Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2010	Feb. 18, 2011	Jun. 30, 2010
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Trading Symbol	FCN
Entity Registrant Name	FTI CONSULTING INC
Entity Central Index Key	0000887936
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 2,100,000,000
Entity Common Stock, Shares Outstanding		46,210,134

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Current assets
Cash and cash equivalents	$ 384,570	$ 118,872
Restricted cash	10,518
Accounts receivable:
Billed receivables	268,386	241,911
Unbilled receivables	120,896	104,959
Allowance for doubtful accounts and unbilled services	(63,205)	(59,328)
Accounts receivable, net	326,077	287,542
Current portion of notes receivable	26,130	20,853
Prepaid expenses and other current assets	28,174	45,157
Income taxes receivable	13,246	7,015
Deferred income taxes		20,476
Total current assets	788,715	499,915
Property and equipment, net of accumulated depreciation	73,238	80,678
Goodwill	1,269,447	1,195,949
Other intangible assets, net of amortization	134,970	175,962
Notes receivable, net of current portion	87,677	69,213
Other assets	60,312	55,621
Total assets	2,414,359	2,077,338
Current liabilities
Accounts payable, accrued expenses and other	105,864	81,193
Accrued compensation	143,971	152,807
Current portion of long-term debt and capital lease obligations	7,559	138,101
Billings in excess of services provided	27,836	34,101
Deferred income taxes	4,052
Total current liabilities	289,282	406,202
Long-term debt and capital lease obligations, net of current portion	785,563	417,397
Deferred income taxes	92,134	95,704
Other liabilities	80,061	53,821
Total liabilities	1,247,040	973,124
Commitments and contingent liabilities (notes 8, 14 and 15)
Stockholders' equity
Preferred stock, $0.01 par value; shares authorized - 5,000; none outstanding
Common stock, $0.01 par value; shares authorized - 75,000; shares issued and outstanding - 46,144 (2010) and 46,985 (2009)	461	470
Additional paid-in capital	532,929	535,754
Retained earnings	687,419	615,529
Accumulated other comprehensive loss	(53,490)	(47,539)
Total stockholders' equity	1,167,319	1,104,214
Total liabilities and stockholders' equity	$ 2,414,359	$ 2,077,338

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Consolidated Balance Sheets
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	75,000	75,000
Common stock, shares issued	46,144	46,985
Common stock, shares outstanding	46,144	46,985

Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Income
Revenues	$ 1,401,461	$ 1,399,946	$ 1,293,145
Operating expenses
Direct cost of revenues	815,776	767,387	708,783
Selling, general and administrative expense	341,314	344,318	330,191
Special charges	52,020
Amortization of other intangible assets	23,910	24,701	18,824
Costs and expenses, total	1,233,020	1,136,406	1,057,798
Operating income	168,441	263,540	235,347
Other income (expense)
Interest income and other	4,423	8,408	8,179
Interest expense	(50,263)	(44,923)	(45,105)
Loss on early extinguishment of debt	(5,161)
Other income (expense), total	(51,001)	(36,515)	(36,926)
Income before income tax provision	117,440	227,025	198,421
Income tax provision	45,550	83,999	77,515
Net income	$ 71,890	$ 143,026	$ 120,906
Earnings per common share - basic	$ 1.58	$ 2.86	$ 2.46
Earnings per common share - diluted	$ 1.51	$ 2.70	$ 2.26

Consolidated Statements of Stockholders' Equity and Comprehensive Income (USD $) In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income
Beginning Balance at Dec. 31, 2007	$ 978,274	$ 489	$ 617,339	$ 351,597	$ 8,849
Beginning Balance (in shares) at Dec. 31, 2007		48,918
Comprehensive income:
Cumulative translation adjustment, net of income taxes	(87,879)				(87,879)
Unrealized gains on cash equivalents, net of taxes	55				55
Net income	120,906			120,906
Total comprehensive income	33,082
Reacquisition of equity component of convertible debt	(47)		(47)
Issuance of common stock in connection with:
Exercise of options, including income tax benefit from share- based awards (in shares)		548
Exercise of options, including income tax benefit from share- based awards	23,199	6	23,193
Employee stock purchase plan (in shares)		302
Employee stock purchase plan	13,341	3	13,338
Restricted share grants, less net settled shares (in shares)		233
Restricted share grants, less net settled shares	(4,931)	2	(4,933)
Stock units issued under incentive compensation plan	3,496		3,496
Business combinations (in shares)		902
Business combinations	54,931	9	54,922
Share-based compensation	26,212		26,212
Ending Balance at Dec. 31, 2008	1,127,557	509	733,520	472,503	(78,975)
Ending Balance (in shares) at Dec. 31, 2008		50,903
Comprehensive income:
Cumulative translation adjustment, net of income taxes	31,436				31,436
Net income	143,026			143,026
Total comprehensive income	174,462
Reacquisition of equity component of convertible debt	(3)		(3)
Issuance of common stock in connection with:
Exercise of options, including income tax benefit from share- based awards (in shares)		564
Exercise of options, including income tax benefit from share- based awards	19,142	6	19,136
Employee stock purchase plan (in shares)		138
Employee stock purchase plan	5,237	1	5,236
Restricted share grants, less net settled shares (in shares)		216
Restricted share grants, less net settled shares	(3,373)	3	(3,376)
Stock units issued under incentive compensation plan	5,308		5,308
Business combinations (in shares)		39
Business combinations	1,344		1,344
Purchase and retirement of common stock (in shares)		(4,875)
Purchase and retirement of common stock	(250,000)	(49)	(249,951)
Share-based compensation	24,540		24,540
Ending Balance at Dec. 31, 2009	1,104,214	470	535,754	615,529	(47,539)
Ending Balance (in shares) at Dec. 31, 2009	46,985	46,985
Comprehensive income:
Cumulative translation adjustment, net of income taxes	(5,951)				(5,951)
Net income	71,890			71,890
Total comprehensive income	65,939
Issuance of common stock in connection with:
Exercise of options, including income tax benefit from share- based awards (in shares)		408
Exercise of options, including income tax benefit from share- based awards	10,516	4	10,512
Restricted share grants, less net settled shares (in shares)		510
Restricted share grants, less net settled shares	(4,094)	5	(4,099)
Stock units issued under incentive compensation plan	6,531		6,531
Business combinations (in shares)
Business combinations	(2,931)		(2,931)
Purchase and retirement of common stock (in shares)		(1,759)
Purchase and retirement of common stock	(40,634)	(18)	(40,616)
Share-based compensation	27,778		27,778
Ending Balance at Dec. 31, 2010	$ 1,167,319	$ 461	$ 532,929	$ 687,419	$ (53,490)
Ending Balance (in shares) at Dec. 31, 2010	46,144	46,144

Consolidated Statements of Stockholders' Equity and Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Stockholders' Equity and Comprehensive Income
Cumulative translation adjustment, taxes	$ 1,484	$ 1,483	$ 4,957
Unrealized gains on cash equivalents, taxes			30
Exercise of options, income tax benefit	$ 227	$ 5,307	$ 11,048
Restricted share grants, settled shares	106	71	86

Consolidated Statements of Cash Flow (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Operating activities
Net income	$ 71,890	$ 143,026	$ 120,906
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	31,334	28,765	26,037
Amortization and impairment of other intangible assets	47,666	24,702	18,824
Provision for doubtful accounts	10,720	19,866	22,474
Non-cash share-based compensation	27,121	25,631	26,381
Excess tax benefits from share-based compensation	(204)	(5,193)	(10,820)
Non-cash interest expense	12,670	7,214	7,124
Other	1,667	(1,604)	3,407
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, billed and unbilled	(18,881)	(13,314)	(49,251)
Notes receivable	(24,500)	(18,364)	(9,377)
Prepaid expenses and other assets	1,136	1,334	(11,577)
Accounts payable, accrued expenses and other	19,033	(14,179)	(3,382)
Income taxes	12,176	29,877	12,990
Accrued compensation	9,357	20,090	32,836
Billings in excess of services provided	(6,131)	2,918	10,908
Net cash provided by operating activities	195,054	250,769	197,480
Investing activities
Payments for acquisition of businesses, net of cash received	(63,086)	(46,710)	(343,169)
Purchases of property and equipment	(22,600)	(28,557)	(35,674)
Purchases of short-term investments		(35,717)
Proceeds from sale or maturity of short-term investments	15,000	20,576
Other	(400)	520	4,703
Net cash used in investing activities	(71,086)	(89,888)	(374,140)
Financing activities
Borrowings under revolving line of credit	20,000
Payments of revolving line of credit	(20,000)
Payments of short-term borrowings of acquired subsidiary			(2,275)
Payments of long-term debt and capital lease obligations	(209,747)	(13,761)	(8,744)
Issuance of debt securities, net	390,445
Payments of debt financing fees	(3,054)
Cash received for settlement of interest rate swaps		2,288
Purchase and retirement of common stock	(40,634)	(250,000)
Net issuance of common stock under equity compensation plans	6,196	15,699	20,562
Excess tax benefit from share-based compensation	204	5,193	10,820
Other	442	303	(112)
Net cash provided by (used in) financing activities	143,852	(240,278)	20,251
Effect of exchange rate changes and fair value adjustments on cash and cash equivalents	(2,122)	6,427	(12,212)
Net increase (decrease) in cash and cash equivalents	265,698	(72,970)	(168,621)
Cash and cash equivalents, beginning of period	118,872	191,842	360,463
Cash and cash equivalents, end of period	384,570	118,872	191,842
Supplemental cash flow disclosures
Cash paid for interest	35,441	38,741	39,013
Cash paid for income taxes, net of refunds	33,237	54,122	64,945
Non-cash investing and financing activities:
Issuance of common stock to acquire businesses		1,166	54,931
Issuance of notes payable to acquire businesses	39,772	12,266	506
Issuance of stock units under incentive compensation plans	$ 6,531	$ 5,308	$ 3,496

Description of Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Description of Business and Summary of Significant Accounting Policies

Description of Business and Summary of Significant Accounting Policies

1. Description of Business and Summary of Significant Accounting Policies

Description of Business

FTI Consulting, Inc. including its consolidated subsidiaries (collectively, "we", "our" or "FTI"), is a leading global business advisory firm dedicated to helping organizations protect and enhance their enterprise value. Our experienced teams of professionals include many individuals who are widely recognized as experts in their respective fields. We believe clients retain us because of our recognized expertise and capabilities in highly specialized areas as well as our reputation for satisfying our clients' needs. We operate through five business segments: Corporate Finance/Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications.

Accounting Principles

Our financial statements are prepared in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP").

Subsequent Events

Subsequent events have been evaluated through the date the financial statements were issued.

Consolidation

The consolidated financial statements reflect the operating results of FTI and its majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated.

Foreign Currency

Results of operations for our non-U.S. subsidiaries are translated from the designated functional currency to the reporting currency of the U.S. dollar. Revenues and expenses are translated at average exchange rates for each month while assets and liabilities are translated at balance sheet date exchange rates. Resulting translation adjustments are recorded as a component of stockholders' equity in "Accumulated other comprehensive (loss) income."

Transaction gains and losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in "Interest income and other" on our Consolidated Statements of Income. Such transaction gains and losses may be realized or unrealized depending upon whether the transaction settled during the period or remains outstanding at the balance sheet date.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Due to the inherent uncertainty involved in making those assumptions, actual results could differ from those estimates. The most significant estimates made and assumptions used are the determination of the allowance for doubtful accounts, the valuation of stock-based compensation, the determination of self-insurance reserves for certain employee benefit plans, accruals for incentive compensation, the fair value of acquisition-related contingent consideration, the measurement of deferred tax assets and the assessment of recoverability of intangible assets and goodwill. Management bases its estimates on historical trends, current experience and other assumptions that it believes are reasonable.

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, the related services are provided, the price is fixed or determinable and collectability is reasonably assured. We generate the majority of our revenues from providing professional services under four types of billing arrangements: time-and-expense, fixed-fee, performance-based and unit-based.

Time-and-expense billing arrangements require the client to pay based on the number of hours worked by our revenue-generating professionals at contractually agreed-upon rates. We recognize revenues for our professional services rendered under time-and-expense engagements based on the hours incurred at agreed-upon rates as work is performed.

In fixed-fee billing arrangements, we agree to a pre-established fee in exchange for a pre-determined set of professional services. Generally, the client agrees to pay a fixed-fee every month over the specified contract term. These contracts are for varying periods and generally permit the client to cancel the contract before the end of the term. We recognize revenues for our professional services rendered under these fixed-fee billing arrangements monthly over the specified contract term or, in certain cases, revenue is recognized on the proportional performance method of accounting based on the ratio of labor hours incurred to estimated total labor hours, which we consider to be the best available indicator of the pattern and timing in which such contract obligations are fulfilled.

In performance-based or contingent billing arrangements, fees are tied to the attainment of contractually defined objectives. Often this type of arrangement supplements a time-and-expense or fixed-fee engagement, where payment of a performance-based fee is deferred until the conclusion of the matter or upon the achievement of performance-based criteria. We do not recognize revenues under performance-based billing arrangements until all related performance criteria are met and collection of the fee is reasonably assured.

