Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 23, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-14875 | |
Entity Registrant Name | FTI CONSULTING, INC | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 52-1261113 | |
Entity Address, Address Line One | 555 12th Street NW | |
Entity Address, City or Town | Washington, | |
Entity Address, State or Province | DC | |
Entity Address, Postal Zip Code | 20004 | |
City Area Code | 202 | |
Local Phone Number | 312-9100 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | FCN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,098,282 | |
Entity Central Index Key | 0000887936 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 223,063 | $ 369,373 |
Accounts receivable: | ||
Billed receivables | 584,620 | 540,584 |
Unbilled receivables | 436,944 | 418,288 |
Allowance for doubtful accounts and unbilled services | (284,666) | (265,500) |
Accounts receivable, net | 736,898 | 693,372 |
Current portion of notes receivable | 31,942 | 35,106 |
Prepaid expenses and other current assets | 74,544 | 80,810 |
Total current assets | 1,066,447 | 1,178,661 |
Property and equipment, net | 92,852 | 93,672 |
Operating lease assets | 149,570 | 159,777 |
Goodwill | 1,191,948 | 1,202,767 |
Other intangible assets, net | 35,682 | 38,432 |
Notes receivable, net | 63,801 | 69,033 |
Other assets | 36,881 | 40,800 |
Total assets | 2,637,181 | 2,783,142 |
Current liabilities | ||
Accounts payable, accrued expenses and other | 170,930 | 158,936 |
Accrued compensation | 240,192 | 416,903 |
Billings in excess of services provided | 40,219 | 36,698 |
Total current liabilities | 451,341 | 612,537 |
Long-term debt, net | 328,193 | 275,609 |
Noncurrent operating lease liabilities | 163,594 | 176,378 |
Deferred income taxes | 152,347 | 151,352 |
Other liabilities | 73,022 | 78,124 |
Total liabilities | 1,168,497 | 1,294,000 |
Commitments and contingent liabilities (Note 10) | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value; shares authorized — 5,000; none outstanding | 0 | 0 |
Common stock, $0.01 par value; shares authorized — 75,000; shares issued and outstanding — 37,110 (2020) and 37,390 (2019) | 371 | 374 |
Additional paid-in capital | 170,062 | 216,162 |
Retained earnings | 1,470,200 | 1,413,453 |
Accumulated other comprehensive loss | (171,949) | (140,847) |
Total stockholders' equity | 1,468,684 | 1,489,142 |
Total liabilities and stockholders' equity | $ 2,637,181 | $ 2,783,142 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 37,110,000 | 37,390,000 |
Common stock, shares outstanding (in shares) | 37,110,000 | 37,390,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 604,593 | $ 551,274 |
Operating expenses | ||
Direct cost of revenues | 402,247 | 349,066 |
Selling, general and administrative expenses | 126,959 | 113,185 |
Amortization of other intangible assets | 2,331 | 1,861 |
Operating expenses | 531,537 | 464,112 |
Operating income | 73,056 | 87,162 |
Other income (expense) | ||
Interest income and other | 5,017 | 159 |
Interest expense | (4,861) | (4,746) |
Other income (expense) | 156 | (4,587) |
Income before income tax provision | 73,212 | 82,575 |
Income tax provision | 16,465 | 19,930 |
Net income | $ 56,747 | $ 62,645 |
Earnings per common share — basic (in dollars per share) | $ 1.56 | $ 1.69 |
Earnings per common share — diluted (in dollars per share) | $ 1.49 | $ 1.64 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments, net of tax expense of $0 | $ (31,102) | $ 5,223 |
Total other comprehensive income (loss), net of tax | (31,102) | 5,223 |
Comprehensive income | $ 25,645 | $ 67,868 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Foreign currency translation adjustments, tax expense | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2018 | 38,147 | ||||
Beginning Balance at Dec. 31, 2018 | $ 1,348,825 | $ 381 | $ 299,534 | $ 1,196,727 | $ (147,817) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 62,645 | 62,645 | |||
Other comprehensive loss: | |||||
Cumulative translation adjustment | 5,223 | 5,223 | |||
Issuance of common stock in connection with: | |||||
Exercise of options (in shares) | 55 | ||||
Exercise of options | 2,212 | $ 1 | 2,211 | ||
Restricted share grants, less net settled shares (in shares) | 153 | ||||
Restricted share grants, less net settled shares | (2,739) | $ 1 | (2,740) | ||
Stock units issued under incentive compensation plan | 1,346 | 1,346 | |||
Purchase and retirement of common stock (in shares) | (328) | ||||
Purchase and retirement of common stock | (21,883) | $ (3) | (21,880) | ||
Share-based compensation | 6,393 | 6,393 | |||
Ending Balance (in shares) at Mar. 31, 2019 | 38,027 | ||||
Ending Balance at Mar. 31, 2019 | $ 1,402,022 | $ 380 | 284,864 | 1,259,372 | (142,594) |
Beginning Balance (in shares) at Dec. 31, 2019 | 37,390 | 37,390 | |||
Beginning Balance at Dec. 31, 2019 | $ 1,489,142 | $ 374 | 216,162 | 1,413,453 | (140,847) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 56,747 | 56,747 | |||
Other comprehensive loss: | |||||
Cumulative translation adjustment | (31,102) | (31,102) | |||
Issuance of common stock in connection with: | |||||
Exercise of options (in shares) | 34 | ||||
Exercise of options | 1,207 | $ 1 | 1,206 | ||
Restricted share grants, less net settled shares (in shares) | 136 | ||||
Restricted share grants, less net settled shares | (6,767) | $ 1 | (6,768) | ||
Stock units issued under incentive compensation plan | 2,314 | 2,314 | |||
Purchase and retirement of common stock (in shares) | (450) | ||||
Purchase and retirement of common stock | (50,311) | $ (5) | (50,306) | ||
Share-based compensation | $ 7,454 | 7,454 | |||
Ending Balance (in shares) at Mar. 31, 2020 | 37,110 | 37,110 | |||
Ending Balance at Mar. 31, 2020 | $ 1,468,684 | $ 371 | $ 170,062 | $ 1,470,200 | $ (171,949) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Restricted share grants, net settled shares (in shares) | 58 | 38 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 56,747 | $ 62,645 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 7,823 | 7,066 |
Amortization and impairment of other intangible assets | 2,331 | 1,861 |
Acquisition-related contingent consideration | 506 | 93 |
Provision for doubtful accounts | 3,872 | 3,784 |
Share-based compensation | 7,454 | 6,393 |
Amortization of debt discount and issuance costs | 2,978 | 2,860 |
Deferred income taxes | 545 | 8,752 |
Other | 0 | (42) |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable, billed and unbilled | (60,963) | (95,746) |
Notes receivable | 7,051 | 9,653 |
Prepaid expenses and other assets | 9,442 | 5,979 |
Accounts payable, accrued expenses and other | 11,136 | (450) |
Income taxes | (667) | 2,534 |
Accrued compensation | (176,070) | (123,260) |
Billings in excess of services provided | 4,253 | 5,792 |
Net cash used in operating activities | (123,562) | (102,086) |
Investing activities | ||
Purchases of property and equipment | (8,236) | (10,153) |
Other | 8 | 72 |
Net cash used in investing activities | (8,228) | (10,081) |
Financing activities | ||
Borrowings under revolving line of credit | 55,000 | 0 |
Repayments under revolving line of credit | (5,000) | 0 |
Purchase and retirement of common stock | (49,135) | (21,883) |
Net issuance of common stock under equity compensation plans | (5,583) | (605) |
Payments for business acquisition liabilities | 0 | (1,282) |
Deposits and other | 3,870 | 1,003 |
Net cash used in financing activities | (848) | (22,767) |
Effect of exchange rate changes on cash and cash equivalents | (13,672) | 2,106 |
Net decrease in cash and cash equivalents | (146,310) | (132,828) |
