FTI CONSULTING, INC - 10-Q filing on 2015-04-30

Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Condensed Consolidating Balance Sheet Information as of March 31, 2015


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	135,170	$	156	$	89,969	$	—		$	225,295
Accounts receivable, net		171,301		169,641		172,343		—			513,285
Intercompany receivables		—		863,105		—		(863,105	)		—
Other current assets		71,707		20,883		16,764		—			109,354

Total current assets		378,178		1,053,785		279,076		(863,105	)		847,934
Property and equipment, net		34,856		15,460		29,073		—			79,389
Goodwill		558,978		416,053		226,621		—			1,201,652
Other intangible assets, net		28,820		17,717		49,418		(23,691	)		72,264
Investments in subsidiaries		1,921,809		473,695		—		(2,395,504	)		—
Other assets		49,359		75,478		45,293		—			170,130

Total assets	$	2,972,000	$	2,052,188	$	629,481	$	(3,282,300	)	$	2,371,369

Liabilities
Intercompany payables	$	823,998	$	11,004	$	28,103	$	(863,105	)	$	—
Other current liabilities		114,565		94,367		82,223		—			291,155

Total current liabilities		938,563		105,371		110,326		(863,105	)		291,155
Long-term debt, net		700,000		—		—		—			700,000
Other liabilities		216,183		10,833		35,944		—			262,960

Total liabilities		1,854,746		116,204		146,270		(863,105	)		1,254,115
Stockholders’ equity		1,117,254		1,935,984		483,211		(2,419,195	)		1,117,254

Total liabilities and stockholders’ equity	$	2,972,000	$	2,052,188	$	629,481	$	(3,282,300	)	$	2,371,369

Condensed Consolidating Balance Sheet Information as of December 31, 2014


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	171,090	$	159	$	112,431	$	—		$	283,680
Accounts receivable, net		153,495		162,032		169,574		—			485,101
Intercompany receivables		—		875,000		12,195		(887,195	)		—
Other current assets		74,455		22,994		17,943		—			115,392

Total current assets		399,040		1,060,185		312,143		(887,195	)		884,173
Property and equipment, net		33,864		17,050		31,249		—			82,163
Goodwill		559,318		416,053		236,318		—			1,211,689
Other intangible assets, net		29,807		18,432		53,357		(24,562	)		77,034
Investments in subsidiaries		1,915,869		484,162		—		(2,400,031	)		—
Other assets		61,025		78,388		36,055		—			175,468

Total assets	$	2,998,923	$	2,074,270	$	669,122	$	(3,311,788	)	$	2,430,527

Liabilities
Intercompany payables	$	832,253	$	14,197	$	40,745	$	(887,195	)	$	—
Other current liabilities		148,299		113,450		105,343		—			367,092

Total current liabilities		980,552		127,647		146,088		(887,195	)		367,092
Long-term debt, net		700,000		—		—		—			700,000
Other liabilities		215,625		14,955		30,109		—			260,689

Total liabilities		1,896,177		142,602		176,197		(887,195	)		1,327,781
Stockholders’ equity		1,102,746		1,931,668		492,925		(2,424,593	)		1,102,746

Total liabilities and stockholders’ equity	$	2,998,923	$	2,074,270	$	669,122	$	(3,311,788	)	$	2,430,527

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended

March 31, 2015


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	169,135		$	144,139		$	121,852		$	(2,788	)	$	432,338
Operating expenses
Direct cost of revenues		105,063			96,587			80,083			(2,703	)		279,030
Selling, general and administrative expenses		43,411			29,877			29,011			(85	)		102,214
Acquisition-related contingent consideration		65			169			—			—			234
Amortization of other intangible assets		986			715			2,181			(870	)		3,012

Operating income		19,610			16,791			10,577			870			47,848
Other (expense) income		(13,866	)		(2,010	)		3,371			—			(12,505	)

Income before income tax provision		5,744			14,781			13,948			870			35,343
Income tax provision		2,563			5,726			3,368			—			11,657
Equity in net earnings of subsidiaries		20,505			9,825			—			(30,330	)		—

