Special Charges

During the year ended December 31, 2017, we recorded special charges of $40.9 million. The charges related to certain targeted reductions in areas of each segment where we needed to realign our workforce with current business demand. In addition, cost-cutting actions were taken in certain corporate departments where we were able to streamline support activities and reduce our real estate costs. $48.4 million of the charge will be paid in cash. The total charge is net of a $7.5 million non-cash reduction to expense primarily for the reversal of a deferred rent liability. The special charge includes the following components:


•	$23.5 million of employee severance and other employee-related costs associated with the reduction in workforce of 255 employees in our segments and certain corporate departments. All of these amounts will be paid in cash;


•	$14.4 million of exit costs associated with the curtailment of our lease on our executive office in Washington, D.C. $22.7 million of the charge will be paid in cash. The exit costs include an $8.3 million non-cash reduction to expense primarily for the reversal of a deferred rent liability; and


•	$3.0 million of other expenses, including costs related to disposing or closing several small international offices, of which $0.8 million was a non-cash expense.

During the year ended December 31, 2016, we recorded special charges of $10.4 million. The charges are related to employee terminations in our Technology segment, health solutions practice of our Forensic and Litigation Consulting segment, and Corporate infrastructure group. The charges consisted of salary continuance and other contractual employee-related costs.

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

The following table details the special charges by segment and corporate.



	Year Ended December 31,
Special Charges by Segment	2017		2016
Corporate Finance & Restructuring	$	5,440	$	—
Forensic and Litigation Consulting	12,334		2,304
Economic Consulting	6,624		—
Technology	5,057		7,529
Strategic Communications	7,752		—
	37,207		9,833
Unallocated Corporate	3,678		612
Total	$	40,885	$	10,445

The table below summarizes the activity related to the liabilities for these costs for the years ended December 31, 2017 and 2016.



	Employee Termination Costs			Lease Termination Costs			Other			Total
Balance at December 31, 2015	$	7,768		$	4,045		$	—		$	11,813
Additions ⁽¹⁾	10,724			—			—			10,724
Reductions	(10,264		)	(896		)	—			(11,160		)
Foreign currency translation adjustment and other	(3		)	186			—			183
Balance at December 31, 2016	$	8,225		$	3,335		$	—		$	11,560
Additions ⁽¹⁾	23,260			23,498			584			47,342
Reductions	(20,771		)	(7,757		)	(584		)	(29,112		)
Foreign currency translation adjustment and other	165			(19		)	—			146
Balance at December 31, 2017 ⁽²⁾	$	10,879		$	19,057		$	—		$	29,936

⁽¹⁾Excludes $0.8 million and $0.3 million in net non-cash expense reversals for the years ended December 31, 2017 and 2016, respectively

⁽²⁾Of the $29.9 million remaining liability for special charges, $16.0 million is expected to be paid in 2018, $4.8 million is expected to be paid in 2019, $3.8 million is expected to be paid in 2020, $3.2 million is expected to be paid in 2021 and the remaining balance of $2.1 million is expected to be paid from 2022 to 2026. These amounts are included in "Accounts payable, accrued expenses and other" and "Other liabilities" in our Consolidated Balance Sheets.