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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2014	Mar. 06, 2015	Jun. 30, 2014
Document and Entity Information
Entity Registrant Name	Hill International, Inc.
Entity Central Index Key	0001287808
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 170,206,000
Entity Common Stock, Shares Outstanding		50,373,757
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 30,124,000	$ 30,381,000
Cash - restricted	8,851,000	15,766,000
Accounts receivable, less allowance for doubtful accounts of $11,142 and $9,530	194,256,000	232,011,000
Accounts receivable - affiliates	3,993,000	492,000
Prepaid expenses and other current assets	15,854,000	13,078,000
Income taxes receivable	2,833,000	4,460,000
Deferred income tax assets	1,188,000	1,705,000
Total current assets	257,099,000	297,893,000
Property and equipment, net	11,643,000	10,613,000
Cash - restricted, net of current portion	7,156,000	2,740,000
Accounts receivable - Libya	49,659,000
Retainage receivable	3,300,000	1,212,000
Acquired intangibles, net	19,282,000	24,964,000
Goodwill	80,437,000	85,853,000
Investments	5,083,000	5,984,000
Deferred income tax assets	15,426,000	13,882,000
Other assets	15,899,000	5,961,000
Total assets	464,984,000	449,102,000
Liabilities and Stockholders' Equity
Due to bank		2,000
Current maturities of notes payable and long-term debt	6,361,000	18,974,000
Accounts payable and accrued expenses	92,068,000	92,270,000
Income taxes payable	8,689,000	9,442,000
Deferred revenue	20,542,000	18,203,000
Deferred income taxes	279,000	369,000
Other current liabilities	9,996,000	12,255,000
Total current liabilities	137,935,000	151,515,000
Notes payable and long-term debt, net of current maturities	121,875,000	114,285,000
Retainage payable	2,448,000	1,017,000
Deferred income taxes	14,654,000	16,732,000
Deferred revenue	12,193,000	16,261,000
Other liabilities	13,093,000	6,261,000
Total liabilities	302,198,000	306,071,000
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value; 1,000 shares authorized, none issued
Common stock, $0.0001 par value; 100,000 shares authorized, 56,920 and 46,598 shares issued at December 31, 2014 and December 31, 2013, respectively	6,000	5,000
Additional paid-in capital	179,912,000	136,899,000
Retained earnings	36,159,000	47,038,000
Accumulated other comprehensive loss	(33,661,000)	(25,032,000)
Shareholders' equity before treasury stocks and noncontrolling interest	182,416,000	158,910,000
Less treasury stock of 6,546 shares at December 31, 2014 and 6,434 shares at December 31, 2013, at cost	(28,304,000)	(27,766,000)
Hill International, Inc. share of equity	154,112,000	131,144,000
Noncontrolling interests	8,674,000	11,887,000
Total equity	162,786,000	143,031,000
Total liabilities and stockholders' equity	$ 464,984,000	$ 449,102,000

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 11,142	$ 9,530
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000	1,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	56,920	46,598
Treasury stock, shares	6,546	6,434

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED STATEMENTS OF OPERATIONS
Consulting fee revenue	$ 575,805	$ 512,085	$ 417,598
Reimbursable expenses	64,476	64,596	63,183
Total revenue	640,281	576,681	480,781
Cost of services	328,795	296,055	239,572
Reimbursable expenses	64,476	64,596	63,183
Total direct expenses	393,271	360,651	302,755
Gross profit	247,010	216,030	178,026
Selling, general and administrative expenses	217,730	183,572	172,779
Operating profit	29,280	32,458	5,247
Interest and related financing fees, net	30,485	22,864	18,150
(Loss) earnings before income taxes	(1,205)	9,594	(12,903)
Income tax expense	8,411	6,043	13,442
Net (loss) earnings	(9,616)	3,551	(26,345)
Less: net earnings - noncontrolling interests	1,263	1,922	1,872
Net (loss) earnings attributable to Hill International, Inc.	$ (10,879)	$ 1,629	$ (28,217)
Basic (loss) earnings per common share - Hill International, Inc. (in dollars per share)	$ (0.25)	$ 0.04	$ (0.73)
Basic weighted average common shares outstanding (in shares)	44,370	39,098	38,500
Diluted (loss) earnings per common share - Hill International, Inc. (in dollars per share)	$ (0.25)	$ 0.04	$ (0.73)
Diluted weighted average common shares outstanding (in shares)	44,370	39,322	38,500

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) EARNINGS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) EARNINGS
Net (loss) earnings	$ (9,616)	$ 3,551	$ (26,345)
Foreign currency translation adjustment, net of tax	(10,406)	(7,733)	(2,267)
Other, net	123	218	(392)
Comprehensive loss	(19,899)	(3,964)	(29,004)
Comprehensive (loss) earnings attributable to noncontrolling interests	(391)	(576)	332
Comprehensive loss attributable to Hill International, Inc.	$ (19,508)	$ (3,388)	$ (29,336)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Hill Share of Stockholders' Equity	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss)	Treasury Stock	Non-controlling Interests	Total
Balance at Dec. 31, 2011	$ 154,136	$ 4	$ 127,168	$ 73,626	$ (18,896)	$ (27,766)	$ 18,258	$ 172,394
Balance (in shares) at Dec. 31, 2011		44,937
Increase (decrease) in stockholders' equity
Net (loss) earnings	(28,217)			(28,217)			1,872	(26,345)
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2011						6,434
Increase (decrease) in stockholders' equity
Other comprehensive loss	(1,119)				(1,119)		(1,540)	(2,659)
Issuance of restricted stock	180	$ 1	179					180
Issuance of restricted stock (in shares)		61
Stock issued to Board of Directors	150		150					150
Stock issued to Board of Directors (in shares)		52
Stock-based compensation expense	2,126		2,126					2,126
Stock issued under employee stock purchase plan	105		105					105
Stock issued under employee stock purchase plan (in shares)		37
Exercise of stock options	24		24					$ 24
Exercise of stock options (in shares)		10						10
Tax effect of restricted stock	161		161					$ 161
Payment of dividends to noncontrolling interests							(1,439)	(1,439)
Acquisition of additional interest in subsidiary							(3,594)	(3,594)
Balance at Dec. 31, 2012	127,546	$ 5	129,913	45,409	(20,015)	$ (27,766)	13,557	141,103
Balance (in shares) at Dec. 31, 2012		45,097
Balance (in shares) at Dec. 31, 2012						6,434
Increase (decrease) in stockholders' equity
Net (loss) earnings	1,629			1,629			1,922	3,551
Other comprehensive loss	(5,017)				(5,017)		(2,498)	(7,515)
Stock issued to Board of Directors	150		150					150
Stock issued to Board of Directors (in shares)		52
Stock-based compensation expense	2,811		2,811					2,811
Stock issued under employee stock purchase plan	138		138					138
Stock issued under employee stock purchase plan (in shares)		51
Exercise of stock options	20		20					$ 20
Exercise of stock options (in shares)		8						8
Stock issued for acquisition of businesses	4,450		4,450					$ 4,450
Stock issued for acquisition of businesses		1,390
Tax effect of restricted stock	(583)		(583)					(583)
Acquisition of additional interest in subsidiary							(1,094)	(1,094)
Balance at Dec. 31, 2013	131,144	$ 5	136,899	47,038	(25,032)	$ (27,766)	11,887	$ 143,031
Balance (in shares) at Dec. 31, 2013		46,598						46,598
Balance (in shares) at Dec. 31, 2013						6,434		6,434
Increase (decrease) in stockholders' equity
Net (loss) earnings	(10,879)			(10,879)			1,263	$ (9,616)
Other comprehensive loss	(8,629)				(8,629)		(1,654)	(10,283)
Sale of common stock	38,042	$ 1	38,041					38,042
Sale of common stock (in shares)		9,547
Stock issued to Board of Directors	175		175					175
Stock issued to Board of Directors (in shares)		27
Stock-based compensation expense	3,327		3,327					3,327
Cancelation of restricted stock	(8)		(8)					(8)
Cancelation of restricted stock (in shares)		(2)
Stock issued under employee stock purchase plan	197		197					197
Stock issued under employee stock purchase plan (in shares)		55
Exercise of stock options	1,032		1,032					$ 1,032
Exercise of stock options (in shares)		324						524
Cashless exercise of stock options			538			$ (538)
Cashless exercise of stock options (in shares)		200				112
Stock issued for acquisition of businesses	618		618					$ 618
Stock issued for acquisition of businesses		171
Payment of dividends to noncontrolling interests							(173)	(173)
Acquisition of additional interest in subsidiary	(907)		(907)				(2,649)	(3,556)
Balance at Dec. 31, 2014	$ 154,112	$ 6	$ 179,912	$ 36,159	$ (33,661)	$ (28,304)	$ 8,674	$ 162,786
Balance (in shares) at Dec. 31, 2014		56,920						56,920
Balance (in shares) at Dec. 31, 2014						6,546		6,546

