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Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 10-Q 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 000-50976 
HURON CONSULTING GROUP INC.
(Exact name of registrant as specified in its charter)
 
Delaware 01-0666114
(State or other jurisdiction of
incorporation or organization)
 (IRS Employer
Identification Number)
550 West Van Buren Street
Chicago, Illinois
60607
(Address of principal executive offices)
(Zip Code)
(312) 583-8700
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareHURNNASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerAccelerated Filer
Non-accelerated FilerSmaller Reporting 
Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
As of October 26, 2021, 21,917,598 shares of the registrant’s common stock, par value $0.01 per share, were outstanding.


Table of Contents



Huron Consulting Group Inc.
HURON CONSULTING GROUP INC.
INDEX
  Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.



Table of Contents



PART I - FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

HURON CONSULTING GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited) 
September 30,
2021
December 31,
2020
Assets
Current assets:
Cash and cash equivalents$11,189 $67,177 
Receivables from clients, net of allowances of $8,236 and $7,680, respectively
111,548 87,687 
Unbilled services, net of allowances of $2,738 and $2,603, respectively
94,862 53,959 
Income tax receivable2,120 5,121 
Prepaid expenses and other current assets13,624 16,569 
Total current assets233,343 230,513 
Property and equipment, net30,654 29,093 
Deferred income taxes, net1,726 4,191 
Long-term investments68,216 71,030 
Operating lease right-of-use assets37,367 39,360 
Other non-current assets64,463 62,068 
Intangible assets, net16,663 20,483 
Goodwill597,552 594,237 
Total assets$1,049,984 $1,050,975 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$5,918 $648 
Accrued expenses and other current liabilities18,520 14,874 
Accrued payroll and related benefits103,526 133,830 
Current maturities of long-term debt555 499 
Current maturities of operating lease liabilities10,066 8,771 
Deferred revenues17,820 28,247 
Total current liabilities156,405 186,869 
Non-current liabilities:
Deferred compensation and other liabilities40,582 47,131 
Long-term debt, net of current portion262,362 202,780 
Operating lease liabilities, net of current portion56,873 61,825 
Deferred income taxes, net394 428 
Total non-current liabilities360,211 312,164 
Commitments and contingencies
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 24,377,457 and 25,346,916 shares issued, respectively
238 246 
Treasury stock, at cost, 2,457,456 and 2,584,119 shares, respectively
(135,903)(129,886)
Additional paid-in capital409,910 454,512 
Retained earnings245,938 214,009 
Accumulated other comprehensive income13,185 13,061 
Total stockholders’ equity533,368 551,942 
Total liabilities and stockholders’ equity$1,049,984 $1,050,975 
The accompanying notes are an integral part of the consolidated financial statements.
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HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share amounts)
(Unaudited) 
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Revenues and reimbursable expenses:
Revenues$224,007 $205,304 $657,346 $645,780 
Reimbursable expenses3,690 2,860 8,876 25,133 
Total revenues and reimbursable expenses227,697 208,164 666,222 670,913 
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):
Direct costs153,902 145,459 463,543 451,221 
Amortization of intangible assets and software development costs910 1,370 2,745 4,005 
Reimbursable expenses3,914 2,840 9,233 25,095 
Total direct costs and reimbursable expenses158,726 149,669 475,521 480,321 
Operating expenses and other losses (gains), net
Selling, general and administrative expenses43,520 38,561 128,476 126,864 
Restructuring charges1,677 59 3,166 1,777 
Litigation and other losses (gains)56  98 (150)
Depreciation and amortization5,412 6,176 16,286 18,483 
Goodwill impairment charges   59,816 
Total operating expenses and other losses (gains), net50,665 44,796 148,026 206,790 
Operating income (loss)18,306 13,699 42,675 (16,198)
Other income (expense), net:
Interest expense, net of interest income(2,217)(2,259)(5,965)(7,516)
Other income (expense), net(394)2,035 2,177 687 
Total other expense, net(2,611)(224)(3,788)(6,829)
Income (loss) from continuing operations before taxes15,695 13,475 38,887 (23,027)
Income tax expense (benefit)1,968 2,388 6,958 (5,413)
Net income (loss) from continuing operations13,727 11,087 31,929 (17,614)
Loss from discontinued operations, net of tax (29) (89)
Net income (loss)$13,727 $11,058 $31,929 $(17,703)
Net earnings (loss) per basic share:
Net income (loss) from continuing operations$0.65 $0.50 $1.48 $(0.81)
Loss from discontinued operations, net of tax    
Net income (loss)$0.65 $0.50 $1.48 $(0.81)
Net earnings (loss) per diluted share:
Net income (loss) from continuing operations$0.64 $0.50 $1.46 $(0.81)
Loss from discontinued operations, net of tax    
Net income (loss)$0.64 $0.50 $1.46 $(0.81)
Weighted average shares used in calculating earnings (loss) per share:
Basic21,242 21,905 21,574 21,868 
Diluted21,531 22,175 21,904 21,868 
Comprehensive income (loss):
Net income (loss)$13,727 $11,058 $31,929 $(17,703)
Foreign currency translation adjustments, net of tax(246)381 236 (294)
Unrealized gain (loss) on investment, net of tax1,158 4,885 (2,068)(1,051)
Unrealized gain (loss) on cash flow hedging instruments, net of tax309 (243)1,956 (3,633)
Other comprehensive income (loss)1,221 5,023 124 (4,978)
Comprehensive income (loss)$14,948 $16,081 $32,053 $(22,681)
The accompanying notes are an integral part of the consolidated financial statements.
