18. 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 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, 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 Balance Sheet Information as of December 31, 2015

	FTI		Guarantor		Non-Guarantor
	Consulting		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 Year Ended December 31, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	671,408		$	625,950		$	522,757		$	(9,721	)	$	1,810,394
Operating expenses
Direct cost of revenues		447,254			428,158			344,820			(9,461	)		1,210,771
Selling, general and administrative expenses		190,546			124,019			120,247			(260	)		434,552
Special charges		2,916			6,242			1,287			—			10,445
Acquisition-related contingent consideration		6			2,158			—			—			2,164
Amortization of other intangible assets		3,903			2,179			7,308			(3,084	)		10,306
		644,625			562,756			473,662			(12,805	)		1,668,238
Operating income		26,783			63,194			49,095			3,084			142,156
Other (expense) income		(27,228	)		(2,811	)		15,686			—			(14,353	)
Income (loss) before income tax provision		(445	)		60,383			64,781			3,084			127,803
Income tax provision		1,222			27,961			13,100			—			42,283
Equity in net earnings of subsidiaries		87,187			45,412			—			(132,599	)		—
Net income	$	85,520		$	77,834		$	51,681		$	(129,515	)	$	85,520
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	(41,884	)	$	—		$	(41,884	)
Other comprehensive loss, net of tax		—			—			(41,884	)		—			(41,884	)
Comprehensive income	$	85,520		$	77,834		$	9,797		$	(129,515	)	$	43,636

Condensed Consolidating Statement of Comprehensive Income for the Year Ended December 31, 2015

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	667,259		$	754,458		$	504,429		$	(146,997	)	$	1,779,149
Operating expenses
Direct cost of revenues		428,356			551,829			337,856			(146,597	)		1,171,444
Selling, general and administrative expenses		189,607			121,112			122,348			(399	)		432,668
Acquisition-related contingent consideration		(1,408	)		208			—			—			(1,200	)
Amortization of other intangible assets		3,944			2,861			8,442			(3,521	)		11,726
		620,499			676,010			468,646			(150,517	)		1,614,638
Operating income		46,760			78,448			35,783			3,520			164,511
Other (expense) income		(64,554	)		(4,881	)		10,310			—			(59,125	)
Income (loss) before income tax provision		(17,794	)		73,567			46,093			3,520			105,386
Income tax (benefit) provision		(6,944	)		35,579			10,698			—			39,333
Equity in net earnings of subsidiaries		76,903			31,744			—			(108,647	)		—
Net income	$	66,053		$	69,732		$	35,395		$	(105,127	)	$	66,053
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	(28,727	)	$	—		$	(28,727	)
Other comprehensive loss, net of tax		—			—			(28,727	)		—			(28,727	)
Comprehensive income	$	66,053		$	69,732		$	6,668		$	(105,127	)	$	37,326

Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year Ended December 31, 2014

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	617,843		$	1,002,571		$	506,181		$	(370,383	)	$	1,756,212
Operating expenses
Direct cost of revenues		401,451			778,648			334,015			(369,357	)		1,144,757
Selling, general and administrative expenses		181,529			121,085			132,257			(1,026	)		433,845
Special charges		15,227			30			1,082			—			16,339
Acquisition-related contingent consideration		(469	)		(358	)		(849	)		—			(1,676	)
Amortization of other intangible assets		4,235			2,702			12,375			(3,791	)		15,521
		601,973			902,107			478,880			(374,174	)		1,608,786
Operating income		15,870			100,464			27,301			3,791			147,426
Other (expense) income		(51,511	)		(7,104	)		12,600			—			(46,015	)
Income (loss) before income tax provision		(35,641	)		93,360			39,901			3,791			101,411
Income tax (benefit) provision		(14,981	)		43,915			13,670			—			42,604
Equity in net earnings of subsidiaries		79,467			23,633			—			(103,100	)		—
Net income	$	58,807		$	73,078		$	26,231		$	(99,309	)	$	58,807
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	(29,179	)	$	—		$	(29,179	)
Other comprehensive loss, net of tax		—			—			(29,179	)		—			(29,179	)
Comprehensive income (loss)	$	58,807		$	73,078		$	(2,948	)	$	(99,309	)	$	29,628

