Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 20, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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, $0.01 par value | |
Trading Symbol | FCN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,423,110 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000887936 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 327,047 | $ 494,485 |
Accounts receivable, net | 947,993 | 754,120 |
Current portion of notes receivable | 27,198 | 30,256 |
Prepaid expenses and other current assets | 91,187 | 91,166 |
Total current assets | 1,393,425 | 1,370,027 |
Property and equipment, net | 144,713 | 142,163 |
Operating lease assets | 195,339 | 215,995 |
Goodwill | 1,212,541 | 1,232,791 |
Intangible assets, net | 25,673 | 31,990 |
Notes receivable, net | 54,144 | 53,539 |
Other assets | 56,259 | 54,404 |
Total assets | 3,082,094 | 3,100,909 |
Current liabilities | ||
Accounts payable, accrued expenses and other | 175,491 | 165,025 |
Accrued compensation | 422,985 | 507,556 |
Billings in excess of services provided | 50,523 | 45,535 |
Total current liabilities | 648,999 | 718,116 |
Long-term debt, net | 314,756 | 297,158 |
Noncurrent operating lease liabilities | 213,449 | 236,026 |
Deferred income taxes | 161,486 | 170,612 |
Other liabilities | 98,821 | 95,676 |
Total liabilities | 1,437,511 | 1,517,588 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value; shares authorized — 5,000; none outstanding | 0 | 0 |
Common stock, $0.01 par value; shares authorized — 75,000; shares issued and outstanding 34,422 (2022) and 34,333 (2021) | 344 | 343 |
Additional paid-in capital | 0 | 13,662 |
Retained earnings | 1,868,424 | 1,698,156 |
Accumulated other comprehensive loss | (224,185) | (128,840) |
Total stockholders' equity | 1,644,583 | 1,583,321 |
Total liabilities and stockholders' equity | $ 3,082,094 | $ 3,100,909 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 34,422,000 | 34,333,000 |
Common stock, shares outstanding (in shares) | 34,422,000 | 34,333,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 775,865 | $ 702,228 | $ 2,254,477 | $ 2,099,991 |
Operating expenses | ||||
Direct cost of revenues | 526,654 | 472,235 | 1,539,838 | 1,431,381 |
Selling, general and administrative expenses | 159,186 | 138,600 | 476,097 | 399,076 |
Amortization of intangible assets | 2,315 | 2,860 | 7,320 | 8,515 |
Costs and Expenses | 688,155 | 613,695 | 2,023,255 | 1,838,972 |
Operating income | 87,710 | 88,533 | 231,222 | 261,019 |
Other income (expense) | ||||
Interest income and other | 7,771 | 5,175 | 10,418 | 5,297 |
Interest expense | (2,378) | (5,073) | (7,468) | (15,164) |
Other income (expense) | 5,393 | 102 | 2,950 | (9,867) |
Income before income tax provision | 93,103 | 88,635 | 234,172 | 251,152 |
Income tax provision | 15,836 | 19,155 | 46,156 | 54,394 |
Net income | $ 77,267 | $ 69,480 | $ 188,016 | $ 196,758 |
Earnings per common share — basic (in dollars per share) | $ 2.29 | $ 2.07 | $ 5.57 | $ 5.88 |
Earnings per common share — diluted (in dollars per share) | $ 2.15 | $ 1.96 | $ 5.25 | $ 5.58 |
Other comprehensive loss, net of tax | ||||
Foreign currency translation adjustments, net of tax expense of $0 | $ (48,475) | $ (18,607) | $ (95,345) | $ (18,042) |
Total other comprehensive loss, net of tax | (48,475) | (18,607) | (95,345) | (18,042) |
Comprehensive income | $ 28,792 | $ 50,873 | $ 92,671 | $ 178,716 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2020 | 34,481 | |||||||
Beginning Balance at Dec. 31, 2020 | $ 1,400,181 | $ 345 | $ 0 | $ 1,506,271 | $ (106,435) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 64,496 | 64,496 | ||||||
Other comprehensive income (loss): | ||||||||
Cumulative translation adjustment | (5,242) | (5,242) | ||||||
Issuance of common stock in connection with: | ||||||||
Exercise of options (in shares) | 12 | |||||||
Exercise of options | 434 | 434 | ||||||
Restricted share grants (in shares) | 157 | |||||||
Restricted share grants | (7,231) | $ 1 | (7,232) | |||||
Stock units issued under incentive compensation plan | 2,603 | 2,603 | ||||||
Purchase and retirement of common stock (in shares) | (422) | |||||||
Purchase and retirement of common stock | (46,133) | $ (4) | (3,047) | (43,082) | ||||
Share-based compensation | 7,242 | 7,242 | ||||||
Ending Balance (in shares) at Mar. 31, 2021 | 34,228 | |||||||
Ending Balance at Mar. 31, 2021 | 1,416,350 | $ 342 | 0 | 1,527,685 | (111,677) | |||
Beginning Balance (in shares) at Dec. 31, 2020 | 34,481 | |||||||
Beginning Balance at Dec. 31, 2020 | 1,400,181 | $ 345 | 0 | 1,506,271 | (106,435) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 196,758 | |||||||
Other comprehensive income (loss): | ||||||||
Cumulative translation adjustment | (18,042) | |||||||
Issuance of common stock in connection with: | ||||||||
Stock units issued under incentive compensation plan | 2,603 | |||||||
Ending Balance (in shares) at Sep. 30, 2021 | 34,295 | |||||||
Ending Balance at Sep. 30, 2021 | 1,544,303 | $ 343 | 8,490 | 1,659,947 | (124,477) | |||
Beginning Balance (in shares) at Mar. 31, 2021 | 34,228 | |||||||
Beginning Balance at Mar. 31, 2021 | 1,416,350 | $ 342 | 0 | 1,527,685 | (111,677) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 62,782 | 62,782 | ||||||
Other comprehensive income (loss): | ||||||||
Cumulative translation adjustment | 5,807 | 5,807 | ||||||
Issuance of common stock in connection with: | ||||||||
Exercise of options (in shares) | 33 | |||||||
Exercise of options | 1,137 | $ 1 | 1,136 | |||||
Restricted share grants (in shares) | 21 | |||||||
Restricted share grants | (1,814) | (1,814) | ||||||
Share-based compensation | 4,948 | 4,948 | ||||||
Ending Balance (in shares) at Jun. 30, 2021 | 34,282 | |||||||
Ending Balance at Jun. 30, 2021 | 1,489,210 | $ 343 | 4,270 | 1,590,467 | (105,870) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 69,480 | 69,480 | ||||||
Other comprehensive income (loss): | ||||||||
Cumulative translation adjustment | (18,607) | (18,607) | ||||||
Issuance of common stock in connection with: | ||||||||
Exercise of options (in shares) | 4 | |||||||
Exercise of options | 126 | 126 | ||||||
Restricted share grants (in shares) | 9 | |||||||
Restricted share grants | (866) | (866) | ||||||
Share-based compensation | 4,960 | 4,960 | ||||||
Ending Balance (in shares) at Sep. 30, 2021 | 34,295 | |||||||
Ending Balance at Sep. 30, 2021 | $ 1,544,303 | $ 343 | 8,490 | 1,659,947 | (124,477) | |||
Beginning Balance (in shares) at Dec. 31, 2021 | 34,333 | 34,333 | ||||||
Beginning Balance at Dec. 31, 2021 | $ 1,583,321 | $ (12,053) | $ 343 | 13,662 | $ (34,131) | 1,698,156 | $ 22,078 | (128,840) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 59,321 | 59,321 | ||||||
Other comprehensive income (loss): | ||||||||
Cumulative translation adjustment | (6,191) | (6,191) | ||||||
Issuance of common stock in connection with: | ||||||||
Exercise of options (in shares) | 26 | |||||||
Exercise of options | 923 | 923 | ||||||
Restricted share grants (in shares) | 134 | |||||||
Restricted share grants | (7,834) | $ 2 | (7,836) | |||||
Stock units issued under incentive compensation plan | 1,664 | 1,664 | ||||||
Purchase and retirement of common stock (in shares) | (22) | |||||||
Purchase and retirement of common stock | (3,098) | (3,098) | ||||||
Conversion of convertible senior notes due 2023 | (2) | (2) | ||||||
Share-based compensation | 5,967 | 5,967 | ||||||
Reclassification of negative additional paid-in capital | 0 | 22,851 | (22,851) | |||||
Ending Balance (in shares) at Mar. 31, 2022 | 34,471 | |||||||
Ending Balance at Mar. 31, 2022 | $ 1,622,018 | $ 345 | 0 | 1,756,704 | (135,031) | |||
Beginning Balance (in shares) at Dec. 31, 2021 | 34,333 | 34,333 | ||||||
Beginning Balance at Dec. 31, 2021 | $ 1,583,321 | $ (12,053) | $ 343 | 13,662 | $ (34,131) | 1,698,156 | $ 22,078 | (128,840) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 188,016 | |||||||
Other comprehensive income (loss): | ||||||||
Cumulative translation adjustment | (95,345) | |||||||
Issuance of common stock in connection with: | ||||||||
Stock units issued under incentive compensation plan | $ 1,664 | |||||||
Ending Balance (in shares) at Sep. 30, 2022 | 34,422 | 34,422 | ||||||
Ending Balance at Sep. 30, 2022 | $ 1,644,583 | $ 344 | 0 | 1,868,424 | (224,185) | |||
Beginning Balance (in shares) at Mar. 31, 2022 | 34,471 | |||||||
Beginning Balance at Mar. 31, 2022 | 1,622,018 | $ 345 | 0 | 1,756,704 | (135,031) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 51,428 | 51,428 | ||||||
Other comprehensive income (loss): | ||||||||
Cumulative translation adjustment | (40,679) | (40,679) | ||||||
Issuance of common stock in connection with: | ||||||||
Exercise of options (in shares) | 22 | |||||||
Exercise of options | 687 | 687 | ||||||
Restricted share grants (in shares) | 47 | |||||||
Restricted share grants | (8,907) | (8,907) | ||||||
Conversion of convertible senior notes due 2023 | (11) | (11) | ||||||
Share-based compensation | 6,083 | 6,083 | ||||||
Reclassification of negative additional paid-in capital | 0 | 2,647 | (2,647) | |||||
Ending Balance (in shares) at Jun. 30, 2022 | 34,540 | |||||||
Ending Balance at Jun. 30, 2022 | 1,630,619 | $ 345 | 499 | 1,805,485 | (175,710) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 77,267 | 77,267 | ||||||
Other comprehensive income (loss): | ||||||||
Cumulative translation adjustment | (48,475) | (48,475) | ||||||
Issuance of common stock in connection with: | ||||||||
Restricted share grants (in shares) | 10 | |||||||
Restricted share grants | (837) | (837) | ||||||
Purchase and retirement of common stock (in shares) | (128) | |||||||
Purchase and retirement of common stock | (20,432) | $ (1) | (20,431) | |||||
Share-based compensation | 6,441 | 6,441 | ||||||
Reclassification of negative additional paid-in capital | $ 0 | 14,328 | (14,328) | |||||
Ending Balance (in shares) at Sep. 30, 2022 | 34,422 | 34,422 | ||||||
Ending Balance at Sep. 30, 2022 | $ 1,644,583 | $ 344 | $ 0 | $ 1,868,424 | $ (224,185) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - shares shares in Thousands | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Restricted share grants, net settled shares (in shares) | 5 | 55 | 54 | 6 | 13 | 63 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating activities | ||
Net income | $ 188,016 | $ 196,758 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 27,045 | 25,631 |
Amortization and impairment of intangible assets | 7,320 | 8,515 |
Acquisition-related contingent consideration | 863 | (1,014) |
