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Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 3 Months Ended
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Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information Substantially all of our domestic subsidiaries are guarantors of borrowings under our 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, 2018
| FTI Consulting |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 8,406 |  |  | $ | 157 |  |  | $ | 143,481 |  |  | $ | — |  |  | $ | 152,044 |
Accounts receivable, net | 185,359 |  |  | 181,692 |  |  | 216,537 |  |  | — |  |  | 583,588 |
Intercompany receivables | — |  |  | 1,114,635 |  |  | 5,251 |  |  | (1,119,886 | ) |  | — |
Other current assets | 28,620 |  |  | 23,096 |  |  | 28,430 |  |  | — |  |  | 80,146 |
Total current assets | 222,385 |  |  | 1,319,580 |  |  | 393,699 |  |  | (1,119,886 | ) |  | 815,778 |
Property and equipment, net | 39,967 |  |  | 12,508 |  |  | 23,111 |  |  | — |  |  | 75,586 |
Goodwill | 570,876 |  |  | 416,053 |  |  | 221,082 |  |  | — |  |  | 1,208,011 |
Other intangible assets, net | 17,552 |  |  | 10,838 |  |  | 28,160 |  |  | (14,160 | ) |  | 42,390 |
Investments in subsidiaries | 2,224,753 |  |  | 544,824 |  |  | — |  |  | (2,769,577 | ) |  | — |
Other assets | 32,297 |  |  | 65,651 |  |  | 36,739 |  |  | — |  |  | 134,687 |
Total assets | $ | 3,107,830 |  |  | $ | 2,369,454 |  |  | $ | 702,791 |  |  | $ | (3,903,623 | ) |  | $ | 2,276,452 |
Liabilities |  |  |  |  |  |  |  |  |
Intercompany payables | $ | 1,119,886 |  |  | $ | — |  |  | $ | — |  |  | $ | (1,119,886 | ) |  | $ | — |
Other current liabilities | 110,376 |  |  | 128,921 |  |  | 104,170 |  |  | — |  |  | 343,467 |
Total current liabilities | 1,230,262 |  |  | 128,921 |  |  | 104,170 |  |  | (1,119,886 | ) |  | 343,467 |
Long-term debt, net | 441,473 |  |  | — |  |  | — |  |  | — |  |  | 441,473 |
Other liabilities | 198,661 |  |  | 10,308 |  |  | 45,109 |  |  | — |  |  | 254,078 |
Total liabilities | 1,870,396 |  |  | 139,229 |  |  | 149,279 |  |  | (1,119,886 | ) |  | 1,039,018 |
Stockholders' equity | 1,237,434 |  |  | 2,230,225 |  |  | 553,512 |  |  | (2,783,737 | ) |  | 1,237,434 |
Total liabilities and stockholders' equity | $ | 3,107,830 |  |  | $ | 2,369,454 |  |  | $ | 702,791 |  |  | $ | (3,903,623 | ) |  | $ | 2,276,452 |
Condensed Consolidating Balance Sheet as of December 31, 2017
| FTI Consulting |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 10,186 |  |  | $ | 159 |  |  | $ | 179,616 |  |  | $ | — |  |  | $ | 189,961 |
Accounts receivable, net | 155,124 |  |  | 156,859 |  |  | 210,895 |  |  | — |  |  | 522,878 |
Intercompany receivables | — |  |  | 1,093,211 |  |  | 32,695 |  |  | (1,125,906 | ) |  | — |
Other current assets | 31,933 |  |  | 21,840 |  |  | 27,567 |  |  | — |  |  | 81,340 |
Total current assets | 197,243 |  |  | 1,272,069 |  |  | 450,773 |  |  | (1,125,906 | ) |  | 794,179 |
Property and equipment, net | 39,137 |  |  | 13,572 |  |  | 22,366 |  |  | — |  |  | 75,075 |
Goodwill | 570,876 |  |  | 416,053 |  |  | 217,874 |  |  | — |  |  | 1,204,803 |
Other intangible assets, net | 18,426 |  |  | 11,251 |  |  | 29,441 |  |  | (14,968 | ) |  | 44,150 |
Investments in subsidiaries | 2,175,362 |  |  | 566,911 |  |  | — |  |  | (2,742,273 | ) |  | — |
Other assets | 34,454 |  |  | 60,566 |  |  | 44,014 |  |  | — |  |  | 139,034 |
Total assets | $ | 3,035,498 |  |  | $ | 2,340,422 |  |  | $ | 764,468 |  |  | $ | (3,883,147 | ) |  | $ | 2,257,241 |
Liabilities |  |  |  |  |  |  |  |  |
Intercompany payables | $ | 1,125,906 |  |  | $ | — |  |  | $ | — |  |  | $ | (1,125,906 | ) |  | $ | — |
Other current liabilities | 127,295 |  |  | 144,474 |  |  | 138,559 |  |  | — |  |  | 410,328 |
Total current liabilities | 1,253,201 |  |  | 144,474 |  |  | 138,559 |  |  | (1,125,906 | ) |  | 410,328 |
Long-term debt, net | 396,284 |  |  | — |  |  | — |  |  | — |  |  | 396,284 |
Other liabilities | 194,042 |  |  | 14,753 |  |  | 49,863 |  |  | — |  |  | 258,658 |
Total liabilities | 1,843,527 |  |  | 159,227 |  |  | 188,422 |  |  | (1,125,906 | ) |  | 1,065,270 |
Stockholders' equity | 1,191,971 |  |  | 2,181,195 |  |  | 576,046 |  |  | (2,757,241 | ) |  | 1,191,971 |
Total liabilities and stockholders' equity | $ | 3,035,498 |  |  | $ | 2,340,422 |  |  | $ | 764,468 |  |  | $ | (3,883,147 | ) |  | $ | 2,257,241 |
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2018
