Supplemental Condensed Consolidating Guarantor And Non-Guarantor Financial Information

9 Months Ended

Sep. 30, 2011

Supplemental Condensed Consolidating Guarantor And Non-Guarantor Financial Information [Abstract]

Supplemental Condensed Consolidating Guarantor And Non-Guarantor Financial Information

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Substantially all of our domestic subsidiaries are guarantors of borrowings under our senior bank credit facility, senior notes and our Convertible 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 income and statements of cash flows for FTI Consulting, Inc., all the guarantor subsidiaries, all the non-guarantor subsidiaries and the eliminations necessary to arrive at the consolidated information for FTI Consulting, Inc. 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 September 30, 2011

	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	57,930	$	410	$	69,890	$	—		$	128,230
Restricted cash		8,632		—		1,599		—			10,231
Accounts receivable, net		172,452		176,418		120,166		—			469,036
Intercompany receivables		133,156		509,991		66,338		(709,485	)		—
Other current assets		26,413		14,782		28,811		—			70,006
Total current assets		398,583		701,601		286,804		(709,485	)		677,503
Property and equipment, net		45,070		13,041		16,916		—			75,027
Goodwill		547,784		423,557		324,338		—			1,295,679
Other intangible assets, net		40,279		37,270		47,074		—			124,623
Investments in subsidiaries		1,492,271		524,135		—		(2,016,406	)		—
Other assets		68,283		63,968		21,436		—			153,687
Total assets	$	2,592,270	$	1,763,572	$	696,568	$	(2,725,891	)	$	2,326,519
Liabilities
Intercompany payables	$	529,628	$	97,857	$	82,000	$	(709,485	)	$	—
Other current liabilities		275,148		106,377		64,561		—			446,086
Total current liabilities		804,776		204,234		146,561		(709,485	)		446,086
Long-term debt, net		622,488		23,000		—		—			645,488
Other liabilities		113,237		44,107		25,832		—			183,176
Total liabilities		1,540,501		271,341		172,393		(709,485	)		1,274,750
Stockholders' equity		1,051,769		1,492,231		524,175		(2,016,406	)		1,051,769
Total liabilities and stockholders' equity	$	2,592,270	$	1,763,572	$	696,568	$	(2,725,891	)	$	2,326,519

Condensed Consolidating Balance Sheet Information as of December 31, 2010

	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	292,738	$	1,430	$	90,402	$	—		$	384,570
Restricted cash		8,633		—		1,885		—			10,518
Accounts receivable, net		109,663		140,328		76,086		—			326,077
Intercompany receivables		51,702		495,306		96,160		(643,168	)		—
Other current assets		28,374		15,533		25,910		—			69,817
Total current assets		491,110		652,597		290,443		(643,168	)		790,982
Property and equipment, net		47,091		13,893		12,254		—			73,238
Goodwill		426,866		541,395		301,186		—			1,269,447
Other intangible assets, net		5,906		79,984		49,080		—			134,970
Investments in subsidiaries		1,618,032		512,070		—		(2,130,102	)		—
Other assets		57,998		58,560		20,293		—			136,851
Total assets	$	2,647,003	$	1,858,499	$	673,256	$	(2,773,270	)	$	2,405,488
Liabilities
Intercompany payables	$	488,860	$	70,622	$	83,686	$	(643,168	)	$	—
Other current liabilities		132,765		103,983		49,554		—			286,302
Total current liabilities		621,625		174,605		133,240		(643,168	)		286,302
Long-term debt, net		756,515		29,048		—		—			785,563
Other liabilities		101,257		39,813		24,947		—			166,017
Total liabilities		1,479,397		243,466		158,187		(643,168	)		1,237,882
Stockholders' equity		1,167,606		1,615,033		515,069		(2,130,102	)		1,167,606
Total liabilities and stockholders' equity	$	2,647,003	$	1,858,499	$	673,256	$	(2,773,270	)	$	2,405,488

Condensed Consolidating Statement of Income for the Three Months Ended September 30, 2011

	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	157,053		$	253,165		$	103,795	$	(100,211	)	$	413,802
Operating expenses
Direct cost of revenues		99,635			181,359			66,111		(97,130	)		249,975
Selling, general and administrative expense		43,053			31,347			27,243		(3,081	)		98,562
Amortization of other intangible assets		1,467			2,667			1,709		—			5,843
Operating income		12,898			37,792			8,732		—			59,422
Other (expense) income		(14,067	)		(1,890	)		2,124		—			(13,833	)
Income (loss) before income tax provision		(1,169	)		35,902			10,856		—			45,589
Income tax provision		209			15,082			859		—			16,150
Equity in net earnings of subsidiaries		30,817			(8,498	)		—		(22,319	)		—
Net income	$	29,439		$	12,322		$	9,997	$	(22,319	)	$	29,439

Condensed Consolidating Statement of Income for the Three Months Ended September 30, 2010

	FTI Consulting, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	126,096		$	284,454	$	78,860		$	(143,270	)	$	346,140
Operating expenses
Direct cost of revenues		74,811			221,606		51,209			(140,795	)		206,831
Selling, general and administrative expense		36,458			34,287		17,845			(2,475	)		86,115
Amortization of other intangible assets		698			3,912		1,676			—			6,286
Operating income		14,129			24,649		8,130			—			46,908
Other (expense) income		(15,134	)		3,627		(3,031	)		—			(14,538	)
Income (loss) before income tax provision		(1,005	)		28,276		5,099			—			32,370
Income tax provision (benefit)		(4,067	)		12,949		3,324			—			12,206
Equity in net earnings of subsidiaries		17,102			1,497		2,168			(20,767	)		—
Net income	$	20,164		$	16,824	$	3,943		$	(20,767	)	$	20,164

