XML 117 R27.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Reporting
 12 Months Ended
Dec. 31, 2013
Segment Reporting

19. 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 years ended December 31, 2013:

 

     Year Ended December 31,  
     2013      2012      2011  

Revenues

         

Corporate Finance/Restructuring

    $ 382,526       $ 394,719       $ 364,409   

Forensic and Litigation Consulting

      433,632         407,586         428,730   

Economic Consulting

      447,366         391,622         353,981   

Technology

      202,663         195,194         218,738   

Strategic Communications

      186,245         187,750         200,910   
  

 

 

     

 

 

     

 

 

  

Total revenues

    $ 1,652,432       $ 1,576,871       $ 1,566,768   
  

 

 

     

 

 

     

 

 

  

Adjusted Segment EBITDA

         

Corporate Finance/Restructuring

    $ 78,797       $ 101,137       $ 84,933   

Forensic and Litigation Consulting

      76,422         60,572         81,885   

Economic Consulting

      92,204         77,461         67,028   

Technology

      60,655         57,203         77,011   

Strategic Communications

      18,737         25,019         26,801   
  

 

 

     

 

 

     

 

 

  

Total Adjusted Segment EBITDA (1)

    $ 326,815       $ 321,392       $ 337,658   
  

 

 

     

 

 

     

 

 

  

 

(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. 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,  
     2013     2012     2011  

Total Adjusted Segment EBITDA (1)

    $ 326,815      $ 321,392      $ 337,658   

Segment depreciation expense

      (28,203 )      (25,058 )      (23,620 ) 

Amortization of intangible assets

      (22,954 )      (22,407 )      (22,371 ) 

Special charges

      (38,414 )      (29,557 )      (15,212 ) 

Goodwill impairment charge

      (83,752 )      (110,387 )      —     

Unallocated corporate expenses, excluding special charges

      (72,053 )      (74,947 )      (71,008 ) 

Interest income and other

      1,748        5,659        6,304   

Interest expense

      (51,376 )      (56,731 )      (58,624 ) 

Loss on early extinguishment of debt

      —          (4,850 )      —     
  

 

 

    

 

 

    

 

 

  

Income before income tax provision

    $ 31,811      $ 3,114      $ 153,127   
  

 

 

    

 

 

    

 

 

  

 

(1) 

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

The table below details information on our revenues for the three years ended December 31, 2013. Revenues have been attributed to location based on the location of the legal entity generating the revenue:

 

     Year Ended December 31,  
     2013      2012      2011  

United States

    $ 1,208,978       $ 1,171,805       $ 1,187,661   

United Kingdom

      194,614         179,643         173,620   

All foreign countries

      248,840         225,423         205,487   
  

 

 

     

 

 

     

 

 

  

Total revenue

    $ 1,652,432       $ 1,576,871       $ 1,566,768   
  

 

 

     

 

 

     

 

 

  

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, 2013 and 2012 attributed to geographic location based on the location of the legal entity holding the assets:

 

     December 31, 2013      December 31, 2012  
     United
States		      United
Kingdom		      All foreign
countries		      United
States		      United
Kingdom		      All foreign
countries		  

Property and equipment, net of accumulated depreciation

    $ 50,351       $ 16,931       $ 11,725       $ 53,889       $ 5,033       $ 9,270   

Net assets

    $ 504,963       $ 220,951       $ 316,345       $ 534,680       $ 255,952       $ 277,600