COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 02, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33961 | ||
Entity Registrant Name | HILL INTERNATIONAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-0953973 | ||
Entity Address, Address Line One | One Commerce Square | ||
Entity Address, Address Line Two | 2005 Market Street, 17th Floor | ||
Entity Address, City or Town | Philadelphia, | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19103 | ||
City Area Code | 215 | ||
Local Phone Number | 309-7700 | ||
Title of 12(b) Security | Common stock, par value $0.0001 per share | ||
Trading Symbol | HIL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 73,602,814 | ||
Entity Common Stock, Shares Outstanding | 56,481,189 | ||
Documents Incorporated by Reference | Portions of the Company's Proxy Statement for its 2021 Annual Meeting of Stockholders ("2021 Proxy Statement") are incorporated by reference in Part III. | ||
Entity Central Index Key | 0001287808 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 34,229 | $ 15,915 |
Cash - restricted | 3,752 | 4,666 |
Accounts receivable, net | 98,186 | 103,892 |
Accounts receivable - affiliates, net | 23,285 | 18,776 |
Current portion of retainage receivable | 11,775 | 16,459 |
Prepaid expenses and other current assets | 9,378 | 9,340 |
Income taxes receivable | 2,298 | 2,256 |
Total current assets | 182,903 | 171,304 |
Property and equipment, net | 9,443 | 11,895 |
Cash - restricted, net of current portion | 3,432 | 4,401 |
Operating lease right-of-use assets | 13,116 | 17,451 |
Financing lease right-of-use assets | 288 | 0 |
Retainage receivable | 6,044 | 5,695 |
Acquired intangibles, net | 2,253 | 232 |
Goodwill | 46,397 | 48,024 |
Investments | 2,805 | 1,711 |
Deferred income tax assets | 3,698 | 3,800 |
Other assets | 1,620 | 5,038 |
Total assets | 271,999 | 269,551 |
Liabilities and Stockholders’ Equity | ||
Current maturities of notes payable and long-term debt | 987 | 1,792 |
Accounts payable and accrued expenses | 67,797 | 65,172 |
Income taxes payable | 2,219 | 3,152 |
Current portion of deferred revenue | 3,305 | 10,773 |
Current portion of operating lease liabilities | 4,797 | 5,736 |
Current portion of financing lease liabilities | 70 | 0 |
Other current liabilities | 5,796 | 4,876 |
Total current liabilities | 84,971 | 91,501 |
Notes payable and long-term debt, net of current maturities | 48,294 | 41,150 |
Retainage payable | 600 | 1,551 |
Deferred income tax liabilities | 1,210 | 419 |
Deferred revenue | 7,488 | 3,041 |
Non-current operating lease liabilities | 13,184 | 17,030 |
Non-current financing lease liabilities | 186 | 0 |
Other liabilities | 6,778 | 4,631 |
Total liabilities | 162,711 | 159,323 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 1,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.0001 par value; 100,000 shares authorized, 62,920 and 62,708 shares issued at December 31, 2020 and 2019, respectively | 6 | 6 |
Additional paid-in capital | 215,010 | 212,759 |
Accumulated deficit | (79,542) | (71,360) |
Accumulated other comprehensive income (loss) | 1,318 | (3,817) |
Treasury stock of 6,807 and 6,546 at December 31, 2020 and 2019, respectively | (29,056) | (28,231) |
Hill International, Inc. share of equity | 107,736 | 109,357 |
Noncontrolling interests | 1,552 | 871 |
Total equity | 109,288 | 110,228 |
Total liabilities and stockholders’ equity | $ 271,999 | $ 269,551 |
CONSOLIDATED BALANCE SHEETS - P
CONSOLIDATED BALANCE SHEETS - Parenthetical - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 62,920,000 | 62,708,000 |
Treasury stock (in shares) | 6,807,000 | 6,546,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Total revenue | $ 368,524 | $ 376,437 |
Direct expenses | 249,173 | 249,587 |
Gross profit | 119,351 | 126,850 |
Selling, general and administrative expenses | 109,215 | 109,746 |
Foreign currency exchange loss | 2,923 | 1,159 |
Plus: Share of profit of equity method affiliates | 3,286 | 2,601 |
Operating profit | 10,499 | 18,546 |
Less: Interest and related financing fees, net | 5,224 | 5,795 |
Plus: Other (loss) income, net | (5,711) | 394 |
(Loss) income before income taxes | (436) | 13,145 |
Income tax expense (benefit) | 7,134 | (1,109) |
Net (loss) income | (7,570) | 14,254 |
Less: net income - noncontrolling interests | 612 | 170 |
Net (loss) income attributable to Hill International, Inc. | $ (8,182) | $ 14,084 |
Basic (loss) income per common share - Hill International, Inc. (in dollars per share) | $ (0.14) | $ 0.25 |
Basic weighted average common shares outstanding (in shares) | 56,603 | 56,280 |
Diluted (loss) income per common share - Hill International, Inc. (in dollars per share) | $ (0.14) | $ 0.25 |
Diluted weighted average common shares outstanding (in shares) | 56,603 | 56,280 |
Consulting fee revenue | ||
Total revenue | $ 296,615 | $ 308,620 |
Reimbursable expenses | ||
Total revenue | $ 71,909 | $ 67,817 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (7,570) | $ 14,254 |
Foreign currency translation adjustments, net of tax | 5,204 | (1,146) |
Comprehensive (loss) income | (2,366) | 13,108 |
Less: Comprehensive income attributable to noncontrolling interests | 681 | 266 |
Comprehensive (loss) income attributable to Hill International, Inc. | $ (3,047) | $ 12,842 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Hill Share of Stockholders' Equity | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests | ||
Balance at beginning of period (in shares) at Dec. 31, 2018 | 62,181 | |||||||||
Balance at beginning of period at Dec. 31, 2018 | $ 94,445 | $ 93,840 | $ 6 | $ 210,084 | $ (85,444) | $ (2,575) | $ (28,231) | $ 605 | ||
Balance at beginning of period of treasury stock (in shares) at Dec. 31, 2018 | 6,546 | |||||||||
Increase (decrease) in stockholders' equity | ||||||||||
Net (loss) earnings | 14,254 | 14,084 | 14,084 | 170 | ||||||
Other comprehensive earnings (loss) | (1,146) | (1,242) | (1,242) | 96 | ||||||
Shares issued to Board of Directors (in shares) | 128 | |||||||||
Shares issued to Board of Directors | 0 | |||||||||
Share-based compensation expense (in shares) | 322 | |||||||||
Share-based compensation expense | 2,514 | 2,514 | 2,514 | |||||||
Shares issued under employee stock purchase plan (in shares) | [1] | 77 | ||||||||
Shares issued under employee stock purchase plan | $ 161 | 161 | 161 | [1] | ||||||
Balance at end of period (in shares) at Dec. 31, 2019 | 62,708 | 62,708 | ||||||||
Balance at end of period at Dec. 31, 2019 | $ 110,228 | 109,357 | $ 6 | 212,759 | (71,360) | (3,817) | $ (28,231) | 871 | ||
Balance at end of period of treasury stock (in shares) at Dec. 31, 2019 | 6,546 | 6,546 | ||||||||
Increase (decrease) in stockholders' equity | ||||||||||
Net (loss) earnings | $ (7,570) | (8,182) | (8,182) | 612 | ||||||
Other comprehensive earnings (loss) | 5,204 | 5,135 | 5,135 | 69 | ||||||
Shares issued to Board of Directors (in shares) | 277 | |||||||||
Shares issued to Board of Directors | 0 | |||||||||
Share-based compensation expense (in shares) | 0 | |||||||||
Share-based compensation expense | 2,006 | 2,006 | 2,006 | |||||||
Shares issued under employee stock purchase plan (in shares) | [1] | 196 | ||||||||
Shares issued under employee stock purchase plan | 245 | 245 | 245 | [1] | ||||||
Transfer of shares pledged as collateral (in shares) | [1] | 261 | 261 | |||||||
Transfer of shares pledged as collateral | [1] | $ (825) | (825) | $ (825) | ||||||
Balance at end of period (in shares) at Dec. 31, 2020 | 62,920 | 62,920 | ||||||||
Balance at end of period at Dec. 31, 2020 | $ 109,288 | $ 107,736 | $ 6 | $ 215,010 | $ (79,542) | $ 1,318 | $ (29,056) | $ 1,552 | ||
Balance at end of period of treasury stock (in shares) at Dec. 31, 2020 | 6,807 | 6,807 | ||||||||
[1] | See Note 12 - Stockholders' Equity for more detail. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash flows from operating activities: | |||
Net (loss) income | $ (7,570) | $ 14,254 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 4,038 | 3,824 | |
Recovery of bad debts | (1,940) | (11,360) | |
Amortization of deferred loan fees | 699 | 715 | |
Deferred tax expense | 782 | 751 | |
Share-based compensation | 2,006 | 2,514 | |
Lease right-of use assets | 4,135 | 3,899 | |
Loss on liquidation of subsidiary | 5,501 | 0 | |
Foreign currency remeasurement losses (gains) | 2,923 | (905) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 13,463 | 27,315 | |
Accounts receivable - affiliates | (4,509) | 485 | |
Prepaid expenses and other current assets | 1,149 | (3,792) | |
Income taxes receivable | (419) | (1,504) | |
Retainage receivable | (337) | 200 | |
Other assets | (4,693) | (164) | |
Accounts payable and accrued expenses | (245) | (14,934) | |
Deferred payroll tax payments | 3,623 | 0 | |
Income taxes payable | (952) | (5,703) | |
Deferred revenue | (3,102) | (2,554) | |
Lease liabilities | (4,622) | (4,630) | |
Other current liabilities | 1,168 | 124 | |
Retainage payable | (952) | 624 | |
Other liabilities | 2,132 | 820 | |
Net cash provided by operating activities | 12,278 | 9,979 | |
Cash flows from investing activities: | |||
Payments for purchase of property and equipment | (1,843) | (3,936) | |
Acquisition of Grandfathered Engineering Corporation license | (1,050) | 0 | |
Net cash used in investing activities | (2,893) | (3,936) | |
Cash flows from financing activities: | |||
Payments on term loans | (893) | (1,060) | |
Proceeds from term loan borrowings | 1,310 | 0 | |
Proceeds from revolving loans | 53,630 | 37,296 | |
Repayment of revolving loans | (47,777) | (41,361) | |
Proceeds from stock issued under employee stock purchase plan | 245 | 194 | |
Net cash provided by (used in) financing activities | 6,515 | (4,931) | |
Effect of foreign exchange rate changes on cash | 540 | 763 | |
Deconsolidated cash | 9 | 0 | |
Net increase in cash, cash equivalents and restricted cash | 16,431 | 1,875 | |
Cash, cash equivalents and restricted cash — beginning of year | 24,982 | 23,107 | |
Cash, cash equivalents and restricted cash — end of year | 41,413 | 24,982 | |
Supplemental disclosures of cash flow information: | |||
Interest and related financing fees paid | 4,670 | 5,347 | |
Income taxes paid | 3,748 | 4,821 | |
Transfer of proceeds from shares pledged as collateral to treasury stock | 825 | 0 | |
Cash paid for amounts included in the measurement of lease liabilities | 8,448 | 8,164 | |
Right-of-use assets obtained in exchange for operating lease liabilities | [1] | 1,293 | 21,351 |
Right-of-use assets obtained in exchange for financing lease liabilities | 288 | 0 | |
Cancellation of PIDC-Local Development Corporation forgivable loan | $ 345 | $ 0 | |
[1] | Amounts relate to the Company's adoption of the new accounting guidance for leases, as described in Note 3 Summary of Significant Accounting Policies, for the year ended December 31, 2019. |
The Company
The Company | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company Hill International, Inc. (including, as required by its context, its subsidiaries, “Hill” or the “Company”) is a professional services firm that provides program management, project management, construction management and other consulting services primarily to the buildings, transportation, environmental, energy and industrial markets worldwide. Hill’s clients include the U.S. federal government, U.S. state and local governments, foreign governments and the private sector. The Company had approximately 2,700 professionals in approximately 70 offices worldwide as of December 31, 2020. The Company was incorporated on June 28, 2006 upon merging with Arpeggio Acquisition Corp in the state of Delaware. Prior to the merger, Arpeggio Acquisition Corp. completed its final public offering on June 30, 2004. Hill's common stock is traded on the NYSE under the trading symbol “HIL.” All amounts included in the following Notes to the Consolidated Financial Statements are in thousands, except per share data. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2020 | |
Liquidity [Abstract] | |
Liquidity | Liquidity The Company's principal sources of liquidity consisted of cash and cash equivalents of $34,229 and $15,915 at December 31, 2020 and 2019, respectively; available borrowing capacity of $7,495 and $9,052 under the Company's domestic revolving credit facility with Société Générale at December 31, 2020 and 2019, respectively; available borrowing capacity under the Company's international revolving credit facility with Société Générale of $1,085 and $3,145 at December 31, 2020 and 2019, respectively; and available borrowing capacity under other foreign credit agreements of $3,131 and $2,538 at December 31, 2020 and 2019, respectively. Additional information regarding the Company's credit facilities is set forth in Note 10 - Notes Payable and Long-Term Debt. In December 2019, COVID-19 was identified in Wuhan, China. In March 2020, the World Health Organization declared COVID-19 a global pandemic as a result of the further spread of the virus into all regions of the world, including those regions where the Company's primary operations occur. The effects of this global pandemic on the Company includes anticipated lower gross and operating margins, as well as temporary delays in certain accounts receivable collections. These effects may continue in the foreseeable future. The Company is focused on preserving its principal sources of liquidity and managing its cash flow and will continue to evaluate the potential short-term and long-term implications of COVID-19 on its consolidated statements of operations. The Company has achieved approximately $11,000 in corporate cost reductions in 2020. The Company believes that it has adequate liquidity and business plans to continue to operate the business and mitigate the risks associated with COVID-19 for the next 12 months from March 16, 2021, the date of this filing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Hill International, Inc. and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassification Certain back-office expenses and foreign currency translation gains and losses that had previously been included in the individual regions in the operating profit/(loss) table presentation are currently being included within the corporate costs line item on the operating profit/(loss) tables herein. The related 2019 prior period operating profit (loss) by geographic region and corporate costs have been recast to reflect this change. This change only affects the presentation in the operating profit/(loss) tables and has no impact on total operating profit/(loss) reported. Foreign currency transaction gains and losses that, in previous periods, had been included in selling, general and administrative ("SG&A") expenses line item on the Consolidated Statements of Operations, are presented as a separate line item on the Consolidated Statements of Operations for the twelve months ended December 31, 2020. The related foreign currency transaction gains and losses for the twelve months ended December 31, 2019 have been reclassed to reflect this change. This change has no impact on the total operating profit/(loss) reported. Certain accrued agency fees that had previously been included in accrued payroll and related expenses in the components of accounts payable and accrued expenses table in Note 9 - Accounts Payable and Accrued Expenses are currently being included within the accrued agency fees line item. The related amounts at December 31, 2019 have been reclassed to reflect this change. Interest costs and (gains)/losses recognized with the Company's End of Service Benefit plan ("EOSB" plan) had previously been included in SG&A and are now presented in other (loss) income, net in the Company's Consolidated Statements of Operations for the twelve months ended December 31, 2020 and 2019 for $637 and $219, respectively. This change results in an increase on the total operating profit previously reported for the twelve months ended December 31, 2019, but has no impact on the total net income reported. Certain geographic regions have been combined in tables throughout the document including in Note 4 - Revenue from Contract with Clients, Note 6 - Property and Equipment and Note 17 - Segment and Related Information. In the current year, Americas includes United States and Latin America and Middle East/Asia/Pacific includes Middle East and Asia/Pacific. The related 2019 presentation has been recast to conform to current year presentation. Other (Loss) Income, net During the twelve months ended December 31, 2020, a loss of $5,501 was recognized due to the bankruptcy filing and deconsolidation of our subsidiaries in Brazil (see Note 18 - Deconsolidation of Controlling Interest in Subsidiaries). Also, the Company's EOSB plan (see Note 16 Benefit Plans) interest cost and actuarial loss totaling $637 for the twelve months ended December 31, 2020 is included within Other (loss) income, net. An additional $345 of other income was recognized during the twelve months ended December 31, 2020, representing the cancellation of a loan agreement made with the PIDC-Local Development Corporation that was funded to the Company on October 24, 2014 as part of the city of Philadelphia's (the "City") Economic Stimulus Program. In February 2020, the City agreed to cancel this loan due to the Company satisfying all obligations upon which cancellation of such debt was conditioned in the Loan Agreement. During the twelve months ended December 31, 2019, the Company recognized $394 of income in Other (Loss) Income, net, related to the settlement of a $1,000 grant received from the Pennsylvania Department of Community and Economic Development (the "PADCED") in May 2015 (the "Grant"), net of $606 of expense related to interest costs, net of gains, related to the Company's EOSB plan and other non-operating activity. The Grant was used as part of the relocation of Hill's corporate headquarters to the city of Philadelphia where partial or full repayment of the Grant is required if specific conditions were not met, which included maintaining a minimum number of employees throughout 2018, among other conditions, with the possibility of extension at the PADCED's discretion. In July 2019, the PADCED concluded that the Company is required to repay $351 of the Grant since the Company failed to meet its employment commitment. In July 2020, the PACDED agreed to further reduce the required repayment to $324 payable in four installments of $81, with the last installment due May 1, 2021. (b) Foreign Currency Translations and Transactions Assets and liabilities of all foreign operations are translated at year-end rates of exchange while revenues and expenses are translated at the average monthly exchange rates. Gains or losses resulting from translating foreign currency financial statements are accumulated in a separate component of stockholders’ equity titled accumulated other comprehensive income (loss) until the entity is sold or substantially liquidated. Gains or losses arising from foreign currency transactions (transactions denominated in a currency other than the entity’s local currency), including those resulting from intercompany transactions, are reflected in foreign currency exchange loss in the consolidated statements of operations. The impact of foreign exchange on long-term intercompany loans, for which repayment has not been scheduled or planned and permanent equity has been elected, are recorded in accumulated other comprehensive income (loss) on the Company's consolidated balance sheets. There were no such long-term intercompany loans as of December 31, 2020. (c) Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the revenue and expenses reported for the periods covered by the financial statements and certain amounts disclosed in the accompanying notes to the consolidated financial statements. Actual results could differ significantly from those estimates and assumptions. The estimates affecting the consolidated financial statements that are particularly significant include revenue calculations, goodwill impairment determination on recoverability of long-lived assets, income taxes, allowance for doubtful accounts, right-of-use assets, operating lease liabilities and commitments and contingencies. (d) Fair Value Measurements The fair value of financial instruments, which primarily consists of cash and cash equivalents, accounts receivable and accounts payable, approximates carrying value due to the short-term nature of the instruments. The carrying value of a significant portion of our credit facilities approximates fair value as the interest rates are variable and approximates current market levels. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact, and the Company considers assumptions that market participants would use when pricing the asset or liability. Non-financial assets and liabilities, such as goodwill and long lived assets that are initially recorded at fair value, will be assessed for impairment, if deemed necessary. Additional information related to the Company's impairment assessment of these assets are included in paragraphs (k) Long-Lived Assets and (l) Goodwill below. See paragraph below (s) Share-Based Compensation, to be read in conjunction with Note 11 Share-Based Compensation, for information related to certain share-based compensation awards that require the Company to estimate the fair value of such award when the value cannot be measured at the time of the grant. (e) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and investments in money market funds and investment grade securities held with financial institutions. The Company considers all highly liquid instruments purchased with a remaining maturity of three months or less at the time of purchase to be cash equivalents. (f) Restricted Cash Restricted cash primarily represents cash collateral required to be maintained in foreign bank accounts to serve as collateral for letters of credit, bonds or guarantees on certain projects. Generally, the cash will remain restricted until the respective project has been completed, which typically is greater than one year. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows: 2020 2019 Cash and cash equivalents $ 34,229 $ 15,915 Cash - restricted 3,752 4,666 Cash - restricted, net of current portion 3,432 4,401 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 41,413 $ 24,982 (g) Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and accounts receivable. The Company maintains its cash accounts with high quality financial institutions. Although the Company believes that the financial institutions with which it does business will be able to fulfill their commitments, there is no assurance that those institutions will be able to continue to do so. The Company provides professional services, under contractual arrangements, to domestic and foreign governmental units, institutions and the private sector. To reduce credit risk, the Company performs ongoing credit evaluations of its clients and requires customary retainers where appropriate. No single client contributed 10% or more to revenue for the years ended December 31, 2020 and 2019. The following table presents the number of clients comprised of 10% or more of the Company's billed accounts receivable: December 31, 2020 2019 Number of 10% clients 1 1 Percentage of billed accounts receivable 16 % 14 % (h) Allowance for Doubtful Accounts The allowance for doubtful accounts is an estimate prepared by management based on identification of the collectability of specific accounts and the overall condition of the receivable portfolios. When evaluating the adequacy of the allowance for doubtful accounts, the Company specifically analyzes trade receivables, including retainage receivable, historical bad debts, client credits, client concentrations, current economic trends and changes in client payment terms. If the financial condition of clients were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Likewise, should the Company determine that it would be able to realize more of its receivables in the future than previously estimated, an adjustment to the allowance would increase earnings in the period such determination was made. The allowance for doubtful accounts is reviewed at a minimum on a quarterly basis and adjustments are recorded as deemed necessary. (i) Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is provided over the estimated useful lives of the assets as follows: Method Estimated Useful Life Furniture and equipment Straight-line 10 years Leasehold improvements Straight-line Shorter of estimated useful life or lease term Computer equipment and software Straight-line 3 to 5 years Automobiles Straight-line 5 years The Company capitalizes costs associated with internally developed and/or purchased software systems that have reached the application development stage and meet recoverability tests. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software, payroll and payroll-related expenses for employees who are directly associated with and devote time to internal-use software projects. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Costs for general and administrative, overhead, maintenance and training, as well as the cost of software that does not add functionality to existing systems, are expensed as incurred. Upon retirement or other disposition of these assets, the cost and related depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected in results of operations. Expenditures for maintenance, repairs and renewals of minor items are charged to expense as incurred. Major renewals and improvements are capitalized. (j) Retainage Receivable Retainage receivable represents balances billed but not paid by clients pursuant to retainage provisions in their contracts and will be due upon completion of specific tasks or the completion of the contract. (k) Long-Lived Assets Acquired intangible assets consist of contract rights, client related intangibles and trade names arising from the Company’s acquisitions. Contract rights represent the fair value of contracts in progress and backlog of an acquired entity. For intangible assets purchased in a business combination, the estimated fair values of the assets are used to establish the cost basis. Valuation techniques consistent with the market approach, the income approach and the cost approach are used to measure fair value. These assets are amortized over their estimated lives which range from three The Company reviews long-lived assets to be held-and-used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset is less than its carrying amount, the asset is considered to be impaired. