XML 98 R25.htm IDEA: XBRL DOCUMENT v3.3.1.900
Segment Reporting
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting

17. 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 the 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 (“M&A”), M&A integration, valuations and tax issues and as well as financial, operational and performance improvement. Our distressed service offerings generally include corporate restructurings and interim management, and our non-distressed service offerings generally include all other services mentioned above.

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 and 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 e-discovery and information governance, hosting and consulting services and software 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 ESI, 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, investor relations, reputation management, brand communications, public affairs, business consulting, 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 years ended December 31, 2015, 2014 and 2013.

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Finance & Restructuring

 

$

440,398

 

 

$

391,115

 

 

$

382,526

 

Forensic and Litigation Consulting

 

 

482,269

 

 

 

483,380

 

 

 

433,632

 

Economic Consulting

 

 

447,909

 

 

 

451,040

 

 

 

447,366

 

Technology

 

 

218,599

 

 

 

241,310

 

 

 

202,663

 

Strategic Communications

 

 

189,974

 

 

 

189,367

 

 

 

186,245

 

Total revenues

 

$

1,779,149

 

 

$

1,756,212

 

 

$

1,652,432

 

Adjusted Segment EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Finance & Restructuring

 

$

90,101

 

 

$

55,492

 

 

$

67,183

 

Forensic and Litigation Consulting

 

 

64,267

 

 

 

90,468

 

 

 

74,481

 

Economic Consulting

 

 

62,330

 

 

 

59,282

 

 

 

92,204

 

Technology

 

 

39,010

 

 

 

63,545

 

 

 

60,655

 

Strategic Communications

 

 

27,727

 

 

 

22,588

 

 

 

18,737

 

Total Adjusted Segment EBITDA

 

$

283,435

 

 

$

291,375

 

 

$

313,260

 

 

The table below reconciles Total Adjusted Segment EBITDA to income before income tax provision. Unallocated corporate expenses include primarily indirect costs related to centrally manage 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 and strategy functions.

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Total Adjusted Segment EBITDA

 

$

283,435

 

 

$

291,375

 

 

$

313,260

 

Segment depreciation expense

 

 

(27,717

)

 

 

(30,267

)

 

 

(28,203

)

Amortization of intangible assets

 

 

(11,726

)

 

 

(15,521

)

 

 

(22,954

)

Special charges

 

 

—

 

 

 

(16,339

)

 

 

(38,414

)

Goodwill impairment charge

 

 

—

 

 

 

—

 

 

 

(83,752

)

Unallocated corporate expenses, excluding special charges

 

 

(81,348

)

 

 

(84,545

)

 

 

(72,053

)

Interest income and other

 

 

3,232

 

 

 

4,670

 

 

 

1,748

 

Interest expense

 

 

(42,768

)

 

 

(50,685

)

 

 

(51,376

)

Loss on early extinguishment of debt

 

 

(19,589

)

 

 

—

 

 

 

—

 

Remeasurement of acquisition-related contingent consideration

 

 

1,867

 

 

 

2,723

 

 

 

13,555

 

Income before income tax provision

 

$

105,386

 

 

$

101,411

 

 

$

31,811

 

 

The table below presents assets by segment. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and other intangible assets.

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

Corporate Finance & Restructuring

 

$

671,605

 

 

$

668,631

 

Forensic and Litigation Consulting

 

 

437,398

 

 

 

430,759

 

Economic Consulting

 

 

498,765

 

 

 

493,694

 

Technology

 

 

200,987

 

 

 

214,866

 

Strategic Communications

 

 

239,443

 

 

 

250,194

 

Total segment assets

 

 

2,048,198

 

 

 

2,058,144

 

Unallocated corporate assets

 

 

180,820

 

 

 

333,455

 

Total assets

 

$

2,229,018

 

 

$

2,391,599

 

 

The table below details information on our revenues for the years ended December 31, 2015, 2014 and 2013. Revenues have been attributed to location based on the location of the legal entity generating the revenue.

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

United States

 

$

1,281,444

 

 

$

1,256,046

 

 

$

1,208,978

 

United Kingdom

 

 

232,281

 

 

 

232,281

 

 

 

194,614

 

All other foreign countries

 

 

265,424

 

 

 

267,885

 

 

 

248,840

 

Total revenue

 

$

1,779,149

 

 

$

1,756,212

 

 

$

1,652,432

 

 

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, 2015 and 2014 attributed to geographic location based on the location of the legal entity holding the assets.

 

 

 

December 31, 2015

 

 

December 31, 2014

 

 

 

United States

 

 

United

Kingdom

 

 

All other

foreign countries

 

 

United States

 

 

United

Kingdom

 

 

All foreign countries

 

Property and equipment, net of accumulated

   depreciation

 

$

47,107

 

 

$

5,033

 

 

$

22,620

 

 

$

50,914

 

 

$

21,971

 

 

$

9,278

 

Net assets

 

$

660,396

 

 

$

210,801

 

 

$

276,406

 

 

$

594,960

 

 

$

226,019

 

 

$

281,767