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	46,908		$	123,101		$	63,479		$	233,488
Investing activities
Payments for acquisition of businesses, net of cash received		—			—			(1,251	)		(1,251	)
Purchases of property and equipment and other		(3,576	)		(20,185	)		(5,174	)		(28,935	)
Other		54			—			—			54
Net cash used in investing activities		(3,522	)		(20,185	)		(6,425	)		(30,132	)
Financing activities
Borrowings under revolving line of credit, net		(130,000	)		—			—			(130,000	)
Deposits		—			—			4,006			4,006
Purchase and retirement of common stock		(21,489	)		—			—			(21,489	)
Net issuance of common stock under equity compensation plans		21,708			—			—			21,708
Other		1,121			(656	)		—			465
Intercompany transfers		97,483			(102,269	)		4,786			—
Net cash (used in) provided by financing activities		(31,177	)		(102,925	)		8,792			(125,310	)
Effects of exchange rate changes on cash and cash equivalents		—			—			(11,648	)		(11,648	)
Net increase (decrease) in cash and cash equivalents		12,209			(9	)		54,198			66,398
Cash and cash equivalents, beginning of year		35,211			165			114,384			149,760
Cash and cash equivalents, end of year	$	47,420		$	156		$	168,582		$	216,158

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2015

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	14,815		$	83,516		$	41,589		$	139,920
Investing activities
Payments for acquisition of businesses, net of cash received		—			—			(575	)		(575	)
Purchases of property and equipment and other		(9,192	)		(16,487	)		(5,720	)		(31,399	)
Other		79			—			158			237
Net cash used in investing activities		(9,113	)		(16,487	)		(6,137	)		(31,737	)
Financing activities
Borrowings under revolving line of credit, net		200,000			—			—			200,000
Payments of long-term debt		(425,671	)		—			—			(425,671	)
Payments of debt financing fees		(3,843	)		—			—			(3,843	)
Deposits		—			—			3,227			3,227
Purchase and retirement of common stock		(26,532	)		—			—			(26,532	)
Net issuance of common stock under equity compensation plans		16,666			—			—			16,666
Other		485			(294	)		—			191
Intercompany transfers		97,314			(66,729	)		(30,585	)		—
Net cash used in financing activities		(141,581	)		(67,023	)		(27,358	)		(235,962	)
Effects of exchange rate changes on cash and cash equivalents		—			—			(6,141	)		(6,141	)
Net increase (decrease) in cash and cash equivalents		(135,879	)		6			1,953			(133,920	)
Cash and cash equivalents, beginning of year		171,090			159			112,431			283,680
Cash and cash equivalents, end of year	$	35,211		$	165		$	114,384		$	149,760

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2014

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(36,921	)	$	142,540		$	29,782		$	135,401
Investing activities
Payments for acquisition of businesses, net of cash received		(14,729	)		(7,783	)		(955	)		(23,467	)
Purchases of property and equipment and other		(12,738	)		(13,080	)		(13,438	)		(39,256	)
Other		139			—			4,989			5,128
Net cash used in investing activities		(27,328	)		(20,863	)		(9,404	)		(57,595	)
Financing activities
Payments of long-term debt and capital lease obligations		—			(6,000	)		(14	)		(6,014	)
Deposits		—			—			13,071			13,071
Purchase and retirement of common stock		(4,367	)		—			—			(4,367	)
Net issuance of common stock under equity compensation plans		4,772			—			—			4,772
Other		366			(555	)		(943	)		(1,132	)
Intercompany transfers		122,625			(115,457	)		(7,168	)		—
Net cash provided by (used in) financing activities		123,396			(122,012	)		4,946			6,330
Effects of exchange rate changes on cash and cash equivalents		—			—			(6,289	)		(6,289	)
Net increase (decrease) in cash and cash equivalents		59,147			(335	)		19,035			77,847
Cash and cash equivalents, beginning of year		111,943			494			93,396			205,833
Cash and cash equivalents, end of year	$	171,090		$	159		$	112,431		$	283,680