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

Substantially all of our domestic subsidiaries are guarantors of borrowings under our 2015 Credit Facility and 2022 Notes. The guarantees are full and unconditional and joint and several. All of the guarantors are 100%-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 Information as of September 30, 2015


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	17,366	$	156	$	87,452	$	—		$	104,974
Accounts receivable, net		179,097		189,277		186,026		—			554,400
Intercompany receivables		—		893,594		36,038		(929,632	)		—
Other current assets		84,501		25,454		19,150		—			129,105

Total current assets		280,964		1,108,481		328,666		(929,632	)		788,479
Property and equipment, net		34,786		14,843		28,087		—			77,716
Goodwill		558,978		416,053		224,459		—			1,199,490
Other intangible assets, net		26,849		16,286		46,026		(21,909	)		67,252
Investments in subsidiaries		1,971,516		481,967		—		(2,453,483	)		—
Other assets		45,907		76,636		38,532		—			161,075

Total assets	$	2,919,000	$	2,114,266	$	665,770	$	(3,405,024	)	$	2,294,012

Liabilities
Intercompany payables	$	872,934	$	19,765	$	36,933	$	(929,632	)	$	—
Other current liabilities		139,131		96,965		98,414		—			334,510

Total current liabilities		1,012,065		116,730		135,347		(929,632	)		334,510
Long-term debt, net		520,000		—		—		—			520,000
Other liabilities		224,532		12,117		40,450		—			277,099

Total liabilities		1,756,597		128,847		175,797		(929,632	)		1,131,609
Stockholders’ equity		1,162,403		1,985,419		489,973		(2,475,392	)		1,162,403

Total liabilities and stockholders’ equity	$	2,919,000	$	2,114,266	$	665,770	$	(3,405,024	)	$	2,294,012

Condensed Consolidating Balance Sheet Information as of December 31, 2014


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	171,090	$	159	$	112,431	$	—		$	283,680
Accounts receivable, net		153,495		162,032		169,574		—			485,101
Intercompany receivables		—		875,000		12,195		(887,195	)		—
Other current assets		74,455		22,994		17,943		—			115,392

Total current assets		399,040		1,060,185		312,143		(887,195	)		884,173
Property and equipment, net		33,864		17,050		31,249		—			82,163
Goodwill		559,318		416,053		236,318		—			1,211,689
Other intangible assets, net		29,807		18,432		53,357		(24,562	)		77,034
Investments in subsidiaries		1,915,869		484,162		—		(2,400,031	)		—
Other assets		61,025		78,388		36,055		—			175,468

Total assets	$	2,998,923	$	2,074,270	$	669,122	$	(3,311,788	)	$	2,430,527

Liabilities
Intercompany payables	$	832,253	$	14,197	$	40,745	$	(887,195	)	$	—
Other current liabilities		148,299		113,450		105,343		—			367,092

Total current liabilities		980,552		127,647		146,088		(887,195	)		367,092
Long-term debt, net		700,000		—		—		—			700,000
Other liabilities		215,625		14,955		30,109		—			260,689

Total liabilities		1,896,177		142,602		176,197		(887,195	)		1,327,781
Stockholders’ equity		1,102,746		1,931,668		492,925		(2,424,593	)		1,102,746

Total liabilities and stockholders’ equity	$	2,998,923	$	2,074,270	$	669,122	$	(3,311,788	)	$	2,430,527

Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended

September 30, 2015


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	166,290		$	168,307		$	124,288	$	(3,415	)	$	455,470
Operating expenses
Direct cost of revenues		106,366			113,660			84,939		(3,356	)		301,609
Selling, general and administrative expenses		45,973			30,449			28,695		(59	)		105,058
Acquisition-related contingent consideration		6			153			—		—			159
Amortization of other intangible assets		986			715			2,085		(886	)		2,900

Operating income		12,959			23,330			8,569		886			45,744
Other (expense) income		(32,412	)		(735	)		3,889		—			(29,258	)

Income before income tax provision		(19,453	)		22,595			12,458		886			16,486
Income tax provision		(6,663	)		9,481			3,359		—			6,177
Equity in net earnings of subsidiaries		23,099			7,899			—		(30,998	)		—

Net income		10,309			21,013			9,099		(30,112	)		10,309

Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			—		(17,229	)		(17,229	)

Total other comprehensive loss, net of tax		—			—			—		(17,229	)		(17,229	)

Comprehensive income (loss)	$	10,309		$	21,013		$	9,099	$	(47,341	)	$	(6,920	)

Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended

September 30, 2014


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	157,285		$	268,949		$	127,813		$	(102,869	)	$	451,178
Operating expenses
Direct cost of revenues		101,646			210,283			83,910			(102,595	)		293,244
Selling, general and administrative expenses		40,185			30,033			32,517			(274	)		102,461
Special Charges		4,235			30			1,082			—			5,347
Acquisition-related contingent consideration		65			192			—			—			257
Amortization of other intangible assets		1,038			641			2,675			(956	)		3,398

Operating income		10,116			27,770			7,629			956			46,471
Other (expense) income		(12,926	)		(1,743	)		3,049			—			(11,620	)

Income (loss) before income tax provision		(2,810	)		26,027			10,678			956			34,851
Income tax (benefit) provision		(810	)		11,519			1,620			—			12,329
Equity in net earnings of subsidiaries		24,522			8,972			—			(33,494	)		—