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net (loss) earnings	$ (9,616)	$ 3,551	$ (26,345)
Adjustments to reconcile net (loss) earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	9,823	10,756	12,430
Provision for bad debts	5,323	3,928	3,209
Interest accretion on term loan	15,526	7,955	1,520
Deferred tax (benefit) provision	(2,241)	(2,171)	5,256
Share based compensation	3,494	2,961	2,276
issuance of restricted stock			180
Changes in operating assets and liabilities (net of acquisitions in 2014 and 2013):
Restricted cash	286	3,822	(10,499)
Accounts receivable	(25,498)	(11,899)	(11,638)
Accounts receivable - affiliate	(3,501)	768	570
Prepaid expenses and other current assets	(3,832)	(2,116)	(1,515)
Income taxes receivable	1,216	(744)	(1,665)
Retainage receivable	(2,088)	2,734	488
Other assets	(449)	109	5,144
Accounts payable and accrued expenses	9,857	(3,387)	11,944
Income taxes payable	47	1,688	2,596
Deferred revenue	2,427	5,476	1,741
Other current liabilities	(2,921)	4,923	(428)
Retainage payable	1,440	(3,151)	(1,352)
Other liabilities	7,012	(3,770)	(383)
Net cash provided by (used in) operating activities	6,305	21,433	(6,471)
Cash flows from investing activities:
Purchase of business, net of cash acquired	(2,701)
Cash received in stock-based acquisitions		964
Payments for purchase of property and equipment	(5,721)	(3,764)	(2,377)
Distributions from affiliate		36	156
Sale of investment			3,149
Net cash (used in) provided by investing activities	(11,978)	(14,826)	928
Cash flows from financing activities:
Due to bank	(2)	(19)	(1,278)
Proceeds from secondary public offering of common stock	38,042
Proceeds from term loan borrowing	120,000		75,000
Payoff and termination of term loan	(100,000)
Payoff and termination of revolving credit facility	(25,500)
Payments on Engineering S.A. note payable		(5,095)
Payments on notes payable		(167)	(3,669)
Net (payments) borrowings on revolving loans	(14,133)	21,084	(56,497)
Dividends paid to noncontrolling interest	(173)		(1,439)
Proceeds from stock issued under employee stock purchase plan	197	138	105
Proceeds from exercise of stock options	1,032	20	24
Net cash provided by financing activities	9,398	15,961	8,917
Effect of exchange rate changes on cash	(3,982)	(8,903)	(4,582)
Net (decrease) increase in cash and cash equivalents	(257)	13,665	(1,208)
Cash and cash equivalents - beginning of year	30,381	16,716	17,924
Cash and cash equivalents - end of period	30,124	30,381	16,716
Term loan
Cash flows from financing activities:
Payments of financing fees	(10,065)
2012 Secured Term Loan
Cash flows from financing activities:
Payments of financing fees			$ (3,329)
Engineering S.A.
Cash flows from investing activities:
Purchase of additional interest in Engineering S.A.	$ (3,556)
Hill Spain
Cash flows from investing activities:
Payments for additional equity interests in Hill Spain		$ (12,062)

The Company	12 Months Ended
The Company	Dec. 31, 2014
The Company
The Company	Note 1—The Company Hill International, Inc. ("Hill" or the "Company") is a professional services firm that provides program management, project management, construction management, construction claims and other consulting services primarily to the buildings, transportation, environmental, energy and industrial markets worldwide. Hill's clients include the U.S. federal government, U.S. state and local governments, foreign governments and the private sector. The Company is organized into two key operating divisions: the Project Management Group and the Construction Claims Group.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2—Summary of Significant Accounting Policies

(a)	Basis of Presentation

The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States. The consolidated financial statements include the accounts of Hill International, Inc. and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

(b)	Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The estimates affecting the consolidated financial statements that are particularly significant include revenue recognition, allocation of purchase price to acquired intangibles and goodwill, recoverability of long-lived assets, income taxes, allowance for doubtful accounts and commitments and contingencies.

(c)	Foreign Currency Translations and Transactions

Assets and liabilities of all foreign operations are translated at year-end rates of exchange, and the statements of operations are translated at the average rates of exchange for the year. Gains or losses resulting from translating foreign currency financial statements are accumulated in a separate component of stockholders' equity entitled accumulated other comprehensive loss until the entity is sold or substantially liquidated.

Gains or losses from foreign currency transactions (transactions denominated in a currency other than the entity's local currency) are reflected in selling, general and administrative expenses in the consolidated statement of operations.

(d)	Fair Value of Financial Instruments

The fair value of financial instruments, which primarily consists of cash and cash equivalents, accounts receivable, accounts payable and due to bank, approximates carrying value due to the short-term nature of the instruments. The carrying value of our various credit facilities approximates fair value as the interest rate is variable. The term loan approximates fair value as the Company recently entered into that agreement.

(e)	Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and investments in money market funds and investment grade securities held with high quality financial institutions. The Company considers all highly liquid instruments purchased with a remaining maturity of three months or less at the time of purchase to be cash equivalents.

(f)	Restricted Cash

Restricted cash represents cash collateral required to be maintained in foreign bank accounts to serve as collateral for letters of credit, bonds or guarantees on several projects. The cash will remain restricted until the respective project has been completed, which typically is greater than one year.

(g)	Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and accounts receivable.

The Company maintains its cash accounts with high quality financial institutions. Although the Company currently believes that the financial institutions, with which it does business, will be able to fulfill their commitments to it, there is no assurance that those institutions will be able to continue to do so.

The Company provides professional services, under contractual arrangements, to domestic and foreign governmental units, institutions and the private sector. To reduce credit risk, the Company performs ongoing credit evaluations of its clients and does not require collateral beyond customary retainers.

At December 31, 2014, the accounts receivable related to the work performed prior to March 2011 under contracts in Libya, amounted to approximately $49,659,000. See Note 4 to the consolidated financial statements for further information.

The following tables show the number of the Company's clients which contributed 10% or more of revenue and accounts receivable, respectively:

	Years Ended December 31,
	2014			2013		2012
Number of 10% clients		1			—		—
Percentage of total revenue		10	%		N/A		N/A

	December 31,
	2014			2013
Number of 10% clients		1			1
Percentage of accounts receivable		20	%		25	%

The following provides information with respect to total revenue from contracts with U.S. federal government agencies:

		Years Ended December 31,
		2014			2013			2012
Percentage of total revenue			3	%		3	%		3	%


(h)	Allowance for Doubtful Accounts

The allowance for doubtful accounts is an estimate prepared by management based on identification of the collectibility of specific accounts and the overall condition of the receivable portfolios. When evaluating the adequacy of the allowance for doubtful accounts, the Company specifically analyzes trade receivables, including retainage receivable, historical bad debts, client credits, client concentrations, client credit worthiness, current economic trends and changes in client payment terms. If the financial condition of clients were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Likewise, should the Company determine that it would be able to realize more of its receivables in the future than previously estimated, an adjustment to the allowance would increase earnings in the period such determination was made. The allowance for doubtful accounts is reviewed on a quarterly basis and adjustments are recorded as deemed necessary.

(i)	Property and Equipment

Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is provided over the estimated useful lives of the assets as follows:

	Method	Estimated Useful Life
Furniture and equipment	Straight-line	10 years
Leasehold improvements	Straight-line	Shorter of estimated useful life or lease term
Computer equipment and software	Straight-line	3 to 5 years
Automobiles	Straight-line	5 years

The Company capitalizes costs associated with internally developed and/or purchased software systems that have reached the application development stage and meet recoverability tests. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software, payroll and payroll-related expenses for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Costs for general and administrative, overhead, maintenance and training, as well as the cost of software that does not add functionality to existing systems, are expensed as incurred.

Upon retirement or other disposition of these assets, the cost and related depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected in results of operations. Expenditures for maintenance, repairs and renewals of minor items are charged to expense as incurred. Major renewals and improvements are capitalized.

