FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTOR AND SUBSIDIARY NON-GUARANTOR (Tables)

9 Months Ended

Sep. 30, 2012

Supplemental Condensed Consolidating Statements of Operations

WEST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(AMOUNTS IN THOUSANDS)

	For the Three Months Ended September 30, 2012
										Eliminations and
	Parent /			Guarantor			Non-Guarantor			Consolidating
	Issuer			Subsidiaries			Subsidiaries			Entries			Consolidated
REVENUE	$	—		$	519,952		$	136,944		$	—		$	656,896
COST OF SERVICES		—			247,192			60,507			—			307,699
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		2,003			197,144			32,758			—			231,905
OPERATING INCOME (LOSS)		(2,003	)		75,616			43,679			—			117,292
OTHER INCOME (EXPENSE):
Interest Expense, net of interest income		(47,961	)		(28,811	)		4,911			—			(71,861	)
Subsidiary Income		62,351			34,019			—			(96,370	)		—
Other		(8,806	)		4,498			(5,484	)		—			(9,792	)
Other income (expense)		5,584			9,706			(573	)		(96,370	)		(81,653	)
INCOME BEFORE INCOME TAX EXPENSE		3,581			85,322			43,106			(96,370	)		35,639
INCOME TAX EXPENSE (BENEFIT)		(18,515	)		23,017			9,041			—			13,543
NET INCOME	$	22,096		$	62,305		$	34,065		$	(96,370	)	$	22,096
Foreign currency translation adjustments, net of tax of $(2,386)		3,893			—			3,893			(3,893	)		3,893
Reclassification of cash flow hedges into earnings, net of tax of $595		(970	)		—			—			—			(970	)
Unrealized gain on cash flow hedges net of tax of $(950)		1,550			—			—			—			1,550
Comprehensive income - West Corporation	$	26,569		$	62,305		$	37,958		$	(100,263	)	$	26,569

WEST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(AMOUNTS IN THOUSANDS)

	For the Three Months Ended September 30, 2011
										Eliminations and
	Parent /			Guarantor			Non-Guarantor			Consolidating
	Issuer			Subsidiaries			Subsidiaries			Entries			Consolidated
REVENUE	$	—		$	501,959		$	130,844		$	—		$	632,803
COST OF SERVICES		—			228,342			56,064			—			284,406
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		(4,716	)		182,474			38,692			—			216,450
OPERATING INCOME		4,716			91,143			36,088			—			131,947
OTHER INCOME (EXPENSE):
Interest Expense, net of interest income		(41,390	)		(29,816	)		3,864			—			(67,342	)
Subsidiary Income		71,178			25,569			—			(96,747	)		—
Other		(4,304	)		3,032			(3,042	)		—			(4,314	)
Other income (expense)		25,484			(1,215	)		822			(96,747	)		(71,656	)
INCOME BEFORE INCOME TAX EXPENSE		30,200			89,928			36,910			(96,747	)		60,291
INCOME TAX EXPENSE (BENEFIT)		(7,147	)		19,674			10,417			—			22,944
NET INCOME	$	37,347		$	70,254		$	26,493		$	(96,747	)	$	37,347
Foreign currency translation adjustments, net of tax of $8,736		(14,254	)		—			(14,254	)		14,254			(14,254	)
Reclassification of a cash flow hedge into earnings, net of tax of $(795)		1,297			—			—			—			1,297
Unrealized loss on cash flow hedges, net of tax of $(1,262)		2,059			—			—			—			2,059
Comprehensive income - West Corporation	$	26,449		$	70,254		$	12,239		$	(82,493	)	$	26,449

WEST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(AMOUNTS IN THOUSANDS)