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HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except share amounts)
(Unaudited)
Three Months Ended September 30,
Common StockTreasury StockAdditional
Paid-In
Capital
Retained
Earnings
Accumulated Other
Comprehensive
Income
Stockholders’
Equity
SharesAmountSharesAmount
Balance at June 30, 202124,321,728 $243 (2,899,933)$(135,364)$429,084 $232,211 $11,964 $538,138 
Comprehensive income13,727 1,221 14,948 
Issuance of common stock in connection with:
Restricted stock awards, net of cancellations45,190  1,371 77 (77) 
Exercise of stock options5,000 — 191 191 
Share-based compensation5,693 5,693 
Shares redeemed for employee tax withholdings(12,489)(616)(616)
Share repurchases(518,045)(5)(24,981)(24,986)
Balance at September 30, 202123,853,873 $238 (2,911,051)$(135,903)$409,910 $245,938 $13,185 $533,368 
Balance at June 30, 202024,586,236 $246 (2,786,798)$(128,646)$450,391 $209,088 $4,935 536,014 
Comprehensive income11,058 5,023 16,081 
Issuance of common stock in connection with:
Restricted stock awards, net of cancellations51,860 1 (4,130)(212)211  
Exercise of stock options6,800 — 179 179 
Share-based compensation3,372 3,372 
Shares redeemed for employee tax withholdings(12,468)(580)(580)
Balance at September 30, 202024,644,896 $247 (2,803,396)$(129,438)$454,153 $220,146 $9,958 $555,066 
Nine Months Ended September 30,
Common StockTreasury StockAdditional
Paid-In
Capital
Retained
Earnings
Accumulated Other
Comprehensive
Income
Stockholders’
Equity
SharesAmountSharesAmount
Balance at December 31, 202024,560,855 $246 (2,812,896)$(129,886)$454,512 $214,009 $13,061 $551,942 
Comprehensive income31,929 124 32,053 
Issuance of common stock in connection with:
Restricted stock awards, net of cancellations443,741 4 82,380 3,250 (3,254) 
Exercise of stock options18,403 — 613 613 
Share-based compensation18,256 18,256 
Shares redeemed for employee tax withholdings(180,535)(9,267)(9,267)
Share repurchases(1,169,126)(12)(60,217)(60,229)
Balance at September 30, 202123,853,873 $238 (2,911,051)$(135,903)$409,910 $245,938 $13,185 $533,368 
Balance at December 31, 201924,603,308 $247 (2,763,302)$(128,348)$460,781 $237,849 $14,936 $585,465 
Comprehensive loss(17,703)(4,978)(22,681)
Issuance of common stock in connection with:
Restricted stock awards, net of cancellations321,986 3 94,180 6,707 (6,710) 
Exercise of stock options33,600 — 825 825 
Share-based compensation20,135 20,135 
Shares redeemed for employee tax withholdings(134,274)(7,797)(7,797)
Share repurchases(313,998)(3)(20,878)(20,881)
Balance at September 30, 202024,644,896 $247 (2,803,396)$(129,438)$454,153 $220,146 $9,958 $555,066 
The accompanying notes are an integral part of the consolidated financial statements.