In our Technology segment, unit-based revenues are based on either the amount of data stored or processed, the number of concurrent users accessing the information, or the number of pages or images processed for a client. We recognize revenues for our professional services rendered under unit-based engagements as the services are provided based on agreed-upon rates. We also generate certain revenue from software licenses and maintenance. We have vendor-specific objective evidence of fair value for support and maintenance separate from software for the majority of our products. Accordingly, when licenses of certain offerings are included in an arrangement with support and maintenance, we recognize the license revenue upon delivery of the license and recognize the support and maintenance revenue over the term of the maintenance service period. Substantially all of our software license agreements do not include any acceptance provisions. If an arrangement allows for customer acceptance of the software, we defer revenue until the earlier of customer acceptance or when the acceptance provisions lapse. Hosting revenues from hosting-fees are recognized ratably over the term of the hosting agreement. We have certain arrangements with clients in which we provide multiple elements of services under one engagement contract. Revenues under these types of arrangements are accounted for in accordance ASC 605-25, Multiple-Element Arrangements, and recognized pursuant to the criteria described above.

Some clients pay us retainers before we begin any work for them. We hold retainers on deposit until we have completed the work. We generally apply these retainers to final billings and refund any excess over the final amount billed to clients, as appropriate, when we complete our work. If the client is in bankruptcy, fees for our services may be subject to approval by the court. In some cases, a portion of the fees to be paid to us by a client is required by a court to be held until completion of our work and final fee settlements have been negotiated. We make a determination whether to record all or a portion of such holdback as revenue prior to collection on a case-by-case basis.

If at the outset of an arrangement we determine that the arrangement fee is not fixed or determinable, revenue is deferred until all criteria for recognizing revenue are met. Reimbursable expenses, including those relating to travel, out-of pocket expenses, outside consultants and other similar costs, are generally included in revenues, and an equivalent amount of reimbursable expenses is included in costs of services in the period in which the expense is incurred. Any taxes assessed on revenues relating to services provided to our clients are recorded on a net basis. Revenues recognized, but not yet billed to clients, have been recorded as unbilled receivables in the consolidated balance sheets.

Direct Cost of Revenues

Direct cost of revenues consists primarily of billable employee compensation and related payroll benefits, the cost of consultants assigned to revenue-generating activities and direct expenses billable to clients. Direct cost of revenues also includes depreciation expense on the equipment of our Technology segment that is used to host and process client information. Direct cost of revenues does not include an allocation of overhead costs.

Share-Based Compensation

We recognize share-based compensation using a fair value based recognition method. Share-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as expense over the requisite service period or performance period of the award. The amount of share-based compensation expense recognized at any date must at least equal the portion of grant date value of the award that is vested at that date.

We use the Black-Scholes pricing model to determine the fair value of stock options on the dates of grant. The Black-Scholes pricing model requires various highly judgmental assumptions including volatility and expected term, which are based on our historical experience. We also make assumptions regarding the risk-free interest rate and the expected dividend yield. The risk-free interest rate is based on U.S. Treasury interest rates whose term is consistent with the expected term of the share-based award. The dividend yield on our common stock is assumed to be zero since we do not pay dividends and have no current plans to do so in the future.

Restricted stock is measured based on the closing price of the underlying stock on the dates of grant. Awards with performance-based vesting conditions require the achievement of specific financial targets at the end of the specified performance period and the employee's continued employment. We recognize the estimated fair value of performance-based awards as share-based compensation expense over the performance period. We consider each performance period separately, based upon our determination of whether it is probable that the performance target will be achieved. At each reporting period, we reassess the probability of achieving the performance targets. If a performance target is not met, no compensation cost is ultimately recognized against that target, and, to the extent previously recognized, compensation expense is reversed.

For all our share-based awards, we estimate the expected forfeiture rate and recognize expense only for those shares expected to vest. We estimate the forfeiture rate based on historical experience. Groups of share-based award holders that have similar historical behavior with regard to option exercise timing and forfeiture rates are considered separately for valuation and attribution purposes. Forfeitures are estimated at the time an award is granted and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Selling, General, and Administrative Expense

Research and Development

Research and development costs related to software development are expensed as incurred. Development activities involve a plan or design for the production of new or substantially improved products. When we have determined that technological feasibility for our software products is reached, costs related to the project are capitalized until such products are available for general release to customers as discussed in "Capitalized Software to be Sold, Leased or Otherwise Marketed" below.

Advertising Costs

Advertising costs consist of marketing, advertising through print and other media, professional event sponsorship and public relations. These costs are expensed as incurred. Advertising costs totaled $20.7 million, $18.1 million, and $10.9 million during 2010, 2009 and 2008, respectively.

Income Taxes

Our income tax provision consists principally of federal, state and international income taxes. We generate income in a significant number of states located throughout the U.S. as well as foreign countries in which we conduct business. Our effective income tax rate may fluctuate due to a change in the mix of earnings between higher and lower state or country tax jurisdictions and the impact of non-deductible expenses. Additionally, we record deferred tax assets and liabilities using the asset and liability method of accounting which requires us to measure these assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

Cash Equivalents and Short-Term Investments

Cash equivalents consist of highly liquid short-term investments, principally money market funds, commercial paper and certificates of deposit with maturities of three months or less at the time of purchase. In addition, we also may invest in short-term investments with maturities greater than three months, consisting primarily of certificates of deposit and treasury bills. Any short-term investments are classified as available-for- sale and carried at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in "Accumulated other comprehensive (loss) income," which is reflected as a separate component of stockholders' equity. Gains on the sale of commercial paper or treasury bills are recognized when realized in our Consolidated Statements of Income. Losses are recognized as realized or when we have determined that an "other-than-temporary" decline in fair value has occurred. Gains and losses are determined using the specific identification method. Short-term investments at December 31, 2009 consisted of $15.0 million of certificates of deposit carried at cost, which approximates fair value, and included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet. There were no short-term investments at December 31, 2010.

Restricted Cash

We classify cash that is restricted as to usage or withdrawal as restricted cash on our Consolidated Balance Sheets. Restricted cash is typically held in short-term interest-bearing accounts until disbursed. Restricted cash at December 31, 2010 totaled $10.5 million. No amounts were classified as restricted cash at December 31, 2009.

Allowance for Doubtful Accounts and Unbilled Services

We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of clients to pay our fees or for disputes that affect our ability to fully collect our billed accounts receivable, as well as potential fee reductions negotiated by clients or imposed by bankruptcy courts. Even if a bankruptcy court approves our services, it has the discretion to require us to refund all or a portion of our fees due to the outcome of the case or a variety of other factors. We estimate the allowance for all receivable risks by reviewing the status of each matter and recording reserves based on our experience and knowledge of the particular client and historical collection patterns. However, our actual experience may vary significantly from our estimates. If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay our fees, or bankruptcy courts requires us to refund certain fees, we may need to record additional allowances or write-offs in future periods. This risk is mitigated to the extent that we may receive retainers from some of our clients prior to performing services.

The provision for doubtful accounts is recorded after the related work has been billed to the client and we discover that full collectability is not reasonably assured. It is classified in "Selling, general and administrative expense" on the Consolidated Statements of Income and totaled $10.7 million, $19.9 million, and $22.5 million for the years ended December 31, 2010, 2009 and 2008, respectively. The provision for unbilled services is normally recorded prior to customer billing and is recorded as a reduction to revenues. This provision normally relates to fee adjustments, estimates of fee reductions that may be imposed by bankruptcy courts and other discretionary pricing adjustments.

Property and Equipment

We record property and equipment, including improvements that extend useful lives, at cost, while maintenance and repairs are charged to operations as incurred. We calculate depreciation using the straight-line method based on estimated useful lives ranging from three to seven years for furniture, equipment and internal use software. We amortize leasehold improvements over the shorter of the estimated useful life of the asset or the lease term. We capitalize costs incurred during the application development stage of computer software developed or obtained for internal use. Capitalized software developed for internal use is classified within furniture, equipment and software and is amortized over the estimated useful life of the software, which is generally three years.

Notes Receivable from Employees

Notes receivable due from employees principally include unsecured general recourse forgivable loans to attract and retain highly-skilled professionals. Some or all of the principal amount and accrued interest of the loans we make to employees will be forgiven by us upon the passage of time, provided that the professional is an employee on the forgiveness date, and upon other specified events, such as death or disability. Professionals who terminate their employment with us prior to the end of the forgiveness period are required to repay the outstanding, unforgiven loan balance and any accrued but unforgiven interest, except, in most cases, if the termination was by the Company without cause or by the employee with good reason. We amortize forgivable loans to expense on a straight-line basis over their forgiveness periods of one to ten years. We record interest income on the notes and compensation expense, as such interest is forgiven.

Goodwill and Other Intangible Assets

Goodwill represents the purchase price of acquired businesses in excess of the fair market value of net assets acquired. Other intangible assets include trade names, customer relationships, contract backlog, non-competition agreements and software.

We test our goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter or whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Factors we consider important that could trigger an interim impairment review include, but are not limited to, the following:

•

significant underperformance relative to expected historical or projected future operating results;

•

a significant change in the manner of our use of the acquired asset or the strategy for our overall business;

•

a significant negative industry or economic trend; and or

•

our market capitalization relative to net book value.

We assess our goodwill for impairment using a fair value approach at the reporting unit level. A reporting unit is an operating segment or a business one level below that operating segment if discrete financial information is available and regularly reviewed by segment management. When available and as appropriate, we use market multiples derived from a set of comparables to establish fair values (a market approach). If a set of comparables are not available, we estimate fair value using discounted cash flows (an income approach).

Intangible assets with definite lives are amortized over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate an asset's carrying value may not be recoverable. We amortize our acquired definite-lived intangible assets on a straight-line basis over periods ranging primarily from 5 to 15 years.

As of December 31, 2010, we concluded that our goodwill and other intangible assets were not impaired.

Impairment of Long-Lived Assets

We review long-lived assets such as property and equipment and definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability of assets to be held and used by a comparison of the carrying value of the assets to future undiscounted net cash flows expected to be generated by the assets. We group assets at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset group, we estimate the fair value of the asset group to determine whether an impairment loss should be recognized. An impairment loss will be recognized for the difference between the fair value and carrying value of the asset group. If fair value is determined using discounted cash flows, the discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk.

Debt Financing Fees

We amortize the costs we incur to obtain debt financing over the terms of the underlying obligations on a straight-line basis. The amortization of debt financing costs is included in "Interest expense" in our Consolidated Statements of Income. Unamortized debt financing costs are classified within "Other assets" on our Consolidated Balance Sheets.

Capitalized Software to be Sold, Leased or Otherwise Marketed

We expense costs for software products that will be sold, leased or otherwise marketed until technological feasibility has been established. Thereafter, all software development costs are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. Capitalized costs are amortized based on current and future revenue for each product with an annual minimum equal to the straight-line amortization over the remaining estimated economic life of the product. We classify software products to be sold, leased or otherwise marketed as noncurrent "Other assets" on our Consolidated Balance Sheets. Unamortized capitalized software costs were $7.0 million and $5.6 million at December 31, 2010 and 2009, respectively. Amortization of capitalized software costs was $1.7 million, $1.0 million and $0.5 million for the years ended December 31, 2010, 2009 and 2008, respectively.

Leases

We lease office space and equipment under non-cancelable operating leases. The leases normally provide for the payment of minimum annual rentals and may include scheduled rent increases. Some leases include provisions for renewal options of up to five years. Some of our leases for office space contain provisions whereby the future rental payments may be adjusted for increases in operating expenses above specified amounts.

We recognize rent expense under operating leases on a straight-line basis over the non-cancelable lease term. For leases with scheduled rent increases this treatment results in a deferred rent liability, which is classified within "Other liabilities" on the Consolidated Balance Sheets. Lease inducements such as tenant improvement allowances, cash inducements, and rent abatements are amortized on a straight-line basis over the life of the lease. Unamortized lease inducements are also included in deferred rent. Deferred rent at December 31, 2010 and 2009 totaled $43.9 million and $37.8 million, respectively.

Interest Rate Swaps

We sometimes use derivative instruments, consisting primarily of interest rate swap agreements, to manage our exposure to changes in the fair values or future cash flows of some of our long-term debt. We may enter into interest rate swap transactions with financial institutions acting as the counter-party. We do not use derivative instruments for trading or other speculative purposes. At December 31, 2010, we were not a party to any derivative instruments.

Billings in Excess of Services Provided

Billings in excess of services provided represent amounts billed to clients, such as retainers, in advance of work being performed. Clients may make advance payments, which are held on deposit until completion of work or are applied at predetermined amounts or times. Excess payments are either applied to final billings or refunded to clients upon completion of work. Payments in excess of related accounts receivable and unbilled receivables are recorded as billings in excess of services provided within the liabilities section of our Consolidated Balance Sheets.

