Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Substantially all domestic subsidiaries are guarantors of borrowings under our Credit Facility and 2022 Notes. The guarantees are full and unconditional and joint and several. 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 June 30, 2018



	FTI Consulting		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	14,117	$	151	$	102,288	$	—		$	116,556
Accounts receivable, net	194,004		194,976		218,475		—			607,455
Intercompany receivables	—		1,123,906		—		(1,123,906		)	—
Other current assets	33,030		24,765		25,630		—			83,425
Total current assets	241,151		1,343,798		346,393		(1,123,906		)	807,436
Property and equipment, net	37,147		13,397		24,502		—			75,046
Goodwill	570,876		416,053		211,803		—			1,198,732
Other intangible assets, net	16,678		10,525		25,564		(13,388		)	39,379
Investments in subsidiaries	2,199,577		491,143		—		(2,690,720		)	—
Other assets	34,322		64,889		37,608		—			136,819
Total assets	$	3,099,751	$	2,339,805	$	645,870	$	(3,828,014	)	$	2,257,412
Liabilities
Intercompany payables	$	1,117,874	$	—	$	6,032	$	(1,123,906	)	$	—
Other current liabilities	123,468		124,473		104,363		—			352,304
Total current liabilities	1,241,342		124,473		110,395		(1,123,906		)	352,304
Long-term debt, net	371,662		—		—		—			371,662
Other liabilities	210,946		11,407		35,292		—			257,645
Total liabilities	1,823,950		135,880		145,687		(1,123,906		)	981,611
Stockholders' equity	1,275,801		2,203,925		500,183		(2,704,108		)	1,275,801
Total liabilities and stockholders' equity	$	3,099,751	$	2,339,805	$	645,870	$	(3,828,014	)	$	2,257,412

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 June 30, 2018



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	187,569		$	159,288		$	166,503		$	(1,262	)	$	512,098
Operating expenses
Direct cost of revenues	115,751			110,665			105,334			(1,432		)	330,318
Selling, general and administrative expenses	53,472			30,494			33,797			134			117,897
Amortization of other intangible assets	874			313			1,637			(772		)	2,052
	170,097			141,472			140,768			(2,070		)	450,267
Operating income	17,472			17,816			25,735			808			61,831
Other income (expense)	(32,179		)	(572		)	5,642			23,000			(4,109		)
Income (loss) before income tax provision	(14,707		)	17,244			31,377			23,808			57,722
Income tax provision	2,547			4,977			6,589			—			14,113
Equity in net earnings of subsidiaries	60,863			32,779			—			(93,642		)	—
Net income	$	43,609		$	45,046		$	24,788		$	(69,834	)	$	43,609
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	(23,683	)	$	—		$	(23,683	)
Other comprehensive loss, net of tax	—			—			(23,683		)	—			(23,683		)
Comprehensive income	$	43,609		$	45,046		$	1,105		$	(69,834	)	$	19,926

Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended June 30, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	163,649		$	151,716		$	131,480		$	(2,130	)	$	444,715
Operating expenses
Direct cost of revenues	108,445			108,388			89,307			(2,069		)	304,071
Selling, general and administrative expenses	45,908			31,730			30,542			(61		)	108,119
Special charges	13,592			7,306			9,176			—			30,074
Amortization of other intangible assets	883			540			1,741			(742		)	2,422
	168,828			147,964			130,766			(2,872		)	444,686
Operating income (loss)	(5,179		)	3,752			714			742			29
Other income (expense)	(5,361		)	(71		)	774			—			(4,658		)
Income (loss) before income tax provision	(10,540		)	3,681			1,488			742			(4,629		)
Income tax provision (benefit)	(7,034		)	4,219			3,342			—			527
Equity in net earnings of subsidiaries	(1,650		)	(3,862		)	—			5,512			—
Net loss	$	(5,156	)	$	(4,400	)	$	(1,854	)	$	6,254		$	(5,156	)
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	10,174		$	—		$	10,174
Other comprehensive income, net of tax	—			—			10,174			—			10,174
Comprehensive income (loss)	$	(5,156	)	$	(4,400	)	$	8,320		$	6,254		$	5,018

Condensed Consolidating Statement of Comprehensive Income for the Six Months Ended June 30, 2018



