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Segment Reporting
 12 Months Ended
Dec. 31, 2012
Segment Reporting

19. 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, 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, data analytics, business intelligence assessments 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 U.S. and around the world.

Our Technology segment provides 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 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, special charges and goodwill impairment charge. 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 years ended December 31, 2012:

 

     Year Ended December 31,  
     2012      2011      2010  

Revenues

         

Corporate Finance/Restructuring

    $ 459,231       $ 427,813       $ 451,518   

Forensic and Litigation Consulting

      343,074         365,326         324,478   

Economic Consulting

      391,622         353,981         255,660   

Technology

      195,194         218,738         176,607   

Strategic Communications

      187,750         200,910         193,198   
  

 

 

     

 

 

     

 

 

  

Total revenues

    $ 1,576,871       $ 1,566,768       $ 1,401,461   
  

 

 

     

 

 

     

 

 

  

Adjusted Segment EBITDA

         

Corporate Finance/Restructuring

    $ 108,966       $ 97,638       $ 108,634   

Forensic and Litigation Consulting

      52,743         69,180         75,920   

Economic Consulting

      77,461         67,028         49,481   

Technology

      57,203         77,011         64,358   

Strategic Communications

      25,019         26,801         28,971   
  

 

 

     

 

 

     

 

 

  

Total Adjusted Segment EBITDA

    $ 321,392       $ 337,658       $ 327,364   
  

 

 

     

 

 

     

 

 

  

The table below reconciles Total Adjusted Segment EBITDA to income before income tax provision. Unallocated corporate expenses include primarily indirect costs related to centrally managed administrative functions which have not been allocated to the segments. These administrative costs include costs related to executive management, legal, corporate office support costs, information technology, accounting, marketing, human resources, and company-wide business development functions.

 

     Year Ended December 31,  
     2012     2011     2010  

Total Adjusted Segment EBITDA(a)

    $ 321,392      $ 337,658      $ 327,364   

Segment depreciation expense

      (25,058 )      (23,620 )      (26,102 ) 

Amortization of intangible assets

      (22,407 )      (22,371 )      (23,910 ) 

Special charges

      (29,557 )      (15,212 )      (51,131 ) 

Goodwill impairment charge

      (110,387 )      —          —     

Unallocated corporate expenses, excluding special charges

      (74,947 )      (71,008 )      (67,829 ) 

Interest income and other

      5,659        6,304        4,423   

Interest expense

      (56,731 )      (58,624 )      (50,263 ) 

Loss on early extinguishment of debt

      (4,850 )      —          (5,161 ) 
  

 

 

    

 

 

    

 

 

  

Income before income tax provision

    $ 3,114      $ 153,127      $ 107,391   
  

 

 

    

 

 

    

 

 

  

 

(a) 

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

The table below presents assets by segment. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and other intangible assets:

 

     December 31,  
     2012      2011  

Corporate Finance/Restructuring

    $ 696,617       $ 638,085   

Forensic and Litigation Consulting

      355,260         360,898   

Economic Consulting

      477,430         437,677   

Technology

      203,117         213,817   

Strategic Communications

      342,198         471,008   
  

 

 

     

 

 

  

Total segment assets

      2,074,622         2,121,485   

Unallocated corporate assets

      200,830         289,599   
  

 

 

     

 

 

  

Total assets

    $ 2,275,452       $ 2,411,084   
  

 

 

     

 

 

  

The table below details information on our revenues for the three years ended December 31, 2012. Revenues have been attributed to location based on the location of the legal entity generating the revenue:

 

     Year Ended December 31,  
     2012      2011      2010  

United States

    $ 1,171,805       $ 1,187,661       $ 1,104,836   

All foreign countries

      405,066         379,107         296,625   
  

 

 

     

 

 

     

 

 

  

Total revenue

    $ 1,576,871       $ 1,566,768       $ 1,401,461   
  

 

 

     

 

 

     

 

 

  

We do not have a single customer that represents ten percent or more of our consolidated revenues.

The table below details information on our long-lived assets and net assets at December 31, 2012 and 2011 attributed to geographic location based on the location of the legal entity holding the assets:

 

     December 31, 2012      December 31, 2011  
     United
States		      All foreign
countries		      United
States		      All foreign
countries		  

Property and equipment, net of accumulated depreciation

    $ 53,889       $ 14,303       $ 58,474       $ 15,974   

Net assets

    $ 534,680       $ 533,552       $ 547,965       $ 558,237