Segment Reporting

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

13. 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, 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:

	Three Months Ended March 31,
	2017		2016
Revenues
Corporate Finance & Restructuring	$	105,901	$	127,156
Forensic and Litigation Consulting		111,406		119,004
Economic Consulting		139,221		130,731
Technology		46,087		48,281
Strategic Communications		43,729		45,113
Total revenues	$	446,344	$	470,285
Adjusted Segment EBITDA
Corporate Finance & Restructuring	$	10,325	$	31,603
Forensic and Litigation Consulting		13,521		19,808
Economic Consulting		20,110		21,319
Technology		7,804		7,823
Strategic Communications		4,257		6,108
Total Adjusted Segment EBITDA	$	56,017	$	86,661

The table below reconciles Net income to Total Adjusted Segment EBITDA:

	Three Months Ended March 31,
	2017			2016
Net income	$	14,016		$	30,181
Add back:
Income tax provision		7,877			18,386
Interest income and other		(605	)		(2,557	)
Interest expense		5,801			6,229
Unallocated corporate expenses		19,053			18,746
Segment depreciation expense		7,216			7,029
Amortization of intangible assets		2,493			2,606
Segment special charges		—			5,061
Remeasurement of acquisition-related contingent consideration		166			980
Total Adjusted Segment EBITDA	$	56,017		$	86,661