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HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
20212020
Cash flows from operating activities:
Net income (loss)$31,929 $(17,703)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation and amortization19,245 22,511 
Non-cash lease expense4,912 5,844 
Share-based compensation17,979 18,559 
Amortization of debt discount and issuance costs595 595 
Goodwill impairment charges 59,816 
Allowances for doubtful accounts 539 
Deferred income taxes2,434 (16,125)
Loss on sale of business 102 
Change in fair value of contingent consideration liabilities98  
Other, net(325) 
Changes in operating assets and liabilities, net of acquisition and divestiture:
(Increase) decrease in receivables from clients, net(23,294)23,493 
(Increase) decrease in unbilled services, net(40,883)1,597 
(Increase) decrease in current income tax receivable / payable, net3,159 9,455 
(Increase) decrease in other assets98 (3,426)
Increase (decrease) in accounts payable and other liabilities2,229 (5,272)
Increase (decrease) in accrued payroll and related benefits(35,958)(25,290)
Increase (decrease) in deferred revenues(10,424)3,290 
Net cash provided by (used in) operating activities(28,206)77,985 
Cash flows from investing activities:
Purchases of property and equipment, net(8,918)(5,731)
Purchase of investment securities (13,000)
Investment in life insurance policies(574)(2,026)
Purchase of business(5,886)(801)
Capitalization of internally developed software costs(3,603)(6,830)
Proceeds from sale of property and equipment255  
Net cash used in investing activities(18,726)(28,388)
Cash flows from financing activities:
Proceeds from exercises of stock options613 825 
Shares redeemed for employee tax withholdings(9,267)(7,797)
Share repurchases(60,229)(22,115)
Proceeds from bank borrowings189,000 283,000 
Repayments of bank borrowings(129,362)(240,396)
Net cash provided by (used in) financing activities(9,245)13,517 
Effect of exchange rate changes on cash189 27 
Net increase (decrease) in cash and cash equivalents(55,988)63,141 
Cash and cash equivalents at beginning of the period67,177 11,604 
Cash and cash equivalents at end of the period$11,189 $74,745 
Supplemental disclosure of cash flow information:
Non-cash investing and financing activities:
Property and equipment expenditures and capitalized software included in accounts payable, accrued expenses and accrued payroll and related benefits$2,140 $2,049 
Operating lease right-of-use asset obtained in exchange for operating lease liability$2,960 $1,456 
The accompanying notes are an integral part of the consolidated financial statements.
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HURON CONSULTING GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share amounts)
(Unaudited)

1. Description of Business
Huron is a global consultancy that collaborates with clients to drive strategic growth, ignite innovation and navigate constant change. Through a combination of strategy, expertise and creativity, we help clients accelerate operational, digital and cultural transformation, enabling the change they need to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, Huron creates sustainable results for the organizations it serves.
2. Basis of Presentation and Significant Accounting Policies
The accompanying unaudited consolidated financial statements reflect the financial position, results of operations, and cash flows as of and for the three and nine months ended September 30, 2021 and 2020. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods presented in conformity with GAAP. These financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2020 included in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for the periods ended March 31, 2021 and June 30, 2021. Our results for any interim period are not necessarily indicative of results for a full year or any other interim period.
During the first quarter of 2021, we identified an error on our previously reported consolidated balance sheet as of December 31, 2020
related to the classification between receivables from clients, unbilled services, and deferred revenues. Our consolidated balance sheet as
of December 31, 2020 presented herein has been revised to reflect the correction of this error. The results of this correction on our
consolidated balance sheet were a decrease in unbilled services of $7.2 million, an increase in receivables from clients of $0.7 million, and a
decrease in deferred revenues of $6.5 million. This error had no impact on our consolidated statement of operations and other
comprehensive income and consolidated statements of cash flows for any current or prior period. We evaluated the materiality of this error from both quantitative and qualitative perspectives and concluded that the impact of the error was not material to the financial statements for the year ended December 31, 2020.
Preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and related disclosures. The business and economic uncertainty resulting from the coronavirus (COVID-19) pandemic has made such estimates and assumptions more difficult to predict. Accordingly, actual results and outcomes could differ from those estimates.
3. New Accounting Pronouncements
Recently Adopted
In October 2020, the FASB issued Accounting Standards Update ("ASU") 2020-10, Codification Improvements. ASU 2020-10 situates all disclosure guidance within the appropriate disclosure section of the Codification and makes other improvements and technical corrections to the Codification. We adopted ASU 2020-10 effective January 1, 2021, which did not have any impact on our consolidated financial statements.
