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Segment Reporting
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting

12. 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 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, 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 and performance improvement services for our health solutions practice clients, as well as interim management services.

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 electronically stored information (“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:

 

 

 

Three Months Ended March 31,

 

 

 

2016

 

 

2015

 

Revenues

 

 

 

 

 

 

 

 

Corporate Finance & Restructuring

 

$

127,156

 

 

$

106,212

 

Forensic and Litigation Consulting

 

 

119,004

 

 

 

123,265

 

Economic Consulting

 

 

130,731

 

 

 

106,081

 

Technology

 

 

48,281

 

 

 

54,654

 

Strategic Communications

 

 

45,113

 

 

 

42,126

 

Total revenues

 

$

470,285

 

 

$

432,338

 

Adjusted Segment EBITDA

 

 

 

 

 

 

 

 

Corporate Finance & Restructuring

 

$

31,603

 

 

$

22,480

 

Forensic and Litigation Consulting

 

 

19,808

 

 

 

22,071

 

Economic Consulting

 

 

21,319

 

 

 

11,556

 

Technology

 

 

7,823

 

 

 

10,073

 

Strategic Communications

 

 

6,108

 

 

 

5,752

 

Total Adjusted Segment EBITDA

 

$

86,661

 

 

$

71,932

 

 

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

 

 

 

Three Months Ended March 31,

 

 

 

2016

 

 

2015

 

Total Adjusted Segment EBITDA

 

$

86,661

 

 

$

71,932

 

Segment depreciation expense

 

 

(7,029

)

 

 

(6,991

)

Amortization of intangible assets

 

 

(2,606

)

 

 

(3,012

)

Special charges

 

 

(5,061

)

 

 

—

 

Unallocated corporate expenses, excluding special charges

 

 

(18,746

)

 

 

(14,081

)

Interest income and other

 

 

2,557

 

 

 

(137

)

Interest expense

 

 

(6,229

)

 

 

(12,368

)

Remeasurement of acquisition-related contingent

   consideration

 

 

(980

)

 

 

—

 

Income before income tax provision

 

$

48,567

 

 

$

35,343