Provision for expected credit losses | 13,101 | 14,816 |
Share-based compensation | 18,491 | 17,150 |
Amortization of debt discount and issuance costs and other | 1,588 | 8,551 |
Deferred income taxes | (9,140) | 5,128 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable, billed and unbilled | (251,280) | (115,544) |
Notes receivable | 838 | 4,392 |
Prepaid expenses and other assets | (3,066) | 1,145 |
Accounts payable, accrued expenses and other | 21,936 | (22,745) |
Income taxes | 3,940 | 18,025 |
Accrued compensation | (67,763) | 2,803 |
Billings in excess of services provided | 7,672 | (7,691) |
Net cash provided by (used in) operating activities | (40,439) | 155,920 |
Investing activities | ||
Payments for acquisition of businesses, net of cash received | (6,742) | (9,833) |
Purchases of property and equipment and other | (38,935) | (52,441) |
Net cash used in investing activities | (45,677) | (62,274) |
Financing activities | ||
Borrowings under revolving line of credit | 165,000 | 377,500 |
Repayments under revolving line of credit | (165,000) | (352,500) |
Purchase and retirement of common stock | (23,530) | (46,133) |
Share-based compensation tax withholdings and other | (15,663) | (8,277) |
Payments for business acquisition liabilities | (4,848) | (7,496) |
Deposits and other | 7,092 | 1,928 |
Net cash used in financing activities | (36,949) | (34,978) |
Effect of exchange rate changes on cash and cash equivalents | (44,373) | (11,094) |
Net increase (decrease) in cash and cash equivalents | (167,438) | 47,574 |
Cash and cash equivalents, beginning of period | 494,485 | 294,953 |
Cash and cash equivalents, end of period | 327,047 | 342,527 |
Supplemental cash flow disclosures | ||
Cash paid for interest | 8,012 | 8,756 |
Cash paid for income taxes, net of refunds | 51,353 | 31,240 |
Non-cash investing and financing activities: | ||
Issuance of stock units under incentive compensation plans | 1,664 | 2,603 |
Business acquisition liabilities not yet paid | 5,593 | 0 |
Non-cash additions to property and equipment | $ 4,970 | $ 4,435 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting PoliciesThe 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, 2021 filed with the SEC. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Standards In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06 ("ASU 2020-06"), Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain events. On January 1, 2022, we adopted ASU 2020-06 using the modified retrospective method and recorded a cumulative-effect adjustment of approximately $22.1 million to the beginning balance of retained earnings at the date of adoption and a $16.4 million net increase to "Long-term debt, net" on the Condensed Consolidated Balance Sheets. As permitted by the guidance, prior comparative periods were not adjusted under this method. Pursuant to ASU 2020-06, we are no longer permitted to separately account for the liability and equity components of convertible debt instruments. As such, the carrying amount of our 2.0% convertible senior notes due 2023 ("2023 Convertible Notes") is recognized as a liability as of September 30, 2022 on the Condensed Consolidated Balance Sheets. The ASU 2020-06 adoption also resulted in the derecognition of the embedded conversion option, net of tax effects, of approximately $34.1 million, which is included in “Additional paid-in capital,” as well as the derecognition of the related deferred tax liabilities of approximately $4.3 million on the Condensed Consolidated Balance Sheets. The net effect of the adoption in the current and future periods as compared to prior periods is to reduce non-cash interest expense, or increase net income, as there is no longer a discount from the separation of the conversion feature within equity. The discount from recognition of debt issuance costs will be amortized over the effective life of the 2023 Convertible Notes using the effective interest method. ASU 2020-06 also no longer allows the use of the treasury stock method for convertible instruments for purposes of calculating diluted earnings per share and instead requires application of the if-converted method. Under that method, diluted earnings per share will generally be calculated assuming that all of the convertible debt instruments were converted solely into shares of common stock at the beginning of the reporting period unless the result would be anti-dilutive. Effective January 1, 2022, pursuant to the terms of the indenture, dated as of August 20, 2018, as amended by the first supplemental indenture, dated as of January 1, 2022 (the "First Supplemental Indenture"), between us and U.S. Bank National Association, as trustee (as so amended, the "Indenture"), the principal amount of the 2023 Convertible Notes being converted is required to be paid in cash and only the premium due upon conversion, if any, is permitted to be settled in shares, cash or a combination of shares and cash. Consequently, the if-converted method produces a similar result as the treasury stock method, which was used prior to the adoption of ASU 2020-06 for the 2023 Convertible Notes. Accounting Standards Not Yet Adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance , which requires entities to provide disclosures on significant government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for annual periods beginning after December 15, 2021 and impacts only annual financial statement footnote disclosures. 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 | 9 Months Ended |
Sep. 30, 2022 | |
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 share-based awards (restricted share awards, restricted stock units and performance stock units), each using the treasury stock method. For the three and nine months ended September 30, 2022, we used the if-converted method for calculating the potential dilutive effect of the conversion feature of the principal amount of the 2023 Convertible Notes on earnings per common share, as required by the adoption of ASU 2020-06. Prior to the adoption of ASU 2020-06, we used the treasury stock method for calculating the potential dilutive effect of the conversion feature of the principal amount of the 2023 Convertible Notes on earnings per common share because we had the ability and intent to settle the principal amount of the outstanding 2023 Convertible Notes in cash. The conversion feature had a dilutive impact on earnings per common share for the three and nine months ended September 30, 2022 and 2021, as the average market price per share of our common stock for the periods exceeded the conversion price of $101.38 per share. See Note 8, "Debt" for additional information about the 2023 Convertible Notes. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator — basic and diluted Net income $ 77,267 $ 69,480 $ 188,016 $ 196,758 Denominator Weighted average number of common shares outstanding — basic 33,812 33,495 33,741 33,478 Effect of dilutive share-based awards 545 662 607 697 Effect of dilutive stock options 322 363 330 369 Effect of dilutive convertible notes 1,239 842 1,147 721 Weighted average number of common shares outstanding — diluted 35,918 35,362 35,825 35,265 Earnings per common share — basic $ 2.29 $ 2.07 $ 5.57 $ 5.88 Earnings per common share — diluted $ 2.15 $ 1.96 $ 5.25 $ 5.58 Antidilutive stock options and share-based awards — 2 10 5 |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2022 | |
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 contract arrangements: • Time and expense arrangements require the client to pay us based on the number of hours worked at contractually agreed-upon rates. We recognize revenues for these contract arrangements based on hours incurred and contracted rates utilizing a right-to-invoice practical expedient because we have a right to consideration for services completed to date. When a time and expense arrangement has a not-to-exceed or "cap" amount and we expect to perform work in excess of the cap, we recognize revenues up to the cap amount specified by the client, based on the efforts or hours incurred as a percentage of total efforts or hours expected to be incurred (i.e., proportional performance method). • Fixed-fee arrangements require the client to pay a fixed fee in exchange for a predetermined set of professional services. We recognize revenues earned to date by applying the proportional performance method. Generally, these arrangements have one performance obligation. • Performance-based or contingent arrangements represent forms of variable consideration. In these arrangements, our fees are based on the attainment of contractually defined objectives with our client, such as completing a business transaction or assisting the client in achieving a specific business objective. We recognize revenues earned to date in an amount that is probable not to reverse and by applying the proportional performance method when the criteria for over time revenue recognition are met. Certain fees in our time and materials arrangements may be subject to approval by a third party, such as a bankruptcy court or other regulatory agency. In such cases, we record revenues based on the amount we estimate we will be entitled to in exchange for our services and only to the extent a significant reversal of revenues is not likely to occur when the uncertainty associated with the estimate is subsequently resolved. Potential fee reductions imposed by bankruptcy courts and other regulatory agencies or negotiated with specific clients are estimated on a specific identification basis. Our estimates may vary depending on the nature of the engagement, client economics, historical experience and other appropriate factors. When there are changes in our estimates of potential fee reductions, we record such changes to revenues with a corresponding offset to our billed and unbilled accounts receivable. 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 immaterial for the three months ended September 30, 2022 and $12.5 million for the nine months ended September 30, 2022, and $11.5 million and $23.0 million for the three and nine months ended September 30, 2021, respectively. Unfulfilled performance obligations primarily consist of fees not yet recognized on certain fixed-fee arrangements and performance-based and contingent arrangements. As of September 30, 2022 and December 31, 2021, the aggregate amount of the remaining contract transaction price allocated to unfulfilled performance obligations was $2.5 million and $3.7 million, respectively. We expect to recognize the majority of the related revenues over the next 24 months. We elected to utilize the optional exemption to exclude from this disclosure fixed-fee and performance-based and contingent arrangements with an original expected duration of one year or less and to exclude our time and expense arrangements for which revenues are recognized using the right-to-invoice practical expedient. Contract assets are defined as assets for which we have recorded revenues but are not yet entitled to receive our fees because certain events, such as completion of the measurement period or client approval, must occur. The contract asset balance was immaterial as of September 30, 2022 and $3.8 million as of December 31, 2021. 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 fees before work begins. The contract liability balance was $1.0 million as of September 30, 2022 and immaterial as of December 31, 2021. |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Expected Credit Losses | 9 Months Ended |