Cash and cash equivalents, beginning of period | 369,373 | 312,069 |
Cash and cash equivalents, end of period | 223,063 | 179,241 |
Supplemental cash flow disclosures | ||
Cash paid for interest | 3,136 | 3,450 |
Cash paid for income taxes, net of refunds | 16,588 | 8,644 |
Non-cash investing and financing activities: | ||
Issuance of stock units under incentive compensation plans | $ 2,314 | $ 1,346 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The unaudited condensed consolidated financial statements of FTI Consulting, Inc., including its consolidated subsidiaries (collectively, the “Company,” “we,” “our” or “FTI Consulting”), presented herein, have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and under the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Some of the information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations. Certain prior period amounts have been reclassified to conform to the current period presentation. In management’s opinion, the interim financial statements reflect all adjustments that are necessary for a fair presentation of the results for the interim periods presented. All adjustments made were normal recurring accruals. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15 ("ASU 2018-15"), Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which requires companies to capitalize implementation costs of a hosting arrangement that is a service contract and expense those costs over the term of the hosting arrangement. On January 1, 2020, we prospectively adopted ASU 2018-15 for eligible costs incurred on or after the adoption date. The adoption of this standard may result in the recognition of additional internal use software costs, which are included in the “Property and equipment, net” financial statement line item on the Condensed Consolidated Balance Sheets. There was no material impact on the Condensed Consolidated Balance Sheets as of March 31, 2020 or on the Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Statements of Stockholders’ Equity or Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020. Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to reduce the complexity in accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance. The amendments in this ASU are effective for annual periods beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, although early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share adjusts basic earnings per common share for the effects of potentially dilutive common shares. Potentially dilutive common shares include the dilutive effects of shares issuable under our equity compensation plans, including stock options and restricted shares, each using the treasury stock method. Because we expect to settle the principal amount of the outstanding 2.0% convertible senior notes due 2023 ("2023 Convertible Notes") in cash, we use the treasury stock method for calculating the potential dilutive effect of the conversion feature on earnings per common share, if applicable. The conversion feature had a dilutive impact on earnings per common share for the three months ended March 31, 2020 , as the average market price per share of our common stock for the period exceeded the conversion price of $101.38 per share. See Note 8, "Debt" for additional information about the 2023 Convertible Notes. Three Months Ended March 31, 2020 2019 Numerator — basic and diluted Net income $ 56,747 $ 62,645 Denominator Weighted average number of common shares outstanding — basic 36,415 36,981 Effect of dilutive convertible notes 433 — Effect of dilutive stock options 461 431 Effect of dilutive restricted shares 881 807 Weighted average number of common shares outstanding — diluted 38,190 38,219 Earnings per common share — basic $ 1.56 $ 1.69 Earnings per common share — diluted $ 1.49 $ 1.64 Antidilutive stock options and restricted shares 12 49 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues We generate the majority of our revenues by providing consulting services to our clients. Most of our consulting service contracts are based on one of the following types of arrangements: • Time and expense arrangements require the client to pay us based on the number of hours worked at contractually agreed-upon rates. We recognize revenues for these arrangements based on hours incurred and contracted rates utilizing a right-to-invoice practical expedient because we have a right to consideration for services completed to date. • Fixed-fee arrangements require the client to pay a pre-established fee in exchange for a predetermined set of professional services. We recognize revenues earned to date by applying the proportional performance method. Generally, these arrangements have one performance obligation. • Performance-based or contingent arrangements represent forms of variable consideration. In these arrangements, our fees are based on the attainment of contractually defined objectives with our client, such as completing a business transaction or assisting the client in achieving a specific business objective. We recognize revenues earned to date in an amount that is probable not to reverse and by applying the proportional performance method when the criteria for over time revenue recognition are met. Revenues are recognized when we satisfy a performance obligation by transferring services promised in a contract to a customer and in an amount that reflects the consideration that we expect to receive in exchange for those services. Performance obligations in our contracts represent distinct or separate services that we provide to our customers. Revenues recognized during the current period may include revenues from performance obligations satisfied or partially satisfied in previous periods. This primarily occurs when the estimated transaction price has changed based on our current probability assessment over whether the agreed-upon outcome for our performance-based and contingent arrangements will be achieved. The aggregate amount of revenues recognized related to a change in the transaction price in the current period, which related to performance obligations satisfied or partially satisfied in a prior period, was $8.3 million and $6.4 million for the three months ended March 31, 2020 and 2019 , respectively. Unfulfilled performance obligations represent the remaining contract transaction prices allocated to the performance obligations that are unsatisfied. Unfulfilled performance obligations primarily consist of fees not yet recognized on a proportional performance basis for fixed-fee arrangements and performance-based and contingent arrangements. As of March 31, 2020 and December 31, 2019 , the aggregate amount of the remaining contract transaction price allocated to unfulfilled performance obligations was $1.4 million and $2.3 million , respectively. We expect to recognize the majority of the related revenues over the next 24 months . We elected to utilize the optional exemption to exclude from this disclosure fixed-fee and performance-based and contingent arrangements with an original expected duration of one year or less and to exclude our time and expense arrangements for which revenues are recognized using the right-to-invoice practical expedient. Contract assets are defined as assets for which we have recorded revenue but are not yet entitled to receive our fees because certain events, such as completion of the measurement period or client approval, must occur. The contract asset balance was immaterial as of March 31, 2020 and $1.3 million as of December 31, 2019 . Contract liabilities are defined as liabilities incurred when we have received consideration but have not yet performed the agreed-upon services. This may occur when clients pay us upfront fees before we begin work for them. The contract liability balance was immaterial as of March 31, 2020 and December 31, 2019 |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Doubtful Accounts | 3 Months Ended |
