Segment Information

3 Months Ended

Mar. 31, 2017

Segment Information [Abstract]

Segment Information

4.SEGMENT INFORMATION

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

•The Healthcare segment provides consulting services and business process management services. Clients of this segment include healthcare providers, payers and life sciences companies. We help clients respond to market legislative changes such as the shift to an outcomes and value-based reimbursements model, ongoing industry consolidation and reorganization, Medicaid expansion, and the implementation of a new electronic health records system.

•The Energy segment provides advisory services to utilities, governmental agencies, manufacturers and investors. We provide our clients with advisory solutions in business strategy and planning, distributed energy resources and renewables, energy efficiency and demand response, and grid modernization. In addition, we provide a broad array of benchmarking and research services.

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

•The Disputes, Forensics &  Legal Technologysegment’s professional services include accounting, regulatory, constructionand computer forensic expertise, as well as valuation and economic analysis. In addition to these capabilities, our professionals use technological tools to perform eDiscovery services and to deliver custom technology and data analytic solutions. The clients of this segment principally include companies along with their in-house counsel and law firms, as well as accounting firms, corporate boards and government agencies.

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 cost of services excluding long-term compensation expense attributable to client-service employees. Long-term compensation expense attributable to client-service employees 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).  

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
	March 31,
	2017		2016
Revenues before reimbursements:
Healthcare	$	90,546	$	81,667
Energy		32,498		26,896
Financial Services Advisory and Compliance		32,907		33,650
Disputes, Forensics & Legal Technology		80,260		81,262
Total revenues before reimbursements	$	236,211	$	223,475
Total revenues:
Healthcare	$	98,689	$	90,102
Energy		37,722		31,279
Financial Services Advisory and Compliance		36,855		36,907
Disputes, Forensics & Legal Technology		84,571		86,999
Total revenues	$	257,837	$	245,287
Segment operating profit:
Healthcare	$	27,613	$	23,768
Energy		8,879		6,714
Financial Services Advisory and Compliance		11,614		13,506
Disputes, Forensics & Legal Technology		26,339		28,710
Total segment operating profit		74,445		72,698
Segment reconciliation to income before income tax expense:
Reconciling items:
General and administrative expenses		41,484		39,831
Depreciation expense		7,473		6,522
Amortization expense		2,319		2,921
Other operating costs, net		1,306		-
Long-term compensation expense attributable to client-service employees (including share-based compensation expense)		3,286		3,163
Operating income		18,577		20,261
Interest and other expense, net		821		881
Income before income tax expense	$	17,756	$	19,380

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):

	March 31,		December 31,
	2017		2016
Healthcare	$	391,654	$	391,859
Energy		121,148		120,311
Financial Services Advisory and Compliance		98,973		98,846
Disputes, Forensics & Legal Technology		333,136		330,239
Unallocated assets		120,129		113,542
Total assets	$	1,065,040	$	1,054,797