Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

17. 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 the strategic, operational, financial and capital needs of our clients around the world and delivers a wide range of distressed and non-distressed practice offerings. Our distressed practice offerings include corporate restructuring (and bankruptcy) and interim management services. Our non-distressed practice offerings include financings, mergers and acquisitions (“M&A”), M&A integration, valuations and tax advice, as well as financial, operational and performance improvement services.

Our Forensic and Litigation Consulting segment provides law firms, companies, government clients and other interested parties with multidisciplinary, independent dispute advisory, investigations, data analytics, forensic accounting, business intelligence and 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 offers a comprehensive portfolio of information governance and e-discovery software, services and consulting support to companies, law firms, courts and government agencies worldwide. Our services allow our clients to control the risk and expense of e-discovery events more confidently, as well as manage their data in the context of compliance and risk.

Our Strategic Communications segment designs and executes communications strategies for management teams and boards of directors to help them seize opportunities, manage financial, regulatory and reputational challenges, navigate market disruptions, articulate their brand, stake a competitive position, and preserve and grow their operations.

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, 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 for the years ended December 31, 2016, 2015 and 2014.

	Year Ended December 31,
	2016		2015		2014
Revenues
Corporate Finance & Restructuring	$	483,269	$	440,398	$	391,115
Forensic and Litigation Consulting		457,734		482,269		483,380
Economic Consulting		500,487		447,909		451,040
Technology		177,720		218,599		241,310
Strategic Communications		191,184		189,974		189,367
Total revenues	$	1,810,394	$	1,779,149	$	1,756,212
Adjusted Segment EBITDA
Corporate Finance & Restructuring	$	97,688	$	90,101	$	55,492
Forensic and Litigation Consulting		57,882		64,267		90,468
Economic Consulting		74,102		62,330		59,282
Technology		25,814		39,010		63,545
Strategic Communications		30,458		27,727		22,588
Total Adjusted Segment EBITDA	$	285,944	$	283,435	$	291,375

The table below reconciles Net income to Total Adjusted Segment EBITDA. Unallocated corporate expenses primarily include indirect costs related to centrally managed administrative functions that 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 and strategy functions.

	Year Ended December 31,
	2016			2015			2014
Net income	$	85,520		$	66,053		$	58,807
Add back:
Income tax provision		42,283			39,333			42,604
Interest income and other		(10,466	)		(3,232	)		(4,670	)
Interest expense		24,819			42,768			50,685
Loss on early extinguishment of debt		—			19,589			—
Unallocated corporate expenses		88,182			81,348			84,545
Segment depreciation expense		34,064			27,717			30,267
Amortization of intangible assets		10,306			11,726			15,521
Segment special charges		9,833			—			16,339
Remeasurement of acquisition-related contingent consideration		1,403			(1,867	)		(2,723	)
Total Adjusted Segment EBITDA	$	285,944		$	283,435		$	291,375

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,
	2016		2015
Corporate Finance & Restructuring	$	681,919	$	671,605
Forensic and Litigation Consulting		400,047		437,398
Economic Consulting		496,757		498,765
Technology		189,704		200,987
Strategic Communications		214,160		239,443
Total segment assets		1,982,587		2,048,198
Unallocated corporate assets		242,781		180,820
Total assets	$	2,225,368	$	2,229,018

The table below details information on our revenues for the years ended December 31, 2016, 2015 and 2014. Revenues have been attributed to location based on the location of the legal entity generating the revenues.

	Year Ended December 31,
	2016		2015		2014
United States	$	1,298,492	$	1,281,444	$	1,256,046
United Kingdom		246,236		236,925		232,281
All other foreign countries		265,666		260,780		267,885
Total revenues	$	1,810,394	$	1,779,149	$	1,756,212

We do not have a single customer that represents 10 percent or more of our consolidated revenues.

The table below details information on our long-lived assets and net assets attributed to geographic location based on the location of the legal entity holding the assets.

	December 31, 2016						December 31, 2015
	United States		United Kingdom		All Other Foreign Countries		United States		United Kingdom		All Other Foreign Countries
Property and equipment, net of accumulated    depreciation	$	39,584	$	15,312	$	6,960	$	47,107	$	20,335	$	7,318
Net assets	$	709,634	$	193,276	$	304,448	$	660,396	$	210,801	$	276,406