Mar. 31, 2020 | |
Allowance For Doubtful Accounts And Unbilled Services [Abstract] | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Timing of revenue recognition often differs from the timing of billing to our customers. Generally, we transfer goods or services to a customer before the customer pays consideration or payment is due. If we have an unconditional right to invoice and receive payment for goods or services already provided, we record billed and unbilled receivables on our Condensed Consolidated Balance Sheets. Our contract terms generally include a requirement of payment within 30 days when no contingencies exist. Payment terms and conditions vary depending on the jurisdiction, market and type of service, and whether regulatory or other third-party approvals are required. At times, we may execute contracts in a form provided by customers that might include different payment terms and contracts may be negotiated at the client’s request. We record adjustments to the allowance for doubtful accounts and unbilled services as a reduction in revenues when there are changes in estimates of fee reductions, such as those fee reductions imposed by bankruptcy courts and other regulatory institutions for both billed and unbilled receivables. The allowance for doubtful accounts and unbilled services is also adjusted after the related work has been billed to the client and we discover that collectability is not reasonably assured. These adjustments are recorded to “Selling, general and administrative expenses” ("SG&A") on the Condensed Consolidated Statements of Comprehensive Income. Our bad debt expense totaled $3.9 million and $3.8 million for the three months ended March 31, 2020 and 2019 , respectively. Our write-offs totaled $6.1 million and $2.5 million for the three months ended March 31, 2020 and 2019 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The table below summarizes the changes in the carrying amount of goodwill by reportable segment: Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Total Balance at December 31, 2019 Goodwill $ 478,842 $ 232,120 $ 268,677 $ 96,770 $ 320,497 $ 1,396,906 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2019 478,842 232,120 268,677 96,770 126,358 1,202,767 Foreign currency translation adjustment and other (3,771 ) (1,802 ) (331 ) (81 ) (4,834 ) (10,819 ) Balance at March 31, 2020 Goodwill 475,071 230,318 268,346 96,689 315,663 1,386,087 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at March 31, 2020 $ 475,071 $ 230,318 $ 268,346 $ 96,689 $ 121,524 $ 1,191,948 Other Intangible Assets Other intangible assets were as follows: March 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets Customer relationships $ 97,870 $ 77,171 $ 20,699 $ 99,613 $ 76,808 $ 22,805 Trademarks 9,730 1,051 8,679 9,855 653 9,202 Acquired software and other 3,319 2,115 1,204 3,386 2,061 1,325 110,919 80,337 30,582 112,854 79,522 33,332 Non-amortizing intangible assets Trademarks 5,100 — 5,100 5,100 — 5,100 Total $ 116,019 $ 80,337 $ 35,682 $ 117,954 $ 79,522 $ 38,432 Other intangible assets with finite lives are amortized over their estimated useful lives. We recorded amortization expense of $2.3 million and $1.9 million for the three months ended March 31, 2020 and 2019 , respectively. We estimate our future amortization expense for our intangible assets with finite lives to be as follows: Year As of March 31, 2020 (1) 2020 (remaining) $ 6,939 2021 8,740 2022 6,944 2023 3,564 2024 2,177 Thereafter 2,218 $ 30,582 (1) Actual amortization expense to be reported in future periods could differ from these estimates because of new intangible asset acquisitions, impairments, changes in useful lives, or other relevant factors or changes. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The following table presents the carrying amounts and estimated fair values of our financial instruments by hierarchy level as of March 31, 2020 and December 31, 2019 : March 31, 2020 Hierarchy Level (Fair Value) Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 15,184 $ — $ — $ 15,184 2023 Convertible Notes (2) 278,193 — 417,937 — Total $ 293,377 $ — $ 417,937 $ 15,184 December 31, 2019 Hierarchy Level (Fair Value) Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 14,826 $ — $ — $ 14,826 2023 Convertible Notes (2) 275,609 — 398,016 — Total $ 290,435 $ — $ 398,016 $ 14,826 (1) The short-term portion is included in “Accounts payable, accrued expenses and other” and the long-term portion is included in “Other liabilities” on the Condensed Consolidated Balance Sheets. (2) The carrying values include unamortized deferred debt issue costs and debt discount. The fair values of financial instruments not included in the tables above are estimated to be equivalent to their carrying values as of March 31, 2020 and December 31, 2019 . We estimate the fair value of our 2023 Convertible Notes based on their last actively traded prices. The fair value of our 2023 Convertible Notes is classified within Level 2 of the fair value hierarchy because it is traded in less active markets. We estimate the fair value of acquisition-related contingent consideration using either a probability-weighted discounted cash flow model or a Monte Carlo simulation. These fair value estimates represent Level 3 measurements as they are based on significant inputs not observed in the market and reflect our own assumptions. We have multiple valuation models that use different inputs and assumptions based on the timing of the acquisitions. As a result, the significant unobservable inputs used in these models vary. The acquisition-related contingent consideration subject to the probability-weighted discounted cash flow model was valued using significant unobservable inputs including a discount rate of 13.5% and future cash flows. The acquisition-related contingent consideration subject to the Monte Carlo simulation was valued using significant unobservable inputs including a volatility rate of 30.0% , a discount rate of 13.6% , which reflects the weighted average of our cost of debt and adjusted cost of equity of the acquired company, and future cash flows. Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly lower (higher) fair value. We reassess the fair value of our acquisition-related contingent consideration at each reporting period based on additional information as it becomes available. The change in our liability for acquisition-related contingent consideration for our Level 3 financial instruments is as follows: Liability for Acquisition-Related Contingent Consideration Balance at December 31, 2019 $ 14,826 Accretion for time value of money (1) 506 Foreign currency translation adjustment (2) (148 ) Balance at March 31, 2020 $ 15,184 Liability for Acquisition-Related Contingent Consideration Balance at December 31, 2018 $ 3,698 Accretion for time value of money (1) 93 Balance at March 31, 2019 $ 3,791 (1) Accretion for the time value of money is included in "Selling, general and administrative expenses" on the Condensed Consolidated Statements of Comprehensive Income. (2) Foreign currency translation adjustments are included in "Other comprehensive income (loss), net of tax" on the Condensed Consolidated Statements of Comprehensive Income. