2009 Annual Report (PDF) - FTI Consulting

Share based payments to employees and non-employee directors were recognized using the intrinsic valuemethod for the year ended December 31, 2005 which resulted in significantly lower share based compensationexpense in 2005.RevenuesIn December 2005, we received a $22.5 million success fee in connection with the resolution of a legal caseinvolving a bankrupt estate for which we served as fiduciary for several years. We used approximately$9.5 million of the proceeds to compensate professionals primarily in the Corporate Finance/Restructuringsegment who participated in the assignment and to provide incentive compensation for other employees. Thisamount was recorded as accrued compensation in our consolidated balance sheet as of December 31, 2005.Special ChargesSpecial charges primarily consist of severance and other contractual employee related costs associated withreductions in workforce. During the third quarter of 2006, we recorded special charges totaling $23.0 million.The charges reflect actions we took to address certain underperforming operations. In particular, we restructuredour Corporate Finance/Restructuring UK operations and consolidated certain of our non-core practices in theU.S., primarily through reductions in workforce.Stockholders’ EquityIn the fourth quarter of 2009 we repurchased 4.9 million shares of common stock for $250 million under anaccelerated stock buyback transaction using cash on hand. The repurchase of shares was accounted for as a shareretirement resulting in a reduction in stockholders’ equity of $250.0 million. See Note 17 — “Stockholders’Equity” to our consolidated financial statements for more information.37