Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 23, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Huron Consulting Group Inc. | |
Trading Symbol | HURN | |
Entity Central Index Key | 0001289848 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 22,883,027 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 8,526 | $ 33,107 | |
Receivables from clients, net | 104,674 | 109,677 | |
Costs in Excess of Billings, Current | 86,504 | 69,613 | |
Income tax receivable | 3,209 | 6,612 | |
Prepaid Expense and Other Assets, Current | 13,596 | 13,922 | |
Total current assets | 216,509 | 232,931 | |
Property and equipment, net | 38,359 | 40,374 | |
Deferred Tax Assets, Net, Noncurrent | 1,302 | 2,153 | |
Long-term investment | 54,038 | 50,429 | |
Operating Lease, Right-of-Use Asset | 53,805 | $ 56,463 | 0 |
Other non-current assets | 38,345 | 30,525 | |
Intangible assets, net | 43,461 | 47,857 | |
Goodwill | 645,541 | 645,263 | |
Total assets | 1,091,360 | 1,049,532 | |
Current liabilities: | |||
Accounts payable | 7,469 | 10,020 | |
Accrued expenses and other current liabilities | 16,611 | 14,650 | 17,207 |
Accrued payroll and related benefits | 53,966 | 109,825 | |
Business Combination, Contingent Consideration, Liability, Current | 10,014 | 9,991 | |
Long-term Debt, Current Maturities | 245,569 | 243,132 | |
Operating Lease, Liability, Current | 10,293 | 10,537 | 0 |
Deferred revenues | 30,023 | 28,130 | |
Total current liabilities | 373,945 | 418,305 | |
Non-current liabilities: | |||
Deferred compensation and other liabilities | 25,886 | 20,339 | 20,875 |
Business Combination, Contingent Consideration, Liability, Noncurrent | 1,115 | 1,450 | |
Long-term debt, net of current portion | 79,722 | 53,853 | |
Operating Lease, Liability, Noncurrent | 60,280 | 62,712 | 0 |
Operating lease liabilities, net of current portion | 0 | $ 0 | 13,693 |
Deferred income taxes, net | 759 | 732 | |
Total non-current liabilities | 167,762 | 90,603 | |
Commitments and contingencies | |||
Stockholders’ equity | |||
Common stock | 247 | 244 | |
Treasury stock | (126,983) | (124,794) | |
Additional paid-in capital | 457,748 | 452,573 | |
Retained earnings | 199,410 | 196,106 | |
Accumulated other comprehensive income | 19,231 | 16,495 | |
Total stockholders’ equity | 549,653 | 540,624 | |
Total liabilities and stockholders’ equity | $ 1,091,360 | $ 1,049,532 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (shares) | 25,275,901 | 25,114,739 |
Treasury stock, shares (shares) | 2,392,531 | 2,568,288 |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Other Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues and reimbursable expenses: | ||
Revenues | $ 204,445 | $ 193,679 |
Reimbursable expenses | 18,617 | 17,619 |
Total revenues and reimbursable expenses | 223,062 | 211,298 |
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses): | ||
Direct costs | 137,780 | 132,786 |
Amortization of intangible assets and software development costs | 1,117 | 1,218 |
Reimbursable expenses | 18,669 | 17,549 |
Total direct costs and reimbursable expenses | 157,566 | 151,553 |
Operating expenses and other losses (gains), net | ||
Selling, general and administrative expenses | 50,749 | 47,078 |
Restructuring charges | 1,275 | 712 |
Gain (Loss) Related To Litigation Settlement And Other Operating Gains | 456 | (830) |
Depreciation and amortization | 7,172 | 8,803 |
Total operating expenses and other losses (gains), net | 58,740 | 57,423 |
Operating income | 6,756 | 2,322 |
Other income (expense), net: | ||
Interest expense, net of interest income | (4,258) | (4,986) |
Other income (expense), net | 2,217 | (145) |
Total other expense, net | (2,041) | (5,131) |
Income (loss) from continuing operations before taxes | 4,715 | (2,809) |
Income tax expense | 1,365 | 413 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 3,350 | (3,222) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (46) | (42) |
Net income (loss) | $ 3,304 | $ (3,264) |
Net earnings (loss) per basic share: | ||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.15 | $ (0.15) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | 0 |
Basic (USD per share) | 0.15 | (0.15) |
Net earnings per diluted share: | ||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.15 | (0.15) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0 | 0 |
Earnings Per Share, Diluted | $ 0.15 | $ (0.15) |
Weighted average shares used in calculating earnings per share: | ||
Weighted average common shares outstanding – basic | 21,868 | 21,592 |
Weighted average common shares outstanding – diluted | 22,311 | 21,592 |
Comprehensive income (loss): | ||
Net income (loss) | $ 3,304 | $ (3,264) |
Foreign currency translation adjustments, net of tax | 316 | 34 |
Unrealized gain on investment, net of tax | 2,657 | 2,166 |
Unrealized gain (loss) on cash flow hedging instruments, net of tax | (237) | 432 |
Other comprehensive income | 2,736 | 2,632 |
Comprehensive income (loss) | $ 6,040 | $ (632) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance, shares at Dec. 31, 2017 | (24,098,822) | (2,591,135) | ||||
Beginning Balance at Dec. 31, 2017 | $ 503,316 | $ 241 | $ (121,994) | $ 434,256 | $ 180,443 | $ 10,370 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | (632) | (3,264) | 2,632 | |||
Issuance of common stock in connection with: | ||||||
Restricted stock awards, net of cancellations, shares | 198,546 | 34,177 | ||||
Restricted stock awards, net of cancellations | 0 | $ 2 | $ 1,443 | (1,445) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,000 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 234 | $ 0 | 234 | |||
Share-based compensation | 5,280 | 5,280 | ||||
Shares redeemed for employee tax withholdings, shares | (75,832) | |||||
Shares redeemed for employee tax withholdings | (2,684) | $ 2,684 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2014-09 [Member] | 1,956 | 1,956 | ||||
Ending Balance, shares at Mar. 31, 2018 | (24,307,368) | (2,632,790) | ||||
Ending Balance at Mar. 31, 2018 | 507,470 | $ 243 | $ (123,235) | 438,325 | 179,135 | 13,002 |
Beginning Balance, shares at Dec. 31, 2018 | (24,418,252) | (2,671,962) | ||||
Beginning Balance at Dec. 31, 2018 | 540,624 | $ 244 | $ (124,794) | 452,573 | 196,106 | 16,495 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 6,040 | 3,304 | 2,736 | |||
Issuance of common stock in connection with: | ||||||
Restricted stock awards, net of cancellations, shares | 254,550 | 27,612 | ||||
Restricted stock awards, net of cancellations | 0 | $ 3 | $ 2,196 | (2,199) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,000 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 234 | $ 0 | 234 | |||
Share-based compensation | 7,140 | 7,140 | ||||
Shares redeemed for employee tax withholdings, shares | (94,500) | |||||
Shares redeemed for employee tax withholdings | (4,385) | $ 4,385 | ||||
Ending Balance, shares at Mar. 31, 2019 | (24,682,802) | (2,738,850) | ||||
Ending Balance at Mar. 31, 2019 | $ 549,653 | $ 247 | $ (126,983) | $ 457,748 | $ 199,410 | $ 19,231 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 3,304 | $ (3,264) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 10,710 | 10,021 |
Operating Lease, Impairment Loss | 740 | 0 |
Share-based compensation | 5,366 | 4,483 |
Amortization of debt discount and issuance costs | 2,618 | 2,615 |
Allowances For Doubtful Accounts And Unbilled Services | 59 | 201 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (391) | 830 |
Changes in operating assets and liabilities, net of acquisitions: | ||
(Increase) decrease in receivables from clients, net | 5,129 | (4,452) |
(Increase) decrease in unbilled services, net | (16,850) | (15,991) |
(Increase) decrease in current income tax receivable / payable, net | 3,490 | (805) |
(Increase) decrease in other assets | (2,554) | (3,753) |
Increase (decrease) in accounts payable and other liabilities | 2,396 | 901 |
Increase (decrease) in accrued payroll and related benefits | (54,151) | (23,633) |
Increase (decrease) in deferred revenues | 1,845 | (3,416) |
Net cash used in operating activities | (38,289) | (36,263) |
Cash flows from investing activities: | ||
Purchases of property and equipment, net | (2,349) | (1,369) |
Investment in life insurance policies | (3,645) | (1,455) |
Purchases of businesses, net of cash acquired | 0 | (215) |
Capitalization of internally developed software costs | (2,093) | (728) |
Net cash used in investing activities | (8,087) | (3,767) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 234 | 234 |
Shares redeemed for employee tax withholdings | (4,385) | (2,684) |
Proceeds from borrowings under credit facility | 40,500 | 91,500 |
Repayments of debt | (14,627) | (58,124) |
Payments of Debt Issuance Costs | 0 | 1,385 |
Net cash provided by financing activities | 21,722 | 29,541 |
Effect of exchange rate changes on cash | 73 | 16 |
Net decrease in cash and cash equivalents | (24,581) | (10,473) |
Cash and cash equivalents at beginning of the period | 33,107 | 16,909 |
Cash and cash equivalents at end of the period | 8,526 | 6,436 |
Non-cash investing and financing activities: | ||
Property and equipment expenditures and capitalized software included in accounts payable and accrued expenses | 1,913 | 1,937 |
Contingent consideration related to business acquisitions | $ 0 | $ 212 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Huron is a global consultancy that helps clients drive growth, enhance performance and sustain leadership in the markets they serve. We partner with clients to develop strategies and implement solutions that enable the transformative change our clients need to own their future. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Significant Accounting Policies The accompanying unaudited consolidated financial statements reflect the financial position, results of operations, and cash flows as of and for the three months ended March 31, 2019 and 2018 . These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods presented in conformity with GAAP. These financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2018 included in our Annual Report on Form 10-K. Our results for any interim period are not necessarily indicative of results for a full year or any other interim period. On January 1, 2019, we adopted Accounting Standard Update ("ASU") 2016-02, Leases . Below is an update to our lease accounting policy as a result of the adoption. Refer to Note 3 "New Accounting Pronouncements" for additional information on the adoption of ASU 2016-02. Leases We determine if an arrangement contains a lease and the classification of such lease at inception. As of March 31, 2019, all of our material leases are classified as operating leases; we have not entered into any material finance leases. For all operating leases with an initial term greater than 12 months, we recognize an operating lease right-of-use ("ROU") asset and operating lease liability. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at lease commencement date and provided by Bank of America, N.A., the administrative agent for our senior secured credit facility, in determining the present value of lease payments. The operating lease ROU asset excludes lease incentives. Certain lease agreements contain variable lease payments that do not depend on an index or rate. These variable lease payments are not included in the calculation of the operating lease ROU asset and operating lease liability; instead, they are expensed as incurred. Certain lease agreements contain lease and nonlease components, which are accounted for separately. We separate the contract consideration between lease and nonlease components based on the relative standalone price of each component. Our leases may contain options to extend or terminate the lease, and we include these terms in our calculation of the operating lease ROU asset and operating lease liability when it is reasonably certain that we will exercise the option. Operating lease expense is recognized on a straight-line basis over the lease term and recorded within selling, general and administrative expenses on our consolidated statement of operations. In accordance with our accounting policy for impairment of long-lived assets, operating lease ROU assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group to which the operating lease ROU asset is assigned may not be recoverable. We evaluate the recoverability of the asset group based on forecasted undiscounted cash flows. See Note 5 "Leases" for additional information on our leases, including the lease impairment charge recorded in the first quarter of 2019. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In March 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases , as a new Topic, ASC 842, which superseded ASC Topic 840, Leases , and sets forth the principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record on the balance sheet a right-of-use asset and a lease liability, equal to the present value of the remaining lease payments, for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized using an effective interest rate method or on a straight-line basis over the term of the lease. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides an optional transition method that allows entities to initially apply ASC 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings on the adoption date. We adopted ASC 842 effective January 1, 2019 on a modified retrospective basis for existing leases using the transition method allowed by ASU 2018-11, which had no impact on our consolidated financial statements in the prior periods presented. The new lease standard has a material impact on our consolidated balance sheet upon adoption, but does not impact our consolidated statement of operations. The most significant impact to our consolidated balance sheet is the recognition of ROU assets and lease liabilities for operating leases. The impact of the new lease standard on our consolidated balance sheet upon adoption follows: As of December 31, 2018 ASC 842 Adjustment As of January 1, 2019 Assets Operating lease right-of-use assets $ — $ 56,463 $ 56,463 Liabilities Accrued expenses and other current liabilities $ 17,207 $ (2,557 ) $ 14,650 Current maturities of operating lease liabilities $ — $ 10,537 $ 10,537 Deferred compensation and other liabilities $ 20,875 $ (536 ) $ 20,339 Deferred lease incentives $ 13,693 $ (13,693 ) $ — Operating lease liabilities, net of current portion $ — $ 62,712 $ 62,712 Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies certain disclosure requirements related to fair value measurements. ASU 2018-13 will be effective for us beginning January 1, 2020, with early adoption permitted. We do not expect this guidance to have an impact on the amounts reported on our consolidated financial statements, and we are currently evaluating the potential impact this guidance will have on our disclosures within the notes to our consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The table below sets forth the changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2019 . Healthcare Business Advisory Education Total Balance as of December 31, 2018: Goodwill $ 636,810 $ 301,700 $ 102,829 $ 1,041,339 Accumulated impairment losses (208,081 ) (187,995 ) — (396,076 ) Goodwill, net as of December 31, 2018 428,729 113,705 102,829 645,263 Foreign currency translation — 278 — 278 Goodwill, net as of March 31, 2019 $ 428,729 $ 113,983 $ 102,829 $ 645,541 Intangible Assets Intangible assets as of March 31, 2019 and December 31, 2018 consisted of the following: As of March 31, 2019 As of December 31, 2018 Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 4 to 13 $ 98,338 $ 63,653 $ 98,235 $ 60,462 Trade names 5 to 6 28,930 23,859 28,930 23,181 Technology and software 3 to 5 5,694 3,211 5,694 2,842 Non-competition agreements 3 to 5 3,650 2,446 3,650 2,241 Favorable lease contract 3 720 702 720 646 Total $ 137,332 $ 93,871 $ 137,229 $ 89,372 Identifiable intangible assets with finite lives are amortized over their estimated useful lives. Customer relationships, as well as certain trade names and technology and software, are amortized on an accelerated basis to correspond to the cash flows expected to be derived from the assets. All other intangible assets with finite lives are amortized on a straight-line basis. Intangible asset amortization expense was $4.5 million and $6.3 million for the three months ended March 31, 2019 and 2018 , respectively. The table below sets forth the estimated annual amortization expense for the year ending December 31, 2019 and each of the five succeeding years for the intangible assets recorded as of March 31, 2019 . Year Ending December 31, Estimated Amortization Expense 2019 $ 17,206 2020 $ 12,083 2021 $ 8,064 2022 $ 6,090 2023 $ 3,512 2024 $ 741 Actual future amortization expense could differ from these estimated amounts as a result of future acquisitions, dispositions, and other factors. |
