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Segment Reporting
 6 Months Ended
Jun. 30, 2012
Segment Reporting

13. Segment Reporting

We manage our business in five reportable operating segments: Corporate Finance/Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications.

Our Corporate Finance/Restructuring segment focuses on strategic, operational, financial and capital needs of businesses around the world and provides consulting and advisory services on a wide range of areas, such as restructuring (including bankruptcy), interim management, financings, mergers and acquisitions (“M&A”), post-acquisition integration, valuations, tax issues and performance improvement.

Our Forensic and Litigation Consulting segment provides law firms, companies, government clients and other interested parties with dispute advisory, investigations, forensic accounting, business intelligence assessments, data analytics and risk mitigation services.

Our Economic Consulting segment provides law firms, companies, government entities and other interested parties with analysis of complex economic issues for use in legal, regulatory, and international arbitration proceedings, strategic decision making and public policy debates in the United States and around the world.

Our Technology segment provides electronic discovery (“e-discovery”) and information management consulting, software and services to its clients. It provides products, services and consulting to companies, law firms, courts and government agencies worldwide. Its comprehensive suite of software and services help clients locate, review and produce electronically stored information (“ESI”), including e-mail, computer files, voicemail, instant messaging, and financial and transactional data.

Our Strategic Communications segment provides advice and consulting services relating to financial and corporate communications and investor relations, reputation management and brand communications, public affairs, business consulting and digital design and marketing.

 

We evaluate the performance of our operating segments based on Adjusted Segment EBITDA. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets and special charges. Although Adjusted Segment EBITDA is not a measure of financial condition or performance determined in accordance with GAAP, we use Adjusted Segment EBITDA to evaluate and compare the operating performance of our segments.

The table below presents revenues and Adjusted Segment EBITDA for our reportable segments for the three and six months ended June 30, 2012 and 2011:

 

     Three Months Ended
June 30,		      Six Months Ended
June 30,		  
     2012      2011      2012      2011  

Revenues

            

Corporate Finance/Restructuring

    $ 112,336       $ 101,896       $ 225,814       $ 209,150   

Forensic and Litigation Consulting

      90,107         93,368         177,138         176,281   

Economic Consulting

      99,455         94,480         199,507         168,739   

Technology

      47,697         57,130         97,357         108,165   

Strategic Communications

      46,648         53,563         91,655         99,918   
  

 

 

     

 

 

     

 

 

     

 

 

  

Revenues

    $ 396,243       $ 400,437       $ 791,471       $ 762,253   
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted Segment EBITDA

            

Corporate Finance/Restructuring

    $ 29,210       $ 14,075       $ 55,974       $ 31,677   

Forensic and Litigation Consulting

      17,628         17,932         29,705         33,924   

Economic Consulting

      18,491         18,823         36,915         31,985   

Technology

      12,849         20,313         26,064         38,743   

Strategic Communications

      4,970         6,443         9,499         11,839   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Adjusted Segment EBITDA

    $ 83,148       $ 77,586       $ 158,157       $ 148,168   
  

 

 

     

 

 

     

 

 

     

 

 

  

The table below reconciles Total Adjusted Segment EBITDA to income before income tax provision:

 

     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
     2012     2011     2012     2011  

Total Adjusted Segment EBITDA(1)

    $ 83,148      $ 77,586      $ 158,157      $ 148,168   

Segment depreciation expense

      (6,335 )      (5,866 )      (12,608 )      (11,614 ) 

Amortization of other intangible assets

      (5,490 )      (5,498 )      (11,007 )      (10,952 ) 

Special Charges

      (26,782 )      (15,212 )      (26,782 )      (15,212 ) 

Unallocated corporate expenses, excluding special charges

      (17,709 )      (17,368 )      (39,981 )      (32,569 ) 

Interest income and other

      (363 )      2,923        2,919        4,923   

Interest expense

      (15,195 )      (14,500 )      (30,399 )      (29,810 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income tax provision

    $ 11,274      $ 22,065      $ 40,299      $ 52,934   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) 

Total Adjusted Segment EBITDA is the total of Adjusted Segment EBITDA for all segments.