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flow discounted at a rate commensurate with the risks associated with the recovery of the asset. Assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. No such impairment losses were recorded during the year ended December 31, 2020. During the year ended December 31, 2019, the Company recorded an impairment loss of $563, which is in SG&A on the consolidated statements of operations and in depreciation and amortization on the consolidated statements of cash flows. The impairment related to the Company's 2015 acquisition of one of its current subsidiaries, IMS Proje Yonetimi ve Danismanlik A.S. ("IMS"), which is based out of the Company's office in Turkey. The Company's consolidated balance sheet included an intangible asset related to IMS for client relationships prior to the impairment. In addition to the decline in the intangible asset's carrying value as a result of the Company's exposure to foreign exchange losses, the Company assessed that the client relationships that were in-place at the time of the intangible asset's initial fair value measurement no longer had any value at December 31, 2019. Acquired intangible assets also includes the purchase of an engineering license during the year ended December 31, 2020. The transaction was recorded as an asset acquisition, with an indefinite useful life. (l) Goodwill Goodwill represents the excess of the consideration paid over the fair value of identifiable net assets acquired. Goodwill is not amortized, but instead is subject to impairment testing on an annual basis, and between annual tests whenever events or changes in circumstances indicate that the fair value may be below its carrying amount. The Company tests goodwill annually for impairment during the third quarter. To determine the fair value of our reporting unit, we use the discounted cash flow, the public company and the quoted price methods, weighting the results of each method. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital. The Company’s changes in estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment. During the three months ended March 31, 2020 the Company determined that the significant decline in its market capitalization as a result of the COVID-19 pandemic indicated that an impairment loss may have been incurred. The Company bypassed the qualitative assessment and proceeded directly to performing the quantitative goodwill impairment test. The quantitative goodwill impairment test concluded that the fair value of the Company (reporting unit) exceeded its carrying amount at that time, and therefore, goodwill was not considered impaired. The Company also performed its annual impairment test effective July 1, 2020. Based on the valuation as of July 1, 2020, the fair value of the Company exceeded its carrying value. The Company determined that no impairment existed at December 31, 2020 and December 31, 2019. In the future, the Company will continue to perform the annual test during its fiscal third quarter unless events or circumstances indicate an impairment may have occurred before that time. (m) Investments The Company will, in the ordinary course of business, form joint ventures for specific projects. These joint ventures have historically required limited or no investment and simply provide a pass-through for the Company’s billings. Any distributions in excess of the Company’s billings are accounted for as income when received and are accounted for under the equity method of accounting. In addition, the Company may make other investments accounted for at-cost. The Company’s total investments at December 31, 2020 and 2019 are as follows: December 31, 2020 2019 RAMPED Metro Joint Venture (1)(3) 1,493 527 Concessia, Cartera y Gestion de Infrastructuras S.A. (2) 1,193 1,096 Other (3) 119 88 $ 2,805 $ 1,711 (1) The Company has a 45.0% interest in this joint venture, which was formed for construction management of the Riyadh Metro system in Saudi Arabia. (2) The Company has a 5.7% interest in Concessia, Cartera y Gestion de Infrastructuras S.A. ("Concessia"), an entity which invests in the equity of companies that finance, construct and operate various public and private infrastructure projects in Spain. The practicability exception to fair value measurement was elected due to the fact that there is no readily determinable fair value for this investment. Therefore, the investment is measured at-cost, less impairment, plus or minus observable price changes (in orderly transactions) of an identical or similar investment of the same issuer. There have been no impairments of and no observable price changes in the investment. (3) Includes investments accounted for under the equity method of accounting. (n) Deferred Financing Costs, Net Net deferred financing costs include debt discount and debt issuance costs associated with obtaining commitments for financing transactions. Deferred financing costs related to revolving-debt arrangements are reflected in prepaid expenses and other current assets and other assets in the consolidated balance sheets and are amortized on a straight-line basis over the term of the loan. Deferred financing costs related to any term debt that requires scheduled repayments are recorded as a direct deduction from the Company's notes payable and other long-term debt and are amortized over the term of the respective financing agreement using the effective interest method. The amortization of such costs are included in interest and related financing fees, net, on the accompanying consolidated statements of operations. Unamortized deferred financing costs are expensed if the associated debt is refinanced or repaid before the maturity. (o) Deferred Revenue In certain instances, the Company may collect advance payments from clients for future services. These payments are reflected as deferred revenue in the Company’s consolidated balance sheets. As the services are performed, the Company reduces the balance and recognizes revenue. (p) Deferred Rent The Company adopted Accounting Standards Update ("ASU") 2016-2, Leases (Topic 842) on January 1, 2019, which required the Company to recognize lease assets and operating lease liabilities on the Company's consolidated balance sheet for all leases with estimated lease terms of more than one year. See further detail in Note 15 - Leases. Leases with estimated lease terms of less than one year or arrangements where the Company subleases real estate to a third party were not accounted for under ASU 2016-2. Such leases remained accounted for under the previous Accounting Standards Codification ("ASC") 840, Leases. The lease expense is recognized on a straight-line basis over the lease term and any differences between the rent paid under the terms of the lease and the straight-line rent expense is recorded as a deferred rent liability. At December 31, 2020 and 2019, deferred rent was $2, and is included in other current liabilities and other liabilities in the consolidated balance sheets. (q) Income Taxes The Company estimates income taxes in each of the jurisdictions in which it operates. This process involves estimating its actual current tax exposure together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the Company’s consolidated balance sheets. The Company assesses the likelihood that the deferred tax assets will be recovered from future taxable income and to the extent it believes recovery is not likely, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance in a period, it must include an expense within the tax provision in the consolidated statements of earnings. The Company has recorded a valuation allowance to reduce the deferred tax asset to an amount that is “more likely than not” (i.e., a likelihood greater than 50 percent) to be realized in future years. If the Company determines in the future that it is more likely than not to be allowed by the tax jurisdiction based solely on the technical merits of the position, that the deferred tax assets subject to the valuation allowance will be realized, then the previously provided valuation allowance will be adjusted. The Company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is more likely than not to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. (r) Revenue Recognition The Company generates revenue primarily from providing professional services to its clients under various types of contracts. In providing these services, the Company may incur reimbursable expenses, which consist principally of amounts paid to subcontractors and other third parties and travel and other job related expenses that are contractually reimbursable from clients. The Company includes reimbursable expenses in computing and reporting its total revenue as long as the Company remains responsible to the client for the fulfillment of the contract and for the overall acceptability of all services provided. If estimated total costs on any contract project a loss, the Company charges the entire estimated loss to operations in the period the loss becomes known. The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, incentive awards, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss are known and the loss can be reasonably estimated. These loss projects are re-assessed for each subsequent reporting period until the project is complete. Such revisions could occur at any time and the effects may be material. See, "Note 4 - Revenue from Contracts with Clients" for more detail regarding how the Company recognizes revenue under each of its contractual arrangements. (s) Share-Based Compensation For compensation issued under equity-classified awards, the Company uses the Black-Scholes option-pricing model to measure the estimated fair value of any share-based compensation award when the fair value of the award is not readily determinable, which generally applies to options issued to purchase the Company’s common stock, but may also include restricted stock units, deferred stock units and common stock if the fair value cannot be determined. Option-pricing valuation models require the input of highly subjective assumptions. Once the fair value of the award is determined, the value is recognized as share-based compensation expense and is recognized over the service period on a straight-line basis or when the conditions of the award have been met. Forfeitures reduce compensation expense in the period they occur. The Company’s policy is to primarily use newly issued shares to satisfy the exercise of stock options. Any liability-classified awards are recorded at fair value based on the closing stock price of the Company's common stock and are re-measured each period until settlement of the award. See Note - 11 Share-Based Compensation for more detail. (t) Advertising Costs Advertising costs are expensed as incurred and are reflected in SG&A expenses in the Company's consolidated statements of operations. These costs incurred were $253 and $229 for the years ended December 31, 2020 and 2019, respectively. (u) Income (loss) per Share ("EPS") Basic income (loss) per common share has been computed using the weighted-average number of shares of common stock outstanding during the year. Diluted income (loss) per common share includes the incremental shares issuable upon the assumed exercise of stock options using the treasury stock method and any other unvested share-based compensation awards, if dilutive. Stock options, deferred stock and restricted stock units totaling 2,300 and 2,376 shares of the Company’s common stock were not included in the calculation of diluted common shares outstanding for the years ended December 31, 2020 and 2019, respectively, because they were anti-dilutive. The following table provides a reconciliation to net income (loss) used in the numerator for net (loss) income per common share attributable to Hill: Years Ended December 31, 2020 2019 Net (loss) income $ (7,570) $ 14,254 Less: net earnings - noncontrolling interest 612 170 Net (loss) income attributable to Hill International, Inc. $ (8,182) $ 14,084 Basic weighted average common shares outstanding 56,603 56,280 Effect of dilutive securities: Stock options — — Unvested share-based compensation units — — Diluted weighted average shares common outstanding 56,603 56,280 Basic and diluted net income (loss) per common share - Hill International, Inc. $ (0.14) $ 0.25 (v) New Accounting Pronouncements Changes to U.S. GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs and, based on its assessment, determined that any recently issued or proposed ASUs not listed below are either not applicable to the Company or adoption will have minimal impact on its consolidated financial statements. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued ASU 2017-4, Intangibles - Goodwill and Other (Topic 350), which removes step 2 from the goodwill impairment test. As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units’ fair value. The guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for annual or interim goodwill impairment tests performed on testing dates after January 1, 2017, and the prospective transition method should be applied. The Company adopted this guidance on January 1, 2020 and it did not materially impact its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period, for all entities. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted this guidance on January 1, 2020 on a prospective basis and will begin to capitalize certain implementation costs that may have been previously expensed as incurred. There was no impact on the Company's consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities ("VIE") . The amendments in this ASU for determining whether a decision-making fee is a variable interest require reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required by GAAP). These amendments will create alignment between determining whether a decision-making fee is a variable interest and determining whether a reporting entity within a related party group is the primary beneficiary of a VIE. The standard is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019 for public companies. Early adoption is permitted. The Company adopted this guidance in January 1, 2020. There was no impact on the Company's consolidated financial statements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . This ASU provides guidance on whether certain transactions between collaborative arrangement participants should be accounted for with revenue under Topic 606, specifically when the collaborative arrangement participant is a customer in the context of a unit-of-account. It provides more comparability in the presentation of revenues for certain transactions between collaborative arrangement participants, including adding unit-of-account guidanc |
Revenue from Contracts with Cli
Revenue from Contracts with Clients | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Clients | Revenue from Contracts with ClientsThe Company recognizes revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration to which the Company expects to be entitled in exchange for such goods or services. Below is a description of the basic types of contracts from which the Company may earn revenue: Time and Materials Contracts Under the time and materials (“T&M”) arrangements, contract fees are based upon time and materials incurred. The contracts may be structured as basic time and materials, cost plus a margin or time and materials subject to a maximum contract value (the "cap value"). Due to the potential limitation of the cap value, the economic factors of the contracts subject to a cap value differ from the economic factors of basic T&M and cost plus contracts. The majority of the Company’s contracts are for consulting projects where it bills the client monthly at hourly billing rates. The hourly billing rates are determined by contractual terms. Under cost plus a margin contracts, the Company charges its clients for its costs, plus a fixed fee or rate. Under time and materials contracts with a cap value, the Company charges the clients for time and materials based upon the work performed however there is a cap or a not to exceed value. There are often instances that a contract is modified to extend the contract value past the cap. As the consideration is variable depending on the outcome of the contract renegotiation, the Company will estimate the total contract price in accordance with the variable consideration guidelines and will only include consideration that it expects to receive from the client. When the Company is reaching the cap value, the contract will be renegotiated, or Hill ceases work when the maximum contract value is reached. The Company will continue to work if it is probable that the contract will be extended. The Company will only include consideration or contract renegotiations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. If the Company continues to work and is uncertain that a contract change order will be processed, the variable consideration will be constrained to the cap until it is probable that the contract will be renegotiated. The Company is only entitled to consideration for the work it has performed, and the cap value is not a guaranteed contract value. Fixed Price Contracts Under fixed price contracts, the Company’s clients pay an agreed amount negotiated in advance for a specified scope of work. The Company is guaranteed to receive the consideration to the extent that the Company delivers under the contract. The Company recognizes revenue over a period of time on fixed price contracts using the input method based upon direct costs incurred to date, which are compared to total projected direct costs. Costs are the most relevant measure to determine the transfer of the service to the client. The Company assesses contracts quarterly and will recognize any expected future loss before actually incurring the loss. When the Company is expecting to reach the total value under the contract, the Company will begin to negotiate a change order. Change Orders and Claims Change orders are modifications of an original contract. Either the Company or its client may initiate change orders. They may include changes in specifications or design, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Management evaluates when a change order is probable based upon its experience in negotiating change orders, the client’s written approval of such changes or separate documentation of change order costs that are identifiable. Change orders may take time to be formally documented and terms of such change orders are agreed with the client before the work is performed. Sometimes circumstances require that work progresses before an agreement is reached with the client. If the Company is having difficulties in renegotiating the change order, the Company will stop work if possible, record all costs incurred to date, and determine, on a project by project basis, the appropriate final revenue recognition. Claims are amounts in excess of the agreed contract price that the Company seeks to collect from its clients or others for client-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes of unanticipated additional contract costs. Costs related to change orders and claims are recognized when they are incurred. The Company evaluates claims on an individual basis and recognizes revenue it believes is probable to collect. U.S. Federal Acquisition Regulations The Company has contracts with the U.S. government that contain provisions requiring compliance with the U.S. Federal Acquisition Regulations (“FAR”). These regulations are generally applicable to all of its federal government contracts and are partially or fully incorporated in many local and state agency contracts. They limit the recovery of certain specified indirect costs on contracts subject to the FAR. Cost-plus contracts covered by the FAR provide for upward or downward adjustments if actual recoverable costs differ from the estimate billed under forward pricing arrangements. Most of the Company's federal government contracts are subject to termination at the convenience of the federal government. Contracts typically provide for reimbursement of costs incurred and payment of fees earned through the date of such termination. Federal government contracts that are subject to the FAR and that are required by state and local governmental agencies to be audited are performed, for the most part, by the Defense Contract Audit Agency (“DCAA”). The DCAA audits the Company’s overhead rates, cost proposals, incurred government contract costs and internal control systems. During the course of its audits, the DCAA may question incurred costs if it believes the Company has accounted for such costs in a manner inconsistent with the requirements of the FAR or Cost Accounting Standards and recommend that its U.S. government corporate administrative contracting officer disallow such costs. Historically, the Company has not incurred significant disallowed costs because of such audits. However, the Company can provide no assurance that the DCAA audits will not result in material disallowances of incurred costs in the future. Disaggregation of Revenues The Company has one operating segment, the Project Management Group, which reflects how the Company is being managed. Additional information related to the Company’s operating segment is provided in Note 17 - Segment and Related Information. The Project Management Group provides extensive construction and project management services to construction owners worldwide. The Company considered the type of client, type of contract and geography for disaggregation of revenue. The Company determined that disaggregating by (1) contract type; and (2) geography would provide the most meaningful information to understand the nature, amount, timing, and uncertainty of its revenues. The type of client does not influence the Company’s revenue generation. Ultimately, the Company is supplying the same services of program management, project management, construction management, project management oversight, troubled project turnaround, staff augmentation, project labor agreement consulting, commissioning, estimating and cost management, labor compliance services and facilities management services. The Company’s contracts are generally long term contracts that are either based upon time and materials incurred or provide for a fixed price. The contract type will determine the level of risk in the contract related to revenue recognition. For purposes of disaggregation of revenue, the contract types have been grouped into: (1) Fixed Price - which include fixed price projects; and, (2) T&M - which include T&M contracts, T&M with a cap and cost plus contracts. The geography of the contracts will depict the level of global economic factors in relation to revenue recognition. The components of the Company’s revenue by contract type and geographic region for the twelve months ended December 31, 2020 and 2019: Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Fixed Price T&M Total Percent of Total Revenue Fixed Price T&M Total Percent of Total Revenue Americas $ 21,964 $ 170,813 $ 192,777 52.4 % $ 26,664 ( 1) $ 173,478 $ 200,142 53.1 % Middle East/Asia/Pacific 16,242 76,397 92,639 25.1 % 31,923 73,004 104,927 27.9 % Europe 44,003 9,816 53,819 14.6 % 27,645 ( 2) 15,843 43,488 11.6 % Africa 4,159 25,130 29,289 7.9 % 1,492 26,388 27,880 7.4 % Total $ 86,368 $ 282,156 $ 368,524 100.0 % $ 87,724 $ 288,713 $ 376,437 100.0 % (1) Includes $1,122 of revenue, previously classified as T&M contracts. (2) Includes $4,109 of revenue, previously classified as T&M contracts. The Company recognizes revenue when it transfers promised goods or services to clients in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company exercises judgment in determining if the contractual criteria are met to determine if a contract with a client exists, specifically in the earlier stages of a project when a formally executed contract may not yet exist. The Company typically has one performance obligation under a contract to provide fully-integrated project management services, and, occasionally, a separate performance obligation to provide facilities management services. Performance obligations are delivered over time as the client receives the service. The consideration promised within a contract may include fixed amounts, variable amounts, or both. Variable consideration is included in the transaction price only to the extent it is probable, in the Company’s judgment, that a significant future reversal in the amount of cumulative revenue recognized under the contract will not occur. In estimating the transaction price for pending change orders, the Company considers all relevant facts, including documented correspondence with the client regarding acknowledgment and/or agreement with the modification, as well as historical experience with the client or similar contractual circumstances. The Company transfers control of its service over time and, therefore, satisfies a performance obligation and recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. The Company’s fixed price projects and T&M with a cap contracts, expected to exceed the cap value, generally use a cost-based input method to measure its progress towards complete satisfaction of the performance obligation as the Company believes this best depicts the transfer of control to the client. Under the cost-based measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Due to the nature of the work required to be performed under the Company’s performance obligations, estimating total revenue and cost at completion on its long term contracts is complex, subject to many variables and requires significant judgment. For basic and cost plus T&M contracts and T&M with a cap, not expected to exceed the cap, contracts, the Company recognizes revenue over time using the output method which measures progress toward complete satisfaction of the performance obligation based upon actual costs incurred, using the right to invoice practical expedient. Accounts Receivable Accounts receivable includes amounts billed and currently due from clients and amounts for work performed which have not been billed to date. The billed and unbilled amounts are stated at the net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of client creditworthiness, historical payment experience and the age of outstanding receivables. Contract Assets and Liabilities Contract assets include unbilled amounts typically resulting from performance under long-term contracts where the revenue recognized exceeds the amount billed to the client. Retainage receivable is included in contract assets. The current portion of retainage receivable is a contract asset, which prior to the adoption of ASC 606, had been classified within accounts receivable. The Company’s contract liabilities consist of advance payments and billings in excess of revenue recognized and are reported as deferred revenue in the consolidated balance sheets. The Company classifies billings in excess of revenue recognized as deferred revenue as current or non-current based on the timing of when revenue is expected to be recognized. The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s performance and client payments. The amount of revenue recognized during the twelve months ended December 31, 2020 and 2019 that was included in the deferred revenue balance at the beginning of the period was $9,955 and $14,156, respectively. Remaining Performance Obligations The remaining performance obligations represent the aggregate transaction price of executed contracts with clients for which work has partially been performed or not started as of the end of the reporting period. The Company’s remaining performance obligations include projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions. T&M contracts are excluded from the remaining performance obligation as these contracts are not fixed price contracts and the consideration expected under these contracts is variable as it is based upon hours and costs incurred in accordance with the variable consideration optional exemption. As of December 31, 2020 and 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $101,800 and $113,592, respectively. During the following 12 months, approximately 47% of the remaining performance obligations are expected to be recognized as revenue with the remaining balance recognized over 2 to 5 years. