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Segment Reporting
 9 Months Ended
Sep. 30, 2015
Segment Reporting

12. Segment Reporting

We manage our business in five reportable segments: Corporate Finance & Restructuring (formally known as 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, cloud and social media data as well as 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, 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, 2015 and 2014, respectively:

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2015      2014      2015      2014  

Revenues

            

Corporate Finance & Restructuring

    $ 113,487       $ 100,041       $ 328,812       $ 298,043   

Forensic and Litigation Consulting

      116,158         121,732         365,554         362,242   

Economic Consulting

      114,541         120,494         329,320         344,572   

Technology

      55,568         62,359         172,048         183,142   

Strategic Communications

      55,716         46,552         141,211         143,055   
  

 

 

     

 

 

     

 

 

     

 

 

  

Revenues

    $ 455,470       $ 451,178       $ 1,336,945       $ 1,331,054   
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted Segment EBITDA

            

Corporate Finance & Restructuring

    $ 26,662       $ 15,534       $ 71,174       $ 45,618   

Forensic and Litigation Consulting

      13,406         22,260         55,456         71,025   

Economic Consulting

      16,654         18,426         43,502         49,499   

Technology

      10,813         17,835         33,052         50,287   

Strategic Communications

      8,717         6,605         20,100         15,168   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Adjusted Segment EBITDA

    $ 76,252       $ 80,660       $ 223,284       $ 231,597   
  

 

 

     

 

 

     

 

 

     

 

 

  

The table below reconciles Total Adjusted Segment EBITDA to income before income tax provision for the three and nine months ended September 30, 2015 and 2014, respectively:

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2015     2014     2015     2014  

Total Adjusted Segment EBITDA

    $ 76,252      $ 80,660      $ 223,284      $ 231,597   

Segment depreciation expense

      (6,733 )      (7,293 )      (20,237 )      (22,353 ) 

Amortization of other intangible assets

      (2,900 )      (3,398 )      (8,919 )      (11,466 ) 

Special charges

      —          (5,347 )      —          (14,711 ) 

Unallocated corporate expenses, excluding special charges

      (20,875 )      (18,151 )      (55,057 )      (59,930 ) 

Interest income and other

      2,027        1,014        2,840        3,465   

Interest expense

      (11,696 )      (12,634 )      (36,537 )      (38,197 ) 

Loss on early extinguishment of debt

      (19,589 )      —          (19,589 )      —     

Remeasurement of acquisition-related contingent consideration

      —          —          1,675        2,383   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income tax provision

    $ 16,486      $ 34,851      $ 87,460      $ 90,788