SEGMENT REPORTING

12 Months Ended

Dec. 31, 2014

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 14: SEGMENT REPORTING

        We report our financial performance based on the following two reportable segments: the Technology segment and the Bankruptcy and Settlement Administration segment.

        Our Technology segment provides eDiscovery managed services and technology solutions comprised of consulting, collections and forensics, processing, search and review, and document review to companies and law firms. Produced documents are made available primarily through a hosted environment utilizing our proprietary software DocuMatrix®, and third-party software which allows for efficient attorney review and data requests. Our Bankruptcy and Settlement Administration segment provides managed services and technology solutions that address the needs of our customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings.

        The segment performance measure is based on earnings before interest, taxes, depreciation and amortization, other operating expense, and share-based compensation expense. In management's evaluation of performance, certain costs, such as compensation for administrative staff and executive management, are not allocated by segment and, accordingly, the following reporting segment results do not include such unallocated costs.

        Assets reported within a segment are those assets that can be identified to a segment and primarily consist of trade receivables, property, equipment and leasehold improvements, software, identifiable intangible assets and goodwill. Cash, certain tax-related assets, and certain prepaid assets and other assets are not allocated to our segments. Although we can and do identify long-lived assets such as property, equipment and leasehold improvements, software, and identifiable intangible assets to reporting segments, we do not allocate the related depreciation and amortization to the segment as management evaluates segment performance exclusive of these non-cash charges.

        Following is a summary of segment information for the years ended December 31, 2014, 2013 and 2012.

	Year Ended December 31, 2014
	Technology		Bankruptcy and Settlement Administration		Eliminations			Total
	(in thousands)
Operating revenues	$	297,679	$	146,439	$	—		$	444,118
Intersegment revenue		2,045		—		(2,045	)		—
Operating revenues including intersegment revenue		299,724		146,439		(2,045	)		444,118
Reimbursable expenses		2,540		27,812		—			30,352
Total revenues		302,264		174,251		(2,045	)		474,470
Direct costs, selling, general and administrative expenses		218,255		121,085		(2,045	)		337,295
Segment performance measure	$	84,009	$	53,166	$	—		$	137,175

	Year Ended December 31, 2013
	Technology		Bankruptcy and Settlement Administration		Eliminations			Total
	(in thousands)
Operating revenues	$	284,929	$	153,761	$	—		$	438,690
Intersegment revenue		384		—		(384	)		—
Operating revenues including intersegment revenue		285,313		153,761		(384	)		438,690
Reimbursable expenses		2,488		40,905		—			43,393
Total revenues		287,801		194,666		(384	)		482,083
Direct costs, selling, general and administrative expenses		198,462		145,596		(384	)		343,674
Segment performance measure	$	89,339	$	49,070	$	—		$	138,409

	Year Ended December 31, 2012
	Technology		Bankruptcy and Settlement Administration		Eliminations			Total
	(in thousands)
Operating revenues	$	196,959	$	147,791	$	—		$	344,750
Intersegment revenue		203		—		(203	)		—
Operating revenues including intersegment revenue		197,162		147,791		(203	)		344,750
Reimbursable expenses		1,546		26,789		—			28,335
Total revenues		198,708		174,580		(203	)		373,085
Direct costs, selling, general and administrative expenses		125,182		122,359		(203	)		247,338
Segment performance measure	$	73,526	$	52,221	$	—		$	125,747

        Following is a reconciliation of our segment performance measure to consolidated income (loss) before income taxes:

	Year Ended December 31,
	2014			2013			2012
	(in thousands)
Segment performance measure	$	137,175		$	138,409		$	125,747
Corporate and unallocated expenses		(62,557	)		(47,587	)		(36,021	)
Share-based compensation expense		(13,098	)		(10,008	)		(6,719	)
Depreciation and software and leasehold amortization		(36,042	)		(30,971	)		(27,399	)
Amortization of identifiable intangible assets		(12,655	)		(18,834	)		(26,588	)
Fair value adjustment to contingent consideration		(1,142	)		(2,580	)		17,188
Intangible asset impairment expense		—			—			(1,777	)
Other operating income (expense)		(880	)		791			220
Consolidated income from operations		10,801			29,220			44,651
Interest expense, net		(16,653	)		(12,115	)		(9,245	)
Income (loss) before income taxes	$	(5,852	)	$	17,105		$	35,406

        Following are assets by segment:

	December 31, 2014		December 31, 2013
	(in thousands)
Assets
Technology	$	342,596	$	369,135
Bankruptcy and Settlement Administration		286,889		281,073
Corporate and unallocated		108,767		97,573
Total assets	$	738,252	$	747,781

        Following are capital expenditures (including software development costs) by segment:

	Year Ended December 31,
	2014		2013		2012
	(in thousands)
Capital Expenditures
Technology	$	15,477	$	22,234	$	14,153
Bankruptcy and Settlement Administration		2,596		3,161		4,010
Corporate and unallocated		17,966		15,312		4,391
Total capital expenditures	$	36,039	$	40,707	$	22,554

        Following is revenue, determined by the location providing the services, by geographical area:

	Year Ended December 31,
	2014		2013		2012
	(in thousands)
Revenue
United States	$	410,768	$	431,615	$	346,454
United Kingdom		49,710		45,962		23,356
Other countries		13,992		4,506		3,275
Total revenue	$	474,470	$	482,083	$	373,085

        Following are long-lived assets, excluding intangible assets, by geographical area:

	Year Ended December 31,
	2014		2013
	(in thousands)
Long-lived assets
United States	$	78,921	$	84,384
Other countries		6,371		3,935
Total long-lived assets	$	85,292	$	88,319

Significant Customer and Concentration of Credit Risk

        For the years ended December 31, 2014, 2013 and 2012, we had no customers which accounted for more than 10% of our consolidated revenue or consolidated accounts receivable as of December 31, 2014 and 2013.