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	372,890		$	316,417		$	324,275		$	(3,710	)	$	1,009,872
Operating expenses
Direct cost of revenues	231,211			220,063			203,931			(3,770		)	651,435
Selling, general and administrative expenses	104,153			59,474			66,374			24			230,025
Amortization of other intangible assets	1,748			727			3,427			(1,580		)	4,322
	337,112			280,264			273,732			(5,326		)	885,782
Operating income	35,778			36,153			50,543			1,616			124,090
Other income (expense)	(15,249		)	(881		)	3,977			—			(12,153		)
Income before income tax provision	20,529			35,272			54,520			1,616			111,937
Income tax provision	6,917			11,017			11,449			—			29,383
Equity in net earnings of subsidiaries	68,942			67,567			—			(136,509		)	—
Net income	$	82,554		$	91,822		$	43,071		$	(134,893	)	$	82,554
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	(13,237	)	$	—		$	(13,237	)
Other comprehensive loss, net of tax	—			—			(13,237		)	—			(13,237		)
Comprehensive income	$	82,554		$	91,822		$	29,834		$	(134,893	)	$	69,317

Condensed Consolidating Statement of Comprehensive Income for the Six Months Ended June 30, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	315,456		$	322,742		$	257,583	$	(4,722	)	$	891,059
Operating expenses
Direct cost of revenues	219,703			226,174			171,868		(4,602		)	613,143
Selling, general and administrative expenses	91,706			63,109			61,114		(120		)	215,809
Special charges	13,592			7,306			9,176		—			30,074
Amortization of other intangible assets	1,785			1,080			3,511		(1,461		)	4,915
	326,786			297,669			245,669		(6,183		)	863,941
Operating income (loss)	(11,330		)	25,073			11,914		1,461			27,118
Other income (expense)	(10,613		)	(498		)	1,257		—			(9,854		)
Income (loss) before income tax provision	(21,943		)	24,575			13,171		1,461			17,264
Income tax provision (benefit)	(12,617		)	15,137			5,884		—			8,404
Equity in net earnings of subsidiaries	18,186			4,711			—		(22,897		)	—
Net income	$	8,860		$	14,149		$	7,287	$	(21,436	)	$	8,860
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	17,544	$	—		$	17,544
Other comprehensive income, net of tax	—			—			17,544		—			17,544
Comprehensive income	$	8,860		$	14,149		$	24,831	$	(21,436	)	$	26,404

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2018



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by (used in) operating activities	$	37,040		$	65,711		$	(137,336	)	$	(34,585	)
Investing activities
Purchases of property and equipment	(4,376		)	(5,181		)	(6,663		)	(16,220		)
Other	39			—			650			689
Net cash used in investing activities	(4,337		)	(5,181		)	(6,013		)	(15,531		)
Financing activities
Repayments under revolving line of credit, net	(25,000		)	—			—			(25,000		)
Deposits	—			—			2,602			2,602
Purchase and retirement of common stock	(14,220		)	—			—			(14,220		)
Net issuance of common stock under equity compensation plans	18,740			—			—			18,740
Payments for acquisition-related contingent consideration	(500		)	(2,529		)	—			(3,029		)
Intercompany transfers	(7,792		)	(58,009		)	65,801			—
Net cash provided by (used in) financing activities	(28,772		)	(60,538		)	68,403			(20,907		)
Effects of exchange rate changes on cash and cash equivalents	—			—			(2,382		)	(2,382		)
Net increase (decrease) in cash and cash equivalents	3,931			(8		)	(77,328		)	(73,405		)
Cash and cash equivalents, beginning of year	10,186			159			179,616			189,961
Cash and cash equivalents, end of year	$	14,117		$	151		$	102,288		$	116,556

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by (used in) operating activities	$	(56,917	)	$	1,386		$	(26,669	)	$	(82,200	)
Investing activities
Purchases of property and equipment	(5,440		)	(4,655		)	(3,032		)	(13,127		)
Other	72			—			—			72
Net cash used in investing activities	(5,368		)	(4,655		)	(3,032		)	(13,055		)
Financing activities
Borrowings under revolving line of credit, net	115,000			—			—			115,000
Deposits	—			—			3,262			3,262
Purchase and retirement of common stock	(102,513		)	—			—			(102,513		)
Net issuance of common stock under equity compensation plans	(500		)	—			—			(500		)
Payments for acquisition-related contingent consideration	(79		)	—			—			(79		)
Intercompany transfers	18,070			3,271			(21,341		)	—
Net cash provided by (used in) financing activities	29,978			3,271			(18,079		)	15,170
Effects of exchange rate changes on cash and cash equivalents	—			—			2,438			2,438
Net increase (decrease) in cash and cash equivalents	(32,307		)	2			(45,342		)	(77,647		)
Cash and cash equivalents, beginning of year	47,420			156			168,582			216,158
Cash and cash equivalents, end of year	$	15,113		$	158		$	123,240		$	138,511