4. Special Charges

During the year ended December 31, 2013, we recorded special charges totaling $38.4 million, of which $14.1 million was non-cash. The charges reflect certain executive leadership transition costs and costs related to actions we took to realign our workforce to address current business demands impacting our Corporate Finance/Restructuring and Forensic and Litigation Consulting segments, and to reduce certain corporate overhead within our Europe, Middle East and Africa (“EMEA”) region. The special charges consisted of:

•

$23.7 million of contractual post-employment severance and transition services, equity award and retention bonus expense acceleration primarily related to the transition of the Company’s Executive Chairman and the Company’s President and Chief Executive Officer. In addition, we incurred $3.9 million of accelerated expense related to future payments required to be made under a contractual transition service agreement with a Corporate Finance/Restructuring segment senior client facing professional. $10.9 million of these charges are non-cash;

•

$10.2 million of severance costs and other contractual employee related costs, including loan forgiveness and accelerated recognition of compensation cost of share-based awards, associated with the reduction in workforce of 45 employees. $3.2 million of these charges are non-cash; and

•

$0.6 million of costs to consolidate leased office space within one office location and to adjust prior year special charges for changes to sublease terms and employee termination costs.

During the year ended December 31, 2012, we recorded special charges totaling $29.6 million, of which $5.0 million was non-cash. The charges reflect actions we took to realign our workforce to address current business demands and global macro-economic conditions impacting our Forensic and Litigation Consulting, Strategic Communications and Technology segments, to address certain targeted practices within our Corporate Finance/Restructuring and Economic Consulting segments, and to reduce excess real estate capacity. These actions included the termination of 116 employees, the consolidation of leased office space within nine office locations and certain other actions.

During the year ended December 31, 2011, we recorded special charges of $15.2 million, of which $4.8 million was non-cash. The charges reflect actions we took to reduce overhead in connection with the realignment of certain senior management on a global basis and to align our workforce with expected market trends, primarily in our Corporate Finance/Restructuring segment.

The following table details the special charges by segment:


	For the years ended December 31,
	2013		2012		2011
Corporate Finance/Restructuring	$	10,274	$	11,332	$	9,440
Forensic and Litigation Consulting		2,111		8,276		839
Economic Consulting		11		991		2,093
Technology		16		3,114		—
Strategic Communications		66		4,712		—

		12,478		28,425		12,372
Unallocated Corporate		25,936		1,132		2,840

Total	$	38,414	$	29,557	$	15,212

The total cash outflow associated with the 2012 and 2013 special charges is expected to be $48.5 million, of which $22.4 million has been paid as of December 31, 2013. $9.5 million is expected to be paid in 2014, $5.0 million is expected to be paid in 2015, $3.0 million is expected to be paid in 2016, and the remaining balance of $8.6 million will be paid from 2017 to 2025. The total cash outflow associated with the 2011 special charges has been paid as of December 31, 2013. Liabilities for the current and noncurrent portions of the amounts have been included in “Accounts payable, accrued expenses and other” and “Other liabilities,” respectively, on the Consolidated Balance Sheets. Activity related to the liabilities for these costs for the years ended December 31, 2013 and 2012 is as follows:


	Employee Termination Costs			Lease Termination Costs			Total
Balance December 31, 2011	$	4,758		$	—		$	4,758
Additions		14,276			10,274			24,550
Payments		(11,803	)		(1,757	)		(13,560	)
Foreign currency translation adjustment and other		(535	)		—			(535	)

Balance December 31, 2012	$	6,696		$	8,517		$	15,213

Additions		23,669			690			24,359
Payments		(9,995	)		(3,111	)		(13,106	)
Foreign currency translation adjustment and other		(405	)		—			(405	)

Balance December 31, 2013	$	19,965		$	6,096		$	26,061