Not Yet Adopted
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021, the FASB clarified the scope of that guidance with the issuance of ASU 2021-01, Reference Rate Reform (Topic 848): Scope. Together, these ASUs provide optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting under GAAP. This standard is optional and may be applied by entities after March 12, 2020, but no later than December 31, 2022. We have certain debt instruments and related interest rate swaps that are indexed to LIBOR; as such, we are currently evaluating the potential impact this guidance will have on our consolidated financial statements.

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HURON CONSULTING GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share amounts)
(Unaudited)
4. Goodwill and Intangible Assets
The table below sets forth the changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2021.

Healthcare

Business
Advisory
EducationTotal
Balance as of December 31, 2020:
Goodwill$636,810 $308,935 $104,384 $1,050,129 
Accumulated impairment losses(208,081)(247,811) (455,892)
Goodwill, net as of December 31, 2020428,729 61,124 104,384 594,237 
Goodwill recorded in connection with a business acquisition (1)
 3,315  3,315 
Goodwill, net as of September 30, 2021$428,729 $64,439 $104,384 $597,552 
(1)On February 1, 2021, we completed the acquisition of Unico Solution, a data strategy and technology consulting firm focused on helping clients use their data to speed business transformation and accelerate cloud adoption. The results of operations of Unico Solution are included in our consolidated financial statements and results of operations of our Business Advisory segment from the date of acquisition. This acquisition is not significant to our consolidated financial statements.
First Quarter 2020 Goodwill Impairment Charges
The worldwide spread of the COVID-19 pandemic in the first quarter of 2020 created significant volatility, uncertainty and disruption to
the global economy. From the onset of the COVID-19 pandemic, we closely monitored the impact it could have on all aspects of our
business, including how we expect it to negatively impact our clients, employees and business partners. While the COVID-19 pandemic did
not have a significant impact on our consolidated revenues in the first quarter of 2020, we expected it to have an unfavorable impact on
sales, increase uncertainty in the backlog and negatively impact full year 2020 results. The services provided by our Strategy and Innovation
and Life Sciences reporting units within our Business Advisory segment focus on strategic solutions for healthy, well-capitalized companies to
identify new growth opportunities, which may be considered by our clients to be more discretionary in nature, and the duration of the projects
within these practices are typically short-term. Therefore, at the onset of the COVID-19 pandemic in the U.S. and due to the uncertainty
caused by the pandemic, we were cautious about near-term results for these two reporting units. Based on our internal projections and the
preparation of our financial statements for the quarter ended March 31, 2020, and considering the expected decrease in demand due to the
COVID-19 pandemic, during the first quarter of 2020 we believed it was more likely than not that the fair value of these two reporting units no
longer exceeded their carrying values and performed an interim impairment test on both reporting units as of March 31, 2020.
Based on the estimated fair values of the Strategy and Innovation and Life Sciences reporting units, we recorded non-cash pretax goodwill impairment charges of $49.9 million and $9.9 million, respectively, in the first quarter of 2020. The $49.9 million non-cash pretax charge related to the Strategy and Innovation reporting unit reduced the goodwill balance of the reporting unit to $37.5 million. The $9.9 million non-cash pretax charge related to the Life Sciences reporting unit reduced the goodwill balance of the reporting unit to zero.
Our goodwill impairment test was performed by comparing the fair value of each of the Strategy and Innovation and Life Sciences reporting
units with its respective carrying value and recognizing an impairment charge for the amount by which the carrying value exceeded the fair value. To estimate the fair value of each reporting unit, we relied on a combination of the income approach and the market approach with a
fifty-fifty weighting.
In the income approach, we utilized a discounted cash flow analysis, which involved estimating the expected after-tax cash flows that will be
generated by each reporting unit and then discounting those cash flows to present value, reflecting the relevant risks associated with each
reporting unit and the time value of money. This approach requires the use of significant estimates and assumptions, including forecasted
revenue growth rates, forecasted EBITDA margins, and discount rates that reflect the risk inherent in the future cash flows. In estimating
future cash flows, we relied on internally generated seven-year forecasts. Our forecasts are based on historical experience, current backlog,
expected market demand, and other industry information.