Leases Leases
Leases Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases We lease office space, data centers and certain equipment under operating leases expiring on various dates through 2028, with various renewal options that can extend the lease terms by one to ten years. Our operating leases include fixed payments plus, in some cases, scheduled base rent increases over the term of the lease. Certain leases require variable payments of real estate taxes and insurance. We exclude these variable payments from the measurements of our lease liabilities and expense them as incurred. Additionally, certain leases require payments for operating expenses applicable to the property. We account for these nonlease components separately from the lease components. No lease agreements contain any residual value guarantees or material restrictive covenants. As of March 31, 2019, we have not entered into any material finance leases. We sublease certain office spaces to third parties resulting from restructuring activities in certain locations. During the first quarter of 2019, we exited a portion of a corporate office space and determined that the carrying amount of the asset group to which the related operating lease right-of-use ("ROU") asset is assigned may not be recoverable. Therefore, we performed a long-lived asset impairment test on the asset group, which is comprised of the operating lease ROU asset and leasehold improvements of the office space. First, we tested the asset group for recoverability by comparing the undiscounted cash flows of the asset group, which included expected future lease and nonlease payments under the lease agreement offset by expected sublease income, to the carrying amount of the asset group. This first step of the long-lived asset impairment test concluded that the carrying amount of the asset group was not recoverable. Therefore, we performed the second step of the long-lived asset impairment test by comparing the fair value of the asset group to its carrying amount and recognizing a lease impairment charge for the amount by which the carrying amount exceeded the fair value. To estimate the fair value of the asset group, we relied on a discounted cash flow approach using market participant assumptions of the expected cash flows and discount rate. Based on the estimated fair value of the asset group, we recorded a $0.7 million lease impairment charge, of which $0.5 million was allocated to the operating lease ROU asset and $0.2 million was allocated to the leasehold improvements based on their relative carrying amounts. The $0.7 million lease impairment charge was recognized in restructuring charges on our consolidated statement of operations. See Note 9 "Restructuring Charges" for additional information on our restructuring activities. Additional information on our operating leases as of March 31, 2019 follows. Balance Sheet March 31, 2019 Operating lease right-of-use assets $ 53,805 Current maturities of operating lease liabilities $ 10,293 Operating lease liabilities, net of current portion 60,280 Total lease liabilities $ 70,573 Lease Cost Three Months Ended March 31, 2019 Operating lease cost $ 3,000 Short-term leases (1) 47 Variable lease costs 374 Sublease income (617 ) Net lease cost (2) $ 2,804 (1) Includes variable lease costs related to short-term leases. (2) Rent expense, including operating expenses, real estate taxes and insurance, recorded under ASC 840 for the three months ended March 31, 2018 was $3.9 million . The table below summarizes the remaining expected lease payments under our operating leases as of March 31, 2019 and December 31, 2018. Future Lease Payments March 31, 2019 December 31, 2018 (1, 2) 2019 $ 10,136 $ 13,701 2020 12,717 12,724 2021 11,595 11,590 2022 10,775 10,766 2023 10,711 10,707 Thereafter 27,035 27,033 Total operating lease payments $ 82,969 $ 86,521 Less: imputed interest (12,396 ) n/a Present value of operating lease liabilities $ 70,573 n/a (1) The expected lease payments as of December 31, 2018 represent our future minimum rental commitments as defined by ASC 840. (2) As of December 31, 2018, the expected total future minimum sublease income to be received was $10.2 million . Other Information Three Months Ended March 31, 2019 Cash paid for operating lease liabilities $ 3,554 Weighted average remaining lease term - operating leases 7.0 years Weighted average discount rate - operating leases 4.7 % During the first quarter of 2019, we entered into two new agreements to lease office space in Denver, Colorado and Bangalore, India. Both leases are expected to commence in the second quarter of 2019. |
Revenues Revenue
Revenues Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues For the three months ended March 31, 2019 and 2018, we recognized revenues of $204.4 million and $193.7 million , respectively. Of the $204.4 million recognized in the first quarter of 2019 , we recognized revenues of $3.9 million from obligations satisfied, or partially satisfied, in prior periods, due to the release of allowances on unbilled services due to securing contract amendments. During the first quarter of 2019, we recognized a $1.2 million decrease to revenues due to changes in the estimates of our variable consideration under performance-based billing arrangements. Of the $193.7 million recognized in the first quarter of 2018, we recognized revenues of $5.9 million from obligations satisfied, or partially satisfied, in prior periods, of which $3.1 million was primarily due to the release of allowances on unbilled services due to securing contract amendments and $2.8 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements. As of March 31, 2019 , we had $75.1 million of remaining performance obligations under engagements with original expected durations greater than one year. These remaining performance obligations exclude obligations under contracts with an original expected duration of one year or less, variable consideration which has been excluded from the total transaction price due to the constraint, and performance obligations under time-and-expense engagements which are recognized in the amount invoiced. Of the $75.1 million of performance obligations, we expect to recognize approximately $56.9 million as revenue in 2019 , $12.4 million in 2020 , and the remaining $5.8 million thereafter. Actual revenue recognition could differ from these amounts as a result of changes in the estimated timing of work to be performed, adjustments to estimated variable consideration in performance-based arrangements, or other factors. Contract Assets and Liabilities The payment terms and conditions in our customer contracts vary. Differences between the timing of billings and the recognition of revenue are recognized as either unbilled services or deferred revenues in the consolidated balance sheets. Unbilled services include revenues recognized for services performed but not yet billed to clients. Services performed that we are not yet entitled to bill because certain events, such as the completion of the measurement period or client approval in performance-based engagements, must occur are recorded as contract assets and included within unbilled services, net. The contract asset balance as of March 31, 2019 and December 31, 2018 was $3.7 million and $9.1 million , respectively. The $5.4 million decrease primarily reflects timing differences between the completion of our performance obligations and the amounts billed or billable to clients in accordance with their contractual billing terms. Client prepayments and retainers are classified as deferred revenues and recognized over future periods in accordance with the applicable engagement agreement and our revenue recognition policy. Our deferred revenues balance as of March 31, 2019 and December 31, 2018 , was $30.0 million and $28.1 million , respectively. The $1.9 million increase primarily reflects timing differences between client payments in accordance with their contract terms and the completion of our performance obligations. For the three months ended March 31, 2019 , $11.7 million of revenues recognized were included in the deferred revenue balance as of December 31, 2018 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period, excluding unvested restricted common stock. Diluted earnings per share reflects the potential reduction in earnings per share that could occur if securities or other contracts to issue common stock were exercised or converted into common stock under the treasury stock method. Such securities or other contracts include unvested restricted stock awards, outstanding common stock options, convertible senior notes, and outstanding warrants, to the extent dilutive. In periods for which we report a net loss from continuing operations, diluted weighted average common shares outstanding excludes all potential common stock equivalents as their impact on diluted net loss from continuing operations per share would be anti-dilutive. Earnings (loss) per share under the basic and diluted computations are as follows: Three Months Ended 2019 2018 Net income (loss) from continuing operations $ 3,350 $ (3,222 ) Loss from discontinued operations, net of tax (46 ) (42 ) Net income (loss) $ 3,304 $ (3,264 ) Weighted average common shares outstanding – basic 21,868 21,592 Weighted average common stock equivalents 443 — Weighted average common shares outstanding – diluted 22,311 21,592 Net earnings (loss) per basic share: Net income (loss) from continuing operations $ 0.15 $ (0.15 ) Loss from discontinued operations, net of tax — — Net income (loss) $ 0.15 $ (0.15 ) Net earnings (loss) per diluted share: Net income (loss) from continuing operations $ 0.15 $ (0.15 ) Loss from discontinued operations, net of tax — — Net income (loss) $ 0.15 $ (0.15 ) The number of anti-dilutive securities excluded from the computation of the weighted average common stock equivalents presented above were as follows: As of March 31, 2019 2018 Unvested restricted stock awards 12 723 Outstanding common stock options — 184 Convertible senior notes 3,129 3,129 Warrants related to the issuance of convertible senior notes 3,129 3,129 Total anti-dilutive securities 6,270 7,165 See Note 8 “Financing Arrangements” for further information on the convertible senior notes and warrants related to the issuance of convertible notes. We currently have a share repurchase program permitting us to repurchase up to $125 million of our common stock through October 31, 2019 (the “Share Repurchase Program”). The amount and timing of the repurchases will be determined by management and will depend on a variety of factors, including the trading price of our common stock, capacity under our credit facility, general market and business conditions, and applicable legal requirements. No shares were repurchased during the first three months of 2019 and 2018. As of March 31, 2019 , $35.1 million remains available for share repurchases. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements A summary of the carrying amounts of our debt follows: March 31, 2019 December 31, 2018 1.25% convertible senior notes due 2019 $ 245,051 $ 242,617 Senior secured credit facility 76,000 50,000 Promissory note due 2024 4,240 4,368 Total long-term debt $ 325,291 $ 296,985 Current maturities of long-term debt (245,569 ) (243,132 ) Long-term debt, net of current portion $ 79,722 $ 53,853 Below is a summary of the scheduled remaining principal payments of our debt as of March 31, 2019 . Principal Payments of Long-Term Debt 2019 $ 250,387 2020 $ 529 2021 $ 544 2022 $ 559 2023 $ 76,575 Thereafter $ 1,646 Convertible Notes In September 2014, the Company issued $250 million principal amount of 1.25% convertible senior notes due 2019 (the “Convertible Notes”) in a private offering. The Convertible Notes are governed by the terms of an indenture between the Company and U.S. Bank National Association, as Trustee (the “Indenture”). The Convertible Notes are senior unsecured obligations of the Company and will pay interest semi-annually on April 1 and October 1 of each year at an annual rate of 1.25% . The Convertible Notes will mature on October 1, 2019 , unless earlier repurchased by the Company or converted in accordance with their terms. We expect to refinance the principal amount of the outstanding Convertible Notes at maturity with the borrowing capacity available under our revolving credit facility. Upon conversion, the Convertible Notes will be settled, at our election, in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. Our current intent and policy is to settle conversions with a combination of cash and shares of common stock with the principal amount of the Convertible Notes paid in cash, in accordance with the settlement provisions of the Indenture. The initial conversion rate for the Convertible Notes is 12.5170 shares of our common stock per $1,000 principal amount of the Convertible Notes, which is equal to an initial conversion price of approximately $79.89 per share of our common stock. The conversion rate will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest, except in certain limited circumstances described in the Indenture. Upon the occurrence of a “make-whole fundamental change” (as defined in the Indenture) the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Convertible Notes in connection with such make-whole fundamental change. Additionally, if the Company undergoes a “fundamental change” (as defined in the Indenture), a holder will have the option to require the Company to repurchase all or a portion of its Convertible Notes for cash at a price equal to 100% of the principal amount of the Convertible Notes being repurchased plus any accrued and unpaid interest. As discussed below, the convertible note hedge transactions and warrants, which were entered into in connection with the Convertible Notes, effectively raise the price at which economic dilution would occur from the initial conversion price of approximately $79.89 to approximately $97.12 per share. Holders of the Convertible Notes may convert their Convertible Notes at their option at any time prior to July 1, 2019 , only under the following circumstances: • during any calendar quarter (and only during such calendar quarter) commencing after December 31, 2014 if, for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter, the