Net income		23,686			18,880			10,580			(29,460	)		23,686

Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			(20,482	)		—			(20,482	)

Total other comprehensive loss, net of tax		—			—			(20,482	)		—			(20,482	)

Comprehensive income (loss)	$	23,686		$	18,880		$	(9,902	)	$	(29,460	)	$	3,204

Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended

March 31, 2014


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	151,032		$	252,083		$	120,527		$	(98,090	)	$	425,552
Operating expenses
Direct cost of revenues		99,498			195,699			76,857			(97,779	)		274,275
Selling, general and administrative expenses		45,298			28,500			34,900			(311	)		108,387
Acquisition-related contingent consideration		(598	)		(603	)		(642	)		—			(1,843	)
Amortization of other intangible assets		1,073			729			3,771			(957	)		4,616

Operating income		5,761			27,758			5,641			957			40,117
Other (expense) income		(13,314	)		(2,266	)		3,928			—			(11,652	)

Income (loss) before income tax provision		(7,553	)		25,492			9,569			957			28,465
Income tax (benefit) provision		(2,858)			11,046			2,160			—			10,348
Equity in net earnings of subsidiaries		22,812			6,333			—			(29,145	)		—

Net income		18,117			20,779			7,409			(28,188	)		18,117

Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0		—			—			4,728			—			4,728

Total other comprehensive income, net of tax		—			—			4,728			—			4,728

Comprehensive income	$	18,117		$	20,779		$	12,137		$	(28,188	)	$	22,845

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2015


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash used in operating activities	$	(27,664	)	$	(5,191	)	$	(18,478	)	$	(51,333	)
Investing activities
Purchases of property and equipment		(3,979	)		(3,513	)		(1,384	)		(8,876	)
Other		32			—			39			71

Net cash used in investing activities		(3,947	)		(3,513	)		(1,345	)		(8,805	)

Financing activities
Net issuance of common stock under equity compensation plans		4,031			—			—			4,031
Deposits		—			—			1,380			1,380
Other		(85	)		—			—			(85	)
Intercompany transfers		(8,255	)		8,701			(446	)		—

Net cash (used in) provided by financing activities		(4,309	)		8,701			934			5,326

Effect of exchange rate changes on cash and cash equivalents		—			—			(3,573	)		(3,573	)

Net decrease in cash and cash equivalents		(35,920	)		(3	)		(22,462	)		(58,385	)
Cash and cash equivalents, beginning of period		171,090			159			112,431			283,680

Cash and cash equivalents, end of period	$	135,170		$	156		$	89,969		$	225,295

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2014


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash used in operating activities	$	(16,876	)	$	(80,076	)	$	(13,843	)	$	(110,795	)
Investing activities
Payments for acquisition of businesses, net of cash received		(14,616	)		—			(995	)		(15,611	)
Purchases of property and equipment		(5,008	)		(1,047	)		(9,124	)		(15,179	)
Other		(10	)		—			—			(10	)

Net cash used in investing activities		(19,634	)		(1,047	)		(10,119	)		(30,800	)

Financing activities
Payments of long-term debt		20,000			—			—			20,000
Net issuance of common stock under equity compensation plans		(2,490	)		—			—			(2,490	)
Purchase and retirement of common stock		(4,367	)		—			—			(4,367	)
Other		442			(63	)		(480	)		(101	)
Intercompany transfers		(65,625	)		80,847			(15,222	)		—

Net cash (used in) provided by financing activities		(52,040	)		80,784			(15,702	)		13,042

Effect of exchange rate changes on cash and cash equivalents		—			—			(275	)		(275	)

Net decrease in cash and cash equivalents		(88,550	)		(339	)		(39,939	)		(128,828	)
Cash and cash equivalents, beginning of period		111,943			494			93,396			205,833

Cash and cash equivalents, end of period	$	23,393		$	155		$	53,457		$	77,005