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of accounts receivable and accounts receivable - affiliates reflected in the Company's consolidated balance sheets, are as follows: December 31, Accounts Receivable 2020 2019 Billed (1) $ 113,021 $ 132,339 Unbilled (2) 37,960 30,026 $ 150,981 $ 162,365 Allowance for doubtful accounts (1)(3) (52,795) (58,473) Accounts Receivable, net $ 98,186 $ 103,892 Accounts Receivable - Affiliates Billed $ 15,560 $ 12,546 Unbilled (2) 8,380 6,888 $ 23,940 $ 19,434 Allowance for doubtful accounts (3) (655) (658) Accounts Receivable - Affiliates, net $ 23,285 $ 18,776 (1) Includes $33,242 and $32,864 related to amounts due from a client in Libya as of December 31, 2020 and 2019, respectively, which were both fully reserved for in the allowance for doubtful accounts. (2) Amount is net of unbilled reserves. (3) See Schedule II-Valuation and Qualifying Accounts for breakdown of allowance for doubtful accounts for amounts added/(recovered), net of charge-offs for amounts determined to be uncollectible, for the years ended December 31, 2020 and 2019. Unbilled receivables primarily represent revenue earned on contracts that the Company is contractually precluded from billing until predetermined future dates. The Company determines its allowance for doubtful accounts based on the aging of amounts that have been billed to-date, the client's history, credit, concentration and current economic changes. The allowance for doubtful accounts is reviewed, at a minimum, on a quarterly basis and adjustments are recorded as deemed necessary. During the year ended December 31, 2019 , the Company recovered amounts due from a client in Libya of $9,652. The client's accounts receivable balance had been reserved for in the Company's allowance for doubtful accounts in previous years, which were reversed as a result of the receipt of the payments. No additional amounts were recovered from the Libyan client during the year ended December 31, 2020. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets based on the type of property and equipment . Upon retirement or other disposition of these assets, the cost and related depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected in results of operations. Expenditures for maintenance, repairs and renewals of minor items are charged to expense as incurred. Major renewals and improvements are capitalized. The components of property and equipment are as follows: December 31, 2020 2019 Furniture and equipment $ 8,416 $ 10,608 Leasehold improvements 10,197 10,977 Automobiles 1,309 1,334 Computer equipment and software 28,069 29,285 47,991 52,204 Less accumulated depreciation and amortization (38,548) (40,309) Property and equipment, net $ 9,443 $ 11,895 The Company's depreciation expense for the related balances were recorded as follows to the Company's consolidated statements of operations: Years Ended December 31, 2020 2019 Total depreciation expense $ 3,959 $ 2,810 Portion charged to direct expenses $ 397 $ 856 Portion charged to selling, general and administrative expense $ 3,562 $ 1,954 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table represents acquired intangible assets as a result of the Company's acquisition history and the client contracts that were attained at the time of the acquisition: December 31, 2020 2019 Gross Accumulated Gross Accumulated Engineering license $ 2,100 $ — $ — $ — Client relationships 509 356 1,080 848 Total $ 2,609 $ 356 $ 1,080 $ 848 Intangible assets, net $ 2,253 $ 232 During the year ended December 31, 2020, the Company acquired a Grandfathered Engineering Corporation license ("engineering license"), which was determined to have an indefinite useful life. As such, no amortization expense was recorded during the year ended December 31, 2020. The Company's client relationships intangible assets are amortized over the estimated life of ten years. Amortization expense related to these intangible assets of $79 and $1,014 for years ended December 31, 2020 and 2019, respectively. The twelve months ended December 31, 2019 included an impairment loss of $563 and was reflected in selling, general and administrative expenses on the Company's consolidated statements of operations. This client relationship intangible asset related to the Company's 2015 acquisition of one of its current subsidiaries, IMS Proje Yonetimi ve Danismanlik A.S. ("IMS"), which is based out of the Company's office in Turkey. The Company's consolidated balance sheets included an intangible asset related to IMS for client relationships prior to the impairment. In addition to the decline in the intangible asset's carrying value as a result of the Company's exposure to foreign exchange losses, the Company assessed that the client relationships that were in-place at the time of the intangible asset's initial fair value measurement no longer had any value at December 31, 2019. The Company did not incur any impairment losses during the year ended December 31, 2020. The following table presents the estimated amortization expense based on our remaining intangible assets for the next five years: Estimated Amortization Years Ending December 31, Expense 2021 $ 51 2022 51 2023 51 2024 — 2025 — |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table summarizes the changes in the carrying value of goodwill: Balance, December 31, 2018 $ 48,869 Translation adjustments (1) (845) Balance, December 31, 2019 48,024 Translation adjustments (1) (1,627) Balance, December 31, 2020 $ 46,397 (1) The translation adjustments are calculated based on the foreign currency exchange rates as of December 31, 2020 and 2019. During the three months ended March 31, 2020 the Company determined that the significant decline in its market capitalization as a result of the COVID-19 pandemic indicated that an impairment loss may have been incurred. The Company bypassed the qualitative assessment and proceeded directly to performing the quantitative goodwill impairment test. The quantitative goodwill impairment test concluded that the fair value of the Company (reporting unit) exceeded its carrying amount at that time, and therefore, goodwill was not considered impaired. The Company performed its annual impairment test effective July 1, 2020 and noted no impairment. Based on the valuation as of July 1, 2020, the fair value of the Company exceeded its carrying value. The Company also determined that no impairment existed at December 31, 2020 and December 31, 2019. In the future, the Company will continue to perform the annual test during its third quarter unless events or circumstances indicate an impairment may have occurred before that time. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital. The Company’s changes in estimates and assumptions, including decreases in stock price and market capitalization, could materially affect the determination of fair value and/or conclusions on goodwill impairment. As a result of recent events, including market volatility and the impact on the global economy, it is as least reasonably possible that changes in one or more of those assumptions could result in impairment of our goodwill in future periods. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses The table below reflects the Company's breakdown of the amounts in accounts payable and other accrued expenses by cost category as of the periods presented below: December 31, 2020 2019 Accounts payable $ 20,953 $ 22,102 Accrued payroll and related expenses 26,691 24,718 Accrued subcontractor fees 8,711 9,405 Accrued agency fees (1) 4,239 4,395 Accrued legal and professional fees 2,894 2,169 Other accrued expenses 4,309 2,383 $ 67,797 $ 65,172 (1) $4,156 in accrued agency fees at December 31, 2019 that were previously included in accrued payroll and related expenses are now reflected in accrued agency fees. |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt The table below reflects the Company's notes payable and long-term debt, which includes credit facilities: Interest Rate (1) Balance Outstanding as of Loan Maturity Interest Rate Type December 31, December 31, December 31, December 31, Secured Credit Facilities Hill International, Inc. - Société Générale 2017 Term Loan Facility 06/20/2023 Variable 7.67% 7.92% $ 28,950 $ 29,250 Hill International, Inc. - Société Générale Domestic Revolving Credit Facility (2) 05/04/2022 Variable 5.50% 6.27% 14,400 9,400 Hill International N.V. - Société Générale International Revolving Credit Facility (3)(6) 05/04/2022 Variable 4.11% 4.16% 4,035 2,302 Unsecured Credit Facilities Hill International, Inc. - First Abu Dhabi Bank PJSC Overdraft Credit Facility (4) 04/18/2021 Variable 5.65% 5.81% — 593 Hill International Brasil S.A. - Revolving Credit Facility (5) 06/12/2020 Fixed 3.07% 3.24% — 498 Unsecured Notes Payable and Long-Term Debt Hill International Spain SA-Bankia S.A. & Bankinter S.A. (6) 12/31/2021 Fixed 2.21% 2.21% 581 1,054 Philadelphia Industrial Development Corporation Loan 04/01/2027 Fixed 2.79% 2.79% 421 486 Hill International Spain S.A.-Bankinter S.A.2020 Term Loan ( 6)(7) 05/04/2024 Variable 2.23% N/A 357 — Hill International Spain S.A.-Banco Santander, S.A. Term Loan (6)(7) 05/30/2025 Fixed 3.91% N/A 367 — Hill International Spain S.A.-BBVA, S.A. P.P. Term Loan (6)(7) 06/19/2025 Variable 2.28% N/A 367 — Hill International Spain S.A.-Bankia, S.A. 2020 Term Loan (6)(7) 06/05/2025 Variable 2.54% N/A 303 — Total notes payable and long-term debt, gross 49,781 43,583 Less: unamortized discount and deferred financing costs related to Société Générale 2017 Term Loan Facility (500) (641) Notes payable and long-term debt $ 49,281 $ 42,942 Current portion of notes payable 1,171 1,972 Current portion of unamortized debt discount and deferred financing costs (184) (180) Current maturities of notes payable and long-term debt $ 987 $ 1,792 Notes payable and long-term debt, net of current maturities 48,294 41,150 Footnotes to the Notes Payable and Long-Term Debt Table Above: (1) Interest rates for variable interest rate debt are reflected on a weighted average basis through December 31, 2020 and 2019 since the loan origination or modification date. (2) At December 31, 2020 and 2019, the Company had $6,605 and $6,548 of outstanding letters of credit, respectively, in addition to the balances outstanding above, which resulted in $7,495 and $9,052 of available borrowing capacity under the Domestic Revolving Credit Facility, respectively. The amounts available were based on the maximum borrowing capacity of $28,500 and $25,000 as of December 31, 2020 and 2019, respectively. See 'Secured Credit Facilities' section below for further information. (3) As of December 31, 2020 and 2019, the Company had $2,189 and $2,232 of outstanding letters of credit, respectively, in addition to the balances outstanding above, which resulted in $1,085 and $3,145 of available borrowing capacity under the International Revolving Credit Facility, respectively. The amounts available were based on the Company's borrowing capacity of $7,309 and $7,679 as of December 31, 2020 and 2019, respectively. See ''Secured Credit Facilities' section below for further information. (4) FAB overdraft credit facility lender was formerly known as National Bank of Abu Dhabi. There is no stated maturity date, however, the loan is subject to annual review in April of each year, or at any other time as determined by FAB. Therefore, the amount outstanding is reflected within the current maturities of notes payable and long-term debt. Balances outstanding are reflected in U.S. dollars based on the conversion rates from AED as of December 31, 2020 and 2019. The Company had $3,131 and $2,538 of availability under the credit facility as of December 31, 2020 and 2019, respectively. (5) See Note 18 - Deconsolidation of Controlling Interest in Subsidiaries related to the bankruptcy and liquidation of Hill International Brasil S.A. (the "borrower"), which resulted in the deconsolidation of the borrower from the Company's consolidated financial statements. This unsecured revolving credit facility was subject to automatic renewals on a monthly basis. Effective with the November 2019 renewal of the unsecured revolving credit facility, the interest rate was reduced by the credit facility lender from 3.30% to 2.80%. The Company had no availability under the unsecured credit facility as of December 31, 2019. The amounts outstanding are based on conversion rates from Brazilian Real as of December 31, 2019. (6) Balances outstanding are reflected in U.S. dollars based on the conversion rates from Euros as of December 31, 2020 and 2019, accordingly. (7) Includes loan agreements entered into between April and June 2020, where the respective loan agreements require interest-only monthly payments during grace periods that last from six months or one year from the date of the agreements. The variable interest loans are subject to either semi-annual or annual review by the respective lenders thereof and the respective interest rates in respect thereof are determined based on the European Inter-Bank Offered Rate, or “EURIBOR,” for the relevant interest period (or at a substitute rate to be determined to the extent EURIBOR is not available), plus a margin, as set by the respective lender. Secured Credit Facilities On May 5, 2017 the Company entered into a credit agreement with Société Générale (the “Agent”) and other U.S. Loan Parties (the “U.S. Lenders”) consisting of (1) a $30,000 term loan (the "2017 Term Loan Facility"); (2) a $25,000 U.S. dollar-denominated revolving credit facility (the “Domestic Revolving Credit Facility”, together with the 2017 Term Loan Facility, the “U.S. Credit Facilities”); and (3) a credit agreement with the Agent (the “International Lender”) providing a €9,156 ($10,000 at closing) revolving credit facility (the “International Revolving Credit Facility” and together with the Domestic Revolving Credit Facility, the “Revolving Credit Facilities” and, together with the U.S. Credit Facilities, the “Secured Credit Facilities”) which is available to Hill International N.V. The Domestic Revolving Credit Facility and the International Revolving Credit Facility include sub-limits for letters of credit amounting to $20,000 and €8,000 ($9,130 at closing), respectively. On April 1, 2020, the Company amended its Secured Credit Facilities, which increased the credit commitment with one of the U.S. Lenders under the Domestic Revolving Credit Facility by $3,500 from $25,000 to $28,500 and simultaneously decreased the credit commitment with the International Lender under the International Revolving Credit Facility by €3,179 (approximately $3,500 at closing) from €9,156 (approximately $10,000) to €5,977 (approximately $6,536 at closing). The Secured Credit Facilities contain customary default provisions, representations and warranties, and affirmative and negative covenants, and require the Company to comply with certain financial and reporting covenants. The financial covenant is comprised of a maximum Consolidated Net Leverage Ratio of 3.00 to 1.00 for any fiscal quarter ending on or subsequent to March 31, 2017 for the trailing twelve months then-ended. The Consolidated Net Leverage Ratio is the ratio of (a) consolidated total debt (minus unrestricted cash and cash equivalents) to consolidated earnings before interest, taxes, depreciation, amortization, share-based compensation and other non-cash charges, including bad debt expense, certain one-time litigation and transaction related expenses, and restructuring charges for the trailing twelve months. In the event of a default, the U.S. Lender and the International Lender may increase the interest rates by 2%. The Company was in compliance with this financial covenant calculation as of December 31, 2020. The U.S. Credit Facilities are guaranteed by certain U.S. subsidiaries of the Company, and the International Revolver is guaranteed by the Company and certain of the Company’s U.S. and non-U.S. subsidiaries. 2017 Term Loan Facility The Company has the right to prepay the 2017 Term Loan Facility in full or in part at any time without premium or penalty (except customary breakage costs). The Company is required to make certain mandatory prepayments, without premium or penalty (except customary breakage costs), including (i) net proceeds of any issuance or incurrence of indebtedness by the Company after the closing, (ii) with net proceeds from certain asset sales outside the ordinary course of business, and (iii) with 50.00% of the excess cash flow for each fiscal year of the Company commencing with the first full fiscal year ending after closing (which percentage would be reduced to 25.00% if the Consolidated Net Leverage Ratio is equal to or less than 2.0 to 1.00). The 2017 Term Loan Facility (along with interest thereon) is generally secured by a first-priority security interest in substantially all assets of the Company and certain of the Company’s U.S. subsidiaries other than accounts receivable and cash proceeds thereof, as to which the 2017 Term Loan Facility (and the interest thereon) is secured by a second-priority security interest. Revolving Credit Facilities The Revolving Credit Facilities require payment of interest only during the term and may be repaid in whole or in part at any time, without premium or penalty, subject to certain customary limitations, and will be available to be re-borrowed from time to time through the maturity date. The interest rate on borrowings under the Domestic Revolving Credit Facility are, at the Company’s option, either the LIBOR rate for the relevant interest period, plus 3.75%, per annum or the Base Rate, plus 2.75%, per annum. The interest rate on borrowings under the International Revolving Credit Facility will be the European Inter-Bank Offered Rate, or “EURIBOR,” for the relevant interest period (or at a substitute rate to be determined to the extent EURIBOR is not available) plus 4.50% per annum. Commitment fees are paid quarterly and are calculated at 0.50% per annum based on the daily unused portion of the Domestic Revolving Credit Facility and at 0.75% per annum based on the daily unused portion of the International Revolving Credit Facility. The unamortized debt issuance costs of $755 and $1,317 are included in prepaid expenses and other current assets and other assets in the Company's consolidated balance sheets at December 31, 2020 and December 31, 2019, respectively. Generally, the obligations of the Company under the Domestic Revolving Credit Facility are secured by a first-priority security interest in the Eligible Domestic Receivables, cash proceeds and bank accounts of the Company and certain of the Company’s U.S. subsidiaries, and a second-priority security interest in substantially all other assets of the Company and such subsidiaries. The obligations of the Subsidiary under the International Revolving Credit Facility are generally secured by a first-priority security interest in substantially all accounts receivable and cash proceeds thereof, certain bank accounts of the Subsidiary and certain of the Company’s non-U.S. subsidiaries, and a second-priority security interest in substantially all other assets of the Company and certain of the Company’s U.S. and non-U.S. subsidiaries. The amounts available under the Domestic Revolving Credit Facility is subject to a borrowing base that is equal to 85.0% of the difference between (x) the aggregate amount of Eligible Domestic Receivables as of the immediately preceding calendar month and (y) the Dilution Reserve (the "Reserve"), which is equal to 1.0% of (x), not to exceed the $25,000 maximum capacity. The Reserve may be adjusted from time to time based on the most recently delivered collateral audit performed by the Agent and such percentage shall be in effect for the next succeeding twelve months and thereafter under the percentage is reset, however, the Reserve may not be reset more frequently than once a year. The amounts under the International Revolving Credit Facility is also subject to a borrowing base equal to (i) 85.0% of the aggregate amount of the Eligible International Receivables as of the last day of the fiscal quarter, plus 10.0% of the aggregate amount of the Eligible International Receivables as of the last day of the fiscal quarter. At December 31, 2020, contractually scheduled maturities of current and long-term debt, net of the amortization of the deferred financing costs related to the 2017 Term Loan Facility, were as follows: Years Ending December 31, Total Scheduled Maturities (1) 2021 $ 955 2022 18,958 2023 28,701 2024 380 2025 199 Thereafter 88 Total $ 49,281 (1) Amounts are estimated based on the foreign currency exchange rates as of December 31, 2020, where applicable. Other Financing Arrangements On May 1, 2020, subsequent to the maturity of the Company's previous commercial premium financing arrangement in April 30, 2020 with AFCO Premium Credit LLC ("AFCO"), the Company entered into a new financing agreement for the renewal of its corporate insurance policies with AFCO for $3,391. The terms of the arrangement include a $509 down payment, followed by monthly payments to be made over an ten month period at a 3.04% interest rate through March 31, 2021. