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 March 31, 2017

	FTI		Guarantor		Non-Guarantor
	Consulting		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	18,371	$	157	$	102,431	$	—		$	120,959
Accounts receivable, net		150,859		195,389		179,932		—			526,180
Intercompany receivables		—		1,012,679		52,036		(1,064,715	)		—
Other current assets		39,235		24,973		25,789		—			89,997
Total current assets		208,465		1,233,198		360,188		(1,064,715	)		737,136
Property and equipment, net		23,956		13,249		22,269		—			59,474
Goodwill		558,978		416,053		208,596		—			1,183,627
Other intangible assets, net		21,058		12,852		33,223		(17,238	)		49,895
Investments in subsidiaries		2,105,159		507,788		—		(2,612,947	)		—
Other assets		39,316		63,396		39,718		—			142,430
Total assets	$	2,956,932	$	2,246,536	$	663,994	$	(3,694,900	)	$	2,172,562
Liabilities
Intercompany payables	$	1,064,715	$	—	$	—	$	(1,064,715	)	$	—
Other current liabilities		79,899		118,884		94,545	—				293,328
Total current liabilities		1,144,614		118,884		94,545		(1,064,715	)		293,328
Long-term debt, net		402,717		—		—		—			402,717
Other liabilities		213,072		17,503		49,413		—			279,988
Total liabilities		1,760,403		136,387		143,958		(1,064,715	)		976,033
Stockholders' equity		1,196,529		2,110,149		520,036		(2,630,185	)		1,196,529
Total liabilities and stockholders' equity	$	2,956,932	$	2,246,536	$	663,994	$	(3,694,900	)	$	2,172,562

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 for the Three Months Ended March 31, 2017

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Revenues	$	151,807		$	171,026		$	126,103	$	(2,592	)	$	446,344
Operating expenses
Direct cost of revenues		111,258			117,786			82,561		(2,533	)		309,072
Selling, general and administrative expenses		45,798			30,984			30,572		(59	)		107,295
Special charges		—			—			—		—			—
Acquisition-related contingent consideration		—			395			—		—			395
Amortization of other intangible assets		902			540			1,770		(719	)		2,493
		157,958			149,705			114,903		(3,311	)		419,255
Operating income		(6,151	)		21,321			11,200		719			27,089
Other (expense) income		(5,252	)		(427	)		483		—			(5,196	)
Income (loss) before income tax provision		(11,403	)		20,894			11,683		719			21,893
Income tax (benefit) provision		(5,583	)		10,918			2,542		—			7,877
Equity in net earnings of subsidiaries		19,836			8,573			—		(28,409	)		—
Net income	$	14,016		$	18,549		$	9,141	$	(27,690	)	$	14,016
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			7,370		—			7,370
Other comprehensive income, net of tax		—			—			7,370		—			7,370
Comprehensive income	$	14,016		$	18,549		$	16,511	$	(27,690	)	$	21,386

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues	$	182,994		$	162,563		$	127,066		$	(2,338	)	$	470,285
Operating expenses
Direct cost of revenues		114,429			109,190			84,315			(2,298	)		305,636
Selling, general and administrative expenses		44,667			30,721			28,261			(40	)		103,609
Special charges		—			4,563			498			—			5,061
Acquisition-related contingent consideration		6			1,128			—			—			1,134
Amortization of other intangible assets		986			558			1,879			(817	)		2,606
		160,088			146,160			114,953			(3,155	)		418,046
Operating income		22,906			16,403			12,113			817			52,239
Other (expense) income		(5,077	)		(710	)		2,115			—			(3,672	)
Income before income tax provision		17,829			15,693			14,228			817			48,567
Income tax provision		8,149			6,859			3,378			—			18,386
Equity in net earnings of subsidiaries		20,501			9,882			—			(30,383	)		—
Net income	$	30,181		$	18,716		$	10,850		$	(29,566	)	$	30,181
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	(358	)	$	—		$	(358	)
Other comprehensive loss, net of tax		—			—			(358	)		—			(358	)
Comprehensive income	$	30,181		$	18,716		$	10,492		$	(29,566	)	$	29,823

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2017

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Consolidated
Operating activities
Net cash used in operating activities	$	(64,127	)	$	(14,723	)	$	(14,237	)	$	(93,087	)
Investing activities
Payments for acquisition of businesses, net of cash received		—			—			—			—
Purchases of property and equipment		(1,985	)		(2,396	)		(1,450	)		(5,831	)
Other		127			—			—			127
Net cash used in investing activities		(1,858	)		(2,396	)		(1,450	)		(5,704	)
Financing activities
Borrowings under revolving line of credit, net		37,000			—			—			37,000
Deposits		—			—			3,069			3,069
Purchase and retirement of common stock		(36,918	)		—			—			(36,918	)
Net issuance of common stock under equity compensation plans		(812	)		—			—			(812	)
Other		—			—			—			—
Intercompany transfers		37,666			17,120			(54,786	)		—
Net cash provided by (used in) financing activities		36,936			17,120			(51,717	)		2,339
Effects of exchange rate changes on cash and cash equivalents		—			—			1,253			1,253
Net (decrease) increase in cash and cash equivalents		(29,049	)		1			(66,151	)		(95,199	)
Cash and cash equivalents, beginning of year		47,420			156			168,582			216,158
Cash and cash equivalents, end of year	$	18,371		$	157		$	102,431		$	120,959

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			Subsidiaries			Consolidated
Operating activities
Net cash used in operating activities	$	(7,700	)	$	(8,956	)	$	(16,443	)	$	(33,099	)
Investing activities
Purchases of property and equipment		(788	)		(3,945	)		(1,629	)		(6,362	)
Other		34			—			—			34
Net cash used in investing activities		(754	)		(3,945	)		(1,629	)		(6,328	)
Financing activities
Borrowings under revolving line of credit, net		7,000			—			—			7,000
Deposits		—			—			2,590			2,590
Purchase and retirement of common stock		(2,903	)		—			—			(2,903	)
Net issuance of common stock under equity compensation plans		(1,371	)		—			—			(1,371	)
Other		(135	)		—			—			(135	)
Intercompany transfers		(15,356	)		12,899			2,457			—
Net cash (used in) provided by financing activities		(12,765	)		12,899			5,047			5,181
Effects of exchange rate changes on cash and cash equivalents		—			—			(1,063	)		(1,063	)
Net decrease in cash and cash equivalents		(21,219	)		(2	)		(14,088	)		(35,309	)
Cash and cash equivalents, beginning of year		35,211			165			114,384			149,760
Cash and cash equivalents, end of year	$	13,992		$	163		$	100,296		$	114,451