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Segment Reporting
 9 Months Ended
Sep. 30, 2013
Segment Reporting

15. Segment Reporting

We manage our business in five reportable 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, 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, risk mitigation services as well as interim management and performance improvement services for our health solutions practice clients.

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 electronic 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, 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.

 

Effective in the first quarter of 2013, we modified our reportable segments to reflect changes in how we operate our business and the related internal management reporting. The Company’s healthcare and life sciences practices from both our Corporate Finance/Restructuring segment and our Forensic and Litigation Consulting segment have been combined under a single organizational structure. This single integrated practice, our health solutions practice, is now aggregated in its entirety within the Forensic and Litigation Consulting reportable segment. Prior period Corporate Finance/Restructuring and Forensic and Litigation Consulting segment information has been reclassified to conform to the current period presentation.

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 (loss) before depreciation, amortization of intangible assets, special charges and goodwill impairment charges. We define Total Adjusted Segment EBITDA as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. Although Adjusted Segment EBITDA is not a measure of financial condition or performance determined in accordance with GAAP, we use Adjusted Segment EBITDA to internally evaluate the financial performance of our segments because we believe it is a useful supplemental measure which reflects current core operating performance and provides an indicator of the segment’s ability to generate cash.

The table below presents revenues and Adjusted Segment EBITDA for our reportable segments for the three and nine months ended September 30, 2013 and 2012:

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2013      2012      2013      2012  

Revenues

            

Corporate Finance/Restructuring

    $ 93,981       $ 93,123       $ 289,775       $ 286,184   

Forensic and Litigation Consulting

      113,068         100,460         318,912         310,351   

Economic Consulting

      113,069         96,375         339,277         295,882   

Technology

      51,201         50,286         149,101         147,643   

Strategic Communications

      43,324         45,811         139,369         137,466   
  

 

 

     

 

 

     

 

 

     

 

 

  

Revenues

    $ 414,643       $ 386,055       $ 1,236,434       $ 1,177,526   
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted Segment EBITDA

            

Corporate Finance/Restructuring

    $ 19,402       $ 21,951       $ 62,610       $ 73,419   

Forensic and Litigation Consulting

      25,362         16,289         58,866         50,500   

Economic Consulting

      23,225         19,087         70,222         56,002   

Technology

      15,381         15,675         45,985         41,739   

Strategic Communications

      4,036         6,778         12,809         16,277   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Adjusted Segment EBITDA(1)

    $ 87,406       $ 79,780       $ 250,492       $ 237,937   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) 

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

 

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

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2013     2012     2013     2012  

Total Adjusted Segment EBITDA(1)

    $ 87,406      $ 79,780      $ 250,492      $ 237,937   

Segment depreciation expense

      (7,112 )      (6,038 )      (20,932 )      (18,646 ) 

Amortization of other intangible assets

      (5,776 )      (5,766 )      (17,293 )      (16,773 ) 

Special Charges

      (10,419 )      (2,775 )      (10,846 )      (29,557 ) 

Goodwill impairment charge

      (83,752 )      —          (83,752 )      —     

Unallocated corporate expenses, excluding special charges

      (15,946 )      (18,613 )      (47,680 )      (58,594 ) 

Interest income and other

      1,152        1,584        1,702        4,503   

Interest expense

      (12,814 )      (13,208 )      (38,600 )      (43,607 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income tax provision

    $ (47,261 )    $ 34,964      $ 33,091      $ 75,263   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) 

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