(j)	Retainage Receivable

Retainage receivable represents balances billed but not paid by clients pursuant to retainage provisions in the construction management contracts and will be due upon completion of specific tasks or the completion of the contract. The current portion of retainage receivable is included in accounts receivable and the long-term portion of retainage receivable is included in retainage receivable in the consolidated balance sheets.

(k)	Long-Lived Assets

Acquired intangible assets consist of contract rights, client related intangibles and trade names arising from the Company's acquisitions. Contract rights represent the fair value of contracts in progress and backlog of an acquired entity. For intangible assets purchased in a business combination, the estimated fair values of the assets are used to establish the cost bases. Valuation techniques consistent with the market approach, the income approach and the cost approach are used to measure fair value. These assets are amortized over their estimated lives which range from three to fifteen years.

The Company reviews long-lived assets to be held-and-used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset is less than its carrying amount, the asset is considered to be impaired. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flow discounted at a rate commensurate with the risks associated with the recovery of the asset. Assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.

(l)

Goodwill

Goodwill represents the excess of purchase price and other related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Acquired intangible assets other than goodwill are amortized over their useful lives. For intangible assets purchased in a business combination, the estimated fair values of the assets are used to establish the cost bases. Valuation techniques consistent with the market approach and the income approach are used to measure fair value.

Goodwill is tested annually for impairment in its fiscal third quarter. The Company has determined that it has two reporting units, the Project Management unit and the Construction Claims unit. The Company made that determination based on the similarity of the services provided, the methodologies in delivering our services and the similarity of the client base in each of these units. Goodwill is assessed for impairment using a two-step approach. In the first step of the impairment test, the Company compares the fair value of the reporting unit in which the goodwill resides to its carrying value. To the extent the carrying amount of a reporting unit exceeds its fair value, an indication exists that the reporting unit's goodwill may be impaired and the Company must perform a second more detailed assessment. The second step, if necessary, involves allocating the reporting unit's fair value to all of its recognized and unrecognized assets and liabilities in order to determine the implied fair value of the reporting unit's goodwill as of the assessment date. The implied fair value of the reporting unit's goodwill is then compared to the carrying amount of goodwill to quantify an impairment charge as of the assessment date.

Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, the useful life over which cash flows will occur, and determination of the Company's weighted average cost of capital. The Company's changes in estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. The Company performed its annual impairment test effective July 1, 2014 and noted no impairment for either of its reporting units. In the future, the Company will continue to perform the annual test during its fiscal third quarter unless events or circumstances indicate an impairment may have occurred before that time.

(m)	Investments

Hill International (Spain), S.A.

The Company's subsidiary, Hill International (Spain), S.A. ("Hill Spain"), has the following cost-basis investments:

•

Concessia, Cartera y Gestion de Infrastructuras, S.A. ("Concessia")—Hill Spain has made payments totaling $4,239,000 towards an initial 5.16% interest in this entity which invests in the equity of companies which finance, construct and operate various public and private infrastructure projects. The payments represented approximately 66% of Hill Spain's total required capital contribution. Hill Spain had accrued the remaining commitment of approximately $2,120,000 and had included that amount in the cost of the investment and in other liabilities in the accompanying consolidated balance sheet at December 31, 2012. During 2013, the aggregate capitalization of Concessia was reduced from approximately €93,000,000 to approximately €71,000,000. At that time, Hill Spain chose to reduce its total investment to a 4.45% interest and to distribute the excess 0.71% interest to the other shareholders of Concessia. Hill Spain has reduced both the cost of the investment and other liabilities by $2,120,000.

•

Nuevo Hospital de Burgos, S.A.—Hill Spain paid $3,761,000 for a 5.18% interest in this entity which, on completion of construction, will operate a new hospital in Burgos, Spain. On January 12, 2012 Hill Spain signed an agreement to sell its entire holding to its affiliate Concessia which is subject to the approval of the local authority, the owner of the facility and the financial institutions involved in the project. Hill Spain received a down payment of $3,149,000 and has accrued a receivable for $612,000. Although the final price is subject to certain conditions, the Company expects the investment to be fully recovered.

Other

The Company will, in the ordinary course, form joint ventures for specific projects. These joint ventures typically require limited or no investment and simply provide a pass-through for the Company's billings. Any distributions in excess of the Company's billings are accounted for as income when received.

(n)	Due to Bank

Under the Company's cash-management system, certain cash accounts reflect credit balances to the extent checks were disbursed but not immediately funded at the bank. The Company manages this process daily and ensures all checks are funded when presented.

(o)	Deferred Revenue

In certain instances the Company may collect advance payments from clients for future services. Upon receipt, the payments are reflected as deferred revenue in the Company's consolidated balance sheets. As the services are performed, the Company reduces the balance and recognizes revenue.

(p)	Deferred Rent

Rent expenses for operating leases which include scheduled rent increases is determined by expensing the total amount of rent due over the life of the operating lease on a straight-line basis. The difference between the rent paid under the terms of the lease and the rent expensed on a straight-line basis is recorded as a liability. The deferred rent at December 31, 2014 and 2013 was $2,968,000 and $3,043,000, respectively, and is included in other liabilities in the consolidated balance sheet.

(q)	Income Taxes

The Company estimates income taxes in each of the jurisdictions in which it operates. This process involves estimating its actual current tax exposure together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the Company's consolidated balance sheets. The Company assesses the likelihood that the deferred tax assets will be recovered from future taxable income and to the extent it believes recovery is not likely, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance in a period, it must include an expense within the tax provision in the consolidated statements of earnings. The Company has recorded a valuation allowance to reduce the deferred tax asset to an amount that is more likely to be realized in future years. If the Company determines in the future that it is more likely that the deferred tax assets subject to the valuation allowance will be realized, then the previously provided valuation allowance will be adjusted.

The Company recognizes a tax benefit in the financial statements for an uncertain tax position only if management's assessment is that the position is "more likely than not" (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term "tax position" refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods.

(r)	Revenue Recognition

The Company generates revenue primarily from providing professional services to its clients. Revenue is generally recognized upon the performance of services. In providing these services, the Company may incur reimbursable expenses, which consist principally of amounts paid to subcontractors and other third parties and travel and other job related expenses that are contractually reimbursable from clients. The Company has determined that it will include reimbursable expenses in computing and reporting its total revenue as long as the Company remains responsible to the client for the fulfillment of the contract and for the overall acceptability of all services provided.

The Company earns its revenue from time-and-materials, cost-plus and fixed-price contracts. If estimated total costs on any contract indicate a loss, the Company charges the entire estimated loss to operations in the period the loss becomes known. The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, incentive awards, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss are known and the loss can be reasonably estimated. Such revisions could occur at any time and the effects may be material.

Time-and-Materials Contracts

Under its time-and-materials contracts, the Company negotiates hourly billing rates and charges its clients based on the actual time that the Company spends on a project. In addition, clients reimburse the Company for its actual out-of-pocket costs of materials and other direct incidental expenditures that the Company incurs in connection with its performance under the contract. Its profit margins on time-and-materials contracts fluctuate based on actual labor and overhead costs that the Company directly charges or allocates to contracts compared with negotiated billing rates. Revenue on these contracts are recognized based on the actual number of hours the Company spends on the projects plus any actual out-of-pocket costs of materials and other direct incidental expenditures that the Company incurs on the projects. Its time-and-materials contracts generally include annual billing rate adjustment provisions.

Cost-Plus Contracts

The Company has two major types of cost-plus contracts:

Cost-Plus Fixed Fee

Under cost-plus fixed fee contracts, the Company charges its clients for its costs, including both direct and indirect costs, plus a fixed negotiated fee. In negotiating a cost-plus fixed fee contract, the Company estimates all recoverable direct and indirect costs and then adds a fixed profit component. The total estimated cost plus the negotiated fee represents the total contract value. The Company recognizes revenue based on the actual labor costs, based on hours of labor effort, plus non-labor costs the Company incurs, plus the portion of the fixed fee the Company has earned to date. The Company invoices for its services as revenue is recognized or in accordance with agreed-upon billing schedules. Aggregate revenue from cost-plus fixed fee contracts may vary based on the actual number of labor hours worked and other actual contract costs incurred. However, if actual labor hours and other contract costs exceed the original estimate agreed to by its client, the Company generally must obtain a change order, contract modification, or successfully prevail in a claim in order to receive additional revenue relating to the additional costs (see "Change Orders and Claims").