Earnings Per Common Share

12 Months Ended

Dec. 31, 2010

Earnings Per Common Share

Earnings Per Common Share

2. Earnings Per Common Share

Basic earnings per common share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share adjust basic earnings per share for the effects of potentially dilutive common shares. Potentially dilutive common shares include the dilutive effects of shares issuable under our equity compensation plans, including stock options and restricted stock, and shares issuable upon conversion of our 3 ³/4% senior subordinated convertible notes ("Convertible Notes") assuming the conversion premium was converted into common stock based on the average closing price per share of our stock during the period, each using the treasury stock method. The conversion feature of our Convertible Notes had a dilutive effect on our earnings per share for the years presented below because the average closing price per share of our common stock for such periods was above the conversion price of the Convertible Notes of $31.25 per share.


	Year Ended December 31,
	2010		2009		2008
Numerator—basic and diluted
Net income	$	71,890	$	143,026	$	120,906

Denominator
Weighted average number of common shares outstanding — basic		45,557		49,963		49,193
Effect of dilutive stock options		854		1,167		1,600
Effect of dilutive convertible notes		863		1,613		2,367
Effect of dilutive restricted shares		197		301		443

Weighted average number of common shares outstanding — diluted		47,471		53,044		53,603

Earnings per common share — basic	$	1.58	$	2.86	$	2.46

Earnings per common share — diluted	$	1.51	$	2.70	$	2.26

Antidilutive stock options and restricted shares		1,722		1,102		455

New Accounting Standards Not Yet Adopted

12 Months Ended

Dec. 31, 2010

New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

3. New Accounting Standards Not Yet Adopted

In October 2009, the FASB issued ASU 2009-13, Multiple-Deliverable Revenue Arrangements ("ASU 2009-13"), which affects ASC 605, Revenue Recognition. ASU 2009-13 amends the criteria for separating consideration in multiple-deliverable arrangements. It eliminates the requirement under previous guidance that all undelivered elements have vendor-specific objective evidence ("VSOE") or third-party evidence ("TPE") of fair value before recognizing a portion of revenue related to the delivered items, and establishes that revenue be allocated to each element based on its relative selling price, as determined by VSOE, TPE, or the entity's estimated selling price if neither of the aforementioned is available. Additionally, ASU 2009-13 eliminates the residual method of allocation and expands required disclosures about multiple-element revenue arrangements. We are required to adopt the amendments in ASU 2009-13 prospectively for revenue arrangements entered into or materially modified beginning January 1, 2011, with early adoption permitted. We do not believe the adoption of this accounting pronouncement will have a material impact on our results of operations, financial position or cash flows.

Special Charges

12 Months Ended

Dec. 31, 2010

Special Charges

Special Charges

4. Special Charges

During the year ended December 31, 2010, we recorded special charges of $52.0 million, of which $32.3 million was non-cash. The special charges were primarily related to our global branding strategy and other strategic branding decisions, a realignment of our workforce and a consolidation of four office locations. The charges reflect actions we took to support our corporate positioning, as well as actions taken to better align capacity with expected demand, to eliminate certain redundancies resulting from acquisitions and to provide for appropriate levels of administrative support. The $52.0 million special charges consist of:

•

$23.8 million of impairment charges and accelerated amortization of acquired trade names (See Note 13 to the Consolidated Financial Statements for information on these charges);

•

$18.2 million of salary continuance and other contractual employee related costs associated with the reduction in workforce of 144 employees, including reserves against employee advances, costs related to loan forgiveness and accelerated vesting of share-based awards;

•

$6.9 million of expense associated with lease terminations related to the consolidation of four office locations; and

•

$3.1 million of accelerated amortization related to a software solution which will no longer be utilized by the Company.

The following table details the special charges by segment:


Corporate Finance/Restructuring	$	10,466
Forensic and Litigation Consulting		5,026
Economic Consulting		6,667
Technology		15,913
Strategic Communications		9,044

		47,116
Unallocated Corporate		4,904

Total	$	52,020

The total cash outflow associated with the special charges is expected to be $19.8 million, of which $15.1 million has been paid as of December 31, 2010, and the balance of approximately $4.7 million is expected to be paid in 2011. A liability for the amounts to be paid is included in "Accounts payable, accrued expenses and other" on the Condensed Consolidated Balance Sheets. Activity related to the liability for these costs for the year ended December 31, 2010 is as follows:


	Employee Termination Costs			Lease Termination Costs			Total
Balance at January 1, 2010	$	—		$	—		$	—
Additions		12,069			7,701			19,770
Payments		(10,149	)		(4,939	)		(15,088	)

Balance at December 31, 2010	$	1,920		$	2,762		$	4,682

Interest Income and Other

12 Months Ended

Dec. 31, 2010

Interest Income and Other

Interest Income and Other

5. Interest Income and Other

The table below presents the components of "Interest income and other" as shown on the Consolidated Statements of Income.


	Year Ended December 31,
	2010			2009			2008
Interest income	$	5,442		$	5,645		$	7,454
Foreign exchange transaction gains (losses), net		(542	)		587			899
Remeasurement gain on acquisition of German joint venture		—			2,277			—
Litigation settlement (losses) gains, net		—			250			(661	)
Other		(477	)		(351	)		487

Interest income and other	$	4,423		$	8,408		$	8,179

See Note 8 to the Consolidated Financial Statements for information on the remeasurement gain.

Share-Based Compensation

12 Months Ended

Dec. 31, 2010

Share-Based Compensation

Share-Based Compensation

6. Share-Based Compensation

Share-Based Incentive Compensation Plans

Our 2004 Long-Term Incentive Plan ("2004 Plan") authorizes common stock for stock option rights, stock appreciation rights, restricted or unrestricted shares, performance awards or other share-based or cash–based awards to our officers, employees, non-employee directors and individual service providers, subject to the discretion of the administrator to make awards. We are authorized to issue up to 3,000,000 shares of common stock under the 2004 Plan, of which no more than 600,000 shares of common stock may be issued in the form of restricted or unrestricted shares or other share-based awards. As of December 31, 2010, there are no shares of common stock available for grant under our 2004 Long-Term Incentive Plan.

The FTI Consulting, Inc. 2006 Global Long-Term Incentive Plan ("2006 Plan") authorizes common stock for stock options, stock appreciation rights, restricted or unrestricted shares, performance awards or other share-based or cash-based awards to our officers, employees, non-employee directors and individual service providers, subject to the discretion of the administrator to make awards. We are authorized to issue up to 3,500,000 shares of common stock under the 2006 Plan, of which no more than 1,100,000 shares of common stock may be issued in the form of restricted or unrestricted shares or other share-based awards. As of December 31, 2010, 10,179 shares of common stock were available for grant under our 2006 Plan, of which 6,073 shares may be granted as share-based awards.

The amendment and restatement of the FTI Consulting, Inc. Deferred Compensation Plan for Key Employees and Non-Employee Directors, as previously amended (the "Deferred Compensation Plan"), (renamed the FTI Consulting, Inc. 2009 Omnibus Incentive Compensation Plan ("Omnibus Plan")), was approved by the stockholders of FTI on June 3, 2009 and was amended as of June 2, 2010. The Omnibus Plan authorizes common stock for stock options, stock appreciation rights, restricted or unrestricted shares, performance awards or other share-based or cash-based awards to our officers, employees, non-employee directors and individual service providers, subject to the discretion of the administrator to make awards, incentive compensation in the form of equity and equity-based awards. The Omnibus Plan also authorizes common stock in connection with the issuance of deferred share units or deferred restricted share units on account of certain eligible compensation electively deferred by our non-employee directors and certain key employees (excluding executive officers of FTI). We are authorized to issue up to 6,000,000 shares of common stock under the Omnibus Plan, of which no more than 5,400,00 shares of common stock may be issued in the form of restricted or unrestricted shares or other share-based awards. As of December 31, 2010, 4,408,719 shares of common stock were available for grant under our 2009 Omnibus Plan, all of which may be granted as share-based awards.

Options have been granted to employees with exercise prices equal to or greater than the market value of our common stock on the grant date and expire ten years subsequent to award. Vesting provisions for individual awards are established at the grant date at the discretion of the compensation committee of our board of directors. Options and restricted shares granted under our share-based incentive compensation plans typically vest over three to six years and are generally contingent on continued employment. Some stock options and restricted share awards vest upon the earlier of the achievement of a service condition or a performance condition. Our share-based incentive compensation plans provide for accelerated vesting if there is a change in control, as defined in the applicable plan. The employment agreements and award agreements with executive officers and other employees provide for accelerated vesting on other events, including death, disability, termination without good cause and termination by the employee with good reason. We issue new shares of our common stock whenever stock options are exercised or share awards are granted. Shares of common stock under the Omnibus Plan will also be issued on account of deferred stock units and deferred restricted stock units upon an event of separation service or an elected payment date pursuant to Section 409A of the Internal Revenue Code of 1986, as amended, and the plan.

Periodically, we issue restricted and unrestricted shares to employees upon employment or in connection with performance evaluations. The fair market value on the date of issuance of unrestricted shares is immediately charged to compensation expense. The fair market value on the date of issue of restricted shares is charged to compensation expense ratably over the remaining service period as the restrictions lapse.

Employee Stock Purchase Plan

The FTI Consulting, Inc. 2007 Employee Stock Purchase Plan ("2007 ESPP") allowed eligible employees to subscribe to purchase shares of common stock through payroll deductions. Our U.S. sub-plan allowed deductions of up to 15% of eligible compensation, subject to limitations. Under the U.S. sub-plan, the purchase price was the lower of 85% of the fair market value of our common stock on the first trading day or the last trading day of each semi-annual offering period. Under the U.S. sub-plan, the aggregate number of shares purchased by an employee could not exceed $25,000 of fair market value annually, subject to limitations imposed by Section 423 of the Internal Revenue Code. Under the 2007 ESPP, employees purchased 302,093 shares of common stock at a weighted average price per share of $44.16 during the year ended December 31, 2008. The 2007 ESPP was terminated effective January 1, 2009 pursuant to action taken by our Board of Directors on December 18, 2008.

Share-Based Compensation Expense

The table below reflects the total share-based compensation expense recognized in our income statements for the years ended December 31, 2010, 2009 and 2008.


	2010				2009				2008
Income Statement Classification	Options		Restricted Shares^(a)		Options		Restricted Shares^(a)		Options and Stock Purchase Plan Rights		Restricted Shares^(a)
Direct cost of revenues	$	6,238	$	8,938	$	6,759	$	5,842	$	8,577	$	3,599
Selling, general and administrative expense		1,821		8,068		5,072		7,958		7,702		6,503
Special charges		1,073		1,401		—		—		—		—

Share-based compensation expense before income taxes		9,132		18,407		11,831		13,800		16,279		10,102
Income tax benefit		3,215		6,386		4,821		5,006		4,737		3,483

Share-based compensation, net of income taxes	$	5,917	$	12,021	$	7,010	$	8,794	$	11,542	$	6,619

^(a)	Includes restricted share awards and deferred restricted share units.

Stock Options

We use the Black-Scholes option-pricing model to value our option and employee stock purchase plan grants using the assumptions in the following table.

Year Ended December 31,

2010

2009

2008

Assumptions

Risk-free interest rate–option plan grants

1.55% – 2.96%

.66% – 2.81%

1.86% – 4.13%

Risk-free interest rate–purchase plan grants

N/A

3.11% – 4.60%

Dividend yield

Expected term of option grants

5 – 6 years

3 – 6 years

Expected term of stock purchase plan grants

N/A

0.5 year

Stock price volatility–option plan grants

38.27% – 42.06%

38.43% – 44.75%

32.36% – 43.46%

Stock price volatility–purchase plan grants

N/A

35.48% – 41.24%

The following table summarizes the option activity under our share-based incentive compensation plans as of and for the year ended December 31, 2010. The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value (the difference between the closing price of our common stock on the last trading day of 2010 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2010. This amount changes based on fluctuations in the fair market value per share of our common stock.


	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value

Options outstanding, January 1, 2010		4,777		$	31.94
Options granted during the period:
Exercise Price = fair market value		600		$	40.48

Options exercised		(408	)	$	25.25
Options forfeited		(20	)	$	65.60

Options outstanding, December 31, 2010		4,949		$	33.52		5.8 years	$	38,303

Options exercisable, December 31, 2010		2,893		$	29.96		4.8 years	$	29,848

Cash received from option exercises under all share-based payment arrangements for the years ended December 31, 2010, 2009 and 2008 was $10.3 million, $13.8 million and $12.2 million, respectively. The actual tax benefit realized from stock options exercised totaled $2.0 million, $2.8 million and $7.7 million, respectively, for the years ended December 31, 2010, 2009 and 2008.

The intrinsic value of options exercised is the amount by which the market value of our common stock on the exercise date exceeds the exercise price. The total intrinsic value of options exercised was:

•

$6.0 million during the year ended December 31, 2010;

•

$14.4 million during the year ended December 31, 2009; and

•

$22.7 million during the year ended December 31, 2008.

