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Segment Reporting
 9 Months Ended
Sep. 30, 2014
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.

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 and nine months ended September 30, 2014 and 2013:

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2014      2013      2014      2013  

Revenues

            

Corporate Finance/Restructuring

    $ 100,041       $ 93,981       $ 298,043       $ 289,775   

Forensic and Litigation Consulting

      121,732         113,068         362,242         318,912   

Economic Consulting

      120,494         113,069         344,572         339,277   

Technology

      62,359         51,201         183,142         149,101   

Strategic Communications

      46,552         43,324         143,055         139,369   
  

 

 

     

 

 

     

 

 

     

 

 

  

Revenues

    $ 451,178       $ 414,643       $ 1,331,054       $ 1,236,434   
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted Segment EBITDA

            

Corporate Finance/Restructuring

    $ 15,534       $ 19,402       $ 45,618       $ 56,335   

Forensic and Litigation Consulting

      22,260         25,362         71,025         56,925   

Economic Consulting

      18,426         23,225         49,499         70,222   

Technology

      17,835         15,381         50,287         45,985   

Strategic Communications

      6,605         4,036         15,168         12,809   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Adjusted Segment EBITDA

    $ 80,660       $ 87,406       $ 231,597       $ 242,276   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2014     2013     2014     2013  

Total Adjusted Segment EBITDA

    $ 80,660      $ 87,406      $ 231,597      $ 242,276   

Segment depreciation expense

      (7,293 )      (7,112 )      (22,353 )      (20,932 ) 

Amortization of other intangible assets

      (3,398 )      (5,776 )      (11,466 )      (17,293 ) 

Special charges

      (5,347 )      (10,419 )      (14,711 )      (10,846 ) 

Goodwill impairment charge

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

Unallocated corporate expenses, excluding special charges

      (18,151 )      (15,946 )      (59,930 )      (47,680 ) 

Interest income and other

      1,014        1,152        3,465        1,702   

Interest expense

      (12,634 )      (12,814 )      (38,197 )      (38,600 ) 

Remeasurement of acquisition-related contingent consideration

      —          —          2,383        8,216   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income tax provision

    $ 34,851      $ (47,261 )    $ 90,788      $ 33,091