last reported sale price of the Company’s common stock for such trading day is equal to or greater than 130% of the applicable conversion price on such trading day; • during the five consecutive business day period immediately following any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which, for each trading day of the measurement period, the “trading price” (as defined in the Indenture) per $1,000 principal amount of the Convertible Notes for such trading day was less than 98% of the product of the last reported sale price of the Company’s common stock for such trading day and the applicable conversion rate on such trading day; or • upon the occurrence of specified corporate transactions described in the Indenture. On or after July 1, 2019 until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or a portion of its Convertible Notes, regardless of the foregoing circumstances. We have separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar liability that does not have an associated convertible feature, assuming our non-convertible debt borrowing rate. The carrying value of the equity component representing the conversion option, which is recognized as a debt discount, was determined by deducting the fair value of the liability component from the proceeds of the Convertible Notes. The debt discount is amortized to interest expense using an effective interest rate of 4.751% over the term of the Convertible Notes. As of March 31, 2019 , the remaining life of the Convertible Notes is six months . The equity component will not be remeasured as long as it continues to meet the conditions for equity classification. The transaction costs related to the issuance of the Convertible Notes were separated into liability and equity components based on their relative values, as determined above. Transaction costs attributable to the liability component are recorded as a deduction to the carrying amount of the liability and amortized to interest expense over the term of the Convertible Notes; and transaction costs attributable to the equity component are netted with the equity component of the Convertible Notes in stockholders’ equity. Total debt issuance costs were approximately $7.3 million , of which $6.2 million was allocated to liability issuance costs and $1.1 million was allocated to equity issuance costs. As of March 31, 2019 and December 31, 2018 , the Convertible Notes consisted of the following: March 31, 2019 December 31, 2018 Liability component: Proceeds $ 250,000 $ 250,000 Less: debt discount, net of amortization (4,316 ) (6,436 ) Less: debt issuance costs, net of amortization (633 ) (947 ) Net carrying amount $ 245,051 $ 242,617 Equity component (1) $ 39,287 $ 39,287 (1) Included in additional paid-in capital on the consolidated balance sheet. The following table presents the amount of interest expense recognized related to the Convertible Notes for the periods presented. Three Months Ended 2019 2018 Contractual interest coupon $ 781 $ 781 Amortization of debt discount 2,120 2,021 Amortization of debt issuance costs 315 309 Total interest expense $ 3,216 $ 3,111 In connection with the issuance of the Convertible Notes, we entered into convertible note hedge transactions and warrant transactions. The convertible note hedge transactions are intended to reduce the potential future economic dilution associated with the conversion of the Convertible Notes and, combined with the warrants, effectively raise the price at which economic dilution would occur from the initial conversion price of approximately $79.89 to approximately $97.12 per share. For purposes of the computation of diluted earnings per share in accordance with GAAP, dilution will occur when the average share price of our common stock for a given period exceeds the conversion price of the Convertible Notes, which initially is equal to approximately $79.89 per share. The convertible note hedge transactions and warrant transactions are discussed separately below. • Convertible Note Hedge Transactions . In connection with the issuance of the Convertible Notes, the Company entered into convertible note hedge transactions whereby the Company has call options to purchase a total of approximately 3.1 million shares of the Company’s common stock, which is the number of shares initially issuable upon conversion of the Convertible Notes in full, at a price of approximately $79.89 , which corresponds to the initial conversion price of the Convertible Notes, subject to customary anti-dilution adjustments substantially similar to those in the Convertible Notes. The convertible note hedge transactions are exercisable upon conversion of the Convertible Notes and will expire in 2019 if not earlier exercised. We paid an aggregate amount of $42.1 million for the convertible note hedge transactions, which was recorded as additional paid-in capital on the consolidated balance sheet. The convertible note hedge transactions are separate transactions and are not part of the terms of the Convertible Notes. • Warrants. In connection with the issuance of the Convertible Notes, the Company sold warrants whereby the holders of the warrants have the option to purchase a total of approximately 3.1 million shares of the Company’s common stock at a strike price of approximately $97.12 . The warrants will expire incrementally on 100 different dates from January 6, 2020 to May 28, 2020 and are exercisable at each such expiry date. If the average market value per share of our common stock for the reporting period exceeds the strike price of the warrants, the warrants will have a dilutive effect on our earnings per share. We received aggregate proceeds of $23.6 million from the sale of the warrants, which was recorded as additional paid-in capital on the consolidated balance sheet. The warrants are separate transactions and are not part of the terms of the Convertible Notes or the convertible note hedge transactions. The Company recorded an initial deferred tax liability of $15.4 million in connection with the debt discount associated with the Convertible Notes and recorded an initial deferred tax asset of $16.5 million in connection with the convertible note hedge transactions. The deferred tax liability and deferred tax asset are included in deferred income taxes, net on the consolidated balance sheets. Senior Secured Credit Facility The Company has a $500 million five -year senior secured revolving credit facility, subject to the terms of a Second Amended and Restated Credit Agreement dated as of March 31, 2015, as amended to date (as amended and modified the "Amended Credit Agreement"), that becomes due and payable in full upon maturity on March 23, 2023 . The Amended Credit Agreement provides the option to increase the revolving credit facility or establish term loan facilities in an aggregate amount of up to $150 million , subject to customary conditions and the approval of any lender whose commitment would be increased, resulting in a maximum available principal amount under the Amended Credit Agreement of $650 million . The initial borrowings under the Amended Credit Agreement were used to refinance borrowings outstanding under a prior credit agreement, and future borrowings under the Amended Credit Agreement may be used for working capital, capital expenditures, acquisitions of businesses, share repurchases, and general corporate purposes. Fees and interest on borrowings vary based on our Consolidated Leverage Ratio (as defined in the Amended Credit Agreement). At our option, borrowings under the Amended Credit Agreement will bear interest at one, two, three or six-month LIBOR or an alternate base rate, in each case plus the applicable margin. The applicable margin will fluctuate between 1.25% per annum and 2.00% per annum, in the case of LIBOR borrowings, or between 0.25% per annum and 1.00% per annum, in the case of base rate loans, based upon our Consolidated Leverage Ratio at such time. Amounts borrowed under the Amended Credit Agreement may be prepaid at any time without premium or penalty. We are required to prepay the amounts outstanding under the Amended Credit Agreement in certain circumstances, including a requirement to pay all amounts outstanding under the Amended Credit Agreement 90 days prior to the Convertible Indebtedness Maturity Date (as defined in the Amended Credit Agreement) unless (1) the Convertible Indebtedness Maturity Date is waived or extended to a later date, (2) the Company can demonstrate (a) Liquidity (as defined in the Amended Credit Agreement) in an amount at least equal to the principal amount due on the Convertible Indebtedness Maturity Date, and (b) financial covenant compliance after giving effect to such payments and any additional indebtedness incurred on a pro forma basis, or (3) this requirement is waived by the Required Lenders (as defined in the Amended Credit Agreement). In addition, we have the right to permanently reduce or terminate the unused portion of the commitments provided under the Amended Credit Agreement at any time. The loans and obligations under the Amended Credit Agreement are secured pursuant to a Second Amended and Restated Security Agreement and a Second Amended and Restated Pledge Agreement (the “Pledge Agreement”) with Bank of America, N.A. as collateral agent, pursuant to which the Company and the subsidiary guarantors grant Bank of America, N.A., for the ratable benefit of the lenders under the Amended Credit Agreement, a first-priority lien, subject to permitted liens, on substantially all of the personal property assets of the Company and the subsidiary guarantors, and a pledge of 100% of the stock or other equity interests in all domestic subsidiaries and 65% of the stock or other equity interests in each “material first-tier foreign subsidiary” (as defined in the Pledge Agreement). The Amended Credit Agreement contains usual and customary representations and warranties; affirmative and negative covenants, which include limitations on liens, investments, additional indebtedness, and restricted payments; and two quarterly financial covenants as follows: (i) a maximum Consolidated Leverage Ratio (defined as the ratio of debt to consolidated EBITDA) ranging from 3.50 to 1.00 to 4.00 to 1.00, depending on the measurement period, and (ii) a minimum Consolidated Interest Coverage Ratio (defined as the ratio of consolidated EBITDA to interest) of 3.50 to 1.00. Consolidated EBITDA for purposes of the financial covenants is calculated on a continuing operations basis and includes adjustments to add back non-cash goodwill impairment charges, share-based compensation costs, certain non-cash restructuring charges, pro forma historical EBITDA for businesses acquired, and other specified items in accordance with the Amended Credit Agreement. At March 31, 2019 , we were in compliance with these financial covenants with a Consolidated Leverage Ratio of 2.99 to 1.00 and a Consolidated Interest Coverage Ratio of 12.08 to 1.00. Borrowings outstanding under the Amended Credit Agreement at March 31, 2019 totaled $76.0 million . These borrowings carried a weighted average interest rate of 4.5% , including the effect of the interest rate swap described in Note 10 “Derivative Instrument and Hedging Activity." Borrowings outstanding under the Amended Credit Agreement at December 31, 2018 were $50.0 million and carried a weighted average interest rate of 3.7% , including the effect of the interest rate swap described in Note 10 “Derivative Instrument and Hedging Activity." The borrowing capacity under the revolving credit facility is reduced by any outstanding borrowings under the revolving credit facility and outstanding letters of credit. At March 31, 2019 , we had outstanding letters of credit totaling $1.6 million , which are primarily used as security deposits for our office facilities. As of March 31, 2019 , the unused borrowing capacity under the revolving credit facility was $422.4 million . Promissory Note due 2024 On June 30, 2017, in conjunction with our purchase of an aircraft related to the acquisition of Innosight, we assumed, from the sellers of the aircraft, a promissory note with an outstanding principal balance of $5.1 million . The principal balance of the promissory note is subject to scheduled monthly principal payments until the maturity date of March 1, 2024 , at which time a final payment of $1.5 million , plus any accrued and unpaid interest, will be due. Under the terms of the promissory note, we will pay interest on the outstanding principal amount at a rate of one -month LIBOR plus 1.97% per annum. The obligations under the promissory note are secured pursuant to a Loan and Aircraft Security Agreement with Banc of America Leasing & Capital, LLC, which grants the lender a first priority security interest in the aircraft. At March 31, 2019 , the outstanding principal amount of the promissory note was $4.2 million . As of March 31, 2019 , the aircraft had a carrying amount of $5.6 million . At December 31, 2018 , the outstanding principal amount of the promissory note was $4.4 million , and the aircraft had a carrying amount of $5.8 million . |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges for the first three months of 2019 totaled $1.3 million , compared to $0.7 million for the first three months of 2018 . During the first quarter of 2019, we exited a portion of our Lake Oswego, Oregon corporate office resulting in a $0.7 million lease impairment charge on the related operating lease right-of-use asset and leasehold improvements and $0.2 million of accelerated depreciation on related furniture and fixtures. The lease impairment charge was recognized in accordance with ASC 842, Leases , which we adopted on a modified retrospective basis on January 1, 2019. See Note 2 "Basis of Presentation and Significant Accounting Policies" and Note 3 "New Accounting Pronouncements" for additional information on our adoption of ASC 842. See Note 5 "Leases" for additional information on the long-lived asset impairment test performed in the first quarter of 2019. Additionally, we recognized a $0.2 million restructuring charge in the first quarter of 2019 related to workforce reductions in our corporate operations. The $0.7 million restructuring charge incurred in the first three months of 2018 primarily related to updated lease assumptions for our San Francisco office vacated in the second quarter of 2017, which was accounted for in accordance with ASC 840, Leases . The table below sets forth the changes in the carrying amount of our restructuring charge liability by restructuring type for the three months ended March 31, 2019 . Employee Costs Office Space Reductions Total Balance as of December 31, 2018 $ 443 $ 2,468 $ 2,911 Adoption of ASC 842 (1) — (1,119 ) (1,119 ) Balance as of January 1, 2019 443 1,349 1,792 Additions (2) 247 289 536 Payments (435 ) (371 ) (806 ) Adjustments (3) (2 ) 65 63 Non-cash items — (249 ) (249 ) Balance as of March 31, 2019 $ 253 $ 1,083 $ 1,336 (1) Upon adoption of ASC 842 on January 1, 2019, we reclassified the restructuring charge liabilities, which represented the present value of remaining lease payments, net of estimated sublease income, for vacated office spaces from restructuring charge liabilities to operating lease right-of-use assets. See Note 3 "New Accounting Pronouncements" for additional information on the impact of adoption. (2) Additions for the three months ended March 31, 2019 excludes the $0.7 million lease impairment charge recognized as restructuring charges on our consolidated statement of operations. See Note 5 "Leases" within the notes to our consolidated financial statements for additional information on the long-lived asset impairment test performed in the first quarter of 2019. (3) Adjustments for the three months ended March 31, 2019 includes restructuring charges of $0.1 million related to updated operating expense assumptions for vacated office spaces directly related to discontinued operations. As of March 31, 2019 , our restructuring charge liability related to office space reductions of $1.1 million represented the present value of the remaining estimated operating expense payments for vacated office spaces, primarily in Chicago, Illinois; Washington, D.C.; and Middleton, Wisconsin. This restructuring charge liability is included as a component of accrued expenses and other current liabilities and deferred compensation and other liabilities. All of the $0.3 million restructuring charge liability related to employee costs at March 31, 2019 is expected to be paid in the next 12 months. The restructuring charge liability related to employee costs is included as a component of accrued payroll and related benefits. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activity | Derivative Instrument and Hedging Activity On June 22, 2017, we entered into a forward interest rate swap agreement effective August 31, 2017 and ending August 31, 2022 , with a notional amount of $50.0 million . We entered into this derivative instrument to hedge against the interest rate risks of our variable-rate borrowings. Under the terms of the interest rate swap agreement, we receive from the counterparty interest on the notional amount based on one -month LIBOR and we pay to the counterparty a fixed rate of 1.900% . We recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. We have designated this derivative instrument as a cash flow hedge. Therefore, changes in the fair value of the derivative instrument are recorded to other comprehensive income (“OCI”) and reclassified into interest expense upon settlement. As of March 31, 2019 , it was anticipated that $0.2 million of the gains, net of tax, currently recorded in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. The table below sets forth additional information relating to the interest rate swap designated as a cash flow hedging instrument as of March 31, 2019 and December 31, 2018 . Fair Value (Derivative Asset and Liability) Balance Sheet Location March 31, December 31, Prepaid expenses and other current assets $ 240 $ 302 Other non-current assets $ 192 $ 451 All of our derivative instruments are transacted under the International Swaps and Derivatives Association (ISDA) master agreements. These agreements permit the net settlement of amounts owed in the event of default and certain other termination events. Although netting is permitted, it is our policy to record all derivative assets and liabilities on a gross basis on our consolidated balance sheet. We do not use derivative instruments for trading or other speculative purposes. Refer to Note 12 “Other Comprehensive Income (Loss)” for additional information on our derivative instrument. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Certain of our assets and liabilities are measured at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value and requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy consists of three levels based on the objectivity of the inputs as follows: Level 1 Inputs Quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Inputs Unobservable inputs for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. The table below sets forth our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 . Level 1 Level 2 Level 3 Total March 31, 2019 Assets: Interest rate swap $ — $ 432 $ — $ 432 Convertible debt investment — — 54,038 54,038 Deferred compensation assets — 23,918 — 23,918 Total assets $ — $ 24,350 $ 54,038 $ 78,388 Liabilities: Contingent consideration for business acquisitions $ — $ — $ 11,129 $ 11,129 Total liabilities $ — $ — $ 11,129 $ 11,129 December 31, 2018 Assets: Interest rate swap $ — $ 753 $ — $ 753 Convertible debt investment — — 50,429 50,429 Deferred compensation assets — 18,205 — 18,205 Total assets $ — $ 18,958 $ 50,429 $ 69,387 Liabilities: Contingent consideration for business acquisitions $ — $ — $ 11,441 $ 11,441 Total liabilities $ — $ — $ 11,441 $ 11,441 Interest rate swap: The fair value of our interest rate swap was derived using estimates to settle the interest rate swap agreement, which is based on the net present value of expected future cash flows on each leg of the swap utilizing market-based inputs and a discount rate reflecting the risks involved. Convertible debt investment: In 2014 and 2015, we invested $27.9 million , in the form of zero coupon convertible debt, in Shorelight Holdings, LLC (“Shorelight”), the parent company of Shorelight Education, a U.S.-based company that partners with leading universities to increase access to and retention of international students, boost institutional growth, and enhance an institution’s global footprint. The notes will mature on July 1, 2020 , unless converted earlier. To determine the appropriate accounting treatment for our investment, we performed a variable interest entity (“VIE”) analysis and concluded that Shorelight does not meet the definition of a VIE. We also reviewed the characteristics of our investment to confirm that the convertible notes are not in-substance common stock that would warrant equity method accounting. After we reviewed all of the terms of the investment, we concluded the appropriate accounting treatment to be that of an available-for-sale debt security. The convertible debt investment is carried at fair value with unrealized holding gains and losses excluded from earnings and reported in other comprehensive income. We estimate the fair value of our investment using a Monte Carlo simulation model, cash flow projections discounted at a risk-adjusted rate, and certain assumptions related to equity volatility and applicable holding period, all of which are Level 3 inputs. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of the investment, which would result in different impacts to our consolidated balance sheet and comprehensive income. Actual results may differ from our estimates. The fair value of the convertible debt investment is recorded in long-term investment on our consolidated balance sheets. The table below sets forth the changes in the balance of the convertible debt investment for the three months ended March 31, 2019 . Convertible Debt Investment Balance as of December 31, 2018 $ 50,429 Change in fair value of convertible debt investment 3,609 Balance as of March 31, 2019 $ 54,038 Deferred compensation assets: We have a non-qualified deferred compensation plan (the "Plan") for the members of our board of directors and a select group of our employees. The deferred compensation liability is funded by the Plan assets, which consist of life insurance policies maintained within a trust. The cash surrender value of the life insurance policies approximates fair value and is based on third-party broker statements which provide the fair value of the life insurance policies' underlying investments, which are Level 2 inputs. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The Plan assets are included in other non-current assets on our consolidated balance sheets. Realized and unrealized gains (losses) from the deferred compensation assets are recorded to other income (expense), net in our consolidated statements of operations. Contingent consideration for business acquisitions: We estimate the fair value of acquisition-related contingent consideration using either a probability-weighted assessment of the specific financial performance targets being achieved or a Monte Carlo simulation model, as appropriate. These fair value measurements are based on significant inputs not observable in the market and thus represent Level 3 inputs. The significant unobservable inputs used in the fair value measurements of our contingent consideration are our measures of the estimated payouts based on internally generated financial projections on a probability-weighted basis and discount rates, which typically reflect a risk-free rate. The fair value of the contingent consideration is reassessed quarterly based on assumptions used in our latest projections and input provided by practice leaders and management. Any change in the fair value estimate is recorded in our consolidated statement of operations for that period. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of our contingent consideration liability, which would result in different impacts to our consolidated balance sheets and consolidated statements of operations. Actual results may differ from our estimates. The table below sets forth the changes in the balance of the contingent consideration for business acquisitions for the three months ended March 31, 2019 . Contingent Consideration for Business Acquisitions Balance as of December 31, 2018 $ 11,441 Remeasurement of contingent consideration for business acquisitions (391 ) Unrealized loss due to foreign currency translation 79 Balance as of March 31, 2019 $ 11,129 Financial assets and liabilities not recorded at fair value are as follows: Senior Secured Credit Facility The carrying value of our borrowings outstanding under our senior secured credit facility is stated at cost. Our carrying value approximates fair value, using Level 2 inputs, as the senior secured credit facility bears interest at variable rates based on current market rates as set forth in the Amended Credit Agreement. Refer to Note 8 “Financing Arrangements” for additional information on our senior secured credit facility. Promissory Note due 2024 The carrying value of our promissory note due 2024 is stated at cost. Our carrying value approximates fair value, using Level 2 inputs, as the promissory note bears interest at rates based on current market rates as set forth in the terms of the promissory note. Refer to Note 8 “Financing Arrangements” for additional information on our promissory note due 2024. Convertible Notes The carrying amount and estimated fair value of the Convertible Notes are as follows: March 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Estimated 1.25% convertible senior notes due 2019 $ 245,051 $ 246,190 $ 242,617 $ 242,940 The differences between the $250 million principal amount of the Convertible Notes and the carrying amounts shown above represent the unamortized debt discount and issuance costs. As of March 31, 2019 and December 31, 2018 , the carrying value of the equity component of $39.3 million was unchanged from the date of issuance. Refer to Note 8 “Financing Arrangements” for additional information on our Convertible Notes. The estimated fair value of the Convertible Notes was determined based on the quoted bid price of the Convertible Notes in an over-the-counter market, which is a Level 2 input, on the last day of trading for the quarters ended March 31, 2019 and December 31, 2018 . Based on the closing price of our common stock of $47.22 on March 31, 2019 , the if-converted value of the Convertible Notes was less than the principal amount. Cash and cash equivalents are stated at cost, which approximates fair market value. The carrying values of all other financial instruments not described above reasonably approximate fair market value due to the nature of the financial instruments and the short-term maturity of these items. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The table below sets forth the components of other comprehensive income (loss), net of tax, for the three months ended March 31, 2019 and 2018 . Three Months Ended Three Months Ended Before Tax Net of Before Tax Net of Other comprehensive income (loss): Foreign currency translation adjustments $ 316 $ — $ 316 $ 34 $ — $ 34 Unrealized gain on investment $ 3,609 $ (952 ) $ 2,657 $ 2,927 $ (761 ) $ 2,166 Unrealized gain (loss) on cash flow hedges: Change in fair value $ (247 ) $ 65 $ (182 ) $ 545 $ (141 ) $ 404 Reclassification adjustments into earnings (74 ) 19 (55 ) 38 (10 ) 28 Net unrealized gain (loss) $ (321 ) $ 84 $ (237 ) $ 583 $ (151 ) $ 432 Other comprehensive income $ 3,604 $ (868 ) $ 2,736 $ 3,544 $ (912 ) $ 2,632 The before tax amounts reclassified from accumulated other comprehensive income related to our cash flow hedges are recorded to interest expense, net of interest income. Accumulated other comprehensive income, net of tax, includes the following components: Foreign Currency Translation Available-for-Sale Investment Cash Flow Hedges Total Balance, December 31, 2018 $ (665 ) $ 16,584 $ 576 $ 16,495 Current period change 316 2,657 (237 ) 2,736 Balance, March 31, 2019 $ (349 ) $ 19,241 $ 339 $ 19,231 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2019 , our effective tax rate was 29.0% as we recognized income tax expense from continuing operations of $1.4 million on income from continuing operations of $4.7 million . The effective tax rate of 29.0% was less favorable than the statutory rate, inclusive of state income taxes, of 26.4% primarily due to $0.5 million of foreign losses with no tax benefit, which had an unfavorable impact of 2.9% on the effective tax rate; and $0.1 million of additional tax expense related to disallowed executive compensation deductions, which had an unfavorable impact of 1.8% on the effective tax rate. These unfavorable adjustments to our effective tax rate were partially offset by $0.1 million of discrete tax benefit for share-based compensation awards that vested during the first quarter of 2019 and which had a favorable impact of 1.8% on the effective tax rate. For the three months ended March 31, 2018 , our effective tax rate was (14.7)% as we recognized income tax expense from continuing operations of $0.4 million on a loss from continuing operations of $2.8 million . The effective tax rate of (14.7)% was less favorable than the statutory rate, inclusive of state income taxes, of 26.0% primarily due to discrete tax expense for share-based compensation awards that vested during the first quarter of 2018 and which had an unfavorable impact of 43.7% on the effective tax rate. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Litigation From time to time, we are involved in legal proceedings and litigation arising in the ordinary course of business. As of the date of this Quarterly Report on Form 10-Q, we are not a party to any litigation or legal proceeding that, in the current opinion of management, could have a material adverse effect on our financial position or results of operations. However, due to the risks and uncertainties inherent in legal proceedings, actual results could differ from current expected results. Guarantees Guarantees in the form of letters of credit totaling $1.6 million were outstanding at both March 31, 2019 and December 31, 2018 , primarily to support certain office lease obligations. In connection with certain business acquisitions, we may be required to pay post-closing consideration to the sellers if specific financial performance targets are met over a number of years as specified in the related purchase agreements. As of March 31, 2019 and December 31, 2018 , the total estimated fair value of our contingent consideration liabilities was $11.1 million and $11.4 million , respectively. To the extent permitted by law, our bylaws and articles of incorporation require that we indemnify our officers and directors against judgments, fines and amounts paid in settlement, including attorneys’ fees, incurred in connection with civil or criminal action or proceedings, as it relates to their services to us if such person acted in good faith. Although there is no limit on the amount of indemnification, we may have recourse against our insurance carrier for certain payments made. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker, who is our chief executive officer, manages the business under three operating segments, which are our reportable segments: Healthcare, Business Advisory, and Education. • Healthcare Our Healthcare segment has a depth of expertise in care transformation, financial and operational excellence, technology and analytics, and leadership development. We serve national and regional hospitals and integrated health systems, academic medical centers, community hospitals, and medical groups. Our solutions help clients evolve and adapt to the rapidly changing healthcare environment and achieve growth, optimize performance, enhance profitability, improve quality and clinical outcomes, align leaders, improve organizational culture, and drive physician, patient, and employee engagement across the enterprise to deliver better consumer outcomes. We help organizations transform and innovate their delivery model to focus on patient wellness by improving quality outcomes, minimizing care variation and fundamentally improving patient and population health. Our consultants partner with clients to help build and sustain today’s business to invest in the future by reducing complexity, improving operational efficiency and growing market share. We enable the healthcare of the future by identifying, integrating and optimizing technology investments to collect data that transforms care delivery and improves patient outcomes. We also develop future leaders capable of driving meaningful operational and organizational change and who transform the consumer experience. • Business Advisory Our Business Advisory segment provides services to large and middle market organizations, not-for-profit organizations, lending institutions, law firms, investment banks and private equity firms. We assist clients in a broad range of industries and across the spectrum from healthy, well-capitalized companies to organizations in transition, as well as creditors, equity owners, and other key constituents. Our Business Advisory professionals resolve complex business issues and enhance client enterprise value through a suite of services including capital advisory, transaction advisory, operational improvement, restructuring and turnaround, valuation, and dispute advisory. Our Enterprise Solutions and Analytics professionals deliver technology and analytic solutions that enable organizations to manage and optimize their financial performance, operational efficiency, and client or stakeholder experience. Our Strategy and Innovation professionals collaborate with clients across a range of industries to identify new growth opportunities, build new ventures and capabilities, and accelerate organizational change. Our Life Sciences professionals provide strategic solutions to help pharmaceutical, medical device, and biotechnology companies deliver more value to patients, payers, and providers, and comply with regulations. • Education Our Education segment provides consulting and technology solutions to higher education institutions and academic medical centers. We partner with clients to address challenges relating to business and technology strategy, financial management, operational and organizational effectiveness, research administration, and regulatory compliance. Our institutional strategy, market research, budgeting and financial management, business operations and student life cycle management solutions align missions with business priorities, improve quality and reduce costs institution-wide. Our student solutions improve attraction, retention and graduation rates, increase student satisfaction and help generate quality outcomes. Our technology strategy, enterprise applications, and analytic solutions transform and optimize operations, deliver time and cost savings, and enhance the student experience. Our research enterprise solutions assist clients in identifying and implementing institutional research strategy, optimizing clinical research operations, improving financial management and cost reimbursement, improving service to faculty, and mitigating risk compliance. Segment operating income consists of the revenues generated by a segment, less the direct costs of revenue and selling, general and administrative expenses that are incurred directly by the segment. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. These administrative function costs include costs for corporate office support, certain office facility costs, costs relating to accounting and finance, human resources, legal, marketing, information technology, and company-wide business development functions, as well as costs related to overall corporate management. The table below sets forth information about our operating segments for the three months ended March 31, 2019 and 2018 , along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Three Months Ended 2019 2018 Healthcare: Revenues $ 93,682 $ 89,895 Operating income $ 27,851 $ 24,460 Segment operating income as a percentage of segment revenues 29.7 % 27.2 % Business Advisory: Revenues $ 58,806 $ 55,895 Operating income $ 9,581 $ 8,998 Segment operating income as a percentage of segment revenues 16.3 % 16.1 % Education: Revenues $ 51,957 $ 47,889 Operating income $ 12,618 $ 11,425 Segment operating income as a percentage of segment revenues 24.3 % 23.9 % Total Company: Revenues $ 204,445 $ 193,679 Reimbursable expenses 18,617 17,619 Total revenues and reimbursable expenses $ 223,062 $ 211,298 Segment operating income $ 50,050 $ 44,883 Items not allocated at the segment level: Other operating expenses 36,578 32,928 Other losses (gains), net (456 ) 830 Depreciation and amortization 7,172 8,803 Other expense, net 2,041 5,131 Income (loss) from continuing operations before taxes $ 4,715 $ (2,809 ) The following table illustrates the disaggregation of revenues by billing arrangements, employee types, and timing of revenue recognition, including a reconciliation of the disaggregated revenues to revenues from our three operating segments for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, 2019 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 63,584 $ 21,672 $ 12,383 $ 97,639 Time and expense 12,763 35,309 35,358 83,430 Performance-based 11,810 664 — 12,474 Software support, maintenance and subscriptions 5,525 1,161 4,216 10,902 Total $ 93,682 $ 58,806 $ 51,957 $ 204,445 Employee Type (1) Revenue generated by full-time billable consultants $ 64,818 $ 57,094 $ 46,007 $ 167,919 Revenue generated by full-time equivalents 28,864 1,712 5,950 36,526 Total $ 93,682 $ 58,806 $ 51,957 $ 204,445 Timing of Revenue Recognition Revenue recognized over time $ 91,642 $ 58,806 $ 51,711 $ 202,159 Revenue recognized at a point in time 2,040 — 246 2,286 Total $ 93,682 $ 58,806 $ 51,957 $ 204,445 Three Months Ended March 31, 2018 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 60,269 $ 22,420 $ 11,306 $ 93,995 Time and expense 12,789 31,337 33,442 77,568 Performance-based 10,191 909 — 11,100 Software support, maintenance and subscriptions 6,646 1,229 3,141 11,016 Total $ 89,895 $ 55,895 $ 47,889 $ 193,679 Employee Type (1) Revenue generated by full-time billable consultants $ 59,273 $ 53,416 $ 41,632 $ 154,321 Revenue generated by full-time equivalents 30,622 2,479 6,257 39,358 Total $ 89,895 $ 55,895 $ 47,889 $ 193,679 Timing of Revenue Recognition Revenue recognized over time $ 88,341 $ 55,895 $ 46,585 $ 190,821 Revenue recognized at a point in time 1,554 — 1,304 2,858 Total $ 89,895 $ 55,895 $ 47,889 $ 193,679 (1) Full-time billable consultants consist of our full-time professionals who provide consulting services to our clients and are billable to our clients based on the number of hours worked. Full-time equivalent professionals consist of leadership coaches and their support staff within our Studer Group solution, consultants who work variable schedules as needed by our clients, and full-time employees who provide software support and maintenance services to our clients. At March 31, 2019 and December 31, 2018 , no single client accounted for greater than 10% of our combined receivables and unbilled services balances. During the three months ended March 31, 2019 and 2018, no single client generated greater than 10% of our consolidated revenues. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements reflect the financial position, results of operations, and cash flows as of and for the three months ended March 31, 2019 and 2018 . These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods presented in conformity with GAAP. These financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2018 included in our Annual Report on Form 10-K. Our results for any interim period are not necessarily indicative of results for a full year or any other interim period. |
Earnings Per Share, Policy | Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period, excluding unvested restricted common stock. Diluted earnings per share reflects the potential reduction in earnings per share that could occur if securities or other contracts to issue common stock were exercised or converted into common stock under the treasury stock method. Such securities or other contracts include unvested restricted stock awards, outstanding common stock options, convertible senior notes, and outstanding warrants, to the extent dilutive. In periods for which we report a net loss from continuing operations, diluted weighted average common shares outstanding excludes all potential common stock equivalents as their impact on diluted net loss from continuing operations per share would be anti-dilutive. |
Convertible Senior Notes, Policy | We have separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar liability that does not have an associated convertible feature, assuming our non-convertible debt borrowing rate. |
Derivatives and Hedging, Policy | We recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. We have designated this derivative instrument as a cash flow hedge. Therefore, changes in the fair value of the derivative instrument are recorded to other comprehensive income (“OCI”) and reclassified into interest expense upon settlement. |
Fair Value of Financial Instruments, Policy | Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value and requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy consists of three levels based on the objectivity of the inputs as follows: Level 1 Inputs Quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Inputs Unobservable inputs for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. |
Segment Reporting, Policy | Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker, who is our chief executive officer, manages the business under three operating segments, which are our reportable segments: Healthcare, Business Advisory, and Education. |
Lessee, Leases, Policy | We determine if an arrangement contains a lease and the classification of such lease at inception. As of March 31, 2019, all of our material leases are classified as operating leases; we have not entered into any material finance leases. For all operating leases with an initial term greater than 12 months, we recognize an operating lease right-of-use ("ROU") asset and operating lease liability. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at lease commencement date and provided by Bank of America, N.A., the administrative agent for our senior secured credit facility, in determining the present value of lease payments. The operating lease ROU asset excludes lease incentives. Certain lease agreements contain variable lease payments that do not depend on an index or rate. These variable lease payments are not included in the calculation of the operating lease ROU asset and operating lease liability; instead, they are expensed as incurred. Certain lease agreements contain lease and nonlease components, which are accounted for separately. We separate the contract consideration between lease and nonlease components based on the relative standalone price of each component. Our leases may contain options to extend or terminate the lease, and we include these terms in our calculation of the operating lease ROU asset and operating lease liability when it is reasonably certain that we will exercise the option. Operating lease expense is recognized on a straight-line basis over the lease term and recorded within selling, general and administrative expenses on our consolidated statement of operations. In accordance with our accounting policy for impairment of long-lived assets, operating lease ROU assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group to which the operating lease ROU asset is assigned may not be recoverable. We evaluate the recoverability of the asset group based on forecasted undiscounted cash flows. |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact of the new lease standard on our consolidated balance sheet upon adoption follows: As of December 31, 2018 ASC 842 Adjustment As of January 1, 2019 Assets Operating lease right-of-use assets $ — $ 56,463 $ 56,463 Liabilities Accrued expenses and other current liabilities $ 17,207 $ (2,557 ) $ 14,650 Current maturities of operating lease liabilities $ — $ 10,537 $ 10,537 Deferred compensation and other liabilities $ 20,875 $ (536 ) $ 20,339 Deferred lease incentives $ 13,693 $ (13,693 ) $ — Operating lease liabilities, net of current portion $ — $ 62,712 $ 62,712 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The table below sets forth the changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2019 . Healthcare Business Advisory Education Total Balance as of December 31, 2018: Goodwill $ 636,810 $ 301,700 $ 102,829 $ 1,041,339 Accumulated impairment losses (208,081 ) (187,995 ) — (396,076 ) Goodwill, net as of December 31, 2018 428,729 113,705 102,829 645,263 Foreign currency translation — 278 — 278 Goodwill, net as of March 31, 2019 $ 428,729 $ 113,983 $ 102,829 $ 645,541 |
Intangible Assets | Intangible assets as of March 31, 2019 and December 31, 2018 consisted of the following: As of March 31, 2019 As of December 31, 2018 Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 4 to 13 $ 98,338 $ 63,653 $ 98,235 $ 60,462 Trade names 5 to 6 28,930 23,859 28,930 23,181 Technology and software 3 to 5 5,694 3,211 5,694 2,842 Non-competition agreements 3 to 5 3,650 2,446 3,650 2,241 Favorable lease contract 3 720 702 720 646 Total $ 137,332 $ 93,871 $ 137,229 $ 89,372 |
Schedule of Future Amortization Expense | The table below sets forth the estimated annual amortization expense for the year ending December 31, 2019 and each of the five succeeding years for the intangible assets recorded as of March 31, 2019 . Year Ending December 31, Estimated Amortization Expense 2019 $ 17,206 2020 $ 12,083 2021 $ 8,064 2022 $ 6,090 2023 $ 3,512 2024 $ 741 |
Leases Leases (Tables)
Leases Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information for Operating Leases | Balance Sheet March 31, 2019 Operating lease right-of-use assets $ 53,805 Current maturities of operating lease liabilities $ 10,293 Operating lease liabilities, net of current portion 60,280 Total lease liabilities $ 70,573 |
Lease, Cost | Lease Cost Three Months Ended March 31, 2019 Operating lease cost $ 3,000 Short-term leases (1) 47 Variable lease costs 374 Sublease income (617 ) Net lease cost (2) $ 2,804 (1) Includes variable lease costs related to short-term leases. (2) Rent expense, including operating expenses, real estate taxes and insurance, recorded under ASC 840 for the three months ended March 31, 2018 was $3.9 million . |