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company provides for equity-based incentives under its 2017 Equity Compensation Plan (the "2017 Plan") to eligible participants under the 2017 Plan, which includes employees, non-employee directors, officers, advisors, consultants or other personnel of the Company (the "Participants"). The 2017 Plan covers 4,250 shares of the Company's common stock and may be awarded to Participants in the form of the Company's common stock, stock options, including stock appreciation rights, restricted stock, deferred stock units ("DSU"), restricted stock units ("RSU"), dividend equivalents rights and other forms of equity-based awards. A portion of the stock options or other equity units outstanding during the year ended December 31, 2020 may include those issued under the Company's previous equity compensation plans (the 2006 Employee Stock Purchase Plan and 2009 Non-Employee Director Stock Grant Plan). Future grants are no longer available under these plans. The Company records share-based compensation expense based on the fair value of the equity award grants, as described further below. Share-based compensation expense is included in selling, general and administrative expenses in the Company's consolidated statements of operation. The following table summarizes the total share-based compensation expense as follows: Years Ended December 31, 2020 2019 Restricted stock units $ 975 $ 472 Deferred stock units 622 664 Stock options 366 434 Common stock (1) — 916 Common stock issued under the 2008 Employee Stock Purchase Plan 43 28 Total $ 2,006 $ 2,514 (1) The year ended December 31, 2019 included common stock issued for the Company's Profit Improvement Plan. The unrecognized costs related to these equity units, excluding employee stock options (summarized separately below) was $2,498 and $1,183, which are expected to be recognized over a weighted-average period of 1.6 and 2.1 years at December 31, 2020 and 2019, respectively. The following table summarizes the activity related to the equity units, excluding employee stock options (summarized separately below), issued by the Company for the years ended December 31, 2020 and 2019: Number of RSU's RSU Weighted Number of DSU's DSU Weighted Unvested, December 31, 2018 — $ — 20 $ 3.05 Outstanding, Granted 485 3.22 254 2.74 Forfeited (21) 3.23 — — Vested — — (240) 2.73 Unvested, December 31, 2019 464 3.22 34 3.11 Granted 444 3.28 343 1.69 Forfeited (51) 3.26 — — Vested (167) 3.23 (356) 1.74 Unvested, December 31, 2020 690 $ 3.26 21 $ 3.10 RSU's RSU's issued entitle each Participant to receive one unit of common stock upon vesting. RSU's awarded by the Company may be subject to vesting conditions that are contingent upon time and performance, depending on the terms of the RSU award. Time-Vested RSU's During the twelve months ended December 31, 2020 and 2019, the Company granted certain key employees and executive officers RSU's under the 2017 Plans that will vest and convert to common stock annually over a three-year period on the anniversary date of the grant date, contingent upon their employment with the Company at each vesting date. Any unvested time-based RSU's will be forfeited if the Participant is no longer employed by the Company at any vesting date over the three-year term and the related expense will be adjusted for amounts related to the unvested RSU's. The value of these RSU awards was determined based on the Company's closing stock price at the grant date and is being recorded on a straight-line basis over the three-year term. Performance-Vested RSU's For RSU awards contingent upon performance conditions, the Company will assess if the pre-defined performance condition(s) is achievable based on the terms within each RSU award agreement. If achievable, the Company may also be required to estimate the number of RSU's subject to vest if different levels of the performance conditions are specified within the award agreement. The fair value of the RSU award is based on the Company closing stock price on the date of the grant, if specified within the award agreement. If the RSU grant value is indeterminable at the time of the grant, the Company will use the Black-Scholes option-pricing model to estimate the fair value of the award (additional information related to the Black-Scholes option-pricing model is detailed below under '2006 Employee Stock Option Plan'). The Company will continue to assess the fair value of the RSU award periodically until final determination. During the twelve months ended December 31, 2020 and 2019, the Company granted certain key employees and executive officers performance-based RSU's, where vesting is contingent upon the Company's achievement of an earnings-based performance target for at least one of the years included during the three-year term. The number of RSU's that could vest range from 50.0% to 200.0% of the number RSU's included in the grant. Common stock will be issued for each vested RSU on the third anniversary of the grant date. Any unvested RSU's are subject to forfeiture if the Participant is no longer employed by the Company prior to the vesting date in which the performance target is met. The Participant is still entitled to the vested RSU's if they separate from the Company before the three-year anniversary grant date. The fair value of the grants is based on the closing price of the Company's stock at the grant date. As of December 31, 2020, the target for the initial year during the three-year term had not been met and, accordingly, the Company did not record any share-based compensation expense for these RSU's. DSU's DSU's issued entitle the Participant to receive one share of the Company's common stock for each vested DSU upon separation from the Company. The fair value of these awards is measured based on the number of DSU's awarded in the terms of the award agreement and the closing price of the DSU grant date. The Company recognizes share-based compensation on a straight-line basis over the term specified in the DSU agreement. Any unvested DSU's will be forfeited upon termination of employment or services from the Company prior to the vesting date. Share-based compensation expense is adjusted accordingly based on the forfeiture terms that are stipulated in the DSU agreement. DSU's awards that have been granted to the Hill's executive officers and other key employees are time-vesting. The DSU's vest over a three-year term at each anniversary of the DSU grant date at 33.3% per annum. The Company will adjust the share-based compensation expense for any forfeited DSU's if the Participant leaves prior to the last installment of the vesting period. The Company's non-employee board of directors (the "Board") receive DSU grants for their equity-based portion of their annual service retainer at each annual stockholder meeting during their term of service. At their election, the Board can also receive additional DSU's in lieu of the cash portion of their annual retainer. DSU's issued to the Board are only subject to forfeiture if their departure from the Company is due to termination with cause and, otherwise, will vest. Therefore, the Company recognizes the full fair value of the award at the date of the grant. The fair value of the DSU's are determined based on the Company's stock closing price on the grant date and the number of DSU's awarded in the award agreement. Employee Stock Option The Black-Scholes option valuation model is used to estimate the fair value of the options. The following table summarizes the fair value of options granted during 2020 and 2019 and the assumptions used to estimate the fair value: December 31, 2020 2019 Average expected life (years) N/A * 3.50 Forfeiture range N/A * — % Weighted average forfeiture rate N/A * — % Dividends N/A * — % Volatility range N/A * 49.4 % Weighted average volatility N/A * 49.4 % Range of risk-free interest rates N/A * 1.9 % Weighted average risk-free interest rate N/A * 1.9 % Weighted average fair value at grant date N/A * $ 0.88 * There were no stock options granted during the year ended December 31, 2020. The expected term of the options is management's estimates based on the Company's option exercise history. Expected volatility was calculated using the average historical volatility of the Company's stock price. The risk-free interest rate is based on U.S. Treasury yields for securities in effect at the time of grants with terms approximating the term of the grants. The assumptions used in the Black-Scholes option valuation model are highly subjective, particularly as to stock price volatility of the underlying stock, which can materially affect the resulting valuation. A summary of the Company’s stock option activity and related information for the years ended December 31, 2020 and 2019 is as follows (in thousands, except exercise price and remaining life data): Options Weighted Weighted Aggregate Outstanding, December 31, 2018 1,943 $ 4.36 Granted 500 3.13 Exercised — — Expired (564) 4.53 Forfeited — — Outstanding, December 31, 2019 1,879 3.98 Granted — — Exercised — — Expired (306) 3.79 Forfeited (10) 4.46 Outstanding, December 31, 2020 1,563 $ 4.01 2.40 $ 3,273 Exercisable, December 31, 2020 1,036 $ 4.01 1.96 $ 2,372 The aggregate intrinsic value represents the difference between the exercise prices and the closing stock price on December 31, 2020. At December 31, 2020, the weighted average exercise price of the outstanding options was $4.01 and the closing stock price was $1.92. The weighted average characteristics of outstanding stock options by exercise price at December 31, 2020 are as follows: Options Outstanding Options Exercisable Exercise Number Outstanding at December 31, 2020 Weighted Average Remaining Contractual Number Exercisable at December 31, 2020 Weighted Average Remaining Contractual $3.13 500 3.45 167 3.45 4.00 250 2.25 200 2.25 4.03 225 1.08 225 1.08 4.31 13 2.45 10 2.45 4.65 347 3.19 208 3.19 4.90 5 1.59 5 1.59 4.95 211 0.19 211 0.19 5.17 12 2.45 10 2.45 1,563 2.40 1,036 1.96 At December 31, 2020, total unrecognized compensation cost related to non-vested options was $527 which will be recognized over the remaining weighted-average service period of 2.40 years. 2008 Employee Stock Purchase Plan The Employee Stock Purchase Plan ("ESPP") covers 2,000 shares of the Company’s common stock. Eligible employees may purchase shares at 85% of the fair market value on the date of purchase. During the years ended December 31, 2020 and 2019, the Company received aggregate ESPP proceeds of $245 for 196 of the Company's shares and $161 for 77 of the Company's shares, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ EquityIn April 2020, the Company exercised its right to retain 261 common shares that were pledged as collateral under the terms of a secured promissory note payable to the Company. Upon the terms of the secured promissory note, the note holder agreed to relinquish these shares upon the maturity date. As a result, these shares have been transferred from common stock to treasury stock, as reflected on the Company's Statements of Stockholders' Equity. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates for the years ended December 31, 2020 and 2019 were (1636.2)% and (8.4)%, respectively. For the year ended December 31, 2020, the Company’s effective tax rate differs from the U.S. federal statutory rate primarily due to additional uncertain tax position accruals, as well as the inability to recognize any tax benefit for losses in certain jurisdictions, particularly Brazil. For the year ended December 31, 2019, the Company’s effective tax rate differs from the U.S. federal statutory rate primarily due to benefits recognized from provision to return adjustments and the reversal of an outstanding tax accrual related to the Claims Construction Group sale. This is partially offset by additional uncertain tax position accruals, as well as additional increases in the Company's valuation allowances. The components of (loss) earnings before income taxes on the Company's consolidated statements of operations by the United States and foreign jurisdictions were as follows: Years Ended December 31, 2020 2019 United States $ (1,839) $ (3,948) Foreign jurisdictions 1,403 17,093 $ (436) $ 13,145 Income tax expense (benefit), as reflected in the Company's consolidated statements of operations, consists of the following: Current Deferred Total Year ended December 31, 2020: U.S. federal $ — $ 26 $ 26 State and local 217 (15) 202 Foreign jurisdictions 6,100 806 6,906 $ 6,317 $ 817 $ 7,134 Year ended December 31, 2019: U.S. federal $ 65 $ 23 $ 88 State and local (27) (5) (32) Foreign jurisdictions (1,934) 769 (1,165) $ (1,896) $ 787 $ (1,109) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as The Tax Cuts and Jobs Act of 2017 (the “Act”). The Act makes broad and complex changes to the U.S. tax code and includes significant provisions impacting the Company's 2018 and 2019 effective tax rate. The changes include, but are not limited to, a reduction in the U.S. federal corporate tax rate from 35% to 21% effective for tax years beginning after December 31, 2017, a one-time deemed repatriation (“Transition Tax”) on earnings of certain foreign subsidiaries that were previously tax deferred, and the creation of new taxes that may apply on certain foreign sourced earnings. The Act subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. For the year ended December 31, 2020, there was no tax incurred as a result of the period inclusion. For the year ended December 31, 2019, there was an immaterial amount of tax incurred as a result of the period inclusion. On December 27, 2020, the Consolidated Appropriations Act 2021 (the “Appropriations Act”) was enacted in response to the COVID-19 pandemic. The Appropriations Act, among other things, temporarily extends certain expiring tax provisions through December 31, 2025. Additionally, the Appropriations Act enacts new provisions and extends certain provisions originated within the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted on March 27, 2020. The Company is currently evaluating the provisions of the Appropriations Act as well as the CARES Act, but at present time, does not expect that the CARES Act or the Appropriations Act will result in a material tax or cash benefit. Income tax expense (benefit) was $7,134 and $(1,109) for the twelve months ended December 31, 2020 and 2019, respectively. The following table summarizes the difference between the income tax expense/(benefit) at the United States statutory rate of 21.0% for both years ended December 31, 2020 and 2019 and the income tax expense at effective worldwide tax rates for the respective periods: Years Ended December 31, 2020 2019 Statutory federal income tax (benefit) $ (92) $ 2,760 Foreign tax expense 4,415 50 Change in the valuation allowance (766) 1,968 Net liability additions for uncertain tax positions 1,713 1,183 Excess compensation 129 — State and local income taxes, net of federal income tax benefit 202 (32) Stock options 122 94 Foreign intercompany loan adjustments 764 185 Prior period adjustments 499 (1,821) Global intangible low-taxed income — 369 Non-deductible loss on bond — (1,667) Reversal of Construction Claims Group liability — (4,056) Other 148 (142) Total $ 7,134 $ (1,109) The tax effect of temporary differences that give rise to deferred tax assets and deferred tax liabilities are as follows: December 31, 2020 2019 Deferred tax assets: Net operating loss carry forward - U.S. operations $ 9,442 $ 9,807 Net operating loss carry forward - foreign operations 6,673 10,295 Compensated absences 1,559 944 Foreign income taxes on currency translation 3,315 5,543 Share-based compensation 581 465 Allowance for doubtful accounts 2,840 3,440 Labor contingencies 6 261 Interest limitations 1,144 1,659 Foreign tax credit 115 292 Accrued expenses 1,369 1,164 Other 279 375 Total gross deferred tax assets 27,323 34,245 Valuation allowances (20,103) (28,821) Net deferred tax assets 7,220 5,424 Deferred tax liabilities: Intangible assets (1,627) (1,364) Depreciation (317) (86) Prepaid expenses (465) (434) Change in tax method (570) (284) Deferred income (1,753) 125 Total gross deferred tax liabilities (4,732) (2,043) Net deferred tax assets $ 2,488 $ 3,381 The deferred taxes have been reflected in the Company's consolidated balance sheets based on tax jurisdiction as follows: December 31, 2020 2019 Deferred tax asset $ 3,698 $ 3,800 Deferred tax liability (1,210) (419) Net deferred tax assets $ 2,488 $ 3,381 In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment. Management evaluates the need for valuation allowances on the deferred tax assets according to the provisions of ASC 740, Income Taxes . They consider both positive and negative evidence. In making this determination, management assesses all of the evidence available at the time including recent earnings, internally-prepared income projections, and historical financial performance. See Schedule II - Valuation and Qualifying Accounts for breakdown of valuation allowance for amounts added, net of deductions, for the years ended December 31, 2020 and 2019. During the year ended December 31, 2018, the Company generated net operating losses in the U.S., which, under the Act, now have an unlimited life. The Company recorded an additional valuation allowance to materially offset this loss, as the Company had determined that it was more likely than not that the they would not be able to utilize a significant portion of its United States deferred tax assets. The gross cumulative federal net operating loss as of December 31, 2020 and 2019 was $9,351 and $9,553, respectively, with no expiration. The cumulative state net operating losses at December 31, 2020 and 2019 were $115,291 and $113,945, which will begin to expire in 2025. At December 31, 2020 and 2019, there were approximately $32,014 and $46,630, respectively, of gross foreign net operating loss carry forwards. The majority of these net operating loss carry forwards have an unlimited carry forward period. It is anticipated that these losses will not be utilized due to continuing losses in these jurisdictions. Foreign valuation allowances of $8,541 and $16,073 were recorded at December 31, 2020 and 2019, respectively, primarily related to the foreign net operating loss carry forwards. The Company continues to evaluate its worldwide cash needs, and as of December 31, 2020, the Company has a partial reinvestment assertion on certain of its unremitted foreign earnings. Generally, the foreign earnings previously subject to the Transition Tax in the U.S. can be distributed without additional U.S. federal tax, however, any such repatriation of previously unremitted foreign earnings could incur withholding and other foreign taxes, if applicable, as well as certain U.S. state taxes when remitted in any given year. At December 31, 2020, the Company has made no provision for federal, state, withholding or other foreign taxes related to these earnings as these taxes are either not applicable or not material. Additionally, the Company's Netherlands subsidiary has a partial reinvestment assertion regarding certain unremitted foreign earnings as well. The Company has made no provision for foreign taxes related to these earnings because the Netherlands entity continues to qualify for the participation exemption whereby certain foreign earnings can be repatriated without any additional tax at December 31, 2020. The Company will recognize a tax benefit in the financial statements for an uncertain tax position only if the Company's assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes. The following table indicates the changes to the Company’s uncertain tax positions for the years ended December 31, 2020 and 2019, including interest and penalties: Years Ended December 31, 2020 2019 Balance, beginning of year $ 4,615 $ 2,988 Reductions based on tax positions related to prior years (162) (702) Reduction due to settlements with taxing authorities — (960) Additions based on tax positions related to prior years 1,875 3,289 Balance, end of year $ 6,328 $ 4,615 The Company files income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. The Company generally is no longer subject to U.S. or state examinations by tax authorities for taxable years prior to 2015. However, net operating losses utilized from prior years in subsequent years’ tax returns are subject to examination until three years after the filing of subsequent years’ tax returns. The statute of limitations expiration in foreign jurisdictions for corporate tax returns generally ranges between two and five years, depending on the jurisdiction. The Company’s policy is to record estimated interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2020 and 2019, the Company’s consolidated balance sheet reflects cumulative provisions for interest and penalties of $757 and $616, respectively, related to potential interest and penalties. The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of its provision for income taxes. As part of its assessment of potential adjustments to its tax returns, the Company increases its current tax liability to the extent an adjustment would result in a cash tax payment or decreases its deferred tax assets to the extent an adjustment would not result in a cash tax payment. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a revision become known. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General Litigation From time to time, the Company is a defendant or plaintiff in various legal proceedings that arise in the normal course of business. As such, the Company is required to assess the likelihood of any adverse outcomes to these proceedings as well as potential ranges of probable losses. A determination of the amount of the provision required for these commitments and contingencies, if any, which would be charged to earnings, is made after careful analysis of each proceeding. The provision may change in the future due to new developments or changes in circumstances. Changes in the provision could increase or decrease the Company’s earnings in the period the changes are made. It is the opinion of management, after consultation with legal counsel, that the ultimate resolution of these proceedings will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Knowles Limited (“Knowles”), a subsidiary of the Company, is a party to an arbitration proceeding instituted on July 8, 2014 in which Knowles claimed that it was entitled to payment for services rendered to Celtic Bioenergy Limited (“Celtic”). The arbitrator decided in favor of Knowles. The arbitrator’s award was appealed by Celtic to the U.K. High Court of Justice, Queen’s Bench Division, Technology and Construction Court (“Court”). On March 16, 2017, the Court (1) determined that certain relevant facts had been deliberately withheld from the arbitrator by an employee of Knowles and (2) remitted the challenged parts of the arbitrator’s award back to the arbitrator to consider the award in possession of the full facts. The Company is evaluating the impact of the judgment of the Court. In May 2019, Celtic issued a claim against Knowles for negligent application and a hearing was held in December 2019. The arbitration was concluded in August 2020 in Knowles' favor. Celtic has appealed the arbitrator's decision. Loss on Performance Bond On February 8, 2018, the Company received notice from the First Abu Dhabi Bank ("FAB", formerly known as the National Bank of Abu Dhabi) that the Public Authority of Housing Welfare of Kuwait submitted a claim for payment on a performance guarantee issued by the Company for approximately $7,938 for a project located in Kuwait. FAB subsequently issued, on behalf of the Company, a payment on February 15, 2018. The Company is taking legal action to recover the full Performance Guarantee amount. On September 20, 2018 the Kuwait First Instance Court dismissed the Company's case. As a result, the Company fully reserved the performance guarantee payment above in the first quarter of 2018. The Company filed an appeal before the Kuwait Court of Appeals seeking referral of the matter to a panel of experts for determination. On April 21, 2019, the Court of Appeals ruled to refer the matter to the Kuwait Experts Department. Hearings with the Kuwait Experts Department were held during July and September 2019. A final report was issued by the panel of experts in October 2019 for the held hearings on January 7, 2020 and February 4, 2020 and reserved the case for judgment to be issued. The Company filed a pleading before the Kuwait Cassation Court in August 2020 and is awaiting a decision. Off-Balance Sheet Arrangements The Company enters into agreements with banks for the banks to issue bonds and letters of guarantee to clients, potential clients and other third parties, mainly for the purposes as follows: (1) The Company has entered into contracts for the performance of construction management services that provide that the Company receive advance payment of some of the management fee from the client prior to commencement of the construction project. However, the clients require a guarantee of service performance in the form of an advance payment bond. These bonds are evidenced by Letters of Guarantee issued by the subsidiaries’ banks in favor of the clients. In some cases, these clients also require a parent company guarantee. The average term the Company entered into such arrangements was 2.1 years at December 31, 2020. (2) The Company may also enter into certain contracts that require a performance bond to be issued by a bank in favor of the client for a portion of the value of the contract. These bonds may be exercised by the client in instances where the Company fails to provide the contracted services. The weighted average term the Company entered into such arrangements was 1.1 years at December 31, 2020, which excludes performance bonds that contain open-ended expiration dates. (3) Certain clients may require bonds as part of the bidding process for new work. Bid bonds are provided to demonstrate the financial strength of the companies seeking the work and are usually outstanding for short periods. If the bid is rejected, the bond is canceled and if the bid is accepted, the Company may be required to provide a performance bond. The weighted average term of these arrangements was 0.3 years at December 31, 2020, which excludes bid bonds with open-ended expiration dates. The maximum potential future payment under these arrangements at December 31, 2020 and 2019 was $67,382 and $74,597, respectively, which primarily includes credit facility arrangements that are denominated in foreign currencies. These balances partially reduced the Company's available borrowing capacity on the Domestic and International Revolving Credit Facilities by a total of $8,794 and $8,780 at December 31, 2020 and 2019, respectively, as reflected in Note 10 - Notes Payable and Long-Term Debt. Cash held in restricted accounts as collateral for the issuance of performance and advance payment bonds, letters of credit and escrow at December 31, 2020 and 2019 was $7,184 and $9,067, respectively. Other The Company has identified a potential tax liability related to certain foreign subsidiaries’ failure to comply with laws and regulations of the jurisdictions, outside of their home country, in which their employees provided services. The Company has estimated the potential liability to be approximately $1,323 which is reflected in other liabilities in the consolidated balance sheet, $402 of which was expensed in selling, general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases, Operating [Abstract] | |
