14. 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 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, 2017

	FTI		Guarantor		Non-Guarantor
	Consulting		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	15,113	$	158	$	123,240	$	—		$	138,511
Accounts receivable, net		153,823		193,611		205,781		—			553,215
Intercompany receivables		—		1,026,529		18,610		(1,045,139	)		—
Other current assets		35,918		21,818		28,327		—			86,063
Total current assets		204,854		1,242,116		375,958		(1,045,139	)		777,789
Property and equipment, net		24,897		12,647		22,736		—			60,280
Goodwill		558,978		416,053		212,633		—			1,187,664
Other intangible assets, net		20,174		12,312		32,222		(16,495	)		48,213
Investments in subsidiaries		2,119,854		516,041		—		(2,635,895	)		—
Other assets		40,435		66,946		43,466		—			150,847
Total assets	$	2,969,192	$	2,266,115	$	687,015	$	(3,697,529	)	$	2,224,793
Liabilities
Intercompany payables	$	1,045,139	$	—	$	—	$	(1,045,139	)	$	—
Other current liabilities		82,260		127,094		105,384		—			314,738
Total current liabilities		1,127,399		127,094		105,384		(1,045,139	)		314,738
Long-term debt, net		480,906		—		—		—			480,906
Other liabilities		221,709		16,940		51,322		—			289,971
Total liabilities		1,830,014		144,034		156,706		(1,045,139	)		1,085,615
Stockholders' equity		1,139,178		2,122,081		530,309		(2,652,390	)		1,139,178
Total liabilities and stockholders' equity	$	2,969,192	$	2,266,115	$	687,015	$	(3,697,529	)	$	2,224,793

Condensed Consolidating Balance Sheet as of December 31, 2016

	FTI		Guarantor		Non-Guarantor
	Consulting		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	47,420	$	156	$	168,582	$	—		$	216,158
Accounts receivable, net		137,523		163,820		173,554		—			474,897
Intercompany receivables		—		1,029,800		—		(1,029,800	)		—
Other current assets		44,708		24,944		22,464		—			92,116
Total current assets		229,651		1,218,720		364,600		(1,029,800	)		783,171
Property and equipment, net		25,466		14,118		22,272		—			61,856
Goodwill		558,978		416,053		204,970		—			1,180,001
Other intangible assets, net		21,959		13,393		34,725		(17,957	)		52,120
Investments in subsidiaries		2,065,819		490,634		—		(2,556,453	)		—
Other assets		47,308		65,398		35,514		—			148,220
Total assets	$	2,949,181	$	2,218,316	$	662,081	$	(3,604,210	)	$	2,225,368
Liabilities
Intercompany payables	$	1,027,050	$	—	$	2,750	$	(1,029,800	)	$	—
Other current liabilities		137,710		129,810		110,935		—			378,455
Total current liabilities		1,164,760		129,810		113,685		(1,029,800	)		378,455
Long-term debt, net		365,528		—		—		—			365,528
Other liabilities		211,535		16,411		46,081		—			274,027
Total liabilities		1,741,823		146,221		159,766		(1,029,800	)		1,018,010
Stockholders' equity		1,207,358		2,072,095		502,315		(2,574,410	)		1,207,358
Total liabilities and stockholders' equity	$	2,949,181	$	2,218,316	$	662,081	$	(3,604,210	)	$	2,225,368

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

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			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			30,953			30,542			(61	)		107,342
Special charges		13,592			7,306			9,176			—			30,074
Acquisition-related contingent consideration		—			777			—			—			777
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 (benefit) provision		(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
Total 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 (Loss) for the Three Months Ended June 30, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting			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 income (expense)		(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 Six Months Ended June 30, 2017

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			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			61,937			61,114		(120	)		214,637
Special charges		13,592			7,306			9,176		—			30,074
Acquisition-related contingent consideration		—			1,172			—		—			1,172
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
Total 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 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 income (expense)		(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 Cash Flows for the Six Months Ended June 30, 2017

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			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	)
Other		(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

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

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Consolidated
Operating activities
Net cash provided by (used in) 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