of cash received | (7,783) | ||
Purchases of property and equipment | (20,185) | (16,487) | (13,080) |
Net cash used in investing activities | (20,185) | (16,487) | (20,863) |
Financing activities | |||
Payments of long-term debt | (6,000) | ||
Other | (656) | (294) | (555) |
Intercompany transfers | (102,269) | (66,729) | (115,457) |
Net cash (used in) provided by financing activities | (102,925) | (67,023) | (122,012) |
Net increase (decrease) in cash and cash equivalents | (9) | 6 | (335) |
Cash and cash equivalents, beginning of period | 165 | 159 | 494 |
Cash and cash equivalents, end of period | 156 | 165 | 159 |
Non-Guarantor Subsidiaries | |||
Operating activities | |||
Net cash (used in) provided by operating activities | 63,479 | 41,589 | 29,782 |
Investing activities | |||
Payments for acquisition of businesses, net of cash received | (1,251) | (575) | (955) |
Purchases of property and equipment | (5,174) | (5,720) | (13,438) |
Other | 158 | 4,989 | |
Net cash used in investing activities | (6,425) | (6,137) | (9,404) |
Financing activities | |||
Payments of long-term debt | (14) | ||
Deposits | 4,006 | 3,227 | 13,071 |
Other | (943) | ||
Intercompany transfers | 4,786 | (30,585) | (7,168) |
Net cash (used in) provided by financing activities | 8,792 | (27,358) | 4,946 |
Effect of exchange rate changes on cash and cash equivalents | (11,648) | (6,141) | (6,289) |
Net increase (decrease) in cash and cash equivalents | 54,198 | 1,953 | 19,035 |
Cash and cash equivalents, beginning of period | 114,384 | 112,431 | 93,396 |
Cash and cash equivalents, end of period | $ 168,582 | $ 114,384 | $ 112,431 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 441,920 | $ 438,042 | $ 460,147 | $ 470,285 | $ 442,204 | $ 455,470 | $ 449,137 | $ 432,338 | $ 1,810,394 | $ 1,779,149 | $ 1,756,212 |
Direct cost of revenues | 308,239 | 293,702 | 303,194 | 305,636 | 299,336 | 301,609 | 291,469 | 279,030 | 1,210,771 | 1,171,444 | 1,144,757 |
Selling, general and administrative expenses | 116,478 | 106,220 | 108,245 | 103,609 | 116,351 | 105,058 | 109,045 | 102,214 | 434,552 | 432,668 | 433,845 |
Special charges | 3,634 | 1,750 | 5,061 | 10,445 | 0 | 16,339 | |||||
Acquisition-related contingent consideration | 623 | 201 | 206 | 1,134 | (55) | 159 | (1,538) | 234 | 2,164 | (1,200) | (1,676) |
Amortization of other intangible assets | 2,265 | 2,845 | 2,590 | 2,606 | 2,807 | 2,900 | 3,007 | 3,012 | 10,306 | 11,726 | 15,521 |
Costs and Expenses, Total | 431,239 | 402,968 | 415,985 | 418,046 | 418,439 | 409,726 | 401,983 | 384,490 | 1,668,238 | 1,614,638 | 1,608,786 |
Operating income | 10,681 | 35,074 | 44,162 | 52,239 | 23,765 | 45,744 | 47,154 | 47,848 | 142,156 | 164,511 | 147,426 |
Interest income and other | 571 | 3,213 | 4,125 | 2,557 | 392 | 2,027 | 950 | (137) | 10,466 | 3,232 | 4,670 |
Interest expense | (5,983) | (6,304) | (6,303) | (6,229) | (6,231) | (11,696) | (12,473) | (12,368) | (24,819) | (42,768) | (50,685) |
Loss on early extinguishment of debt | (19,589) | (19,589) | |||||||||
Income before income tax provision | 5,269 | 31,983 | 41,984 | 48,567 | 17,926 | 16,486 | 35,631 | 35,343 | 127,803 | 105,386 | 101,411 |
Income tax provision | (1,832) | 10,292 | 15,437 | 18,386 | 7,577 | 6,177 | 13,922 | 11,657 | 42,283 | 39,333 | 42,604 |
Net income | $ 7,101 | $ 21,691 | $ 26,547 | $ 30,181 | $ 10,349 | $ 10,309 | $ 21,709 | $ 23,686 | $ 85,520 | $ 66,053 | $ 58,807 |
Earnings per common share — basic | $ 0.17 | $ 0.53 | $ 0.65 | $ 0.75 | $ 0.25 | $ 0.25 | $ 0.53 | $ 0.59 | $ 2.09 | $ 1.62 | $ 1.48 |
Earnings per common share — diluted | $ 0.17 | $ 0.52 | $ 0.64 | $ 0.73 | $ 0.25 | $ 0.25 | $ 0.52 | $ 0.57 | $ 2.05 | $ 1.58 | $ 1.44 |
Weighted average number of common shares outstanding — basic | 41,201 | 41,239 | 40,820 | 40,506 | 41,078 | 41,094 | 40,792 | 40,384 | 40,943 | 40,846 | 39,726 |
Diluted | 42,018 | 42,065 | 41,599 | 41,148 | 41,879 | 41,982 | 41,696 | 41,324 | 41,709 | 41,729 | 40,729 |
Components of Valuation and Qua
Components of Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Allowance For Doubtful Accounts And Unbilled Services | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of period | $ 185,754 | $ 144,825 | $ 109,273 | |
Charged to Expense | 8,912 | 15,564 | 18,252 | |
Charged to Other Accounts | [1] | 9,501 | 42,134 | 35,423 |
Deductions | [2] | 25,348 | 16,769 | 18,123 |
Balance at End of Period | 178,819 | 185,754 | 144,825 | |
Valuation Allowance of Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of period | 13,167 | 14,442 | 10,201 | |
Charged to Expense | 5,733 | 4,241 | ||
Deductions | [2] | 1,275 | ||
Balance at End of Period | $ 18,900 | $ 13,167 | $ 14,442 | |
[1] | Includes estimated provision for unbilled services recorded as a reduction to revenues (i.e., fee, rate and other adjustments). | |||
[2] | Includes estimated direct write-offs of uncollectible and unrealizable accounts receivable. |