2.2.0.25falsefalse10201 - Disclosure - Acquistionstruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010 USD ($) USD ($) / shares $Duration_1_1_2010_To_12_31_2010http://www.sec.gov/CIK0001019737duration2010-01-01T00:00:002010-12-31T00:00:00Unit12Standardhttp://www.xbrl.org/2003/iso4217USDiso42170Unit13Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0Unit1Standardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0us-gaap_BusinessAcquisitionEntityAcquiredAndReasonForAcquisitionAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalseAcquisitions3false0us-gaap_BusinessCombinationDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<div> <div style="font-family: 'Times New Roman',Times,serif;"> <div> <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"> <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"> <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"> <div> <div> <table class="MsoNormalTable" style="font-size: 11pt; width: 100%; line-height: 115%; font-family: 'Calibri','sans-serif';" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr><td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="top"> 3.   </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="top"> <a name="9"> </a>ACQUISITIONS </td></tr></table>   2010 Acquisitions   On October 1, 2010, we acquired the assets of EthosPartners Healthcare Management Group, Inc. for approximately $37.0 million, which consisted of $28.0 million in cash paid at closing, $2.0 million in restricted common stock issued at closing and $7.0 million in deferred payments. The restricted stock and deferred payments were recorded at fair value in other current and non-current liabilities. The deferred payments are payable in cash in two equal installments on the first and second anniversaries of the closing date. In addition, EthosPartners can earn up to a total of $8.0 million of additional payments based on the business achieving certain performance targets during each of the three years after closing. Fair value of the contingent consideration, recorded in other current and non-current liabilities, was estimated to be $5.6 million and was determined based on level two observable inputs and will be recalculated each reporting period with any resulting gains or losses being recorded in the income statement. No such gains or losses were recorded during the year ended December 31, 2010. The additional purchase price payments, if earned, would be payable approximately 90 days after the end of the year in which the performance targets were attained. As part of the purchase price allocation, we recorded $6.4 million in identifiable intangible assets and $35.6 million in goodwill. The purchase price paid in cash at closing was funded under our credit facility.   We acquired EthosPartners to enhance our healthcare practice. EthosPartners is a national healthcare consulting group specializing in physician and hospital alignment, physician practice operations management, and physician revenue cycle management. This acquisition included 180 consulting professionals and has been integrated into our Business Consulting Services segment.   On May 14, 2010, we acquired the assets of Daylight Forensic & Advisory LLC, located in New York, New York for approximately $40.0 million, which consisted of $29.9 million in cash paid at closing and $10.0 million, recorded in other current liabilities, to be paid in cash on the first anniversary of the closing date. As part of the purchase price allocation, we recorded $4.5 million in identifiable intangible assets and $35.2 million in goodwill. The purchase price paid in cash at closing was funded under our credit facility.   We acquired Daylight to enhance our investigative service offerings and to add significant presence in the New York market. Daylight is a consulting and investigative firm specializing in regulatory compliance and fraud risk management, with extensive capabilities in anti-money laundering and Foreign Corrupt Practices Act related matters. This acquisition included 65 consulting professionals and has been integrated into our Dispute and Investigative Services segment.   On January 20, 2010, we acquired the assets of Empiris, LLC, located in Washington, D.C. for $5.5 million, which consisted of $4.0 million in cash paid at closing and $1.5 million, recorded in other current and non-current liabilities, to be paid in cash in two equal installments on December 31, 2010 and January 3, 2012. On December 31, 2010, we paid the first cash installment of $0.8 million. In addition, the purchase agreement contains a provision for contingent consideration of up to $2.0 million in cash. The contingent consideration is based on the business achieving certain performance targets during the periods from closing to December 31, 2010 and in calendar years 2011 and 2012 and will be payable in March of the year following the year such performance targets are attained. We expect to pay approximately $0.2 million of this consideration in March of 2011. Fair value of the contingent consideration, recorded in other current and non-current liabilities, was estimated to be $1.9 million and was determined based on level two observable inputs and will be recalculated each reporting period with any resulting gains or losses being recorded in the income statement. No such gains or losses were recorded during the year ended December 31, 2010. As part of the purchase price allocation, we recorded $1.6 million in identifiable intangible assets and $5.8 million in goodwill. The purchase price paid in cash at closing was funded with cash from operations.   