The table below reflects the weighted-average grant date fair value per share of stock options granted, shares purchased under our employee stock purchase plan and restricted shares and share units granted during the years ended December 31, 2010, 2009 and 2008:


	Year Ended December 31,
	2010		2009		2008
Weigted average fair value of grants
Stock options:
Grant price = fair market value	$	15.93	$	19.49	$	24.87
Grant price > fair market value	$	—	$	—	$	30.52
Employee stock purchase plan shares		N/A		N/A	$	17.12
Restricted shares	$	38.84	$	46.92	$	67.37

Following is a summary of the status of stock options outstanding and exercisable at December 31, 2010:


	Options Outstanding						Options Exercisable
Exercise Price Range	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Shares		Weighted- Average Exercise Price
$12.36-$25.97		1,038	$	21.28		3.5 years		969	$	20.98
$26.16-$27.60		994	$	26.73		5.1 years		884	$	26.70
$27.77-$28.32		990	$	27.97		5.3 years		316	$	27.92
$28.40-$43.27		1,063	$	37.32		7.6 years		360	$	33.19
$44.47-$71.16		864	$	57.68		7.5 years		364	$	60.37

		4,949						2,893

As of December 31, 2010, there was $25.7 million of unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized ratably over a weighted-average period of 3.0 years as the options vest.

Share Awards

A summary of our unvested restricted share award activity during the year ended December 31, 2010 is presented below. The fair value of unvested restricted share-based awards is determined based on the closing market price per share of our common stock on the grant date.


	Shares			Weighted- Average Grant- Date Fair Value
Unvested restricted shares outstanding, January 1, 2010		898		$	43.40
Restricted share awards granted		589		$	38.76
Restricted share awards vested		(327	)	$	43.47
Restricted share awards forfeited		(15	)	$	60.64

Unvested restricted shares outstanding, December 31, 2010		1,145		$	40.74

As of December 31, 2010, there was $36.0 million of unrecognized compensation cost related to unvested restricted awards. That cost is expected to be recognized ratably over a weighted-average period of 2.8 years as the awards vest. The total fair value of restricted share awards that vested during the years ended December 31, 2010, 2009 and 2008 was $12.6 million, $11.6 million and $7.6 million, respectively.

Share Units

Deferred share units and deferred restricted share units (collectively, "Restricted Share Units") under the deferred compensation provisions of the 2009 Omnibus Plan may be granted to certain key employees and to non-employee directors who elect to defer their annual retainer payment and/or annual equity payment, payable on the date of our annual stockholders meeting each year. Each Restricted Share Unit is equivalent to one share of FTI common stock. The Restricted Share Units for key employees are immediately vested upon issuance and are settled in common stock with the participants at either their date of separation of service or the individual's elected payment date pursuant to section 409A of the Internal Revenue Code. The Restricted Share Units issued to non-employee directors on account of the director's annual equity payment vest on the first anniversary of the grant date, provided that the non-employee director is serving in that capacity on the applicable vesting date. Restricted Share Units issued to non-employee directors on account of their annual retainer payments are not subject to any time-based vesting conditions. Restricted Share Units scheduled to vest in a year in which the director is not nominated for election or a director is not elected by stockholders will vest and not be forfeited. Upon a separation of service event or an elected payment date pursuant to Section 409A of the Internal Revenue Code, such non-employee director will receive one share of common stock for each Restricted Share Unit credited to his or her account on the books of FTI.

A summary of our Restricted Share Unit activity during the year ended December 31, 2010 is presented below. The fair value of Restricted Share Units is determined based on the closing market price per share of our common stock on the grant date.


	Shares			Weighted- Average Grant- Date Fair Value		Intrinsic Value
Restricted Share Units outstanding, January 1, 2010		269		$	45.36
Restricted Share Units granted		194		$	39.08
Restricted Share Units released		(31	)	$	57.10

Restricted Share Units outstanding, December 31, 2010		432		$	41.69	$	16,100

The intrinsic value of Restricted Share Units released reflects the market value of our common stock on the date of release. The total intrinsic value of Restricted Share Units released was $1.4 million and $2.2 million for the years ended December 31, 2010 and December 31, 2009 and was not material for the year ended December 31, 2008.

As of December 31, 2010, there was $0.4 million of unrecognized compensation cost related to unvested Restricted Share Units. That cost is expected to be recognized ratably over a weighted-average period of 0.4 years as the units vest. The total fair value of Restricted Share Units that vested during the years ended December 31, 2010, 2009 and 2008 was $7.0 million, $5.9 million and $4.3 million, respectively.

Research and Development Costs	12 Months Ended
Research and Development Costs	Dec. 31, 2010
Research and Development Costs
Research and Development Costs	7. Research and Development Costs Research and development costs related to software development charged to expense totaled $25.3 million, $21.4 million and $18.1 million for the years ended December 31, 2010, 2009 and 2008, respectively. Research and development expense included a charge of $2.8 million in the third quarter of 2010 related to the Company's decision to expense certain previously capitalized development efforts and prepaid software licensing costs for an offering that will be replaced with alternative technologies. Excluding this charge, research and development expense was $22.5 million for the year ended December 31, 2010. Research and development costs are included in "Selling, general and administrative expense" on the Condensed Consolidated Statements of Income.

- Definition

Description, amount and terms involving research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

+ References+ Details

Acquisitions

12 Months Ended

Dec. 31, 2010

Acquisitions

Acquisitions

8. Acquisitions

In certain business combinations consummated prior to January 1, 2009, a portion of our purchase price is in the form of contingent consideration. The contingent consideration represents the difference between the seller's and our perceived values of the business based upon our respective performance estimates at the time of acquisition. The use of contingent consideration allows us to shift some of the valuation risk, inherent at the time of acquisition, to the seller based upon the outcome of future financial targets that the seller contemplates in its valuation. Contingent consideration is payable annually as agreed upon performance targets are met and is generally subject to a maximum amount within a specified time period. Contingent consideration related to acquisitions consummated prior to January 1, 2009 is recorded as additional purchase price with the adjustment recorded as an increase to goodwill if the contingency is satisfied. Additional consideration related to businesses acquired prior to January 1, 2009 that was recorded as an adjustment to goodwill was $26.6 million, $32.3 million, and $49.4 million for the years ended December 31, 2010, 2009 and 2008, respectively.

On January 1, 2009, we were required to adopt new accounting principles for business combinations. These principles are required to be applied prospectively to business combinations consummated subsequent to December 31, 2008. These new principles change how an acquirer recognizes and measures the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired in a business combination. Key changes include:

•

the recognition of transaction costs related to a business combination in current period earnings rather than as a capitalized component of purchase price;

•

the recognition of the estimated fair value of contingent consideration arrangements at the acquisition date, including liability-classified earnout and stock floor arrangements, and subsequent recognition of changes in fair value in earnings each reporting period until the contingencies are settled;

•

the subsequent adjustment to deferred tax asset valuation allowances and income tax uncertainties after the acquisition date will be recognized in current period earnings; and

•

changes in the accounting for business combinations achieved in stages. When control of a business is achieved in stages, acquisition method accounting is applied on the date that control is obtained. In addition, the acquirer remeasures its previously acquired non-controlling equity investment in the acquiree at fair value as of the acquisition date, and recognizes any gain or loss on that remeasurement in current period earnings.

Certain acquisition related restricted stock agreements entered into prior to January 1, 2009 contained stock price guarantees that may result in cash payments in the future if our share price falls below a specified per share market value on the date that the applicable stock restrictions lapse (the "determination date"). For those acquisitions, the future settlement of any contingency related to our common stock price will be recorded as a reduction to additional paid-in capital. During 2010, we paid $3.4 million in cash to the individuals or entities who received common stock consideration relating to three acquisitions with price protection guarantees. Our remaining common stock price guarantees have stock floor prices that range from $24.50 to $69.62 per share and have determination dates that range from 2011 to 2013.

2010 Acquisitions

During the third quarter of 2010, we acquired FS Asia Advisory Limited (formerly Ferrier Hodgson Hong Kong Group) with operations in Hong Kong and other non-U.S. jurisdictions for our Corporate Finance/Restructuring segment. The initial acquisition price of $86.4 million consisted of approximately $20.2 million in cash paid at closing, $8.6 million in cash held in escrow, $35.0 million in loan notes to selling shareholders, $3.8 million cash payable in the first quarter of 2011, $0.6 million reimbursement of seller expenses and contingent consideration with an estimated fair value of $18.2 million. The cash held in escrow is recorded as "Restricted cash" and the contingent consideration is recorded as "Accounts payable, accrued expenses and other" or "Other liabilities" on the Consolidated Balance Sheets based on the expected timing of the payments. The cash held in escrow is expected to become payable in the third quarter of 2011 upon final determination of the acquired working capital balance. The contingent consideration will become payable annually at December 31 of 2010 through 2015 if the acquired business achieves certain annual and cumulative financial performance measures based on EBITDA, and is subject to a $37.1 million cap. The annual accretion of the estimated $18.2 million fair value of the contingent consideration to the expected cash payments of $29.5 million is included within "Operating expenses" in the Consolidated Statements of Income.

As part of the purchase price allocation, we recorded $6.9 million in identifiable intangible assets and $47.2 million in goodwill. Pro forma results of operations have not been presented because the acquisition was not material in relation to our consolidated financial position or results of operations for the periods presented.

During the second quarter of 2010, we acquired Baker Tilly Hong Kong Business Recovery Ltd with operations in Hong Kong for our Forensic and Litigation Consulting segment. The acquisition price of $2.8 million consisted of $2.3 million in cash paid at closing and contingent consideration with an estimated fair value of $0.5 million payable at December 31, 2010, which is recorded in "Accounts payable, accrued expenses and other" on the Consolidated Balance Sheets. As part of the purchase price allocation, we recorded $0.2 million in identifiable intangible assets and $2.6 million in goodwill. Pro forma results of operations have not been presented because the acquisition was not material in relation to our consolidated financial position or results of operations for the periods presented.

For acquisitions completed during 2010, the aggregate amount of purchase price assigned to intangible assets other than goodwill consisted of customer relationships with a fair value of $5.8 million and a weighted average amortization period of five years and non-competition agreements with a fair value of $1.3 million and a weighted average amortization period of six years.

2009 Acquisition

In 2009, we acquired the remaining 50% equity interest in a German joint venture owned by the Strategic Communications segment resulting in a controlling interest and consolidation of this entity. We completed the valuation of the previously acquired non-controlling equity investment and recorded a $2.3 million gain on remeasuring our existing investment in the joint venture to fair value. The $2.3 million gain is included in "Interest income and other" on the Consolidated Statement of Income for the year ended December 31, 2009.

2008 Acquisitions

During 2008, we completed 16 business combinations for a total acquisition cost of $383.2 million, including contingent consideration. The acquisition costs consisted of cash, transaction costs and liabilities assumed of $329.2 million and 870,725 restricted shares of our common stock valued at $54.0 million. Certain purchase agreements for these business combinations contain provisions that include additional payments, some of which may be payable in shares of our common stock at our discretion, based on achievement of annual financial targets in each of the next one to four years. Any contingent consideration payable in the future will be applied to goodwill.

Concentrations of Risk	12 Months Ended
Concentrations of Risk	Dec. 31, 2010
Concentrations of Risk
Concentrations of Risk	9. Concentrations of Risk We derive the majority of our revenues from providing professional services to our clients in the U.S. For the year ended December 31, 2010, we derived approximately 21% of our revenues from non-U.S. legal entities. We believe that the geographic and industry diversity of our customer base throughout the U.S. and internationally minimizes the risk of incurring material losses due to concentrations of credit risk. We do not have a single customer that represents ten percent or more of our consolidated revenues. We are periodically engaged to provide services in connection with client matters where payment of our fees is deferred until the conclusion of the matter. One of these client matters has resulted in a $19.0 million unsecured trade receivable that has been classified as non-current within "Other assets" on our Consolidated Balance Sheets at December 31, 2010 and 2009, respectively.

Balance Sheet Details

12 Months Ended

Dec. 31, 2010

Balance Sheet Details

Balance Sheet Details

10. Balance Sheet Details


	December 31,
	2010		2009
Prepaid expenses and other current assets
Prepaid expenses	$	21,863	$	22,431
Short-term investments		—		15,000
Other current assets		6,311		7,726

	$	28,174	$	45,157

Accounts payable, accrued expenses and other
Accounts payable	$	11,078	$	8,486
Accrued expenses		26,579		22,264
Accrued contingent consideration		16,407		23,376
Accrued interest payable		14,857		7,565
Accrued taxes payable		11,757		13,328
Other current liabilities		25,186		6,174

	$	105,864	$	81,193

Financial Instruments

12 Months Ended

Dec. 31, 2010

Financial Instruments

Financial Instruments

11. Financial Instruments

Derivative Financial Instruments

We enter into derivative contracts to manage our exposure to interest rate changes by achieving a desired proportion of fixed rate versus variable rate debt. In June 2009, the counterparties to our two interest rate swaps, with an aggregate $60.0 million notional amount, exercised their right to terminate these agreements. Prior to their termination, these interest rate swaps effectively converted $60.0 million of our 7⁵/8% Senior Notes due 2013 ("7⁵/8% Notes") from a fixed rate to a variable rate instrument. (See Note 14 to the Consolidated Financial Statements for information on the swap termination). These interest rate swaps, previously designated as fair value hedges of fixed rate debt, qualified for hedge accounting using the short-cut method under ASC 815-20-25, Derivatives and Hedging (formerly SFAS No. 133), which assumes no hedge ineffectiveness. As a result, changes in the fair value of the interest rate swaps and changes in the fair value of the hedged debt were assumed to be equal and offsetting. At December 31, 2010, we were not a party to any derivative financial instruments.