Lessee, Operating Lease, Liability, Maturity | The table below summarizes the remaining expected lease payments under our operating leases as of March 31, 2019 and December 31, 2018. Future Lease Payments March 31, 2019 December 31, 2018 (1, 2) 2019 $ 10,136 $ 13,701 2020 12,717 12,724 2021 11,595 11,590 2022 10,775 10,766 2023 10,711 10,707 Thereafter 27,035 27,033 Total operating lease payments $ 82,969 $ 86,521 Less: imputed interest (12,396 ) n/a Present value of operating lease liabilities $ 70,573 n/a (1) The expected lease payments as of December 31, 2018 represent our future minimum rental commitments as defined by ASC 840. (2) As of December 31, 2018, the expected total future minimum sublease income to be received was $10.2 million . |
Schedule of Supplemental Operating Lease Information | Other Information Three Months Ended March 31, 2019 Cash paid for operating lease liabilities $ 3,554 Weighted average remaining lease term - operating leases 7.0 years Weighted average discount rate - operating leases 4.7 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | Earnings (loss) per share under the basic and diluted computations are as follows: Three Months Ended 2019 2018 Net income (loss) from continuing operations $ 3,350 $ (3,222 ) Loss from discontinued operations, net of tax (46 ) (42 ) Net income (loss) $ 3,304 $ (3,264 ) Weighted average common shares outstanding – basic 21,868 21,592 Weighted average common stock equivalents 443 — Weighted average common shares outstanding – diluted 22,311 21,592 Net earnings (loss) per basic share: Net income (loss) from continuing operations $ 0.15 $ (0.15 ) Loss from discontinued operations, net of tax — — Net income (loss) $ 0.15 $ (0.15 ) Net earnings (loss) per diluted share: Net income (loss) from continuing operations $ 0.15 $ (0.15 ) Loss from discontinued operations, net of tax — — Net income (loss) $ 0.15 $ (0.15 ) |
Summary of Anti-dilutive Securities Excluded from Computation of Weighted Average Common Stock Equivalents | The number of anti-dilutive securities excluded from the computation of the weighted average common stock equivalents presented above were as follows: As of March 31, 2019 2018 Unvested restricted stock awards 12 723 Outstanding common stock options — 184 Convertible senior notes 3,129 3,129 Warrants related to the issuance of convertible senior notes 3,129 3,129 Total anti-dilutive securities 6,270 7,165 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Amounts of Debt | A summary of the carrying amounts of our debt follows: March 31, 2019 December 31, 2018 1.25% convertible senior notes due 2019 $ 245,051 $ 242,617 Senior secured credit facility 76,000 50,000 Promissory note due 2024 4,240 4,368 Total long-term debt $ 325,291 $ 296,985 Current maturities of long-term debt (245,569 ) (243,132 ) Long-term debt, net of current portion $ 79,722 $ 53,853 |
Schedule of Maturities of Long-term Debt | Below is a summary of the scheduled remaining principal payments of our debt as of March 31, 2019 . Principal Payments of Long-Term Debt 2019 $ 250,387 2020 $ 529 2021 $ 544 2022 $ 559 2023 $ 76,575 Thereafter $ 1,646 |
Schedule of Convertible Notes | As of March 31, 2019 and December 31, 2018 , the Convertible Notes consisted of the following: March 31, 2019 December 31, 2018 Liability component: Proceeds $ 250,000 $ 250,000 Less: debt discount, net of amortization (4,316 ) (6,436 ) Less: debt issuance costs, net of amortization (633 ) (947 ) Net carrying amount $ 245,051 $ 242,617 Equity component (1) $ 39,287 $ 39,287 (1) Included in additional paid-in capital on the consolidated balance sheet. |
Summary of Interest Expense Recognized | The following table presents the amount of interest expense recognized related to the Convertible Notes for the periods presented. Three Months Ended 2019 2018 Contractual interest coupon $ 781 $ 781 Amortization of debt discount 2,120 2,021 Amortization of debt issuance costs 315 309 Total interest expense $ 3,216 $ 3,111 |
Restructuring Charges Restructu
Restructuring Charges Restructuring Liability Rollforward (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The table below sets forth the changes in the carrying amount of our restructuring charge liability by restructuring type for the three months ended March 31, 2019 . Employee Costs Office Space Reductions Total Balance as of December 31, 2018 $ 443 $ 2,468 $ 2,911 Adoption of ASC 842 (1) — (1,119 ) (1,119 ) Balance as of January 1, 2019 443 1,349 1,792 Additions (2) 247 289 536 Payments (435 ) (371 ) (806 ) Adjustments (3) (2 ) 65 63 Non-cash items — (249 ) (249 ) Balance as of March 31, 2019 $ 253 $ 1,083 $ 1,336 (1) Upon adoption of ASC 842 on January 1, 2019, we reclassified the restructuring charge liabilities, which represented the present value of remaining lease payments, net of estimated sublease income, for vacated office spaces from restructuring charge liabilities to operating lease right-of-use assets. See Note 3 "New Accounting Pronouncements" for additional information on the impact of adoption. (2) Additions for the three months ended March 31, 2019 excludes the $0.7 million lease impairment charge recognized as restructuring charges on our consolidated statement of operations. See Note 5 "Leases" within the notes to our consolidated financial statements for additional information on the long-lived asset impairment test performed in the first quarter of 2019. (3) Adjustments for the three months ended March 31, 2019 includes restructuring charges of $0.1 million related to updated operating expense assumptions for vacated office spaces directly related to discontinued operations. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Interest Rate Swaps Designated as Cash Flow Hedging Instruments | The table below sets forth additional information relating to the interest rate swap designated as a cash flow hedging instrument as of March 31, 2019 and December 31, 2018 . Fair Value (Derivative Asset and Liability) Balance Sheet Location March 31, December 31, Prepaid expenses and other current assets $ 240 $ 302 Other non-current assets $ 192 $ 451 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below sets forth our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 . Level 1 Level 2 Level 3 Total March 31, 2019 Assets: Interest rate swap $ — $ 432 $ — $ 432 Convertible debt investment — — 54,038 54,038 Deferred compensation assets — 23,918 — 23,918 Total assets $ — $ 24,350 $ 54,038 $ 78,388 Liabilities: Contingent consideration for business acquisitions $ — $ — $ 11,129 $ 11,129 Total liabilities $ — $ — $ 11,129 $ 11,129 December 31, 2018 Assets: Interest rate swap $ — $ 753 $ — $ 753 Convertible debt investment — — 50,429 50,429 Deferred compensation assets — 18,205 — 18,205 Total assets $ — $ 18,958 $ 50,429 $ 69,387 Liabilities: Contingent consideration for business acquisitions $ — $ — $ 11,441 $ 11,441 Total liabilities $ — $ — $ 11,441 $ 11,441 |
Summary of Carrying Amount and Estimated Fair Value of Convertible Senior Notes | The carrying amount and estimated fair value of the Convertible Notes are as follows: March 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Estimated 1.25% convertible senior notes due 2019 $ 245,051 $ 246,190 $ 242,617 $ 242,940 |
Contingent consideration for business acquisitions | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below sets forth the changes in the balance of the contingent consideration for business acquisitions for the three months ended March 31, 2019 . Contingent Consideration for Business Acquisitions Balance as of December 31, 2018 $ 11,441 Remeasurement of contingent consideration for business acquisitions (391 ) Unrealized loss due to foreign currency translation 79 Balance as of March 31, 2019 $ 11,129 |
Convertible senior notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below sets forth the changes in the balance of the convertible debt investment for the three months ended March 31, 2019 . Convertible Debt Investment Balance as of December 31, 2018 $ 50,429 Change in fair value of convertible debt investment 3,609 Balance as of March 31, 2019 $ 54,038 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss), Net of Tax | The table below sets forth the components of other comprehensive income (loss), net of tax, for the three months ended March 31, 2019 and 2018 . Three Months Ended Three Months Ended Before Tax Net of Before Tax Net of Other comprehensive income (loss): Foreign currency translation adjustments $ 316 $ — $ 316 $ 34 $ — $ 34 Unrealized gain on investment $ 3,609 $ (952 ) $ 2,657 $ 2,927 $ (761 ) $ 2,166 Unrealized gain (loss) on cash flow hedges: Change in fair value $ (247 ) $ 65 $ (182 ) $ 545 $ (141 ) $ 404 Reclassification adjustments into earnings (74 ) 19 (55 ) 38 (10 ) 28 Net unrealized gain (loss) $ (321 ) $ 84 $ (237 ) $ 583 $ (151 ) $ 432 Other comprehensive income $ 3,604 $ (868 ) $ 2,736 $ 3,544 $ (912 ) $ 2,632 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated other comprehensive income, net of tax, includes the following components: Foreign Currency Translation Available-for-Sale Investment Cash Flow Hedges Total Balance, December 31, 2018 $ (665 ) $ 16,584 $ 576 $ 16,495 Current period change 316 2,657 (237 ) 2,736 Balance, March 31, 2019 $ (349 ) $ 19,241 $ 339 $ 19,231 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Components of Segment Information | The table below sets forth information about our operating segments for the three months ended March 31, 2019 and 2018 , along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Three Months Ended 2019 2018 Healthcare: Revenues $ 93,682 $ 89,895 Operating income $ 27,851 $ 24,460 Segment operating income as a percentage of segment revenues 29.7 % 27.2 % Business Advisory: Revenues $ 58,806 $ 55,895 Operating income $ 9,581 $ 8,998 Segment operating income as a percentage of segment revenues 16.3 % 16.1 % Education: Revenues $ 51,957 $ 47,889 Operating income $ 12,618 $ 11,425 Segment operating income as a percentage of segment revenues 24.3 % 23.9 % Total Company: Revenues $ 204,445 $ 193,679 Reimbursable expenses 18,617 17,619 Total revenues and reimbursable expenses $ 223,062 $ 211,298 Segment operating income $ 50,050 $ 44,883 Items not allocated at the segment level: Other operating expenses 36,578 32,928 Other losses (gains), net (456 ) 830 Depreciation and amortization 7,172 8,803 Other expense, net 2,041 5,131 Income (loss) from continuing operations before taxes $ 4,715 $ (2,809 ) |
Disaggregation of Revenue | The following table illustrates the disaggregation of revenues by billing arrangements, employee types, and timing of revenue recognition, including a reconciliation of the disaggregated revenues to revenues from our three operating segments for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, 2019 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 63,584 $ 21,672 $ 12,383 $ 97,639 Time and expense 12,763 35,309 35,358 83,430 Performance-based 11,810 664 — 12,474 Software support, maintenance and subscriptions 5,525 1,161 4,216 10,902 Total $ 93,682 $ 58,806 $ 51,957 $ 204,445 Employee Type (1) Revenue generated by full-time billable consultants $ 64,818 $ 57,094 $ 46,007 $ 167,919 Revenue generated by full-time equivalents 28,864 1,712 5,950 36,526 Total $ 93,682 $ 58,806 $ 51,957 $ 204,445 Timing of Revenue Recognition Revenue recognized over time $ 91,642 $ 58,806 $ 51,711 $ 202,159 Revenue recognized at a point in time 2,040 — 246 2,286 Total $ 93,682 $ 58,806 $ 51,957 $ 204,445 Three Months Ended March 31, 2018 Healthcare Business Advisory Education Total Billing Arrangements Fixed-fee $ 60,269 $ 22,420 $ 11,306 $ 93,995 Time and expense 12,789 31,337 33,442 77,568 Performance-based 10,191 909 — 11,100 Software support, maintenance and subscriptions 6,646 1,229 3,141 11,016 Total $ 89,895 $ 55,895 $ 47,889 $ 193,679 Employee Type (1) Revenue generated by full-time billable consultants $ 59,273 $ 53,416 $ 41,632 $ 154,321 Revenue generated by full-time equivalents 30,622 2,479 6,257 39,358 Total $ 89,895 $ 55,895 $ 47,889 $ 193,679 Timing of Revenue Recognition Revenue recognized over time $ 88,341 $ 55,895 $ 46,585 $ 190,821 Revenue recognized at a point in time 1,554 — 1,304 2,858 Total $ 89,895 $ 55,895 $ 47,889 $ 193,679 (1) Full-time billable consultants consist of our full-time professionals who provide consulting services to our clients and are billable to our clients based on the number of hours worked. Full-time equivalent professionals consist of leadership coaches and their support staff within our Studer Group solution, consultants who work variable schedules as needed by our clients, and full-time employees who provide software support and maintenance services to our clients. |
New Accounting Pronouncements I
New Accounting Pronouncements Impact of Adoption - Balance Sheet (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Receivables from clients, net | $ 104,674 | $ 109,677 | ||
Costs in Excess of Billings, Current | 86,504 | 69,613 | ||
Operating Lease, Right-of-Use Asset | $ 56,463 | 53,805 | 0 | |
Income tax receivable | 3,209 | 6,612 | ||
Deferred Tax Assets, Net, Noncurrent | 1,302 | 2,153 | ||
Other non-current assets | 38,345 | 30,525 | ||
Accrued payroll and related benefits | 53,966 | 109,825 | ||
Deferred revenues | 30,023 | 28,130 | ||
Retained earnings | 199,410 | 196,106 | ||
Operating Lease, Liability, Current | 10,537 | 10,293 | 0 | |
Deferred compensation and other liabilities | 20,339 | 25,886 | 20,875 | |
Operating lease liabilities, net of current portion | 0 | 0 | 13,693 | |
Operating Lease, Liability, Noncurrent | 62,712 | $ 60,280 | $ 0 | |
Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 1,956 | |||
Operating lease right-of-use asset [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 56,463 | |||
Accrued Liabilities [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (2,557) | |||
Current maturities of operating lease liabilities [Domain] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 10,537 | |||
Other Liabilities [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (536) | |||
Deferred lease incentives [Domain] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (13,693) | |||
Operating lease liabilities, net of current [Domain] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 62,712 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Goodwill | $ 1,041,339 | |
Accumulated impairment losses | (396,076) | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | $ 645,263 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 278 | |
Goodwill, net ending balance | 645,541 | |
Healthcare | ||
Goodwill [Line Items] | ||
Goodwill | 636,810 | |
Accumulated impairment losses | (208,081) | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | 428,729 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |
Goodwill, net ending balance | 428,729 | |
Education [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 102,829 | |
Accumulated impairment losses | 0 | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | 102,829 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |
Goodwill, net ending balance | 102,829 | |
Business Advisory | ||
Goodwill [Line Items] | ||
Goodwill | 301,700 | |
Accumulated impairment losses | $ (187,995) | |
Goodwill [Roll Forward] | ||
Goodwill, net beginning balance | 113,705 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 278 | |
Goodwill, net ending balance | $ 113,983 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Intangible assets | ||
Gross Carrying Amount | $ 137,332 | $ 137,229 |