In the market approach, we utilized the guideline company method, which involved calculating revenue multiples based on operating data
from guideline publicly traded companies. Multiples derived from guideline companies provide an indication of how much a knowledgeable
investor in the marketplace would be willing to pay for a company. These multiples were evaluated and adjusted based on specific
characteristics of the Strategy and Innovation and Life Sciences reporting units relative to the selected guideline companies and applied to
the reporting units' operating data to arrive at an indication of value.
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HURON CONSULTING GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share amounts)
(Unaudited)
Intangible Assets
Intangible assets as of September 30, 2021 and December 31, 2020 consisted of the following:
As of September 30, 2021As of December 31, 2020
Useful Life 
(in years)
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Customer relationships
3 to 13
$71,273 $56,496 $73,629 $56,232 
Trade names66,000 4,901 6,130 4,287 
Technology and software55,800 5,543 5,800 5,380 
Non-competition agreements51,720 1,258 2,090 1,541 
Customer contracts2800 732 800 526 
Total$85,593 $68,930 $88,449 $67,966 
Identifiable intangible assets with finite lives are amortized over their estimated useful lives. Customer relationships and customer contracts, as well as certain trade names and technology and software, are amortized on an accelerated basis to correspond to the cash flows expected to be derived from the assets. All other intangible assets with finite lives are amortized on a straight-line basis.
Intangible asset amortization expense was $2.2 million and $3.2 million for the three months ended September 30, 2021 and 2020, respectively; and $6.9 million and $9.6 million for the nine months ended September 30, 2021 and 2020. The table below sets forth the estimated annual amortization expense for the intangible assets recorded as of September 30, 2021.
Year Ending December 31,
Estimated Amortization Expense(1)
2021$9,059 
2022$6,878 
2023$4,231 
2024$1,384 
2025$566 
(1)On November 1, 2021, we completed the divestiture of the Life Sciences business, including the sale of customer relationships previously acquired which had a net book value of $2.0 million as of September 30, 2021. The amortization of these customer relationships is included in the table above through 2024.
Actual future amortization expense could differ from these estimated amounts as a result of future acquisitions, dispositions, and other factors.
5. Revenues
For the three months ended September 30, 2021 and 2020, we recognized revenues of $224.0 million and $205.3 million, respectively. Of the $224.0 million recognized in the third quarter of 2021, we recognized revenues of $4.3 million from obligations satisfied, or partially satisfied, in prior periods, of which $2.2 million was primarily due to the release of allowances on unbilled services and $2.1 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements. Of the $205.3 million recognized in the third quarter of 2020, we recognized revenues of $7.4 million from obligations satisfied, or partially satisfied, in prior periods, of which $5.7 million was primarily due to the release of allowances on unbilled services and $1.7 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements.
For the nine months ended September 30, 2021 and 2020, we recognized revenues of $657.3 million and $645.8 million, respectively. Of the $657.3 million recognized in the first nine months of 2021, we recognized revenues of $22.1 million from obligations satisfied, or partially satisfied, in prior periods, of which $14.6 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $7.5 million was primarily due to the release of allowances on unbilled services. Of the $645.8 million recognized in the first nine months of 2020, we recognized revenues of $11.0 million from obligations satisfied, or partially satisfied, in prior periods, of which $6.5 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $4.5 million was primarily due to the release of allowances on unbilled services.
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HURON CONSULTING GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share amounts)
(Unaudited)
As of September 30, 2021, we had $72.8 million of remaining performance obligations under engagements with original expected durations greater than one year. These remaining performance obligations exclude obligations under contracts with an original expected duration of one year or less, variable consideration which has been excluded from the total transaction price due to the constraint, and performance obligations under time-and-expense engagements which are recognized in the amount invoiced. Of the $72.8 million of performance obligations, we expect to recognize approximately $15.8 million as revenue in 2021, $30.2 million in 2022, and the remaining $26.8 million thereafter. Actual revenue recognition could differ from these amounts as a result of changes in the estimated timing of work to be performed, adjustments to estimated variable consideration in performance-based arrangements, or other factors.
Contract Assets and Liabilities
The payment terms and conditions in our customer contracts vary. Differences between the timing of billings and the recognition of revenue are recognized as either unbilled services or deferred revenues in the consolidated balance sheets.
Unbilled services include revenues recognized for services performed but not yet billed to clients. Services performed that we are not yet entitled to bill because certain events, such as the completion of the measurement period or client approval in performance-based engagements, must occur are recorded as contract assets and included within unbilled services, net. The contract asset balance as of September 30, 2021 and December 31, 2020 was $20.8 million and $17.3 million, respectively. The $3.5 million increase primarily reflects timing differences between the completion of our performance obligations and the amounts billed or billable to clients in accordance with their contractual billing terms.
