Segment Reporting

9 Months Ended

Sep. 30, 2019

We manage our business in five reportable segments: Corporate Finance & Restructuring ("Corporate Finance"), Forensic and Litigation Consulting ("FLC"), Economic Consulting, Technology and Strategic Communications.

Our Corporate Finance segment focuses on the strategic, operational, financial and capital needs of our clients around the world and delivers a wide range of service offerings related to restructuring, business transformation and transaction support. Our restructuring practice includes corporate restructuring, including bankruptcy and interim management services. Our business transformation and transactions practices include financial, operational and performance improvement services, as well as due diligence, financing advisory, mergers and acquisitions (“M&A”) advisory, M&A integration, carveout support and valuations.

Our FLC segment provides law firms, companies, government clients and other interested parties with multidisciplinary, independent dispute advisory, investigations, data analytics, forensic accounting, business intelligence 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 corporations and law firms with a comprehensive and global portfolio of consulting and services for information governance, privacy and security, electronic discovery ("e-discovery") and insight analytics. Our consulting expertise enables clients to more confidently govern, secure, find, analyze and rapidly understand their data in the context of compliance and risk.

Our Strategic Communications segment designs and executes communications strategies for management teams and boards of directors to help them seize opportunities, manage financial, regulatory and reputational challenges, navigate market disruptions, articulate their brand, stake a competitive position, and preserve and grow their operations.

We evaluate the performance of our operating segments based on Adjusted Segment EBITDA, a GAAP financial measure. 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 financial 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 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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues
Corporate Finance	$	191,698	$	135,418	$	542,667	$	419,695
FLC	142,651		126,684		427,518		388,250
Economic Consulting	141,715		139,166		439,488		405,583
Technology	57,083		56,692		164,051		144,035
Strategic Communications	59,959		55,052		176,775		165,321
Total revenues	$	593,106	$	513,012	$	1,750,499	$	1,522,884
Adjusted Segment EBITDA
Corporate Finance	$	48,084	$	26,798	$	135,937	$	97,379
FLC	27,008		21,970		87,066		75,342
Economic Consulting	19,413		23,238		66,766		57,846
Technology	12,286		11,473		37,884		24,713
Strategic Communications	12,644		10,802		34,667		31,621
Total Adjusted Segment EBITDA	$	119,435	$	94,281	$	362,320	$	286,901

The table below reconciles net income to Total Adjusted Segment EBITDA:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net income	$	60,422		$	44,333		$	187,665		$	126,887
Add back:
Income tax provision	19,857			19,964			61,100			49,347
Interest income and other	(2,973		)	(1,400		)	(5,741		)	(2,074		)
Interest expense	4,832			7,246			14,371			20,073
Gain on sale of business	—			(13,031		)	—			(13,031		)
Unallocated corporate expenses	27,783			27,806			78,778			77,576
Segment depreciation expense	7,389			7,388			20,309			21,826
Amortization of intangible assets	2,125			1,975			5,838			6,297
Total Adjusted Segment EBITDA	$	119,435		$	94,281		$	362,320		$	286,901