Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting

15. Segment Reporting

We manage our business in five reportable segments: Corporate Finance/Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications.

Our Corporate Finance/Restructuring segment focuses on strategic, operational, financial and capital needs of businesses around the world and provides consulting and advisory services on a wide range of areas, such as restructuring (including bankruptcy), interim management, financings, mergers and acquisitions, post-acquisition integration, valuations, tax issues and performance improvement.

Our Forensic and Litigation Consulting segment provides law firms, companies, government clients and other interested parties with dispute advisory, investigations, forensic accounting, business intelligence assessments, data analytics, 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 United States and around the world.

Our Technology segment provides electronic discovery and information management consulting, software and services to its clients. It provides products, services and consulting to companies, law firms, courts and government agencies worldwide. Its comprehensive suite of software and services help clients locate, review and produce electronically stored information, including e-mail, computer files, voicemail, instant messaging, and financial and transactional data.

Our Strategic Communications segment provides advice and consulting services relating to financial and corporate communications and investor relations, reputation management and brand communications, public affairs, business consulting and digital design and marketing.

Effective in the first quarter of 2013, we modified our reportable segments to reflect changes in how we operate our business and the related internal management reporting. The Company’s healthcare practices from both our Corporate Finance/Restructuring segment and our Forensic and Litigation Consulting segment have been combined under a single organizational structure. This single integrated practice, our health solutions practice, is now aggregated in its entirety within the Forensic and Litigation Consulting reportable segment. Prior period Corporate Finance/Restructuring and Forensic and Litigation Consulting segment information has been reclassified to conform to the current period presentation.

We evaluate the performance of our operating segments based on Adjusted Segment EBITDA. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, special charges and goodwill impairment charge. Although Adjusted Segment EBITDA is not a measure of financial condition or performance determined in accordance with GAAP, we use Adjusted Segment EBITDA to evaluate and compare the operating performance of our segments.

The table below presents revenues and Adjusted Segment EBITDA for our reportable segments for the three months ended March 31, 2013 and 2012:

	Three Months Ended March 31,
	2013		2012
Revenues
Corporate Finance/Restructuring	$	99,080	$	96,874
Forensic and Litigation Consulting		100,724		103,635
Economic Consulting		115,194		100,052
Technology		46,704		49,660
Strategic Communications		45,476		45,007
Revenues	$	407,178	$	395,228
Adjusted Segment EBITDA
Corporate Finance/Restructuring	$	19,085	$	24,171
Forensic and Litigation Consulting		12,811		14,670
Economic Consulting		26,194		18,424
Technology		13,716		13,215
Strategic Communications		3,554		4,529
Total Adjusted Segment EBITDA(1)	$	75,360	$	75,009

⁽¹⁾  Total Adjusted Segment EBITDA is the total of Adjusted Segment EBITDA for all segments.

The table below reconciles Total Adjusted Segment EBITDA to income before income tax provision:

	Three Months Ended March 31,
	2013			2012
Total Adjusted Segment EBITDA(1)	$	75,360		$	75,009
Segment depreciation expense		(6,876	)		(6,273	)
Amortization of other intangible assets		(5,564	)		(5,517	)
Special charges		(427	)		—
Unallocated corporate expenses, excluding special charges		(17,164	)		(22,272	)
Interest income and other		937			3,282
Interest expense		(12,715	)		(15,204	)
Income before income tax provision	$	33,551		$	29,025

⁽¹⁾ Total Adjusted Segment EBITDA is the total of Adjusted Segment EBITDA for all segments.