XML 32 R21.htm IDEA: XBRL DOCUMENT v3.24.2
Segment Reporting
 6 Months Ended
Jun. 30, 2024
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, lenders, governments and other financing sources and creditor groups, as well as other parties-in-interest. We deliver a wide range of services centered around four core offerings: Business Transformation, Strategy, Transactions and Turnaround & Restructuring.
Our FLC segment provides law firms, companies, boards of directors, government entities, private equity firms and other interested parties with a multidisciplinary and independent range of services across risk and investigations and disputes, supported by our data & analytics technology-enabled solutions, with a focus on highly regulated industries. Our services are centered around five core offerings: Construction, Projects & Assets and Environmental Solutions, Data & Analytics, Disputes, Healthcare Risk Management & Advisory, 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, private equity firms and government entities with a comprehensive global portfolio of digital insights and risk management consulting services. Our professionals help organizations better address risk as the growing volume and variety of enterprise and emerging data intersects with legal, regulatory and compliance needs. We deliver a wide range of expert and analytics-powered solutions driven by investigations, litigation, antitrust and competition, merger & acquisition, restructuring and compliance and risk through three core offerings: Corporate Legal Department Consulting, E-discovery Services and Expertise, and Information Governance, Privacy & Security Services.
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:
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Revenues    
Corporate Finance (1)
$347,971 $317,912 $713,981 $633,564 
FLC (1)
169,496 164,760 345,570 322,499 
Economic Consulting230,873 201,822 435,421 371,417 
Technology115,875 97,444 216,588 188,062 
Strategic Communications84,941 82,653 166,149 155,755 
Total revenues$949,156 $864,591 $1,877,709 $1,671,297 
Adjusted Segment EBITDA    
Corporate Finance (1)
$66,467 $45,510 $141,692 $97,357 
FLC (1)
14,994 25,598 48,703 47,382 
Economic Consulting44,296 35,523 58,446 49,716 
Technology20,930 20,087 35,511 35,453 
Strategic Communications11,611 12,263 24,037 21,819 
Total Adjusted Segment EBITDA$158,298 $138,981 $308,389 $251,727 
(1)Effective July 1, 2023, prior period segment information for the Corporate Finance and FLC segments has been recast in this Quarterly Report on Form 10-Q to include the reclassification of a portion of the Company’s health solutions practice in the FLC segment to our realigned business transformation practice within our Corporate Finance segment.
The table below reconciles net income to Total Adjusted Segment EBITDA:
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Net income$83,947 $62,395 $163,912 $109,942 
Add back:  
Income tax provision18,735 22,708 38,265 37,682 
Interest income and other(1,909)584 (3,490)1,926 
Interest expense3,319 3,022 5,038 5,961 
Unallocated corporate expenses42,884 39,026 82,415 73,761 
Segment depreciation expense10,242 9,829 20,153 18,856 
Amortization of intangible assets1,080 1,417 2,096 3,599 
Total Adjusted Segment EBITDA$158,298 $138,981 $308,389 $251,727