Sep. 30, 2022 | |
Allowance for Doubtful Accounts and Unbilled Services [Abstract] | |
Accounts Receivable and Allowance for Expected Credit Losses | Accounts Receivable and Allowance for Expected Credit Losses The following table summarizes the components of "Accounts receivable, net" as presented on the Condensed Consolidated Balance Sheets: September 30, December 31, Accounts receivable: Billed receivables $ 636,288 $ 542,056 Unbilled receivables 352,711 248,681 Allowance for expected credit losses (41,006) (36,617) Accounts receivable, net $ 947,993 $ 754,120 We maintain an allowance for expected credit losses, which represents the estimated aggregate amount of credit risk arising from the inability or unwillingness of specific clients to pay our fees or disputes that may affect our ability to fully collect our billed accounts receivable. We record our estimate of lifetime expected credit losses concurrently with the initial recognition of the underlying receivable. Accounts receivable, net of the allowance for expected credit losses, represents the amount we expect to collect. At each reporting date, we adjust the allowance for expected credit losses to reflect our current estimate. The following table summarizes the total provision for expected credit losses and write-offs: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Provision for expected credit losses (1) $ 4,348 $ 6,580 $ 13,101 $ 14,816 Write-offs $ 3,877 $ 5,746 $ 9,917 $ 15,464 (1) Adjustments to the allowance for expected credit losses are recorded to selling, general & administrative ("SG&A") expenses on the Condensed Consolidated Statements of Comprehensive Income. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The table below summarizes the changes in the carrying amount of goodwill by reportable segment: Corporate Finance & Restructuring (1) Forensic and Litigation Consulting (1) Economic Consulting (1) Technology (1) Strategic Communications (2) Total Balance at December 31, 2021 $ 501,046 $ 237,929 $ 268,858 $ 96,811 $ 128,147 $ 1,232,791 Acquisitions (3) 11,332 — — — — 11,332 Foreign currency translation adjustment and other (2,026) (5,870) (1,612) (61) (22,013) (31,582) Balance at September 30, 2022 $ 510,352 $ 232,059 $ 267,246 $ 96,750 $ 106,134 $ 1,212,541 (1) There were no accumulated impairment losses for the Corporate Finance & Restructuring ("Corporate Finance"), Forensic and Litigation Consulting ("FLC"), Economic Consulting or Technology segments as of September 30, 2022 and December 31, 2021. (2) Amounts for our Strategic Communications segment include gross carrying values of $300.3 million and $322.3 million as of September 30, 2022 and December 31, 2021, respectively, and accumulated impairment losses of $194.1 million as of September 30, 2022 and December 31, 2021. (3) During the nine months ended September 30, 2022, we acquired a business that was assigned to the Corporate Finance segment. We recorded $11.3 million in goodwill based on a purchase price allocation as a result of the acquisition. We have included the results of the acquired business’s operations in the Corporate Finance segment since its acquisition date. Intangible Assets Intangible assets were as follows: September 30, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets Customer relationships (1) $ 79,347 $ 63,546 $ 15,801 $ 83,101 $ 63,124 $ 19,977 Trademarks (1) 8,886 4,648 4,238 10,965 4,732 6,233 Acquired software and other (1) 967 433 534 3,114 2,434 680 89,200 68,627 20,573 97,180 70,290 26,890 Non-amortizing intangible assets Trademarks 5,100 — 5,100 5,100 — 5,100 Total $ 94,300 $ 68,627 $ 25,673 $ 102,280 $ 70,290 $ 31,990 (1) During the nine months ended September 30, 2022, we acquired a business, and its related intangible assets were assigned to the Corporate Finance segment. Intangible assets with finite lives are amortized over their estimated useful lives. We recorded amortization expense of $2.3 million and $7.3 million for the three and nine months ended September 30, 2022, respectively, and $2.9 million and $8.5 million for the three and nine months ended September 30, 2021, respectively. We estimate our future amortization expense for our intangible assets with finite lives to be as follows: Year As of September 30, 2022 (1) 2022 (remaining) $ 2,277 2023 5,844 2024 3,692 2025 3,047 2026 1,988 Thereafter 3,725 $ 20,573 (1) Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, impairments, changes in useful lives, or other relevant factors or changes. Intercompany Intellectual Property Licensing Agreement During the three months ended September 30, 2022, a U.S. subsidiary of the Company (the “Licensor”) entered into an intellectual property license agreement with certain foreign subsidiaries of the Company in consideration of royalty payments that have been partially prepaid (the "License Agreement"). The prepaid royalties remitted to the Licensor are taxable in the U.S. for the year ended December 31, 2022 and represent intangible assets in the foreign subsidiaries that are eliminated in consolidation. The impact on the U.S. current income tax provision was mainly offset by a deferred foreign income tax benefit related to the future tax deductions arising from amortization of intangible assets in the foreign subsidiaries. The License Agreement provides sufficient future taxable income in the U.S. to fully utilize the Company’s existing foreign tax credits in the U.S., which were previously subject to a valuation allowance. The impact on the tax rate for the three and nine months ended September 30, 2022 was a combined $8.3 million tax benefit. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The table below presents the carrying amounts and estimated fair values of our financial instruments by hierarchy level as of September 30, 2022 and December 31, 2021: September 30, 2022 Hierarchy Level Carrying Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration (1)(2) $ 12,847 $ — $ — $ 12,847 2023 Convertible Notes (3) 314,756 — 519,300 — Total $ 327,603 $ — $ 519,300 $ 12,847 December 31, 2021 Hierarchy Level Carrying Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration (1) $ 15,110 $ — $ — $ 15,110 2023 Convertible Notes (3) 297,158 — 466,619 — Total $ 312,268 $ — $ 466,619 $ 15,110 (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) During the nine months ended September 30, 2022, we acquired a business that was assigned to our Corporate Finance segment and recorded an acquisition-related contingent consideration liability. (3) The carrying value as of September 30, 2022 includes unamortized deferred debt issuance costs. The carrying value as of December 31, 2021 includes unamortized deferred debt issuance costs and debt discount. The fair values of financial instruments not included in the tables above are estimated to be equal to their carrying values as of September 30, 2022 and December 31, 2021. 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 pricing model. 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. Significant increases (or decreases) in these unobservable inputs in isolation would result in significantly lower (or higher) fair values. We reassess the fair value of our acquisition-related contingent consideration at each reporting period based on additional information as it becomes available. The change in our liability for acquisition-related contingent consideration for our Level 3 financial instruments is as follows: Contingent Consideration Balance at December 31, 2021 $ 15,110 Additions 5,370 Accretion expense (1) (979) Payments (4,430) Foreign currency translation adjustment (2) (115) Balance at March 31, 2022 $ 14,956 Accretion expense (1) 1,112 Payments (2,240) Foreign currency translation adjustment (2) (465) Balance at June 30, 2022 $ 13,363 Accretion expense (1) 730 Payments (1,000) Foreign currency translation adjustment and other (2) (246) Balance at September 30, 2022 $ 12,847 Contingent Consideration Balance at December 31, 2020 $ 20,118 Accretion expense (1) 1,289 Payments (1,000) Foreign currency translation adjustment (2) (612) Balance at March 31, 2021 $ 19,795 Additions 1,093 Accretion expense (1) 676 Payments (4,122) Foreign currency translation adjustment (2) 264 Remeasurement gain (3) (3,095) Balance at June 30, 2021 $ 14,611 Accretion expense (1) 116 Foreign currency translation adjustment (2) (159) Balance at September 30, 2021 $ 14,568 (1) Accretion expense is included in SG&A expenses on the Condensed Consolidated Statements of Comprehensive Income. (2) Foreign currency translation adjustments are included in "Other comprehensive loss, net of tax" on the Condensed Consolidated Statements of Comprehensive Income. (3) Remeasurement gain or loss resulting from a change in the fair value of an acquisition's contingent consideration liability is recorded in SG&A expenses on the Condensed Consolidated Statements of Comprehensive Income. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below presents the components of the Company’s debt: September 30, 2022 December 31, 2021 2023 Convertible Notes $ 316,222 $ 316,245 Total debt 316,222 316,245 Less: deferred debt discount (1) — (16,724) Less: deferred debt issuance costs (1,466) (2,363) Long-term debt, net (1)(2) $ 314,756 $ 297,158 Additional paid-in capital $ — $ 35,304 Discount attribution to equity — (1,175) Equity component, net (1) $ — $ 34,129 (1) Pursuant to the adoption of ASU 2020-06, we derecognized the conversion option of $34.1 million, net of tax, previously attributable to the equity component of the 2023 Convertible Notes. Similarly, the related debt discount is no longer amortized into income as interest expense over the life of the instrument; therefore, we recorded a $16.4 million increase to "Long-term debt, net" on the Condensed Consolidated Balance Sheet as of September 30, 2022. (2) There were no current portions of long-term debt as of September 30, 2022 and December 31, 2021. The 2023 Convertible Notes due on August 15, 2023 are classified as long-term debt as of September 30, 2022 because we have the ability and intent to refinance them on a long-term basis under our $550.0 million Credit Facility, which matures on November 30, 2023. 2023 Convertible Notes On August 20, 2018, we issued the 2023 Convertible Notes in an aggregate principal amount of $316.3 million. The 2023 Convertible Notes bear interest at a fixed rate of 2.0% per year, payable semiannually in arrears on February 15 and August 15 of each year. The 2023 Convertible Notes will mature on August 15, 2023, unless earlier converted or repurchased. As of December 31, 2021, upon conversion, the 2023 Convertible Notes could be settled, at our election, in cash, shares of our common stock or a combination of cash and shares of our common stock. Effective January 1, 2022, pursuant to the terms of the Indenture, the principal amount of the 2023 Convertible Notes being converted is required to be paid in cash and only the premium due upon conversion, if any, is permitted to be settled at our election in shares, cash or a combination of shares and cash. The 2023 Convertible Notes are senior unsecured obligations of the Company. The 2023 Convertible Notes are convertible at maturity at a conversion rate of 9.8643 shares of our common stock per $1,000 principal amount of the 2023 Convertible Notes (equivalent to a conversion price of approximately $101.38 per share of common stock). Holders may convert their 2023 Convertible Notes at any time prior to the close of business on the business day immediately preceding May 15, 2023 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2018 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “Measurement Period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of the 2023 Convertible Notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate in effect on each such trading day; or (3) upon the occurrence of specified corporate events. On or after May 15, 2023, until the close of business on the business day immediately preceding the maturity date of August 15, 2023, holders may convert their 2023 Convertible Notes at any time, regardless of the foregoing circumstances. The 2023 Convertible Notes were convertible in each of the quarters ended September 30, 2021 through September 30, 2022. The number of shares issued upon conversion of the 2023 Convertible Notes in each period was immaterial. The circumstances required to allow the holders to convert their 2023 Convertible Notes prior to maturity were met as of September 30, 2022; therefore, holders may convert their notes at any time beginning on October 1, 2022 and ending on December 31, 2022. Based on the Company's stock price on September 30, 2022, the if-converted value of the 2023 Convertible Notes exceeded the principal amount by $200.7 million. We may not redeem the 2023 Convertible Notes prior to the maturity date. If we undergo a fundamental change (as defined in the Indenture), subject to certain conditions, holders may require us to repurchase for cash all or part of their 2023 Convertible Notes in principal amounts of $1,000 or a multiple thereof. The fundamental change repurchase price will be equal to 100% of the principal amount of the 2023 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. In addition, in certain circumstances, we may be required to increase the conversion rate for any 2023 Convertible Notes converted in connection with a make-whole fundamental change (as defined in the Indenture). Prior to the adoption of ASU 2020-06, the Company separated the 2023 Convertible Notes into liability and equity components. The debt discount and debt issuance costs attributable to the liability component were amortized to interest expense over the term of the 2023 Convertible Notes using the effective interest rate method. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective method, which resulted in accounting for the 2023 Convertible Notes as a single liability and the debt discount is no longer amortized into income as interest expense. See Note 2, “New Accounting Standards” for additional information about the adoption of ASU 2020-06. Contractual interest expense for the 2023 Convertible Notes was $1.6 million and $4.7 million for the three and nine months ended September 30, 2022 and 2021, respectively. Amortization of the debt discount on the 2023 Convertible Notes prior to the adoption of ASU 2020-06 was $2.4 million and $7.1 million for the three and nine months ended September 30 2021, respectively. Credit Facility On June 26, 2015, we entered into a credit agreement, which provides for a $550.0 million senior secured bank revolving credit facility (“Original Credit Facility”) maturing on June 26, 2020. In November 2018, we amended and restated the credit agreement to the Original Credit Facility (the "Amended and Restated Credit Facility"), to, among other things, extend the maturity to November 30, 2023 and incurred an additional $1.7 million of debt issuance costs. On February 4, 2022, we entered into the first amendment to the Amended and Restated Credit Facility (the "First Amendment to the Amended and Restated Credit Facility," and together with the Amended and Restated Credit Facility, the “Credit Facility”). At the Company’s option, borrowings under the Credit Facility in United States dollars ("USD"), euro ("EUR") and British pound ("GBP") will bear interest at either the one- or three-month London Interbank Offered Rate ("LIBOR") or, in the case of USD borrowings, an alternative base rate, in each case plus the applicable margin. Due to the cessation by the ICE Benchmark Administration Limited of the publication on a representative basis of EUR LIBOR and GBP LIBOR as of December 31, 2021, EUR LIBOR is no longer available under our Credit Agreement and one-, three- and six-month GBP LIBOR is available under a "synthetic" methodology until December 31, 2022. The Credit Agreement permits the Company and Bank of America, N.A., as administrative agent thereunder, to agree to a new benchmark rate to replace EUR LIBOR and GBP LIBOR, subject to the negative consent of the Required Lenders (as defined therein). Prior to the incurrence of any borrowings under the Credit Facility in EUR or, after December 31, 2022, GBP, we will need to agree to a replacement benchmark rate for each applicable currency in accordance with the terms of the Credit Agreement. The alternative base rate means a fluctuating rate per annum equal to the highest of (1) the rate of interest in effect for such day as the prime rate announced by Bank of America, (2) the federal funds rate plus the sum of 50 basis points, and (3) the one-month USD LIBOR plus 100 basis points. Borrowings under the Credit Facility in Canadian dollars bear interest at an annual rate equal to the Canadian Dealer Offered Rate plus an applicable margin. Borrowings under the Credit Facility in Australian dollars bear interest at an annual rate equal to the Bank Bill Swap Reference Bid Rate plus an applicable margin. The applicable margin will fluctuate between 1.25% per annum and 2.00% per annum, in the case of LIBOR borrowings, or between 0.25% per annum and 1.00% per annum, in the case of base rate borrowings, in each case, based upon the Company’s Consolidated Total Net Leverage Ratio (as defined in the Credit Facility) at such time. The lenders under the Credit Facility have a security interest in substantially all of the assets of the Company and substantially all of its domestic subsidiaries. Under the Credit Facility, we are required to pay a commitment fee rate that fluctuates between 0.20% and 0.35% per annum and a letter of credit fee rate that fluctuates between 1.25% and 2.00% per annum, in each case, based upon the Company’s Consolidated Total Net Leverage Ratio. There were no borrowings outstanding under the Credit Facility as of September 30, 2022 and December 31, 2021. As of September 30, 2022, $0.4 million of the borrowing limit under the Credit Facility was utilized (and, therefore, unavailable) for letters of credit. There were $0.5 million and $0.9 million of unamortized debt issuance costs related to the Credit Facility as of September 30, 2022 and December 31, 2021, respectively. These amounts are included in “Other assets” on our Condensed Consolidated Balance Sheets. Long-Term Debt Maturities Our maturity analysis for our remaining future undiscounted cash flows for the principal portion of our long-term debt assumes that payments will be made based on the current payment schedule and excludes any additional revolving line of credit borrowings or repayments subsequent to September 30, 2022 and prior to the November 30, 2023 maturity date of our Credit Facility. We estimate future undiscounted cash flows for the principal portion of our long-term debt to be $316.2 million in 2023. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases We lease office space and equipment under non-cancelable operating leases. We recognize operating lease expense on a straight-line basis over the lease term, which may include renewal or termination options that are reasonably certain of exercise. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets and are expensed on a straight-line basis. Most leases include one or more options to renew, with renewal terms that can extend the lease term up 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 September 30, 2022 December 31, 2021 Assets Operating lease assets Operating lease assets $ 195,339 $ 215,995 Total lease assets $ 195,339 $ 215,995 Liabilities Current Operating lease liabilities Accounts payable, accrued expenses and other $ 33,340 $ 30,828 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 213,449 236,026 Total lease liabilities $ 246,789 $ 266,854 The table below summarizes total lease costs: Three Months Ended September 30, Nine Months Ended September 30, Lease Cost 2022 2021 2022 2021 Operating lease costs $ 11,874 $ 14,476 $ 36,328 $ 40,965 Short-term lease costs 441 398 1,573 1,361 Variable lease costs 3,456 3,368 9,434 9,579 Sublease income (224) (1,048) (610) (3,143) Total lease cost, net $ 15,547 $ 17,194 $ 46,725 $ 48,762 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 $0.3 million in the remainder of 2022, $0.9 million in 2023, $0.8 million in 2024 and $0.3 million in 2025. There is no future sublease rental income estimated for the years beyond 2025. The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheets: As of 2022 (remaining) $ 11,394 2023 49,710 2024 44,015 2025 36,540 2026 31,820 Thereafter 140,794 Total future lease payments 314,273 Less: imputed interest (67,484) Total $ 246,789 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: Nine Months Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 38,297 $ 45,754 Operating lease assets obtained in exchange for lease liabilities $ 16,644 $ 98,472 Weighted average remaining lease term (years) Operating leases 8.5 8.7 Weighted average discount rate Operating leases 5.5 % 5.4 % |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe 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 are not aware of any asserted or unasserted legal proceedings or claims that we believe would have a material adverse effect on our financial condition or results of our operations. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the nine months ended September 30, 2022, we granted 182,564 restricted share awards, 49,949 restricted stock units and 102,543 performance stock units under the FTI Consulting, Inc. 2017 Omnibus Incentive Compensation Plan, our employee equity compensation plan. 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 nine months ended September 30, 2022, 17,025 shares of restricted stock and no stock options were forfeited prior to the completion of the applicable vesting requirements. Additionally, 12,198 performance stock units were forfeited during the nine months ended September 30, 2022 as the award targets were not achieved. Total share-based compensation expense, net of forfeitures is detailed in the following table: Three Months Ended September 30, Nine Months Ended September 30, Income Statement Classification 2022 2021 2022 2021 Direct cost of revenues $ 3,510 $ 2,441 $ 11,456 $ 10,172 Selling, general and administrative expenses 2,227 2,830 9,450 9,762 Total share-based compensation expense $ 5,737 $ 5,271 $ 20,906 $ 19,934 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
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. On each of July 28, 2020 and December 3, 2020, our Board of Directors authorized an additional $200.0 million, increasing the Repurchase Program to an aggregate authorization of $900.0 million. No time limit has been established for the completion of the Repurchase Program, and the Repurchase Program may be suspended, discontinued or replaced by the Board of Directors at any time without prior notice. As of September 30, 2022, we had $143.5 million available under the Repurchase Program to repurchase additional shares. The following table details our stock repurchases under the Repurchase Program: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Shares of common stock repurchased and retired 128 — 149 422 Average price paid per share $ 159.87 $ — $ 157.48 $ 109.37 Total cost $ 20,430 $ — $ 23,528 $ 46,124 As we repurchase our common shares, we reduce stated capital on our Condensed Consolidated Balance Sheets for the $0.01 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction to additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. Common stock outstanding was 34.4 million shares and 34.3 million shares as of September 30, 2022 and December 31, 2021, 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 | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We manage our business in five reportable segments: Corporate Finance, FLC, Economic Consulting, Technology and Strategic Communications. Our Corporate Finance segment focuses on the strategic, operational, financial, transactional and capital needs of our clients around the world. Our clients include companies, boards of directors, investors, private equity sponsors, lenders, and other financing sources and creditor groups, as well as other parties-in-interest. We deliver a wide range of services centered around three core offerings: business transformation & strategy, transactions and turnaround & restructuring. Our FLC segment provides law firms, companies, government entities, private equity firms and other interested parties with a multidisciplinary and independent range of services in risk and investigations and disputes, including cybersecurity, and a focus on highly regulated industries such as our construction & environmental solutions and health solutions services. These services are supported by our data & analytics solutions, which help our clients analyze large, disparate sets of data related to their business operations and support our clients during regulatory inquiries and commercial disputes. We deliver a wide range of services centered around five core offerings: construction & environmental solutions, data & analytics, disputes, health solutions and risk and investigations. Our Economic Consulting segment, including subsidiary Compass Lexecon LLC, provides law firms, companies, government entities and other interested parties with analyses of complex economic issues for use in international arbitration, legal and regulatory proceedings, and strategic decision making and public policy debates around the world. We deliver a wide range of services centered around three core offerings: antitrust & competition economics, financial economics and international arbitration. Our Technology segment provides companies, law firms, private equity firms and government entities with a comprehensive global portfolio of consulting and services to address legal and regulatory risk, including e-discovery, information governance, privacy and security and corporate legal operations solutions. We deliver a full spectrum of services centered around three core offerings: corporate legal operations, e-discovery services and expertise, and information governance, privacy & security services. Our Strategic Communications segment develops and executes communications strategies to help management teams, boards of directors, law firms, governments and regulators manage change and mitigate risk surrounding transformational and disruptive events, including transactions, investigations, disputes, crises, regulation and legislation. We deliver a wide range of services centered around three core offerings: corporate reputation, financial communications and public affairs. We evaluate the performance of our operating segments based on Adjusted Segment EBITDA, a GAAP financial measure. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We define Total Adjusted Segment EBITDA, which is a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects current core operating performance and provides an indicator of the segment’s ability to generate cash. The table below presents revenues and Adjusted Segment EBITDA for our reportable segments: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues Corporate Finance $ 265,370 $ 250,321 $ 795,766 $ 707,495 FLC 159,948 145,264 478,092 446,831 Economic Consulting 193,183 172,543 523,201 525,122 Technology 84,915 64,657 243,181 222,762 Strategic Communications 72,449 69,443 214,237 197,781 Total revenues $ 775,865 $ 702,228 $ 2,254,477 $ 2,099,991 Adjusted Segment EBITDA Corporate Finance $ 51,532 $ 55,635 $ 160,021 $ 133,248 FLC 18,162 16,620 52,126 64,054 Economic Consulting 32,913 29,917 75,754 87,195 Technology 13,213 7,835 34,940 47,951 Strategic Communications 12,947 15,489 40,133 39,388 Total Adjusted Segment EBITDA $ 128,767 $ 125,496 $ 362,974 $ 371,836 The table below reconciles net income to Total Adjusted Segment EBITDA: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income $ 77,267 $ 69,480 $ 188,016 $ 196,758 Add back: Income tax provision 15,836 19,155 46,156 54,394 Interest income and other (7,771) (5,175) (10,418) (5,297) Interest expense 2,378 5,073 7,468 15,164 Unallocated corporate expenses 30,470 25,974 99,524 82,041 Segment depreciation expense 8,273 8,130 24,909 23,394 Amortization of intangible assets 2,314 2,859 7,319 8,512 Remeasurement of acquisition-related contingent consideration — — — (3,130) Total Adjusted Segment EBITDA $ 128,767 $ 125,496 $ 362,974 $ 371,836 |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021 filed with the SEC. |
Recently Adopted Accounting Standards and Accounting Standards Not Yet Adopted | In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06 ("ASU 2020-06"), Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain events. On January 1, 2022, we adopted ASU 2020-06 using the modified retrospective method and recorded a cumulative-effect adjustment of approximately $22.1 million to the beginning balance of retained earnings at the date of adoption and a $16.4 million net increase to "Long-term debt, net" on the Condensed Consolidated Balance Sheets. As permitted by the guidance, prior comparative periods were not adjusted under this method. Pursuant to ASU 2020-06, we are no longer permitted to separately account for the liability and equity components of convertible debt instruments. As such, the carrying amount of our 2.0% convertible senior notes due 2023 ("2023 Convertible Notes") is recognized as a liability as of September 30, 2022 on the Condensed Consolidated Balance Sheets. The ASU 2020-06 adoption also resulted in the derecognition of the embedded conversion option, net of tax effects, of approximately $34.1 million, which is included in “Additional paid-in capital,” as well as the derecognition of the related deferred tax liabilities of approximately $4.3 million on the Condensed Consolidated Balance Sheets. The net effect of the adoption in the current and future periods as compared to prior periods is to reduce non-cash interest expense, or increase net income, as there is no longer a discount from the separation of the conversion feature within equity. The discount from recognition of debt issuance costs will be amortized over the effective life of the 2023 Convertible Notes using the effective interest method. ASU 2020-06 also no longer allows the use of the treasury stock method for convertible instruments for purposes of calculating diluted earnings per share and instead requires application of the if-converted method. Under that method, diluted earnings per share will generally be calculated assuming that all of the convertible debt instruments were converted solely into shares of common stock at the beginning of the reporting period unless the result would be anti-dilutive. Effective January 1, 2022, pursuant to the terms of the indenture, dated as of August 20, 2018, as amended by the first supplemental indenture, dated as of January 1, 2022 (the "First Supplemental Indenture"), between us and U.S. Bank National Association, as trustee (as so amended, the "Indenture"), the principal amount of the 2023 Convertible Notes being converted is required to be paid in cash and only the premium due upon conversion, if any, is permitted to be settled in shares, cash or a combination of shares and cash. Consequently, the if-converted method produces a similar result as the treasury stock method, which was used prior to the adoption of ASU 2020-06 for the 2023 Convertible Notes. Accounting Standards Not Yet Adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance , which requires entities to provide disclosures on significant government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for annual periods beginning after December 15, 2021 and impacts only annual financial statement footnote disclosures. 