Cost-Plus Fixed Rate

Under its cost-plus fixed rate contracts, the Company charges clients for its costs plus negotiated rates based on its indirect costs. In negotiating a cost-plus fixed rate contract, the Company estimates all recoverable direct and indirect costs and then adds a profit component, which is a percentage of total recoverable costs to arrive at a total dollar estimate for the project. The Company recognizes revenue based on the actual total number of labor hours and other costs the Company expends at the cost plus the fixed rate the Company negotiated. Similar to cost-plus fixed fee contracts, aggregate revenue from cost-plus fixed rate contracts may vary and the Company generally must obtain a change order, contract modification, or successfully prevail in a claim in order to receive additional revenue relating to any additional costs that exceed the original contract estimate (see "Change Orders and Claims").

Labor costs and subcontractor services are the principal components of its direct costs on cost-plus contracts, although some include materials and other direct costs. Some of these contracts include a provision that the total actual costs plus the fee will not exceed a guaranteed price negotiated with the client. Others include rate ceilings that limit the reimbursement for general and administrative costs, overhead costs and materials handling costs. The accounting for these contracts appropriately reflects such guaranteed price or rate ceilings.

Firm Fixed-Price ("FFP") Contracts

The Company's FFP contracts have historically accounted for most of its fixed-price contracts. Under FFP contracts, the Company's clients pay an agreed amount negotiated in advance for a specified scope of work. The Company recognizes revenue on FFP contracts using the percentage-of-completion method (recognizing revenue as costs are incurred). Profit margins the Company recognizes in all periods prior to completion of the project on any FFP contract depend on the accuracy of the Company's estimates of approximate revenue and expenses and will increase to the extent that its current estimates of aggregate actual costs are below amounts previously estimated. Conversely, if the Company's current estimated costs exceed prior estimates, its profit margins will decrease and the Company may realize a loss on a project. In order to increase aggregate revenue on the contract, the Company generally must obtain a change order, contract modification, or successfully prevail in a claim in order to receive payment for the additional costs (see "Change Orders and Claims").

Change Orders and Claims

Change orders are modifications of an original contract that effectively change the provisions of the contract without adding new provisions. Either the Company or its client may initiate change orders. They may include changes in specifications or design, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Claims are amounts in excess of the agreed contract price that the Company seeks to collect from its clients or others for client-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes of unanticipated additional contract costs.

Change orders and claims occur when changes are experienced once contract performance is underway. Change orders are sometimes documented and terms of such change orders are agreed with the client before the work is performed. Sometimes circumstances require that work progresses before agreement is reached with the client. Costs related to change orders and claims are recognized when they are incurred. Change orders and claims are included in total estimated contract revenue when it is probable that the change order or claim will result in a bona fide addition to contract value that can be reliably estimated. No profit is recognized on claims until final settlement occurs; unapproved change orders are evaluated as claims. This can lead to a situation where costs are recognized in one period and revenue is recognized when client agreement is obtained or claims resolution occurs, which can be in subsequent periods.

The Company has contracts with the U.S. government that contain provisions requiring compliance with the U.S. Federal Acquisition Regulations ("FAR"). These regulations are generally applicable to all of its federal government contracts and are partially or fully incorporated in many local and state agency contracts. They limit the recovery of certain specified indirect costs on contracts subject to the FAR. Cost-plus contracts covered by the FAR provide for upward or downward adjustments if actual recoverable costs differ from the estimate billed under forward pricing arrangements. Most of its federal government contracts are subject to termination at the convenience of the client. Contracts typically provide for reimbursement of costs incurred and payment of fees earned through the date of such termination.

Federal government contracts which are subject to the FAR and some state and local governmental agencies require audits, which are performed for the most part by the Defense Contract Audit Agency ("DCAA"). The DCAA audits the Company's overhead rates, cost proposals, incurred government contract costs, and internal control systems. During the course of its audits, the DCAA may question incurred costs if it believes the Company has accounted for such costs in a manner inconsistent with the requirements of the FAR or Cost Accounting Standards and recommend that its U.S. government corporate administrative contracting officer disallow such costs. Historically, the Company has not experienced significant disallowed costs as a result of such audits. However, the Company can provide no assurance that the DCAA audits will not result in material disallowances of incurred costs in the future.

(s)	Share-Based Compensation

The Company uses the Black-Scholes option pricing model to measure the estimated fair value of options to purchase the Company's common stock. The compensation expense, less estimated forfeitures, is being recognized over the service period on a straight-line basis. The Company's policy is to use newly issued shares to satisfy the exercise of stock options.

(t)	Advertising Costs

Advertising costs are expensed as incurred and amounted to the following (in thousands):

Years Ended December 31,
2014		2013		2012
$	599	$	396	$	325

(u)	Earnings per Share

Basic earnings per common share has been computed using the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per common share incorporates the incremental shares issuable upon the assumed exercise of stock options using the treasury stock method.

Dilutive stock options increased average common shares outstanding by approximately 225,000 shares for the year ended December 31, 2013.

Options to purchase 3,521,000 shares, 5,364,000 shares and 4,492,000 shares of the Company's common stock were not included in the calculation of common shares outstanding for the years ended December 31, 2014, 2013 and 2012, respectively, because they were anti-dilutive.

(v)	New Accounting Pronouncement

On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP, including industry-specific guidance. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The ASU will be effective for interim and annual periods commencing after December 15, 2016 and allows for both retrospective and prospective methods of adoption. Early adoption is not permitted. The Company is in the process of determining the method of adoption and assessing the impact of this ASU on its consolidated financial statements.