Fair Value of Financial Instruments

We consider the recorded value of certain of our financial assets and liabilities, which consist primarily of cash equivalents, accounts receivable and accounts payable, to approximate the fair value of the respective assets and liabilities at December 31, 2010 and 2009, based on the short-term nature of the assets and liabilities. We determined the fair value of our long-term debt primarily based on quoted market prices for our 7⁵/8% senior notes due 2013, 7³/4% senior notes due 2016, 6³/4% senior notes due 2020 and Convertible Notes.

We estimated the fair value of the acquisition-related contingent consideration using a probability-weighted discounted cash flow model. This fair value measure was based on significant inputs not observed in the market and thus represented a Level 3 instrument. Level 3 instruments are valued based on unobservable inputs that are supported by little or no market activity and reflect our own assumptions in measuring fair value.

The following table represents the change in the acquisition-related contingent consideration liability during the years ended December 31, 2010 and 2009:


	December 31,
	2010			2009
Beginning balance	$	—		$	—
Acquisition date fair value measurement		18,690			—
Adjustments to fair value recorded in earnings ^(a)		1,190			—
Unrealized gains related to currency translation in other comprehensive income		(16	)		—

Ending balance	$	19,864		$	—

^(a)	Adjustments to fair value recorded in "Selling, general and administrative expense"

There were no financial instruments carried at fair value at December 31, 2009. The following table presents financial assets and liabilities measured at fair value as of December 31, 2010:


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities:
Acquisition-related contingent consideration, including current portion	$	—	$	—	$	19,864	$	19,864

We determined the estimated fair values of financial instruments using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop fair value estimates. As a result, the estimates presented below are not necessarily indicative of the amounts that we could realize or be required to pay in a current market exchange. The use of different market assumptions, as well as estimation methodologies, may have a material effect on the estimated fair value amounts.

The following table presents the carrying amounts and estimated fair values of our other financial instruments at December 31, 2010 and 2009:


	December 31,
	2010				2009
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Liabilities:
Acquisition-related contingent consideration, including current portion ^(a)	$	19,864	$	19,864	$	—	$	—
Long-term debt, including current portion ^(b)		810,841		847,248		572,703		663,973

Total	$	830,705	$	867,112	$	572,703	$	663,973

^(a)	The short-term portion is included in "Accounts payable, accrued expenses and other." The long-term portion is included in "Other liabilities."

^(b)	Carrying amount includes the equity component of Convertible Notes recorded in "Additional paid-in capital" of $18.0 million

- Definition

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

Property and Equipment

12 Months Ended

Dec. 31, 2010

Property and Equipment

Property and Equipment

12. Property and Equipment

Property and equipment consist of the following:


	December 31,
	2010			2009
Leasehold improvements	$	51,822		$	43,974
Construction in progress		1,655			8,442
Furniture and equipment		32,107			27,887
Computer equipment and software		78,811			81,544

		164,395			161,847
Accumulated depreciation and amortization		(91,157	)		(81,169	)

Property and equipment, net	$	73,238		$	80,678

Depreciation expense was $29.6 million in 2010, $27.8 million in 2009 and $25.5 million in 2008.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2010

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

13. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by reportable segment are as follows:


	Corporate Finance/ Restructuring			Forensic and Litigation Consulting			Economic Consulting		Technology			Strategic Communications			Total
Balance December 31, 2008	$	389,934		$	189,129		$	191,044	$	118,541		$	254,813		$	1,143,461
Goodwill acquired during the year		—			—			—		—			3,008			3,008
Contingent consideration^(a)		—			1,366			5,655		—			25,285			32,306
Adjustments to allocation of purchase price		(3,119	)		—			—		(934	)		935			(3,118	)
Foreign currency translation adjustment and other		461			3,734			32		404			15,661			20,292

Balance December 31, 2009	$	387,276		$	194,229		$	196,731	$	118,011		$	299,702		$	1,195,949

Goodwill acquired during the year ^(b)		47,181			2,598			—		—			—			49,779
Contingent consideration^(a)		—			1,094			5,958		—			19,549			26,601
Foreign currency translation adjustment and other		(18	)		(687	)		—		(51	)		(2,126	)		(2,882	)

Balance December 31, 2010	$	434,439		$	197,234		$	202,689	$	117,960		$	317,125		$	1,269,447

^(a)	Contingent consideration related to business combinations consummated prior to January 1, 2009.

^(b)	Includes estimated fair value of contingent consideration recognized at the acquisition date of $18.2 million in the Corporate Finance/Restructuring segment and $0.5 million in the Forensic and Litigation Consulting segment.

Other intangible assets with finite lives are amortized over their estimated useful lives. We recorded amortization expense of $23.9 million in 2010, $24.7 million in 2009 and $18.8 million in 2008. Based solely on the amortizable intangible assets recorded as of December 31, 2010, we estimate amortization expense to be $21.0 million in 2011, $20.5 million in 2012, $18.8 million in 2013, $11.5 million in 2014, $10.7 million in 2015 and an aggregate of $46.9 million in years after 2015. Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, changes in useful lives or other relevant factors or changes.


	Useful Life in Years		December 31, 2010				December 31, 2009
	Useful Life in Years		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets
Customer relationships		1 to 15	$	149,278	$	46,146	$	144,048	$	33,016
Non-competition agreements		1 to 10		19,796		11,722		18,268		8,788
Software		5 to 6		37,700		19,536		37,700		13,335
Tradenames		1 to 5		9,610		9,610		9,591		4,184
Contract backlog		1		333		333		317		317

				216,717		87,347		209,924		59,640
Unamortized intangible assets
Tradenames		Indefinite		5,600		—		25,678		—

			$	222,317	$	87,347	$	235,602	$	59,640

During the fourth quarter of 2010, we made a strategic decision to discontinue the use of most of our acquired trade and product names. These names were recorded in connection with acquisitions in prior years, certain of which were not being amortized as the estimated useful life had been considered indefinite. The decision to discontinue using these names was primarily based on the Company's implementation of a global branding strategy as well as other strategic branding decisions. These decisions represented a change in circumstance indicating that the assets' carrying values might not be recoverable and, as a result, we evaluated the assets for impairment. Based on this assessment, we recorded non-cash impairment charges and accelerated amortization of $23.8 million, representing the carrying amount of the affected trade and product names. These charges are included within "Special charges" in the Consolidated Statements of Income. The Company recorded no such charges related to identifiable intangible assets in 2009 or 2008.

- Definition

Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

+ References+ Details

Long-Term Debt and Capital Lease Obligations

12 Months Ended

Dec. 31, 2010

Long-Term Debt and Capital Lease Obligations

Long-Term Debt and Capital Lease Obligations

14. Long-Term Debt and Capital Lease Obligations


	December 31,
	2010		2009
7⁵/8% senior notes due 2013 ^(a)	$	—	$	202,012
7³/4% senior notes due 2016		215,000		215,000
6³/4% senior notes due 2020		400,000		—
3³/4% convertible senior subordinated notes due 2012 ^(b)		141,515		136,540
Notes payable to former shareholders of acquired businesses		36,307		1,132

Total debt		792,822		554,684
Less current portion		7,307		137,672

Long-term debt, net of current portion		785,515		417,012

Total capital lease obligations		300		814
Less current portion		252		429

Capital lease obligations, net of current portion		48		385

Long-term debt and capital lease obligations, net of current portion	$	785,563	$	417,397

^(a)	Balance at December 31, 2009 includes $200.0 million principal amount of notes plus unamortized proceeds from interest rate swap terminations of $2.0 million.

^(b)	Balance includes $149.9 million principal amount of notes net of discount of $8.4 million at December 31, 2010 and $13.4 million at December 31, 2009.

Issuance of 6³/4% Senior Notes Due 2020

On September 27, 2010, we issued $400.0 million in aggregate principal amount of 6³/4% senior notes due 2020 ("6³/4% senior notes") in a private offering (the "Offering") that was exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The 6³/4% senior notes may not be offered or sold in the U.S. or foreign jurisdictions without registration or an applicable exemption from registration requirements. The 6³/4% senior notes were sold to "qualified institutional buyers" as defined in Rule 144A under the Securities Act and non-U.S. persons outside the United States under Regulation S under the Securities Act.

The net proceeds from the issuance of the 6³/4% senior notes were $390.4 million after deducting debt issuance costs. A portion of the proceeds were used to fund the purchase of our 7⁵/8% senior notes due 2013 ("7⁵/8% senior notes") in a concurrent tender offer as described below, and the balance may be used for general corporate purposes, which could include working capital, share repurchases, capital expenditures, acquisitions, refinancing of other debt or other capital transactions. The 6³/4% senior notes are guaranteed, with certain exceptions, by our existing and future domestic subsidiaries. The 6³/4% senior notes and the guarantees will be our and the guarantors' general unsecured senior obligations and will be subordinated to all of our and the guarantors' existing and future secured debt to the extent of the assets securing that secured debt. In addition, the 6³/4% senior notes will be effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the notes, to the extent of the assets of those subsidiaries. Interest on the 6³/4% senior notes accrues at the rate of 6³/4% per year, payable semi-annually in cash in arrears on April 1 and October 1 of each year, commencing on April 1, 2011. The 6³/4% senior notes will mature on October 1, 2020.

The 6³/4% senior notes are subject to redemption at our option, in whole or in part, at any time after October 1, 2015, upon not less than 30 nor more than 60 days' prior notice at the following redemption prices (expressed as percentages of the principal amount to be redeemed) set forth below, plus accrued and unpaid interest, if any, to the redemption date, if redeemed during the twelve month period beginning on October 1 of the years indicated below, subject to the rights of holders of notes on the relevant record date to receive interest on the relevant interest payment date:


Year	Redemption Price
2015		103.375	%
2016		102.250	%
2017		101.125	%
2018 and thereafter		100.000	%

Debt issue costs of approximately $9.6 million were capitalized and are being amortized over the term of the 6 ³/4% senior notes.

In connection with the Offering, the Company and the guarantors entered into a Registration Rights Agreement, dated as of September 27, 2010 (the "Registration Rights Agreement"). Pursuant to the Registration Rights Agreement, we have agreed to (a) file an exchange offer registration statement within 180 days of the issue date of the 6³/4% senior notes, (b) use our best efforts to have the exchange offer registration statement declared effective within 240 days of the issue date, and (c) complete the exchange offer within 30 business days of effectiveness. We have also agreed to file a shelf registration statement to cover resales of the 6³/4% senior notes under certain circumstances. If we fail to satisfy our obligations under the Registration Rights Agreement, we will be required to pay additional interest to holders of the 6³/4% senior notes under certain circumstances.

7⁵/8% senior notes due 2013. The 7⁵/8% senior notes were registered with the SEC. Cash interest was payable semi-annually beginning December 15, 2005 at a rate of 7.625% per year. We had the right to redeem all or part of these notes at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest on the notes redeemed to the applicable redemption date, if redeemed during the twelve month period beginning on June 15, of the years indicated below, subject to the rights of holders of notes on the relevant record date to receive interest on the relevant interest payment date.


Year	Percentage
2009		103.813	%
2010		101.906	%
2011 and thereafter		100.000	%

These notes were senior unsecured indebtedness of ours and ranked equal in right of payment with all of our other unsubordinated, unsecured indebtedness.

On September 14, 2010, we commenced a cash tender offer for any and all of our outstanding 7⁵/8% senior notes for a price equal to $1,021.56 per $1,000 principal amount of the notes, which included $1,001.56 as the tender offer consideration and $20.00 as a consent payment (the "Tender Offer"). In connection with the Tender Offer, we solicited consents to certain proposed amendments to the indenture dated as of August 2, 2005, under which the 7⁵/8% senior notes were issued, that would, among other modifications, eliminate substantially all of the restrictive covenants and certain events of default in the indenture.

At the expiration of the consent payment deadline on September 27, 2010, an aggregate principal amount of $185.8 million 7⁵/8% senior notes had been tendered. We used approximately $189.8 million of the net proceeds from the Offering to fund the purchase of the 7⁵/8% senior notes and the related consent payments. We also received consents from holders of the required majority of the principal amount of the 7⁵/8% senior notes to, among other modifications, eliminate substantially all of the restrictive covenants and certain events of default in the indenture governing the 7⁵/8% senior notes.

On November 1, 2010, FTI redeemed all of the 2013 Notes that remained outstanding as of the tender offer expiration date of October 12, 2010 in the aggregate principal amount of approximately $14.2 million. The redemption price for such 7⁵/8% senior notes was 101.906% of the principal amount plus accrued and unpaid interest. Interest on the redeemed 7⁵/8% senior notes ceased to accrue on and after November 1, 2010, and the only remaining right of the holders is to receive payment of the redemption price and interest accrued until, but not including, November 1, 2010 upon surrender to the paying agent of such 7⁵/8% senior notes.

We recognized a loss on our early extinguishment of debt of approximately $5.2 million, consisting primarily of the consent payment and premium and write-off of unamortized deferred costs.

