13. 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 comprehensive income and statements of cash flows for FTI, all the guarantor subsidiaries, all the non-guarantor subsidiaries and the eliminations necessary to arrive at the consolidated information for FTI 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 March 31, 2012


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	90,484	$	112	$	91,842	$	—		$	182,438
Restricted cash		8,632		—		1,635		—			10,267
Accounts receivable, net		161,628		164,636		122,711		—			448,975
Intercompany receivables		—		567,126		45,400		(612,526	)		—
Other current assets		30,082		17,148		30,270		—			77,500

Total current assets		290,826		749,022		291,858		(612,526	)		719,180
Property and equipment, net		42,424		14,364		15,019		—			71,807
Goodwill		549,257		439,070		331,675		—			1,320,002
Other intangible assets, net		37,610		31,476		79,646		(34,066	)		114,666
Investments in subsidiaries		1,617,761		541,212		—		(2,158,973	)		—
Other assets		67,333		86,825		26,907		(35,623	)		145,442

Total assets	$	2,605,211	$	1,861,969	$	745,105	$	(2,841,188	)	$	2,371,097

Liabilities
Intercompany payables	$	470,082	$	64,710	$	77,734	$	(612,526	)	$	—
Other current liabilities		255,662		84,437		68,454		—			408,553

Total current liabilities		725,744		149,147		146,188		(612,526	)		408,553
Long-term debt, net		620,330		23,000		—		—			643,330
Other liabilities		109,554		44,025		51,675		(35,623	)		169,631

Total liabilities		1,455,628		216,172		197,863		(648,149	)		1,221,514
Stockholders' equity		1,149,583		1,645,797		547,242		(2,193,039	)		1,149,583

Total liabilities and stockholders' equity	$	2,605,211	$	1,861,969	$	745,105	$	(2,841,188	)	$	2,371,097

Condensed Consolidating Balance Sheet Information as of December 31, 2011


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	161,180	$	197	$	103,046	$	—		$	264,423
Restricted cash		8,632		—		1,581		—			10,213
Accounts receivable, net		148,698		165,871		114,533		—			429,102
Intercompany receivables		—		557,846		59,857		(617,703	)		—
Other current assets		22,599		15,694		28,923		—			67,216

Total current assets		341,109		739,608		307,940		(617,703	)		770,954
Property and equipment, net		44,233		14,240		15,975		—			74,448
Goodwill		547,667		439,068		322,623		—			1,309,358
Other intangible assets, net		38,913		34,692		45,284		—			118,889
Investments in subsidiaries		1,538,883		532,091		—		(2,070,974	)		—
Other assets		70,551		48,529		18,355		—			137,435

Total assets	$	2,581,356	$	1,808,228	$	710,177	$	(2,688,677	)	$	2,411,084

Liabilities
Intercompany payables	$	433,284	$	93,947	$	90,472	$	(617,703	)	$	—
Other current liabilities		316,559		109,651		71,627		—			497,837

Total current liabilities		749,843		203,598		162,099		(617,703	)		497,837
Long-term debt, net		620,579		23,000		—		—			643,579
Other liabilities		104,732		43,297		15,437		—			163,466

Total liabilities		1,475,154		269,895		177,536		(617,703	)		1,304,882
Stockholders' equity		1,106,202		1,538,333		532,641		(2,070,974	)		1,106,202

Total liabilities and stockholders' equity	$	2,581,356	$	1,808,228	$	710,177	$	(2,688,677	)	$	2,411,084

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2012


	FTI Consulting, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	153,581		$	241,716	$	102,058		$	(102,127	)	$	395,228
Operating expenses
Direct cost of revenues		101,175			181,949		62,919			(100,425	)		245,618
Selling, general and administrative expense		47,394			29,052		27,845			(1,702	)		102,589
Acquisition-related contingent consideration		—			—		557			—			557
Amortization of other intangible assets		1,303			2,477		2,556			(819	)		5,517

Operating income		3,709			28,238		8,181			819			40,947
Other (expense) income		(12,987	)		36,182		(232	)		(34,885	)		(11,922	)

Income (loss) before income tax provision		(9,278	)		64,420		7,949			(34,066	)		29,025
Income tax (benefit) provision		(18,714	)		27,814		1,494			—			10,594
Equity in net earnings of subsidiaries		8,995			7,642		—			(16,637	)		—

