Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Substantially all of our domestic subsidiaries are guarantors of borrowings under our Credit Facility and 2022 Notes. The guarantees are full and unconditional and joint and several. All of our guarantors are 100% owned, direct or indirect, subsidiaries.

The following financial information presents condensed consolidating balance sheets, statements of comprehensive income (loss) and statements of cash flows for FTI Consulting, all the guarantor subsidiaries, all the non-guarantor subsidiaries and the eliminations necessary to arrive at the consolidated information for FTI Consulting and its subsidiaries. For purposes of this presentation, we have accounted for our investments in our subsidiaries using the equity method of accounting. The principal eliminating entries eliminate investment in subsidiary and intercompany balances and transactions.

Condensed Consolidating Balance Sheet Information as of December 31, 2017



	FTI Consulting		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	10,186	$	159	$	179,616	$	—		$	189,961
Accounts receivable, net	155,124		156,859		210,895		—			522,878
Intercompany receivables	—		1,093,211		32,695		(1,125,906		)	—
Other current assets	31,933		21,840		27,567		—			81,340
Total current assets	197,243		1,272,069		450,773		(1,125,906		)	794,179
Property and equipment, net	39,137		13,572		22,366		—			75,075
Goodwill	570,876		416,053		217,874		—			1,204,803
Other intangible assets, net	18,426		11,251		29,441		(14,968		)	44,150
Investments in subsidiaries	2,175,362		566,911		—		(2,742,273		)	—
Other assets	34,454		60,566		44,014		—			139,034
Total assets	$	3,035,498	$	2,340,422	$	764,468	$	(3,883,147	)	$	2,257,241
Liabilities
Intercompany payables	$	1,125,906	$	—	$	—	$	(1,125,906	)	$	—
Other current liabilities	127,295		144,474		138,559		—			410,328
Total current liabilities	1,253,201		144,474		138,559		(1,125,906		)	410,328
Long-term debt, net	396,284		—		—		—			396,284
Other liabilities	194,042		14,753		49,863		—			258,658
Total liabilities	1,843,527		159,227		188,422		(1,125,906		)	1,065,270
Stockholders' equity	1,191,971		2,181,195		576,046		(2,757,241		)	1,191,971
Total liabilities and stockholders' equity	$	3,035,498	$	2,340,422	$	764,468	$	(3,883,147	)	$	2,257,241

Condensed Consolidating Balance Sheet Information as of December 31, 2016



	FTI Consulting		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	47,420	$	156	$	168,582	$	—		$	216,158
Accounts receivable, net	137,523		163,820		173,554		—			474,897
Intercompany receivables	—		1,029,800		—		(1,029,800		)	—
Other current assets	44,708		24,944		22,464		—			92,116
Total current assets	229,651		1,218,720		364,600		(1,029,800		)	783,171
Property and equipment, net	25,466		14,118		22,272		—			61,856
Goodwill	558,978		416,053		204,970		—			1,180,001
Other intangible assets, net	21,959		13,393		34,725		(17,957		)	52,120
Investments in subsidiaries	2,065,819		490,634		—		(2,556,453		)	—
Other assets	47,308		65,398		35,514		—			148,220
Total assets	$	2,949,181	$	2,218,316	$	662,081	$	(3,604,210	)	$	2,225,368
Liabilities
Intercompany payables	$	1,027,050	$	—	$	2,750	$	(1,029,800	)	$	—
Other current liabilities	137,710		129,810		110,935		—			378,455
Total current liabilities	1,164,760		129,810		113,685		(1,029,800		)	378,455
Long-term debt, net	365,528		—		—		—			365,528
Other liabilities	211,535		16,411		46,081		—			274,027
Total liabilities	1,741,823		146,221		159,766		(1,029,800		)	1,018,010
Stockholders' equity	1,207,358		2,072,095		502,315		(2,574,410		)	1,207,358
Total liabilities and stockholders' equity	$	2,949,181	$	2,218,316	$	662,081	$	(3,604,210	)	$	2,225,368