Accumulated Amortization | 93,871 | 89,372 |
Customer Relationships [Member] | ||
Intangible assets | ||
Gross Carrying Amount | 98,338 | 98,235 |
Accumulated Amortization | $ 63,653 | 60,462 |
Customer Relationships [Member] | Minimum | ||
Intangible assets | ||
Useful Life (in years) | 4 years | |
Customer Relationships [Member] | Maximum | ||
Intangible assets | ||
Useful Life (in years) | 13 years | |
Trade Names [Member] | ||
Intangible assets | ||
Gross Carrying Amount | $ 28,930 | 28,930 |
Accumulated Amortization | $ 23,859 | 23,181 |
Trade Names [Member] | Minimum | ||
Intangible assets | ||
Useful Life (in years) | 5 years | |
Trade Names [Member] | Maximum | ||
Intangible assets | ||
Useful Life (in years) | 6 years | |
Technology And Software [Member] | ||
Intangible assets | ||
Gross Carrying Amount | $ 5,694 | 5,694 |
Accumulated Amortization | $ 3,211 | 2,842 |
Technology And Software [Member] | Minimum | ||
Intangible assets | ||
Useful Life (in years) | 3 years | |
Technology And Software [Member] | Maximum | ||
Intangible assets | ||
Useful Life (in years) | 5 years | |
Noncompete Agreements [Member] | ||
Intangible assets | ||
Gross Carrying Amount | $ 3,650 | 3,650 |
Accumulated Amortization | $ 2,446 | 2,241 |
Noncompete Agreements [Member] | Minimum | ||
Intangible assets | ||
Useful Life (in years) | 3 years | |
Noncompete Agreements [Member] | Maximum | ||
Intangible assets | ||
Useful Life (in years) | 5 years | |
Off-Market Favorable Lease [Member] | ||
Intangible assets | ||
Useful Life (in years) | 3 years | |
Gross Carrying Amount | $ 720 | 720 |
Accumulated Amortization | $ 702 | $ 646 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 17,206 |
Estimated annual intangible assets amortization expense, Year Two | 12,083 |
Estimated annual intangible assets amortization expense, Year Three | 8,064 |
Estimated annual intangible assets amortization expense, Year Four | 6,090 |
Estimated annual intangible assets amortization expense, Year Five | 3,512 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 741 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 4.5 | $ 6.3 |
Leases Schedule of Operating Le
Leases Schedule of Operating Lease Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 53,805 | $ 56,463 | $ 0 |
Operating Lease, Liability, Current | 10,293 | 10,537 | 0 |
Operating Lease, Liability, Noncurrent | 60,280 | $ 62,712 | $ 0 |
Operating Lease, Liability | $ 70,573 |
Leases Schedule of Lease Costs
Leases Schedule of Lease Costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 3,000 |
Short-term Lease, Cost | 47 |
Variable Lease, Cost | 374 |
Sublease Income | (617) |
Lease, Cost | $ 2,804 |
Leases Schedule of Maturity of
Leases Schedule of Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 10,136 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 12,717 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 11,595 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 10,775 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 10,711 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 27,035 | |
Lessee, Operating Lease, Liability, Payments, Due | 82,969 | |
Imputed interest of lease liabilities | (12,396) | |
Operating Lease, Liability | $ 70,573 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 13,701 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 12,724 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 11,590 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 10,766 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 10,707 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 27,033 | |
Operating Leases, Future Minimum Payments Due | $ 86,521 |
Leases Schedule of Operating _2
Leases Schedule of Operating Lease Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Payments | $ 3,554 |
Operating Lease, Weighted Average Remaining Lease Term | 7 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% |
Leases Leases Additional Inform
Leases Leases Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Lease Not yet Commenced, Description | During the first quarter of 2019, we entered into two new agreements to lease office space in Denver, Colorado and Bangalore, India. Both leases are expected to commence in the second quarter of 2019. | ||
Operating Leases, Future Minimum Payments Receivable | $ 10,200 | ||
Operating Leases, Rent Expense, Net | $ 3,900 | ||
Operating Lease, Impairment Loss | $ 740 | $ 0 | |
Operating lease right-of-use asset [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Impairment Loss | 500 | ||
Leasehold Improvements [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Impairment Loss | $ 200 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 10 years |
Leases Schedule of Oeprating Le
Leases Schedule of Oeprating Lease Balances Table (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 53,805 | $ 56,463 | $ 0 |
Operating Lease, Liability, Current | 10,293 | 10,537 | 0 |
Operating Lease, Liability, Noncurrent | 60,280 | $ 62,712 | $ 0 |
Operating Lease, Liability | $ 70,573 |
Revenues Revenue - Additional I
Revenues Revenue - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Sales Revenue, Services, Net | $ 204,445 | $ 193,679 | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | 5,900 | ||
Revenue, Remaining Performance Obligation | 75,100 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract with Customer, Asset, Net | 3,700 | $ 9,100 | |
Contract Asset, Period Increase (Decrease) | (5,400) | ||
Deferred revenues | 30,023 | $ 28,130 | |
Increase (decrease) in deferred revenues | 1,900 | ||
Deferred Revenue, Revenue Recognized | 11,700 | ||
Change in Estimated Variable Consideration [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract with Customer, Performance Obligation Satisfied in Previous Period | (1,200) | 2,800 | |
Release of Allowance [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 3,900 | $ 3,100 |
Revenues Performance Obligation
Revenues Performance Obligations Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 5.9 | |
Revenue, Remaining Performance Obligation | $ 75.1 | |
Release of Allowance [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | 3.9 | 3.1 |
Change in Estimated Variable Consideration [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | (1.2) | $ 2.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation | $ 56.9 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-30 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation | $ 12.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation | $ 5.8 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 5 years |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 3,350 | $ (3,222) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (46) | (42) |
Net income | $ 3,304 | $ (3,264) |
Weighted average common shares outstanding – basic | 21,868 | 21,592 |
Weighted average common stock equivalents | 443 | 0 |
Weighted average common shares outstanding – diluted | 22,311 | 21,592 |
Net earnings (loss) per basic share: | ||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.15 | $ (0.15) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | 0 |
Basic (USD per share) | 0.15 | (0.15) |
Net earnings per diluted share: | ||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.15 | (0.15) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0 | 0 |
Diluted (USD per share) | $ 0.15 | $ (0.15) |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Anti-dilutive Securities Excluded from Computation of Weighted Average Common Stock Equivalents (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 6,270 | 7,165 |
Unvested restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 12 | 723 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 0 | 184 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 3,129 | 3,129 |
Warrants related to the issuance of convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities | 3,129 | 3,129 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - Share Repurchase Program [Member] | Mar. 31, 2019USD ($) |
Accelerated Share Repurchases [Line Items] | |
Share repurchase authorized amount | $ 125,000,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 35,100,000 |
Financing Arrangements - Summar
Financing Arrangements - Summary of Carrying Amounts of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 325,291 | $ 296,985 | |
Long-term Debt, Current Maturities | (245,569) | (243,132) | |
Long-term debt, net of current portion | 79,722 | 53,853 | |
1.25% convertible senior notes due 2019 | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 245,051 | 242,617 | |
Senior secured credit facility | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 76,000 | 50,000 | |
Promissory Note due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Net carrying amount | $ 4,240 | $ 4,368 | $ 5,100 |
Financing Arrangements Schedule
Financing Arrangements Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 250,387 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 529 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 544 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 559 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 76,575 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 1,646 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Convertible Notes (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2014 |
Convertible Senior Notes [Line Items] | |||
Net carrying amount | $ 325,291,000 | $ 296,985,000 | |
1.25% convertible senior notes due 2019 | |||
Convertible Senior Notes [Line Items] | |||
Proceeds | 250,000,000 | 250,000,000 | $ 250,000,000 |
Less: debt discount, net of amortization | (4,316,000) | (6,436,000) | |
Debt Issuance Costs, Net | (633,000) | (947,000) | |
Net carrying amount | 245,051,000 | 242,617,000 | |
Equity component | $ 39,287,000 | $ 39,287,000 |
Financing Arrangements - Summ_2
Financing Arrangements - Summary of Interest Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Expense Recognized [Line Items] | ||
Interest Expense, Debt, Excluding Amortization | $ 781 | $ 781 |
Amortization of Debt Discount (Premium) | 2,120 | 2,021 |
Amortization of Debt Issuance Costs | 315 | 309 |
1.25% convertible senior notes due 2019 | ||
Interest Expense Recognized [Line Items] | ||
Interest Expense, Debt | $ 3,216 | $ 3,111 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) $ / shares in Units, shares in Millions | Jun. 30, 2017USD ($) | Jun. 22, 2017 | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($)$ / sharesshares | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||
Payments of Debt Issuance Costs | $ 0 | $ 1,385,000 | ||||||
Deferred tax liability | 759,000 | $ 732,000 | ||||||
Net carrying amount | 325,291,000 | 296,985,000 | ||||||
Duration of LIBOR | 1 month | |||||||
Property and equipment, net | 38,359,000 | 40,374,000 | ||||||
Note Hedge | ||||||||
Debt Instrument [Line Items] | ||||||||
Common stock purchased | shares | 3.1 | |||||||
Aggregate amount for convertible hedge | $ 42,100,000 | |||||||
Deferred tax asset | $ 16,500,000 | |||||||
Warrants related to the issuance of convertible senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Common stock purchased | shares | 3.1 | |||||||
Common stock price per share | $ / shares | $ 97.12 | |||||||
Aggregate proceeds from the sale of warrants | $ 23,600,000 | |||||||
1.25% convertible senior notes due 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 250,000,000 | $ 250,000,000 | 250,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | |||||||
Debt instrument maturity date | Oct. 1, 2019 | |||||||
Number of common shares converted upon debt conversion for each $1000 principal amount | 12.5170 | |||||||
Principal amount of notes per conversion | $ 1,000 | |||||||
Optional right of debt instrument holders to convert debt instrument into cash, portion of principal amount | 100.00% | |||||||
Earliest conversion date | Jul. 1, 2019 | |||||||
Number of consecutive business days following consecutive trading days | 5 days | |||||||
Concentration risk percentage | 98.00% | |||||||
Effective interest rate of debt | 4.751% | |||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 6 months | |||||||
Payments of Debt Issuance Costs | $ 7,300,000 | |||||||
Liability issuance costs | 6,200,000 | |||||||
Equity issuance costs | 1,100,000 | |||||||
Deferred tax liability | $ 15,400,000 | |||||||
Net carrying amount | $ 245,051,000 | 242,617,000 | ||||||
1.25% convertible senior notes due 2019 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion price of convertible notes | $ / shares | $ 79.89 | |||||||
Number of least trading days required within consecutive trading days | 5 | |||||||
Number of consecutive trading days | 20 days | |||||||
Percentage of applicable conversion price | 130.00% | |||||||
1.25% convertible senior notes due 2019 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion price of convertible notes | $ / shares | $ 97.12 | |||||||
Number of least trading days required within consecutive trading days | 30 | |||||||
Senior secured credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving Credit facility | $ 500,000,000 | $ 500,000,000 | ||||||
Period of revolving credit facility | 5 years | |||||||
Credit agreement expiration date | Mar. 23, 2023 | |||||||
Option to increase revolving credit facility | $ 150,000,000 | |||||||
Maximum principle amount | $ 650,000,000 | $ 650,000,000 | ||||||
Convertible debt maturity term | 90 days | |||||||
Percentage of other equity interests in domestic subsidiaries | 100.00% | |||||||
Percentage of other equity interests in foreign subsidiaries | 65.00% | |||||||
Debt Instrument, Covenant, Consolidated Leverage Ratio, Minimum | 3.50 | |||||||
Maximum consolidated leverage ratio | 4 | |||||||
Minimum consolidated interest coverage ratio | 3.50 | 3.50 | ||||||
Actual consolidated leverage ratio | 2.99 | |||||||
Actual interest coverage ratio | 12.08 | |||||||
Net carrying amount | $ 76,000,000 | $ 50,000,000 | ||||||
Percentage of weighted average interest rate of borrowings | 4.50% | 3.70% | ||||||
Outstanding letters of credit | $ 1,600,000 | $ 1,600,000 | ||||||
Unused borrowing capacity under Credit Agreement | 422,400,000 | |||||||
Senior secured credit facility | Minimum | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 1.25% | |||||||
Senior secured credit facility | Minimum | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 0.25% | |||||||
Senior secured credit facility | Maximum | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 2.00% | |||||||
Senior secured credit facility | Maximum | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 1.00% | |||||||
Promissory Note due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on borrowings | 1.97% | |||||||
Net carrying amount | $ 5,100,000 | 4,240,000 | 4,368,000 | |||||
Debt Instrument, Maturity Date | Mar. 1, 2024 | |||||||
Repayment of Principal at Maturity Date | $ 1,500,000 | |||||||
Duration of LIBOR | 1 month | |||||||
Aircraft [Domain] | ||||||||
Debt Instrument [Line Items] | ||||||||
Property and equipment, net | $ 5,600,000 | $ 5,800,000 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Restructuring Charges [Abstract] | ||||
Restructuring charges | $ 1,275 | $ 712 | ||
Operating Lease, Impairment Loss | 740 | $ 0 | ||
Restructuring and Related Cost, Accelerated Depreciation | 200 | |||
Restructuring reserve | 1,336 | $ 1,792 | $ 2,911 | |
Employee Severance [Member] | ||||
Restructuring Charges [Abstract] | ||||
Restructuring reserve | 253 | 443 | 443 | |
Office Space Reductions [Member] | ||||
Restructuring Charges [Abstract] | ||||
Restructuring reserve | 1,083 | $ 1,349 | $ 2,468 | |