Acquisitions	12 Months Ended
Acquisitions	Dec. 31, 2014
Acquisitions
Acquisitions	Note 3—Acquisitions Our recent acquisition activity is detailed below. The Company's consolidated financial statements include the operating results of these businesses from their respective dates of acquisition. Pro forma results of operations for these acquisitions have not been presented because they are not material to the Company's consolidated results of operations, either individually or in the aggregate. The Company expenses all acquisition-related costs plus any anticipated restructuring costs for which it is not obligated at the acquisition date, rather than including such costs as a component of the purchase consideration. During 2014, 2013 and 2012, the Company expensed $263,000, $455,000 and $84,000, respectively, of acquisition-related costs. Angus Octan Scotland Ltd. On October 31, 2014, our subsidiary Hill International (UK) Ltd. acquired all of the outstanding common stock of Angus Octan Scotland Ltd., which included its subsidiary companies Cadogan Consultants Ltd., Cadogan Consult Ltd. and Cadogan International Ltd. (collectively, "Cadogans"). Cadogans, with 27 professionals, has offices in Glasgow and Dundee. The acquisition expanded Hill's construction claims business and provided additional resources in the energy and industrial sectors. Total consideration for the acquisition was £2,719,000 (approximately $4,350,000 at the date of acquisition). The consideration consists of cash payments of £1,000,000 ($1,600,000) at closing, £600,000 ($960,000) on November 25, 2014, £400,000 ($640,000) on December 23, 2014, £519,000 ($830,000) to be paid on October 31, 2015 and an earn-out based upon the average earnings before interest, taxes, depreciation and amortization ("EBITDA") for the two-year period ending on October 31, 2016 (which amount shall not be less than £0 nor more than £200,000). Two of the selling shareholders may receive an earn-out in five annual installments of up to £100,000 each ($160,000), which will be charged to earnings, provided that Cadogans' EBITDA for each of the years ending October 31, 2015, 2016, 2017, 2018 and 2019 is equal to or greater than £396,000 ($633,000). The Company accrued the potential additional consideration of £719,000 ($1,150,000), of which £519,000 is included in other current liabilities and £200,000 is included in other liabilities in the consolidated balance sheet at December 31, 2014. The Company acquired intangible assets and goodwill amounting to £1,353,000 (approximately $2,165,000 on the date of acquisition) and £541,000 (approximately $865,000), respectively. The acquired intangible assets have a weighted average life of 8.9 years. The acquired intangible assets consist of a client relationship intangible of £1,181,000 ($1,890,000) with a ten-year life, a trade name intangible of £82,000 ($131,000) with a two-year life and a contract intangible of £90,000 ($144,000) with a six-month life. Goodwill, which is not deductible for income tax purposes, has been allocated to the Construction Claims operating segment. Collaborative Partners, Inc. On December 23, 2013, Hill acquired all of the outstanding common stock of Collaborative Partners, Inc. ("CPI"), a firm that provides project management, strategic planning and regulatory services for healthcare, life sciences, educational, commercial and residential construction projects throughout New England. CPI, which has about 30 professionals, has offices in Boston, Massachusetts and Providence, Rhode Island. The acquisition expands the Company's project management business in the New England region of the United States. At closing, the sellers received $2,450,000 in the form of 678,670 shares of the Company's common stock priced at $3.61 per share. On March 7, 2014, the sellers received 171,308 shares of common stock with a value of $618,000 representing CPI's common equity in excess of $600,000. On December 23, 2014, the sellers were to receive, subject to potential offset, an additional $350,000 ("holdback") in shares of common stock; the number of shares was determined based on the average closing price of the common stock for the ten trading days ending on December 18, 2014. The Agreement also provided that should the price of the Company's common stock not increase by 50% to $5.42 on December 23, 2014, the Company will issue additional shares to the sellers representing the difference between $5.42 and the price on December 23, 2014 and (2) the sellers are entitled to receive additional shares of the Company's common stock for (i) 50% of the operating profit of CPI in excess of $1,000,000 for the first 12-month period after closing, but in no event more than $500,000, and (ii) 5% of the net revenue backlog in excess of $10,000,000 on the date 60 days after closing. The Company estimated and accrued $2,697,000 for the potential additional consideration which was included in other current liabilities in the consolidated balance sheet at December 31, 2013. In April 2014, the portion of the liability attributable to the change in the common stock price was waived by the sellers and the liability was eliminated by a credit of $1,225,000 to selling, general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2014. In addition, a portion of the liability attributable to the holdback in shares was not paid and $215,000 was credited to selling, general and administrative expense in the consolidated statement of operations for the year ended December 31, 2014. In the first quarter of 2015, the Company will settle the amounts due for the holdback, the excess operating profit and backlog by issuing 148,460 shares of its common stock valued at approximately $530,000. Binnington Copeland & Associates (Pty.) Ltd. On May 30, 2013, Hill International N.V., the Company's wholly-owned subsidiary, acquired all of the outstanding common stock of Binnington Copeland & Associates (Pty.) Ltd. and BCA Training (Pty.) Ltd. (together "BCA"). BCA, with 34 professionals, has offices in Johannesburg and Cape Town, South Africa. The acquisition provides the Company's claims business access to Africa's large infrastructure and mining projects and allows for expansion into the rest of sub-Saharan Africa. Consideration consisted of $2,000,000 plus a potential earn-out, both payable in shares of the Company's common stock. The purchase price is payable as follows: $1,072,400 (the "Closing Date Payment") on the closing date, $927,600 (the "Second Tranche Payment") on July 31, 2013 and an earn-out (the "Third Tranche Payment") to be determined in the third quarter of 2014. The Company issued 379,655 shares of its common stock in satisfaction of the Closing Date Payment; the number of shares was determined by dividing the Closing Date Payment by the average closing price of our common stock for the thirty trading days ending on May 17, 2013. On July 31, 2013, the Company issued 331,444 shares of its common stock in satisfaction of the Second Tranche Payment. The number of shares was determined by dividing the Second Tranche Payment by the average closing price of our common stock for the thirty trading days ending on July 19, 2013. The shares issuable in satisfaction of the Third Tranche Payment will be determined by dividing the Third Tranche Payment by the average closing price of our common stock for the thirty trading days ending on July 21, 2014. The actual amount of the Third Tranche Payment will be determined by comparing the average net profit before taxes for the two-year periods ending July 31, 2014 to the net profit before taxes for the year ended July 31, 2012, and multiplying the excess, if any, by 2.205. BCA's average net profit before taxes for the two years ended July 31, 2014 was not sufficient to earn any of the Third Tranche payment, which had been estimated to be approximately $902,000 at the date of acquisition. Since no amount is due to the selling shareholders, the liability has been eliminated by a credit of $893,000 to selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2014. Engineering S.A. On February 28, 2011, the Company's subsidiary, Hill Spain, indirectly acquired 60% of the outstanding common stock of Engineering S.A., one of the largest project management firms in Brazil with approximately 400 professionals. It has main offices in Rio de Janeiro and Sao Paulo and an additional office in Parauapebas. Engineering S.A. provides project management, construction management and engineering consulting services throughout Brazil. Total consideration will not exceed 42,000,000 Brazilian Reais ("BR") (approximately $25,336,000 at the date of acquisition) consisting of an initial cash payment of BR22,200,000 (approximately $13,392,000) plus minimum additional payments of BR7,400,000 (approximately $4,464,000) due on each of April 30, 2012 and 2013 and a potential additional payment of BR5,000,000 ($3,016,000). The Company acquired intangible assets and goodwill amounting to BR24,540,000 ($14,783,000) and BR46,339,000 ($27,987,000), respectively. The acquired intangible assets have a weighted average life of 7.7 years. The acquired intangible assets consist of a client relationship intangible of BR13,942,000 ($8,399,000) with a ten-year life, a contract intangible of BR8,385,000 ($5,051,000) with a two-year life and a trade name intangible of BR2,213,000 ($1,333,000) with a fifteen-year life. Goodwill, which is deductible for income tax purposes, has been allocated to the Project Management operating segment. Also, ESA's shareholders entered into an agreement whereby the minority shareholders have a right to compel ("ESA Put Option") Hill Spain to purchase any or all of their shares during the period from February 28, 2014 to February 28, 2021. Hill Spain also has the right to compel ("ESA Call Option") the minority shareholders to sell any or all of their shares during the same time period. The purchase price for such shares shall be seven times the earnings before interest and taxes for ESA's most recently ended fiscal year, net of any financial debt plus excess cash multiplied by a percentage which the shares to be purchased bear to the total number of shares outstanding at the time of purchase, but in the event the ESA Call Option is exercised by Hill Spain, the purchase price shall be increased by five percent. The ESA Put Option and the ESA Call Option must be made within three months after the audited financial statements of ESA have been completed. In April 2014, two of the minority shareholders exercised their ESA Put Option whereby Hill Spain paid approximately 7,838,000 Brazilian Reais (approximately $3,556,000) in October 2014. After the transaction, Hill Spain owns approximately 72% of ESA. In accordance with the guidance in ASC 810-10-45-23, under Changes in the Parent's Ownership Interest in a Subsidiary When There Is No Change in Control, the Company has accounted for this transaction as an equity transaction. Accordingly, Hill Spain reduced noncontrolling interests by 5,839,000 Brazilian Reais (approximately $2,649,000), and reduced additional paid in capital by approximately 1,999,000 Brazilian Reais (approximately $907,000) which represents the excess of the fair value over the amount of the adjustment to noncontrolling interests. The Company estimated the fair value of the potential additional payments to total approximately BR17,200,000 (approximately $10,376,000) and has discounted these amounts using an interest rate of 4.72%, the weighted average interest rate on the outstanding borrowings under the Company's credit agreement at the acquisition date. The Company paid the first installment amounting to 6,624,000 BRL (approximately $3,508,000 on April 30, 2012 and paid the second installment amounting to 11,372,000 BRL (approximately $5,095,000) on July 23, 2013. Gerens Management Group, S.A. On February 15, 2008, the Company's subsidiary, Hill International N.V. (formerly Hill International S.A.), acquired 60% of the outstanding capital stock of Gerens Management Group, S.A., whose name was subsequently changed to Hill International (Spain), S.A. ("Hill Spain"). In connection with the acquisition, Hill Spain's shareholders entered into an agreement whereby the minority shareholders have a right to compel ("Gerens Put Option") Hill International N.V. to purchase any or all of their shares during the period from March 31, 2010 to March 31, 2020. Hill International N.V. also has the right to compel the minority shareholders to sell any or all of their shares during the period from March 31, 2011 to March 31, 2021. The purchase price for such shares shall be the greater of (a) €18,000,000 ($23,808,000 as of December 31, 2012) increased by the General Price Index (capped at 3.5% per annum) or (b) ten times Hill Spain's earnings before interest and income taxes for the prior fiscal year, multiplied by a percentage which the shares to be purchased bear to the total number of shares outstanding at the time of purchase. Such amount may be adjusted for increases in equity subsequent to the acquisition date, and can be paid in cash or shares of our common stock at the option of the sellers. During late 2011 through late 2012, ten minority shareholders, who owned approximately 23.9% of the outstanding common stock of Hill Spain, exercised their Gerens Put Options. On January 3, 2013, the Company paid for the additional interest by paying approximately €7,166,000 (approximately $9,477,000) including interest of approximately €115,000 (approximately $152,000) which was charged to interest expense in the consolidated statement of operations for the year ended December 31, 2012. In connection with the transactions, the Company reduced noncontrolling interests by €2,717,000 (approximately $3,594,000), increased goodwill by €1,300,000 (approximately $1,720,000) and increased intangible assets by €4,334,000 (approximately $5,580,000) during 2012. During 2013, the remaining minority shareholders, who owned approximately 6.8% of the outstanding common stock of Hill Spain, exercised their Gerens Put Options. The Company now owns 100% of Hill Spain. The aggregate consideration plus interest was paid on December 4, 2013 in the amount of €2,031,000 (approximately $2,793,000). The balance included interest of approximately €42,000 (approximately $56,000). In connection with the transactions, the Company reduced noncontrolling interests by €828,000 (approximately $1,094,000), increased goodwill by €348,000 (approximately $460,000) and increased intangible assets by approximately €1,161,000 (approximately $1,534,000).