	For the Nine Months Ended September 30, 2012
										Eliminations and
	Parent /			Guarantor			Non-Guarantor			Consolidating
	Issuer			Subsidiaries			Subsidiaries			Entries			Consolidated
REVENUE	$	—		$	1,544,968		$	412,885		$	—		$	1,957,853
COST OF SERVICES		—			729,274			177,413			—			906,687
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		5,268			580,880			111,985			—			698,133
OPERATING INCOME (LOSS)		(5,268	)		234,814			123,487			—			353,033
OTHER INCOME (EXPENSE):
Interest expense, net of interest income		(129,092	)		(78,989	)		13,533			—			(194,548	)
Subsidiary Income		178,219			84,684			—			(262,903	)		—
Other		(5,063	)		12,451			(16,141	)		—			(8,753	)
Other income (expense)		44,064			18,146			(2,608	)		(262,903	)		(203,301	)
INCOME BEFORE INCOME TAX EXPENSE		38,796			252,960			120,879			(262,903	)		149,732
INCOME TAX EXPENSE (BENEFIT)		(54,038	)		76,583			34,353			—			56,898
NET INCOME	$	92,834		$	176,377		$	86,526		$	(262,903	)	$	92,834
Foreign currency translation adjustments, net of tax of $(252)		411			—			411			(411	)		411
Reclassification of cash flow hedges, net of tax of $1,984		(3,237	)		—			—			—			(3,237	)
Unrealized gain on cash flow hedges net of tax of $(3,156)		5,150			—			—			—			5,150
Comprehensive income - West Corporation	$	95,158		$	176,377		$	86,937		$	(263,314	)	$	95,158

WEST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(AMOUNTS IN THOUSANDS)

	For the Nine Months Ended September 30, 2011
										Eliminations and
	Parent /			Guarantor			Non-Guarantor			Consolidating
	Issuer			Subsidiaries			Subsidiaries			Entries			Consolidated
REVENUE	$	—		$	1,474,031		$	392,410		$	—		$	1,866,441
COST OF SERVICES		—			668,750			163,479			—			832,229
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		(1,407	)		545,265			116,849			—			660,707
OPERATING INCOME		1,407			260,016			112,082			—			373,505
OTHER INCOME (EXPENSE):
Interest expense, net of interest income		(123,141	)		(90,792	)		10,448			—			(203,485	)
Subsidiary Income		206,684			81,446			—			(288,130	)		—
Other		(1,306	)		13,940			(11,136	)		—			1,498
Other income (expense)		82,237			4,594			(688	)		(288,130	)		(201,987	)
INCOME BEFORE INCOME TAX EXPENSE		83,644			264,610			111,394			(288,130	)		171,518
INCOME TAX EXPENSE (BENEFIT)		(22,661	)		58,569			29,305			—			65,213
NET INCOME	$	106,305		$	206,041		$	82,089		$	(288,130	)	$	106,305
Foreign currency translation adjustments, net of tax of $2,571		(4,194	)		—			(4,194	)		4,194			(4,194	)
Reclassification of cash flow hedges, net of tax of $(3,180)		5,188			—			—			—			5,188
Unrealized gain on cash flow hedges net of tax of $(2,582)		4,213			—			—			—			4,213
Comprehensive income - West Corporation	$	111,512		$	206,041		$	77,895		$	(283,936	)	$	111,512

Supplemental Condensed Consolidated Balance Sheets

WEST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SUPPLEMENTAL CONDENSED CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS)