Leases | Leases The Company leases office space, equipment and vehicles throughout the world. Many of the Company's leases include one or more options to renew at the Company's sole discretion. The lease renewal option terms generally range from 1 month to 5 years for office leases. The determination of whether to include any renewal or early termination options is made by the Company at lease inception when establishing the term of the lease. On January 1, 2019, the Company adopted ASU-2016-2, Leases (Topic 842), which required the Company to recognize right-of use lease ("ROU") assets and lease liabilities on its consolidated balance sheet for all leases in excess of one year in duration. The lease liability represents the present value of the remaining lease payments, which only includes payments that are fixed and determinable at the time of commencement, over the lease term. The lease term may be adjusted for renewal or early termination options provided in the leases only if it is reasonably certain that the Company will exercise such options. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company elected to adopt the guidance using the modified retrospective method and, therefore, have not recast comparative periods presented in its unaudited consolidated financial statements. The Company elected the package of transition practical expedients for existing leases and therefore the Company has not reassessed the following: lease classification for existing leases, whether any existing contracts contained leases, if any initial direct costs were incurred and whether existing land easements should be accounted for as leases. The Company did not apply the hindsight practical expedient, accordingly, the Company did not use hindsight in its assessment of lease terms. As permitted under ASU 2016-2, the Company elected as accounting policy elections to not recognize ROU assets and related lease liabilities for leases with terms of twelve months or less and to not separate lease and non-lease components, and instead account for the non-lease components together with the lease components as a single lease component. Rent expense for leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date for rent payments that are determined to be fixed, or are determinable at the lease commencement date. Some of the Company's lease arrangements require periodic increases in the Company's base rent that may be subject to certain economic indexes, among other items. In addition, these leases may require the Company to pay property taxes, utilities and other costs related to several of its leased office facilities. Typically, these amounts for such payments cannot be determined at the lease commencement date, and are identified as variable lease payment, which are expensed as incurred. Total rent expense for the twelve months ended December 31, 2020 and 2019 included $2,374 and $2,138, respectively, that was associated with leases with an initial term of 12 months or less, in addition to variable costs the Company is responsible for paying on all leases. Rent expense for operating leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date. Rent expense of approximately $8,294 and $9,079 for the twelve months ended December 31, 2020 and 2019, respectively, is included in either selling, general and administrative expenses or direct expenses, as appropriate, in the consolidated statements of operations. During the three months ended June 30, 2020, as a result of the COVID-19 pandemic, the Company received rent concessions from certain lessors primarily in the form of rent payment deferrals, where rents that were originally scheduled to be paid to such lessors during the three months ended June 30, 2020, per the terms of the leases, were agreed to not become due and payable until 2021, with the option to pay the amounts deferred in monthly installments, plus interest. In April 2020, the FASB issued a Q&A in order to simplify how ASC-842 should be applied to rent concessions received as a result of the pandemic, and provided an optional practical expedient that permits an entity to make an election to not evaluate whether concessions granted by lessors related to COVID-19 are lease modifications, under certain conditions. Entities that make this election can then apply the lease modification guidance in ASC-842 or account for the concession as if it were contemplated as part of the existing contract. The Company elected to apply the practical expedient and not apply the lease modification guidance and has accordingly continued to recognize the rent expense as if no deferral had been provided. The Company recorded a payable for these amounts reflected in accounts payable and accrued expenses in the Company's consolidated balance sheets of $586 for such rent deferrals, which are required to be paid over monthly installments through December 2021. The Company subleases certain real estate to third parties (the "sublessee"). The sublease income recognized for the twelve months ended December 31, 2020 and 2019 was $1,338 and $569, respectively, and was recorded as a reduction to selling, general and administrative expenses in the Company's consolidated statements of operations. These subleases may require the sublessee to reimburse the Company if they are required to pay property taxes, utilities and other costs related to the leased office facility. These reimbursements are identified as variable lease payments since these amounts cannot be determined at the lease commencement date and are recognized as reduction in expense as incurred. The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2020: Years Ending December 31, Total Operating Lease Payments Total Financing Lease Payments 2021 $ 5,772 $ 75 2022 4,491 75 2023 3,679 75 2024 2,735 40 2025 1,963 — Thereafter 2,958 — Total minimum lease payments (1)(2) 21,598 265 Less amount representing imputed interest 3,260 9 Present value of lease obligations $ 18,338 $ 256 Weighted average remaining lease term (years) 4.63 3.54 Weighted average discount rate 7.0% 2.1% (1) Partially includes rent expense amounts payable in various foreign currencies and are based on the foreign currency exchange rate as of December 31, 2020, where applicable. (2) Includes lease amendments executed as of December 31, 2020, but not yet commenced. |
Leases | Leases The Company leases office space, equipment and vehicles throughout the world. Many of the Company's leases include one or more options to renew at the Company's sole discretion. The lease renewal option terms generally range from 1 month to 5 years for office leases. The determination of whether to include any renewal or early termination options is made by the Company at lease inception when establishing the term of the lease. On January 1, 2019, the Company adopted ASU-2016-2, Leases (Topic 842), which required the Company to recognize right-of use lease ("ROU") assets and lease liabilities on its consolidated balance sheet for all leases in excess of one year in duration. The lease liability represents the present value of the remaining lease payments, which only includes payments that are fixed and determinable at the time of commencement, over the lease term. The lease term may be adjusted for renewal or early termination options provided in the leases only if it is reasonably certain that the Company will exercise such options. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company elected to adopt the guidance using the modified retrospective method and, therefore, have not recast comparative periods presented in its unaudited consolidated financial statements. The Company elected the package of transition practical expedients for existing leases and therefore the Company has not reassessed the following: lease classification for existing leases, whether any existing contracts contained leases, if any initial direct costs were incurred and whether existing land easements should be accounted for as leases. The Company did not apply the hindsight practical expedient, accordingly, the Company did not use hindsight in its assessment of lease terms. As permitted under ASU 2016-2, the Company elected as accounting policy elections to not recognize ROU assets and related lease liabilities for leases with terms of twelve months or less and to not separate lease and non-lease components, and instead account for the non-lease components together with the lease components as a single lease component. Rent expense for leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date for rent payments that are determined to be fixed, or are determinable at the lease commencement date. Some of the Company's lease arrangements require periodic increases in the Company's base rent that may be subject to certain economic indexes, among other items. In addition, these leases may require the Company to pay property taxes, utilities and other costs related to several of its leased office facilities. Typically, these amounts for such payments cannot be determined at the lease commencement date, and are identified as variable lease payment, which are expensed as incurred. Total rent expense for the twelve months ended December 31, 2020 and 2019 included $2,374 and $2,138, respectively, that was associated with leases with an initial term of 12 months or less, in addition to variable costs the Company is responsible for paying on all leases. Rent expense for operating leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date. Rent expense of approximately $8,294 and $9,079 for the twelve months ended December 31, 2020 and 2019, respectively, is included in either selling, general and administrative expenses or direct expenses, as appropriate, in the consolidated statements of operations. During the three months ended June 30, 2020, as a result of the COVID-19 pandemic, the Company received rent concessions from certain lessors primarily in the form of rent payment deferrals, where rents that were originally scheduled to be paid to such lessors during the three months ended June 30, 2020, per the terms of the leases, were agreed to not become due and payable until 2021, with the option to pay the amounts deferred in monthly installments, plus interest. In April 2020, the FASB issued a Q&A in order to simplify how ASC-842 should be applied to rent concessions received as a result of the pandemic, and provided an optional practical expedient that permits an entity to make an election to not evaluate whether concessions granted by lessors related to COVID-19 are lease modifications, under certain conditions. Entities that make this election can then apply the lease modification guidance in ASC-842 or account for the concession as if it were contemplated as part of the existing contract. The Company elected to apply the practical expedient and not apply the lease modification guidance and has accordingly continued to recognize the rent expense as if no deferral had been provided. The Company recorded a payable for these amounts reflected in accounts payable and accrued expenses in the Company's consolidated balance sheets of $586 for such rent deferrals, which are required to be paid over monthly installments through December 2021. The Company subleases certain real estate to third parties (the "sublessee"). The sublease income recognized for the twelve months ended December 31, 2020 and 2019 was $1,338 and $569, respectively, and was recorded as a reduction to selling, general and administrative expenses in the Company's consolidated statements of operations. These subleases may require the sublessee to reimburse the Company if they are required to pay property taxes, utilities and other costs related to the leased office facility. These reimbursements are identified as variable lease payments since these amounts cannot be determined at the lease commencement date and are recognized as reduction in expense as incurred. The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2020: Years Ending December 31, Total Operating Lease Payments Total Financing Lease Payments 2021 $ 5,772 $ 75 2022 4,491 75 2023 3,679 75 2024 2,735 40 2025 1,963 — Thereafter 2,958 — Total minimum lease payments (1)(2) 21,598 265 Less amount representing imputed interest 3,260 9 Present value of lease obligations $ 18,338 $ 256 Weighted average remaining lease term (years) 4.63 3.54 Weighted average discount rate 7.0% 2.1% (1) Partially includes rent expense amounts payable in various foreign currencies and are based on the foreign currency exchange rate as of December 31, 2020, where applicable. (2) Includes lease amendments executed as of December 31, 2020, but not yet commenced. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans 401(k) Retirement Savings Plan The Company maintains a 401(k) Retirement Savings Plan (the “401(k) Plan”) for qualified employees. The terms of the 401(k) Plan define qualified employees as those over 21 years of age who have completed at least thirty days of service. Generally, the Company matched $0.50 on the dollar of employee contributions up to a maximum of 6.0% of the employee's salary. Beginning with the May 1, 2020 pay period, the Company suspended the Company match through December 31, 2020 as part of the Company's corporate cost reductions related to COVID-19 (see Note 2 - Liquidity). The Company resumed the match on January 1, 2021. For the years ended December 31, 2020 and 2019, the Company recognized expense of $706 and $2,151, respectively, which is included in selling, general and administrative expenses in the consolidated statements of operations. End of Service Benefits |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information The Company has one reporting segment, the Project Management Group, which reflects how the Company is managed. The Project Management Group provides construction and project management services to construction owners worldwide. Such services include program management, project management, construction management, project management oversight, troubled project turnaround, staff augmentation, project labor agreement consulting, commissioning, estimating and cost management, labor compliance services (collectively, "integrated project management") and facilities management services. The following tables present certain information for the Company's operations: Total Revenue by Geographic Region: 2020 2019 Americas $ 192,777 52.4 % $ 200,142 53.1 % Middle East/Asia/Pacific 92,639 25.1 % 104,927 27.9 % Europe 53,819 14.6 % 43,488 11.6 % Africa 29,289 7.9 % 27,880 7.4 % Total $ 368,524 100.0 % $ 376,437 100.0 % For the twelve months ended December 31, 2020 and 2019, total revenue for the United Arab Emirates amounted to $39,353 or 10.7%, and $37,904 or 10.1%, of the Company's total revenue, respectively. No other country except for the United States and the United Arab Emirates accounted for over 10% of total revenue. Operating Profit (Loss): 2020 2019 Americas $ 31,959 $ 27,834 Middle East/Asia/Pacific 9,287 13,782 Europe 5,558 4,955 Africa 5,401 11,235 Corporate (41,706) (39,260) Total $ 10,499 $ 18,546 Depreciation and Amortization Expense: 2020 2019 Project Management $ 1,385 $ 3,791 Corporate 2,653 33 Total $ 4,038 $ 3,824 Revenue By Client Type: 2020 2019 U.S. federal government $ 17,942 4.9 % $ 18,967 5.0 % U.S. state, regional and local governments 118,845 32.2 % 124,504 33.1 % Foreign governments 99,906 27.1 % 91,683 24.4 % Private sector 131,831 35.8 % 141,283 37.5 % Total $ 368,524 100.0 % $ 376,437 100.0 % Property, Plant and Equipment, Net by Geographic Location: December 31, 2020 2019 Americas $ 7,741 $ 10,401 Middle East/Asia/Pacific 917 882 Europe 544 473 Africa 241 139 Total $ 9,443 $ 11,895 |
Deconsolidation of Controlling
Deconsolidation of Controlling Interest in Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Deconsolidation of Controlling Interest in Subsidiaries | Deconsolidation of Controlling Interest in Subsidiaries On June 12, 2020, Hill International Brasil S.A ("Hill Brazil") filed for bankruptcy and liquidation with the Bankruptcy Court of Sao Paulo Brazil. Hill Brazil was a consolidated operating subsidiary of Hill International Brasil Participacoes LTDA ("Brazil Consolidated"). A trustee was appointed by the court on June 15, 2020 to oversee the settlement of liabilities and close the entity. The Company lost control of Hill Brazil on the date of the bankruptcy filing and, as a result, deconsolidated Hill Brazil at that time. At June 12, 2020, Hill Brazil's assets totaled $1,901, and consisted of Cash $9, Accounts receivable $1,380, Property, Plant & Equipment $295 and other assets $217. At June 12, 2020, Hill Brazil's liabilities totaled $3,538 and consisted of accounts payable and accrued expenses $1,800, debt $365, deferred revenue $132 and other liabilities $1,242. Therefore, Hill Brazil's liabilities exceeded assets by $1,638. The write-off of the investment in Hill Brazil by Brazil Consolidated resulted in a $1,201 loss. The write-off of the balance sheet and write-off of the investment in Hill Brazil resulted in a $437 gain on the deconsolidation before consideration of foreign currency adjustments and intercompany items. In conjunction with the liquidation of Hill Brazil, the Company's intercompany receivables from Hill Brazil totaling $116 were fully reserved and an intercompany payable of $1,180 to Hill Brazil from Brazil Consolidated was written off against the income/loss of the liquidation. Additionally, $5,565 of accumulated other comprehensive losses related to foreign currency adjustments was taken into expense. This resulted in a net loss of $4,064 related to the deconsolidation which was recorded on the consolidated statements of operations under other loss (income), net. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Hill International, Inc. and Subsidiaries Valuation and Qualifying Accounts (in thousands) (Allowance for Uncollectible Receivables) Balance at Recoveries of Previously Reserved Receivables Additions (Adjustments) to Allowance for Uncollectible Receivables Write-Off of Receviables Other Balance at Fiscal year ended December 31, 2020 $ 59,131 (1,152) (274) (4,905) 650 $ 53,450 Fiscal year ended December 31, 2019 $ 71,277 (18,143) 7,422 (1,813) 388 $ 59,131 (Valuation Allowance for Deferred Tax Asset) Balance at Beginning of Fiscal Year Additions (Recoveries) Charged (Credited) to Earnings Deductions and Other Adjustments Balance at End of Fiscal Year Fiscal year ended December 31, 2020 $ 28,821 1,801 (10,519) $ 20,103 Fiscal year ended December 31, 2019 $ 37,591 5,258 (14,028) $ 28,821 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Hill International, Inc. and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Reclassification | Reclassification Certain back-office expenses and foreign currency translation gains and losses that had previously been included in the individual regions in the operating profit/(loss) table presentation are currently being included within the corporate costs line item on the operating profit/(loss) tables herein. The related 2019 prior period operating profit (loss) by geographic region and corporate costs have been recast to reflect this change. This change only affects the presentation in the operating profit/(loss) tables and has no impact on total operating profit/(loss) reported. Foreign currency transaction gains and losses that, in previous periods, had been included in selling, general and administrative ("SG&A") expenses line item on the Consolidated Statements of Operations, are presented as a separate line item on the Consolidated Statements of Operations for the twelve months ended December 31, 2020. The related foreign currency transaction gains and losses for the twelve months ended December 31, 2019 have been reclassed to reflect this change. This change has no impact on the total operating profit/(loss) reported. Certain accrued agency fees that had previously been included in accrued payroll and related expenses in the components of accounts payable and accrued expenses table in Note 9 - Accounts Payable and Accrued Expenses are currently being included within the accrued agency fees line item. The related amounts at December 31, 2019 have been reclassed to reflect this change. Interest costs and (gains)/losses recognized with the Company's End of Service Benefit plan ("EOSB" plan) had previously been included in SG&A and are now presented in other (loss) income, net in the Company's Consolidated Statements of Operations for the twelve months ended December 31, 2020 and 2019 for $637 and $219, respectively. This change results in an increase on the total operating profit previously reported for the twelve months ended December 31, 2019, but has no impact on the total net income reported. |
Foreign Currency Translations and Transactions | Foreign Currency Translations and Transactions Assets and liabilities of all foreign operations are translated at year-end rates of exchange while revenues and expenses are translated at the average monthly exchange rates. Gains or losses resulting from translating foreign currency financial statements are accumulated in a separate component of stockholders’ equity titled accumulated other comprehensive income (loss) until the entity is sold or substantially liquidated. Gains or losses arising from foreign currency transactions (transactions denominated in a currency other than the entity’s local currency), including those resulting from intercompany transactions, are reflected in foreign currency exchange loss in the consolidated statements of operations. The impact of foreign exchange on long-term intercompany loans, for which repayment has not been scheduled or planned and permanent equity has been elected, are recorded in accumulated other comprehensive income (loss) on the Company's consolidated balance sheets. There were no such long-term intercompany loans as of December 31, 2020. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the revenue and expenses reported for the periods covered by the financial statements and certain amounts disclosed in the accompanying notes to the consolidated financial statements. Actual results could differ significantly from those estimates and assumptions. The estimates affecting the consolidated financial statements that are particularly significant include revenue calculations, goodwill impairment determination on recoverability of long-lived assets, income taxes, allowance for doubtful accounts, right-of-use assets, operating lease liabilities and commitments and contingencies. |
Fair Value Measurements | Fair Value Measurements The fair value of financial instruments, which primarily consists of cash and cash equivalents, accounts receivable and accounts payable, approximates carrying value due to the short-term nature of the instruments. The carrying value of a significant portion of our credit facilities approximates fair value as the interest rates are variable and approximates current market levels. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact, and the Company considers assumptions that market participants would use when pricing the asset or liability. Non-financial assets and liabilities, such as goodwill and long lived assets that are initially recorded at fair value, will be assessed for impairment, if deemed necessary. Additional information related to the Company's impairment assessment of these assets are included in paragraphs (k) Long-Lived Assets and (l) Goodwill below. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and investments in money market funds and investment grade securities held with financial institutions. The Company considers all highly liquid instruments purchased with a remaining maturity of three months or less at the time of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash primarily represents cash collateral required to be maintained in foreign bank accounts to serve as collateral for letters of credit, bonds or guarantees on certain projects. Generally, the cash will remain restricted until the respective project has been completed, which typically is greater than one year. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and accounts receivable. The Company maintains its cash accounts with high quality financial institutions. Although the Company believes that the financial institutions with which it does business will be able to fulfill their commitments, there is no assurance that those institutions will be able to continue to do so. The Company provides professional services, under contractual arrangements, to domestic and foreign governmental units, institutions and the private sector. To reduce credit risk, the Company performs ongoing credit evaluations of its clients and requires customary retainers where appropriate. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts is an estimate prepared by management based on identification of the collectability of specific accounts and the overall condition of the receivable portfolios. When evaluating the adequacy of the allowance for doubtful accounts, the Company specifically analyzes trade receivables, including retainage receivable, historical bad debts, client credits, client concentrations, current economic trends and changes in client payment terms. If the financial condition of clients were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Likewise, should the Company determine that it would be able to realize more of its receivables in the future than previously estimated, an adjustment to the allowance would increase earnings in the period such determination was made. The allowance for doubtful accounts is reviewed at a minimum on a quarterly basis and adjustments are recorded as deemed necessary. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is provided over the estimated useful lives of the assets as follows: Method Estimated Useful Life Furniture and equipment Straight-line 10 years Leasehold improvements Straight-line Shorter of estimated useful life or lease term Computer equipment and software Straight-line 3 to 5 years Automobiles Straight-line 5 years The Company capitalizes costs associated with internally developed and/or purchased software systems that have reached the application development stage and meet recoverability tests. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software, payroll and payroll-related expenses for employees who are directly associated with and devote time to internal-use software projects. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Costs for general and administrative, overhead, maintenance and training, as well as the cost of software that does not add functionality to existing systems, are expensed as incurred. Upon retirement or other disposition of these assets, the cost and related depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected in results of operations. Expenditures for maintenance, repairs and renewals of minor items are charged to expense as incurred. Major renewals and improvements are capitalized. |
Retainage Receivable | Retainage Receivable Retainage receivable represents balances billed but not paid by clients pursuant to retainage provisions in their contracts and will be due upon completion of specific tasks or the completion of the contract. |