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the components of the Company’s debt: March 31, December 31, 2023 Convertible Notes $ 316,250 $ 316,250 Credit Facility 50,000 — Total debt 366,250 316,250 Less: deferred debt discount (33,168 ) (35,393 ) Less: deferred debt issue costs (4,889 ) (5,248 ) Long-term debt, net (1) $ 328,193 $ 275,609 Additional paid-in capital $ 35,306 $ 35,306 Discount attribution to equity (1,175 ) (1,175 ) Equity component, net $ 34,131 $ 34,131 (1) There were no current portions of long-term debt as of March 31, 2020 and December 31, 2019 . 2023 Convertible Notes On August 20, 2018, we issued the 2023 Convertible Notes in an aggregate principal amount of $316.3 million . The 2023 Convertible Notes bear interest at a fixed rate of 2.0% per year, payable semiannually in arrears on February 15th and August 15th of each year and will mature on August 15, 2023, unless earlier converted or repurchased. The 2023 Convertible Notes are senior unsecured obligations of the Company. The 2023 Convertible Notes are convertible at a conversion rate of 9.8643 shares of our common stock per $1,000 principal amount of the 2023 Convertible Notes (equivalent to a conversion price of approximately $101.38 per share of common stock). Subject to the conditions set forth in the indenture governing the 2023 Convertible Notes, holders may convert their 2023 Convertible Notes at any time prior to the close of business on the business day immediately preceding May 15, 2023. The circumstances required to allow the holders to convert their 2023 Convertible Notes prior to maturity were not met as of March 31, 2020 . The excess of the principal amount of the liability over its carrying amount ("debt discount") is amortized to interest expense over the term of the 2023 Convertible Notes using the effective interest rate method. We incurred debt issue costs and allocated the total amount to the liability and equity components of the 2023 Convertible Notes based on their relative values. The debt issue costs attributable to the liability component are amortized to interest expense over the term of the 2023 Convertible Notes using the effective interest rate method. Issuance costs attributable to the equity component were netted with the equity component in stockholders' equity. The table below summarizes the amount of interest cost recognized by us for both the contractual interest expense and amortization of the debt discount for the 2023 Convertible Notes: Three Months Ended March 31, 2020 2019 Contractual interest expense $ 1,581 $ 1,581 Amortization of debt discount (1) 2,225 2,108 Total $ 3,806 $ 3,689 (1) The effective interest rate of the liability component was 5.45% as of March 31, 2020 . Credit Facility On June 26, 2015, we entered into a credit agreement (the "Original Credit Agreement"), which provides for a $550.0 million senior secured bank revolving credit facility (the “Credit Facility”) maturing on June 26, 2020. In November 2018, we amended and restated the Original Credit Agreement, to, among other things, extend the maturity of the revolving loans under the Credit Facility to November 30, 2023 and incurred an additional $1.7 million of debt issuance costs (the Original Credit Agreement as amended and restated, the “Credit Agreement”). The Company classified the borrowings under the Company’s Credit Facility as long-term debt in the accompanying Condensed Consolidated Balance Sheets, as amounts due under the Credit Agreement are not contractually required or expected to be liquidated for more than one year from the applicable balance sheet date. Additionally, $1.0 million of the borrowing limit under the Credit Facility was utilized (and, therefore, unavailable) as of March 31, 2020 for letters of credit. There were $1.6 million and $2.0 million of unamortized debt issue costs related to the Credit Facility as of March 31, 2020 and December 31, 2019 , respectively. These amounts were included in “Other assets” on our Condensed Consolidated Balance Sheets. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We lease office space and equipment under non-cancelable operating leases. We recognize operating lease expense on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are expensed on a straight-line basis. Most leases include one or more options to renew, with renewal terms that can extend the lease term from six months to seven years . The exercise of lease renewal options is at our sole discretion. Certain of our lease agreements include rental payments that are adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The table below summarizes the carrying amount of our operating lease assets and liabilities: Leases Classification As of March 31, 2020 As of December 31, 2019 Assets Operating lease assets Operating lease assets $ 149,570 $ 159,777 Total lease assets $ 149,570 $ 159,777 Liabilities Current Operating lease liabilities Accounts payable, accrued expenses and other $ 36,235 $ 35,727 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 163,594 176,378 Total lease liabilities $ 199,829 $ 212,105 The table below summarizes total lease costs: Three months ended March 31, Lease Cost 2020 2019 Operating lease costs $ 11,900 $ 10,865 Short-term lease costs 522 863 Variable lease costs 2,987 3,013 Sublease income (1,090 ) (1,197 ) Total lease cost $ 14,319 $ 13,544 We sublease certain of our leased office spaces to third parties. Our sublease portfolio consists of leases of office space that we have vacated before the lease term expiration. Operating lease expense on vacated office space is reduced by sublease rental income, which is recorded to SG&A expenses on the Condensed Consolidated Statements of Comprehensive Income. Our sublease arrangements do not contain renewal options or restrictive covenants. We estimate future sublease rental income to be $3.6 million for the remainder of 2020, $4.5 million in 2021, $0.7 million in 2022, $0.6 million in 2023, $0.6 million in 2024 and $0.3 million in years beyond 2024. The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheet: As of March 31, 2020 2020 (remaining) $ 32,688 2021 50,784 2022 31,886 2023 26,654 2024 23,518 Thereafter 75,776 Total future lease payments 241,306 Less: imputed interest (41,477 ) Total $ 199,829 The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate: Three months ended March 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 13,431 $ 11,535 Operating lease assets obtained in exchange for lease liabilities $ 1,455 $ 4,045 Weighted average remaining lease term (years) Operating leases 6.5 6.5 Weighted average discount rate Operating leases 5.6 % 6.2 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to legal actions arising in the ordinary course of business. In management’s opinion, we believe we have adequate legal defenses and/or insurance coverage with respect to the eventuality of such actions. We do not believe any settlement or judgment relating to any pending legal action would materially affect our financial position or results of operations. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the three months ended March 31, 2020 , we granted 78,312 restricted share awards, 22,945 restricted stock units and 108,718 performance stock units. Our performance stock units are presented at the maximum potential payout percentage of 150% of target shares granted. These awards are recorded as equity on the Condensed Consolidated Balance Sheets. During the three months ended March 31, 2020 , no stock options or shares of restricted stock were forfeited prior to the completion of the applicable vesting requirements. Total share-based compensation expense, net of forfeitures, for the three months ended March 31, 2020 and 2019 is detailed in the following table: Three Months Ended March 31, Income Statement Classification 2020 2019 Direct cost of revenues $ 5,723 $ 5,243 Selling, general and administrative expenses 3,211 2,432 Total share-based compensation expense $ 8,934 $ 7,675 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On June 2, 2016, our Board of Directors authorized a stock repurchase program of up to $100.0 million (the “Repurchase Program”). On each of May 18, 2017, December 1, 2017, February 21, 2019 and February 20, 2020, our Board of Directors authorized an additional $100.0 million , respectively, increasing the Repurchase Program to an aggregate authorization of $500.0 million . No time limit has been established for the completion of the Repurchase Program, and the Repurchase Program may be suspended, discontinued or replaced by the Board of Directors at any time without prior notice. As of March 31, 2020 , we have $116.3 million available under the Repurchase Program to repurchase additional shares. The following table details our stock repurchases under the Repurchase Program: Three Months Ended March 31, 2020 2019 Shares of common stock repurchased and retired 450 328 Average price paid per share $ 111.73 $ 66.70 Total cost $ 50,301 $ 21,877 Common stock outstanding was 37.1 million and 37.4 million shares as of March 31, 2020 and December 31, 2019 , respectively. Common stock outstanding includes unvested restricted stock awards, which are considered issued and outstanding under the terms of the restricted stock award agreements. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We manage our business in five reportable segments: Corporate Finance & Restructuring ("Corporate Finance"), Forensic and Litigation Consulting ("FLC"), Economic Consulting, Technology and Strategic Communications. Our Corporate Finance segment focuses on the strategic, operational, financial, transactional and capital needs of our clients around the world and delivers a wide range of service offerings related to restructuring, business transformation and transactions. Our restructuring practice includes corporate restructuring, including bankruptcy and interim management services. Our business transformation and transactions practices include financial, operational and performance improvement services, as well as due diligence, financing advisory, mergers and acquisitions ("M&A") advisory, M&A integration, carveout support and valuations. Our FLC segment provides law firms, companies, government clients and other interested parties with multidisciplinary and independent services related to risk advisory, investigations and disputes. We have expertise in anti-corruption/anti-money laundering investigations and compliance, cybersecurity, data analytics, export controls and sanctions, and monitorship. We offer specialized industry expertise in the areas of insurance, construction, healthcare, environmental and trial services. Our Economic Consulting segment provides law firms, companies, government entities and other interested parties with analysis of complex economic issues for use in legal, regulatory and international arbitration proceedings, strategic decision making and public policy debates in the United States and around the world. Our Technology segment provides companies and law firms with a comprehensive and global portfolio of consulting and services for information governance, privacy and security, electronic discovery and insight analytics. Our consulting expertise enables clients to more confidently govern, secure, find, analyze and rapidly understand their data in the context of compliance and risk. Our Strategic Communications segment designs and executes communications strategies for CEOs, management teams and boards of directors that help them seize opportunities, manage financial, regulatory and reputational challenges, navigate market disruptions, articulate their corporate brand, stake a competitive position and preserve their freedom to operate. We evaluate the performance of our operating segments based on Adjusted Segment EBITDA, a GAAP financial measure. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We define Total Adjusted Segment EBITDA, a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We use Adjusted Segment EBITDA to internally evaluate the financial performance of our segments because we believe it reflects current core operating performance and provides an indicator of the segment’s ability to generate cash. The table below presents revenues and Adjusted Segment EBITDA for our reportable segments: Three Months Ended March 31, 2020 2019 Revenues Corporate Finance $ 207,749 $ 160,966 FLC 147,597 138,997 Economic Consulting 132,138 142,271 Technology 58,723 51,336 Strategic Communications 58,386 57,704 Total revenues $ 604,593 $ 551,274 Adjusted Segment EBITDA Corporate Finance $ 48,946 $ 37,361 FLC 21,208 31,817 Economic Consulting 12,710 24,040 Technology 14,484 12,723 Strategic Communications 8,776 11,549 Total Adjusted Segment EBITDA $ 106,124 $ 117,490 The table below reconciles net income to Total Adjusted Segment EBITDA: Three Months Ended March 31, 2020 2019 Net income $ 56,747 $ 62,645 Add back: Income tax provision 16,465 19,930 Interest income and other (5,017 ) (159 ) Interest expense 4,861 4,746 Unallocated corporate expenses 23,591 22,103 Segment depreciation expense 7,146 6,364 Amortization of intangible assets 2,331 1,861 Total Adjusted Segment EBITDA $ 106,124 $ 117,490 |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements of FTI Consulting, Inc., including its consolidated subsidiaries (collectively, the “Company,” “we,” “our” or “FTI Consulting”), presented herein, have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and under the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Some of the information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations. Certain prior period amounts have been reclassified to conform to the current period presentation. In management’s opinion, the interim financial statements reflect all adjustments that are necessary for a fair presentation of the results for the interim periods presented. All adjustments made were normal recurring accruals. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC. |