| FTI Consulting |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 185,321 |  |  | $ | 157,129 |  |  | $ | 157,772 |  |  | $ | (2,448 | ) |  | $ | 497,774 |
Operating expenses |  |  |  |  |  |  |  |  |
Direct cost of revenues | 115,460 |  |  | 109,398 |  |  | 98,597 |  |  | (2,338 | ) |  | 321,117 |
Selling, general and administrative expenses | 50,681 |  |  | 28,980 |  |  | 32,577 |  |  | (110 | ) |  | 112,128 |
Amortization of other intangible assets | 874 |  |  | 414 |  |  | 1,790 |  |  | (808 | ) |  | 2,270 |
| 167,015 |  |  | 138,792 |  |  | 132,964 |  |  | (3,256 | ) |  | 435,515 |
Operating income | 18,306 |  |  | 18,337 |  |  | 24,808 |  |  | 808 |  |  | 62,259 |
Other income (expense) | 16,930 |  |  | (309 | ) |  | (1,665 | ) |  | (23,000 | ) |  | (8,044 | )
Income before income tax provision | 35,236 |  |  | 18,028 |  |  | 23,143 |  |  | (22,192 | ) |  | 54,215 |
Income tax provision (benefit) | 4,370 |  |  | 6,040 |  |  | 4,860 |  |  | — |  |  | 15,270 |
Equity in net earnings of subsidiaries | 8,079 |  |  | 34,788 |  |  | — |  |  | (42,867 | ) |  | — |
Net income | $ | 38,945 |  |  | $ | 46,776 |  |  | $ | 18,283 |  |  | $ | (65,059 | ) |  | $ | 38,945 |
Other comprehensive income, net of tax: |  |  |  |  |  |  |  |  |
Foreign currency translation adjustments, net of tax expense of $0 | $ | — |  |  | $ | — |  |  | $ | 10,446 |  |  | $ | — |  |  | $ | 10,446 |
Other comprehensive income, net of tax | — |  |  | — |  |  | 10,446 |  |  | — |  |  | 10,446 |
Comprehensive income | $ | 38,945 |  |  | $ | 46,776 |  |  | $ | 28,729 |  |  | $ | (65,059 | ) |  | $ | 49,391 |
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2017
| FTI Consulting |  | Guarantor Subsidiaries |  | Non-Guarantor 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 |  |  | 31,379 |  |  | 30,572 |  |  | (59 | ) |  | 107,690 |
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 income (expense) | (5,252 | ) |  | (427 | ) |  | 483 |  |  | — |  |  | (5,196 | )
Income (loss) before income tax provision | (11,403 | ) |  | 20,894 |  |  | 11,683 |  |  | 719 |  |  | 21,893 |
Income tax provision (benefit) | (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 loss, 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 Cash Flows for the Three Months Ended March 31, 2018
| FTI Consulting |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated
Operating activities |  |  |  |  |  |  |
Net cash provided by (used in) operating activities | $ | (27,503 | ) |  | $ | 53,809 |  |  | $ | (95,506 | ) |  | $ | (69,200 | )
Investing activities |  |  |  |  |  |  |
Purchases of property and equipment | (3,278 | ) |  | (2,583 | ) |  | (1,819 | ) |  | (7,680 | )
Other | 27 |  |  | — |  |  | — |  |  | 27 |
Net cash used in investing activities | (3,251 | ) |  | (2,583 | ) |  | (1,819 | ) |  | (7,653 | )
Financing activities |  |  |  |  |  |  |
Borrowings under revolving line of credit, net | 45,000 |  |  | — |  |  | — |  |  | 45,000 |
Deposits | — |  |  | — |  |  | 1,431 |  |  | 1,431 |
Purchase and retirement of common stock | (14,220 | ) |  | — |  |  | — |  |  | (14,220 | )
Net issuance of common stock under equity compensation plans | 4,215 |  |  | — |  |  | — |  |  | 4,215 |
Payments for acquisition-related contingent consideration | — |  |  | (2,502 | ) |  | — |  |  | (2,502 | )
Intercompany transfers | (6,021 | ) |  | (48,726 | ) |  | 54,747 |  |  | — |
Net cash used in financing activities | 28,974 |  |  | (51,228 | ) |  | 56,178 |  |  | 33,924 |
Effects of exchange rate changes on cash and cash equivalents | — |  |  | — |  |  | 5,012 |  |  | 5,012 |
Net increase (decrease) in cash and cash equivalents | (1,780 | ) |  | (2 | ) |  | (36,135 | ) |  | (37,917 | )
Cash and cash equivalents, beginning of year | 10,186 |  |  | 159 |  |  | 179,616 |  |  | 189,961 |
Cash and cash equivalents, end of year | $ | 8,406 |  |  | $ | 157 |  |  | $ | 143,481 |  |  | $ | 152,044 |
Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2017
| FTI Consulting |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated
Operating activities |  |  |  |  |  |  |
Net cash used in operating activities | $ | (64,127 | ) |  | $ | (14,723 | ) |  | $ | (14,237 | ) |  | $ | (93,087 | )
Investing activities |  |  |  |  |  |  |
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 | )
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 increase (decrease) 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 |

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