Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

15. Segment Information

Segments are defined by FASB ASC Topic 280, “Segment Reporting”, as components of a company in which separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker manages the business under three operating segments: Health and Education Consulting, Legal Consulting, and Financial Consulting.

• Health and Education Consulting. Our Health and Education Consulting segment provides consulting services to hospitals, health systems, physicians, managed care organizations, academic medical centers, colleges, universities, and pharmaceutical and medical device manufacturers. This segment’s professionals develop and implement solutions to help clients address financial management, strategy, operational and organizational effectiveness,

research administration, and regulatory compliance. This segment also provides consulting services related to hospital or healthcare organization performance improvement, revenue cycle improvement, turnarounds, merger or affiliation strategies, labor productivity, non-labor cost management, information technology, patient flow improvement, physician practice management, interim management, clinical quality and medical management, and governance and board development.

• Legal Consulting. Our Legal Consulting segment provides advisory and business services to assist law departments and law firms with their strategy, organizational design and development, operational efficiency, and cost effectiveness. These results-driven services add value to organizations by helping reduce legal spend and enhance client service. Our expertise focuses on strategic and management consulting, cost management, and technology and information management including matter management, records, document review and discovery services. Included in this segment’s offerings are our V3locity™ solution, which delivers streamlined e-discovery process resulting in more affordable and predictable discovery costs and our IMPACT™ solution, which delivers sustainable cost reductions.

• Financial Consulting. Our Financial Consulting segment assists corporations with complex accounting and financial reporting matters, and provides financial analysis in restructuring and turnaround situations. We have an array of services that are flexible and responsive to event- and transaction-based needs across industries. Our professionals consist of certified public accountants, certified insolvency and restructuring advisors, certified turnaround professionals, and chartered financial analysts who serve attorneys, corporations, and financial institutions as advisors and consultants. We also consult with companies in the areas of corporate governance, Sarbanes-Oxley compliance, and internal audit, and helps companies with critical finance and accounting department projects utilizing on-demand resources.

Segment operating income consists of the revenues generated by a segment, less the direct costs of revenue and selling, general and administrative costs that are incurred directly by the segment. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. These administrative function costs include costs for corporate office support, certain office facility costs, costs relating to accounting and finance, human resources, legal, marketing, information technology and Company-wide business development functions, as well as costs related to overall corporate management.

The table below sets forth information about our operating segments for the three and six months ended June 30, 2011 and 2010, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Health and Education Consulting:
Revenues	$	105,860		$	83,782		$	196,891		$	160,696
Operating income	$	37,764		$	28,799		$	64,131		$	49,865
Segment operating income as a percent of segment revenues		35.7	%		34.4	%		32.6	%		31.0	%
Legal Consulting:
Revenues	$	39,972		$	33,951		$	77,289		$	67,056
Operating income	$	9,629		$	9,302		$	19,224		$	16,721
Segment operating income as a percent of segment revenues		24.1	%		27.4	%		24.9	%		24.9	%
Financial Consulting:
Revenues	$	13,203		$	17,921		$	27,840		$	35,644
Operating income	$	2,454		$	4,961		$	5,829		$	9,479
Segment operating income as a percent of segment revenues		18.6	%		27.7	%		20.9	%		26.6	%
Total Company:
Revenues	$	159,035		$	135,654		$	302,020		$	263,396
Reimbursable expenses		14,470			12,490			27,572			23,989
Total revenues and reimbursable expenses	$	173,505		$	148,144		$	329,592		$	287,385

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Statement of operations reconciliation:
Segment operating income	$	49,847	$	43,062	$	89,184	$	76,065
Charges not allocated at the segment level:
Other selling, general and administrative expenses		22,627		28,662		46,021		49,600
Depreciation and amortization expense		4,394		4,839		8,699		9,466
Other expense, net		3,600		4,017		7,068		6,726
Income from continuing operations before income tax expense	$	19,226	$	5,544	$	27,396	$	10,273