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 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 (loss) 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 June 30, 2016

	FTI		Guarantor		Non-Guarantor
	Consulting, Inc.		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	73,009	$	163	$	109,493	$	—		$	182,665
Accounts receivable, net		174,100		176,861		196,337		—			547,298
Intercompany receivables		—		961,704		34,648		(996,352	)		—
Other current assets		41,736		19,795		20,248		—			81,779
Total current assets		288,845		1,158,523		360,726		(996,352	)		811,742
Property and equipment, net		30,270		13,773		24,721		—			68,764
Goodwill		558,978		416,053		214,571		—			1,189,602
Other intangible assets, net		23,891		14,473		38,610		(19,406	)		57,568
Investments in subsidiaries		2,036,140		494,788		—		(2,530,928	)		—
Other assets		52,437		69,685		37,666		—			159,788
Total assets	$	2,990,561	$	2,167,295	$	676,294	$	(3,546,686	)	$	2,287,464
Liabilities
Intercompany payables	$	966,409	$	—	$	29,943	$	(996,352	)		—
Other current liabilities		118,913		107,893		98,236		—			325,042
Total current liabilities		1,085,322		107,893		128,179		(996,352	)		325,042
Long-term debt, net		495,150		—		—		—			495,150
Other liabilities		206,846		14,233		42,950		—			264,029
Total liabilities		1,787,318		122,126		171,129		(996,352	)		1,084,221
Stockholders' equity		1,203,243		2,045,169		505,165		(2,550,334	)		1,203,243
Total liabilities and stockholders' equity	$	2,990,561	$	2,167,295	$	676,294	$	(3,546,686	)	$	2,287,464

Condensed Consolidating Balance Sheet Information as of December 31, 2015

	FTI		Guarantor		Non-Guarantor
	Consulting, Inc.		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	35,211	$	165	$	114,384	$	—		$	149,760
Accounts receivable, net		159,121		169,488		171,175		—			499,784
Intercompany receivables		—		936,452		62,651		(999,103	)		—
Other current assets		44,086		25,627		22,368		—			92,081
Total current assets		238,418		1,131,732		370,578		(999,103	)		741,625
Property and equipment, net		33,699		13,409		27,652		—			74,760
Goodwill		558,978		416,053		223,267		—			1,198,298
Other intangible assets, net		25,863		15,571		43,542		(21,041	)		63,935
Investments in subsidiaries		1,995,409		486,462		—		(2,481,871	)		—
Other assets		40,359		72,981		37,060		—			150,400
Total assets	$	2,892,726	$	2,136,208	$	702,099	$	(3,502,015	)	$	2,229,018
Liabilities
Intercompany payables	$	930,066	$	8,921	$	60,116	$	(999,103	)	$	—
Other current liabilities		135,421		107,188		104,468		—			347,077
Total current liabilities		1,065,487		116,109		164,584		(999,103	)		347,077
Long-term debt, net		494,772		—		—		—			494,772
Other liabilities		184,864		12,562		42,140		—			239,566
Total liabilities		1,745,123		128,671		206,724		(999,103	)		1,081,415
Stockholders' equity		1,147,603		2,007,537		495,375		(2,502,912	)		1,147,603
Total liabilities and stockholders' equity	$	2,892,726	$	2,136,208	$	702,099	$	(3,502,015	)	$	2,229,018

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended June 30, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	175,278		$	146,603		$	140,557		$	(2,291	)	$	460,147
Operating expenses
Direct cost of revenues		115,254			99,622			90,556			(2,238	)		303,194
Selling, general and administrative expenses		45,983			31,065			31,250			(53	)		108,245
Special charges		1,750			—			—			—			1,750
Acquisition-related contingent consideration		—			206			—			—			206
Amortization of other intangible assets		986			540			1,882			(818	)		2,590
		163,973			131,433			123,688			(3,109	)		415,985
Operating income		11,305			15,170			16,869			818			44,162
Other (expense) income		(6,892	)		(1,559	)		6,273			—			(2,178	)
Income before income tax provision		4,413			13,611			23,142			818			41,984
Income tax provision		3,034			6,865			5,538			—			15,437
Equity in net earnings of subsidiaries		25,168			17,107			—			(42,275	)		—
Net income	$	26,547		$	23,853		$	17,604		$	(41,457	)	$	26,547
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			(18,809	)		—			(18,809	)
Total other comprehensive loss, net of tax:		—			—			(18,809	)		—			(18,809	)
Comprehensive income (loss)	$	26,547		$	23,853		$	(1,205	)	$	(41,457	)	$	7,738

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended June 30, 2015

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Revenues	$	172,899		$	289,431		$	125,484	$	(138,677	)	$	449,137
Operating expenses
Direct cost of revenues		106,517			238,186			85,255		(138,489	)		291,469
Selling, general and administrative expenses		48,177			30,962			30,094		(188	)		109,045
Special charges		—			—			—		—			—
Acquisition-related contingent consideration		(1,485	)		(53	)		—		—			(1,538	)
Amortization of other intangible assets		986			716			2,202		(897	)		3,007
		154,195			269,811			117,551		(139,574	)		401,983
Operating income		18,704			19,620			7,933		897			47,154
Other (expense) income		(11,709	)		(1,053	)		1,239		—			(11,523	)
Income before income tax provision		6,995			18,567			9,172		897			35,631
Income tax provision		4,124			8,267			1,531		—			13,922
Equity in net earnings of subsidiaries		18,838			6,851			—		(25,689	)		—
Net income	$	21,709		$	17,151		$	7,641	$	(24,792	)	$	21,709
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			13,298		—			13,298
Total other comprehensive income, net of tax:		—			—			13,298		—			13,298
Comprehensive income	$	21,709		$	17,151		$	20,939	$	(24,792	)	$	35,007