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) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator — basic and diluted Net income $ 77,267 $ 69,480 $ 188,016 $ 196,758 Denominator Weighted average number of common shares outstanding — basic 33,812 33,495 33,741 33,478 Effect of dilutive share-based awards 545 662 607 697 Effect of dilutive stock options 322 363 330 369 Effect of dilutive convertible notes 1,239 842 1,147 721 Weighted average number of common shares outstanding — diluted 35,918 35,362 35,825 35,265 Earnings per common share — basic $ 2.29 $ 2.07 $ 5.57 $ 5.88 Earnings per common share — diluted $ 2.15 $ 1.96 $ 5.25 $ 5.58 Antidilutive stock options and share-based awards — 2 10 5 |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Expected Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Allowance for Doubtful Accounts and Unbilled Services [Abstract] | |
Schedule of Accounts Receivable | The following table summarizes the components of "Accounts receivable, net" as presented on the Condensed Consolidated Balance Sheets: September 30, December 31, Accounts receivable: Billed receivables $ 636,288 $ 542,056 Unbilled receivables 352,711 248,681 Allowance for expected credit losses (41,006) (36,617) Accounts receivable, net $ 947,993 $ 754,120 |
Schedule of Accounts Receivable, Writeoff | The following table summarizes the total provision for expected credit losses and write-offs: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Provision for expected credit losses (1) $ 4,348 $ 6,580 $ 13,101 $ 14,816 Write-offs $ 3,877 $ 5,746 $ 9,917 $ 15,464 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 (1) Forensic and Litigation Consulting (1) Economic Consulting (1) Technology (1) Strategic Communications (2) Total Balance at December 31, 2021 $ 501,046 $ 237,929 $ 268,858 $ 96,811 $ 128,147 $ 1,232,791 Acquisitions (3) 11,332 — — — — 11,332 Foreign currency translation adjustment and other (2,026) (5,870) (1,612) (61) (22,013) (31,582) Balance at September 30, 2022 $ 510,352 $ 232,059 $ 267,246 $ 96,750 $ 106,134 $ 1,212,541 (1) There were no accumulated impairment losses for the Corporate Finance & Restructuring ("Corporate Finance"), Forensic and Litigation Consulting ("FLC"), Economic Consulting or Technology segments as of September 30, 2022 and December 31, 2021. (2) Amounts for our Strategic Communications segment include gross carrying values of $300.3 million and $322.3 million as of September 30, 2022 and December 31, 2021, respectively, and accumulated impairment losses of $194.1 million as of September 30, 2022 and December 31, 2021. (3) During the nine months ended September 30, 2022, we acquired a business that was assigned to the Corporate Finance segment. We recorded $11.3 million in goodwill based on a purchase price allocation as a result of the acquisition. We have included the results of the acquired business’s operations in the Corporate Finance segment since its acquisition date. |
Schedule of Other Intangible Assets Amortized Intangibles | Intangible assets were as follows: September 30, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets Customer relationships (1) $ 79,347 $ 63,546 $ 15,801 $ 83,101 $ 63,124 $ 19,977 Trademarks (1) 8,886 4,648 4,238 10,965 4,732 6,233 Acquired software and other (1) 967 433 534 3,114 2,434 680 89,200 68,627 20,573 97,180 70,290 26,890 Non-amortizing intangible assets Trademarks 5,100 — 5,100 5,100 — 5,100 Total $ 94,300 $ 68,627 $ 25,673 $ 102,280 $ 70,290 $ 31,990 (1) During the nine months ended September 30, 2022, we acquired a business, and its related intangible assets were assigned to the Corporate Finance segment. |
Schedule of Other Intangible Assets Unamortized Intangibles | Intangible assets were as follows: September 30, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets Customer relationships (1) $ 79,347 $ 63,546 $ 15,801 $ 83,101 $ 63,124 $ 19,977 Trademarks (1) 8,886 4,648 4,238 10,965 4,732 6,233 Acquired software and other (1) 967 433 534 3,114 2,434 680 89,200 68,627 20,573 97,180 70,290 26,890 Non-amortizing intangible assets Trademarks 5,100 — 5,100 5,100 — 5,100 Total $ 94,300 $ 68,627 $ 25,673 $ 102,280 $ 70,290 $ 31,990 (1) During the nine months ended September 30, 2022, we acquired a business, and its related intangible assets were assigned to the Corporate Finance segment. |
Schedule of Future Amortization Expense Intangible Assets | We estimate our future amortization expense for our intangible assets with finite lives to be as follows: Year As of September 30, 2022 (1) 2022 (remaining) $ 2,277 2023 5,844 2024 3,692 2025 3,047 2026 1,988 Thereafter 3,725 $ 20,573 (1) Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, impairments, changes in useful lives, or other relevant factors or changes. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying and Estimated Fair Value of Other Financial Instruments | The table below presents the carrying amounts and estimated fair values of our financial instruments by hierarchy level as of September 30, 2022 and December 31, 2021: September 30, 2022 Hierarchy Level Carrying Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration (1)(2) $ 12,847 $ — $ — $ 12,847 2023 Convertible Notes (3) 314,756 — 519,300 — Total $ 327,603 $ — $ 519,300 $ 12,847 December 31, 2021 Hierarchy Level Carrying Level 1 Level 2 Level 3 Liabilities Acquisition-related contingent consideration (1) $ 15,110 $ — $ — $ 15,110 2023 Convertible Notes (3) 297,158 — 466,619 — Total $ 312,268 $ — $ 466,619 $ 15,110 (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) During the nine months ended September 30, 2022, we acquired a business that was assigned to our Corporate Finance segment and recorded an acquisition-related contingent consideration liability. (3) The carrying value as of September 30, 2022 includes unamortized deferred debt issuance costs. The carrying value as of December 31, 2021 includes unamortized deferred debt issuance costs and debt discount. |
Schedule of Acquisition-Related Contingent Consideration | The change in our liability for acquisition-related contingent consideration for our Level 3 financial instruments is as follows: Contingent Consideration Balance at December 31, 2021 $ 15,110 Additions 5,370 Accretion expense (1) (979) Payments (4,430) Foreign currency translation adjustment (2) (115) Balance at March 31, 2022 $ 14,956 Accretion expense (1) 1,112 Payments (2,240) Foreign currency translation adjustment (2) (465) Balance at June 30, 2022 $ 13,363 Accretion expense (1) 730 Payments (1,000) Foreign currency translation adjustment and other (2) (246) Balance at September 30, 2022 $ 12,847 Contingent Consideration Balance at December 31, 2020 $ 20,118 Accretion expense (1) 1,289 Payments (1,000) Foreign currency translation adjustment (2) (612) Balance at March 31, 2021 $ 19,795 Additions 1,093 Accretion expense (1) 676 Payments (4,122) Foreign currency translation adjustment (2) 264 Remeasurement gain (3) (3,095) Balance at June 30, 2021 $ 14,611 Accretion expense (1) 116 Foreign currency translation adjustment (2) (159) Balance at September 30, 2021 $ 14,568 (1) Accretion expense is included in SG&A expenses on the Condensed Consolidated Statements of Comprehensive Income. (2) Foreign currency translation adjustments are included in "Other comprehensive loss, net of tax" on the Condensed Consolidated Statements of Comprehensive Income. (3) Remeasurement gain or loss resulting from a change in the fair value of an acquisition's contingent consideration liability is recorded in SG&A expenses on the Condensed Consolidated Statements of Comprehensive Income. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Components of Debt Obligations | The table below presents the components of the Company’s debt: September 30, 2022 December 31, 2021 2023 Convertible Notes $ 316,222 $ 316,245 Total debt 316,222 316,245 Less: deferred debt discount (1) — (16,724) Less: deferred debt issuance costs (1,466) (2,363) Long-term debt, net (1)(2) $ 314,756 $ 297,158 Additional paid-in capital $ — $ 35,304 Discount attribution to equity — (1,175) Equity component, net (1) $ — $ 34,129 (1) Pursuant to the adoption of ASU 2020-06, we derecognized the conversion option of $34.1 million, net of tax, previously attributable to the equity component of the 2023 Convertible Notes. Similarly, the related debt discount is no longer amortized into income as interest expense over the life of the instrument; therefore, we recorded a $16.4 million increase to "Long-term debt, net" on the Condensed Consolidated Balance Sheet as of September 30, 2022. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 December 31, 2021 Assets Operating lease assets Operating lease assets $ 195,339 $ 215,995 Total lease assets $ 195,339 $ 215,995 Liabilities Current Operating lease liabilities Accounts payable, accrued expenses and other $ 33,340 $ 30,828 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 213,449 236,026 Total lease liabilities $ 246,789 $ 266,854 |
Schedule of Lease Cost | The table below summarizes total lease costs: Three Months Ended September 30, Nine Months Ended September 30, Lease Cost 2022 2021 2022 2021 Operating lease costs $ 11,874 $ 14,476 $ 36,328 $ 40,965 Short-term lease costs 441 398 1,573 1,361 Variable lease costs 3,456 3,368 9,434 9,579 Sublease income (224) (1,048) (610) (3,143) Total lease cost, net $ 15,547 $ 17,194 $ 46,725 $ 48,762 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: Nine Months Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 38,297 $ 45,754 Operating lease assets obtained in exchange for lease liabilities $ 16,644 $ 98,472 Weighted average remaining lease term (years) Operating leases 8.5 8.7 Weighted average discount rate Operating leases 5.5 % 5.4 % |