We acquired Empiris to enhance our Economic Consulting segment. Empiris provides significant expertise and growth opportunities in our Washington, D.C. market by servicing relevant governmental agencies, corporations and law firms. This acquisition consisted of nine professionals and has been integrated into our Economic Consulting segment.     2009 Acquisitions   On December 31, 2009, we acquired the assets of Summit Blue Consulting, LLC for $13.0 million, which consisted of $11.0 million in cash paid at closing and two deferred cash payments of $1.0 million each, due on the first and second anniversaries of the closing. On December 31, 2010, we paid the first cash installment of $1.0 million. As part of the purchase price allocation, we recorded $2.6 million in identifiable intangible assets and $10.4 million in goodwill. The purchase price paid in cash at closing was funded with cash from operations.   We acquired Summit Blue to expand and complement our energy practice with new service lines to our clients. Summit Blue specializes in resource planning, energy efficiency, demand response, and renewable energy consulting services for utilities, public agencies, and other clients. Summit Blue, headquartered in Boulder, Colorado, consisted of approximately 60 consultants and was integrated into our Business Consulting Services segment.   On February 23, 2009, we acquired assets of Morse PLC's Investment Management Consulting Business from Morse PLC located in the United Kingdom for $1.9 million in cash paid at closing. As part of the purchase price allocation, we recorded $0.4 million in identifiable intangible assets and $1.6 million in goodwill, which included a deferred tax adjustment of $0.1 million. This acquisition consisted of 26 consulting professionals and has been included in the International Consulting segment.   2008 Acquisitions   On December 31, 2008, we acquired the assets of The Bard Group, LLC for $7.2 million, which consisted of $4.6 million in cash and $0.6 million of our common stock paid at closing and two deferred cash payments of $1.0 million each, due on the first and second anniversaries of closing. On December 31, 2009 and 2010 we paid each of the deferred cash payments of $1.0 million. The common stock and deferred cash payments were recorded at fair value at closing for $0.5 million and $1.9 million, respectively. We acquired assets of $0.7 million and assumed liabilities of $0.7 million. As part of the purchase price allocation, we recorded $1.6 million in identifiable intangible assets and $5.4 million in goodwill. Bard provided physician leadership and performance improvement services in the healthcare industry. We acquired Bard to enhance our healthcare practice in the area of providing integration strategy, service line development, and performance excellence. Bard was comprised of 25 consulting professionals located in Boston, Massachusetts at the time of acquisition and was integrated into our Business Consulting Services segment.   On May 1, 2008, we acquired the assets of Chicago Partners, LLC for $73.0 million, which consisted of $50.0 million in cash paid at closing and $23.0 million in our common stock (which was recorded at fair value for $21.0 million at closing). The common stock will be paid in four equal installments of $5.8 million. As of December 31, 2010, we have one installment of $5.8 million to be issued on May 1, 2011. We acquired assets of $16.7 million, including $15.8 million in accounts receivable and assumed liabilities of $7.0 million. We paid $0.5 million in acquisition-related costs. We recorded $2.8 million of liabilities for obligations related to lease exit costs for office space assumed in the acquisition. The obligation recorded for real estate lease exit costs was based on foregone rent payments for the remainder of the lease term less assumed sublease income. As of December 31, 2009, we have secured a subtenant for a portion of the total office space assumed in the acquisition. As part of the original purchase price allocation, we recorded $4.3 million in identifiable intangible assets and $61.6 million in goodwill. The purchase price paid in cash at closing was funded under our credit facility.   Subsequent to the closing date, we may pay up to $27.0 million of additional purchase consideration based on the Chicago Partners business achieving certain post-closing performance targets during the periods from closing to December 31, 2008 and in calendar years 2009, 2010 and 2011. If earned, the additional purchase consideration would be payable 75% in cash and 25% in our common stock. The additional purchase price payments, if any, will be payable in March of the year following the year in which such performance targets are attained. Any additional purchase price consideration payments will be recorded as goodwill when the contingencies regarding attainment of performance targets are resolved. As of December 31, 2008, we recorded a liability for additional purchase price payments of approximately $3.0 million associated with additional purchase consideration earned during 2008. During the three months ended March 31, 2009, we made an additional purchase price payment of $2.3 million based on 2008 performance and accordingly adjusted the $3.0 million accrual for earnout payments recorded at December 31, 2008 to $2.3 million at March 31, 2009, which also impacted goodwill. For 2009 and 2010, Chicago Partners did not attain the required performance targets and therefore did not earn any additional purchase price consideration. As a result, as of December 31, 2010, there were no adjustments to goodwill and purchase price obligations related to 2009 and 2010 earnout considerations.   