20. 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 (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 December 31, 2013


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	111,943	$	494	$	93,396	$	—		$	205,833
Accounts receivable, net		154,357		162,505		159,583		—			476,445
Intercompany receivables		—		820,158		18,881		(839,039	)		—
Other current assets		68,292		20,932		32,359		—			121,583

Total current assets		334,592		1,004,089		304,219		(839,039	)		803,861
Property and equipment, net		31,304		19,047		28,656		—			79,007
Goodwill		559,820		408,903		250,010		—			1,218,733
Other intangible assets, net		33,746		19,534		72,221		(28,353	)		97,148
Investments in subsidiaries		1,772,130		498,001		—		(2,270,131	)		—
Other assets		75,561		56,949		33,688		—			166,198

Total assets	$	2,807,153	$	2,006,523	$	688,794	$	(3,137,523	)	$	2,364,947

Liabilities
Intercompany payables	$	709,628	$	74,813	$	54,598	$	(839,039	)	$	—
Other current liabilities		154,049		114,883		115,398		—			384,330

Total current liabilities		863,677		189,696		169,996		(839,039	)		384,330
Long-term debt, net		700,000		11,000		—		—			711,000
Other liabilities		201,217		15,009		11,132		—			227,358

Total liabilities		1,764,894		215,705		181,128		(839,039	)		1,322,688
Stockholders' equity		1,042,259		1,790,818		507,666		(2,298,484	)		1,042,259

Total liabilities and stockholders' equity	$	2,807,153	$	2,006,523	$	688,794	$	(3,137,523	)	$	2,364,947

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
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		20,903		—			88,350

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 Income (Loss) Statement for the Year Ended December 31, 2013


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	593,644		$	985,398		$	453,272		$	(379,882	)	$	1,652,432
Operating expenses
Direct cost of revenues		382,066			745,227			292,214			(377,446	)		1,042,061
Selling, general and administrative expense		166,014			110,485			120,618			(2,436	)		394,681
Special charges		34,338			112			3,964			—			38,414
Acquisition-related contingent consideration		416			653			(11,938	)		—			(10,869	)
Amortization of other intangible assets		4,504			10,211			11,472			(3,233	)		22,954
Goodwill impairment charge		—			30,321			53,431			—			83,752

		587,338			897,009			469,761			(383,115	)		1,570,993

Operating income (loss)		6,306			88,389			(16,489	)		3,233			81,439
Other (expense) income		(61,461	)		(5,947	)		17,780			—			(49,628	)

Income before (loss) before income tax provision		(55,155	)		82,442			1,291			3,233			31,811

Income tax (benefit) provision		(24,654	)		53,543			13,516			—			42,405
Equity in net earnings of subsidiaries		19,907			(17,744	)		—			(2,163	)		—

Net income (loss)	$	(10,594	)	$	11,155		$	(12,225	)	$	1,070		$	(10,594	)

Other comprehensive loss, net of tax:
Foreign currency translation adjustments including tax expense of $0		(60	)		—			(9,660	)		—			(9,720	)

Other comprehensive loss, net of tax:		(60	)		—			(9,660	)		—			(9,720	)

Comprehensive income (loss)	$	(10,654	)	$	11,155		$	(21,885	)	$	1,070		$	(20,314	)

Condensed Consolidating Income (Loss) Statement for the Year Ended December 31, 2012


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	602,917		$	949,545		$	413,739		$	(389,330	)	$	1,576,871
Operating expenses
Direct cost of revenues		389,619			713,305			261,936			(384,328	)		980,532
Selling, general and administrative expense		160,919			112,697			109,402			(5,002	)		378,016
Special charges		19,026			4,738			5,793			—			29,557
Acquisition-related contingent consideration		91			—			(3,155	)		—			(3,064	)
Amortization of other intangible assets		5,611			9,927			10,167			(3,298	)		22,407
Goodwill impairment charge		—			37,987			72,400			—			110,387

		575,266			878,654			456,543			(392,628	)		1,517,835

Operating income (loss)		27,651			70,891			(42,804	)		3,298			59,036
Other (expense) income		(65,698	)		42,424			2,237			(34,885	)		(55,922	)

Income before (loss) before income tax provision		(38,047	)		113,315			(40,567	)		(31,587	)		3,114

Income tax (benefit) provision		(1,698	)		47,623			(5,825	)		—			40,100
Equity in net earnings of subsidiaries		(637	)		(30,438	)		—			31,075			—

Net income (loss)	$	(36,986	)	$	35,254		$	(34,742	)	$	(512	)	$	(36,986	)

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments including tax expense of $654		(654	)		—			15,677			—			15,023

Other comprehensive income (loss), net of tax:		(654	)		—			15,677			—			15,023

Comprehensive income (loss)	$	(37,640	)	$	35,254		$	(19,065	)	$	(512	)	$	(21,963	)

Condensed Consolidating Income Statement for the Year Ended December 31, 2011


	FTI Consulting, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	584,833		$	1,000,419	$	384,779		$	(403,263	)	$	1,566,768
Operating expenses
Direct cost of revenues		380,479			718,826		249,126			(391,523	)		956,908
Selling, general and administrative expense		160,336			123,488		101,211			(11,740	)		373,295
Special charges		8,561			228		6,423			—			15,212
Acquisition-related contingent consideration		—			—		(6,465	)		—			(6,465	)
Amortization of other intangible assets		3,713			12,103		6,555			—			22,371

