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 September 30, 2016

	FTI		Guarantor		Non-Guarantor
	Consulting, Inc.		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	86,467	$	161	$	138,556	$	—		$	225,184
Accounts receivable, net		180,723		177,972		188,893		—			547,588
Intercompany receivables		—		981,561		29,452		(1,011,013	)		—
Other current assets		44,938		24,953		21,403		—			91,294
Total current assets		312,128		1,184,647		378,304		(1,011,013	)		864,066
Property and equipment, net		28,112		14,358		23,952		—			66,422
Goodwill		558,978		416,053		213,199		—			1,188,230
Other intangible assets, net		22,905		13,932		36,556		(18,900	)		54,493
Investments in subsidiaries		2,060,592		502,698		—		(2,563,290	)		—
Other assets		46,734		72,451		49,222		—			168,407
Total assets	$	3,029,449	$	2,204,139	$	701,233	$	(3,593,203	)	$	2,341,618
Liabilities
Intercompany payables	$	975,871	$	—	$	35,142	$	(1,011,013	)		—
Other current liabilities		141,881		118,292		105,356		—			365,529
Total current liabilities		1,117,752		118,292		140,498		(1,011,013	)		365,529
Long-term debt, net		470,339		—		—		—			470,339
Other liabilities		209,773		15,131		49,261		—			274,165
Total liabilities		1,797,864		133,423		189,759		(1,011,013	)		1,110,033
Stockholders' equity		1,231,585		2,070,716		511,474		(2,582,190	)		1,231,585
Total liabilities and stockholders' equity	$	3,029,449	$	2,204,139	$	701,233	$	(3,593,203	)	$	2,341,618

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 September 30, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	159,431		$	153,986		$	126,995		$	(2,370	)	$	438,042
Operating expenses
Direct cost of revenues		107,579			104,109			84,313			(2,299	)		293,702
Selling, general and administrative expenses		47,388			30,704			28,199			(71	)		106,220
Special charges		—			—			—			—			—
Acquisition-related contingent consideration		—			201			—			—			201
Amortization of other intangible assets		986			541			1,823			(505	)		2,845
		155,953			135,555			114,335			(2,875	)		402,968
Operating income		3,478			18,431			12,660			505			35,074
Other (expense) income		(6,913	)		(794	)		4,616			—			(3,091	)
Income (loss) before income tax provision		(3,435	)		17,637			17,276			505			31,983
Income tax provision		(1,402	)		8,194			3,500			—			10,292
Equity in net earnings of subsidiaries		23,724			11,878			—			(35,602	)		—
Net income	$	21,691		$	21,321		$	13,776		$	(35,097	)	$	21,691
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			(4,478	)		—			(4,478	)
Total other comprehensive loss, net of tax:		—			—			(4,478	)		—			(4,478	)
Comprehensive income	$	21,691		$	21,321		$	9,298		$	(35,097	)	$	17,213

Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended September 30, 2015

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			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
		153,331			144,977			115,719		(4,301	)		409,726
Operating income		12,959			23,330			8,569		886			45,744
Other (expense) income		(32,412	)		(735	)		3,889		—			(29,258	)
Income (loss) 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 income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			—		(17,229	)		(17,229	)
Total other comprehensive income, 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 for the Nine Months Ended September 30, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	517,703		$	463,152		$	394,618		$	(6,999	)	$	1,368,474
Operating expenses
Direct cost of revenues		337,262			312,921			259,184			(6,835	)		902,532
Selling, general and administrative expenses		138,038			92,490			87,710			(164	)		318,074
Special charges		1,750			4,563			498			—			6,811
Acquisition-related contingent consideration		6			1,535			—			—			1,541
Amortization of other intangible assets		2,958			1,639			5,584			(2,140	)		8,041
		480,014			413,148			352,976			(9,139	)		1,236,999
Operating income		37,689			50,004			41,642			2,140			131,475
Other (expense) income		(18,882	)		(3,063	)		13,004			—			(8,941	)
Income before income tax provision		18,807			46,941			54,646			2,140			122,534
Income tax provision		9,781			21,918			12,416			—			44,115
Equity in net earnings of subsidiaries		69,393			38,867			—			(108,260	)		—
Net income	$	78,419		$	63,890		$	42,230		$	(106,120	)	$	78,419
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			(23,645	)		—			(23,645	)
Total other comprehensive loss, net of tax:		—			—			(23,645	)		—			(23,645	)
Comprehensive income	$	78,419		$	63,890		$	18,585		$	(106,120	)	$	54,774

Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended September 30, 2015

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			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 expenses		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
		457,051			542,136			344,545		(147,533	)		1,196,199
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 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 expense of $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 Cash Flows for the Nine Months Ended September 30, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	16,670		$	70,744		$	24,161		$	111,575
Investing activities
Payments for acquisition of businesses, net of cash received		—			—			(56	)		(56	)
Purchases of property and equipment		(2,714	)		(16,145	)		(3,996	)		(22,855	)
Other		74			—			—			74
Net cash used in investing activities		(2,640	)		(16,145	)		(4,052	)		(22,837	)
Financing activities
Repayments under revolving line of credit, net		(25,000	)		—			—			(25,000	)
Deposits		—			—			2,806			2,806
Purchase and retirement of common stock		(2,903	)		—			—			(2,903	)
Net issuance of common stock under equity compensation plans		18,394			—			—			18,394
Other		930			(573	)		—			357
Intercompany transfers		45,805			(54,030	)		8,225			—
Net cash provided by (used in) financing activities		37,226			(54,603	)		11,031			(6,346	)
Effects of exchange rate changes on cash and cash equivalents		—			—			(6,968	)		(6,968	)
Net increase (decrease) in cash and cash equivalents		51,256			(4	)		24,172			75,424
Cash and cash equivalents, beginning of year		35,211			165			114,384			149,760
Cash and cash equivalents, end of year	$	86,467		$	161		$	138,556		$	225,184

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

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			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	)
Effects 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 year		171,090			159			112,431			283,680
Cash and cash equivalents, end of year	$	17,366		$	156		$	87,452		$	104,974