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details

Accounts Receivable

12 Months Ended

Dec. 31, 2014

Accounts Receivable.

Accounts Receivable

Note 4—Accounts Receivable

The components of accounts receivable are as follows:

	December 31,
	2014			2013
	(in thousands)
Billed	$	159,959		$	206,469
Retainage, current portion		12,700			10,215
Unbilled		32,739			24,857

		205,398			241,541
Allowance for doubtful accounts		(11,142	)		(9,530	)

Total	$	194,256		$	232,011

Unbilled receivables primarily represent revenue earned on contracts, which the Company is contractually precluded from billing until predetermined future dates.

Included in billed receivables are $1,562,000 and $2,030,000 of the amounts due from various branches of the U.S. federal government and $100,773,000 and $99,643,000 of receivables from foreign governments at December 31, 2014 and December 31, 2013, respectively.

Bad debt expense of $5,323,000, $3,928,000 and $3,209,000 is included in selling, general and administrative expenses in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012, respectively.

The Company has open but inactive contracts with the Libyan Organization for the Development and Administrative Centres ("ODAC"). Due to the civil unrest which commenced in Libya in February 2011, the Company suspended its operations in and demobilized substantially all of its personnel from Libya. From that time until 2013, there was no activity on the contracts and the Company did not receive any payments for the work performed prior to March 2011. During late 2013 and early 2014, Hill received payments of approximately $9,900,000 from ODAC who also posted a letter of credit of approximately $14,000,000 in Hill's favor which expired on June 30, 2014. Management believed that this progress was a positive indication that ODAC intended to fulfill its obligations to Hill.

In June 2014, a new parliament, the Council of Representatives ("CoR"), was elected and is the internationally recognized government of Libya. Subsequently, fighting broke out between forces loyal to the outgoing General National Congress ("GNC") and the new CoR. The GNC reconvened, selected a Prime Minister and seized control of the capital city of Tripoli. The GNC controls Libya's ministries, central bank and state oil company. In September 2014, the United Nations began talks to reconcile the two factions, but management is not aware that any progress has been made as of February 2015. It is our understanding that, government agencies such as ODAC have not been delegated any authority to make payments other than payroll.

Management has continued its dialogue with representatives of ODAC and understands that ODAC has obtained approval to facilitate immediate payment to Hill once the political situation normalizes. Additionally, in early 2014, Hill submitted new contracts for additional work upon ODAC's request.

The Company currently believes that recovery of its receivable from ODAC through continued communications, rather than legal action, remains appropriate, however, the Company continues to explore its legal options, including discussions with outside legal counsel. In the event that the military and political environment changes significantly in Libya and its surrounding geopolitical regions or there are indications that the Company's continued efforts to negotiate amicably with ODAC are determined have been unsuccessful, the Company will evaluate its options to pursue legal claims and/or assess the carrying amount of this receivable, which could have a significant adverse impact on our consolidated results of operations and consolidated financial position.

Currently, management believes that it has good relationships with the ODAC authorities. However due to the lack of a written agreement or timetable for further payments of Hill's accounts receivable from ODAC or a return to work on Hill's existing contracts, management has reclassified the remaining accounts receivable amounting to $49,659,000 to a non-current asset to reflect the uncertainty surrounding the timing of the collection of the receivable. Additionally, management has reclassified from current to other liabilities the accruals for certain taxes and agency fees related to the ODAC contracts amounting to approximately $9,280,000.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Property and Equipment

12 Months Ended

Dec. 31, 2014

Property and Equipment

Property and Equipment

Note 5—Property and Equipment

	December 31,
	2014			2013
	(in thousands)
Furniture and equipment	$	12,163		$	11,190
Leasehold improvements		4,196			3,965
Automobiles		1,696			1,576
Computer equipment and software		24,088			22,656

		42,143			39,387
Less accumulated depreciation and amortization		(30,500	)		(28,774	)

Property and equipment, net	$	11,643		$	10,613

Information with respect to depreciation expense is as follows:

	Years Ended December 31,
	2014		2013		2012
	(in thousands)
Total depreciation expense	$	3,643	$	4,166	$	4,394


Portion charged to cost of services	$	1,293	$	1,227	$	1,350


Portion charged to selling, general and administrative expense	$	2,350	$	2,939	$	3,044

Intangible Assets

12 Months Ended

Dec. 31, 2014

Intangible Assets

Intangible Assets

Note 6—Intangible Assets

The following table summarizes the Company's acquired intangible assets:

	December 31,
	2014				2013
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(in thousands)
Client relationships	$	36,412	$	20,758	$	37,501	$	18,238
Acquired contract rights		11,387		9,717		11,874		8,541
Trade names		3,023		1,065		3,266		898

Total	$	50,822	$	31,540	$	52,641	$	27,677


Intangible assets, net	$	19,282			$	24,964

Amortization expense related to intangible assets was as follows:

Years Ended December 31,
2014		2013		2012
(in thousands)
$	6,180	$	6,590	$	8,036

The following table presents the estimated amortization expense based on our present intangible assets for the next five years:

Years Ending December 31,	Estimated Amortization Expense
	(in thousands)
2015	$	5,485
2016		4,014
2017		3,005
2018		2,041
2019		1,760

Goodwill

12 Months Ended

Dec. 31, 2014

Goodwill

Goodwill

Note 7—Goodwill

The addition to goodwill in 2013 is due to the acquisitions of BCA ($1,285,000) and CPI ($3,049,000) and the impact of deferred income taxes on the intangible assets acquired in the purchase of an additional equity interest in Hill Spain ($460,000).

The addition to goodwill in 2014 is due to the acquisition of Cadogans ($865,000).

The following table summarizes the changes in the Company's carrying value of goodwill during 2014 and 2013:

	Project Management			Construction Claims			Total
	(in thousands)
Balance, December 31, 2012	$	57,231		$	26,776		$	84,007
Additions		3,509			1,285			4,794
Translation adjustments		(2,292	)		(656	)		(2,948	)

Balance, December 31, 2013		58,448			27,405			85,853
Additions		—			865			865
Translation adjustments		(4,779	)		(1,502	)		(6,281	)

Balance, December 31, 2014	$	53,669		$	26,768		$	80,437

Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2014

Accounts Payable and Accrued Expenses

Accounts Payable and Accrued Expenses

Note 8—Accounts Payable and Accrued Expenses

Below are the components of accounts payable and accrued expenses:

	December 31,
	2014		2013
	(in thousands)
Accounts payable	$	32,701	$	25,349
Accrued payroll and related expenses		39,845		35,732
Accrued subcontractor fees		3,930		6,212
Accrued agency fees		6,920		17,623
Accrued legal and professional fees		968		1,239
Other accrued expenses		7,704		6,115

	$	92,068	$	92,270

Approximately $9,280,000 of agency fees and other accrued expenses related to the ODAC contracts have been reclassified to other liabilities as of December 31, 2014. See Note 4 for further information.