Corporate, Non-Segment [Member] | Employee Severance [Member] | ||||
Restructuring Charges [Abstract] | ||||
Restructuring charges | 200 | |||
Huron Legal [Member] | Discontinued Operations [Member] | ||||
Restructuring Charges [Abstract] | ||||
Restructuring charges | $ 100 |
Restructuring Charges Restruc_2
Restructuring Charges Restructuring Liability Rollforward (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | $ 1,792 | $ 1,336 | $ 2,911 |
Restructuring and Related Cost, Incurred Cost | 536 | ||
Payments for Restructuring | (806) | ||
Restructuring Reserve, Accrual Adjustment | 63 | ||
Noncash Restructuring Adjustments | (249) | ||
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | 443 | 253 | 443 |
Restructuring and Related Cost, Incurred Cost | 247 | ||
Payments for Restructuring | (435) | ||
Restructuring Reserve, Accrual Adjustment | (2) | ||
Noncash Restructuring Adjustments | 0 | ||
Office Space Reductions [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | 1,349 | 1,083 | $ 2,468 |
Restructuring and Related Cost, Incurred Cost | 289 | ||
Payments for Restructuring | (371) | ||
Restructuring Reserve, Accrual Adjustment | 65 | ||
Noncash Restructuring Adjustments | $ (249) | ||
Accounting Standards Update 2016-02 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (1,119) | ||
Accounting Standards Update 2016-02 [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||
Accounting Standards Update 2016-02 [Member] | Office Space Reductions [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (1,119) |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activity - Additional Information (Detail) - USD ($) | Jun. 22, 2017 | Mar. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Interest rate swap agreement, effective date | Aug. 31, 2017 | |
Interest rate swap agreement, end date | Aug. 31, 2022 | |
Interest rate swap agreement for a notional amount | $ 50,000,000 | |
Duration of LIBOR | 1 month | |
Percentage of fixed rate | 1.90% | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 200,000 | |
Gain (loss) reclassification from accumulated OCI to income, estimate of time to transfer | 12 months |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activity - Fair Value Interest Rate Swaps Designated as Cash Flow Hedging Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid Expenses and Other Current Assets [Member] | ||
Fair Value interest rate swaps designated as cash flow hedging instruments | ||
Fair Value (Derivative Asset and Liability) | $ 240 | $ 302 |
Other Noncurrent Assets [Member] | ||
Fair Value interest rate swaps designated as cash flow hedging instruments | ||
Fair Value (Derivative Asset and Liability) | $ 192 | $ 451 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Asset/Liability | ||
Assets, fair value | $ 78,388 | $ 69,387 |
Liabilities, fair value | 11,129 | 11,441 |
Contingent consideration for business acquisitions | ||
Fair Value, Asset/Liability | ||
Liabilities, fair value | 11,129 | 11,441 |
Interest Rate Swap [Member] | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 432 | 753 |
Convertible debt investment | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 54,038 | 50,429 |
Level 2 | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 24,350 | 18,958 |
Liabilities, fair value | 0 | 0 |
Level 2 | Interest Rate Swap [Member] | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 432 | 753 |
Level 3 | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 54,038 | 50,429 |
Liabilities, fair value | 11,129 | 11,441 |
Level 3 | Contingent consideration for business acquisitions | ||
Fair Value, Asset/Liability | ||
Liabilities, fair value | 11,129 | 11,441 |
Level 3 | Convertible debt investment | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 54,038 | 50,429 |
Deferred Compensation Plan Assets [Member] | ||
Fair Value, Asset/Liability | ||
Assets, fair value | 23,918 | 18,205 |
Deferred Compensation Plan Assets [Member] | Level 2 | ||
Fair Value, Asset/Liability | ||
Assets, fair value | $ 23,918 | $ 18,205 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2014 | |
Fair Value of Financial Instruments [Abstract] | |||
Investments in notes | $ 54,038,000 | $ 50,429,000 | |
Closing price of common stock | $ 47.22 | ||
1.25% convertible senior notes due 2019 | |||
Fair Value of Financial Instruments [Abstract] | |||
Aggregate principal amount | $ 250,000,000 | 250,000,000 | $ 250,000,000 |
Carrying value of equity component | 39,287,000 | $ 39,287,000 | |
Convertible debt investment | Shorelight Holdings LLC | |||
Fair Value of Financial Instruments [Abstract] | |||
Investments in notes | $ 27,900,000 | ||
Debt Instrument, Maturity Date | Jul. 1, 2020 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Summary of Carrying Amount and Estimated Fair Value of Convertible Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ||
Net carrying amount | $ 325,291 | $ 296,985 |
1.25% convertible senior notes due 2019 | ||
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ||
Net carrying amount | 245,051 | 242,617 |
Estimated Fair Value | $ 246,190 | $ 242,940 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments Fair Value of Financial Instruments - Contingent Consideration Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 11,129 | $ 11,441 |
Contingent consideration for business acquisitions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | (391) | |
Contingent consideration for business acquisitions | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 11,129 | $ 11,441 |
Foreign Currency Gain (Loss) [Member] | Contingent consideration for business acquisitions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | $ 79 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments Fair Value of Financial Instruments - Convertible Debt Investment Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 78,388 | $ 69,387 |
Convertible senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 3,609 | |
Convertible senior notes | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 54,038 | $ 50,429 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss )- Components of Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Foreign currency translation adjustment, before taxes | $ 316 | $ 34 |
Foreign currency translation adjustment, taxes | 0 | 0 |
Foreign currency translation adjustment, net of taxes | 316 | 34 |
Unrealized gain on investment, before taxes | 3,609 | 2,927 |
Unrealized gain on investment, tax (expense) benefit | (952) | (761) |
Unrealized gain on investment, net of taxes | 2,657 | 2,166 |
Change in fair value, before taxes | (247) | 545 |
Change in fair value, tax (expense) benefit | 65 | (141) |
Change in fair value, net of taxes | (182) | 404 |
Reclassification adjustments into earnings, before taxes | (74) | 38 |
Reclassification adjustments into earnings, tax (expense) benefit | 19 | (10) |
Reclassification adjustments into earnings, net of taxes | (55) | 28 |
Net unrealized gain (loss), before taxes | (321) | 583 |
Net unrealized gain (loss), tax (expense) benefit | 84 | (151) |
Net unrealized gain (loss), net of taxes | (237) | 432 |
Other comprehensive income (loss), before taxes | 3,604 | 3,544 |
Other comprehensive income (loss), tax (expense) benefit | (868) | (912) |
Accumulated Other Comprehensive (Income) Loss, Current period change | $ 2,736 | $ 2,632 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss )- Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Foreign Currency Translation Adjustments, Beginning balance | $ (665) | |
Foreign currency translation adjustments, net of tax | 316 | $ 34 |
Foreign Currency Translation Adjustments, Ending balance | (349) | |
Net Unrealized Gain (Loss) on Investment, Beginning balance | 16,584 | |
Unrealized gain on investment, net of tax | 2,657 | 2,166 |
Net Unrealized Gain (Loss) on Investment, Ending balance | 19,241 | |
Net Unrealized Losses on Derivatives, Beginning balance | 576 | |
Unrealized gain (loss) on cash flow hedging instruments, net of tax | (237) | 432 |
Net Unrealized Losses on Derivatives, Ending balance | 339 | |
Accumulated Other Comprehensive Income (Loss), Beginning balance | 16,495 | |
Accumulated Other Comprehensive (Income) Loss, Current period change | 2,736 | $ 2,632 |
Accumulated Other Comprehensive Income (Loss), Ending balance | $ 19,231 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 29.00% | (14.70%) |
Income tax expense | $ 1,365 | $ 413 |
Income (loss) from continuing operations before taxes | $ 4,715 | $ (2,809) |
Effective Income Tax Rate Reconciliation, at Statutory Rate, Inclusive of State Income Tax, Percent | 26.40% | 26.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 2.90% | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 1.80% | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | 1.80% | 43.70% |
Loss on continuing operations Foreign [Member] | ||
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | $ 500 | |
Executive Compensation [Member] | ||
Income Tax Disclosure [Line Items] | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | 100 | |
Share-based Compensation [Member] | ||
Income Tax Disclosure [Line Items] | ||
Income tax expense | $ 100 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Measurements, Recurring | ||
Commitments And Contingencies [Line Items] | ||
Liabilities, fair value | $ 11,129 | $ 11,441 |
Fair Value, Measurements, Recurring | Contingent consideration for business acquisitions | ||
Commitments And Contingencies [Line Items] | ||
Liabilities, fair value | 11,129 | 11,441 |
Senior secured credit facility | ||
Commitments And Contingencies [Line Items] | ||
Guarantees in the form of letters of credit | $ 1,600 | $ 1,600 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 3 |
Segment Information - Component
Segment Information - Components of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Components of Segment Information | ||
Revenues | $ 204,445 | $ 193,679 |
Operating income (loss) | 6,756 | 2,322 |
Reimbursable expenses | 18,617 | 17,619 |
Total revenues and reimbursable expenses | 223,062 | 211,298 |
Gain (Loss) Related To Litigation Settlement And Other Operating Gains | 456 | (830) |
Depreciation and amortization | 7,172 | 8,803 |
Other expense, net | (2,041) | (5,131) |
Income from continuing operations before income tax expense | 4,715 | (2,809) |
Healthcare | ||
Components of Segment Information | ||
Revenues | 93,682 | 89,895 |
Business Advisory | ||
Components of Segment Information | ||
Revenues | 58,806 | 55,895 |
Education [Member] | ||
Components of Segment Information | ||
Revenues | 51,957 | 47,889 |
Operating Segments | ||
Components of Segment Information | ||
Revenues | 204,445 | 193,679 |
Operating income (loss) | 50,050 | 44,883 |
Reimbursable expenses | 18,617 | 17,619 |
Total revenues and reimbursable expenses | 223,062 | 211,298 |
Operating Segments | Healthcare | ||
Components of Segment Information | ||
Revenues | 93,682 | 89,895 |
Operating income (loss) | $ 27,851 | $ 24,460 |
Segment operating income as a percentage of segment revenues | 29.70% | 27.20% |
Operating Segments | Business Advisory | ||
Components of Segment Information | ||
Revenues | $ 58,806 | $ 55,895 |
Operating income (loss) | $ 9,581 | $ 8,998 |
Segment operating income as a percentage of segment revenues | 16.30% | 16.10% |
Operating Segments | Education [Member] | ||
Components of Segment Information | ||
Revenues | $ 51,957 | $ 47,889 |
Operating income (loss) | $ 12,618 | $ 11,425 |
Segment operating income as a percentage of segment revenues | 24.30% | 23.90% |
Segment Reconciling Items | ||
Components of Segment Information | ||
Other operating expenses | $ 36,578 | $ 32,928 |
Gain (Loss) Related To Litigation Settlement And Other Operating Gains | (456) | 830 |
Depreciation and amortization | 7,172 | 8,803 |
Other expense, net | $ 2,041 | $ 5,131 |
Segment Information Segment Inf
Segment Information Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | $ 204,445 | $ 193,679 |
Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 93,682 | 89,895 |
Business Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 58,806 | 55,895 |
Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 51,957 | 47,889 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 202,159 | 190,821 |
Transferred over Time [Member] | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 91,642 | 88,341 |
Transferred over Time [Member] | Business Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 58,806 | 55,895 |
Transferred over Time [Member] | Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 51,711 | 46,585 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 2,286 | 2,858 |
Transferred at Point in Time [Member] | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 2,040 | 1,554 |
Transferred at Point in Time [Member] | Business Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 0 | 0 |
Transferred at Point in Time [Member] | Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 246 | 1,304 |
Full-time Billable Consultants [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 167,919 | 154,321 |
Full-time Billable Consultants [Member] | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 64,818 | 59,273 |
Full-time Billable Consultants [Member] | Business Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 57,094 | 53,416 |
Full-time Billable Consultants [Member] | Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 46,007 | 41,632 |
Full-time Equivalents [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 36,526 | 39,358 |
Full-time Equivalents [Member] | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 28,864 | 30,622 |
Full-time Equivalents [Member] | Business Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 1,712 | 2,479 |
Full-time Equivalents [Member] | Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 5,950 | 6,257 |
Fixed-price Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 97,639 | 93,995 |
Fixed-price Contract [Member] | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 63,584 | 60,269 |
Fixed-price Contract [Member] | Business Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 21,672 | 22,420 |
Fixed-price Contract [Member] | Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 12,383 | 11,306 |
Time-and-materials Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 83,430 | 77,568 |
Time-and-materials Contract [Member] | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 12,763 | 12,789 |
Time-and-materials Contract [Member] | Business Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 35,309 | 31,337 |
Time-and-materials Contract [Member] | Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 35,358 | 33,442 |
Performance-based [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 12,474 | 11,100 |
Performance-based [Member] | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 11,810 | 10,191 |
Performance-based [Member] | Business Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 664 | 909 |
Performance-based [Member] | Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 0 | 0 |
Software Service, Support and Maintenance Arrangement [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 10,902 | 11,016 |
Software Service, Support and Maintenance Arrangement [Member] | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 5,525 | 6,646 |
Software Service, Support and Maintenance Arrangement [Member] | Business Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | 1,161 | 1,229 |
Software Service, Support and Maintenance Arrangement [Member] | Education [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales Revenue, Services, Net | $ 4,216 | $ 3,141 |