Client prepayments and retainers are classified as deferred revenues and recognized over future periods in accordance with the applicable engagement agreement and our revenue recognition policy. Our deferred revenues balance as of September 30, 2021 and December 31, 2020, was $17.8 million and $28.2 million, respectively. The $10.4 million decrease primarily reflects timing differences between client payments in accordance with their contract terms and the completion of our performance obligations. For the three and nine months ended September 30, 2021, $1.3 million and $27.3 million of revenues recognized were included in the deferred revenue balance as of December 31, 2020.
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HURON CONSULTING GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share amounts)
(Unaudited)
6. Earnings Per Share
Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period, excluding unvested restricted common stock. Diluted earnings per share reflects the potential reduction in earnings per share that could occur if securities or other contracts to issue common stock were exercised or converted into common stock under the treasury stock method. Such securities or other contracts include unvested restricted stock awards, unvested restricted stock units, and outstanding common stock options, to the extent dilutive. In periods for which we report a net loss from continuing operations, diluted weighted average common shares outstanding excludes all potential common stock equivalents as their impact on diluted net loss from continuing operations per share would be anti-dilutive.
Earnings (loss) per share under the basic and diluted computations are as follows: 
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Net income (loss) from continuing operations$13,727 $11,087 $31,929 $(17,614)
Loss from discontinued operations, net of tax (29) (89)
Net income (loss)$13,727 $11,058 $31,929 $(17,703)
Weighted average common shares outstanding – basic21,242 21,905 21,574 21,868 
Weighted average common stock equivalents289 270 330  
Weighted average common shares outstanding – diluted21,531 22,175 21,904 21,868 
Net earnings (loss) per basic share:
Net income (loss) from continuing operations$0.65 $0.50 $1.48 $(0.81)
Loss from discontinued operations, net of tax    
Net income (loss)$0.65 $0.50 $1.48 $(0.81)
Net earnings (loss) per diluted share:
Net income (loss) from continuing operations$0.64 $0.50 $1.46 $(0.81)
Loss from discontinued operations, net of tax    
Net income (loss)$0.64 $0.50 $1.46 $(0.81)
The number of anti-dilutive securities excluded from the computation of the weighted average common stock equivalents presented above were less than 0.1 million shares at both September 30, 2021 and 2020, and related to unvested restricted stock.
In November 2020, our board of directors authorized a share repurchase program (the “2020 Share Repurchase Program”) permitting us to
repurchase up to $50 million of our common stock through December 31, 2021. The 2020 Share Repurchase Program was authorized
subsequent to the expiration of our prior share repurchase program (the “2015 Share Repurchase Program”) on October 31, 2020. The 2015
Share Repurchase Program permitted us to repurchase up to $125 million of our common stock through October 31, 2020. During the third quarter of 2021, our board of directors authorized an extension of the 2020 Share Repurchase Program through December 31, 2022 and increased the authorized amount from $50 million to $100 million.The amount and timing of repurchases under both share repurchase programs were and will continue to be determined by management and depend on a variety of factors, including the trading price of our common stock, capacity under our credit facility, general market and business conditions, and applicable legal requirements. All shares repurchased and retired are reflected as a reduction to our basic weighted average shares outstanding based on the trade date of the share repurchase.
In the three and nine months ended September 30, 2021, we repurchased and retired 518,045 and 1,169,126 shares for $25.0 million and $60.2 million, respectively, under the 2020 Share Repurchase Program. In the first quarter of 2020, we repurchased 313,998 shares for $20.9 million under the 2015 Share Repurchase Program. Additionally, in the first quarter of 2020, we settled the repurchase of 18,000 shares for $1.2 million that were accrued as of December 31, 2019. No shares were repurchased in the second or third quarters of 2020. As of September 30, 2021, $34.7 million remained available for share repurchases under our 2020 Share Repurchase Program.
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HURON CONSULTING GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share amounts)
(Unaudited)
7. Financing Arrangements
A summary of the carrying amounts of our debt follows:
September 30,
2021
December 31,
2020
Senior secured credit facility$260,000 $200,000 
Promissory note due 20242,917 3,279 
Total long-term debt$262,917 $203,279 
Current maturities of long-term debt(555)(499)
Long-term debt, net of current portion