Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Substantially all domestic subsidiaries are guarantors of borrowings under our Credit Facility and 2022 Notes. The guarantees are full and unconditional and joint and several. 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 September 30, 2018



	FTI Consulting		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	366,539	$	153	$	139,175	$	—		$	505,867
Accounts receivable, net	199,360		198,410		225,627		—			623,397
Intercompany receivables	—		1,202,019		—		(1,202,019		)	—
Other current assets	28,787		23,660		24,802		—			77,249
Total current assets	594,686		1,424,242		389,604		(1,202,019		)	1,206,513
Property and equipment, net	40,220		17,040		25,216		—			82,476
Goodwill	549,948		416,053		209,928		—			1,175,929
Other intangible assets, net	15,803		9,677		11,249		—			36,729
Investments in subsidiaries	2,238,436		508,895		—		(2,747,331		)	—
Other assets	36,861		44,749		45,581		—			127,191
Total assets	$	3,475,954	$	2,420,656	$	681,578	$	(3,949,350	)	$	2,628,838
Liabilities
Intercompany payables	$	1,201,765	$	—	$	254	$	(1,202,019	)	$	—
Current portion of long-term debt, net	296,851		—		—		—			296,851
Other current liabilities	135,680		177,554		127,315		—			440,549
Total current liabilities	1,634,296		177,554		127,569		(1,202,019		)	737,400
Long-term debt, net	263,317		—		—		—			263,317
Other liabilities	226,866		15,032		34,748		—			276,646
Total liabilities	2,124,479		192,586		162,317		(1,202,019		)	1,277,363
Stockholders' equity	1,351,475		2,228,070		519,261		(2,747,331		)	1,351,475
Total liabilities and stockholders' equity	$	3,475,954	$	2,420,656	$	681,578	$	(3,949,350	)	$	2,628,838

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 September 30, 2018



	FTI Consulting			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	177,547		$	169,236	$	167,855		$	(1,626	)	$	513,012
Operating expenses
Direct cost of revenues	113,645			118,795		105,639			(1,602		)	336,477
Selling, general and administrative expenses	56,586			28,949		31,937			(24		)	117,448
Amortization of other intangible assets	874			267		1,587			(753		)	1,975
	171,105			148,011		139,163			(2,379		)	455,900
Operating income	6,442			21,225		28,692			753			57,112
Other income (expense)	(26,239		)	17,522		6,287			9,615			7,185
Income before income tax provision	(19,797		)	38,747		34,979			10,368			64,297
Income tax provision (benefit)	(2,439		)	15,057		7,346			—			19,964
Equity in net earnings of subsidiaries	61,691			17,755		—			(79,446		)	—
Net income	$	44,333		$	41,445	$	27,633		$	(69,078	)	$	44,333
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $373	$	—		$	—	$	(4,180	)	$	—		$	(4,180	)
Other comprehensive loss, net of tax	—			—		(4,180		)	—			(4,180		)
Comprehensive income	$	44,333		$	41,445	$	23,453		$	(69,078	)	$	40,153

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended September 30, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	163,311		$	136,827		$	151,197	$	(2,373	)	$	448,962
Operating expenses
Direct cost of revenues	105,857			95,432			95,874		(2,312		)	294,851
Selling, general and administrative expenses	44,781			30,532			28,909		(61		)	104,161
Amortization of other intangible assets	1,304			541			1,795		(758		)	2,882
	151,942			126,505			126,578		(3,131		)	401,894
Operating income	11,369			10,322			24,619		758			47,068
Other income (expense)	(5,912		)	(4,548		)	4,803		—			(5,657		)
Income before income tax provision	5,457			5,774			29,422		758			41,411
Income tax provision	4,438			2,260			2,499		—			9,197
Equity in net earnings of subsidiaries	31,195			21,731			—		(52,926		)	—
Net income	$	32,214		$	25,245		$	26,923	$	(52,168	)	$	32,214
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	11,234	$	—		$	11,234
Other comprehensive income, net of tax	—			—			11,234		—			11,234
Comprehensive income	$	32,214		$	25,245		$	38,157	$	(52,168	)	$	43,448

Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended September 30, 2018



	FTI Consulting			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	550,437		$	485,653	$	492,130		$	(5,336	)	$	1,522,884
Operating expenses
Direct cost of revenues	344,856			338,858		309,570			(5,372		)	987,912
Selling, general and administrative expenses	160,739			88,423		98,311			—			347,473
Amortization of other intangible assets	2,622			994		5,014			(2,333		)	6,297
	508,217			428,275		412,895			(7,705		)	1,341,682
Operating income	42,220			57,378		79,235			2,369			181,202
Other income (expense)	(18,488		)	16,641		10,264			(13,385		)	(4,968		)
Income before income tax provision	23,732			74,019		89,499			(11,016		)	176,234
Income tax provision	4,478			26,074		18,795			—			49,347
Equity in net earnings of subsidiaries	107,633			85,322		—			(192,955		)	—
Net income	$	126,887		$	133,267	$	70,704		$	(203,971	)	$	126,887
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $373	$	—		$	—	$	(17,417	)	$	—		$	(17,417	)
Other comprehensive loss, net of tax	—			—		(17,417		)	—			(17,417		)
Comprehensive income	$	126,887		$	133,267	$	53,287		$	(203,971	)	$	109,470

Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended September 30, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	478,767		$	459,569		$	408,780	$	(7,095	)	$	1,340,021
Operating expenses
Direct cost of revenues	325,560			321,606			267,742		(6,914		)	907,994
Selling, general and administrative expenses	136,487			93,641			90,023		(181		)	319,970
Special charges	13,592			7,306			9,176		—			30,074
Amortization of other intangible assets	3,089			1,621			5,306		(2,219		)	7,797
	478,728			424,174			372,247		(9,314		)	1,265,835
Operating income	39			35,395			36,533		2,219			74,186
Other income (expense)	(16,525		)	(5,046		)	6,060		—			(15,511		)
Income (loss) before income tax provision	(16,486		)	30,349			42,593		2,219			58,675
Income tax provision (benefit)	(8,179		)	17,397			8,383		—			17,601
Equity in net earnings of subsidiaries	49,381			26,442			—		(75,823		)	—
Net income	$	41,074		$	39,394		$	34,210	$	(73,604	)	$	41,074
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0	$	—		$	—		$	28,778	$	—		$	28,778
Other comprehensive income, net of tax	—			—			28,778		—			28,778
Comprehensive income	$	41,074		$	39,394		$	62,988	$	(73,604	)	$	69,852

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2018



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by (used in) operating activities	$	30,078		$	146,956		$	(90,762	)	$	86,272
Investing activities
Proceeds from sale of business	50,283			—			—			50,283
Purchases of property and equipment	(10,187		)	(8,311		)	(9,343		)	(27,841		)
Other	91			—			650			741
Net cash provided by (used in) investing activities	40,187			(8,311		)	(8,693		)	23,183
Financing activities
Repayments under revolving line of credit, net	(100,000		)	—			—			(100,000		)
Proceeds from issuance of convertible notes	316,250			—			—			316,250
Payments of debt issue costs	(8,048		)	—			—			(8,048		)
Deposits	—			—			2,327			2,327
Purchase and retirement of common stock	(29,220		)	—			—			(29,220		)
Net issuance of common stock under equity compensation plans	31,241			—			—			31,241
Payments for acquisition-related contingent consideration	(500		)	(2,529		)	—			(3,029		)
Intercompany transfers	76,365			(136,122		)	59,757			—
Net cash provided by (used in) financing activities	286,088			(138,651		)	62,084			209,521
Effects of exchange rate changes on cash and cash equivalents	—			—			(3,070		)	(3,070		)
Net increase (decrease) in cash and cash equivalents	356,353			(6		)	(40,441		)	315,906
Cash and cash equivalents, beginning of year	10,186			159			179,616			189,961
Cash and cash equivalents, end of year	$	366,539		$	153		$	139,175		$	505,867

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2017



	FTI Consulting			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by (used in) operating activities	$	(6,155	)	$	40,052		$	(9,864	)	$	24,033
Investing activities
Payments for acquisition of businesses, net of cash received	(8,929		)	—			—			(8,929		)
Purchases of property and equipment	(5,943		)	(9,762		)	(4,316		)	(20,021		)
Other	74			—			—			74
Net cash used in investing activities	(14,798		)	(9,762		)	(4,316		)	(28,876		)
Financing activities
Borrowings under revolving line of credit, net	95,000			—			—			95,000
Deposits	—			—			3,585			3,585
Purchase and retirement of common stock	(155,285		)	—			—			(155,285		)
Net issuance of common stock under equity compensation plans	(2,354		)	—			—			(2,354		)
Payments for acquisition-related contingent consideration	(79		)	—			—			(79		)
Intercompany transfers	56,955			(30,287		)	(26,668		)	—
Net cash used in financing activities	(5,763		)	(30,287		)	(23,083		)	(59,133		)
Effects of exchange rate changes on cash and cash equivalents	—			—			5,779			5,779
Net increase (decrease) in cash and cash equivalents	(26,716		)	3			(31,484		)	(58,197		)
Cash and cash equivalents, beginning of year	47,420			156			168,582			216,158
Cash and cash equivalents, end of year	$	20,704		$	159		$	137,098		$	157,961