Condensed Consolidating Statement of Comprehensive Income for the Year Ended December 31, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	652,604		$	603,294		$	561,250	$	(9,416	)	$	1,807,732
Operating expenses
Direct cost of revenues	438,395			421,826			364,545		(9,206		)	1,215,560
Selling, general and administrative expenses	181,713			125,552			122,667		(210		)	429,722
Special charges	15,414			13,010			12,461		—			40,885
Acquisition-related contingent consideration	279			2,012			—		—			2,291
Amortization of other intangible assets	4,393			2,141			7,018		(2,989		)	10,563
	640,194			564,541			506,691		(12,405		)	1,699,021
Operating income	12,410			38,753			54,559		2,989			108,711
Other income (expense)	(23,684		)	(5,932		)	8,010		—			(21,606		)
Income (loss) before income tax provision (benefit)	(11,274		)	32,821			62,569		2,989			87,105
Income tax provision (benefit)	11,070			(43,846		)	11,919		—			(20,857		)
Equity in net earnings of subsidiaries	130,306			42,990			—		(173,296		)	—
Net income	$	107,962		$	119,657		$	50,650	$	(170,307	)	$	107,962
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	30,664	$	—		$	30,664
Other comprehensive loss, net of tax	—			—			30,664		—			30,664
Comprehensive income	$	107,962		$	119,657		$	81,314	$	(170,307	)	$	138,626

Condensed Consolidating Statement of Comprehensive Income for the Year Ended December 31, 2016



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	671,408		$	625,950		$	522,757		$	(9,721	)	$	1,810,394
Operating expenses
Direct cost of revenues	447,254			428,158			344,820			(9,461		)	1,210,771
Selling, general and administrative expenses	190,546			124,019			120,247			(260		)	434,552
Special charges	2,916			6,242			1,287			—			10,445
Acquisition-related contingent consideration	6			2,158			—			—			2,164
Amortization of other intangible assets	3,903			2,179			7,308			(3,084		)	10,306
	644,625			562,756			473,662			(12,805		)	1,668,238
Operating income	26,783			63,194			49,095			3,084			142,156
Other income (expense)	(27,228		)	(2,811		)	15,686			—			(14,353		)
Income (loss) before income tax provision	(445		)	60,383			64,781			3,084			127,803
Income tax provision	1,222			27,961			13,100			—			42,283
Equity in net earnings of subsidiaries	87,187			45,412			—			(132,599		)	—
Net income	$	85,520		$	77,834		$	51,681		$	(129,515	)	$	85,520
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	(41,884	)	$	—		$	(41,884	)
Other comprehensive loss, net of tax	—			—			(41,884		)	—			(41,884		)
Comprehensive income	$	85,520		$	77,834		$	9,797		$	(129,515	)	$	43,636

Condensed Consolidating Statement of Comprehensive Income for the Year Ended December 31, 2015



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	667,259		$	754,458		$	504,429		$	(146,997	)	$	1,779,149
Operating expenses
Direct cost of revenues	428,356			551,829			337,856			(146,597		)	1,171,444
Selling, general and administrative expenses	189,607			121,112			122,348			(399		)	432,668
Acquisition-related contingent consideration	(1,408		)	208			—			—			(1,200		)
Amortization of other intangible assets	3,944			2,861			8,442			(3,521		)	11,726
	620,499			676,010			468,646			(150,517		)	1,614,638
Operating income	46,760			78,448			35,783			3,520			164,511
Other income (expense)	(64,554		)	(4,881		)	10,310			—			(59,125		)
Income (loss) before income tax provision (benefit)	(17,794		)	73,567			46,093			3,520			105,386
Income tax provision (benefit)	(6,944		)	35,579			10,698			—			39,333
Equity in net earnings of subsidiaries	76,903			31,744			—			(108,647		)	—
Net income	$	66,053		$	69,732		$	35,395		$	(105,127	)	$	66,053
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	(28,727	)	$	—		$	(28,727	)
Other comprehensive loss, net of tax	—			—			(28,727		)	—			(28,727		)
Comprehensive income	$	66,053		$	69,732		$	6,668		$	(105,127	)	$	37,326

