Segment Reporting

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

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, transactional and capital needs of our clients around the world and delivers a wide range of service offerings related to restructuring, business transformation and transactions. 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 and independent services related to risk advisory, investigations and disputes. We have expertise in anti-corruption/anti-money laundering investigations and compliance, cybersecurity, data analytics, export controls and sanctions, and monitorship. We offer specialized industry expertise in the areas of insurance, construction, healthcare, environmental and trial 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 United States and around the world.

Our Technology segment provides companies and law firms with a comprehensive and global portfolio of consulting and services for information governance, privacy and security, electronic 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 CEOs, management teams and boards of directors that help them seize opportunities, manage financial, regulatory and reputational challenges, navigate market disruptions, articulate their corporate brand, stake a competitive position and preserve their freedom to operate.

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 June 30,					Six Months Ended June 30,
	2020			2019		2020		2019
Revenues
Corporate Finance	$	246,011		$	190,003	$	453,760	$	350,969
FLC	106,381			145,870		253,978		284,867
Economic Consulting	151,493			155,502		283,631		297,773
Technology	47,084			55,632		105,807		106,968
Strategic Communications	56,883			59,112		115,269		116,816
Total revenues	$	607,852		$	606,119	$	1,212,445	$	1,157,393
Adjusted Segment EBITDA
Corporate Finance	$	76,264		$	50,492	$	125,210	$	87,853
FLC	(9,047		)	28,241		12,161		60,058
Economic Consulting	21,694			23,313		34,404		47,353
Technology	6,435			12,875		20,919		25,598
Strategic Communications	10,034			10,474		18,810		22,023
Total Adjusted Segment EBITDA	$	105,380		$	125,395	$	211,504	$	242,885

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Net income	$	48,174		$	64,598		$	104,921		$	127,243
Add back:
Income tax provision	14,470			21,313			30,935			41,243
Interest income and other	(2,202		)	(2,609		)	(7,219		)	(2,768		)
Interest expense	5,157			4,793			10,018			9,539
Unallocated corporate expenses	30,276			28,892			53,867			50,995
Segment depreciation expense	7,191			6,556			14,337			12,920
Amortization of intangible assets	2,314			1,852			4,645			3,713
Total Adjusted Segment EBITDA	$	105,380		$	125,395		$	211,504		$	242,885