Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting

19. 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.

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 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 years ended December 31, 2014:

	Year Ended December 31,
	2014		2013		2012
Revenues
Corporate Finance/Restructuring	$	391,115	$	382,526	$	394,719
Forensic and Litigation Consulting		483,380		433,632		407,586
Economic Consulting		451,040		447,366		391,622
Technology		241,310		202,663		195,194
Strategic Communications		189,367		186,245		187,750
Total revenues	$	1,756,212	$	1,652,432	$	1,576,871
Adjusted Segment EBITDA
Corporate Finance/Restructuring	$	55,492	$	67,183	$	95,916
Forensic and Litigation Consulting		90,468		74,481		60,566
Economic Consulting		59,282		92,204		77,461
Technology		63,545		60,655		57,203
Strategic Communications		22,588		18,737		25,019
Total Adjusted Segment EBITDA	$	291,375	$	313,260	$	316,165

The table below reconciles Total Adjusted Segment EBITDA to income before income tax provision. Unallocated corporate expenses include primarily indirect costs related to centrally managed administrative functions which have not been allocated to the segments. These administrative costs include costs related to executive management, legal, corporate office support costs, information technology, accounting, marketing, human resources, and company-wide business development functions.

	Year Ended December 31,
	2014			2013			2012
Total Adjusted Segment EBITDA	$	291,375		$	313,260		$	316,165
Segment depreciation expense		(30,267	)		(28,203	)		(25,058	)
Amortization of intangible assets		(15,521	)		(22,954	)		(22,407	)
Special charges		(16,339	)		(38,414	)		(29,557	)
Goodwill impairment charge		—			(83,752	)		(110,387	)
Unallocated corporate expenses, excluding special charges		(84,545	)		(72,053	)		(74,947	)
Interest income and other		4,670			1,748			5,659
Interest expense		(50,685	)		(51,376	)		(56,731	)
Loss on early extinguishment of debt		—			—			(4,850	)
Remeasurement of acquisition-related contingent consideration		2,723			13,555			5,227
Income before income tax provision	$	101,411		$	31,811		$	3,114

The table below presents assets by segment. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and other intangible assets:

	December 31,
	2014		2013
Corporate Finance/Restructuring	$	668,631	$	669,027
Forensic and Litigation Consulting		430,759		444,850
Economic Consulting		493,694		487,549
Technology		214,866		208,612
Strategic Communications		250,194		267,884
Total segment assets		2,058,144		2,077,922
Unallocated corporate assets		372,383		287,025
Total assets	$	2,430,527	$	2,364,947

The table below details information on our revenues for the three years ended December 31, 2014. Revenues have been attributed to location based on the location of the legal entity generating the revenue:

	Year Ended December 31,
	2014		2013		2012
United States	$	1,256,046	$	1,208,978	$	1,171,805
United Kingdom		232,281		194,614		179,643
All other foreign countries		267,885		248,840		225,423
Total revenue	$	1,756,212	$	1,652,432	$	1,576,871

We do not have a single customer that represents ten percent or more of our consolidated revenues.

The table below details information on our long-lived assets and net assets at December 31, 2014 and 2013 attributed to geographic location based on the location of the legal entity holding the assets:

	December 31, 2014						December 31, 2013
	United States		United Kingdom		All other foreign countries		United States		United Kingdom		All foreign countries
Property and equipment, net of accumulated depreciation	$	50,914	$	21,971	$	9,278	$	50,351	$	16,931	$	11,725
Net assets	$	594,960	$	226,019	$	281,767	$	504,963	$	220,951	$	316,345