XML 31 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Segment Reporting
 6 Months Ended
Jun. 30, 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, risk mitigation and interim management services, as well as 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, a non-GAAP measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. 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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Finance & Restructuring

 

$

132,142

 

 

$

109,113

 

 

$

259,298

 

 

$

215,325

 

Forensic and Litigation Consulting

 

 

118,193

 

 

 

126,131

 

 

 

237,197

 

 

 

249,396

 

Economic Consulting

 

 

118,006

 

 

 

108,698

 

 

 

248,737

 

 

 

214,779

 

Technology

 

 

41,882

 

 

 

61,826

 

 

 

90,163

 

 

 

116,480

 

Strategic Communications

 

 

49,924

 

 

 

43,369

 

 

 

95,037

 

 

 

85,495

 

Total revenues

 

$

460,147

 

 

$

449,137

 

 

$

930,432

 

 

$

881,475

 

Adjusted Segment EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Finance & Restructuring

 

$

32,041

 

 

$

22,032

 

 

$

63,644

 

 

$

44,512

 

Forensic and Litigation Consulting

 

 

15,190

 

 

 

19,979

 

 

 

34,998

 

 

 

42,050

 

Economic Consulting

 

 

15,381

 

 

 

15,292

 

 

 

36,700

 

 

 

26,848

 

Technology

 

 

5,035

 

 

 

12,166

 

 

 

12,858

 

 

 

22,239

 

Strategic Communications

 

 

8,440

 

 

 

5,631

 

 

 

14,548

 

 

 

11,383

 

Total Adjusted Segment EBITDA

 

$

76,087

 

 

$

75,100

 

 

$

162,748

 

 

$

147,032

 

 

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Total Adjusted Segment EBITDA

 

$

76,087

 

 

$

75,100

 

 

$

162,748

 

 

$

147,032

 

Segment depreciation expense

 

 

(7,179

)

 

 

(6,513

)

 

 

(14,208

)

 

 

(13,504

)

Amortization of intangible assets

 

 

(2,590

)

 

 

(3,007

)

 

 

(5,196

)

 

 

(6,019

)

Special charges

 

 

(1,750

)

 

 

—

 

 

 

(6,811

)

 

 

—

 

Unallocated corporate expenses, excluding special charges

 

 

(20,406

)

 

 

(20,101

)

 

 

(39,152

)

 

 

(34,182

)

Interest income and other

 

 

4,125

 

 

 

950

 

 

 

6,682

 

 

 

813

 

Interest expense

 

 

(6,303

)

 

 

(12,473

)

 

 

(12,532

)

 

 

(24,841

)

Remeasurement of acquisition-related contingent

   consideration

 

 

—

 

 

 

1,675

 

 

 

(980

)

 

 

1,675

 

Income before income tax provision

 

$

41,984

 

 

$

35,631

 

 

$

90,551

 

 

$

70,974