Notes Payable and Long-Term Debt

12 Months Ended

Dec. 31, 2014

Notes Payable and Long-Term Debt

Notes Payable and Long-Term Debt

Note 9—Notes Payable and Long-Term Debt

Outstanding debt obligations are as follows:

	December 31,
	2014		2013
	(in thousands)
2014 Term Loan Facility	$	119,700	$	—
2012 Term Loan Payable		—		84,474
2009 Revolving credit loan payable under the Credit Agreement (the weighted average interest rate of all borrowings was 5.32% at December 31, 2013		—		39,000
2014 Domestic Revolving Credit Facility		200
2014 International Revolving Credit Facility		2,554
Borrowings under revolving credit facilities with a consortium of banks in Spain		5,037		7,670
Borrowings under unsecured credit facility with Ibercaja Bank in Spain		745		2,047
Other notes payable		—		68

		128,236		133,259
Less current maturities		6,361		18,974

Notes payable and long-term debt, net of current maturities	$	121,875	$	114,285

Refinancing

On June 12, 2014, the Company and its subsidiary Hill International N.V. (the "Subsidiary") entered into a Commitment Letter with Société Générale (the "Agent") and SG Americas Securities, LLC, (the "Arranger") pursuant to which the Arranger and the Agent committed to provide secured debt facilities to the Company in an aggregate principal amount of $165,000,000 which would be used to payoff and terminate the Company's then-existing senior credit facility with a bank group led by Bank of America, N.A. and its then-existing second lien term loan with funds managed by Tennenbaum Capital Partners, LLC.

Effective as of September 26, 2014 (the "Closing Date"), the Company, entered into a credit agreement with the Agent as administrative agent and collateral agent, TD Bank, N.A., as syndication agent and HSBC Bank USA, N.A., as documentation agent, (collectively, the "U.S. Lenders") consisting of a term loan facility of $120,000,000 (the "Term Loan Facility") and a $30,000,000 U.S. dollar-denominated facility available to the Company (the "U.S. Revolver," together with the Term Loan Facility, the "U.S. Credit Facilities") and a credit agreement with the Agent as administrative agent and collateral agent, (the "International Lender") providing a $15,000,000 Euro-denominated facility available to the Subsidiary (the "International Revolver" and together with the U.S. Revolver, the "Revolving Credit Facilities" and, together with the U.S. Credit Facilities, the "Secured Credit Facilities"). The U.S. Revolver and the International Revolver include sub-limits for letters of credit amounting to $25,000,000 and $10,000,000, respectively.

The Secured Credit Facilities contain customary default provisions, representations and warranties, and affirmative and negative covenants, and require the Company to comply with certain financial and reporting covenants. The financial covenants consist of a Maximum Consolidated Net Leverage Ratio and an Excess Account Concentration requirement commencing on December 31, 2014. The Consolidated Net Leverage Ratio is the ratio of (a) consolidated total debt (minus cash of up to $10,000,000 held in the aggregate) to consolidated earnings before interest, taxes, depreciation, amortization and share-based compensation for the trailing twelve months. The Excess Account Concentration covenant permits the U. S. Lenders and the International Lender to increase the interest rates by 2.0% if, as of the last day of any fiscal quarter, either (a) the accounts receivable from any country not listed as a Permitted Country as defined in the Secured Credit Facilities (other than the United Arab Emirates) that are more than 120 days old (relative to the invoice date) constitute more than 10% of the total outstanding accounts receivable or (b) accounts receivable from any individual client located in the United Arab Emirates that are more than 120 days old (relative to the invoice date) constitute more than 14% of the total outstanding accounts receivable; provided that, in each case, the accounts receivable due from clients located in Libya that exist as of the Closing Date shall be excluded for all purposes of this covenant. The interest rate will be reset as soon as the accounts receivable over 120 days decline below the 10% or 14% levels. At December 31, 2014, no client's accounts receivable exceeded the proscribed limits.

The following tables set forth the Maximum Consolidated Net Leverage Ratio requirements for all reporting periods and the Company's actual ratio at December 31, 2014:

Period ending	Not to exceed		Actual
December 31, 2014		3.50		3.10
March 31, 2015		3.50
June 30, 2015		3.50
September 30, 2015		3.25
December 31, 2015		3.25
March 31, 2016		3.00
June 30, 2016		3.00
September 30, 2016		2.75
December 31, 2016		2.75
March 31, 2017		2.50
June 30, 2017		2.50
September 30, 2017		2.25
December 31, 2017		2.25
March 31, 2018		2.00
June 30, 2018		2.00
September 30, 2018		2.00
December 31, 2018		2.00
Thereafter		1.75

The U.S. Credit Facilities are guaranteed by certain U.S. subsidiaries of the Company, and the International Revolver is guaranteed by the Company and certain of the Company's U.S. and non-U.S. subsidiaries.

In connection with the Refinancing, the Company wrote off deferred financing fees amounting to $1,482,000 by a charge to interest expense and related financing fees, net for the year ended December 31, 2014.

Term Loan Facility

The Company used the proceeds from the Term Loan Facility:

•

for consummating the payoff and termination of the Company's then-existing credit arrangements (the "Refinancing") which consist of the Credit Agreement, dated as of October 18, 2012, among the Company, certain lenders and Obsidian Agency Services, Inc., as amended (the "2012 Term Loan Agreement"), and the Credit Agreement, dated as of June 30, 2009, among the Company, Bank of America, N.A. and certain other lenders, as amended; and

•

to pay fees and expenses incurred in connection with the Secured Credit Facilities.

The interest rate on the Term Loan Facility will be, at the Company's option, either:

•	the London Inter-Bank Offered Rate ("LIBOR") for the relevant interest period plus 6.75% per annum, provided that such LIBOR shall not be lower than 1.00% per annum; or
•	the Base Rate (as described below) plus 5.75% per annum.

The "Base Rate" is a per annum rate equal to the highest of (A) the prime rate, (B) the federal funds effective rate plus 0.50%, or (C) the LIBOR for an interest period of one month plus 1.0% per annum. Upon a default, the applicable rate of interest under the Secured Credit Facilities may increase by 2.0%. The LIBOR on the Term Loan Facilities (including when determining the Base Rate) shall in no event be less than 1.0% per annum.

The Company has the right to prepay the Term Loan Facility in full or in part at any time without premium or penalty; provided, however that upon the occurrence of prepayments relating to certain repricing transactions within the first year following closing, a 1.0% prepayment premium will be payable. The Company is required to make mandatory prepayments of the Term Loan Facility, without premium or penalty, (i) with net proceeds of any issuance or incurrence of indebtedness by the Company after the closing, (ii) with net proceeds from certain asset sales outside the ordinary course of business, and (iii) with 50% of the excess cash flow (as defined in the agreement) for each fiscal year of the Borrowers commencing with the first full fiscal year ending after closing (which percentage would be reduced to 25% if the Consolidated Net Leverage Ratio is equal to or less than 2.25 to 1.00 or reduced to 0% if the Consolidated Net Leverage Ratio is equal to or less than 1.50 to 1.00).

The Term Loan Facility is generally secured by a first-priority security interest in substantially all assets of the Company and certain of the Company's U.S. subsidiaries other than accounts receivable, cash proceeds thereof and certain bank accounts, as to which the Term Loan Facility is secured by a second-priority security interest.

The Term Loan Facility has a term of six years, requires repayment of 0.25% of the original principal amount on a quarterly basis commencing on December 31, 2014 and ending on September 30, 2020, and was fully funded at closing. Any amounts repaid on the Term Loan Facility will not be available to be re-borrowed.

The Company incurred fees and expenses related to the Term Loan Facility aggregating $7,066,000 which has been deferred and the unamortized balance is included in other assets in the consolidated balance sheet at December 31, 2014. The deferred fees are being amortized to interest and related financing fees, net over a six-year period which commenced on October 1, 2014.

Revolving Credit Facilities

The Company is required to use the proceeds from the Revolving Credit Facilities:

•	for the Refinancing;
•	to finance the working capital needs and general corporate purposes of the Borrowers and their subsidiaries;
•	to pay fees and expenses incurred in connection with the Secured Credit Facilities; and
•	for any other purposes not prohibited by the Secured Credit Facilities.

The interest rate on borrowings under the U.S. Revolver will be, at the Company's option from time to time, either the LIBOR for the relevant interest period plus 3.75% per annum or the Base Rate plus 2.75% per annum.

The interest rate on borrowings under the International Revolver will be the European Inter-Bank Offered Rate, or "EURIBOR," for the relevant interest period (or at a substitute rate to be determined to the extent EURIBOR is not available) plus 4.00% per annum.

The Company will pay a commitment fee calculated at 0.50% annually on the average daily unused portion of the U.S. Revolver, and the Subsidiary will pay a commitment fee calculated at 0.75% annually on the average daily unused portion of the International Revolver.

The ability to borrow under each of the U.S. Revolver and the International Revolver is subject to a "borrowing base," calculated using a formula based upon approximately 85% of receivables that meet or satisfy certain criteria ("Eligible Receivables") and that are subject to a perfected security interest held by either the U.S. Lenders or the International Lender, plus, in the case of the International Revolver only, 10% of Eligible Receivables that are not subject to a perfected security interest held by the International Lender, subject to certain exceptions and restrictions.