In August 2005, we entered into two interest rate swap contracts with an aggregate notional amount of $60.0 million to receive interest at 7⁵/8% and pay a variable rate of interest based upon LIBOR. We designated these swaps as fair value hedges of the changes in fair value of $60.0 million of our 7⁵/8% Notes. Under the terms of the interest rate swap agreements, we received interest on the $60.0 million notional amount at a fixed rate of 7.625% and paid a variable rate of interest, which was between 5.60% and 7.85% for the year ended December 31, 2008, based on the LIBOR as the benchmark interest rate. The maturity, payment dates and other critical terms of these swaps exactly matched those of the hedged senior notes. In accordance with ASC 815-20-25, Derivatives and Hedging (formerly SFAS No. 133), the swaps were accounted for as effective hedges. Accordingly, the changes in the fair values of both the swaps and the debt were recorded as equal and offsetting gains and losses in interest expense. No hedge ineffectiveness was recognized as the critical provisions of the interest rate swap agreements match the applicable provisions of the debt. For the year ended December 31, 2008, the impact of effectively converting the interest rate of $60.0 million of our senior notes from fixed rate to variable rate decreased interest expense by $0.9 million. The counterparties to the swaps exercised their right to terminate the swaps as of June 15, 2009 which resulted in a $2.3 million gain on termination. This gain has been recorded in "Long-term debt and capital lease obligations" on the Consolidated Balance Sheets and was being amortized as a reduction to interest expense over the remaining term of the 7⁵/8% Notes, resulting in an effective interest rate of 6.5% per annum on $60.0 million of 7⁵/8% Notes.

7³/4% senior notes due 2016. The 7³/4% senior notes due 2016 (the "7³/4% senior notes") are registered with SEC. Cash interest is payable semiannually beginning April 1, 2007 at a rate of 7.75% per year. We may choose to redeem some or all of these notes starting October 1, 2011 at an initial redemption price of 103.875% of the aggregate principal amount of these notes plus accrued and unpaid interest. These notes are senior unsecured indebtedness of ours and rank equal in right of payment with all of our other unsubordinated, unsecured indebtedness. We have agreed to specific registration rights with respect to these notes. If we do not maintain the registration of the notes effective through maturity, subject to limitations, then the annual interest rate on these notes will increase by 0.25% every 90 days, up to a maximum of 1.0% until the default ceases to exist. If we have a registration default and subsequently correct it, the annual interest rate on the notes will revert to 7.75%.

3³/4% convertible senior subordinated notes due 2012. The 3³/4% convertible senior subordinated notes due 2012 (the "Convertible Notes") are registered with the SEC. Cash interest is payable semiannually beginning January 15, 2006 at a rate of 3.75% per year. The Convertible Notes are non-callable. Upon conversion, the principal portion of the Convertible Notes will be paid in cash and any excess of the "conversion value" over the principal portion will be paid either in cash, shares of our common stock or a combination of shares of our common stock and cash at our option. The "conversion value" of each note is the average closing price of our shares over the "conversion reference period," as defined in the indenture, times the initial conversion rate of 31.998, subject to adjustment upon specified events. Assuming conversion of the full $149.9 million principal amount of the notes, for every $1.00 the market price of our common stock exceeds $31.25 per share, we will be required, at our option, either to pay an additional $4.8 million or to issue shares of our common stock with a then market price equivalent to $4.8 million to settle the conversion feature. The Convertible Notes may be converted at the option of the holder unless earlier repurchased: (1) on or after June 15, 2012; (2) if a specified fundamental change event occurs; (3) if the closing sale price of our common stock for a specified time period exceeds 120% of the conversion price for a specified time period; or (4) if the trading price for a convertible note is less than 95% of the closing sale price of our common stock into which it can be converted for a specified time period.

Our Convertible Notes are convertible at the option of the holder during any conversion period if the per share closing price of our common stock exceeds the conversion threshold price of $37.50 for at least 20 trading days in the 30 consecutive trading day period ending on the first day of such conversion period. A conversion period is the period from and including the eleventh trading day in a fiscal quarter up to but not including the eleventh trading day of the following fiscal quarter.

When the Convertible Notes are convertible at the option of the holder, they are classified as current on our Consolidated Balance Sheet. When the Convertible Notes are not convertible at the option of the holder, and the scheduled maturity is not within one year after the balance sheet date, they are classified as long-term. As of December 31, 2010, the notes are classified as long-term given that the per share price of our common stock did not close above the conversion threshold for 20 days in the 30 consecutive trading day period ending October 15, 2010. As of January 14, 2011, the notes did not meet the conversion threshold and therefore, the notes will remain non-convertible and classified as long-term through at least April 14, 2011, the next measurement date.

Upon surrendering any note for conversion, in accordance with the indenture, the holder of such note shall receive cash in the amount of the lesser of (i) the $1,000 principal amount of such Note or (ii) the "conversion value" of the note as defined in the indenture. The conversion feature results in a premium over the face amount of the notes equal to the difference between our stock price as determined by the calculation set forth in the indenture and the conversion price per share of $31.25 times the conversion ratio of 31.998 shares of common stock for each $1,000 principal amount of the notes. We retain our option to satisfy any conversion value in excess of each $1,000 principal amount of the notes with shares of common stock, cash or a combination of both cash and shares. The premium will be calculated using the stock price calculation defined in the indenture. Based on our closing stock price at December 31, 2010, the aggregate Convertible Notes conversion value exceeds their aggregate principal amount by $28.9 million.

As of January 1, 2009, we adopted the provisions of ASC 470-20, Debt with Conversion and Other Options ("ASC 470-20") (formerly FSP APB 14-1) with retrospective application to prior periods. ASC 470-20 addresses the accounting and disclosure requirements for convertible debt that may be settled in cash upon conversion. It requires an issuer to separately account for the liability and equity components of convertible debt in a manner that reflects the issuer's nonconvertible borrowing rate, resulting in higher interest expense over the life of the instrument due to the amortization of the discount. Our Convertible Notes are subject to ASC 470-20. We applied this guidance retrospectively to all periods presented.

The following table summarizes the liability and equity components of our Convertible Notes:


	December 31, 2010			December 31, 2009
	December 31, 2010			December 31, 2009
Liability component:
Principal	$	149,940		$	149,940
Unamortized discount		(8,425	)		(13,400	)

Balance of 3 ³/4% convertible notes due 2012	$	141,515		$	136,540

Equity component (recorded in additional paid-in capital)	$	18,019		$	18,019

The discount on the liability component will be amortized over the remaining term of the Convertible Notes through July 15, 2012 using the effective interest method. The effective interest rate on the Convertible Notes is 7⁵/8%. The components of interest cost on the Convertible Notes for the years ended December 31, 2010 and 2009 were as follows:


	Year Ended December 31,
	2010		2009
Contractual interest	$	5,623	$	5,624
Amortization of debt discount		4,975		4,582
Amortization of deferred note issue costs		641		641

Total interest expense	$	11,239	$	10,847

Secured bank credit facility. On September 27, 2010, we refinanced our revolving senior bank credit facility, which was pursuant to the Amended and Restated Credit Agreement dated as of September 29, 2006, as amended from time to time, and maturing on September 30, 2011. Our new revolving senior bank credit facility (bank credit facility) consists of a $250.0 million senior secured revolving line of credit maturing on September 25, 2015. The former credit facility provided for a five-year $175.0 million senior secured revolving line of credit. We did not incur any early termination or prepayment penalties in connection with the replacement of the former credit facility. Borrowings under the bank credit facility bear interest at an annual rate equal to the Eurodollar rate plus an applicable margin or an alternative base rate plus an applicable margin, subject to minimum Eurodollar rate floors and alternative base rate floors. Under the bank credit facility, the lenders have a security interest in substantially all of the assets of FTI Consulting, Inc. and substantially all of our domestic subsidiaries. Subject to certain conditions, at any time prior to maturity, we will be able to invite existing and new lenders to increase the size of the facility up to a maximum of $325.0 million.

Our bank credit facility and the indentures governing our senior notes contain covenants which limit our ability to incur additional indebtedness, create liens, pay dividends on our capital stock, make distributions or repurchases of our capital stock or make specified other restricted payments, consolidate, merge or sell all or substantially all of our assets, guarantee obligations of other entities, enter into hedging agreements, enter into transactions with affiliates or related persons and engage in any business other than consulting related businesses. In addition, the Revolving Credit Facility includes financial covenants that require us to maintain (i) a maximum leverage ratio, (ii) a maximum senior secured leverage ratio, (iii) a minimum fixed charge coverage ratio, and (iv) commencing December 31, 2011, minimum liquidity of at least 115% of the aggregate outstanding principal amount of the Convertible Notes (excluding amounts subject to net share settlement). At December 31, 2010, we were in compliance with all covenants as stipulated in the bank credit facility and the indentures governing our senior notes. No borrowings were outstanding under the bank credit facility at December 31, 2010 or December 31, 2009. However, $3.6 million and $3.8 million of the borrowing limit was used (and, therefore, unavailable) as of December 31, 2010 and 2009, respectively, for letters of credit.

Notes payable to shareholders of acquired businesses. In connection with the acquisition of FD International (Holdings) Limited in October 2006 ("FD"), we issued notes to former holders of FD capital shares who elected to receive notes in lieu of cash for acquisition and earn-out consideration. These notes are unsecured and bear interest based on the London Interbank Offered Rate, or LIBOR, that compounds quarterly. These notes are redeemable at any time prior to their maturity and accordingly they have been classified as a current obligation. The outstanding balance of these notes was $1.3 million at December 31, 2010 and $1.1 million at December 31, 2009.

In connection with our third quarter 2010 acquisition of FS Asia Advisory Limited (formerly Ferrier Hodgson Hong Kong Group), we issued $35.0 million of notes to selling shareholders as part of the total consideration paid. These notes are unsecured and bear interest at 8% per annum. Payments of unpaid principal and interest are to be made annually on August 19, 2011 through August 19, 2015. The principal payments have been classified as either current or non-current based on the timing of the payments. No amounts have been repaid as of December 31, 2010.

Guarantees. Currently, we do not have any debt guarantees related to entities outside of the consolidated group. As of December 31, 2010, substantially all of our domestic subsidiaries are guarantors of borrowings under our bank credit facility, our senior notes and our convertible notes in the amount of $764.9 million.

Future Maturities of Long-Term Debt

For years subsequent to December 31, 2010, scheduled annual maturities of long-term debt outstanding as of December 31, 2010 are as follows. Long-term debt that is puttable by the holder has been classified as maturing in 2011 on the following table and includes $1.3 million of notes payable to former owners of an acquired business.


	Long-term Debt^(a)		Capital Lease Obligations		Total
2011	$	7,307	$	264	$	7,571
2012		155,940		49		155,989
2013		6,000		—		6,000
2014		6,000		—		6,000
2015		11,000		—		11,000
Thereafter		615,000		—		615,000

		801,247		313		801,560

Less imputed interest		—		13		13

	$	801,247	$	300	$	801,547

^(a)	Principal balance on Convertible Notes does not include the discount or conversion premium.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies

Commitments and Contingencies

15. Commitments and Contingencies

Operating Lease Commitments

Rental expense, net of rental income was $49.6 million during 2010, $49.5 million during 2009 and $44.8 million during 2008. For years subsequent to December 31, 2010, future minimum payments for all operating lease obligations that have initial non-cancelable lease terms exceeding one year, net of rental income from subleases of $0.7 million in 2011, $0.3 million in 2012, and $0.2 million in 2013 are as follows:


	Operating Leases
2011	$	40,761
2012		35,688
2013		31,356
2014		28,458
2015		24,396
Thereafter		117,692

	$	278,351

Contingencies

We are subject to legal actions arising in the ordinary course of business. In management's opinion, we believe we have adequate legal defenses and/or insurance coverage with respect to the eventuality of such actions. We do not believe any settlement or judgment relating to any pending legal action would materially affect our financial position or results of operations.

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes

Income Taxes

16. Income Taxes

Significant components of deferred tax assets and liabilities are as follows:


	December 31, 2010					December 31, 2009
	Asset		Liability			Asset		Liability
Current deferred tax assets (liabilities)
Revenue recognition	$	—	$	(28,267	)	$	—	$	—
Allowance for doubtful accounts		11,979		—			8,684		—
Accrued vacation and bonus		9,955		—			9,586		—
Restricted stock		1,417		—			2,412		—
Other		864		—			—		(206	)

Total current deferred tax assets (liabilities)		24,215		(28,267	)		20,682		(206	)

Long-term deferred assets (liabilities)
Property, equipment and capitalized software		—		(2,115	)		—		(1,152	)
Deferred rent		17,210		—			14,386		—
Share-based compensation		16,587		—			12,733		—
Notes receivable from employees		21,451		—			14,205		—
Foreign tax credits		6,478		—			1,838		—
Deferred compensation		681		—			—		(965	)
Goodwill and other intangible asset amortization		—		(142,182	)		—		(131,022	)
Revenue recognition		—		(7,673	)
Convertible debt		105		—			—		(5,209	)
Currency translation adjustment		—		(2,676	)		—		(1,201	)
All other		—		—			683		—

Total long-term deferred tax assets (liabilities)	$	62,512	$	(154,646	)	$	43,845	$	(139,549	)

Total deferred tax assets (liabilities)			$	(96,186	)			$	(75,228	)

As of December 31, 2010, we have not recorded a $17.5 million deferred tax liability related to the tax basis difference in the investment in our foreign subsidiaries as the investment is considered permanent in duration.