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 Sheets: As of 2022 (remaining) $ 11,394 2023 49,710 2024 44,015 2025 36,540 2026 31,820 Thereafter 140,794 Total future lease payments 314,273 Less: imputed interest (67,484) Total $ 246,789 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | Total share-based compensation expense, net of forfeitures is detailed in the following table: Three Months Ended September 30, Nine Months Ended September 30, Income Statement Classification 2022 2021 2022 2021 Direct cost of revenues $ 3,510 $ 2,441 $ 11,456 $ 10,172 Selling, general and administrative expenses 2,227 2,830 9,450 9,762 Total share-based compensation expense $ 5,737 $ 5,271 $ 20,906 $ 19,934 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | The following table details our stock repurchases under the Repurchase Program: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Shares of common stock repurchased and retired 128 — 149 422 Average price paid per share $ 159.87 $ — $ 157.48 $ 109.37 Total cost $ 20,430 $ — $ 23,528 $ 46,124 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues Corporate Finance $ 265,370 $ 250,321 $ 795,766 $ 707,495 FLC 159,948 145,264 478,092 446,831 Economic Consulting 193,183 172,543 523,201 525,122 Technology 84,915 64,657 243,181 222,762 Strategic Communications 72,449 69,443 214,237 197,781 Total revenues $ 775,865 $ 702,228 $ 2,254,477 $ 2,099,991 Adjusted Segment EBITDA Corporate Finance $ 51,532 $ 55,635 $ 160,021 $ 133,248 FLC 18,162 16,620 52,126 64,054 Economic Consulting 32,913 29,917 75,754 87,195 Technology 13,213 7,835 34,940 47,951 Strategic Communications 12,947 15,489 40,133 39,388 Total Adjusted Segment EBITDA $ 128,767 $ 125,496 $ 362,974 $ 371,836 |
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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income $ 77,267 $ 69,480 $ 188,016 $ 196,758 Add back: Income tax provision 15,836 19,155 46,156 54,394 Interest income and other (7,771) (5,175) (10,418) (5,297) Interest expense 2,378 5,073 7,468 15,164 Unallocated corporate expenses 30,470 25,974 99,524 82,041 Segment depreciation expense 8,273 8,130 24,909 23,394 Amortization of intangible assets 2,314 2,859 7,319 8,512 Remeasurement of acquisition-related contingent consideration — — — (3,130) Total Adjusted Segment EBITDA $ 128,767 $ 125,496 $ 362,974 $ 371,836 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 1,868,424 | $ 1,698,156 | |
Long-term debt, net | 314,756 | 297,158 | |
Additional Paid in Capital, Common Stock | $ 0 | $ 13,662 | |
Senior Notes | 2023 Convertible Notes | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Interest rate (as a percent) | 2% | ||
Accounting Standards Update 2020-06 | Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 22,100 | ||
Additional Paid in Capital, Common Stock | 34,100 | ||
Derecognition of deferred tax liabilities | $ 4,300 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Common Share [Line Items] | ||||
Conversion price (in dollars per share) | $ 101.38 | $ 101.38 | $ 101.38 | $ 101.38 |
Numerator — basic and diluted | ||||
Net income | $ 77,267 | $ 69,480 | $ 188,016 | $ 196,758 |
Net income | $ 77,267 | $ 69,480 | $ 188,016 | $ 196,758 |
Denominator | ||||
Weighted average number of common shares outstanding — basic (in shares) | 33,812 | 33,495 | 33,741 | 33,478 |
Effect of dilutive share-based awards (in shares) | 545 | 662 | 607 | 697 |
Effect of dilutive stock options (in shares) | 322 | 363 | 330 | 369 |
Effect of dilutive convertible notes (in shares) | 1,239 | 842 | 1,147 | 721 |
Weighted average number of common shares outstanding — diluted (in shares) | 35,918 | 35,362 | 35,825 | 35,265 |
Earnings per common share — basic (in dollars per share) | $ 2.29 | $ 2.07 | $ 5.57 | $ 5.88 |
Earnings per common share — diluted (in dollars per share) | $ 2.15 | $ 1.96 | $ 5.25 | $ 5.58 |
Stock Options And Share-Based Awards | ||||
Denominator | ||||
Antidilutive stock options and share-based awards (in shares) | 0 | 2 | 10 | 5 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Performance obligations satisfied or partially satisfied in previous periods | $ 0 | $ 11.5 | $ 12.5 | $ 23 | |
Contract asset | 0 | 0 | $ 3.8 | ||
Contract liability | 1 | 1 | 0 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||||
Disaggregation of Revenue [Line Items] | |||||
Unfulfilled performance obligations | $ 3.7 | ||||
Performance obligation expected duration | 24 months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |||||
Disaggregation of Revenue [Line Items] | |||||
Unfulfilled performance obligations | $ 2.5 | $ 2.5 | |||
Performance obligation expected duration | 24 months | 24 months |
Accounts Receivable and Allow_3
Accounts Receivable and Allowance for Expected Credit Losses - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts receivable: | ||
Billed receivables | $ 636,288 | $ 542,056 |
Unbilled receivables | 352,711 | 248,681 |
Allowance for expected credit losses | (41,006) | (36,617) |
Accounts receivable, net | $ 947,993 | $ 754,120 |
Accounts Receivable and Allow_4
Accounts Receivable and Allowance for Expected Credit Losses - Writeoff (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Allowance for Doubtful Accounts and Unbilled Services [Abstract] | ||||
Provision for expected credit losses | $ 4,348 | $ 6,580 | $ 13,101 | $ 14,816 |
Write-offs | $ 3,877 | $ 5,746 | $ 9,917 | $ 15,464 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill beginning of period | $ 1,232,791,000 | |
Acquisitions | 11,332,000 | |
Foreign currency translation adjustment and other | (31,582,000) | |
Goodwill end of period | 1,212,541,000 | |
Corporate Finance & Restructuring | ||
Goodwill [Roll Forward] | ||
Goodwill beginning of period | 501,046,000 | |
Acquisitions | 11,332,000 | |
Foreign currency translation adjustment and other | (2,026,000) | |
Goodwill end of period | 510,352,000 | |
Accumulated impairment loss | 0 | $ 0 |
Forensic and Litigation Consulting | ||
Goodwill [Roll Forward] | ||
Goodwill beginning of period | 237,929,000 | |
Acquisitions | 0 | |
Foreign currency translation adjustment and other | (5,870,000) | |
Goodwill end of period | 232,059,000 | |
Accumulated impairment loss | 0 | 0 |
Economic Consulting | ||
Goodwill [Roll Forward] | ||
Goodwill beginning of period | 268,858,000 | |
Acquisitions | 0 | |
Foreign currency translation adjustment and other | (1,612,000) | |
Goodwill end of period | 267,246,000 | |
Accumulated impairment loss | 0 | 0 |
Technology | ||
Goodwill [Roll Forward] | ||
Goodwill beginning of period | 96,811,000 | |
Acquisitions | 0 | |
Foreign currency translation adjustment and other | (61,000) | |
Goodwill end of period | 96,750,000 | |
Accumulated impairment loss | 0 | 0 |
Strategic Communications | ||
Goodwill [Roll Forward] | ||
Goodwill beginning of period | 128,147,000 | |
Acquisitions | 0 | |
Foreign currency translation adjustment and other | (22,013,000) | |
Goodwill end of period | 106,134,000 | |
Accumulated impairment loss | 194,100,000 | 194,100,000 |
Goodwill | $ 300,300,000 | $ 322,300,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 89,200 | $ 97,180 |
Accumulated Amortization | 68,627 | 70,290 |
Net Carrying Amount | 20,573 | 26,890 |
Intangible assets, gross carrying amount | 94,300 | 102,280 |
Intangible assets, Net Carrying Amount | 25,673 | 31,990 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, non-amortizing intangible assets | 5,100 | 5,100 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 79,347 | 83,101 |
Accumulated Amortization | 63,546 | 63,124 |
Net Carrying Amount | 15,801 | 19,977 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,886 | 10,965 |
Accumulated Amortization | 4,648 | 4,732 |
Net Carrying Amount | 4,238 | 6,233 |
Acquired software and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 967 | 3,114 |
Accumulated Amortization | 433 | 2,434 |
Net Carrying Amount | $ 534 | $ 680 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of other intangible assets | $ 2,315 | $ 2,860 | $ 7,320 | $ 8,515 |
Income tax benefit related to the License Agreement, net | $ 8,300 | $ 8,300 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (remaining) | $ 2,277 | |
2023 | 5,844 | |
2024 | 3,692 | |
2025 | 3,047 | |
2026 | 1,988 | |
Thereafter | 3,725 | |
Net Carrying Amount | $ 20,573 | $ 26,890 |
Financial Instruments - Carryin
Financial Instruments - Carrying And Estimated Fair Value Of Other Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | $ 12,847 | $ 15,110 |
2023 Convertible Notes | 314,756 | 297,158 |
Total | 327,603 | 312,268 |
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 |
2023 Convertible Notes | 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 |
2023 Convertible Notes | 519,300 | 466,619 |
Total | 519,300 | 466,619 |
Level 3 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration, including current portion | 12,847 | 15,110 |
2023 Convertible Notes | 0 | 0 |
Total | $ 12,847 | $ 15,110 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Beginning balance | $ 13,363 | $ 14,956 | $ 15,110 | $ 14,611 | $ 19,795 | $ 20,118 |
Additions | 5,370 | 1,093 | ||||
Accretion expense | 730 | 1,112 | (979) | 116 | 676 | 1,289 |
Payments | (1,000) | (2,240) | (4,430) | (4,122) | (1,000) | |
Foreign currency translation adjustment and other | (246) | (465) | (115) | (159) | 264 | (612) |
Remeasurement gain | (3,095) | |||||
Ending balance | $ 12,847 | $ 13,363 | $ 14,956 | $ 14,568 | $ 14,611 | $ 19,795 |
Debt - Summary of Components of
Debt - Summary of Components of Debt Obligations (Details) - USD ($) | Sep. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Jun. 26, 2015 |
Debt Instrument [Line Items] | ||||
Total debt | $ 316,222,000 | $ 316,245,000 | ||
Less: deferred debt discount | 0 | (16,724,000) | ||
Less: deferred debt issuance costs | (1,466,000) | (2,363,000) | ||
Long-term debt, net | 314,756,000 | 297,158,000 | ||
Additional paid-in capital | 0 | 35,304,000 | ||
Discount attribution to equity | 0 | (1,175,000) | ||
Equity component, net | 34,129,000 | |||
Additional paid-in capital | 0 | 13,662,000 | ||
Current portion of long-term debt, net | 0 | 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | ||||
Debt Instrument [Line Items] | ||||
