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 September 30, 2017

	FTI		Guarantor		Non-Guarantor
	Consulting		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	20,704	$	159	$	137,098	$	—		$	157,961
Accounts receivable, net		164,357		173,846		208,929		—			547,132
Intercompany receivables		—		1,060,086		23,912		(1,083,998	)		—
Other current assets		34,862		21,344		26,914		—			83,120
Total current assets		219,923		1,255,435		396,853		(1,083,998	)		788,213
Property and equipment, net		33,317		14,749		22,916		—			70,982
Goodwill		570,876		416,053		217,235		—			1,204,164
Other intangible assets, net		19,730		11,772		31,023		(15,737	)		46,788
Investments in subsidiaries		2,149,817		549,280		—		(2,699,097	)		—
Other assets		39,279		64,537		46,630		—			150,446
Total assets	$	3,032,942	$	2,311,826	$	714,657	$	(3,798,832	)	$	2,260,593
Liabilities
Intercompany payables	$	1,083,998	$	—	$	—	$	(1,083,998	)	$	—
Other current liabilities		118,584		139,369		108,913		—			366,866
Total current liabilities		1,202,582		139,369		108,913		(1,083,998	)		366,866
Long-term debt, net		461,095		—		—		—			461,095
Other liabilities		238,336		11,362		52,005		—			301,703
Total liabilities		1,902,013		150,731		160,918		(1,083,998	)		1,129,664
Stockholders' equity		1,130,929		2,161,095		553,739		(2,714,834	)		1,130,929
Total liabilities and stockholders' equity	$	3,032,942	$	2,311,826	$	714,657	$	(3,798,832	)	$	2,260,593

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 September 30, 2017

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			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			30,280			28,909		(61	)		103,909
Special charges		—			—			—		—			—
Acquisition-related contingent consideration		—			252			—		—			252
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 Three Months Ended September 30, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting			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
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 income (expense)		(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 (benefit)		(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 for the Nine Months Ended September 30, 2017

	FTI			Guarantor			Non-Guarantor
	Consulting, Inc.			Subsidiaries			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			92,217			90,023		(181	)		318,546
Special charges		13,592			7,306			9,176		—			30,074
Acquisition-related contingent consideration		—			1,424			—		—			1,424
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
Total 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 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 income (expense)		(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 Cash Flows for the Nine Months Ended September 30, 2017

	FTI			Guarantor			Non-Guarantor
	Consulting			Subsidiaries			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	)
Other		(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

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2016

	FTI			Guarantor			Non-Guarantor
	Consulting			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