Condensed Consolidating Statement of Comprehensive Income for the Six Months Ended June 30, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	358,272		$	309,166		$	267,623		$	(4,629	)	$	930,432
Operating expenses
Direct cost of revenues		229,683			208,812			174,871			(4,536	)		608,830
Selling, general and administrative expenses		90,650			61,786			59,511			(93	)		211,854
Special charges		1,750			4,563			498			—			6,811
Acquisition-related contingent consideration		6			1,334			—			—			1,340
Amortization of other intangible assets		1,972			1,098			3,761			(1,635	)		5,196
		324,061			277,593			238,641			(6,264	)		834,031
Operating income		34,211			31,573			28,982			1,635			96,401
Other (expense) income		(11,969	)		(2,269	)		8,388			—			(5,850	)
Income before income tax provision		22,242			29,304			37,370			1,635			90,551
Income tax provision		11,183			13,724			8,916			—			33,823
Equity in net earnings of subsidiaries		45,669			26,989			—			(72,658	)		—
Net income	$	56,728		$	42,569		$	28,454		$	(71,023	)	$	56,728
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			(19,167	)		—			(19,167	)
Total other comprehensive loss, net of tax:		—			—			(19,167	)		—			(19,167	)
Comprehensive income	$	56,728		$	42,569		$	9,287		$	(71,023	)	$	37,561

Condensed Consolidating Statement of Comprehensive Income for the Six Months Ended June 30, 2015

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	342,034		$	433,570		$	247,336		$	(141,465	)	$	881,475
Operating expenses
Direct cost of revenues		211,580			334,773			165,338			(141,192	)		570,499
Selling, general and administrative expenses		91,588			60,839			59,105			(273	)		211,259
Special charges		—			—			—			—			—
Acquisition-related contingent consideration		(1,420	)		116			—			—			(1,304	)
Amortization of other intangible assets		1,972			1,431			4,383			(1,767	)		6,019
		303,720			397,159			228,826			(143,232	)		786,473
Operating income		38,314			36,411			18,510			1,767			95,002
Other (expense) income		(25,575	)		(3,063	)		4,610			—			(24,028	)
Income before income tax provision		12,739			33,348			23,120			1,767			70,974
Income tax provision		6,687			13,993			4,899			—			25,579
Equity in net earnings of subsidiaries		39,343			16,676			—			(56,019	)		—
Net income	$	45,395		$	36,031		$	18,221		$	(54,252	)	$	45,395
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			(7,184	)		—			(7,184	)
Total other comprehensive loss, net of tax:		—			—			(7,184	)		—			(7,184	)
Comprehensive income	$	45,395		$	36,031		$	11,037		$	(54,252	)	$	38,211

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			Subsidiaries			Consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(3,975	)	$	42,564		$	2,044		$	40,633
Investing activities
Payments for acquisition of businesses, net of cash received		—			—			(56	)		(56	)
Purchases of property and equipment and other		(1,533	)		(7,821	)		(2,629	)		(11,983	)
Other		96			—			—			96
Net cash used in investing activities		(1,437	)		(7,821	)		(2,685	)		(11,943	)
Financing activities
Deposits		—			—			2,557			2,557
Purchase and retirement of common stock		(2,903	)		—			—			(2,903	)
Net issuance of common stock under equity compensation plans		9,353			—			—			9,353
Other		418			(572	)		—			(154	)
Intercompany transfers		36,342			(34,173	)		(2,169	)		—
Net cash provided by (used in) financing activities		43,210			(34,745	)		388			8,853
Effects of exchange rate changes on cash and cash equivalents		—			—			(4,638	)		(4,638	)
Net increase (decrease) in cash and cash equivalents		37,798			(2	)		(4,891	)		32,905
Cash and cash equivalents, beginning of year		35,211			165			114,384			149,760
Cash and cash equivalents, end of year	$	73,009		$	163		$	109,493		$	182,665

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2015

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			Subsidiaries			Consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(28,171	)	$	8,296		$	(10,856	)	$	(30,731	)
Investing activities
Payments for acquisition of businesses, net of cash received		—			—			(576	)		(576	)
Purchases of property and equipment and other		(6,000	)		(8,887	)		(2,646	)		(17,533	)
Other		25			—			39			64
Net cash used in investing activities		(5,975	)		(8,887	)		(3,183	)		(18,045	)
Financing activities
Payments of debt financing fees		(3,090	)		—			—			(3,090	)
Net issuance of common stock under equity compensation plans		8,662			—			—			8,662
Deposits		—			—			2,423			2,423
Other		(114	)		(212	)		—			(326	)
Intercompany transfers		(10,315	)		803			9,512			—
Net cash (used in) provided by financing activities		(4,857	)		591			11,935			7,669
Effects of exchange rate changes on cash and cash equivalents		—			—			(2,585	)		(2,585	)
Net decrease in cash and cash equivalents		(39,003	)		—			(4,689	)		(43,692	)
Cash and cash equivalents, beginning of year		171,090			159			112,431			283,680
Cash and cash equivalents, end of year	$	132,087		$	159		$	107,742		$	239,988