		553,089			854,645		356,850			(403,263	)		1,361,321

Operating income		31,744			145,774		27,929			—			205,447
Other (expense) income		(53,649	)		1,195		134			—			(52,320	)

Income before (loss) before income tax provision		(21,905	)		146,969		28,063			—			153,127

Income tax (benefit) provision		(12,776	)		61,091		909			—			49,224
Equity in net earnings of subsidiaries		113,032			25,310		—			(138,342	)		—

Net income	$	103,903		$	111,188	$	27,154		$	(138,342	)	$	103,903

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments including tax benefit of $1,568		1,568			—		(4,470	)		—			(2,902	)

Other comprehensive income (loss), net of tax:		1,568			—		(4,470	)		—			(2,902	)

Comprehensive income	$	105,471		$	111,188	$	22,684		$	(138,342	)	$	101,001

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2013


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(37,166	)	$	178,234		$	52,203		$	193,271

Investing activities
Payments for acquisition of businesses, net of cash received		(12,555	)		(7,157	)		(35,786	)		(55,498	)
Purchases of property and equipment		(4,296	)		(17,507	)		(20,741	)		(42,544	)
Purchases of investments		—			—			(5,094	)		(5,094	)
Other		45			—			—			45

Net cash used in investing activities		(16,806	)		(24,664	)		(61,621	)		(103,091	)

Financing activities
Payments of long-term debt and capital lease obligations		—			(6,000	)		(21	)		(6,021	)
Purchase and retirement of common stock		(66,763	)		—			—			(66,763	)
Net issuance of common stock under equity compensation plans		29,392			—			—			29,392
Other		1,515			—			(1,252	)		263
Intercompany transfers		135,108			(147,686	)		12,578			—

Net cash provided by (used in) financing activities		99,252			(153,686	)		11,305			(43,129	)

Effects of exchange rate changes and fair value adjustments on cash and cash equivalents		—			—			1,997			1,997

Net increase (decrease) in cash and cash equivalents		45,280			(116	)		3,884			49,048
Cash and cash equivalents, beginning of year		66,663			610			89,512			156,785

Cash and cash equivalents, end of year	$	111,943		$	494		$	93,396		$	205,833

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2012


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(63,218	)	$	172,578		$	10,828		$	120,188

Investing activities
Payments for acquisition of businesses, including contingent payments, net of cash received		(41,722	)		—			(21,171	)		(62,893	)
Purchases of property and equipment		(8,310	)		(15,689	)		(3,760	)		(27,759	)
Other		246			—			—			246

Net cash used in investing activities		(49,786	)		(15,689	)		(24,931	)		(90,406	)

Financing activities
Borrowings under revolving line of credit		75,000			—			—			75,000
Payments of revolving line of credit		(75,000	)		—			—			(75,000	)
Payments of long-term debt and capital lease obligations		(377,810	)		(49	)		—			(377,859	)
Issuance of debt securities, net		292,608			—			—			292,608
Purchase and retirement of common stock		(50,032	)		—			—			(50,032	)
Net issuance of common stock under equity compensation plans		1,598			—			—			1,598
Other		(2,441	)		—			(2,120	)		(4,561	)
Intercompany transfers		154,564			(156,427	)		1,863			—

Net cash provided by (used in) financing activities		18,487			(156,476	)		(257	)		(138,246	)

Effects of exchange rate changes on cash and cash equivalents		—			—			826			826

Net (decrease) increase in cash and cash equivalents		(94,517	)		413			(13,534	)		(107,638	)
Cash and cash equivalents, beginning of year		161,180			197			103,046			264,423

Cash and cash equivalents, end of year	$	66,663		$	610		$	89,512		$	156,785

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2011


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by (used in) operating activities	$	206,672		$	(40,834	)	$	7,990		$	173,828

Investing activities
Payments for acquisition of businesses, net of cash received		(33,735	)		—			(28,611	)		(62,346	)
Purchases of property and equipment and other		(9,868	)		(13,829	)		(7,605	)		(31,302	)

Net cash used in investing activities		(43,603	)		(13,829	)		(36,216	)		(93,648	)

Financing activities
Borrowings under revolving line of credit		25,000			—			—			25,000
Payments of revolving line of credit		(25,000	)		—			—			(25,000	)
Payments of long-term debt and capital lease obligations		(6,788	)		(206	)		—			(6,994	)
Cash received for settlement of interest rate swaps		5,596			—			—			5,596
Purchase and retirement of common stock		(209,400	)		—			—			(209,400	)
Net issuance of common stock under equity compensation plans		11,109			—			—			11,109
Other		960			—			—			960
Intercompany transfers		(96,104	)		53,636			42,468			—

Net cash (used in) financing activities		(294,627	)		53,430			42,468			(198,729	)

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

Net (decrease) increase in cash and cash equivalents		(131,558	)		(1,233	)		12,644			(120,147	)
Cash and cash equivalents, beginning of year		292,738			1,430			90,402			384,570

Cash and cash equivalents, end of year	$	161,180		$	197		$	103,046		$	264,423