Long-Lived Assets | Long-Lived Assets Acquired intangible assets consist of contract rights, client related intangibles and trade names arising from the Company’s acquisitions. Contract rights represent the fair value of contracts in progress and backlog of an acquired entity. For intangible assets purchased in a business combination, the estimated fair values of the assets are used to establish the cost basis. Valuation techniques consistent with the market approach, the income approach and the cost approach are used to measure fair value. These assets are amortized over their estimated lives which range from three The Company reviews long-lived assets to be held-and-used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset is less than its carrying amount, the asset is considered to be impaired. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flow discounted at a rate commensurate with the risks associated with the recovery of the asset. Assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. |
Goodwill | Goodwill Goodwill represents the excess of the consideration paid over the fair value of identifiable net assets acquired. Goodwill is not amortized, but instead is subject to impairment testing on an annual basis, and between annual tests whenever events or changes in circumstances indicate that the fair value may be below its carrying amount. The Company tests goodwill annually for impairment during the third quarter. To determine the fair value of our reporting unit, we use the discounted cash flow, the public company and the quoted price methods, weighting the results of each method. |
Investments | Investments The Company will, in the ordinary course of business, form joint ventures for specific projects. These joint ventures have historically required limited or no investment and simply provide a pass-through for the Company’s billings. Any distributions in excess of the Company’s billings are accounted for as income when received and are accounted for under the equity method of accounting. |
Deferred Financing Costs, Net | Deferred Financing Costs, Net Net deferred financing costs include debt discount and debt issuance costs associated with obtaining commitments for financing transactions. Deferred financing costs related to revolving-debt arrangements are reflected in prepaid expenses and other current assets and other assets in the consolidated balance sheets and are amortized on a straight-line basis over the term of the loan. Deferred financing costs related to any term debt that requires scheduled repayments are recorded as a direct deduction from the Company's notes payable and other long-term debt and are amortized over the term of the respective financing agreement using the effective interest method. The amortization of such costs are included in interest and related financing fees, net, on the accompanying consolidated statements of operations. Unamortized deferred financing costs are expensed if the associated debt is refinanced or repaid before the maturity. |
Deferred Revenue and Revenue Recognition | Deferred Revenue In certain instances, the Company may collect advance payments from clients for future services. These payments are reflected as deferred revenue in the Company’s consolidated balance sheets. As the services are performed, the Company reduces the balance and recognizes revenue. The Company generates revenue primarily from providing professional services to its clients under various types of contracts. In providing these services, the Company may incur reimbursable expenses, which consist principally of amounts paid to subcontractors and other third parties and travel and other job related expenses that are contractually reimbursable from clients. The Company includes reimbursable expenses in computing and reporting its total revenue as long as the Company remains responsible to the client for the fulfillment of the contract and for the overall acceptability of all services provided. If estimated total costs on any contract project a loss, the Company charges the entire estimated loss to operations in the period the loss becomes known. The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, incentive awards, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss are known and the loss can be reasonably estimated. These loss projects are re-assessed for each subsequent reporting period until the project is complete. Such revisions could occur at any time and the effects may be material. See, "Note 4 - Revenue from Contracts with Clients" for more detail regarding how the Company recognizes revenue under each of its contractual arrangements. |
Deferred Rent | Deferred Rent The Company adopted Accounting Standards Update ("ASU") 2016-2, Leases (Topic 842) on January 1, 2019, which required the Company to recognize lease assets and operating lease liabilities on the Company's consolidated balance sheet for all leases with estimated lease terms of more than one year. See further detail in Note 15 - Leases. Leases with estimated lease terms of less than one year or arrangements where the Company subleases real estate to a third party were not accounted for under ASU 2016-2. Such leases remained accounted for under the previous Accounting Standards Codification ("ASC") 840, Leases. The lease expense is recognized on a straight-line basis over the lease term and any differences between the rent paid under the terms of the lease and the straight-line rent expense is recorded as a deferred rent liability. At December 31, 2020 and 2019, deferred rent was $2, and is included in other current liabilities and other liabilities in the consolidated balance sheets. |
Income Taxes | Income Taxes The Company estimates income taxes in each of the jurisdictions in which it operates. This process involves estimating its actual current tax exposure together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the Company’s consolidated balance sheets. The Company assesses the likelihood that the deferred tax assets will be recovered from future taxable income and to the extent it believes recovery is not likely, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance in a period, it must include an expense within the tax provision in the consolidated statements of earnings. The Company has recorded a valuation allowance to reduce the deferred tax asset to an amount that is “more likely than not” (i.e., a likelihood greater than 50 percent) to be realized in future years. If the Company determines in the future that it is more likely than not to be allowed by the tax jurisdiction based solely on the technical merits of the position, that the deferred tax assets subject to the valuation allowance will be realized, then the previously provided valuation allowance will be adjusted. The Company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is more likely than not to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. |
Share-Based Compensation | Share-Based Compensation For compensation issued under equity-classified awards, the Company uses the Black-Scholes option-pricing model to measure the estimated fair value of any share-based compensation award when the fair value of the award is not readily determinable, which generally applies to options issued to purchase the Company’s common stock, but may also include restricted stock units, deferred stock units and common stock if the fair value cannot be determined. Option-pricing valuation models require the input of highly subjective assumptions. Once the fair value of the award is determined, the value is recognized as share-based compensation expense and is recognized over the service period on a straight-line basis or when the conditions of the award have been met. Forfeitures reduce compensation expense in the period they occur. The Company’s policy is to primarily use newly issued shares to satisfy the exercise of stock options. Any liability-classified awards are recorded at fair value based on the closing stock price of the Company's common stock and are re-measured each period until settlement of the award. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are reflected in SG&A expenses in the Company's consolidated statements of operations. |
Income (loss) per Share ("EPS") | Income (loss) per Share ("EPS") Basic income (loss) per common share has been computed using the weighted-average number of shares of common stock outstanding during the year. Diluted income (loss) per common share includes the incremental shares issuable upon the assumed exercise of stock options using the treasury stock method and any other unvested share-based compensation awards, if dilutive. |
New Accounting Pronouncements | New Accounting Pronouncements Changes to U.S. GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs and, based on its assessment, determined that any recently issued or proposed ASUs not listed below are either not applicable to the Company or adoption will have minimal impact on its consolidated financial statements. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued ASU 2017-4, Intangibles - Goodwill and Other (Topic 350), which removes step 2 from the goodwill impairment test. As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units’ fair value. The guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for annual or interim goodwill impairment tests performed on testing dates after January 1, 2017, and the prospective transition method should be applied. The Company adopted this guidance on January 1, 2020 and it did not materially impact its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period, for all entities. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted this guidance on January 1, 2020 on a prospective basis and will begin to capitalize certain implementation costs that may have been previously expensed as incurred. There was no impact on the Company's consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities ("VIE") . The amendments in this ASU for determining whether a decision-making fee is a variable interest require reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required by GAAP). These amendments will create alignment between determining whether a decision-making fee is a variable interest and determining whether a reporting entity within a related party group is the primary beneficiary of a VIE. The standard is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019 for public companies. Early adoption is permitted. The Company adopted this guidance in January 1, 2020. There was no impact on the Company's consolidated financial statements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . This ASU provides guidance on whether certain transactions between collaborative arrangement participants should be accounted for with revenue under Topic 606, specifically when the collaborative arrangement participant is a customer in the context of a unit-of-account. It provides more comparability in the presentation of revenues for certain transactions between collaborative arrangement participants, including adding unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606. The standard is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019 for public companies. Early adoption is permitted. The Company adopted this guidance in January 1, 2020. There was no impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326) - Credit Losses: Measurement of Credit Losses on Financial Instruments , which provides guidance regarding the measurement of credit losses on financial instruments. The new guidance replaces the incurred loss impairment methodology in the current guidance with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. This ASU will be effective for the Company commencing January 1, 2023. The Company is in the process of assessing the impact of this ASU on our consolidated financial statements and disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows: 2020 2019 Cash and cash equivalents $ 34,229 $ 15,915 Cash - restricted 3,752 4,666 Cash - restricted, net of current portion 3,432 4,401 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 41,413 $ 24,982 |
Schedule of Number of the Company's Clients Which Contributed 10% or More of Revenue | The following table presents the number of clients comprised of 10% or more of the Company's billed accounts receivable: December 31, 2020 2019 Number of 10% clients 1 1 Percentage of billed accounts receivable 16 % 14 % |
Schedule of Estimated Useful Lives of the Assets | Depreciation and amortization is provided over the estimated useful lives of the assets as follows: Method Estimated Useful Life Furniture and equipment Straight-line 10 years Leasehold improvements Straight-line Shorter of estimated useful life or lease term Computer equipment and software Straight-line 3 to 5 years Automobiles Straight-line 5 years |
Schedule of the Company's Cost-Basis Investments | The Company’s total investments at December 31, 2020 and 2019 are as follows: December 31, 2020 2019 RAMPED Metro Joint Venture (1)(3) 1,493 527 Concessia, Cartera y Gestion de Infrastructuras S.A. (2) 1,193 1,096 Other (3) 119 88 $ 2,805 $ 1,711 (1) The Company has a 45.0% interest in this joint venture, which was formed for construction management of the Riyadh Metro system in Saudi Arabia. (2) The Company has a 5.7% interest in Concessia, Cartera y Gestion de Infrastructuras S.A. ("Concessia"), an entity which invests in the equity of companies that finance, construct and operate various public and private infrastructure projects in Spain. The practicability exception to fair value measurement was elected due to the fact that there is no readily determinable fair value for this investment. Therefore, the investment is measured at-cost, less impairment, plus or minus observable price changes (in orderly transactions) of an identical or similar investment of the same issuer. There have been no impairments of and no observable price changes in the investment. (3) Includes investments accounted for under the equity method of accounting. |
Schedule of Reconciliation to Net (Loss) Earnings Used in the Numerator for (Loss) Earnings Per Share from Continuing Operations | The following table provides a reconciliation to net income (loss) used in the numerator for net (loss) income per common share attributable to Hill: Years Ended December 31, 2020 2019 Net (loss) income $ (7,570) $ 14,254 Less: net earnings - noncontrolling interest 612 170 Net (loss) income attributable to Hill International, Inc. $ (8,182) $ 14,084 Basic weighted average common shares outstanding 56,603 56,280 Effect of dilutive securities: Stock options — — Unvested share-based compensation units — — Diluted weighted average shares common outstanding 56,603 56,280 Basic and diluted net income (loss) per common share - Hill International, Inc. $ (0.14) $ 0.25 |
Revenue from Contracts with C_2
Revenue from Contracts with Clients (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The components of the Company’s revenue by contract type and geographic region for the twelve months ended December 31, 2020 and 2019: Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Fixed Price T&M Total Percent of Total Revenue Fixed Price T&M Total Percent of Total Revenue Americas $ 21,964 $ 170,813 $ 192,777 52.4 % $ 26,664 ( 1) $ 173,478 $ 200,142 53.1 % Middle East/Asia/Pacific 16,242 76,397 92,639 25.1 % 31,923 73,004 104,927 27.9 % Europe 44,003 9,816 53,819 14.6 % 27,645 ( 2) 15,843 43,488 11.6 % Africa 4,159 25,130 29,289 7.9 % 1,492 26,388 27,880 7.4 % Total $ 86,368 $ 282,156 $ 368,524 100.0 % $ 87,724 $ 288,713 $ 376,437 100.0 % (1) Includes $1,122 of revenue, previously classified as T&M contracts. (2) Includes $4,109 of revenue, previously classified as T&M contracts. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Components of Accounts Receivable | The components of accounts receivable and accounts receivable - affiliates reflected in the Company's consolidated balance sheets, are as follows: December 31, Accounts Receivable 2020 2019 Billed (1) $ 113,021 $ 132,339 Unbilled (2) 37,960 30,026 $ 150,981 $ 162,365 Allowance for doubtful accounts (1)(3) (52,795) (58,473) Accounts Receivable, net $ 98,186 $ 103,892 Accounts Receivable - Affiliates Billed $ 15,560 $ 12,546 Unbilled (2) 8,380 6,888 $ 23,940 $ 19,434 Allowance for doubtful accounts (3) (655) (658) Accounts Receivable - Affiliates, net $ 23,285 $ 18,776 (1) Includes $33,242 and $32,864 related to amounts due from a client in Libya as of December 31, 2020 and 2019, respectively, which were both fully reserved for in the allowance for doubtful accounts. (2) Amount is net of unbilled reserves. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property and Equipment | The components of property and equipment are as follows: December 31, 2020 2019 Furniture and equipment $ 8,416 $ 10,608 Leasehold improvements 10,197 10,977 Automobiles 1,309 1,334 Computer equipment and software 28,069 29,285 47,991 52,204 Less accumulated depreciation and amortization (38,548) (40,309) Property and equipment, net $ 9,443 $ 11,895 |
Schedule of Information With Respect to Depreciation Expense | The Company's depreciation expense for the related balances were recorded as follows to the Company's consolidated statements of operations: Years Ended December 31, 2020 2019 Total depreciation expense $ 3,959 $ 2,810 Portion charged to direct expenses $ 397 $ 856 Portion charged to selling, general and administrative expense $ 3,562 $ 1,954 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Acquired Intangible Assets | The following table represents acquired intangible assets as a result of the Company's acquisition history and the client contracts that were attained at the time of the acquisition: December 31, 2020 2019 Gross Accumulated Gross Accumulated Engineering license $ 2,100 $ — $ — $ — Client relationships 509 356 1,080 848 Total $ 2,609 $ 356 $ 1,080 $ 848 Intangible assets, net $ 2,253 $ 232 |
Estimated Amortization Expense | The following table presents the estimated amortization expense based on our remaining intangible assets for the next five years: Estimated Amortization Years Ending December 31, Expense 2021 $ 51 2022 51 2023 51 2024 — 2025 — |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in the Company's Carrying Value of Goodwill | The following table summarizes the changes in the carrying value of goodwill: Balance, December 31, 2018 $ 48,869 Translation adjustments (1) (845) Balance, December 31, 2019 48,024 Translation adjustments (1) (1,627) Balance, December 31, 2020 $ 46,397 (1) The translation adjustments are calculated based on the foreign currency exchange rates as of December 31, 2020 and 2019. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Components of Accounts Payable and Accrued Expenses | The table below reflects the Company's breakdown of the amounts in accounts payable and other accrued expenses by cost category as of the periods presented below: December 31, 2020 2019 Accounts payable $ 20,953 $ 22,102 Accrued payroll and related expenses 26,691 24,718 Accrued subcontractor fees 8,711 9,405 Accrued agency fees (1) 4,239 4,395 Accrued legal and professional fees 2,894 2,169 Other accrued expenses 4,309 2,383 $ 67,797 $ 65,172 (1) $4,156 in accrued agency fees at December 31, 2019 that were previously included in accrued payroll and related expenses are now reflected in accrued agency fees. |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt Obligations | The table below reflects the Company's notes payable and long-term debt, which includes credit facilities: Interest Rate (1) Balance Outstanding as of Loan Maturity Interest Rate Type December 31, December 31, December 31, December 31, Secured Credit Facilities Hill International, Inc. - Société Générale 2017 Term Loan Facility 06/20/2023 Variable 7.67% 7.92% $ 28,950 $ 29,250 Hill International, Inc. - Société Générale Domestic Revolving Credit Facility (2) 05/04/2022 Variable 5.50% 6.27% 14,400 9,400 Hill International N.V. - Société Générale International Revolving Credit Facility (3)(6) 05/04/2022 Variable 4.11% 4.16% 4,035 2,302 Unsecured Credit Facilities Hill International, Inc. - First Abu Dhabi Bank PJSC Overdraft Credit Facility (4) 04/18/2021 Variable 5.65% 5.81% — 593 Hill International Brasil S.A. - Revolving Credit Facility (5) 06/12/2020 Fixed 3.07% 3.24% — 498 Unsecured Notes Payable and Long-Term Debt Hill International Spain SA-Bankia S.A. & Bankinter S.A. (6) 12/31/2021 Fixed 2.21% 2.21% 581 1,054 Philadelphia Industrial Development Corporation Loan 04/01/2027 Fixed 2.79% 2.79% 421 486 Hill International Spain S.A.-Bankinter S.A.2020 Term Loan ( 6)(7) 05/04/2024 Variable 2.23% N/A 357 — Hill International Spain S.A.-Banco Santander, S.A. Term Loan (6)(7) 05/30/2025 Fixed 3.91% N/A 367 — Hill International Spain S.A.-BBVA, S.A. P.P. Term Loan (6)(7) 06/19/2025 Variable 2.28% N/A 367 — Hill International Spain S.A.-Bankia, S.A. 2020 Term Loan (6)(7) 06/05/2025 Variable 2.54% N/A 303 — Total notes payable and long-term debt, gross 49,781 43,583 Less: unamortized discount and deferred financing costs related to Société Générale 2017 Term Loan Facility (500) (641) Notes payable and long-term debt $ 49,281 $ 42,942 Current portion of notes payable 1,171 1,972 Current portion of unamortized debt discount and deferred financing costs (184) (180) Current maturities of notes payable and long-term debt $ 987 $ 1,792 Notes payable and long-term debt, net of current maturities 48,294 41,150 Footnotes to the Notes Payable and Long-Term Debt Table Above: (1) Interest rates for variable interest rate debt are reflected on a weighted average basis through December 31, 2020 and 2019 since the loan origination or modification date. (2) At December 31, 2020 and 2019, the Company had $6,605 and $6,548 of outstanding letters of credit, respectively, in addition to the balances outstanding above, which resulted in $7,495 and $9,052 of available borrowing capacity under the Domestic Revolving Credit Facility, respectively. The amounts available were based on the maximum borrowing capacity of $28,500 and $25,000 as of December 31, 2020 and 2019, respectively. See 'Secured Credit Facilities' section below for further information. (3) As of December 31, 2020 and 2019, the Company had $2,189 and $2,232 of outstanding letters of credit, respectively, in addition to the balances outstanding above, which resulted in $1,085 and $3,145 of available borrowing capacity under the International Revolving Credit Facility, respectively. The amounts available were based on the Company's borrowing capacity of $7,309 and $7,679 as of December 31, 2020 and 2019, respectively. See ''Secured Credit Facilities' section below for further information. (4) FAB overdraft credit facility lender was formerly known as National Bank of Abu Dhabi. There is no stated maturity date, however, the loan is subject to annual review in April of each year, or at any other time as determined by FAB. Therefore, the amount outstanding is reflected within the current maturities of notes payable and long-term debt. Balances outstanding are reflected in U.S. dollars based on the conversion rates from AED as of December 31, 2020 and 2019. The Company had $3,131 and $2,538 of availability under the credit facility as of December 31, 2020 and 2019, respectively. (5) See Note 18 - Deconsolidation of Controlling Interest in Subsidiaries related to the bankruptcy and liquidation of Hill International Brasil S.A. (the "borrower"), which resulted in the deconsolidation of the borrower from the Company's consolidated financial statements. This unsecured revolving credit facility was subject to automatic renewals on a monthly basis. Effective with the November 2019 renewal of the unsecured revolving credit facility, the interest rate was reduced by the credit facility lender from 3.30% to 2.80%. The Company had no availability under the unsecured credit facility as of December 31, 2019. The amounts outstanding are based on conversion rates from Brazilian Real as of December 31, 2019. (6) Balances outstanding are reflected in U.S. dollars based on the conversion rates from Euros as of December 31, 2020 and 2019, accordingly. (7) Includes loan agreements entered into between April and June 2020, where the respective loan agreements require interest-only monthly payments during grace periods that last from six months or one year from the date of the agreements. The variable interest loans are subject to either semi-annual or annual review by the respective lenders thereof and the respective interest rates in respect thereof are determined based on the European Inter-Bank Offered Rate, or “EURIBOR,” for the relevant interest period (or at a substitute rate to be determined to the extent EURIBOR is not available), plus a margin, as set by the respective lender. |
Schedule of Contractual Maturities of Long Term Debt | At December 31, 2020, contractually scheduled maturities of current and long-term debt, net of the amortization of the deferred financing costs related to the 2017 Term Loan Facility, were as follows: Years Ending December 31, Total Scheduled Maturities (1) 2021 $ 955 2022 18,958 2023 28,701 2024 380 2025 199 Thereafter 88 Total $ 49,281 (1) Amounts are estimated based on the foreign currency exchange rates as of December 31, 2020, where applicable. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Total Share-Based Compensation Expense | The following table summarizes the total share-based compensation expense as follows: Years Ended December 31, 2020 2019 Restricted stock units $ 975 $ 472 Deferred stock units 622 664 Stock options 366 434 Common stock (1) — 916 Common stock issued under the 2008 Employee Stock Purchase Plan 43 28 Total $ 2,006 $ 2,514 |
Schedule of DSUs | The following table summarizes the activity related to the equity units, excluding employee stock options (summarized separately below), issued by the Company for the years ended December 31, 2020 and 2019: Number of RSU's RSU Weighted Number of DSU's DSU Weighted Unvested, December 31, 2018 — $ — 20 $ 3.05 Outstanding, Granted 485 3.22 254 2.74 Forfeited (21) 3.23 — — Vested — — (240) 2.73 Unvested, December 31, 2019 464 3.22 34 3.11 Granted 444 3.28 343 1.69 Forfeited (51) 3.26 — — Vested (167) 3.23 (356) 1.74 Unvested, December 31, 2020 690 $ 3.26 21 $ 3.10 |