New Accounting Standards | Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15 ("ASU 2018-15"), Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which requires companies to capitalize implementation costs of a hosting arrangement that is a service contract and expense those costs over the term of the hosting arrangement. On January 1, 2020, we prospectively adopted ASU 2018-15 for eligible costs incurred on or after the adoption date. The adoption of this standard may result in the recognition of additional internal use software costs, which are included in the “Property and equipment, net” financial statement line item on the Condensed Consolidated Balance Sheets. There was no material impact on the Condensed Consolidated Balance Sheets as of March 31, 2020 or on the Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Statements of Stockholders’ Equity or Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020. Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to reduce the complexity in accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance. The amendments in this ASU are effective for annual periods beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, although early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Ended March 31, 2020 2019 Numerator — basic and diluted Net income $ 56,747 $ 62,645 Denominator Weighted average number of common shares outstanding — basic 36,415 36,981 Effect of dilutive convertible notes 433 — Effect of dilutive stock options 461 431 Effect of dilutive restricted shares 881 807 Weighted average number of common shares outstanding — diluted 38,190 38,219 Earnings per common share — basic $ 1.56 $ 1.69 Earnings per common share — diluted $ 1.49 $ 1.64 Antidilutive stock options and restricted shares 12 49 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amounts of Goodwill by Operating Segment | The table below summarizes the changes in the carrying amount of goodwill by reportable segment: Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Total Balance at December 31, 2019 Goodwill $ 478,842 $ 232,120 $ 268,677 $ 96,770 $ 320,497 $ 1,396,906 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at December 31, 2019 478,842 232,120 268,677 96,770 126,358 1,202,767 Foreign currency translation adjustment and other (3,771 ) (1,802 ) (331 ) (81 ) (4,834 ) (10,819 ) Balance at March 31, 2020 Goodwill 475,071 230,318 268,346 96,689 315,663 1,386,087 Accumulated goodwill impairment — — — — (194,139 ) (194,139 ) Goodwill, net at March 31, 2020 $ 475,071 $ 230,318 $ 268,346 $ 96,689 $ 121,524 $ 1,191,948 |
Schedule of Other Intangible Assets | Other intangible assets were as follows: March 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets Customer relationships $ 97,870 $ 77,171 $ 20,699 $ 99,613 $ 76,808 $ 22,805 Trademarks 9,730 1,051 8,679 9,855 653 9,202 Acquired software and other 3,319 2,115 1,204 3,386 2,061 1,325 110,919 80,337 30,582 112,854 79,522 33,332 Non-amortizing intangible assets Trademarks 5,100 — 5,100 5,100 — 5,100 Total $ 116,019 $ 80,337 $ 35,682 $ 117,954 $ 79,522 $ 38,432 |
Schedule of Other Intangible Assets | Other intangible assets were as follows: March 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets Customer relationships $ 97,870 $ 77,171 $ 20,699 $ 99,613 $ 76,808 $ 22,805 Trademarks 9,730 1,051 8,679 9,855 653 9,202 Acquired software and other 3,319 2,115 1,204 3,386 2,061 1,325 110,919 80,337 30,582 112,854 79,522 33,332 Non-amortizing intangible assets Trademarks 5,100 — 5,100 5,100 — 5,100 Total $ 116,019 $ 80,337 $ 35,682 $ 117,954 $ 79,522 $ 38,432 |
Schedule of Future Amortization Expense Intangible Assets | We estimate our future amortization expense for our intangible assets with finite lives to be as follows: Year As of March 31, 2020 (1) 2020 (remaining) $ 6,939 2021 8,740 2022 6,944 2023 3,564 2024 2,177 Thereafter 2,218 $ 30,582 (1) Actual amortization expense to be reported in future periods could differ from these estimates because of new intangible asset acquisitions, impairments, changes in useful lives, or other relevant factors or changes. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying and Estimated Fair Value of Other Financial Instruments | The following table presents the carrying amounts and estimated fair values of our financial instruments by hierarchy level as of March 31, 2020 and December 31, 2019 : March 31, 2020 Hierarchy Level (Fair Value) Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 15,184 $ — $ — $ 15,184 2023 Convertible Notes (2) 278,193 — 417,937 — Total $ 293,377 $ — $ 417,937 $ 15,184 December 31, 2019 Hierarchy Level (Fair Value) Carrying Amount Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration, including current portion (1) $ 14,826 $ — $ — $ 14,826 2023 Convertible Notes (2) 275,609 — 398,016 — Total $ 290,435 $ — $ 398,016 $ 14,826 (1) The short-term portion is included in “Accounts payable, accrued expenses and other” and the long-term portion is included in “Other liabilities” on the Condensed Consolidated Balance Sheets. (2) The carrying values include unamortized deferred debt issue costs and debt discount. |
Schedule of Acquisition-Related Contingent Consideration | The change in our liability for acquisition-related contingent consideration for our Level 3 financial instruments is as follows: Liability for Acquisition-Related Contingent Consideration Balance at December 31, 2019 $ 14,826 Accretion for time value of money (1) 506 Foreign currency translation adjustment (2) (148 ) Balance at March 31, 2020 $ 15,184 Liability for Acquisition-Related Contingent Consideration Balance at December 31, 2018 $ 3,698 Accretion for time value of money (1) 93 Balance at March 31, 2019 $ 3,791 (1) Accretion for the time value of money is included in "Selling, general and administrative expenses" on the Condensed Consolidated Statements of Comprehensive Income. (2) Foreign currency translation adjustments are included in "Other comprehensive income (loss), net of tax" on the Condensed Consolidated Statements of Comprehensive Income. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Components of Debt Obligations | The table below summarizes the components of the Company’s debt: March 31, December 31, 2023 Convertible Notes $ 316,250 $ 316,250 Credit Facility 50,000 — Total debt 366,250 316,250 Less: deferred debt discount (33,168 ) (35,393 ) Less: deferred debt issue costs (4,889 ) (5,248 ) Long-term debt, net (1) $ 328,193 $ 275,609 Additional paid-in capital $ 35,306 $ 35,306 Discount attribution to equity (1,175 ) (1,175 ) Equity component, net $ 34,131 $ 34,131 (1) There were no current portions of long-term debt as of March 31, 2020 and December 31, 2019 . |
Summary of Interest Expense | The table below summarizes the amount of interest cost recognized by us for both the contractual interest expense and amortization of the debt discount for the 2023 Convertible Notes: Three Months Ended March 31, 2020 2019 Contractual interest expense $ 1,581 $ 1,581 Amortization of debt discount (1) 2,225 2,108 Total $ 3,806 $ 3,689 (1) The effective interest rate of the liability component was 5.45% as of March 31, 2020 . |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Carrying Amount of Operating Lease Assets and Liabilities | The table below summarizes the carrying amount of our operating lease assets and liabilities: Leases Classification As of March 31, 2020 As of December 31, 2019 Assets Operating lease assets Operating lease assets $ 149,570 $ 159,777 Total lease assets $ 149,570 $ 159,777 Liabilities Current Operating lease liabilities Accounts payable, accrued expenses and other $ 36,235 $ 35,727 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 163,594 176,378 Total lease liabilities $ 199,829 $ 212,105 |
Schedule of Lease Cost | The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate: Three months ended March 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 13,431 $ 11,535 Operating lease assets obtained in exchange for lease liabilities $ 1,455 $ 4,045 Weighted average remaining lease term (years) Operating leases 6.5 6.5 Weighted average discount rate Operating leases 5.6 % 6.2 % The table below summarizes total lease costs: Three months ended March 31, Lease Cost 2020 2019 Operating lease costs $ 11,900 $ 10,865 Short-term lease costs 522 863 Variable lease costs 2,987 3,013 Sublease income (1,090 ) (1,197 ) Total lease cost $ 14,319 $ 13,544 |