	September 30, 2012
									Eliminations and
	Parent /			Guarantor		Non-Guarantor			Consolidating
	Issuer			Subsidiaries		Subsidiaries			Entries			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	62,178		$	—	$	91,927		$	(5,188	)	$	148,917
Trust cash		—			13,203		—			—			13,203
Accounts receivable, net		—			69,714		390,710			—			460,424
Intercompany receivables		—			449,658		—			(449,658	)		—
Deferred income taxes receivable		3,260			11,092		6,209			—			20,561
Prepaid assets		2,928			28,431		8,480			—			39,839
Deferred expenses		—			26,404		11,405			—			37,809
Other current assets		12,654			288,751		(257,022	)		—			44,383
Total current assets		81,020			887,253		251,709			(454,846	)		765,136
Property and equipment, net		69,774			242,503		40,380			—			352,657
INVESTMENT IN SUBSIDIARIES		1,406,266			392,648		—			(1,798,914	)		—
GOODWILL		—			1,637,411		174,835			—			1,812,246
INTANGIBLES, net		—			265,146		38,618			—			303,764
OTHER ASSETS		128,997			86,855		2,410			—			218,262
TOTAL ASSETS	$	1,686,057		$	3,511,816	$	507,952		$	(2,253,760	)	$	3,452,065
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable	$	3,820		$	57,598	$	23,077		$	(5,188	)	$	79,307
Intercompany payables		439,833			—		9,825			(449,658	)		—
Accrued expenses		(1,721	)		317,563		61,170			—			377,012
Current maturities of long-term debt		8,677			16,448		—			—			25,125
Total current liabilities		450,609			391,609		94,072			(454,846	)		481,444
LONG—TERM OBLIGATIONS, less current maturities		2,425,462			1,570,350		—			—			3,998,812
DEFERRED INCOME TAXES		29,215			97,465		17,588			—			144,268
OTHER LONG-TERM LIABILITIES		69,672			47,688		2,082			—			119,442
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		(1,291,901	)		1,404,704		394,210			(1,798,914	)		(1,291,901	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	1,683,057		$	3,511,816	$	507,952		$	(2,253,760	)	$	3,452,065

WEST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SUPPLEMENTAL CONDENSED CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS)

	December 31, 2011
									Eliminations and
	Parent /			Guarantor		Non-Guarantor			Consolidating
	Issuer			Subsidiaries		Subsidiaries			Entries			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	10,503		$	—	$	89,572		$	(6,239	)	$	93,836
Trust cash		—			16,446		—			—			16,446
Accounts receivable, net		—			50,480		363,333			—			413,813
Intercompany receivables		—			573,280		—			(573,280	)		—
Deferred income taxes receivable		73,709			13,034		462			(77,137	)		10,068
Prepaid assets		3,222			25,232		8,588			—			37,042
Deferred expenses		—			17,339		2,146			—			19,985
Other current assets		5,089			288,434		(262,927	)		—			30,596
Total current assets		92,523			984,745		201,174			(656,656	)		621,786
Property and equipment, net		73,105			243,170		34,580			—			350,855
INVESTMENT IN SUBSIDIARIES		1,460,108			351,329		—			(1,811,437	)		—
GOODWILL		—			1,586,988		175,647			—			1,762,635
INTANGIBLES, net		—			283,807		49,340			—			333,147
OTHER ASSETS		98,673			58,378		2,044			—			159,095
TOTAL ASSETS	$	1,724,409		$	3,508,417	$	462,785		$	(2,468,093	)	$	3,227,518
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable	$	5,001		$	68,317	$	12,360		$	(6,239	)	$	79,439
Intercompany payables		572,554			—		726			(573,280	)		—
Accrued expenses		70,680			260,490		69,403			(77,137	)		323,436
Current maturities of long-term debt		2,354			13,071		—			—			15,425
Total current liabilities		650,589			341,878		82,489			(656,656	)		418,300
LONG-TERM OBLIGATIONS, less current maturities		1,890,134			1,610,806		—			—			3,500,940
DEFERRED INCOME TAXES		22,766			84,918		13,837			—			121,521
OTHER LONG-TERM LIABILITIES		57,333			16,299		9,538			—			83,170
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		(896,413	)		1,454,516		356,921			(1,811,437	)		(896,413	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	1,724,409		$	3,508,417	$	462,785		$	(2,468,093	)	$	3,227,518

Supplemental Condensed Consolidating Statements of Cash Flows

WEST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Supplemental Condensed Consolidating Statements of Cash Flows

(AMOUNTS IN THOUSANDS)

