Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting Measurement Disclosures [Abstract]

Segment Information

5. SEGMENT INFORMATION

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

• The Healthcare segment provides strategic, performance improvement, and business process management solutions. Clients of this segment include healthcare providers, physician enterprises, payers, government agencies 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, the implementation of an electronic health records system, and product planning and commercialization expertise.

• The Energy segment provides full lifecycle solutions that help clients transform their businesses in a rapidly changing energy environment, manage complexity and accelerate operational performance, meet compliance requirements, and transform their organizations and systems. In addition, we provide a broad array of benchmarking, data and market research capabilities related to the energy sector.

• The Financial Services Advisory and Compliance segment provides strategic, operational, 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 consulting, litigation support and tax compliance services to clients in a broad variety of industries.

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 8 — Share-Based Compensation Expense and Note 9 — Supplemental Consolidated Balance Sheet Information).

The information presented does not necessarily reflect the results of segment operations that would have occurred had the reporting 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,
	2019			2018		2019			2018
Revenues before reimbursements:
Healthcare	$	127,431		$	91,594	$	246,434		$	181,743
Energy		40,002			36,644		76,251			70,348
Financial Services Advisory and Compliance		29,134			36,986		60,011			74,578
Total revenues before reimbursements	$	196,567		$	165,224	$	382,696		$	326,669
Total revenues:
Healthcare	$	136,502		$	100,250	$	263,071		$	198,962
Energy		55,450			44,183		99,150			81,820
Financial Services Advisory and Compliance		31,104			40,280		63,697			81,999
Total revenues	$	223,056		$	184,713	$	425,918		$	362,781
Segment operating profit:
Healthcare	$	40,137		$	27,375	$	76,892		$	47,765
Energy		13,135			12,685		23,545			23,413
Financial Services Advisory and Compliance		6,383			13,387		11,614			28,223
Total segment operating profit		59,655			53,447		112,051			99,401
Segment reconciliation to income before income tax expense:
Reconciling items:
General and administrative expenses		35,968			34,912		71,135			71,991
Depreciation expense		4,262			4,943		8,848			9,940
Amortization expense		1,393			1,665		2,765			3,417
Other operating costs, net		-			2,295		32			3,278
Long-term compensation expense attributable to client-service employees (including share-based compensation expense)		3,493			1,344		5,116			2,789
Operating income		14,539			8,288		24,155			7,986
Interest and other (income) expense, net		(68	)		651		(307	)		1,721
Income from continuing operations before income tax expense	$	14,607		$	7,637	$	24,462		$	6,265

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

	June 30,		December 31,
	2019		2018
Healthcare	$	422,586	$	405,283
Energy		144,258		130,052
Financial Services Advisory and Compliance		80,573		85,250
Unallocated assets		260,814		296,962
Total assets	$	908,231	$	917,547