Additional paid-in capital | $ 34,100,000 | |||
Current portion of long-term debt, net | $ 16,400,000 | |||
2023 Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Total debt | 316,222,000 | 316,245,000 | ||
Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Less: deferred debt issuance costs | $ (500,000) | $ (900,000) | ||
Maximum borrowing capacity | $ 550,000,000 |
Debt - Additional Information (
Debt - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 20, 2018 USD ($) trading_day business_day $ / shares | Nov. 30, 2018 USD ($) | Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2021 USD ($) $ / shares | Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2021 USD ($) $ / shares | Jan. 01, 2022 | Dec. 31, 2021 USD ($) | Jun. 26, 2015 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Conversion price (in dollars per share) | $ / shares | $ 101.38 | $ 101.38 | $ 101.38 | $ 101.38 | |||||
Amortization of debt discount | $ 1,588,000 | $ 8,551,000 | |||||||
Unamortized debt issuance costs | $ 1,466,000 | 1,466,000 | $ 2,363,000 | ||||||
Aggregate principal amount | 316,222,000 | 316,222,000 | 316,245,000 | ||||||
Federal Funds | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility basis point (as a percent) | 0.50% | ||||||||
London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility basis point (as a percent) | 1% | ||||||||
2023 Convertible Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Exceeded principal amount | 200,700,000 | 200,700,000 | |||||||
Fundamental change repurchase price percent (as a percent) | 100% | ||||||||
Aggregate principal amount | 316,222,000 | 316,222,000 | 316,245,000 | ||||||
2023 Convertible Notes | Convertible Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 316,300,000 | ||||||||
Interest rate (as a percent) | 2% | ||||||||
Conversion price (in dollars per share) | $ / shares | $ 101.38 | ||||||||
Interest expense | 1,600,000 | $ 4,700,000 | 1,600,000 | 4,700,000 | |||||
Amortization of debt discount | $ 2,400,000 | $ 7,100,000 | |||||||
2023 Convertible Notes | Convertible Debt | Debt Instrument, Redemption, Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
Threshold trading days | trading_day | 20 | ||||||||
Consecutive trading days | trading_day | 30 | ||||||||
Redemption price percentage | 130% | ||||||||
2023 Convertible Notes | Convertible Debt | Debt Instrument, Redemption, Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Consecutive trading days | trading_day | 5 | ||||||||
Redemption price percentage | 98% | ||||||||
Debt instrument business days | business_day | 5 | ||||||||
2023 Convertible Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate (as a percent) | 2% | ||||||||
Debt conversion ratio (in shares) | 0.0098643 | ||||||||
Convertible Note Due 2023, Par Value | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 1,000 | ||||||||
Credit Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 550,000,000 | ||||||||
Debt issuance costs | $ 1,700,000 | ||||||||
Borrowings outstanding | 0 | 0 | 0 | ||||||
Borrowing limit used | 400,000 | 400,000 | |||||||
Unamortized debt issuance costs | $ 500,000 | $ 500,000 | $ 900,000 | ||||||
Credit Facility | Line of Credit | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee (as a percent) | 0.20% | ||||||||
Fronting fees (as a percent) | 1.25% | ||||||||
Credit Facility | Line of Credit | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee (as a percent) | 0.35% | ||||||||
Fronting fees (as a percent) | 2% | ||||||||
Credit Facility | Line of Credit | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread (as a percent) | 1.25% | ||||||||
Credit Facility | Line of Credit | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread (as a percent) | 2% | ||||||||
Credit Facility | Line of Credit | Base Rate | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread (as a percent) | 0.25% | ||||||||
Credit Facility | Line of Credit | Base Rate | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread (as a percent) | 1% |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) lease_option | |
Lessee, Lease, Description [Line Items] | |
Number of renewal options | lease_option | 1 |
Sublease rental income Remainder of 2022 | $ 0.3 |
Sublease rental income 2023 | 0.9 |
Sublease rental income 2024 | 0.8 |
Sublease rental income 2025 | 0.3 |
Future sublease rental income | $ 0 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 7 years |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease assets | $ 195,339 | $ 215,995 |
Current operating lease liabilities | 33,340 | 30,828 |
Noncurrent operating lease liabilities | 213,449 | 236,026 |
Total lease liabilities | $ 246,789 | $ 266,854 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lease Cost | ||||
Operating lease costs | $ 11,874 | $ 14,476 | $ 36,328 | $ 40,965 |
Short-term lease costs | 441 | 398 | 1,573 | 1,361 |
Variable lease costs | 3,456 | 3,368 | 9,434 | 9,579 |
Sublease income | (224) | (1,048) | (610) | (3,143) |
Total lease cost, net | $ 15,547 | $ 17,194 | $ 46,725 | $ 48,762 |
Leases - Maturity Analysis (Det
Leases - Maturity Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 (remaining) | $ 11,394 | |
2023 | 49,710 | |
2024 | 44,015 | |
2025 | 36,540 | |
2026 | 31,820 | |
Thereafter | 140,794 | |
Total future lease payments | 314,273 | |
Less: imputed interest | (67,484) | |
Total lease liabilities | $ 246,789 | $ 266,854 |
Leases - Cash Paid For Operatin
Leases - Cash Paid For Operating Leases and Noncash Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 38,297 | $ 45,754 |
Operating lease assets obtained in exchange for lease liabilities | $ 16,644 | $ 98,472 |
Weighted average remaining lease term (years) | 8 years 6 months | 8 years 8 months 12 days |
Weighted average discount rate (in percent) | 5.50% | 5.40% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option forfeited (in shares) | 0 |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based awards granted (in shares) | 182,564 |
Restricted stock forfeited (in shares) | 17,025 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based awards granted (in shares) | 49,949 |
Performance-based Restricted Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based awards granted (in shares) | 102,543 |
Award vesting rights, percentage | 150% |
Forfeited in period (in shares) | 12,198 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 5,737 | $ 5,271 | $ 20,906 | $ 19,934 |
Direct cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 3,510 | 2,441 | 11,456 | 10,172 |
Selling, general and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 2,227 | $ 2,830 | $ 9,450 | $ 9,762 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 03, 2020 | Jul. 28, 2020 | Feb. 20, 2020 | Feb. 21, 2019 | Dec. 01, 2017 | May 18, 2017 | Jun. 02, 2016 |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||
Common stock, shares outstanding (in shares) | 34,422 | 34,333 | |||||||
2016 Stock Repurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase program authorized amount | $ 900,000,000 | $ 100,000,000 | |||||||
Stock repurchase program additional amount authorized | $ 200,000,000 | $ 200,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||
Available amount under repurchase program | $ 143,500,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stockholders Equity [Line Items] | ||||||
Total cost | $ 20,432 | $ 3,098 | $ 46,133 | |||
2016 Stock Repurchase Program | ||||||
Stockholders Equity [Line Items] | ||||||
Shares of common stock repurchased and retired (in shares) | 128 | 0 | 149 | 422 | ||
Average price paid per share (in dollars per share) | $ 159.87 | $ 0 | $ 157.48 | $ 109.37 | ||
Total cost | $ 20,430 | $ 0 | $ 23,528 | $ 46,124 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 offering segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 5 |
Corporate Finance | |
Segment Reporting Information [Line Items] | |
Number of core offerings | 3 |
FLC | |
Segment Reporting Information [Line Items] | |
Number of core offerings | 5 |
Economic Consulting | |
Segment Reporting Information [Line Items] | |
Number of core offerings | 3 |
Technology | |
Segment Reporting Information [Line Items] | |
Number of core offerings | 3 |
Strategic Communications | |
Segment Reporting Information [Line Items] | |
Number of core offerings | 3 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 775,865 | $ 702,228 | $ 2,254,477 | $ 2,099,991 |
Adjusted Segment EBITDA | 128,767 | 125,496 | 362,974 | 371,836 |
Corporate Finance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 265,370 | 250,321 | 795,766 | 707,495 |
Adjusted Segment EBITDA | 51,532 | 55,635 | 160,021 | 133,248 |
FLC | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 159,948 | 145,264 | 478,092 | 446,831 |
Adjusted Segment EBITDA | 18,162 | 16,620 | 52,126 | 64,054 |
Economic Consulting | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 193,183 | 172,543 | 523,201 | 525,122 |
Adjusted Segment EBITDA | 32,913 | 29,917 | 75,754 | 87,195 |
Technology | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 84,915 | 64,657 | 243,181 | 222,762 |
Adjusted Segment EBITDA | 13,213 | 7,835 | 34,940 | 47,951 |
Strategic Communications | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 72,449 | 69,443 | 214,237 | 197,781 |
Adjusted Segment EBITDA | $ 12,947 | $ 15,489 | $ 40,133 | $ 39,388 |
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 | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||||
Net income | $ 77,267 | $ 51,428 | $ 59,321 | $ 69,480 | $ 62,782 | $ 64,496 | $ 188,016 | $ 196,758 |
Income tax provision | 15,836 | 19,155 | 46,156 | 54,394 | ||||
Interest income and other | (7,771) | (5,175) | (10,418) | (5,297) | ||||
Interest expense | 2,378 | 5,073 | 7,468 | 15,164 | ||||
Total Adjusted Segment EBITDA | 128,767 | 125,496 | 362,974 | 371,836 | ||||
Segment Reconciling Items | ||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||||
Net income | 77,267 | 69,480 | 188,016 | 196,758 | ||||
Income tax provision | 15,836 | 19,155 | 46,156 | 54,394 | ||||
Interest income and other | (7,771) | (5,175) | (10,418) | (5,297) | ||||
Interest expense | 2,378 | 5,073 | 7,468 | 15,164 | ||||
Unallocated corporate expenses | 30,470 | 25,974 | 99,524 | 82,041 | ||||
Segment depreciation expense | 8,273 | 8,130 | 24,909 | 23,394 | ||||
Amortization of intangible assets | 2,314 | 2,859 | 7,319 | 8,512 | ||||
Remeasurement of acquisition-related contingent consideration | 0 | 0 | 0 | (3,130) | ||||
Total Adjusted Segment EBITDA | $ 128,767 | $ 125,496 | $ 362,974 | $ 371,836 |