Net income	$	18,431		$	44,248	$	6,455		$	(50,703	)	$	18,431

Other comprehensive income, net of tax:
Foreign currency translation adjustments including tax expense (benefit) of $0	$	—		$	—	$	12,849		$	—		$	12,849

Other comprehensive income, net of tax		—			—		12,849			—			12,849

Comprehensive income	$	18,431		$	44,248	$	19,304		$	(50,703	)	$	31,280

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2011


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	126,651		$	253,099		$	76,999		$	(94,933	)	$	361,816
Operating expenses
Direct cost of revenues		83,721			180,766			51,579			(92,982	)		223,084
Selling, general and administrative expense		35,888			34,253			20,113			(1,951	)		88,303
Acquisition-related contingent consideration		—			—			796			—			796
Amortization of other intangible assets		274			3,595			1,585			—			5,454

Operating income		6,768			34,485			2,926			—			44,179
Other (expense) income		(13,085	)		(202	)		(23	)		—			(13,310	)

Income (loss) before income tax provision		(6,317	)		34,283			2,903			—			30,869
Income tax (benefit) provision		(2,550	)		13,258			903			—			11,611
Equity in net earnings of subsidiaries		23,025			1,511			—			(24,536	)		—

Net income	$	19,258		$	22,536		$	2,000		$	(24,536	)	$	19,258

Other comprehensive income, net of tax:
Foreign currency translation adjustments including tax benefit of $2,168	$	2,168		$	—		$	12,651		$	—		$	14,819

Other comprehensive income, net of tax		2,168			—			12,651			—			14,819

Comprehensive income	$	21,426		$	22,536		$	14,651		$	(24,536	)	$	34,077

Condensed Consolidating Statement of Cash Flow for the Three Months Ended March 31, 2012


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(62,143	)	$	10,676		$	(6,354	)	$	(57,821	)
Investing activities
Payments for acquisition of businesses, net of cash received		(18,231	)		—			(364	)		(18,595	)
Purchases of property and equipment		(1,315	)		(2,860	)		(581	)		(4,756	)
Other		16			—			—			16

Net cash used in investing activities		(19,530	)		(2,860	)		(945	)		(23,335	)

Financing activities
Payments of long-term debt and capital lease obligations		(125	)		(31	)		—			(156	)
Net issuance of common stock and other		(647	)		—			(370	)		(1,017	)
Excess tax benefits from share-based compensation		55			—			—			55
Intercompany transfers		11,694			(7,870	)		(3,824	)		—

Net cash provided by (used in) financing activities		10,977			(7,901	)		(4,194	)		(1,118	)

Effect of exchange rate changes on cash and cash equivalents		—			—			289			289

Net decrease in cash and cash equivalents		(70,696	)		(85	)		(11,204	)		(81,985	)
Cash and cash equivalents, beginning of period		161,180			197			103,046			264,423

Cash and cash equivalents, end of period	$	90,484		$	112		$	91,842		$	182,438

Condensed Consolidating Statement of Cash Flow for the Three Months Ended March 31, 2011


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash used in operating activities	$	(17,224	)	$	(6,496	)	$	(15,477	)	$	(39,197	)
Investing activities
Payments for acquisition of businesses, net of cash received		(22,982	)		—			(18,860	)		(41,842	)
Purchases of property and equipment		(1,397	)		(2,770	)		(786	)		(4,953	)
Other		(483	)		—			—			(483	)

Net cash used in investing activities		(24,862	)		(2,770	)		(19,646	)		(47,278	)

Financing activities
Borrowings under revolving line of credit		25,000			—			—			25,000
Payments of long-term debt and capital lease obligations		(776	)		(96	)		—			(872	)
Issuance of common stock and other		(838	)		—			—			(838	)
Purchase and retirement of common stock		(209,400	)		—			—			(209,400	)
Excess tax benefits from share-based compensation		43			—			—			43
Intercompany transfers		(37,435	)		8,535			28,900			—

Net cash (used in) provided by financing activities		(223,406	)		8,439			28,900			(186,067	)

Effect of exchange rate changes on cash		—			—			339			339

Net decrease in cash and cash equivalents		(265,492	)		(827	)		(5,884	)		(272,203	)
Cash and cash equivalents, beginning of period		292,738			1,430			90,402			384,570

Cash and cash equivalents, end of period	$	27,246		$	603		$	84,518		$	112,367