Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

Note 3. Segment Information

Our business is organized into four reporting segments —Business Consulting Services, Dispute and Investigative Services, Economic Consulting and International Consulting. These reporting segments are generally defined by the nature of their services and geography and may be the aggregation of multiple operating segments as indicated in the description below. We have two additional operating segments within the Business Consulting Services segment. Our business is managed and resources are allocated on the basis of the six operating segments.

The Business Consulting Services reporting segment provides strategic, operational, financial, regulatory and technical management consulting services to clients, principally "C" suite and corporate management, government entities and law firms. The reporting segment is comprised of three operating segments, Energy, Healthcare and Other Business Consulting practices. The Energy and Healthcare business units are defined as operating segments due to their size, importance and organizational reporting relationships. The Energy and Healthcare operating segments provide services to clients in those respective markets, and the Other Business Consulting practice provides operations advisory, valuation and restructuring services to financial services and other markets.

The Dispute and Investigative Services reporting segment provides a wide range of services to clients facing the challenges of disputes, litigation, forensic investigation, discovery and regulatory compliance. The clients of this segment are principally law firms, corporate general counsel and corporate boards.

The Economic Consulting reporting segment provides economic and financial analyses of complex legal and business issues principally for law firms, corporations and governmental agencies. Expertise includes areas such as antitrust, corporate finance and governance, bankruptcy, intellectual property, investment banking, labor market discrimination and compensation, corporate valuation and securities litigation.

The International Consulting reporting segment provides a mix of dispute and business consulting services to clients predominately outside North America. The clients are principally "C" suite and corporate management, governmental entities and law firms.

The following information includes segment revenues before reimbursements, segment total revenues and segment operating profit. Certain unallocated expense amounts related to specific reporting segments have been excluded from the calculation of segment operating profit to be consistent with the information used by management to evaluate segment performance. Segment operating profit represents total revenues less costs of services excluding long-term compensation expense related to consulting personnel. The information presented does not necessarily reflect the results of segment operations that would have occurred had the segments been stand-alone businesses. Long-term compensation expense related to consulting personnel includes share-based compensation expense and compensation expense attributed to forgivable loans (see Note 8 — Supplemental Consolidated Balance Sheet Information).

	For the three months ended                      June 30,		For the six months ended                      June 30,
(Amounts in Thousands)	2011	2010	2011	2010
Revenues before reimbursements:
Business Consulting Services	$     71,710	$     63,430	$  142,179	$  120,829
Dispute and Investigative Services	66,789	59,737	132,542	123,075
Economic Consulting	18,475	16,966	36,349	33,954
International Consulting	16,319	14,484	31,827	30,629
Total revenues before reimbursements	$  173,293	$  154,617	$  342,897	$  308,487
Total revenues:
Business Consulting Services	$     81,193	$    71,756	$  160,820	$  138,006
Dispute and Investigative Services	73,117	63,867	145,123	131,761
Economic Consulting	19,889	18,622	38,428	37,231
International Consulting	20,209	18,078	38,836	38,875
Total revenues	$  194,408	$  172,323	$  383,207	$  345,873
Segment operating profit:
Business Consulting Services	$     23,453	$    23,148	$     46,635	$    42,165
Dispute and Investigative Services	27,279	21,585	53,056	46,993
Economic Consulting	6,029	6,273	11,786	12,569
International Consulting	3,549	3,663	6,831	7,403
Total combined segment operating profit	60,310	54,669	118,308	109,130
Segment operating profit reconciliation to income before income tax expense: Unallocated:
General and administrative expenses	31,143	29,089	63,552	59,549
Depreciation expense	3,206	3,553	6,583	7,354
Amortization expense	2,163	2,962	4,464	5,758
Long-term compensation expense related to consulting personnel (including share-based compensation)	3,839	2,180	7,048	5,001
Operating income	19,959	16,885	36,661	31,468
Interest and other expense, net	1,554	3,153	2,991	6,423
Income before income tax expense	$     18,405	$    13,732	$     33,670	$    25,045

Total assets by segment were as follows (shown in thousands):

	June 30,       2011	December 31,          2010
Business Consulting Services	$     264,120	$  263,465
Dispute and Investigative Services	347,419	343,531
Economic Consulting	88,784	86,719
International Consulting	76,153	69,539
Unallocated assets	103,454	105,781
Total assets	$     879,930	$  869,035