Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information [Abstract]

Segment Information

4.SEGMENT INFORMATION

Our business is assessed and resources are allocated based on the following four reportable segments:

•The Disputes, Investigations & Economics segment provides accounting, financial and economic analysis, as well as discovery support, data management and analytics, on a wide range of legal and business issues including disputes, investigations and regulatory matters. The clients of this segment are principally companies, along with their in-house counsel and law firms, as well as accounting firms, corporate boards and government agencies.

•The Financial, Risk & Compliance segment provides strategic, operational, valuation, risk management, investigative and compliance consulting to clients in the highly regulated financial services industry, including major financial and insurance institutions. This segment also provides anti-corruption solutions and anti-money laundering, valuation and restructuring consulting, litigation support and tax compliance services to clients in a broad variety of industries.

•The Healthcare segment provides strategic, operational, performance improvement and revenue cycle management solutions to clients across the healthcare landscape including health systems, physician practice groups, health insurance providers, government and life sciences companies. We assist clients on issues such as the shift to an outcomes and value-based reimbursements model, ongoing industry consolidation and reorganization, and the required implementation of a new medical coding system.

•The Energy segment provides management advisory services to utility, government and commercial clients. We focus on creating value for our clients by assisting in their implementation of new business models and creating sustainable excellence on issues ranging from asset investment management, integrated resource planning, renewables, distributed generation, energy efficiency and outage management and restoration. 

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 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 attributable to consultants. Long-term compensation expense attributable to consultants includes share-based compensation expense and compensation expense attributed to certain retention incentives (see Note 7  —Share-based Compensation Expense and Note 8 — Supplemental Consolidated Balance Sheet Information).  During the year ended December 31, 2013, we disposed of a portion of our Financial, Risk & Compliance segment and the results of operations from the disposed business have been classified as discontinued operations.  As such, the segment information reflects results of segment operations on a continuing basis (see Note 3 – Dispositions and Discontinued Operations).

The information presented does not necessarily reflect the results of segment operations that would have occurred had the segments been stand-alone businesses.

Information on the segment operations has been summarized as follows (in thousands):

	For the three months ended				For the six months ended
	June 30,				June 30,
	2014		2013		2014		2013
Revenues before reimbursements:
Disputes, Investigations & Economics	$	76,294	$	76,352	$	152,326	$	153,327
Financial, Risk & Compliance		32,193		40,097		63,604		77,738
Healthcare		54,446		46,814		99,181		90,397
Energy		23,571		23,803		46,449		48,738
Total revenues before reimbursements	$	186,504	$	187,066	$	361,560	$	370,200
Total revenues:
Disputes, Investigations & Economics	$	82,444	$	82,828	$	164,528	$	166,286
Financial, Risk & Compliance		38,224		46,939		76,222		94,268
Healthcare		60,476		52,383		110,842		101,574
Energy		26,953		27,505		54,253		57,026
Total revenues	$	208,097	$	209,655	$	405,845	$	419,154
Segment operating profit:
Disputes, Investigations & Economics	$	26,213	$	25,393	$	50,931	$	51,210
Financial, Risk & Compliance		13,541		16,791		27,009		30,938
Healthcare		15,475		18,110		29,504		33,914
Energy		7,009		8,075		13,496		16,871
Total segment operating profit		62,238		68,369		120,940		132,933
Segment reconciliation to income from continuing operations before income tax (benefit) expense:
Reconciling items:
General and administrative expenses		34,237		32,556		67,339		65,122
Depreciation expense		4,953		4,100		9,262		7,830
Amortization expense		1,633		1,713		2,995		3,411
Other operating costs (benefit), net		119,805		290		118,645		(1,217)
Long-term compensation expense attributable to consultants (including share-based compensation expense)		2,526		3,663		6,300		8,145
Operating income (loss)		(100,916)		26,047		(83,601)		49,642
Interest and other expense, net		1,512		1,066		2,343		1,980
Income (loss) from continuing operations before income tax (benefit) expense	$	(102,428)	$	24,981	$	(85,944)	$	47,662

Total assets allocated by segment include accounts receivable (net), certain retention-related prepaid assets, intangible assets and goodwill. The remaining assets are unallocated. Allocated assets by segment were as follows (in thousands):

	June 30,		December 31,
	2014		2013
Disputes, Investigations & Economics	$	342,628	$	443,417
Financial, Risk & Compliance		94,750		89,498
Healthcare		285,236		173,066
Energy		99,464		101,851
Unallocated assets		112,256		96,365
Total assets	$	934,334	$	904,197