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Dispositions and Discontinued Operations
6 Months Ended
Jun. 30, 2019
Discontinued Operations And Disposal Groups [Abstract]  
Dispositions and Discontinued Operations

3.

DISPOSITIONS AND DISCONTINUED OPERATIONS

On August 24, 2018, we completed the disposition of our former Disputes, Forensics and Legal Technology segment and the transaction advisory services practice within our Financial Services Advisory and Compliance segment (collectively, “SaleCo”) to Ankura Consulting Group, LLC (“Ankura”) for total proceeds of $462.8 million net of working capital adjustments. The operations of SaleCo have been presented in accordance with ASC Topic 205 “Discontinued Operations” for all periods presented. All other operations are considered “continuing operations” and have been presented in three segments. See Note 5 – Segment Information.

The amounts attributable to each category of discontinued operations were as follows (in thousands):

 

 

For the three months ended

 

 

For the six months ended

 

 

June 30,

 

 

June 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues before reimbursements

$

 

-

 

 

$

 

87,169

 

 

$

 

-

 

 

$

 

169,603

 

Total revenues

 

 

-

 

 

 

 

91,013

 

 

 

 

-

 

 

 

 

177,465

 

Cost of services including reimbursable expenses

 

 

-

 

 

 

 

60,168

 

 

 

 

-

 

 

 

 

118,655

 

General and administrative expenses

 

 

-

 

 

 

 

8,770

 

 

 

 

-

 

 

 

 

16,053

 

Amortization and depreciation expense

 

 

-

 

 

 

 

1,931

 

 

 

 

-

 

 

 

 

3,884

 

Interest expense

 

 

-

 

 

 

 

600

 

 

 

 

-

 

 

 

 

1,088

 

Income from disposition of discontinued operations

 

 

721

 

 

 

 

-

 

 

 

 

49

 

 

 

 

-

 

Other expense, net

 

 

-

 

 

 

 

28

 

 

 

 

-

 

 

 

 

57

 

Income from discontinued operations before income tax expense

 

 

721

 

 

 

 

19,516

 

 

 

 

49

 

 

 

 

37,728

 

Income tax (benefit) expense from discontinued operations

 

 

198

 

 

 

 

(3,182

)

 

 

 

15

 

 

 

 

1,580

 

Income from discontinued operations, net of tax

 

 

523

 

 

 

 

22,698

 

 

 

 

34

 

 

 

 

36,148

 

 

Amounts recorded to discontinued operations in the six months ended June 30, 2019 were due to settlements of certain working capital amounts, as well as changes in estimates of other transaction related contingencies. Certain contingencies remain unresolved and are subject to finalization and settlement, which may result in further adjustments to the gain (loss) on disposition.  

In addition to the purchase agreement for SaleCo, we entered into a Transition Services Agreement (the “TSA”) pursuant to which we provide Ankura with certain services to enable Ankura to operate SaleCo (the “TSA Services”). The TSA Services include information technology, finance and accounting, human resources and other corporate support services. Pursuant to the terms of the SaleCo transaction, the TSA Services were required to be provided to Ankura for a period of up to 6 months after the closing date for certain services, and then certain services were extended at Ankura’s option through August 31, 2019. Ankura has requested that we further extend certain of the TSA Services through February 29, 2020. Income related to the TSA Services has been recorded in general and administrative expenses.