XML 47 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Reporting
 3 Months Ended
Mar. 31, 2014
Segment Reporting

14. 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 United States (“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.

We evaluate the performance of our operating segments based on Adjusted Segment EBITDA. Beginning with the quarter ended March 31, 2014, the definition of Adjusted Segment EBITDA has been updated to exclude the impact of changes in the fair value of acquisition-related contingent consideration liabilities. Prior period amounts have been reclassified to conform to the current period’s presentation.

We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, 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 months ended March 31, 2014 and 2013:

 

     Three Months Ended  
     March 31,  
     2014      2013  

Revenues

      

Corporate Finance/Restructuring

    $ 93,982       $ 99,080   

Forensic and Litigation Consulting

      121,429         100,724   

Economic Consulting

      106,851         115,194   

Technology

      60,063         46,704   

Strategic Communications

      43,227         45,476   
  

 

 

     

 

 

  

Revenues

    $ 425,552       $ 407,178   
  

 

 

     

 

 

  

Adjusted Segment EBITDA

      

Corporate Finance/Restructuring

    $ 10,951       $ 19,085   

Forensic and Litigation Consulting

      26,494         12,811   

Economic Consulting

      13,030         26,194   

Technology

      17,348         13,716   

Strategic Communications

      2,729         3,554   
  

 

 

     

 

 

  

Total Adjusted Segment EBITDA

    $ 70,552       $ 75,360   
  

 

 

     

 

 

  

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

 

     Three Months Ended  
     March 31,  
     2014     2013  

Total Adjusted Segment EBITDA

    $ 70,552      $ 75,360   

Segment depreciation expense

      (7,548 )      (6,876 ) 

Amortization of other intangible assets

      (4,616 )      (5,564 ) 

Special charges

      —          (427 ) 

Unallocated corporate expenses, excluding special charges

      (20,393 )      (17,164 ) 

Interest income and other

      1,003        937   

Interest expense

      (12,655 )      (12,715 ) 

Remeasurement of acquisition-related contingent consideration

      2,122        —     
  

 

 

    

 

 

  

Income before income tax provision

    $ 28,465      $ 33,551