Segment Reporting

6 Months Ended

Jun. 30, 2019

We manage our business in five reportable segments: Corporate Finance & Restructuring ("Corporate Finance"), Forensic and Litigation Consulting ("FLC"), Economic Consulting, Technology and Strategic Communications.

Our Corporate Finance segment focuses on the strategic, operational, financial and capital needs of our clients around the world and delivers a wide range of service offerings related to restructuring, business transformation and transaction support. Our restructuring practice includes corporate restructuring, including bankruptcy and interim management services. Our business transformation and transactions practices include financial, operational and performance improvement services, as well as due diligence, financing advisory, mergers and acquisitions (“M&A”) advisory, M&A integration, carveout support and valuations.

Our FLC segment provides law firms, companies, government clients and other interested parties with multidisciplinary, independent dispute advisory, investigations, data analytics, forensic accounting, business intelligence and risk mitigation services, as well as interim management and performance improvement services for our health solutions practice clients.

Our Economic Consulting segment provides law firms, companies, government entities and other interested parties with analysis of complex economic issues for use in legal, regulatory and international arbitration proceedings, strategic decision making and public policy debates in the U.S. and around the world.

Our Technology segment provides corporations and law firms with a comprehensive and global portfolio of consulting and services for information governance, privacy and security, electronic discovery ("e-discovery") and insight analytics. Our consulting expertise enables clients to more confidently govern, secure, find, analyze and rapidly understand their data in the context of compliance and risk.

Our Strategic Communications segment designs and executes communications strategies for management teams and boards of directors to help them seize opportunities, manage financial, regulatory and reputational challenges, navigate market disruptions, articulate their brand, stake a competitive position, and preserve and grow their operations.

We evaluate the performance of our operating segments based on Adjusted Segment EBITDA, a GAAP financial measure. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We define Total Adjusted Segment EBITDA, a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We use Adjusted Segment EBITDA to internally evaluate the financial performance of our segments because we believe it reflects current core operating performance and provides an indicator of the segment’s ability to generate cash.

The table below presents revenues and Adjusted Segment EBITDA for our reportable segments:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenues
Corporate Finance	$	190,003	$	141,355	$	350,969	$	284,277
FLC	145,870		133,527		284,867		261,566
Economic Consulting	155,502		133,308		297,773		266,417
Technology	55,632		46,429		106,968		87,343
Strategic Communications	59,112		57,479		116,816		110,269
Total revenues	$	606,119	$	512,098	$	1,157,393	$	1,009,872
Adjusted Segment EBITDA
Corporate Finance	$	50,492	$	35,777	$	87,853	$	70,581
FLC	28,241		27,615		60,058		53,372
Economic Consulting	23,313		15,472		47,353		34,608
Technology	12,875		7,508		25,598		13,240
Strategic Communications	10,474		10,967		22,023		20,819
Total Adjusted Segment EBITDA	$	125,395	$	97,339	$	242,885	$	192,620

The table below reconciles net income to Total Adjusted Segment EBITDA:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net income	$	64,598		$	43,609		$	127,243		$	82,554
Add back:
Income tax provision	21,313			14,113			41,243			29,383
Interest income and other	(2,609		)	(2,474		)	(2,768		)	(674		)
Interest expense	4,793			6,583			9,539			12,827
Unallocated corporate expenses	28,892			25,882			50,995			49,770
Segment depreciation expense	6,556			7,574			12,920			14,438
Amortization of intangible assets	1,852			2,052			3,713			4,322
Total Adjusted Segment EBITDA	$	125,395		$	97,339		$	242,885		$	192,620