We also have $6.5 million of foreign tax credit carryforwards that begin to expire in 2020. Based upon current levels of foreign source income and foreign income taxes, we expect to use the $6.5 million of credits prior to their expiration.

We have not established a valuation allowance for any of our deferred tax assets as we expect that future taxable income as well as the reversal of temporary differences will enable us to fully utilize our deferred tax assets.

The components of "Income before income tax provision" from continuing operations are as follows:


	Year Ended December 31,
	2010		2009		2008
Domestic	$	91,420	$	194,155	$	143,505
Foreign		26,020		32,870		54,916

	$	117,440	$	227,025	$	198,421

The components of the income tax provision from continuing operations are as follows:


	Year Ended December 31,
	2010			2009			2008
Current
Federal	$	17,310		$	42,911		$	58,075
State		906			14,379			13,313
Foreign		7,468			9,743			11,838

		25,684			67,033			83,226

Deferred
Federal	$	18,582		$	15,865		$	(5,968	)
State		3,614			2,353			257
Foreign		(2,330	)		(1,252	)		—

		19,866			16,966			(5,711	)

Income tax provision	$	45,550		$	83,999		$	77,515

Our income tax provision from continuing operations resulted in effective tax rates that varied from the statutory federal income tax rate as follows:


	Year Ended December 31,
	2010			2009			2008
Federal income tax provision at statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		3.8			4.8			4.3
Goodwill amortization on foreign acquisitions deductible for U.S. tax purposes		(1.9	)		(2.2	)		(2.4	)
Expenses not deductible for tax purposes		2.7			0.8			2.2
All other		(0.8	)		(1.4	)		—

		38.8	%		37.0	%		39.1	%

At December 31, 2010, we had a net income tax receivable of $1.5 million as compared to a net income tax payable of $6.3 million at December 31, 2009.

We file numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many city, state and foreign jurisdictions. We are no longer subject to U.S. federal income tax examinations for years prior to 2006 and are no longer subject to state and local or foreign tax examinations by tax authorities for years prior to 2004. In addition, open tax years related to state and foreign jurisdictions remain subject to examination but are not considered material to our financial position, results of operations or cash flows.

Our liability for uncertain tax positions was $1.0 million and $0.4 million at December 31, 2010 and 2009, respectively. Interest and penalties related to uncertain tax positions are classified as operating expenses and are excluded from the income tax provision. As of December 31, 2010, our accrual for the payment of tax-related interest and penalties was not material. We are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits would significantly decrease or increase within the next twelve months.

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2010
Stockholders' Equity
Stockholders' Equity	17. Stockholders' Equity Common Stock Holders of our common stock are entitled to one vote per share on all matters submitted for action by the stockholders and share equally, share-for-share, if dividends are declared on the common stock. In the event of any liquidation, dissolution or winding up of our company or upon the distribution of our assets, all assets and funds remaining after payment in full of our debts and liabilities, and after the payment of all liquidation preferences, if any, applicable to any outstanding preferred stock, would be divided and distributed among the holders of our common stock ratably. There are no redemption or sinking fund requirements applicable to shares of our common stock. Common Stock Repurchase Program On November 4, 2009, our Board of Directors authorized a two-year stock repurchase program of up to $500.0 million and terminated the $50.0 million stock repurchase program authorized in February 2009. *Accelerated share buyback agreement.* On November 9, 2009, we entered into an accelerated share buyback agreement ("ASB Agreement") with an investment bank. On the same day, FTI and the investment bank executed a supplemental confirmation to effect a $250.0 million accelerated stock buyback transaction under the ASB Agreement. On November 12, 2009, FTI paid $250.0 million to the investment bank and received a substantial majority of the shares to be delivered by the investment bank in the accelerated buyback transaction. On December 10, 2009, FTI received additional shares bringing the total shares delivered in 2009 to 4,874,807 shares of FTI common stock. This transaction was accounted for as two separate transactions, a share repurchase and a forward contract indexed to our own stock. The repurchase of shares was accounted for as a share retirement resulting in a reduction of common stock issued and outstanding of 4,874,807 shares and a corresponding reduction in common stock and additional paid-in capital of $250.0 million. Final settlement of the repurchase transaction was scheduled for no later than July 9, 2010 and could occur earlier at the option of the investment bank or later under certain circumstances. On January 22, 2010, FTI received notice that the investment bank exercised its rights to terminate the accelerated buyback transaction. As a result, FTI received an additional 580,784 shares of common stock in January 2010, bringing the total shares repurchased pursuant to the accelerated buyback transaction to 5,455,591 shares at a purchase price of $45.82 per share. No cash was required to complete the final delivery of shares. The additional shares received were accounted for as a share retirement in the first quarter of 2010. For the year ended December 31, 2009, the forward contract was anti-dilutive as the forward contract represented a contingent number of shares that would be delivered to FTI by the investment bank. As the shares were anti-dilutive, their impact was not considered in the computation of earnings per share for the year ended December 31, 2009 in accordance with the guidance of ASC 260, Earnings Per Share. The shares were removed from the count used for the calculation of earnings per share after delivery to FTI. *Open market purchases.* After the accelerated buyback transaction settled in January 2010, a balance of $250.0 million remained available under the stock repurchase program to fund stock repurchases by the Company. During 2010, we purchased and retired 1,178,089 shares of our common stock for a total cost of approximately $40.6 million. We made no open market purchases in 2009.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2010
Employee Benefit Plans
Employee Benefit Plans	18. Employee Benefit Plans We maintain a qualified defined contribution 401(k) plan, which covers substantially all of our U.S. employees. Under the plan, participants are entitled to make pre-tax and/or Roth post-tax contributions up to the annual maximums established by the Internal Revenue Service. We match a certain percentage of participant contributions pursuant to the terms of the plan, which contributions are limited to a percent of the participant's eligible compensation. FTI matches each participant's eligible 401(k) plan contributions up to the annual limit specified by the Internal Revenue Service. We made contributions related to the plan of $8.0 million during 2010, $7.8 million during 2009 and $7.1 million during 2008. We also maintain several defined contribution pension schemes for our employees in the United Kingdom and other foreign countries. The assets of the schemes are held separately from those of FTI in independently administered funds. We contributed $4.6 million to these plans during 2010, $4.9 million during 2009, and $4.7 million during 2008.

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Segment Reporting

12 Months Ended

Dec. 31, 2010

Segment Reporting

Segment Reporting

19. Segment Reporting

We manage our business in five reportable operating segments: Corporate Finance/Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications.

Our Corporate Finance/Restructuring segment focuses on strategic, operational, financial and capital needs of businesses around the world and provides consulting and advisory services on a wide range of areas, such as restructuring (including bankruptcy), financings, claims management, mergers and acquisitions, post-acquisition integration, valuations, tax issues and performance improvement.

Our Forensic and Litigation Consulting segment provides law firms, companies, government clients and other interested parties with dispute advisory, investigations, forensic accounting, data analytics, business intelligence assessments and risk mitigation services.

Our Economic Consulting segment provides law firms, companies, government entities and other interested parties with analysis of complex economic issues for use in legal and regulatory proceedings, strategic decision making and public policy debates in the U.S. and around the world.

Our Technology segment provides electronic discovery ("e-discovery") and information management software and service to its clients. It provides products, services and consulting to companies, law firms, courts and government agencies worldwide. Its comprehensive suite of software and services help clients locate, review and produce electronically stored information, including e-mail, computer files, voicemail, instant messaging, and financial and transactional data.

Our Strategic Communications segment provides advice and consulting services relating to financial communications, brand communications, public affairs and reputation management and business consulting.

Effective January 1, 2010, we implemented a change in our organizational structure that resulted in the movement of our Financial and Enterprise Data Analytics subpractice from our Technology segment to our Forensic and Litigation Consulting segment. This change has been reflected in our segment reporting for all periods presented.

We evaluate the performance of our operating segments based on adjusted segment EBITDA. We define adjusted segment EBITDA as a segment's share of consolidated operating income before depreciation, amortization of intangible assets and special charges plus non-operating litigation settlements. Although adjusted segment EBITDA is not a measure of financial condition or performance determined in accordance with GAAP, we use adjusted segment EBITDA to evaluate and compare the operating performance of our segments.

The table below presents revenues and adjusted segment EBITDA for our reportable segments for the three years ended December 31, 2010:


	Year Ended December 31,
	2010		2009		2008
Revenues
Corporate Finance/Restructuring	$	451,518	$	514,260	$	374,504
Forensic and Litigation Consulting		324,478		300,710		282,948
Economic Consulting		255,660		234,723		219,883
Technology		176,607		170,174		191,329
Strategic Communications		193,198		180,079		224,481

Total revenues	$	1,401,461	$	1,399,946	$	1,293,145

Adjusted segment EBITDA
Corporate Finance/Restructuring	$	116,317	$	175,551	$	114,178
Forensic and Litigation Consulting		78,244		77,906		67,319
Economic Consulting		49,783		47,845		59,020
Technology		64,896		57,390		63,680
Strategic Communications		29,021		24,941		51,853

Total adjusted segment EBITDA	$	338,261	$	383,633	$	356,050

The table below reconciles adjusted segment EBITDA to income before income tax provision. Unallocated corporate expenses include primarily indirect costs related to centrally managed administrative functions which have not been allocated to the segments. These administrative costs include costs related to executive management, legal, corporate office support costs, information technology, accounting, marketing, human resources, and company-wide business development functions.


	Year Ended December 31,
	2010			2009			2008
Total adjusted segment EBITDA	$	338,261		$	383,633		$	356,050
Segment depreciation expense		(26,102	)		(22,737	)		(20,342	)
Amortization of intangible assets		(23,910	)		(24,701	)		(18,824	)
Special charges		(47,116	)		—			—
Unallocated corporate expenses		(72,692	)		(72,655	)		(81,973	)
Interest income and other ^(a)		4,423			8,408			8,615
Interest expense		(50,263	)		(44,923	)		(45,105	)
Loss on early extinguishment of debt		(5,161	)		—			—

Income before income tax provision	$	117,440		$	227,025		$	198,421

^(a)	Includes corporate litigation settlement gains (losses) of $250 and ($225) for the years ended December 31, 2009 and 2008, respectively.

The table below presents assets by segment. Segment assets primarily include accounts and notes receivable, fixed assets purchased specifically for the segment, goodwill and other intangible assets.


	December 31,
	2010		2009
Corporate Finance/Restructuring	$	633,124	$	547,091
Forensic and Litigation Consulting		339,012		320,947
Economic Consulting		360,705		356,432
Technology		214,357		237,909
Strategic Communications		459,917		436,571

Total segment assets		2,007,115		1,898,950
Unallocated corporate assets		403,161		178,388

Total assets	$	2,410,276	$	2,077,338

The table below details information on our revenues for the three years ended December 31, 2010. Revenues have been attributed to location based on the location of the legal entity generating the revenue.


	Year Ended December 31,
	2010		2009		2008
United States	$	1,104,836	$	1,154,112	$	1,056,616
All foreign countries		296,625		245,834		236,529

Total revenue	$	1,401,461	$	1,399,946	$	1,293,145

We do not have a single customer that represents ten percent or more of our consolidated revenues.

The table below details information on our long-lived assets and net assets at December 31, 2010 and 2009 attributed to geographic location based on the location of the legal entity holding the assets.


