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Special Charges
12 Months Ended
Dec. 31, 2015
Text Block [Abstract]  
Special Charges

4. Special Charges

There were no special charges recorded during the year ended December 31, 2015.

During the year ended December 31, 2014, we recorded special charges as a separate line within operating income in our Consolidated Statements of Income (Loss) totaling $16.3 million, of which $0.7 million was non-cash. The charges reflect the contractual post-employment payments and equity award expense acceleration, net of forfeitures of unvested equity and liability awards and annual bonus payments of former executive officers, the termination of the Company’s corporate airplane lease, the closure of the Company’s former West Palm Beach executive office and related lease termination, and updated forecasts of expected sublease income for corporate and segment offices previously vacated.     

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 EMEA region.

The following table details the special charges by segment:

 

 

 

For the years ended December 31,

 

Special Charges by Segment

 

2014

 

 

2013

 

Corporate Finance & Restructuring

 

$

84

 

 

$

10,274

 

Forensic and Litigation Consulting

 

 

308

 

 

 

2,111

 

Economic Consulting

 

 

12

 

 

 

11

 

Technology

 

 

19

 

 

 

16

 

Strategic Communications

 

 

3

 

 

 

66

 

 

 

 

426

 

 

 

12,478

 

Unallocated Corporate

 

 

15,913

 

 

 

25,936

 

Total

 

$

16,339

 

 

$

38,414

 

 

The total cash outflow associated with the 2014, 2013 and 2012 special charges is expected to be $65.5 million, of which $53.7 million has been paid as of December 31, 2015. Approximately $3.2 million is expected to be paid in 2016, $3.2 million is expected to be paid in 2017, $2.6 million is expected to be paid in 2018, $1.2 million is expected to be paid in 2019, and the remaining balance of $1.6 million will be paid from 2020 to 2025. A liability for the current and noncurrent portions of the amounts to be paid is 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, 2015 and 2014 is as follows:

 

 

 

Employee

 

 

Lease

 

 

 

 

 

 

 

Termination

 

 

Termination

 

 

 

 

 

 

 

Costs

 

 

Costs

 

 

Total

 

Balance at December 31, 2013

 

$

19,965

 

 

$

6,096

 

 

$

26,061

 

Additions

 

 

7,260

 

 

 

9,580

 

 

 

16,840

 

Payments

 

 

(13,390

)

 

 

(10,822

)

 

 

(24,212

)

Foreign currency translation adjustment and other

 

 

(76

)

 

 

 

 

 

(76

)

Balance at December 31, 2014

 

$

13,759

 

 

$

4,854

 

 

$

18,613

 

Additions

 

 

 

 

 

 

 

 

 

Payments

 

 

(5,826

)

 

 

(1,212

)

 

 

(7,038

)

Foreign currency translation adjustment and other(1)

 

 

(165

)

 

 

403

 

 

 

238

 

Balance at December 31, 2015

 

$

7,768

 

 

$

4,045

 

 

$

11,813

 

 

(1)

A fair value adjustment of $0.4 million related to expected sublease income was recorded to “Selling, general and administrative expenses” within operating income in our Consolidated Statement of Income (Loss) during the three months ended December 31, 2015.