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Segment Reporting
 9 Months Ended
Sep. 30, 2012
Segment Reporting

14. 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 nine months ended September 30, 2012 and 2011:

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2012      2011      2012      2011  

Revenues

            

Corporate Finance/Restructuring

    $ 110,217       $ 110,311       $ 336,031       $ 319,461   

Forensic and Litigation Consulting

      83,366         99,064         260,504         275,345   

Economic Consulting

      96,375         95,662         295,882         264,401   

Technology

      50,286         56,972         147,643         165,137   

Strategic Communications

      45,811         51,793         137,466         151,711   
  

 

 

     

 

 

     

 

 

     

 

 

  

Revenues

    $ 386,055       $ 413,802       $ 1,177,526       $ 1,176,055   
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted Segment EBITDA

            

Corporate Finance/Restructuring

    $ 25,029       $ 27,495       $ 81,003       $ 59,173   

Forensic and Litigation Consulting

      13,211         19,113         42,916         53,016   

Economic Consulting

      19,087         18,650         56,002         50,635   

Technology

      15,675         19,619         41,739         58,362   

Strategic Communications

      6,778         7,429         16,277         19,267   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Adjusted Segment EBITDA

    $ 79,780       $ 92,306       $ 237,937       $ 240,453   
  

 

 

     

 

 

     

 

 

     

 

 

  

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

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2012     2011     2012     2011  

Total Adjusted Segment EBITDA(1)

    $ 79,780      $ 92,306      $ 237,937      $ 240,453   

Segment depreciation expense

      (6,038 )      (6,115 )      (18,646 )      (17,729 ) 

Amortization of other intangible assets

      (5,766 )      (5,843 )      (16,773 )      (16,795 ) 

Special Charges

      (2,775 )      —          (29,557 )      (15,212 ) 

Unallocated corporate expenses, excluding special charges

      (18,613 )      (20,926 )      (58,594 )      (53,474 ) 

Interest income and other

      1,584        486        4,503        5,409   

Interest expense

      (13,208 )      (14,319 )      (43,607 )      (44,129 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income tax provision

    $ 34,964      $ 45,589      $ 75,263      $ 98,523   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) 

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