	December 31, 2010				December 31, 2009
	United States		All foregin countries		United States		All foregin countries
Property and equipment, net of accumulated depreciation	$	60,985	$	12,253	$	69,028	$	11,650
Net assets	$	666,395	$	500,924	$	831,326	$	272,888

Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information

12 Months Ended

Dec. 31, 2010

Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information

20. 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, senior notes and our Convertible 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 income and statements of cash flows for FTI, all the guarantor subsidiaries, all the non-guarantor subsidiaries and the eliminations necessary to arrive at the consolidated information for FTI 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 December 31, 2010


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	292,738	$	1,430	$	90,402	$	—		$	384,570
Restricted cash		8,633		—		1,885		—		$	10,518
Accounts receivable, net		109,663		140,328		76,086		—			326,077
Intercompany receivables		49,809		497,108		96,251		(643,168	)		—
Other current assets		26,635		15,007		25,908		—			67,550

Total current assets		487,478		653,873		290,532		(643,168	)		788,715
Property and equipment, net		47,091		13,893		12,254		—			73,238
Goodwill		426,866		541,395		301,186		—			1,269,447
Other intangible assets, net		5,906		79,984		49,080		—			134,970
Investments in subsidiaries		1,619,224		512,127		—		(2,131,351	)		—
Other assets		68,983		58,713		20,293		—			147,989

Total assets	$	2,655,548	$	1,859,985	$	673,345	$	(2,774,519	)	$	2,414,359

Liabilities
Intercompany payables	$	488,860	$	70,622	$	83,686	$	(643,168	)	$	—
Other current liabilities		135,652		104,056		49,574		—			289,282

Total current liabilities		624,512		174,678		133,260		(643,168	)		289,282
Long-term debt, net		756,515		29,048		—		—			785,563
Other liabilities		107,202		40,034		24,959		—			172,195

Total liabilities		1,488,229		243,760		158,219		(643,168	)		1,247,040
Stockholders' equity		1,167,319		1,616,225		515,126		(2,131,351	)		1,167,319

Total liabilities and stockholders' equity	$	2,655,548	$	1,859,985	$	673,345	$	(2,774,519	)	$	2,414,359

Condensed Consolidating Balance Sheet as of December 31, 2009


	FTI Consulting, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	60,720	$	665	$	57,487	$	—		$	118,872
Accounts receivable, net		102,768		143,146		41,628		—			287,542
Intercompany receivables		58,969		335,933		120,210		(515,112	)		—
Other current assets		69,871		17,972		8,007		(2,349	)		93,501

Total current assets		292,328		497,716		227,332		(517,461	)		499,915
Property and equipment, net		46,298		22,728		11,652		—			80,678
Goodwill		426,314		530,809		238,826		—			1,195,949
Other intangible assets, net		8,465		118,756		48,741		—			175,962
Investments in subsidiaries		1,382,550		399,825		131,587		(1,913,962	)		—
Other assets		60,396		161,813		14,104		(111,479	)		124,834

Total assets	$	2,216,351	$	1,731,647	$	672,242	$	(2,542,902	)	$	2,077,338

Liabilities
Intercompany payables	$	319,905	$	99,833	$	95,374	$	(515,112	)	$	—
Other current liabilities		265,053		92,350		51,148		(2,349	)		406,202

Total current liabilities		584,958		192,183		146,522		(517,461	)		406,202
Long-term debt, net		417,012		385		—		—			417,397
Other liabilities		110,167		37,671		113,166		(111,479	)		149,525

Total liabilities		1,112,137		230,239		259,688		(628,940	)		973,124
Stockholders' equity		1,104,214		1,501,408		412,554		(1,913,962	)		1,104,214

Total liabilities and stockholders' equity	$	2,216,351	$	1,731,647	$	672,242	$	(2,542,902	)	$	2,077,338

Condensed Consolidated Statement of Income for the Year Ended December 31, 2010


	FTI Consulting, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	517,053		$	1,208,607	$	301,310		$	(625,509	)	$	1,401,461
Operating expenses
Direct cost of revenues		300,621			937,958		199,321			(622,124	)		815,776
Selling, general and administrative expense		146,753			127,923		70,023			(3,385	)		341,314
Special charges		17,574			32,911		1,535			—			52,020
Amortization of other intangible assets		2,558			15,752		5,600			—			23,910

		467,506			1,114,544		276,479			(625,509	)		1,233,020

Operating income		49,547			94,063		24,831			—			168,441
Other income (expense)		3,198			113,062		(9,697	)		(157,564	)		(51,001	)

Income before income tax provision		52,745			207,125		15,134			(157,564	)		117,440
Income tax (benefit) provision		(452	)		43,717		2,285			—			45,550
Equity in net earnings of subsidiaries		18,693			4,601		5,666			(28,960	)		—

Net income	$	71,890		$	168,009	$	18,515		$	(186,524	)	$	71,890

Condensed Consolidated Statement of Income for the Year Ended December 31, 2009


	FTI Consulting, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	592,986		$	1,179,633	$	255,582		$	(628,255	)	$	1,399,946
Operating expenses
Direct cost of revenues		320,521			907,558		159,764			(620,456	)		767,387
Selling, general and administrative expense		159,449			139,265		53,403			(7,799	)		344,318
Amortization of other intangible assets		1,604			17,865		5,232			—			24,701

		481,574			1,064,688		218,399			(628,255	)		1,136,406

Operating income		111,412			114,945		37,183			—			263,540
Other income (expense)		(40,294	)		12,656		(8,877	)		—			(36,515	)

Income before income tax provision		71,118			127,601		28,306			—			227,025
Income tax provision		28,595			51,305		4,099			—			83,999
Equity in net earnings of subsidiaries		100,503			19,946		8,816			(129,265	)		—

Net income	$	143,026		$	96,242	$	33,023		$	(129,265	)	$	143,026

Condensed Consolidating Statement of Income for the Year Ended December 31, 2008


	FTI Consulting, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	493,919		$	1,143,520	$	239,626		$	(583,920	)	$	1,293,145
Operating expenses
Direct cost of revenues		276,291			872,746		136,127			(576,381	)		708,783
Selling, general and administrative expense		165,370			122,021		50,339			(7,539	)		330,191
Amortization of other intangible assets		1,125			12,438		5,261			—			18,824

		442,786			1,007,205		191,727			(583,920	)		1,057,798

Operating income		51,133			136,315		47,899			—			235,347
Other income (expense)		(40,675	)		6,724		(2,975	)		—			(36,926	)

Income before income tax provision		10,458			143,039		44,924			—			198,421
Income tax provision		4,663			62,010		10,842			—			77,515
Equity in net earnings of subsidiaries		115,111			34,370		10,428			(159,909	)		—

Net income	$	120,906		$	115,399	$	44,510		$	(159,909	)	$	120,906

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2010


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	10,705		$	141,288		$	43,061		$	195,054

Investing activities
Payments for acquisition of businesses, net of cash received		(60,958	)		—			(2,128	)		(63,086	)
Purchases from sale or maturity of short-term investments, net of sales		15,000			—			—			15,000
Purchases of property and equipment and other		(8,572	)		(8,858	)		(5,570	)		(23,000	)

Net cash used in investing activities		(54,530	)		(8,858	)		(7,698	)		(71,086	)

Financing activities
Borrowings under revolving line of credit		20,000			—			—			20,000
Payments of revolving line of credit		(20,000	)		—			—			(20,000	)
Payments of long-term debt and capital lease obligations		(209,233	)		(514	)		—			— (209,747)
Issuance of debt securities, net		390,445			—			—			390,445
Payments of debt financing fees		(3,054	)		—			—			(3,054	)
Purchase and retirement of common stock		(40,634	)		—			—			(40,634	)
Net issuance of common stock under equity compensation plans and other		6,638			—			—			6,638
Excess tax benefits from share-based compensation		204			—			—			204
Intercompany transfers		131,477			(131,151	)		(326	)		—

Net cash provided by (used in) financing activities		275,843			(131,665	)		(326	)		143,852

Effects of exchange rate changes and fair value adjustments on cash and cash equivalents		—			—			(2,122	)		(2,122	)

Net increase in cash and cash equivalents		232,018			765			32,915			265,698
Cash and cash equivalents, beginning of year		60,720			665			57,487			118,872

Cash and cash equivalents, end of year	$	292,738		$	1,430		$	90,402		$	384,570

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2009


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	55,941		$	176,239		$	18,589		$	250,769

Investing activities
Payments for acquisition of businesses, net of cash received		(44,880	)		952			(2,782	)		(46,710	)
Purchases of short-term investments, net of proceeds from sales or maturity		(15,141	)		—			—			(15,141	)
Purchases of property and equipment and other		(8,284	)		(13,637	)		(6,116	)		(28,037	)

Net cash used in investing activities		(68,305	)		(12,685	)		(8,898	)		(89,888	)

Financing activities
Payments of long-term debt and capital lease obligations		(12,967	)		(794	)		—			(13,761	)
Cash received for settlement of interest rate swaps		2,288			—			—			2,288
Purchase and retirement of common stock		(250,000	)		—			—			(250,000	)
Net issuance of common stock under equity compensation plans and other		16,002			—			—			16,002
Excess tax benefits from share-based compensation		5,193			—			—			5,193
Intercompany transfers		181,156			(173,758	)		(7,398	)		—

Net cash used in financing activities		(58,328	)		(174,552	)		(7,398	)		(240,278	)

Effects of exchange rate changes and fair value adjustments on cash and cash equivalents		—			—			6,427			6,427

Net (decrease) increase in cash and cash equivalents		(70,692	)		(10,998	)		8,720			(72,970	)
Cash and cash equivalents, beginning of year		131,412			11,663			48,767			191,842

Cash and cash equivalents, end of year	$	60,720		$	665		$	57,487		$	118,872

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2008


	FTI Consulting, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Operating activities
Net cash provided by operating activities	$	72,352		$	70,977		$	54,151		$	197,480


Payments for acquisition of businesses, net of cash received		(333,830	)		(2,700	)		(6,639	)		(343,169	)
Purchases of property and equipment and other		(15,464	)		(9,068	)		(6,439	)		(30,971	)

Net cash used in investing activities		(349,294	)		(11,768	)		(13,078	)		(374,140	)

Financing activities
Payment of short-term borrowings of acquired subsidiary		—			(2,275	)		—			(2,275	)
Payment of long-term debt		(8,261	)		(483	)		—			(8,744	)
Net issuance of common stock under equity compensation plans and other		20,450			—			—			20,450
Excess tax benefits from share-based compensation		10,820			—			—			10,820
Intercompany transfers		56,785			(46,061	)		(10,724	)		—

Net cash provided by (used in) financing activities		79,794			(48,819	)		(10,724	)		20,251

Effects of exchange rate changes and fair value adjustments on cash and cash equivalents		55			—			(12,267	)		(12,212	)

Net (decrease) increase in cash and cash equivalents		(197,093	)		10,390			18,082			(168,621	)
Cash and cash equivalents, beginning of year		328,505			1,273			30,685			360,463

Cash and cash equivalents, end of year	$	131,412		$	11,663		$	48,767		$	191,842

- Definition

Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions.

+ References+ Details

Quarterly Financial Data

12 Months Ended

Dec. 31, 2010

Quarterly Financial Data

Quarterly Financial Data

21. Quarterly Financial Data (unaudited)


	Quarter Ended
	March 31			June 30			September 30			December 31
2010
Revenues	$	350,040		$	349,033		$	346,140		$	356,248

Operating expenses
Direct cost of revenues		197,460			209,031			204,095			205,190
Selling, general and administrative expenses		84,401			82,202			85,796			88,915
Special charges		30,245			—			—			21,775
Amortization of other intangible assets		6,091			5,852			6,286			5,681

		318,197			297,085			296,177			321,561

Operating income		31,843			51,948			49,963			34,687
Interest income and other		2,354			(141	)		2,527			(317	)
Interest expense		(11,318	)		(11,378	)		(11,904	)		(15,663	)
Loss on early extinguishment of debt		—			—			(5,161	)		—

Income before income tax provision		22,879			40,429			35,425			18,707
Income tax provision		8,694			15,363			13,462			8,031

Net income	$	14,185		$	25,066		$	21,963		$	10,676

Earnings per common share — basic	$	0.31		$	0.55		$	0.48		$	0.24

Earnings per common share — diluted	$	0.29		$	0.52		$	0.47		$	0.23

Weighted average common shares outstanding
Basic		45,799			45,857			45,471			45,110

Diluted		48,128			48,176			46,808			46,693

2009
Revenues	$	347,846		$	360,525		$	348,637		$	342,938

Operating expenses
Direct cost of revenues		192,412			194,181			193,204			187,590
Selling, general and administrative expenses		88,753			88,842			84,976			81,747
Amortization of other intangible assets		6,050			6,149			6,171			6,331

		287,215			289,172			284,351			275,668

Operating income		60,631			71,353			64,286			67,270
Interest income and other		2,303			702			3,330			2,073
Interest expense		(11,013	)		(11,030	)		(11,434	)		(11,446	)

Income before income tax provision		51,921			61,025			56,182			57,897
Income tax provision		20,249			23,800			18,626			21,324

Net income	$	31,672		$	37,225		$	37,556		$	36,573

Earnings per common share — basic	$	0.63		$	0.74		$	0.74		$	0.75

Earnings per common share — diluted	$	0.60		$	0.69		$	0.70		$	0.71

Weighted average common shares outstanding
Basic		50,171			50,384			50,696			48,612

Diluted		52,979			53,835			53,896			51,433

The sum of the quarterly earnings per share amounts may not equal the annual amounts due to changes in the weighted-average number of common shares outstanding during each quarterly period.

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

+ References+ Details

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2010

Schedule II Valuation and Qualifying Accounts

Schedule II Valuation and Qualifying Accounts

Schedule II — Valuation and Qualifying Accounts

(in thousands)


	Balance at Beginning of Period		Additions
Description			Charged to Expense		Charged to Other Accounts*		Deductions**		Balance at End of Period
Description			Charged to Expense		Charged to Other Accounts*		Deductions**		Balance at End of Period
Year Ended December 31, 2010
Reserves and allowances deducted from asset accounts:
Allowance for doubtful accounts and unbilled services	$	59,328	$	10,720	$	9,621	$	16,464	$	63,205

Year Ended December 31, 2009
Reserves and allowances deducted from asset accounts:
Allowance for doubtful accounts and unbilled services	$	45,309	$	19,866	$	11,513	$	17,360	$	59,328

Year Ended December 31, 2008
Reserves and allowances deducted from asset accounts:
Allowance for doubtful accounts and unbilled services	$	30,467	$	22,474	$	5,852	$	13,484	$	45,309

*	Includes estimated provision for unbilled services recorded as a reduction to revenues (i.e., fee, rate and other adjustments).

**	Includes estimated direct write-offs of uncollectible and unrealizable accounts receivable.