	Nine Months Ended September 30, 2012
										Elimination and
	Parent /			Guarantor			Non-Guarantor			Consolidating
	Issuer			Subsidiaries			Subsidiaries			Entries			Consolidated
NET CASH PROVIDED BY OPERATING ACTIVITIES:	$	—		$	174,824		$	74,311		$	(5,188	)	$	243,947
CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisitions		—			(77,204	)		(60	)		—			(77,264	)
Purchase of property and equipment		(6,873	)		(62,808	)		(18,179	)		—			(87,860	)
Other		—			(163	)		—			—			(163	)
Net cash flows from investing activities		(6,873	)		(140,175	)		(18,239	)		—			(165,287	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit and accounts receivable securitization facilities		133,300			—			172,500			—			305,800
Payments on revolving credit and accounts receivable securitization facilities		(133,300	)		—			(172,500	)		—			(305,800	)
Proceeds from new term loan facility		335,038			634,962			—			—			970,000
Payments on term loan facility		(68,476	)		(379,958	)		—			—			(448,434	)
Dividends paid		(510,634	)		—			—			—			(510,634	)
Debt issuance costs		(27,498	)		—			—			—			(27,498	)
Principal repayments on long-term obligations		(3,346	)		(10,647	)		—			—			(13,993	)
Proceeds from stock options exercised including excess tax benefits		8,248			—			—			—			8,248
Repurchase of common stock		(1,488	)		—			—			—			(1,488	)
Payments of capital lease obligations		—			(28	)		(16	)		—			(44	)
Net cash flows from financing activities		(268,156	)		244,329			(16	)		—			(23,843	)
Intercompany		326,704			(278,978	)		(53,965	)		6,239			—
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		—			—			264			—			264
NET CHANGE IN CASH AND CASH EQUIVALENTS		51,675			—			2,355			1,051			55,081
CASH AND CASH EQUIVALENTS, Beginning of period		10,503			—			89,572			(6,239	)		93,836
CASH AND CASH EQUIVALENTS, End of period	$	62,178		$	—		$	91,927		$	(5,188	)	$	148,917

WEST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Supplemental Condensed Consolidating Statements of Cash Flows

(AMOUNTS IN THOUSANDS)

	Nine Months Ended September 30, 2011
										Elimination and
	Parent /			Guarantor			Non-Guarantor			Consolidating
	Issuer			Subsidiaries			Subsidiaries			Entries			Consolidated
NET CASH PROVIDED BY OPERATING ACTIVITIES:	$	—		$	293,347		$	8,795		$	(11,534	)	$	290,608
CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisitions		—			(185,845	)		(25,686	)		—			(211,531	)
Purchase of property and equipment		(6,939	)		(62,972	)		(10,627	)		—			(80,538	)
Other		—			95			7			—			102
Net cash flows from investing activities		(6,939	)		(248,722	)		(36,306	)		—			(291,967	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit and accounts receivable securitization facilities		342,500			—			262,000			—			604,500
Payments on revolving credit and accounts receivable securitization facilities		(342,500	)		—			(262,000	)		—			(604,500	)
Principal repayments on long-term obligations		(5,327	)		(11,874	)		—			—			(17,201	)
Repurchase of common stock		(4,829	)		—			—			—			(4,829	)
Payments of capital lease obligations		(628	)		(47	)		(26	)		—			(701	)
Other		(611	)		—			—			—			(611	)
Net cash flows from financing activities		(11,395	)		(11,921	)		(26	)		—			(23,342	)
Intercompany		20,444			(32,704	)		7,668			4,592			—
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		—			—			1,716			—			1,716
NET CHANGE IN CASH AND CASH EQUIVALENTS		2,110			—			(18,153	)		(6,942	)		(22,985	)
CASH AND CASH EQUIVALENTS, Beginning of period		—			—			102,385			(4,592	)		97,793
CASH AND CASH EQUIVALENTS, End of period	$	2,110		$	—		$	84,232		$	(11,534	)	$	74,808