Schedule of Future Minimum Lease Payments | The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheet: As of March 31, 2020 2020 (remaining) $ 32,688 2021 50,784 2022 31,886 2023 26,654 2024 23,518 Thereafter 75,776 Total future lease payments 241,306 Less: imputed interest (41,477 ) Total $ 199,829 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | Total share-based compensation expense, net of forfeitures, for the three months ended March 31, 2020 and 2019 is detailed in the following table: Three Months Ended March 31, Income Statement Classification 2020 2019 Direct cost of revenues $ 5,723 $ 5,243 Selling, general and administrative expenses 3,211 2,432 Total share-based compensation expense $ 8,934 $ 7,675 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | The following table details our stock repurchases under the Repurchase Program: Three Months Ended March 31, 2020 2019 Shares of common stock repurchased and retired 450 328 Average price paid per share $ 111.73 $ 66.70 Total cost $ 50,301 $ 21,877 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Revenues and Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization for Reportable Segments | The table below presents revenues and Adjusted Segment EBITDA for our reportable segments: Three Months Ended March 31, 2020 2019 Revenues Corporate Finance $ 207,749 $ 160,966 FLC 147,597 138,997 Economic Consulting 132,138 142,271 Technology 58,723 51,336 Strategic Communications 58,386 57,704 Total revenues $ 604,593 $ 551,274 Adjusted Segment EBITDA Corporate Finance $ 48,946 $ 37,361 FLC 21,208 31,817 Economic Consulting 12,710 24,040 Technology 14,484 12,723 Strategic Communications 8,776 11,549 Total Adjusted Segment EBITDA $ 106,124 $ 117,490 |
Reconciliation of Net Income to Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization | The table below reconciles net income to Total Adjusted Segment EBITDA: Three Months Ended March 31, 2020 2019 Net income $ 56,747 $ 62,645 Add back: Income tax provision 16,465 19,930 Interest income and other (5,017 ) (159 ) Interest expense 4,861 4,746 Unallocated corporate expenses 23,591 22,103 Segment depreciation expense 7,146 6,364 Amortization of intangible assets 2,331 1,861 Total Adjusted Segment EBITDA $ 106,124 $ 117,490 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Aug. 20, 2018 | |
Earnings Per Common Share [Line Items] | |||
Conversion price (in dollars per share) | $ 101.38 | ||
Numerator — basic and diluted | |||
Net income | $ 56,747 | $ 62,645 | |
Denominator | |||
Weighted average number of common shares outstanding — basic (in shares) | 36,415 | 36,981 | |
Effect of dilutive convertible notes (in shares) | 433 | 0 | |
Effect of dilutive stock options (in shares) | 461 | 431 | |
Effect of dilutive restricted shares (in shares) | 881 | 807 | |
Weighted average number of common shares outstanding — diluted (in shares) | 38,190 | 38,219 | |
Earnings per common share — basic (in dollars per share) | $ 1.56 | $ 1.69 | |
Earnings per common share — diluted (in dollars per share) | $ 1.49 | $ 1.64 | |
Stock Options And Restricted Shares | |||
Denominator | |||
Antidilutive stock options and restricted shares (in shares) | 12 | 49 | |
Senior Notes | Convertible Note Due 2023 | |||
Earnings Per Common Share [Line Items] | |||
Interest rate (as a percent) | 2.00% | ||
Conversion price (in dollars per share) | $ 101.38 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Performance obligations satisfied or partially satisfied in previous periods | $ 8.3 | $ 6.4 | |
Contract asset | $ 1.3 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue from Contract with Customer [Abstract] | |||
Unfulfilled performance obligations | $ 2.3 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligation expected duration | 24 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |||
Revenue from Contract with Customer [Abstract] | |||
Unfulfilled performance obligations | $ 1.4 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligation expected duration | 24 months |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance For Doubtful Accounts And Unbilled Services [Abstract] | ||
Provision for doubtful accounts | $ 3,872 | $ 3,784 |
Accounts receivable, writeoff | $ 6,100 | $ 2,500 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 1,396,906 |
Accumulated goodwill impairment | (194,139) |
Goodwill | 1,202,767 |
Foreign currency translation adjustment and other | (10,819) |
Goodwill | 1,386,087 |
Accumulated goodwill impairment | (194,139) |
Goodwill | 1,191,948 |
Corporate Finance & Restructuring | |
Goodwill [Roll Forward] | |
Goodwill | 478,842 |
Goodwill | 478,842 |
Foreign currency translation adjustment and other | (3,771) |
Goodwill | 475,071 |
Goodwill | 475,071 |
Forensic and Litigation Consulting | |
Goodwill [Roll Forward] | |
Goodwill | 232,120 |
Goodwill | 232,120 |
Foreign currency translation adjustment and other | (1,802) |
Goodwill | 230,318 |
Goodwill | 230,318 |
Economic Consulting | |
Goodwill [Roll Forward] | |
Goodwill | 268,677 |
Goodwill | 268,677 |
Foreign currency translation adjustment and other | (331) |
Goodwill | 268,346 |
Goodwill | 268,346 |
Technology | |
Goodwill [Roll Forward] | |
Goodwill | 96,770 |
Goodwill | 96,770 |
Foreign currency translation adjustment and other | (81) |
Goodwill | 96,689 |
Goodwill | 96,689 |
Strategic Communications | |
Goodwill [Roll Forward] | |
Goodwill | 320,497 |
Accumulated goodwill impairment | (194,139) |
Goodwill | 126,358 |
Foreign currency translation adjustment and other | (4,834) |
Goodwill | 315,663 |
Accumulated goodwill impairment | (194,139) |
Goodwill | $ 121,524 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, amortizing intangible assets | $ 110,919 | $ 112,854 |
Accumulated amortization, amortizing intangible assets | 80,337 | 79,522 |
Net carrying amount, amortizing intangible assets | 30,582 | 33,332 |
Gross carrying amount, non-amortizing intangible assets | 116,019 | 117,954 |
Accumulated amortization, non-amortizing intangible assets | 35,682 | 38,432 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, non-amortizing intangible assets | 5,100 | 5,100 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, amortizing intangible assets | 97,870 | 99,613 |
Accumulated amortization, amortizing intangible assets | 77,171 | 76,808 |
Net carrying amount, amortizing intangible assets | 20,699 | 22,805 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, amortizing intangible assets | 9,730 | 9,855 |
Accumulated amortization, amortizing intangible assets | 1,051 | 653 |
Net carrying amount, amortizing intangible assets | 8,679 | 9,202 |
Acquired software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, amortizing intangible assets | 3,319 | 3,386 |
Accumulated amortization, amortizing intangible assets | 2,115 | 2,061 |
Net carrying amount, amortizing intangible assets | $ 1,204 | $ 1,325 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of other intangible assets | $ 2,331 | $ 1,861 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 (remaining) | $ 6,939 | |
2021 | 8,740 | |
2022 | 6,944 | |
2023 | 3,564 | |
2024 | 2,177 | |
Thereafter | 2,218 | |
Net carrying amount, amortizing intangible assets | $ 30,582 | $ 33,332 |
Financial Instruments - Carryin
Financial Instruments - Carrying And Estimated Fair Value Of Other Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | $ 15,184 | $ 14,826 |
Long-term debt | 278,193 | 275,609 |
Total | 293,377 | 290,435 |
Level 1 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | 0 | 0 |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Level 2 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | 0 | 0 |
Long-term debt | 417,937 | 398,016 |
Total | 417,937 | 398,016 |
Level 3 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | 15,184 | 14,826 |
Long-term debt | 0 | 0 |