Net income		22,522			23,480			9,058			(32,538	)		22,522

Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			(22,542	)		—			(22,542	)

Total other comprehensive loss, net of tax		—			—			(22,542	)		—			(22,542	)

Comprehensive income (loss)	$	22,522		$	23,480		$	(13,484	)	$	(32,538	)	$	(20	)

Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended

September 30, 2015


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	508,324		$	601,877		$	371,624	$	(144,880	)	$	1,336,945
Operating expenses
Direct cost of revenues		317,946			448,433			250,277		(144,548	)		872,108
Selling, general and administrative expense		137,561			91,288			87,800		(332	)		316,317
Acquisition-related contingent consideration		(1,414	)		269			—		—			(1,145	)
Amortization of other intangible assets		2,958			2,146			6,468		(2,653	)		8,919

Operating income		51,273			59,741			27,079		2,653			140,746
Other (expense) income		(57,987	)		(3,798	)		8,499		—			(53,286	)

Income (loss) before income tax provision		(6,714	)		55,943			35,578		2,653			87,460
Income tax (benefit) provision		24			23,474			8,258		—			31,756
Equity in net earnings of subsidiaries		62,442			24,575			—		(87,017	)		—

Net income		55,704			57,044			27,320		(84,364	)		55,704

Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax $0		—			—			—		(24,412	)		(24,412	)

Total other comprehensive loss, net of tax		—			—			—		(24,412	)		(24,412	)

Comprehensive income	$	55,704		$	57,044		$	27,320	$	(108,776	)	$	31,292

Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended

September 30, 2014


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	463,774		$	790,361		$	380,145		$	(303,226	)	$	1,331,054
Operating expenses
Direct cost of revenues		299,718			616,437			249,206			(302,293	)		863,068
Selling, general and administrative expense		131,347			88,610			98,856			(933	)		317,880
Special charges		13,599			30			1,082			—			14,711
Acquisition-related contingent consideration		(531	)		(211	)		(849	)		—			(1,591	)
Amortization of other intangible assets		3,197			2,011			9,143			(2,885	)		11,466

Operating income		16,444			83,484			22,707			2,885			125,520
Other (expense) income		(38,502	)		(5,978	)		9,748			—			(34,732	)

Income (loss) before income tax provision		(22,058	)		77,506			32,455			2,885			90,788
Income tax (benefit) provision		(8,515	)		34,423			6,994			—			32,902
Equity in net earnings of subsidiaries		71,429			23,662			—			(95,091	)		—

Net income		57,886			66,745			25,461			(92,206	)		57,886

Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax $0		—			—			(10,120	)		—			(10,120	)

Total other comprehensive loss, net of tax		—			—			(10,120	)		—			(10,120	)

Comprehensive income	$	57,886		$	66,745		$	15,341		$	(92,206	)	$	47,766

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2015


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	8,976		$	26,113		$	8,214		$	43,303
Investing activities
Payments for acquisition of businesses, net of cash received		—			—			(575	)		(575	)
Purchases of property and equipment		(7,800	)		(12,877	)		(3,997	)		(24,674	)
Other		24			—			70			94

Net cash used in investing activities		(7,776	)		(12,877	)		(4,502	)		(25,155	)

Financing activities
Borrowings under revolving line of credit, net		220,000			—			—			220,000
Payments of long-term debt		(425,671	)		—			—			(425,671	)
Payments of debt financing fees		(3,701	)		—			—			(3,701	)
Net issuance of common stock under equity compensation plans		13,931			—			—			13,931
Deposits		—			—			2,406			2,406
Other		336			(212	)		—			124
Intercompany transfers		40,181			(13,027	)		(27,154	)		—

Net cash used in financing activities		(154,924	)		(13,239	)		(24,748	)		(192,911	)

Effect of exchange rate changes on cash and cash equivalents		—			—			(3,943	)		(3,943	)

Net decrease in cash and cash equivalents		(153,724	)		(3	)		(24,979	)		(178,706	)
Cash and cash equivalents, beginning of period		171,090			159			112,431			283,680

Cash and cash equivalents, end of period	$	17,366		$	156		$	87,452		$	104,974

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2014


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(12,091	)	$	40,238		$	(7,668	)		20,479
Investing activities
Payments for acquisition of businesses, net of cash received		(14,729	)		—			(955	)		(15,684	)
Purchases of property and equipment		(10,988	)		(9,197	)		(11,612	)		(31,797	)
Other		2			—			67			69

Net cash used in investing activities		(25,715	)		(9,197	)		(12,500	)		(47,412	)

Financing activities
Payments of long-term debt		—			(6,000	)		(14	)		(6,014	)
Purchase and retirement of common stock		(4,367	)		—			—			(4,367	)
Net issuance of common stock under equity compensation plans		(29	)		—			—			(29	)
Deposits		—			—			12,956			12,956
Other		226			(319	)		(943	)		(1,036	)
Intercompany transfers		26,495			(25,053	)		(1,442	)		—

Net cash provided by (used in) financing activities		22,325			(31,372	)		10,557			1,510

Effect of exchange rate changes on cash and cash equivalents		—			—			(1,632	)		(1,632	)

Net decrease in cash and cash equivalents		(15,481	)		(331	)		(11,243	)		(27,055	)
Cash and cash equivalents, beginning of period		111,943			494			93,396			205,833

Cash and cash equivalents, end of period	$	96,462		$	163		$	82,153		$	178,778