Supplemental Consolidated Balance Sheet Information

3 Months Ended

Mar. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Supplemental Consolidated Balance Sheet Information

9. SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION

Accounts Receivable, Net and Contract Assets

The components of accounts receivable, net and contract assets, were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Billed amounts	$	108,125		$	116,190
Engagements in process and contract assets		89,512			74,633
Allowance for uncollectible billed amounts		(8,022	)		(7,815	)
Allowance for uncollectible engagements in process		(3,092	)		(3,085	)
Accounts receivable, net and contract assets	$	186,523		$	179,923

Receivables attributable to engagements in process represent balances for services that have been performed and earned but have not been billed to the client. Engagements in process include contract assets.  See Note 4 – Revenue Recognition for information on contract assets. Services are generally billed on a monthly basis for the prior month’s services. Our allowance for uncollectible accounts is based on historical experience and management judgment and may change based on market conditions or specific client circumstances.

Prepaid Expenses and Other Current Assets

The components of prepaid expenses and other current assets were as follows (in thousands):

	March 31,		December 31,
	2019		2018
Prepaid recruiting and retention incentives - current	$	5,387	$	4,552
Other current prepaid expenses and other current assets		21,448		17,960
Prepaid expenses and other current assets	$	26,835	$	22,512

Other Assets

The components of other assets were as follows (in thousands):

	March 31,		December 31,
	2019		2018
Prepaid recruiting and retention incentives - non-current	$	3,070	$	2,654
Other prepaid expenses and other non-current assets		5,633		5,990
Other assets	$	8,703	$	8,644

  Prepaid recruiting and retention incentives, current and non-current, include sign-on and retention bonuses that are generally recoverable from an employee if the employee voluntarily terminates employment or if the employee’s employment is terminated for “cause” prior to fulfilling his or her obligations to us. These amounts are amortized as compensation expense over the periods in which they are recoverable from the employees, with periods up to three years. During the three months ended March 31, 2019 and 2018, we granted $3.0 million and $2.5 million, respectively, in sign-on and retention bonuses.

Property and Equipment, Net

The components of property and equipment, net were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Furniture, fixtures and equipment	$	56,944		$	55,619
Software		87,821			86,225
Leasehold improvements		47,114			47,097
Property and equipment, at cost		191,879			188,941
Less: accumulated depreciation and amortization		(130,505	)		(125,916	)
Property and equipment, net	$	61,374		$	63,025

During the three months ended March 31, 2019, we invested $3.0 million in property and equipment.

Other Current Liabilities

The components of other current liabilities were as follows (in thousands):

	March 31,		December 31,
	2019		2018
Deferred acquisition liabilities - current	$	978	$	969
Contract liabilities		21,301		28,909
Deferred rent - current		-		2,656
Other current liabilities		482		1,510
Total other current liabilities	$	22,761	$	34,044

Other Non-Current Liabilities

The components of other non-current liabilities were as follows (in thousands):

	March 31,		December 31,
	2019		2018
Deferred acquisition liabilities - non-current	$	733	$	710
Deferred rent - non-current		-		21,648
Other non-current liabilities		3,588		2,919
Total other non-current liabilities	$	4,321	$	25,277

 Deferred acquisition liabilities, current and non-current, at March 31, 2019 consisted of cash obligations related to definitive and contingent purchase price considerations recorded at fair value and net present value, respectively. See Note 13 – Fair Value for additional information regarding deferred contingent consideration fair value adjustments.

As a result of the adoption of Topic 842, deferred rent amounts as of March 31, 2019 are reflected in the operating lease right-use assets.  

At March 31, 2019, other non-current liabilities included $2.3 million of performance-based long-term incentive compensation liabilities. As part of our long-term incentive program for select senior-level client-service employees and leaders, we grant restricted stock units which typically vest three years from the grant date. The value of equity granted is based on the relative achievement of certain performance targets during the year prior to grant.

Contract liabilities represent advance billings to our clients for services that have not yet been performed and earned. See Note 4 – Revenue Recognition for information on contract liabilities.