Condensed Consolidating Statement of Income for the Nine Months Ended September 30, 2011

	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	427,804		$	760,553		$	284,186		$	(296,488	)	$	1,176,055
Operating expenses
Direct cost of revenues		281,576			545,080			185,699			(288,452	)		723,903
Selling, general and administrative expense		119,639			96,038			75,261			(8,036	)		282,902
Special charges		8,561			228			6,423			—			15,212
Amortization of other intangible assets		2,346			9,526			4,923			—			16,795
Operating income		15,682			109,681			11,880			—			137,243
Other (expense) income		(39,747	)		(1,333	)		2,360			—			(38,720	)
Income (loss) before income tax provision		(24,065	)		108,348			14,240			—			98,523
Income tax (benefit) provision		(9,998	)		45,216			(717	)		—			34,501
Equity in net earnings of subsidiaries		78,089			(4,121	)		—			(73,968	)		—
Net income	$	64,022		$	59,011		$	14,957		$	(73,968	)	$	64,022

Condensed Consolidating Statement of Income for the Nine Months Ended September 30, 2010

	FTI Consulting, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	388,355		$	887,300	$	225,294		$	(455,736	)	$	1,045,213
Operating expenses
Direct cost of revenues		233,467			688,992		144,085			(448,904	)		617,640
Selling, general and administrative expense		110,917			99,656		49,455			(6,832	)		253,196
Special charges		17,669			10,842		845			—			29,356
Amortization of other intangible assets		2,118			11,933		4,178			—			18,229
Operating income		24,184			75,877		26,731			—			126,792
Other (expense) income		(35,584	)		8,369		(7,806	)		—			(35,021	)
Income (loss) before income tax provision		(11,400	)		84,246		18,925			—			91,771
Income tax provision		(4,788	)		36,119		3,311			—			34,642
Equity in net earnings of subsidiaries		63,741			14,463		6,441			(84,645	)		—
Net income	$	57,129		$	62,590	$	22,055		$	(84,645	)	$	57,129

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2011

	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(18,645	)	$	77,208		$	(11,715	)	$	46,848
Investing activities
Payments for acquisition of businesses, including contingent payments, net of cash received		(33,735	)		—			(28,611	)		(62,346	)
Purchases of property and equipment		(7,644	)		(10,210	)		(6,741	)		(24,595	)
Other		(127	)		—			—			(127	)
Net cash used in investing activities		(41,506	)		(10,210	)		(35,352	)		(87,068	)
Financing activities
Borrowings under revolving line of credit		25,000			—			—			25,000
Payments under revolving line of credit		(25,000	)		—			—			(25,000	)
Payments of long-term debt and capital lease obligations		(6,806	)		(161	)		—			(6,967	)
Net issuance of common stock and other		796			—			—			796
Purchase and retirement of common stock		(209,400	)		—			—			(209,400	)
Excess tax benefits from share-based compensation		198			—			—			198
Intercompany transfers		40,555			(67,857	)		27,302			—
Net cash (used in) provided by financing activities		(174,657	)		(68,018	)		27,302			(215,373	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(747	)		(747	)
Net decrease in cash and cash equivalents		(234,808	)		(1,020	)		(20,512	)		(256,340	)
Cash and cash equivalents, beginning of period		292,738			1,430			90,402			384,570
Cash and cash equivalents, end of period	$	57,930		$	410		$	69,890		$	128,230

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2010

	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by (used in) operating activities	$	21,428		$	80,032		$	(5,594	)	$	95,866
Investing activities
Payments for acquisition of businesses, including contingent payments, net of cash received		(60,273	)		—			—			(60,273	)
Purchases of property and equipment and other		(5,907	)		(6,338	)		(3,055	)		(15,300	)
Proceeds from sale or maturity of short-term investments		15,000			—			—			15,000
Net cash used in investing activities		(51,180	)		(6,338	)		(3,055	)		(60,573	)
Financing activities
Borrowings under revolving line of credit		20,000			—			—			20,000
Payments of revolving linet of credit		(20,000	)		—			—			(20,000	)
Payments of long-term debt and capital lease obligations		(190,024	)		(428	)		—			(190,452	)
Issuance of debt securities, net		391,647			—			—			391,647
Payments of debt financing fees		(2,843	)		—			—			(2,843	)
Purchase and retirement of common stock		(26,138	)		—			—			(26,138	)
Net issuance of common stock and other		5,046			—			—			5,046
Excess tax benefits from share-based compensation		761			—			—			761
Intercompany transfers		48,625			(72,148	)		23,523			—
Net cash provided by (used in) financing activities		227,074			(72,576	)		23,523			178,021
Effect of exchange rate changes on cash		—			—			(1,004	)		(1,004	)
Net increase in cash and cash equivalents		197,322			1,118			13,870			212,310
Cash and cash equivalents, beginning of period		60,720			665			57,487			118,872
Cash and cash equivalents, end of period	$	258,042		$	1,783		$	71,357		$	331,182