4. Special Charges

There were no special charges recorded during the three months ended September 30, 2017.

During the nine months ended September 30, 2017, we recorded a special charge of $30.1 million. The charge includes the impact of certain targeted reductions in areas of each segment where we needed to re-align 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. $37.6 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:

•

$16.1 million of employee severance and other employee related costs associated with the reduction in workforce of 201 employees in our segments and certain corporate departments. All of these amounts will be paid in cash;

•

$12.4 million of exit costs associated with the curtailment of our lease on our executive office in Washington, D.C. $20.5 million of the charge will be paid in cash. The exit costs include an $8.1 million non-cash reduction to expense primarily for the reversal of a deferred rent liability; and

•

$1.6 million of other expenses, including costs related to disposing or closing several small international offices, of which $0.6 million was a non-cash expense.

There were no special charges recorded during the three months ended September 30, 2016.

During the nine months ended September 30, 2016, we recorded special charges of $6.8 million related to employee terminations in the health solutions practice of our Forensic and Litigation Consulting segment and employee terminations in our Technology segment.

The following table details the special charges by segment for the nine months ended September 30, 2017 and 2016:

	Nine Months Ended September 30
Special Charges by Segment	2017		2016
Corporate Finance & Restructuring	$	3,049	$	—
Forensic and Litigation Consulting		10,445		1,750
Economic Consulting		5,910		—
Technology		3,827		5,061
Strategic Communications		3,599		—
		26,830		6,811
Unallocated Corporate		3,244		—
Total	$	30,074	$	6,811

Activity related to the liability for the special charges for the nine months ended September 30, 2017 is as follows:

	Employee			Lease
	Termination			Termination			Other
	Costs			Costs			Costs			Total
Balance at December 31, 2016	$	8,225		$	3,335		$	—		$	11,560
Additions		15,980			19,985			570			36,535
Reductions		(15,947	)		(2,941	)		(526	)		(19,414	)
Foreign currency translation adjustment and other		153			(19	)		6			140
Balance at September 30, 2017⁽¹⁾	$	8,411		$	20,360		$	50		$	28,821

⁽¹⁾

Of the $28.8 million remaining liability for the special charges, $5.2 million is expected to be paid in the remainder of 2017, $10.5 million is expected to be paid in 2018, $4.8 million is expected to be paid in 2019, $4.0 million is expected to be paid in 2020 and the remaining balance of $4.3 million is expected to be paid from 2021 to 2025.