The Company or the Subsidiary, as applicable, will be required to make mandatory prepayments under their respective Revolving Credit Facilities to the extent that the aggregate outstanding amount thereunder exceeds the then-applicable borrowing base, which payments will be made without penalty or premium. At December 31, 2014, the domestic borrowing base was $28,975,000 and the international borrowing base was $15,000,000.

Generally, the obligations of the Company under the U.S. Revolver are secured by a first-priority security interest in the above-referenced accounts receivable, cash proceeds and bank accounts of the Company and certain of the Company's U.S. subsidiaries, and a second-priority security interest in substantially all other assets of the Company and such subsidiaries. The obligations of the Subsidiary under the International Revolver would generally be secured by a first-priority security interest in substantially all accounts receivable, cash proceeds thereof and certain bank accounts of the Subsidiary and certain of the Company's non-U.S. subsidiaries, and a second-priority security interest in substantially all other assets of the Company and certain of the Company's U.S. and non-U.S. subsidiaries.

The Revolving Credit Facilities have a term of five years and require payment of interest only during the term. Under the Revolving Credit Facilities, outstanding loans may be repaid in whole or in part at any time, without premium or penalty, subject to certain customary limitations, and will be available to be re-borrowed from time to time.

The Company incurred fees and expenses related to the Revolving Credit Facilities aggregating $2,300,000 which has been deferred and the unamortized balance is included in other assets in the consolidated balance sheet at December 31, 2014. The deferred fees are being amortized to interest expense and related financing fees, net over a five-year period which commenced on October 1, 2014.

At December 31, 2014, the Company had $16,836,000 of outstanding letters of credit and $11,939,000 of available borrowing capacity under the U.S. Revolver.

At December 31, 2014, the Company had $6,722,000 of outstanding letters of credit and $10,086,000 of available borrowing capacity under the International Revolver and its other foreign credit agreements (See "Other Debt Arrangements" below for more information).

2012 Term Loan Agreement

The Company entered into a Term Loan Agreement on October 18, 2012, which was amended from time to time. Borrowings under the 2012 Term Loan Agreement were collateralized by a second lien on substantially all of the Company's assets, including, without limitation, accounts receivable, equipment, securities, financial assets and the proceeds of the foregoing, as well as by a pledge of 65% of the outstanding capital stock of its wholly-owned foreign subsidiary, Hill International N.V., and of certain of its other foreign subsidiaries. The maturity date of the Term Loan was scheduled for October 18, 2016.

The Company paid interest on amounts outstanding at a rate per annum equal to 7.50%.

Also, contemporaneous with its entry into the 2012 Term Loan Agreement, the Company entered into a Fee Letter. The Fee Letter required the Company to pay to the Lenders an exit fee (the "Exit Fee"), which fee was earned in full on the Closing Date and was due and payable on September 26, 2014, the date the 2012 Term Loan was paid in full (the "Exit Date"). The Exit Fee meant the amount, if any, when paid to the Term Loan Lenders on the Exit Date, that would result in the internal annual rate of return to the Term Loan Lenders on the Exit Date being equal to, but no greater than, 20%; provided that in no event would the Exit Fee amount be less than $0 or greater than $11,790,000. The IRR was to be calculated as the rate of return earned by the Term Loan Lenders on their initial investment in the 2012 Term Loan (calculated as the principal amount of the Term Loan less the Closing Fee of $25,000,000, or $75,000,000) through the Exit Date taking into account the payment by the Company to the Term Loan Lenders of all principal, interest and other payments to the Term Loan Lenders pursuant to the 2012 Term Loan Agreement. There was no Exit Fee payable upon the payoff and termination of the Term Loan.

On August 6, 2014, the Company made a mandatory principal prepayment of $9,522,000 from funds received in the equity offering. On September 26, 2014, the Company paid $90,478,000 (including accelerated principal of $9,338,000 which was charged to interest expense and related financing fees, net for the year ended December 31, 2014), plus interest of $1,659,000, to payoff and terminate the Term Loan.

2009 Revolving Credit Agreement

The Company entered into a Credit Agreement, dated June 30, 2009 (the "2009 Revolving Credit Agreement"), with Bank of America, N.A., Capital One, N.A., The PrivateBank and Trust Company, PNC Bank N.A. (the "Lenders"), and Bank of America, N.A., as Administrative Agent which was amended from time to time.

The maturity date of the 2009 Revolving Credit Agreement was scheduled for March 31, 2015. On September 26, 2014, the Company paid $25,500,000 (including $9,522,000 from funds received in the equity offering, plus interest of $420,000, to payoff and terminate the 2009 Revolving Credit Agreement.

Other Debt Arrangements

The Company's subsidiary, Hill International (Spain) S.A. ("Hill Spain"), maintains a revolving credit facility with six banks (the "Financing Entities") in Spain which initially provided for total borrowings of up to €5,640,000 with interest at 6.50% on outstanding borrowings. The original available amount was reduced to approximately 75.0% at December 31, 2014 and will be reduced to 50.0% at December 31, 2015. Additionally, the availability is reduced by €15,000 on a quarterly basis. At December 31, 2014, the total facility was approximately €4,170,000 (approximately $5,071,000) and borrowings outstanding were €4,142,000 (approximately $5,037,000). The amount being financed ("Credit Contracts") by each Financing Entity varies from €284,000 (approximately $346,000) and €1,319,000 (approximately $1,604,000). To guarantee Hill Spain's obligations resulting from the Credit Contracts, Hill Spain provided a guarantee in favor of each one of the Financing Entities and, additionally, and solely in the case of unremedied failure to make payment, and at the request of each of the Financing Entities, shall grant a first ranking pledge over a given percentage of corporate shares of Hill International Brasil Participacoes Ltda. for the principal, interest, fees, expenses or any other amount owed by virtue of the Credit Contracts, coinciding with the percentage of credit of each Financing entity with respect to the total outstanding borrowings under this facility. The facility expires on December 17, 2016.

Hill Spain maintains an unsecured credit facility with the Ibercaja Bank in Spain for €700,000 (approximately $851,000) at December 31, 2014. The availability will be reduced by €175,000 on a quarterly basis commencing on March 31, 2015. The interest rate at December 31, 2014 was 6.75%. At December 31, 2014, this facility had total borrowings outstanding of €613,000 (approximately $745,000). The facility expires on December 31, 2015.

The Company maintains a credit facility with the National Bank of Abu Dhabi which provides for total borrowings of up to AED 11,500,000 (approximately $3,131,000 at December 31, 2014) collateralized by certain overseas receivables. The interest rate is the one-month Emirates InterBank Offer Rate plus 3.00% (or 4.48% at December 31, 2014) but no less than 5.50%. At December 31, 2014, there were no borrowings outstanding. This facility also allows for to AED 127,033,000 (approximately $34,589,000 at December 31, 2014) in Letters of Guarantee of which AED 116,506,000 (approximately $31,741,000) were utilized at December 31, 2014. This facility is being renewed on a month-to-month basis. The Company is in the process of negotiating a new credit facility.

Engineering S.A. maintains three unsecured revolving credit facilities with two banks in Brazil aggregating 2,900,000 Brazilian Reais (approximately $1,091,000 at December 31, 2014), with a weighted average interest rate of 3.99% per month at December 31, 2014. There were no borrowings outstanding on any of these facilities which are renewed automatically every three months.

The Company also maintains relationships with other foreign banks for the issuance of letters of credit, letters of guarantee and performance bonds in a variety of foreign currencies. At December 31, 2014, the maximum U.S. dollar equivalent of the commitments was $69,270,000 of which $24,723,000 is outstanding.

Scheduled maturities of long term debt are as follows (in thousands):

Years Ending December 31,
2015	$	6,361
2016		4,575
2017		1,200
2018		1,200
2019		1,200
Thereafter		113,700

Total debt	$	128,236

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2014

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Note 10—Supplemental Cash Flow Information

The Company issues shares of its common stock to its non-employee directors as partial compensation for services on the Company's Board through the next annual stockholders meeting. See Note 11 for further information with respect to this plan.

Other non-cash activity is provided in the following table:

	Years Ended December 31,
	2014		2013		2012
	(in thousands)
Interest and related financing fees paid	$	22,753	$	13,372	$	16,952


Income taxes paid	$	11,903	$	8,601	$	4,443