Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Segments are defined by ASC 280, Segment Reporting, as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for 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 five operating segments, which are our reportable segments: Huron Healthcare, Huron Education and Life Sciences, Huron Legal, Huron Business Advisory, and All Other.

• Huron Healthcare

Our Huron Healthcare segment provides consulting services to national and regional hospitals and integrated health systems, academic medical centers, community hospitals, and physician practices. We deliver solutions to enhance the ability of our clients to address challenges in the rapidly-evolving healthcare environment and to improve quality, increase revenue, reduce expenses, and enhance patient, physician, and employee satisfaction across the healthcare enterprise. By partnering with healthcare organizations, we design solutions that teach providers how to achieve cultural transformation and deliver and sustain improvement in clinical outcomes and financial results. Our people provide a depth of expertise across the healthcare industry, and our culture of collaboration extends to our client engagements, enabling teams to effectively implement successful client projects.

•Huron Education and Life Sciences

Our Huron Education and Life Sciences segment provides management consulting services and software solutions to the higher education, academic medical center, pharmaceutical and medical device, and research industries. We work with our clients to develop and implement performance improvement, technology, and research enterprise solutions to help them address challenges relating to financial management, strategy, operational and organizational effectiveness, research administration, and regulatory compliance.

•Huron Legal

Our Huron Legal segment provides consulting and technology-enabled services to assist law departments of major global corporations and their associated law firms with cost and risk reduction and operational efficiency. Our professionals and business solutions focus on four primary areas: electronic discovery and litigation management, law department management, information governance and compliance, and legal analytics. Our clients benefit from the experience of business, discovery, and technical consultants who are experts in the legal, compliance, technology, and management fields.

•Huron Business Advisory

Our Huron Business Advisory segment provides services to the C-suite of middle market and large organizations, lending institutions, law firms, investment banks, and private equity firms. We assist clients in a broad range of industries and across the spectrum from healthy, well-capitalized companies to organizations in transition, creditors, owners, and other key constituents. Also included in the Huron Business Advisory segment is our Enterprise Performance Management and Analytics practice, which delivers solutions that enable organizations to manage and optimize their financial performance, operational efficiency, and client experience. With expertise in full-service enterprise performance management (EPM), business analytics, customer relationship management (CRM), and big data professional services, Huron helps global clients across industries drive results and gain a competitive advantage.

• All Other

Our All Other segment consists of any line of business not managed by our other four operating segments. These businesses include our public sector consulting practice and our foreign consulting operations based in the Middle East, both of which we are in the process of winding down.

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 nine months ended September 30, 2015 and 2014, along with the items necessary to reconcile the segment information to the totals reported in the accompanying Consolidated Financial Statements.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Huron Healthcare:
Revenues	$	112,114		$	97,812		$	328,624		$	306,327
Operating income	$	47,609		$	27,727		$	122,120		$	117,422
Segment operating income as a percentage of segment revenues	42.5		%	28.3		%	37.2		%	38.3		%
Huron Education and Life Sciences:
Revenues	$	42,056		$	36,523		$	124,892		$	107,846
Operating income	$	10,473		$	9,459		$	35,427		$	27,539
Segment operating income as a percentage of segment revenues	24.9		%	25.9		%	28.4		%	25.5		%
Huron Legal:
Revenues	$	34,416		$	46,146		$	107,469		$	154,417
Operating income	$	9,584		$	10,949		$	23,461		$	39,227
Segment operating income as a percentage of segment revenues	27.8		%	23.7		%	21.8		%	25.4		%
Huron Business Advisory:
Revenues	$	21,249		$	17,142		$	59,173		$	47,098
Operating income	$	5,231		$	4,397		$	13,514		$	12,081
Segment operating income as a percentage of segment revenues	24.6		%	25.7		%	22.8		%	25.7		%
All Other:
Revenues	$	46		$	426		$	1,220		$	2,497
Operating loss	$	(132	)	$	(655	)	$	(1,654	)	$	(1,633	)
Segment operating loss as a percentage of segment revenues	N/M			N/M			N/M			N/M
Total Company:
Revenues	$	209,881		$	198,049		$	621,378		$	618,185
Reimbursable expenses	17,356			18,679			55,900			58,923
Total revenues and reimbursable expenses	$	227,237		$	216,728		$	677,278		$	677,108
Statements of Earnings reconciliation:
Segment operating income	$	72,765		$	51,877		$	192,868		$	194,636
Items not allocated at the segment level:
Other operating expenses and gains	26,946			24,285			85,412			78,879
Depreciation and amortization expense	8,994			6,315			25,771			18,638
Other expense, net	6,021			1,932			15,739			4,552
Income before income tax expense	$	30,804		$	19,345		$	65,946		$	92,567

N/M – Not Meaningful

At September 30, 2015 and December 31, 2014, no single client accounted for greater than 10% of our combined receivables and unbilled services balances. During the three and nine months ended September 30, 2015 and 2014, no single client generated greater than 10% of our consolidated revenues.