We acquired Chicago Partners to expand our product offerings to our clients. Chicago Partners provides economic and financial analyses of legal and business issues principally for law firms, corporations and governmental agencies. Chicago Partners had approximately 90 consultants at the time of acquisition. Chicago Partners is managed and resources are allocated based on its results and as such, operates under a fourth operating segment referred to as "Economic Consulting."     Accounting for Acquisitions   All of our business acquisitions described above have been accounted for by the purchase method of accounting for business combinations and, accordingly, the results of operations have been included in our consolidated financial statements since the dates of the acquisition. As discussed in Note 2 — Summary of Significant Accounting Policies, we changed our method of accounting for business combinations as of January 1, 2009.   Pro Forma Information     The following table summarizes certain supplemental unaudited pro forma financial information which was prepared as if the 2009 and 2010 acquisitions noted above had occurred as of the beginning of the periods presented. The unaudited pro forma financial information was prepared for comparative purposes only and does not purport to be indicative of what would have occurred had the acquisitions been made at that time or of results which may occur in the future.   <div align="center"> <table class="MsoNormalTable" style="font-size: 11pt; width: 100%; line-height: 115%; font-family: 'Calibri','sans-serif';" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr><td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; width: 81%; padding-top: 0in;" valign="bottom" width="81%">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; width: 2%; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; width: 3%; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; width: 1%; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; width: 3%; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; width: 3%; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; width: 3%; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; width: 1%; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; width: 3%; padding-top: 0in;" valign="bottom" width="3%">  </td></tr> <tr><td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: black 1pt solid;" valign="bottom" colspan="7"> For the Year Ended December 31, </td></tr> <tr><td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: black 1pt solid;" valign="bottom" nowrap="nowrap" colspan="3"> 2010 </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: black 1pt solid;" valign="bottom" nowrap="nowrap" colspan="3"> 2009 </td></tr> <tr><td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;"> </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;"> </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;"> </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;"> </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;"> </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;"> </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;"> </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;"> </td></tr> <tr><td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> Total revenues </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> $ </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> 741,165 </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> $ </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> 787,446 </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td></tr> <tr><td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> Net income </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> $ </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> 25,337 </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> $ </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> 21,049 </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td></tr> <tr><td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom"> Basic net income per share </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> $ </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> 0.51 </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> $ </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> 0.44 </td> <td style="padding-right: 0in; padding-left: 0in; background: #cceeff; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td></tr> <tr><td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom"> Diluted net income per share </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> $ </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> 0.50 </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom">  </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> $ </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> 0.42 </td> <td style="padding-right: 0in; padding-left: 0in; padding-bottom: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap">  </td></tr></table></div></div></div></div></div></div></div></div></div></div></div></div></div></div> </div>3.   ACQUISITIONS   2010 Acquisitions   On October 1, 2010, we acquired the assets of EthosPartners Healthcare ManagementfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDescription of a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. This element may be used as a single block of text to encapsulate the entire disclosure (including data and tables) regarding business combinations, including leverage buyout transactions (as applicable).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 51, 52 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 88-16 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph 67-73 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph F4 -Subparagraph e -Appendix F falsefalseAcquistions12AcquistionsUnKnownUnKnownUnKnownUnKnownfalsetrue