Schedule of Assumptions Used to Estimate the Fair Value of Options Granted | The following table summarizes the fair value of options granted during 2020 and 2019 and the assumptions used to estimate the fair value: December 31, 2020 2019 Average expected life (years) N/A * 3.50 Forfeiture range N/A * — % Weighted average forfeiture rate N/A * — % Dividends N/A * — % Volatility range N/A * 49.4 % Weighted average volatility N/A * 49.4 % Range of risk-free interest rates N/A * 1.9 % Weighted average risk-free interest rate N/A * 1.9 % Weighted average fair value at grant date N/A * $ 0.88 |
Summary of the Company's Award Activity and Related Information | A summary of the Company’s stock option activity and related information for the years ended December 31, 2020 and 2019 is as follows (in thousands, except exercise price and remaining life data): Options Weighted Weighted Aggregate Outstanding, December 31, 2018 1,943 $ 4.36 Granted 500 3.13 Exercised — — Expired (564) 4.53 Forfeited — — Outstanding, December 31, 2019 1,879 3.98 Granted — — Exercised — — Expired (306) 3.79 Forfeited (10) 4.46 Outstanding, December 31, 2020 1,563 $ 4.01 2.40 $ 3,273 Exercisable, December 31, 2020 1,036 $ 4.01 1.96 $ 2,372 |
Schedule of Weighted Average Characteristics of Outstanding Stock Options for Various Price Ranges | The weighted average characteristics of outstanding stock options by exercise price at December 31, 2020 are as follows: Options Outstanding Options Exercisable Exercise Number Outstanding at December 31, 2020 Weighted Average Remaining Contractual Number Exercisable at December 31, 2020 Weighted Average Remaining Contractual $3.13 500 3.45 167 3.45 4.00 250 2.25 200 2.25 4.03 225 1.08 225 1.08 4.31 13 2.45 10 2.45 4.65 347 3.19 208 3.19 4.90 5 1.59 5 1.59 4.95 211 0.19 211 0.19 5.17 12 2.45 10 2.45 1,563 2.40 1,036 1.96 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings and Income Tax Expense (Benefit) | The components of (loss) earnings before income taxes on the Company's consolidated statements of operations by the United States and foreign jurisdictions were as follows: Years Ended December 31, 2020 2019 United States $ (1,839) $ (3,948) Foreign jurisdictions 1,403 17,093 $ (436) $ 13,145 |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit), as reflected in the Company's consolidated statements of operations, consists of the following: Current Deferred Total Year ended December 31, 2020: U.S. federal $ — $ 26 $ 26 State and local 217 (15) 202 Foreign jurisdictions 6,100 806 6,906 $ 6,317 $ 817 $ 7,134 Year ended December 31, 2019: U.S. federal $ 65 $ 23 $ 88 State and local (27) (5) (32) Foreign jurisdictions (1,934) 769 (1,165) $ (1,896) $ 787 $ (1,109) |
Reconciliation of Income Taxes and Deferred Tax Assets & Liabilities | The following table summarizes the difference between the income tax expense/(benefit) at the United States statutory rate of 21.0% for both years ended December 31, 2020 and 2019 and the income tax expense at effective worldwide tax rates for the respective periods: Years Ended December 31, 2020 2019 Statutory federal income tax (benefit) $ (92) $ 2,760 Foreign tax expense 4,415 50 Change in the valuation allowance (766) 1,968 Net liability additions for uncertain tax positions 1,713 1,183 Excess compensation 129 — State and local income taxes, net of federal income tax benefit 202 (32) Stock options 122 94 Foreign intercompany loan adjustments 764 185 Prior period adjustments 499 (1,821) Global intangible low-taxed income — 369 Non-deductible loss on bond — (1,667) Reversal of Construction Claims Group liability — (4,056) Other 148 (142) Total $ 7,134 $ (1,109) |
Schedule of Tax Effect of Temporary Differences That Give Rise to Deferred Tax Assets and Deferred Tax Liabilities | The tax effect of temporary differences that give rise to deferred tax assets and deferred tax liabilities are as follows: December 31, 2020 2019 Deferred tax assets: Net operating loss carry forward - U.S. operations $ 9,442 $ 9,807 Net operating loss carry forward - foreign operations 6,673 10,295 Compensated absences 1,559 944 Foreign income taxes on currency translation 3,315 5,543 Share-based compensation 581 465 Allowance for doubtful accounts 2,840 3,440 Labor contingencies 6 261 Interest limitations 1,144 1,659 Foreign tax credit 115 292 Accrued expenses 1,369 1,164 Other 279 375 Total gross deferred tax assets 27,323 34,245 Valuation allowances (20,103) (28,821) Net deferred tax assets 7,220 5,424 Deferred tax liabilities: Intangible assets (1,627) (1,364) Depreciation (317) (86) Prepaid expenses (465) (434) Change in tax method (570) (284) Deferred income (1,753) 125 Total gross deferred tax liabilities (4,732) (2,043) Net deferred tax assets $ 2,488 $ 3,381 The deferred taxes have been reflected in the Company's consolidated balance sheets based on tax jurisdiction as follows: December 31, 2020 2019 Deferred tax asset $ 3,698 $ 3,800 Deferred tax liability (1,210) (419) Net deferred tax assets $ 2,488 $ 3,381 |
Schedule of Changes to the Company's Uncertain Tax Positions | The following table indicates the changes to the Company’s uncertain tax positions for the years ended December 31, 2020 and 2019, including interest and penalties: Years Ended December 31, 2020 2019 Balance, beginning of year $ 4,615 $ 2,988 Reductions based on tax positions related to prior years (162) (702) Reduction due to settlements with taxing authorities — (960) Additions based on tax positions related to prior years 1,875 3,289 Balance, end of year $ 6,328 $ 4,615 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases, Operating [Abstract] | |
Maturity of Operating Lease Liabilities | The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2020: Years Ending December 31, Total Operating Lease Payments Total Financing Lease Payments 2021 $ 5,772 $ 75 2022 4,491 75 2023 3,679 75 2024 2,735 40 2025 1,963 — Thereafter 2,958 — Total minimum lease payments (1)(2) 21,598 265 Less amount representing imputed interest 3,260 9 Present value of lease obligations $ 18,338 $ 256 Weighted average remaining lease term (years) 4.63 3.54 Weighted average discount rate 7.0% 2.1% (1) Partially includes rent expense amounts payable in various foreign currencies and are based on the foreign currency exchange rate as of December 31, 2020, where applicable. (2) Includes lease amendments executed as of December 31, 2020, but not yet commenced. |
Maturity of Finance Lease Liabilities | The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2020: Years Ending December 31, Total Operating Lease Payments Total Financing Lease Payments 2021 $ 5,772 $ 75 2022 4,491 75 2023 3,679 75 2024 2,735 40 2025 1,963 — Thereafter 2,958 — Total minimum lease payments (1)(2) 21,598 265 Less amount representing imputed interest 3,260 9 Present value of lease obligations $ 18,338 $ 256 Weighted average remaining lease term (years) 4.63 3.54 Weighted average discount rate 7.0% 2.1% (1) Partially includes rent expense amounts payable in various foreign currencies and are based on the foreign currency exchange rate as of December 31, 2020, where applicable. (2) Includes lease amendments executed as of December 31, 2020, but not yet commenced. |
Segment and Related Informati_2
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Region | The following tables present certain information for the Company's operations: Total Revenue by Geographic Region: 2020 2019 Americas $ 192,777 52.4 % $ 200,142 53.1 % Middle East/Asia/Pacific 92,639 25.1 % 104,927 27.9 % Europe 53,819 14.6 % 43,488 11.6 % Africa 29,289 7.9 % 27,880 7.4 % Total $ 368,524 100.0 % $ 376,437 100.0 % |
Schedule of Operating Profit (Loss) | Operating Profit (Loss): 2020 2019 Americas $ 31,959 $ 27,834 Middle East/Asia/Pacific 9,287 13,782 Europe 5,558 4,955 Africa 5,401 11,235 Corporate (41,706) (39,260) Total $ 10,499 $ 18,546 |
Schedule of Depreciation and Amortization Expense | Depreciation and Amortization Expense: 2020 2019 Project Management $ 1,385 $ 3,791 Corporate 2,653 33 Total $ 4,038 $ 3,824 |
Schedule of Revenue By Client Type | Revenue By Client Type: 2020 2019 U.S. federal government $ 17,942 4.9 % $ 18,967 5.0 % U.S. state, regional and local governments 118,845 32.2 % 124,504 33.1 % Foreign governments 99,906 27.1 % 91,683 24.4 % Private sector 131,831 35.8 % 141,283 37.5 % Total $ 368,524 100.0 % $ 376,437 100.0 % |
Schedule of Property and Equipment, Net by Geographic Location | Property, Plant and Equipment, Net by Geographic Location: December 31, 2020 2019 Americas $ 7,741 $ 10,401 Middle East/Asia/Pacific 917 882 Europe 544 473 Africa 241 139 Total $ 9,443 $ 11,895 |
The Company (Details)
The Company (Details) | Dec. 31, 2020officeemployee |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of professionals | employee | 2,700 |
Number of offices (more than) | office | 70 |
Liquidity (Details)
Liquidity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Liquidity [Line Items] | ||
Cash and cash equivalents | $ 34,229 | $ 15,915 |
Minimum | ||
Liquidity [Line Items] | ||
Corporate cost reductions | 11 | |
U.S. Revolver | Letters of credit | ||
Liquidity [Line Items] | ||
Available borrowing capacity | 7,495 | 9,052 |
International Revolver | Revolving credit facility | Foreign credit agreements | ||
Liquidity [Line Items] | ||
Available borrowing capacity | 3,131 | 2,538 |
International Revolver | Revolving credit facility | Foreign credit agreements | Other Foreign Banks | ||
Liquidity [Line Items] | ||
Available borrowing capacity | $ 1,085 | $ 3,145 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reclassification (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Selling, general and administrative expense | ||
Reclassification [Line Items] | ||
Interest costs and (gains)/losses in EOSB plan | $ (637) | |
Selling, general and administrative expense | Revision of Prior Period, Reclassification, Adjustment | ||
Reclassification [Line Items] | ||
Interest costs and (gains)/losses in EOSB plan | $ (219) | |
Other Income | ||
Reclassification [Line Items] | ||
Interest costs and (gains)/losses in EOSB plan | $ 637 | |
Other Income | Revision of Prior Period, Reclassification, Adjustment | ||
Reclassification [Line Items] | ||
Interest costs and (gains)/losses in EOSB plan | $ 219 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Other Income, net (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 31, 2020USD ($)installment | Jul. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||
Loss on liquidation of subsidiary | $ 5,501 | $ 0 | ||
Interest cost and actuarial loss | 637 | |||
Plus: Other (loss) income, net | (5,711) | 394 | ||
Amount of grant received | 1,000 | |||
Other nonoperating expense | $ 606 | |||
Grant liability | $ 324 | $ 351 | ||
Grant liability, number of installments | installment | 4 | |||
Grant liability, installment payments | $ 81 | |||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Plus: Other (loss) income, net | 345 | |||
Hill International Brasil S.A. | ||||
Debt Instrument [Line Items] | ||||
Loss on liquidation of subsidiary | $ 5,501 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restricted Cash and Concentrations of Credit Risk (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer | |
Accounting Policies [Abstract] | ||
Minimum completion period of the project | 1 year | |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | $ 34,229 | $ 15,915 |
Cash - restricted | 3,752 | 4,666 |
Cash - restricted, net of current portion | 3,432 | 4,401 |
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 41,413 | $ 24,982 |
Concentrations of Credit Risk | ||
Percentage of billed accounts receivable | 100.00% | 100.00% |
Accounts receivable | Concentrations of credit risk | ||
Concentrations of Credit Risk | ||
Number of 10% clients | customer | 1 | 1 |
Percentage of billed accounts receivable | 16.00% | 14.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Furniture and equipment | |
Property and Equipment | |
Estimated Useful Life | 10 years |
Computer equipment and software | Minimum | |
Property and Equipment | |
Estimated Useful Life | 3 years |
Computer equipment and software | Maximum | |
Property and Equipment | |
Estimated Useful Life | 5 years |
Automobiles | |
Property and Equipment | |
Estimated Useful Life | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Intangible Assets and Goodwill (Details) - USD ($) | Jul. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Assets | |||
Estimated lives of intangible assets | 10 years | ||
Impairment loss | $ 0 | ||
Goodwill | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Selling, general and administrative expense | |||
Intangible Assets | |||
Impairment loss | $ 563,000 | ||
Minimum | |||
Intangible Assets | |||
Estimated lives of intangible assets | 3 years | ||
Maximum | |||
Intangible Assets | |||
Estimated lives of intangible assets | 15 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Investments | $ 2,805 | $ 1,711 |
RAMPED Metro Joint Venture | ||
Schedule of Investments [Line Items] | ||
Investments | $ 1,493 | 527 |
Ownership interest | 45.00% | |
Concessia, Cartera y Gestion de Infrastructuras S.A. | ||
Schedule of Investments [Line Items] | ||
Investments | $ 1,193 | 1,096 |
Ownership interest | 5.70% | |
Other | ||
Schedule of Investments [Line Items] | ||
Investments | $ 119 | $ 88 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - General Policies (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Deferred rent included in other liabilities | $ 2 | $ 2 |
Advertising costs | $ 253 | $ 229 |
Anti-dilutive securities that were not included in the calculation of common shares outstanding (in shares) | 2,300 | 2,376 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net (loss) income | $ (7,570) | $ 14,254 |
Less: net earnings - noncontrolling interest | 612 | 170 |
Net (loss) income attributable to Hill International, Inc. | $ (8,182) | $ 14,084 |
Basic weighted average common shares outstanding (in shares) | 56,603 | 56,280 |
Effect of dilutive securities: | ||
Diluted weighted average shares common outstanding (in shares) | 56,603 | 56,280 |
Basic and diluted income (loss) per share from continuing operations - Hill International, Inc. (in dollars per share) | $ (0.14) | $ 0.25 |
Stock options | ||
Effect of dilutive securities: | ||
Dilutive securities | 0 | 0 |
Unvested share-based compensation units | ||
Effect of dilutive securities: | ||
Dilutive securities | 0 | 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Clients - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($)segment | |
Revenue from Contract with Customer [Abstract] | ||
Number of operating segments | segment | 1 | 1 |
Revenue recognized | $ 9,955 | $ 14,156 |
Remaining performance obligations | $ 101,800 | $ 113,592 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations, expected term | 12 months | |
Remaining performance obligations, percentage | 47.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations, expected term | 3 years | |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations, expected term | 5 years |
Revenue from Contracts with C_4
Revenue from Contracts with Clients - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 368,524 | $ 376,437 |
Percent of Total Revenue | 100.00% | 100.00% |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 192,777 | $ 200,142 |
Percent of Total Revenue | 52.40% | 53.10% |
Middle East/Asia/Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 92,639 | $ 104,927 |
Percent of Total Revenue | 25.10% | 27.90% |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 53,819 | $ 43,488 |
Percent of Total Revenue | 14.60% | 11.60% |
Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 29,289 | $ 27,880 |
Percent of Total Revenue | 7.90% | 7.40% |
Fixed Price | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 86,368 | $ 87,724 |
Fixed Price | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 21,964 | 26,664 |
Fixed Price | Americas | Revision of Prior Period, Reclassification, Adjustment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,122 | |
Fixed Price | Middle East/Asia/Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 16,242 | 31,923 |
Fixed Price | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 44,003 | 27,645 |
Fixed Price | Europe | Revision of Prior Period, Reclassification, Adjustment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,109 | |
Fixed Price | Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,159 | 1,492 |
T&M | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 282,156 | 288,713 |
T&M | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 170,813 | 173,478 |
T&M | Americas | Revision of Prior Period, Reclassification, Adjustment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | (1,122) | |
T&M | Middle East/Asia/Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 76,397 | 73,004 |
T&M | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 9,816 | 15,843 |
T&M | Europe | Revision of Prior Period, Reclassification, Adjustment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | (4,109) | |
T&M | Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 25,130 | $ 26,388 |
Accounts Receivable - Component
Accounts Receivable - Components of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed | $ 113,021 | $ 132,339 |
Unbilled | 37,960 | 30,026 |
Accounts receivable, gross | 150,981 | 162,365 |
Allowance for doubtful accounts | (52,795) | (58,473) |
Accounts Receivable - Affiliates, net | 98,186 | 103,892 |
Single Customer In Libya | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed | 33,242 | 32,864 |
Affiliated Entity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed | 15,560 | 12,546 |
Unbilled | 8,380 | 6,888 |
Accounts receivable, gross | 23,940 | 19,434 |
Allowance for doubtful accounts | (655) | (658) |
Accounts Receivable - Affiliates, net | $ 23,285 | $ 18,776 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Selling, general and administrative expense | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Bad debt recoveries | $ 1,936 | $ 8,426 |
Single Customer In Libya | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Bad debt recoveries | $ 0 | $ 9,652 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property and Equipment | ||
Property and equipment, gross | $ 47,991 | $ 52,204 |
Less accumulated depreciation and amortization | (38,548) | (40,309) |
Property and equipment, net | 9,443 | 11,895 |
Total depreciation expense | 3,959 | 2,810 |
Portion charged to direct expenses | ||
Property and Equipment | ||
Total depreciation expense | 397 | 856 |
Portion charged to selling, general and administrative expense | ||
Property and Equipment | ||
Total depreciation expense | 3,562 | 1,954 |
Furniture and equipment | ||
Property and Equipment | ||
Property and equipment, gross | 8,416 | 10,608 |
Leasehold improvements | ||
Property and Equipment | ||
Property and equipment, gross | 10,197 | 10,977 |
Automobiles | ||
Property and Equipment | ||
Property and equipment, gross | 1,309 | 1,334 |
Computer equipment and software | ||
Property and Equipment | ||
Property and equipment, gross | $ 28,069 | $ 29,285 |
Intangible Assets - Summary of
Intangible Assets - Summary of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of acquired intangible assets | ||
Accumulated Amortization | $ 356 | $ 848 |
Total | 2,609 | 1,080 |
Intangible assets, net | 2,253 | 232 |
Client relationships | ||
Summary of acquired intangible assets | ||
Finite-lived intangible assets | 509 | 1,080 |
Accumulated Amortization | 356 | 848 |
Engineering license | ||
Summary of acquired intangible assets | ||
Indefinite-lived intangible assets | $ 2,100 | $ 0 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets | ||
Amortization expense related to intangible assets | $ 79,000 | $ 1,014,000 |
Estimated lives of intangible assets | 10 years | |
Impairment loss | $ 0 | |
Estimated amortization expense of intangible assets for the next five years | ||
2021 | 51,000 | |
2022 | 51,000 | |
2023 | 51,000 | |
2024 | 0 | |
2025 | 0 | |
Engineering license | ||
Intangible Assets | ||
Amortization expense related to intangible assets | $ 0 | |
Selling, general and administrative expense | ||
Intangible Assets | ||
Impairment loss | $ 563,000 |
Goodwill (Details)
Goodwill (Details) - USD ($) | Jul. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Roll Forward] | |||
Balance at the beginning of the period | $ 48,024,000 | $ 48,869,000 | |
Translation adjustments | (1,627,000) | (845,000) | |
Balance at the end of the period | 46,397,000 | 48,024,000 | |
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Components of accounts payable and accrued expenses | ||
Accounts payable | $ 20,953 | $ 22,102 |
Accrued payroll and related expenses | 26,691 | 24,718 |
Accrued subcontractor fees | 8,711 | 9,405 |
Accrued agency fees (1) | 4,239 | 4,395 |
Accrued legal and professional fees | 2,894 | 2,169 |
Other accrued expenses | 4,309 | 2,383 |
Accounts payable and accrued expenses, net | $ 67,797 | 65,172 |
Previously Reported | ||
Components of accounts payable and accrued expenses | ||
Accrued payroll and related expenses | 4,156 | |
Revision of Prior Period, Reclassification, Adjustment | ||
Components of accounts payable and accrued expenses | ||
Accrued agency fees (1) | $ 4,156 |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt - Summary of Outstanding Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 01, 2019 | Nov. 30, 2019 |
Debt Instrument [Line Items] | ||||
Total notes payable and long-term debt, gross | $ 49,781 | $ 43,583 | ||
Less: unamortized discount and deferred financing costs related to Société Générale 2017 Term Loan Facility | (500) | (641) | ||
Notes payable and long-term debt | 49,281 | 42,942 | ||
Current portion of notes payable | 1,171 | 1,972 | ||
Current portion of unamortized debt discount and deferred financing costs | (184) | (180) | ||
Current maturities of notes payable and long-term debt | 987 | 1,792 | ||
Notes payable and long-term debt, net of current maturities | $ 48,294 | $ 41,150 | ||
Hill International, Inc. - Société Générale 2017 Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate | 7.67% | 7.92% | ||
Total notes payable and long-term debt, gross | $ 28,950 | $ 29,250 | ||
Hill International, Inc. - Société Générale Domestic Revolving Credit Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate | 5.50% | 6.27% | ||
Total notes payable and long-term debt, gross | $ 14,400 | $ 9,400 | ||
Hill International N.V.. - Société Générale International Revolving Credit Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate | 4.11% | 4.16% | ||
Total notes payable and long-term debt, gross | $ 4,035 | $ 2,302 | ||
Hill International, Inc. - First Abu Dhabi Bank PJSC Overdraft Credit Facility | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate | 5.65% | 5.81% | ||
Total notes payable and long-term debt, gross | $ 0 | $ 593 | ||
Engineering SA Services Technicos - Consortium of Brazilian Credit Facilities | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 3.07% | 3.24% | 2.80% | 3.30% |
Total notes payable and long-term debt, gross | $ 0 | $ 498 | ||
Hill International Spain SA - Bankia, S.A. and Bankinter, S.A | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.21% | 2.21% | ||
Total notes payable and long-term debt, gross | $ 581 | $ 1,054 | ||
Philadelphia Industrial Development Corporation Loan | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.79% | 2.79% | ||
Total notes payable and long-term debt, gross | $ 421 | $ 486 | ||
Hill International Spain S.A. - Bankinter S.A. 2020 Term Loan | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.23% | |||
Total notes payable and long-term debt, gross | $ 357 | 0 | ||
Hill International Spain S.A. - Banco Santander, S.A. Term Loan | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 3.91% | |||
Total notes payable and long-term debt, gross | $ 367 | 0 | ||
Hill International Spain S.A. - BBVA, S.A. P.P. Term Loan | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.28% | |||
Total notes payable and long-term debt, gross | $ 367 | 0 | ||
Hill International Spain S.A. - Bankia. S.A. 2020 Term Loan | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.54% | |||
Total notes payable and long-term debt, gross | $ 303 | $ 0 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt - Narrative (Details) | May 01, 2020USD ($) | Apr. 01, 2020USD ($) | Apr. 01, 2020EUR (€) | May 05, 2017USD ($) | Dec. 31, 2020USD ($) | Apr. 01, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 01, 2019 | Nov. 30, 2019 | May 05, 2017EUR (€) |
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 49,281,000 | $ 42,942,000 | ||||||||
Revolving credit facility | Other Assets | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unamortized balances of expenses and fees | $ 755,000 | 1,317,000 | ||||||||
Term loan payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 30,000,000 | |||||||||
Debt covenant leverage ratio limit | 2 | |||||||||
Mandatory prepayment percentage of the excess cash flow for each fiscal year with the first full fiscal year upon the achievement and maintenance of certain metrics | 50.00% | |||||||||
Mandatory prepayment percentage of the excess cash flow for each fiscal year with the first full fiscal year upon the achievement net leverage ration is equal to or less than 2.25 | 25.00% | |||||||||
Secured Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt covenant leverage ratio limit | 3 | |||||||||
Increase in applicable interest rate upon default (as a percent) | 2.00% | |||||||||
U.S. Revolver | British Bankers Association LIBOR Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis of effective interest rate (as a percent) | 3.75% | |||||||||
U.S. Revolver | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis of effective interest rate (as a percent) | 2.75% | |||||||||
U.S. Revolver | Letters of credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amounts outstanding | $ 6,605,000 | 6,548,000 | ||||||||
Available borrowing capacity | 7,495,000 | 9,052,000 | ||||||||
Maximum borrowing capacity | $ 20,000,000 | |||||||||
U.S. Revolver | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 28,500,000 | $ 25,000,000 | $ 28,500,000 | 25,000,000 | ||||||
Increase in aggregate principal amount | 3,500,000 | |||||||||
Unused facility commitment fees percentage | 0.50% | |||||||||
Percent of difference between aggregate amount of Eligible Domestic Receivables and Dilution Reserve | 85.00% | |||||||||
Percentage of aggregate amount of Eligible Domestic Receivables as of the immediately preceding calendar month | 1.00% | |||||||||
