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 and senior notes. The guarantees are full and unconditional and joint and several. All of our 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 March 31, 2013


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	28,041	$	281	$	72,381	$	—		$	100,703
Restricted cash		—		—		1,118		—		$	1,118
Accounts receivable, net		160,897		169,988		139,711		—		$	470,596
Intercompany receivables		—		692,705		4,368		(697,073	)	$	—
Other current assets		42,003		18,398		18,911		—		$	79,312

Total current assets		230,941		881,372		236,489		(697,073	)		651,729
Property and equipment, net		35,457		17,731		13,518		—		$	66,706
Goodwill		559,474		426,108		266,858		—		$	1,252,440
Other intangible assets, net		36,399		23,528		72,725		(30,794	)	$	101,858
Investments in subsidiaries		1,732,702		484,160		—		(2,216,862	)	$	—
Other assets		86,998		64,559		26,090		(10,928	)	$	166,719

Total assets	$	2,681,971	$	1,897,458	$	615,680	$	(2,955,657	)	$	2,239,452

Liabilities
Intercompany payables	$	647,041	$	39,162	$	10,870	$	(697,073	)	$	—
Other current liabilities		96,740		73,601		98,904		—		$	269,245

Total current liabilities		743,781		112,763		109,774		(697,073	)		269,245
Long-term debt, net		700,024		17,000		—		—		$	717,024
Other liabilities		179,838		15,071		10,874		(10,928	)	$	194,855

Total liabilities		1,623,643		144,834		120,648		(708,001	)		1,181,124
Stockholders’ equity		1,058,328		1,752,624		495,032		(2,247,656	)	$	1,058,328

Total liabilities and stockholders’ equity	$	2,681,971	$	1,897,458	$	615,680	$	(2,955,657	)	$	2,239,452

Condensed Consolidating Balance Sheet Information as of December 31, 2012


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	66,663	$	610	$	89,512	$	—		$	156,785
Restricted cash		—		—		1,190		—			1,190
Accounts receivable, net		140,254		149,253		139,733		—			429,240
Intercompany receivables		7,053		674,136		23,185		(704,374	)		—
Other current assets		46,978		20,469		19,713		—			87,160

Total current assets		260,948		844,468		273,333		(704,374	)		674,375
Property and equipment, net		37,411		16,477		14,304		—			68,192
Goodwill		558,473		418,789		282,773		—			1,260,035
Other intangible assets, net		36,826		23,975		74,967		(31,587	)		104,181
Investments in subsidiaries		1,631,243		502,954		—		(2,134,197	)		—
Other assets		85,109		66,170		28,318		(10,928	)		168,669

Total assets	$	2,610,010	$	1,872,833	$	673,695	$	(2,881,086	)	$	2,275,452

Liabilities
Intercompany payables	$	549,339	$	112,137	$	42,898	$	(704,374	)	$	—
Other current liabilities		118,865		79,533		105,799		—			304,197

Total current liabilities		668,204		191,670		148,697		(704,374	)		304,197
Long-term debt, net		700,024		17,000		—		—			717,024
Other liabilities		173,550		10,479		12,898		(10,928	)		185,999

Total liabilities		1,541,778		219,149		161,595		(715,302	)		1,207,220
Stockholders’ equity		1,068,232		1,653,684		512,100		(2,165,784	)		1,068,232

Total liabilities and stockholders’ equity	$	2,610,010	$	1,872,833	$	673,695	$	(2,881,086	)	$	2,275,452

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2013


	FTI Consulting, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	150,960		$	246,661	$	107,996		$	(98,439	)	$	407,178
Operating expenses
Direct cost of revenues		100,837			187,347		67,973			(97,677	)	$	258,480
Selling, general and administrative expense		42,896			27,976		26,538			(763	)	$	96,647
Special Charges		323			104		—			—		$	427
Acquisition-related contingent consideration		87			—		644			—		$	731
Amortization of other intangible assets		1,227			2,447		2,683			(793	)	$	5,564

Operating income		5,590			28,787		10,158			794			45,329
Other (expense) income		(14,940	)		329		2,833			—			(11,778	)

Income (loss) before income tax provision		(9,350	)		29,116		12,991			794			33,551
Income tax (benefit) provision		(2,931	)		9,972		2,830			—			9,871
Equity in net earnings of subsidiaries		30,099			8,435		—			(38,534	)		—

Net income		23,680			27,579		10,161			(37,740	)		23,680

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax $0		—			—		(15,509	)		—			(15,509	)

Other comprehensive income (loss), net of tax		—			—		(15,509	)		—			(15,509	)

Comprehensive income (loss)	$	23,680		$	27,579	$	(5,348	)	$	(37,740	)	$	8,171

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, net of tax $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 Cash Flow for the Three Months Ended March 31, 2013


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(17,853	)	$	2,610		$	12,939		$	(2,304	)
Investing activities
Payments for acquisition of businesses, net of cash received		(8,078	)		(6,598	)		—			(14,676	)
Purchases of property and equipment		(754	)		(5,338	)		(1,231	)		(7,323	)
Other		12			—			—			12

Net cash used in investing activities		(8,820	)		(11,936	)		(1,231	)		(21,987	)

Financing activities
Purchase and retirement of common stock		(28,758	)		—			—			(28,758	)
Net issuance of common stock and other		(1,354	)		—			(205	)		(1,559	)
Excess tax benefits from share-based compensation		124			—			—			124
Intercompany transfers		18,039			8,997			(27,036	)		—

Net cash provided by (used in) financing activities		(11,949	)		8,997			(27,241	)		(30,193	)

Effect of exchange rate changes on cash and cash equivalents		—			—			(1,598	)		(1,598	)

Net decrease in cash and cash equivalents		(38,622	)		(329	)		(17,131	)		(56,082	)
Cash and cash equivalents, beginning of period		66,663			610			89,512			156,785

Cash and cash equivalents, end of period	$	28,041		$	281		$	72,381		$	100,703

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