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Segment Reporting | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting We manage our business in five reportable segments: Corporate Finance, FLC, Economic Consulting, Technology and Strategic Communications. Our Corporate Finance segment focuses on the strategic, operational, financial, transactional and capital needs of our clients around the world. Our clients include companies, boards of directors, investors, private equity sponsors, banks, lenders, and other financing sources and creditor groups, as well as other parties-in-interest. We deliver a wide range of services centered around three core offerings: business transformation, transactions and turnaround, restructuring and bankruptcy. Our FLC segment provides law firms, companies, government entities and other interested parties with a multidisciplinary and independent range of services in risk and investigations and disputes, including a focus on highly regulated industries such as our construction & environmental solutions and health solutions services. These services are supported by our data & analytics services which help our clients analyze large, disparate sets of data related to their business operations and support our clients during regulatory inquiries and commercial disputes. We deliver a wide range of services centered around five core offerings: construction & environmental solutions, data & analytics, disputes, health solutions and risk and investigations. Our Economic Consulting segment, including subsidiary Compass Lexecon LLC, provides law firms, companies, government entities and other interested parties with analyses of complex economic issues for use in international arbitration, legal and regulatory proceedings, and strategic decision making and public policy debates around the world. We deliver a wide range of services centered around three core offerings: antitrust & competition economics, financial economics and international arbitration. Our Technology segment provides companies, law firms and government entities with a comprehensive global portfolio of e-discovery, information governance, privacy and security and corporate legal operations solutions. We deliver a full spectrum of services including data collection, data processing, document review, hosting, advanced analytics and consulting. Our Strategic Communications segment develops and executes communications strategies to help management teams, boards of directors, law firms, governments and regulators manage change and mitigate risk surrounding transformational and disruptive events, including transactions, investigations, disputes, crises, regulation and legislation. We deliver a wide range of services centered around three core offerings: corporate reputation, financial communications and public affairs. 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, which is 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 as a basis 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:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Revenues |  |  |  |  |
Corporate Finance | $ | 910,184 |  |  | $ | 723,721 |  |  | $ | 564,479 |
FLC | 500,275 |  |  | 577,780 |  |  | 520,333 |
Economic Consulting | 599,088 |  |  | 592,542 |  |  | 533,979 |
Technology | 223,016 |  |  | 215,584 |  |  | 185,755 |
Strategic Communications | 228,712 |  |  | 243,090 |  |  | 223,331 |
Total revenues | $ | 2,461,275 |  |  | $ | 2,352,717 |  |  | $ | 2,027,877 |
Adjusted Segment EBITDA |  |  |  |  |
Corporate Finance | $ | 216,830 |  |  | $ | 160,735 |  |  | $ | 121,660 |
FLC | 33,374 |  |  | 104,435 |  |  | 96,821 |
Economic Consulting | 91,432 |  |  | 84,112 |  |  | 69,955 |
Technology | 43,013 |  |  | 45,688 |  |  | 27,387 |
Strategic Communications | 38,975 |  |  | 44,544 |  |  | 42,918 |
Total Adjusted Segment EBITDA | $ | 423,624 |  |  | $ | 439,514 |  |  | $ | 358,741 |
The table below reconciles net income to Total Adjusted Segment EBITDA. Unallocated corporate expenses primarily include indirect costs related to centrally managed administrative functions that 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,
| 2020 |  | 2019 |  | 2018
Net income | $ | 210,682 |  |  | $ | 216,726 |  |  | $ | 150,611 |
Add back: |  |  |  |  |
Income tax provision | 51,764 |  |  | 71,724 |  |  | 57,181 |
Interest income and other | 412 |  |  | (2,061) |  |  | (4,977) |
Interest expense | 19,805 |  |  | 19,206 |  |  | 27,149 |
Gain on sale of business | — |  |  | — |  |  | (13,031) |
Loss on early extinguishment of debt | — |  |  | — |  |  | 9,072 |
Unallocated corporate expenses (1) | 94,463 |  |  | 98,398 |  |  | 96,595 |
Segment depreciation expense | 29,381 |  |  | 27,369 |  |  | 27,979 |
Amortization of intangible assets | 10,387 |  |  | 8,152 |  |  | 8,162 |
Segment special charges | 6,730 |  |  | — |  |  | — |
Total Adjusted Segment EBITDA | $ | 423,624 |  |  | $ | 439,514 |  |  | $ | 358,741 |
(1)Includes a $0.4 million special charge. The table below presents assets by reportable segment, reconciled to consolidated amounts. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and intangible assets.
| December 31,
| 2020 |  | 2019
Corporate Finance | $ | 925,082 |  |  | $ | 814,820 |
FLC | 412,803 |  |  | 462,155 |
Economic Consulting | 553,217 |  |  | 543,475 |
Technology | 200,396 |  |  | 200,430 |
Strategic Communications | 214,503 |  |  | 217,129 |
Total segment assets | 2,306,001 |  |  | 2,238,009 |
Unallocated corporate assets | 471,362 |  |  | 545,133 |
Total assets | $ | 2,777,363 |  |  | $ | 2,783,142 |
The table below details total revenues by country. Revenues have been attributed to locations based on the location of the legal entity generating the revenues.
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
U.S. | $ | 1,544,777 |  |  | $ | 1,555,133 |  |  | $ | 1,372,116 |
U.K. | 421,125 |  |  | 389,338 |  |  | 302,576 |
All other foreign countries | 495,373 |  |  | 408,246 |  |  | 353,185 |
Total revenues | $ | 2,461,275 |  |  | $ | 2,352,717 |  |  | $ | 2,027,877 |
We do not have a single customer that represents 10% or more of our consolidated revenues. The table below details information on our long-lived assets and net assets by geographic location, which is based on the location of the legal entity holding the assets. We define net assets as total assets less total liabilities.
| December 31, 2020 |  | December 31, 2019
| U.S. |  | U.K. |  | All Other Foreign Countries |  | U.S. |  | U.K. |  | All Other Foreign Countries
Property and equipment, net | $ | 64,923 |  |  | $ | 19,150 |  |  | $ | 17,569 |  |  | $ | 63,563 |  |  | $ | 16,423 |  |  | $ | 13,686 |
Net assets | $ | 763,159 |  |  | $ | 196,708 |  |  | $ | 440,314 |  |  | $ | 925,288 |  |  | $ | 196,087 |  |  | $ | 367,767 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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