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	25,400		$	80,468		$	41,757		$	147,625
Investing activities
Payments for acquisition of businesses, net of cash received	(8,929		)	—			—			(8,929		)
Purchases of property and equipment and other	(14,265		)	(11,893		)	(5,846		)	(32,004		)
Other	295			—			—			295
Net cash used in investing activities	(22,899		)	(11,893		)	(5,846		)	(40,638		)
Financing activities
Borrowings under revolving line of credit, net	30,000			—			—			30,000
Deposits	—			—			2,825			2,825
Purchase and retirement of common stock	(168,094		)	—			—			(168,094		)
Net issuance of common stock under equity compensation plans	(504		)	—			—			(504		)
Payments for acquisition-related contingent consideration	—			(5,161		)	—			(5,161		)
Intercompany transfers	98,863			(63,411		)	(35,452		)	—
Net cash used in financing activities	(39,735		)	(68,572		)	(32,627		)	(140,934		)
Effects of exchange rate changes on cash and cash equivalents	—			—			7,750			7,750
Net increase (decrease) in cash and cash equivalents	(37,234		)	3			11,034			(26,197		)
Cash and cash equivalents, beginning of year	47,420			156			168,582			216,158
Cash and cash equivalents, end of year	$	10,186		$	159		$	179,616		$	189,961

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2016



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	46,908		$	123,101		$	63,479		$	233,488
Investing activities
Payments for acquisition of businesses, net of cash received	—			—			(1,251		)	(1,251		)
Purchases of property and equipment and other	(3,576		)	(20,185		)	(5,174		)	(28,935		)
Other	54			—			—			54
Net cash used in investing activities	(3,522		)	(20,185		)	(6,425		)	(30,132		)
Financing activities
Borrowings under revolving line of credit, net	(130,000		)	—			—			(130,000		)
Deposits	—			—			4,006			4,006
Purchase and retirement of common stock	(21,489		)	—			—			(21,489		)
Net issuance of common stock under equity compensation plans	21,708			—			—			21,708
Payments for acquisition-related contingent consideration	(210		)	(656		)	—			(866		)
Other	1,331			—			—			1,331
Intercompany transfers	97,483			(102,269		)	4,786			—
Net cash (used in) provided by financing activities	(31,177		)	(102,925		)	8,792			(125,310		)
Effects of exchange rate changes on cash and cash equivalents	—			—			(11,648		)	(11,648		)
Net increase (decrease) in cash and cash equivalents	12,209			(9		)	54,198			66,398
Cash and cash equivalents, beginning of year	35,211			165			114,384			149,760
Cash and cash equivalents, end of year	$	47,420		$	156		$	168,582		$	216,158

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2015



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	14,815		$	83,516		$	41,589		$	139,920
Investing activities
Payments for acquisition of businesses, net of cash received	—			—			(575		)	(575		)
Purchases of property and equipment and other	(9,192		)	(16,487		)	(5,720		)	(31,399		)
Other	79			—			158			237
Net cash used in investing activities	(9,113		)	(16,487		)	(6,137		)	(31,737		)
Financing activities
Borrowings under revolving line of credit, net	200,000			—			—			200,000
Payments of long-term debt	(425,671		)	—			—			(425,671		)
Payments of debt financing fees	(3,843		)	—			—			(3,843		)
Deposits	—			—			3,227			3,227
Purchase and retirement of common stock	(26,532		)	—			—			(26,532		)
Net issuance of common stock under equity compensation plans	16,666			—			—			16,666
Payments for acquisition-related contingent consideration	(451		)	(294		)	—			(745		)
Other	936			—			—			936
Intercompany transfers	97,314			(66,729		)	(30,585		)	—
Net cash provided by (used in) financing activities	(141,581		)	(67,023		)	(27,358		)	(235,962		)
Effects of exchange rate changes on cash and cash equivalents	—			—			(6,141		)	(6,141		)
Net increase (decrease) in cash and cash equivalents	(135,879		)	6			1,953			(133,920		)
Cash and cash equivalents, beginning of year	171,090			159			112,431			283,680
Cash and cash equivalents, end of year	$	35,211		$	165		$	114,384		$	149,760