Segment Reporting

6 Months Ended

Jun. 30, 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 U.S. 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 and life sciences 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 charges. We define Total Adjusted Segment EBITDA as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. Although Adjusted Segment EBITDA is not a measure of financial condition or performance determined in accordance with GAAP, we use Adjusted Segment EBITDA to internally evaluate the financial performance of our segments because we believe it is a useful supplemental measure which 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 for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Revenues
Corporate Finance/Restructuring	$	96,714	$	96,187	$	195,794	$	193,061
Forensic and Litigation Consulting		105,120		106,256		205,844		209,891
Economic Consulting		111,014		99,455		226,208		199,507
Technology		51,196		47,697		97,900		97,357
Strategic Communications		50,569		46,648		96,045		91,655
Revenues	$	414,613	$	396,243	$	821,791	$	791,471
Adjusted Segment EBITDA
Corporate Finance/Restructuring	$	24,123	$	27,296	$	43,208	$	51,468
Forensic and Litigation Consulting		20,693		19,542		33,504		34,211
Economic Consulting		20,803		18,491		46,997		36,915
Technology		16,888		12,849		30,604		26,064
Strategic Communications		5,219		4,970		8,773		9,499
Total Adjusted Segment EBITDA(1)	$	87,726	$	83,148	$	163,086	$	158,157

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

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Total Adjusted Segment EBITDA(1)	$	87,726		$	83,148		$	163,086		$	158,157
Segment depreciation expense		(6,944	)		(6,335	)		(13,820	)		(12,608	)
Amortization of other intangible assets		(5,953	)		(5,490	)		(11,517	)		(11,007	)
Special Charges		—			(26,782	)		(427	)		(26,782	)
Unallocated corporate expenses, excluding special charges		(14,570	)		(17,709	)		(31,734	)		(39,981	)
Interest income and other		(387	)		(363	)		550			2,919
Interest expense		(13,071	)		(15,195	)		(25,786	)		(30,399	)
Income before income tax provision	$	46,801		$	11,274		$	80,352		$	40,299

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