International Revolver | EURIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis of effective interest rate (as a percent) | 4.50% | |||||||||
International Revolver | Letters of credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 9,130,000 | € 8,000,000 | ||||||||
International Revolver | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 6,536,000 | $ 10,000,000 | € 9,156,000 | |||||||
Unused facility commitment fees percentage | 0.75% | |||||||||
Percentage of eligible receivables that are subject to a perfected security interest which are used in calculation of borrowing base | 85.00% | |||||||||
Percentage of eligible receivables that are not subject to a perfected security interest which are used in calculation of borrowing base | 10.00% | |||||||||
International Revolver | Revolving credit facility | Foreign credit agreements | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Available borrowing capacity | $ 3,131,000 | 2,538,000 | ||||||||
Revolving credit facility | Revolving Credit Facility Prior To Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | € | € 5,977,000 | |||||||||
Increase (decrease) in maximum borrowing capacity | $ 3,500,000 | € (3,179,000) | ||||||||
Unsecured Debt | Hill International, Inc. - First Abu Dhabi Bank PJSC Overdraft Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Available borrowing capacity | $ 3,131,000 | 2,538,000 | ||||||||
Unsecured Debt | Engineering SA Services Technicos - Consortium of Brazilian Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Available borrowing capacity | $ 0 | |||||||||
Fixed interest rate | 3.07% | 3.24% | 2.80% | 3.30% | ||||||
Notes Payable, Other Payables | Premium Financing Agreement with AFCO Premium Credit LLC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 3,391,000 | |||||||||
Down payment | $ 509,000 | |||||||||
Term of debt | 10 months | |||||||||
Stated interest rate | 3.04% | |||||||||
Long-term debt | $ 872,000 | $ 768,000 | ||||||||
Other Foreign Banks | International Revolver | Revolving credit facility | Foreign credit agreements | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amounts outstanding | 2,189,000 | 2,232,000 | ||||||||
Available borrowing capacity | 1,085,000 | 3,145,000 | ||||||||
Maximum borrowing capacity | $ 7,309,000 | $ 7,679,000 |
Notes Payable and Long-Term D_5
Notes Payable and Long-Term Debt - Maturities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 955 |
2022 | 18,958 |
2023 | 28,701 |
2024 | 380 |
2025 | 199 |
Thereafter | 88 |
Total | $ 49,281 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares covered under the plan | 4,250,000 | |||
Unrecognized compensation cost | $ 2,498,000 | $ 1,183,000 | ||
Compensation expense | $ 2,006,000 | $ 2,514,000 | ||
Stock options granted (in shares) | 0 | 500,000 | ||
Weighted average exercise price of the outstanding options (in dollars per share) | $ 4.01 | $ 3.98 | $ 4.36 | |
Closing stock price (in dollars per share) | $ 1.92 | |||
Total unrecognized compensation cost related to non-vested options (in dollars) | $ 527,000 | |||
Weighted-average service period over which unrecognized compensation cost is to be recognized | 2 years 4 months 24 days | |||
Share-based compensation expense | $ 245,000 | $ 161,000 | ||
Share-based Payment Arrangement, Excluding Employee Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year 7 months 6 days | 2 years 1 month 6 days | ||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Number of common stock shares issuable for each award (in shares) | 1 | |||
Compensation expense | $ 975,000 | $ 472,000 | ||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 0 | |||
Performance Shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights per annum | 50.00% | |||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights per annum | 200.00% | |||
DSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Number of common stock shares issuable for each award (in shares) | 1 | |||
Award vesting rights per annum | 33.30% | |||
Compensation expense | $ 622,000 | 664,000 | ||
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares covered under the plan | 2,000,000 | |||
Purchase price of shares as a percentage of the fair market value on the date of purchase | 85.00% | |||
Additional Paid-in Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | [1] | $ 245,000 | $ 161,000 | |
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued under employee stock purchase plan (in shares) | [1] | 196,000 | 77,000 | |
[1] | See Note 12 - Stockholders' Equity for more detail. |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Total Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 2,006 | $ 2,514 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 975 | 472 |
Deferred stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 622 | 664 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 366 | 434 |
Common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 0 | 916 |
Common stock issued under the 2008 Employee Stock Purchase Plan | Common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 43 | $ 28 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedules (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested, beginning of period (in shares) | 464 | 0 |
Outstanding, granted (in shares) | 444 | 485 |
Forfeited (in shares) | (51) | (21) |
Vested (in shares) | (167) | 0 |
Unvested, end of period (in shares) | 690 | 464 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested, beginning of period (in dollars per share) | $ 3.22 | $ 0 |
Outstanding, granted (in dollars per share) | 3.28 | 3.22 |
Forfeited (in dollars per share) | 3.26 | 3.23 |
Vested (in dollars per share) | 3.23 | 0 |
Unvested, end of period (in dollars per share) | $ 3.26 | $ 3.22 |
DSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested, beginning of period (in shares) | 34 | 20 |
Outstanding, granted (in shares) | 343 | 254 |
Forfeited (in shares) | 0 | 0 |
Vested (in shares) | (356) | (240) |
Unvested, end of period (in shares) | 21 | 34 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested, beginning of period (in dollars per share) | $ 3.11 | $ 3.05 |
Outstanding, granted (in dollars per share) | 1.69 | 2.74 |
Forfeited (in dollars per share) | 0 | 0 |
Vested (in dollars per share) | 1.74 | 2.73 |
Unvested, end of period (in dollars per share) | $ 3.10 | $ 3.11 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Assumptions Used to Estimate the Fair Value of Options Granted (Details) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Share-based Payment Arrangement [Abstract] | |
Average expected life | 3 years 6 months |
Forfeiture range (as a percent) | 0.00% |
Weighted average forfeiture rate (as a percent) | 0.00% |
Dividends (as a percent) | 0.00% |
Volatility range (as a percent) | 49.40% |
Weighted average volatility (as a percent) | 49.40% |
Weighted average risk-free interest rate (as a percent) | 1.90% |
Weighted average fair value at grant date (in dollars per share) | $ 0.88 |
Share-Based Compensation - Awar
Share-Based Compensation - Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number | ||
Outstanding at the beginning of the period (in shares) | 1,879,000 | 1,943,000 |
Granted (in shares) | 0 | 500,000 |
Exercised (in shares) | 0 | 0 |
Expired (in shares) | (306,000) | (564,000) |
Forfeited (in shares) | (10,000) | 0 |
Outstanding at the end of the period (in shares) | 1,563,000 | 1,879,000 |
Exercisable at the end of the period (in shares) | 1,036,000 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 3.98 | $ 4.36 |
Granted (in dollars per share) | 0 | 3.13 |
Exercised (in dollars per share) | 0 | 0 |
Expired (in dollars per share) | 3.79 | 4.53 |
Forfeited (in dollars per share) | 4.46 | 0 |
Outstanding at the end of the period (in dollars per share) | 4.01 | $ 3.98 |
Exercisable at the end of the period (in dollars per share) | $ 4.01 | |
Additional Disclosures | ||
Outstanding, Weighted Average Remaining Contractual Life | 2 years 4 months 24 days | |
Exercisable, Weighted Average Remaining Contractual Life | 1 year 11 months 15 days | |
Outstanding, Aggregate Intrinsic Value | $ 3,273 | |
Exercisable, Aggregate Intrinsic Value | $ 2,372 |
Share-Based Compensation - Outs
Share-Based Compensation - Outstanding and Exercisable (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding at the end of the period (in shares) | 1,563 |
Weighted average remaining contractual life, outstanding | 2 years 4 months 24 days |
Number exercisable at the end of the period (in shares) | 1,036 |
Weighted average remaining contractual life, exercisable | 1 year 11 months 15 days |
3.13 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 3.13 |
Number outstanding at the end of the period (in shares) | 500 |
Weighted average remaining contractual life, outstanding | 3 years 5 months 12 days |
Number exercisable at the end of the period (in shares) | 167 |
Weighted average remaining contractual life, exercisable | 3 years 5 months 12 days |
4.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 4 |
Number outstanding at the end of the period (in shares) | 250 |
Weighted average remaining contractual life, outstanding | 2 years 3 months |
Number exercisable at the end of the period (in shares) | 200 |
Weighted average remaining contractual life, exercisable | 2 years 3 months |
4.03 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 4.03 |
Number outstanding at the end of the period (in shares) | 225 |
Weighted average remaining contractual life, outstanding | 1 year 29 days |
Number exercisable at the end of the period (in shares) | 225 |
Weighted average remaining contractual life, exercisable | 1 year 29 days |
4.31 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 4.31 |
Number outstanding at the end of the period (in shares) | 13 |
Weighted average remaining contractual life, outstanding | 2 years 5 months 12 days |
Number exercisable at the end of the period (in shares) | 10 |
Weighted average remaining contractual life, exercisable | 2 years 5 months 12 days |
4.65 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 4.65 |
Number outstanding at the end of the period (in shares) | 347 |
Weighted average remaining contractual life, outstanding | 3 years 2 months 8 days |
Number exercisable at the end of the period (in shares) | 208 |
Weighted average remaining contractual life, exercisable | 3 years 2 months 8 days |
4.90 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 4.90 |
Number outstanding at the end of the period (in shares) | 5 |
Weighted average remaining contractual life, outstanding | 1 year 7 months 2 days |
Number exercisable at the end of the period (in shares) | 5 |
Weighted average remaining contractual life, exercisable | 1 year 7 months 2 days |
4.95 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 4.95 |
Number outstanding at the end of the period (in shares) | 211 |
Weighted average remaining contractual life, outstanding | 2 months 8 days |
Number exercisable at the end of the period (in shares) | 211 |
Weighted average remaining contractual life, exercisable | 2 months 8 days |
5.17 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 5.17 |
Number outstanding at the end of the period (in shares) | 12 |
Weighted average remaining contractual life, outstanding | 2 years 5 months 12 days |
Number exercisable at the end of the period (in shares) | 10 |
Weighted average remaining contractual life, exercisable | 2 years 5 months 12 days |
Stockholders' Equity (Details)
Stockholders' Equity (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2020shares | ||
Common Stock | ||
Class of Stock [Line Items] | ||
Transfer of shares pledged as collateral (in shares) | 261 | [1] |
[1] | See Note 12 - Stockholders' Equity for more detail. |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings and Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income taxes effective tax rates | (1636.20%) | (8.40%) |
Components of (loss) earnings before income taxes | ||
United States | $ (1,839) | $ (3,948) |
Foreign jurisdictions | 1,403 | 17,093 |
Earnings (loss) before income taxes | (436) | 13,145 |
U.S. federal | ||
Current | 0 | 65 |
Deferred | 26 | 23 |
Total | 26 | 88 |
State and local | ||
Current | 217 | (27) |
Deferred | (15) | (5) |
Total | 202 | (32) |
Foreign jurisdictions | ||
Current | 6,100 | (1,934) |
Deferred | 806 | 769 |
Total | 6,906 | (1,165) |
Income tax (benefit) expense | ||
Current | 6,317 | (1,896) |
Deferred | 817 | 787 |
Income tax expense | $ 7,134 | $ (1,109) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes and Deferred Tax Assets & Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of income taxes based on the statutory U.S. federal income tax and the Company's effective income tax rate | ||
Statutory federal income tax (benefit) | $ (92) | $ 2,760 |
Foreign tax expense | 4,415 | 50 |
Change in the valuation allowance | (766) | 1,968 |
Net liability additions for uncertain tax positions | 1,713 | 1,183 |
Excess compensation | 129 | 0 |
State and local income taxes, net of federal income tax benefit | 202 | (32) |
Stock options | 122 | 94 |
Foreign intercompany loan adjustments | 764 | 185 |
Prior period adjustments | 499 | (1,821) |
Global intangible low-taxed income | 0 | 369 |
Non-deductible loss on bond | 0 | (1,667) |
Reversal of Construction Claims Group liability | 0 | (4,056) |
Other | 148 | (142) |
Total | 7,134 | (1,109) |
Deferred tax assets: | ||
Net operating loss carry forward - U.S. operations | 9,442 | 9,807 |
Net operating loss carry forward - foreign operations | 6,673 | 10,295 |
Compensated absences | 1,559 | 944 |
Foreign income taxes on currency translation | 3,315 | 5,543 |
Share-based compensation | 581 | 465 |
Allowance for doubtful accounts | 2,840 | 3,440 |
Labor contingencies | 6 | 261 |
Interest limitations | 1,144 | 1,659 |
Foreign tax credit | 115 | 292 |
Accrued expenses | 1,369 | 1,164 |
Other | 279 | 375 |
Total gross deferred tax assets | 27,323 | 34,245 |
Valuation allowances | (20,103) | (28,821) |
Net deferred tax assets | 7,220 | 5,424 |
Deferred tax liabilities: | ||
Intangible assets | (1,627) | (1,364) |
Depreciation | (317) | (86) |
Prepaid expenses | (465) | (434) |
Change in tax method | (570) | (284) |
Deferred income | 125 | |
Deferred income | (1,753) | |
Total gross deferred tax liabilities | (4,732) | (2,043) |
Deferred tax asset | 3,698 | 3,800 |
Deferred tax liability | (1,210) | (419) |
Net deferred tax assets | $ 2,488 | $ 3,381 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes to the Company's Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in uncertain tax positions | ||
Balance, beginning of year | $ 4,615 | $ 2,988 |
Reductions based on tax positions related to prior years | (162) | (702) |
Reduction due to settlements with taxing authorities | 0 | (960) |
Additions based on tax positions related to prior years | 1,875 | 3,289 |
Balance, end of year | 6,328 | 4,615 |
Additional disclosures | ||
Accrued interest and penalties related to accrued interest and penalties related to unrecognized tax benefits | $ 757 | 616 |
Maximum | ||
Additional disclosures | ||
Period for examination of tax returns for prior years net operating losses utilized in subsequent years tax returns | 3 years | |
Federal | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | $ 9,351 | 9,553 |
State | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 115,291 | 113,945 |
Foreign | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 32,014 | 46,630 |
Valuation allowance related to operating loss carryforwards | $ 8,541 | $ 16,073 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Feb. 08, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | |||
Maximum potential future payment under off-balance sheet arrangements | $ 67,382 | $ 74,597 | |
Decrease in revolving credit facilities | 8,794 | 8,780 | |
Cash held as collateral for the issuance of performance and advance payment bonds and letters of credit | 7,184 | $ 9,067 | |
Other liabilities | |||
Loss Contingencies [Line Items] | |||
Potential tax liability related to certain foreign subsidiaries | 1,323 | ||
Selling, general and administrative expense | |||
Loss Contingencies [Line Items] | |||
Tax liability expensed during period | $ 402 | ||
Performance Bond | |||
Loss Contingencies [Line Items] | |||
Loss on performance bond | $ 7,938 | ||
Arrangement average term | 1 year 1 month 6 days | ||
Letters of Guarantee | |||
Loss Contingencies [Line Items] | |||
Arrangement average term | 2 years 1 month 6 days | ||
Bid Bonds | |||
Loss Contingencies [Line Items] | |||
Arrangement average term | 3 months 18 days |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Leases with initial term of 12 months or less | $ 2,374 | $ 2,138 |
Rent expense | 8,294 | 9,079 |
Sublease income | 1,338 | $ 569 |
Accounts Payable and Accrued Liabilities | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, rent deferral | $ 586 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal option period | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal option period | 5 years |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Total Operating Lease Payments | |
2021 | $ 5,772 |
2022 | 4,491 |
2023 | 3,679 |
2024 | 2,735 |
2025 | 1,963 |
Thereafter | 2,958 |
Total minimum lease payments | 21,598 |
Less amount representing imputed interest | 3,260 |
Present value of lease obligations | $ 18,338 |
Weighted average remaining lease term (years) | 4 years 7 months 17 days |
Weighted average discount rate | 7.00% |
Total Financing Lease Payments | |
2021 | $ 75 |
2022 | 75 |
2023 | 75 |
2024 | 40 |
2025 | 0 |
Thereafter | 0 |
Total minimum lease payments | 265 |
Less amount representing imputed interest | 9 |
Present value of lease obligations | $ 256 |
Weighted average remaining lease term (years) | 3 years 6 months 14 days |
Weighted average discount rate | 2.10% |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Benefit Plans | ||
Eligibility criteria, minimum age | 21 years | |
Eligibility criteria, minimum term of service | 30 days | |
Matching contribution by employer as a percentage of employee compensation | 50.00% | |
Matching contribution by employer as a percentage of employee's considered compensation, maximum | 6.00% | |
Expense related to savings plan recognized | $ 706 | $ 2,151 |
Assumed discount rate (as a percent) | 0.90% | |
Assumed annual salary increase (as a percent) | 2.00% | |
Assumed annual employee turnover (as a percent) | 25.00% | |
Selling, general and administrative expense | ||
Benefit Plans | ||
Current period benefit expense | $ 2,456 | 2,269 |
Service costs | 1,819 | 1,962 |
Other liabilities | ||
Benefit Plans | ||
Fair value of projected benefits | $ 10,090 | $ 10,440 |
Segment and Related Informati_3
Segment and Related Information - Revenue by Geographic Region (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($)segment | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 1 | 1 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consulting fee revenue | $ 368,524 | $ 376,437 |
Percentage of billed accounts receivable | 100.00% | 100.00% |
Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of billed accounts receivable | 100.00% | 100.00% |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consulting fee revenue | $ 192,777 | $ 200,142 |
Percentage of billed accounts receivable | 52.40% | 53.10% |
Americas | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of billed accounts receivable | 52.40% | 53.10% |
Middle East/Asia/Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consulting fee revenue | $ 92,639 | $ 104,927 |
Percentage of billed accounts receivable | 25.10% | 27.90% |
Middle East/Asia/Pacific | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of billed accounts receivable | 25.10% | 27.90% |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consulting fee revenue | $ 53,819 | $ 43,488 |
Percentage of billed accounts receivable | 14.60% | 11.60% |
Europe | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of billed accounts receivable | 14.60% | 11.60% |
Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consulting fee revenue | $ 29,289 | $ 27,880 |
Percentage of billed accounts receivable | 7.90% | 7.40% |
Africa | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of billed accounts receivable | 7.90% | 7.40% |
United Arab Emirates | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consulting fee revenue | $ 39,353 | $ 37,904 |
Percentage of billed accounts receivable | 10.70% | 10.10% |
Segment and Related Informati_4
Segment and Related Information - Operating Profit (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit (loss) | $ 10,499 | $ 18,546 |
Corporate | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit (loss) | (41,706) | (39,260) |
Americas | Operating segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit (loss) | 31,959 | 27,834 |
Middle East/Asia/Pacific | Operating segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit (loss) | 9,287 | 13,782 |
Europe | Operating segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit (loss) | 5,558 | 4,955 |
Africa | Operating segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit (loss) | $ 5,401 | $ 11,235 |
Segment and Related Informati_5
Segment and Related Information - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization expense | $ 4,038 | $ 3,824 |
Operating segment | Project Management | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization expense | 1,385 | 3,791 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization expense | $ 2,653 | $ 33 |
Segment and Related Informati_6
Segment and Related Information - Revenue by Client Type (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Consulting fee revenue | $ 368,524 | $ 376,437 |
Percentage of billed accounts receivable | 100.00% | 100.00% |
U.S. federal government | ||
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Consulting fee revenue | $ 17,942 | $ 18,967 |
U.S. state, regional and local governments | ||
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Consulting fee revenue | 118,845 | 124,504 |
Foreign governments | ||
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Consulting fee revenue | 99,906 | 91,683 |
Private sector | ||
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Consulting fee revenue | $ 131,831 | $ 141,283 |
Customer Concentration Risk | ||
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Percentage of billed accounts receivable | 100.00% | 100.00% |
Customer Concentration Risk | U.S. federal government | ||
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Percentage of billed accounts receivable | 4.90% | 5.00% |
Customer Concentration Risk | U.S. state, regional and local governments | ||
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Percentage of billed accounts receivable | 32.20% | 33.10% |
Customer Concentration Risk | Foreign governments | ||
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Percentage of billed accounts receivable | 27.10% | 24.40% |
Customer Concentration Risk | Private sector | ||
Consulting Fee Revenue and Total Revenue By Client Type: | ||
Percentage of billed accounts receivable | 35.80% | 37.50% |
Segment and Related Informati_7
Segment and Related Information - Property, Plant and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 9,443 | $ 11,895 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 7,741 | 10,401 |
Middle East/Asia/Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 917 | 882 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 544 | 473 |
Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 241 | $ 139 |
Deconsolidation of Controllin_2
Deconsolidation of Controlling Interest in Subsidiaries (Details) - USD ($) $ in Thousands | Dec. 29, 2020 | Jun. 12, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Noncontrolling Interest [Line Items] | |||||
Assets | $ 271,999 | $ 269,551 | |||
Cash and cash equivalents | 34,229 | 15,915 | |||
Accounts receivable, net | 98,186 | 103,892 | |||
Property and equipment, net | 9,443 | 11,895 | |||
Other assets | 1,620 | 5,038 | |||
Liabilities | 162,711 | 159,323 | |||
Accounts payable and accrued expenses | 67,797 | 65,172 | |||
Long-term debt | 49,281 | 42,942 | |||
Equity | 109,288 | 110,228 | $ 94,445 | ||
Foreign currency translation adjustments, net of tax | (5,204) | 1,146 | |||
Gain (loss) on deconsolidation | (5,501) | $ 0 | |||
Hill International Brasil S.A. | |||||
Noncontrolling Interest [Line Items] | |||||
Accounts receivable, net | $ 116 | ||||
Accounts payable | 1,180 | ||||
Foreign currency translation adjustments, net of tax | $ 313 | 5,565 | |||
Gain (loss) on deconsolidation | (1,437) | (4,064) | |||
Gain (loss) on deconsolidation of net assets | (1,350) | ||||
Gain (loss) on eliminated capital | $ 226 | ||||
Hill International Brasil S.A. | |||||
Noncontrolling Interest [Line Items] | |||||
Assets | 1,901 | ||||
Cash and cash equivalents | 9 | ||||
Accounts receivable, net | 1,380 | ||||
Property and equipment, net | 295 | ||||
Other assets | 217 | ||||
Liabilities | 3,538 | ||||
Accounts payable and accrued expenses | 1,800 | ||||
Long-term debt | 365 | ||||
Deferred revenue | 132 | ||||
Other liabilities | 1,242 | ||||
Equity | (1,638) | ||||
Gain (loss) on liquidation of investment | (1,201) | ||||
Gain on deconsolidation before adjustments | $ 437 | ||||
Gain (loss) on deconsolidation | $ (5,501) |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts - Allowance for Uncollectible Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation and Qualifying Accounts | ||
Additions (Adjustments) to Allowance for Uncollectible Receivables | $ (274) | $ 7,422 |
Other | 650 | 388 |
SEC Schedule, 12-09, Allowance, Credit Loss | ||
Valuation and Qualifying Accounts | ||
Balance at Beginning of Fiscal Year | 59,131 | 71,277 |
Recoveries of Previously Reserved Receivables | (1,152) | (18,143) |
Deductions | (4,905) | (1,813) |
Balance at End of Fiscal Year | 53,450 | 59,131 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset | ||
Valuation and Qualifying Accounts | ||
Balance at Beginning of Fiscal Year | 28,821 | 37,591 |
Additions (Recoveries) Charged (Credited) to Earnings | 1,801 | 5,258 |
Deductions | (10,519) | (14,028) |
Balance at End of Fiscal Year | $ 20,103 | $ 28,821 |