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 wholly owned, direct or indirect, subsidiaries.

The following financial information presents condensed consolidating balance sheets, statements of comprehensive income 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 as of March 31, 2018



	FTI Consulting		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	8,406	$	157	$	143,481	$	—		$	152,044
Accounts receivable, net	185,359		181,692		216,537		—			583,588
Intercompany receivables	—		1,114,635		5,251		(1,119,886		)	—
Other current assets	28,620		23,096		28,430		—			80,146
Total current assets	222,385		1,319,580		393,699		(1,119,886		)	815,778
Property and equipment, net	39,967		12,508		23,111		—			75,586
Goodwill	570,876		416,053		221,082		—			1,208,011
Other intangible assets, net	17,552		10,838		28,160		(14,160		)	42,390
Investments in subsidiaries	2,224,753		544,824		—		(2,769,577		)	—
Other assets	32,297		65,651		36,739		—			134,687
Total assets	$	3,107,830	$	2,369,454	$	702,791	$	(3,903,623	)	$	2,276,452
Liabilities
Intercompany payables	$	1,119,886	$	—	$	—	$	(1,119,886	)	$	—
Other current liabilities	110,376		128,921		104,170		—			343,467
Total current liabilities	1,230,262		128,921		104,170		(1,119,886		)	343,467
Long-term debt, net	441,473		—		—		—			441,473
Other liabilities	198,661		10,308		45,109		—			254,078
Total liabilities	1,870,396		139,229		149,279		(1,119,886		)	1,039,018
Stockholders' equity	1,237,434		2,230,225		553,512		(2,783,737		)	1,237,434
Total liabilities and stockholders' equity	$	3,107,830	$	2,369,454	$	702,791	$	(3,903,623	)	$	2,276,452

Condensed Consolidating Balance Sheet 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 Statement of Comprehensive Income for the Three Months Ended March 31, 2018



	FTI Consulting		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	185,321	$	157,129		$	157,772		$	(2,448	)	$	497,774
Operating expenses
Direct cost of revenues	115,460		109,398			98,597			(2,338		)	321,117
Selling, general and administrative expenses	50,681		28,980			32,577			(110		)	112,128
Amortization of other intangible assets	874		414			1,790			(808		)	2,270
	167,015		138,792			132,964			(3,256		)	435,515
Operating income	18,306		18,337			24,808			808			62,259
Other income (expense)	16,930		(309		)	(1,665		)	(23,000		)	(8,044		)
Income before income tax provision	35,236		18,028			23,143			(22,192		)	54,215
Income tax provision (benefit)	4,370		6,040			4,860			—			15,270
Equity in net earnings of subsidiaries	8,079		34,788			—			(42,867		)	—
Net income	$	38,945	$	46,776		$	18,283		$	(65,059	)	$	38,945
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—	$	—		$	10,446		$	—		$	10,446
Other comprehensive income, net of tax	—		—			10,446			—			10,446
Comprehensive income	$	38,945	$	46,776		$	28,729		$	(65,059	)	$	49,391

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	151,807		$	171,026		$	126,103	$	(2,592	)	$	446,344
Operating expenses
Direct cost of revenues	111,258			117,786			82,561		(2,533		)	309,072
Selling, general and administrative expenses	45,798			31,379			30,572		(59		)	107,690
Amortization of other intangible assets	902			540			1,770		(719		)	2,493
	157,958			149,705			114,903		(3,311		)	419,255
Operating income	(6,151		)	21,321			11,200		719			27,089
Other income (expense)	(5,252		)	(427		)	483		—			(5,196		)
Income (loss) before income tax provision	(11,403		)	20,894			11,683		719			21,893
Income tax provision (benefit)	(5,583		)	10,918			2,542		—			7,877
Equity in net earnings of subsidiaries	19,836			8,573			—		(28,409		)	—
Net income	$	14,016		$	18,549		$	9,141	$	(27,690	)	$	14,016
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	7,370	$	—		$	7,370
Other comprehensive income, net of tax	—			—			7,370		—			7,370
Comprehensive income	$	14,016		$	18,549		$	16,511	$	(27,690	)	$	21,386

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2018



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by (used in) operating activities	$	(27,503	)	$	53,809		$	(95,506	)	$	(69,200	)
Investing activities
Purchases of property and equipment	(3,278		)	(2,583		)	(1,819		)	(7,680		)
Other	27			—			—			27
Net cash used in investing activities	(3,251		)	(2,583		)	(1,819		)	(7,653		)
Financing activities
Borrowings under revolving line of credit, net	45,000			—			—			45,000
Deposits	—			—			1,431			1,431
Purchase and retirement of common stock	(14,220		)	—			—			(14,220		)
Net issuance of common stock under equity compensation plans	4,215			—			—			4,215
Payments for acquisition-related contingent consideration	—			(2,502		)	—			(2,502		)
Intercompany transfers	(6,021		)	(48,726		)	54,747			—
Net cash used in financing activities	28,974			(51,228		)	56,178			33,924
Effects of exchange rate changes on cash and cash equivalents	—			—			5,012			5,012
Net increase (decrease) in cash and cash equivalents	(1,780		)	(2		)	(36,135		)	(37,917		)
Cash and cash equivalents, beginning of year	10,186			159			179,616			189,961
Cash and cash equivalents, end of year	$	8,406		$	157		$	143,481		$	152,044

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash used in operating activities	$	(64,127	)	$	(14,723	)	$	(14,237	)	$	(93,087	)
Investing activities
Purchases of property and equipment	(1,985		)	(2,396		)	(1,450		)	(5,831		)
Other	127			—			—			127
Net cash used in investing activities	(1,858		)	(2,396		)	(1,450		)	(5,704		)
Financing activities
Borrowings under revolving line of credit, net	37,000			—			—			37,000
Deposits	—			—			3,069			3,069
Purchase and retirement of common stock	(36,918		)	—			—			(36,918		)
Net issuance of common stock under equity compensation plans	(812		)	—			—			(812		)
Intercompany transfers	37,666			17,120			(54,786		)	—
Net cash provided by (used in) financing activities	36,936			17,120			(51,717		)	2,339
Effects of exchange rate changes on cash and cash equivalents	—			—			1,253			1,253
Net increase (decrease) in cash and cash equivalents	(29,049		)	1			(66,151		)	(95,199		)
Cash and cash equivalents, beginning of year	47,420			156			168,582			216,158
Cash and cash equivalents, end of year	$	18,371		$	157		$	102,431		$	120,959