Total | $ 15,184 | $ 14,826 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | Mar. 31, 2020 |
Measurement Input, Discount Rate | Probability Weighted | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.135 |
Measurement Input, Discount Rate | Monte Carlo | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.136 |
Measurement Input, Price Volatility | Monte Carlo | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 0.300 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 14,826 | $ 3,698 |
Accretion for time value of money | 506 | 93 |
Foreign currency translation adjustment | (148) | |
Ending balance | $ 15,184 | $ 3,791 |
Debt - Summary of Components of
Debt - Summary of Components of Debt Obligations (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 366,250,000 | $ 316,250,000 |
Less: deferred debt discount | (33,168,000) | (35,393,000) |
Less: deferred debt issue costs | (4,889,000) | (5,248,000) |
Long-term debt, net | 328,193,000 | 275,609,000 |
Additional paid-in capital | 35,306,000 | 35,306,000 |
Discount attribution to equity | (1,175,000) | (1,175,000) |
Equity component, net | 34,131,000 | 34,131,000 |
Current portion of long-term debt | 0 | 0 |
Convertible Note Due 2023 | ||
Debt Instrument [Line Items] | ||
Total debt | 316,250,000 | 316,250,000 |
Credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | $ 50,000,000 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) | Aug. 20, 2018USD ($)$ / shares | Mar. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Nov. 30, 2018USD ($) | Jun. 26, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Principal amount | $ 366,250,000 | $ 316,250,000 | |||
Conversion price (in dollars per share) | $ / shares | $ 101.38 | ||||
Unamortized debt issuance costs | $ 4,889,000 | 5,248,000 | |||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Borrowing limit used | 1,000,000 | ||||
Convertible Note Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 316,250,000 | 316,250,000 | |||
Convertible Note Due 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 316,300,000 | ||||
Interest rate (as a percent) | 2.00% | ||||
Debt conversion ratio (in shares) | 0.0098643 | ||||
Conversion price (in dollars per share) | $ / shares | $ 101.38 | ||||
Credit facility | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 50,000,000 | 0 | |||
Credit facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 550,000,000 | ||||
Debt issuance costs | $ 1,700,000 | ||||
Unamortized debt issuance costs | $ 1,600,000 | $ 2,000,000 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Amortization of debt discount | $ 2,978 | $ 2,860 |
Senior Notes | Convertible Note Due 2023 | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 1,581 | 1,581 |
Amortization of debt discount | 2,225 | 2,108 |
Total | $ 3,806 | $ 3,689 |
Effective interest rate (as a percent) | 5.45% |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Mar. 31, 2020USD ($) |
Sublease Rental Income | |
2020 | $ 3.6 |
2021 | 4.5 |
2022 | 0.7 |
2023 | 0.6 |
2024 | 0.6 |
Thereafter | $ 0.3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 6 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 7 years |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease assets | $ 149,570 | $ 159,777 |
Current operating lease liabilities | 36,235 | 35,727 |
Noncurrent operating lease liabilities | 163,594 | 176,378 |
Total lease liabilities | $ 199,829 | $ 212,105 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 11,900 | $ 10,865 |
Short-term lease costs | 522 | 863 |
Variable lease costs | 2,987 | 3,013 |
Sublease income | (1,090) | (1,197) |
Total lease cost | $ 14,319 | $ 13,544 |
Leases - Maturity Analysis (Det
Leases - Maturity Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (remaining) | $ 32,688 | |
2021 | 50,784 | |
2022 | 31,886 | |
2023 | 26,654 | |
2024 | 23,518 | |
Thereafter | 75,776 | |
Total future lease payments | 241,306 | |
Less: imputed interest | (41,477) | |
Total lease liabilities | $ 199,829 | $ 212,105 |
Leases - Cash Paid For Operatin
Leases - Cash Paid For Operating Leases and Noncash Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 13,431 | $ 11,535 |
Operating lease assets obtained in exchange for lease liabilities | $ 1,455 | $ 4,045 |
Weighted average remaining lease term (years) | 6 years 6 months | 6 years 6 months |
Weighted average discount rate | 5.60% | 6.20% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020shares | |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options forfeited (in shares) | 0 |
Restricted stock awards forfeited (in shares) | 0 |
Restricted Stock Awards | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based awards granted (in shares) | 78,312 |
Restricted Stock Units (RSUs) | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based awards granted (in shares) | 22,945 |
Performance-Based Restricted Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 150.00% |
Performance-Based Restricted Unit | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based awards granted (in shares) | 108,718 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 8,934 | $ 7,675 |
Direct cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 5,723 | 5,243 |
Selling, general and administrative expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 3,211 | $ 2,432 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) shares in Thousands | Mar. 31, 2020 | Feb. 20, 2020 | Dec. 31, 2019 | Feb. 21, 2019 | Dec. 01, 2017 | May 18, 2017 | Jun. 02, 2016 |
Stockholders Equity [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 37,110 | 37,390 | |||||
2016 Stock Repurchase Program | |||||||
Stockholders Equity [Line Items] | |||||||
Stock repurchase program authorized amount | $ 500,000,000 | $ 100,000,000 | |||||
Stock repurchase program additional amount authorized | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||
Available amount under repurchase program | $ 116,300,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stockholders Equity [Line Items] | ||
Total cost | $ 50,311 | $ 21,883 |
2016 Stock Repurchase Program | ||
Stockholders Equity [Line Items] | ||
Shares of common stock repurchased and retired (in shares) | 450 | 328 |
Average price paid per share (in dollars per share) | $ 111.73 | $ 66.70 |
Total cost | $ 50,301 | $ 21,877 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 604,593 | $ 551,274 |
Adjusted Segment EBITDA | 106,124 | 117,490 |
Corporate Finance | ||
Segment Reporting Information [Line Items] | ||
Revenues | 207,749 | 160,966 |
Adjusted Segment EBITDA | 48,946 | 37,361 |
FLC | ||
Segment Reporting Information [Line Items] | ||
Revenues | 147,597 | 138,997 |
Adjusted Segment EBITDA | 21,208 | 31,817 |
Economic Consulting | ||
Segment Reporting Information [Line Items] | ||
Revenues | 132,138 | 142,271 |
Adjusted Segment EBITDA | 12,710 | 24,040 |
Technology | ||
Segment Reporting Information [Line Items] | ||
Revenues | 58,723 | 51,336 |
Adjusted Segment EBITDA | 14,484 | 12,723 |
Strategic Communications | ||
Segment Reporting Information [Line Items] | ||
Revenues | 58,386 | 57,704 |
Adjusted Segment EBITDA | $ 8,776 | $ 11,549 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Net Income to Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting [Abstract] | ||
Net income | $ 56,747 | $ 62,645 |
Add back: | ||
Income tax provision | 16,465 | 19,930 |
Interest income and other | (5,017) | (159) |
Interest expense | 4,861 | 4,746 |
Unallocated corporate expenses | 23,591 | 22,103 |
Segment depreciation expense | 7,146 | 6,364 |
Amortization of intangible assets | 2,331 | 1,861 |
Total Adjusted Segment EBITDA | $ 106,124 | $ 117,490 |