Supplemental Guarantor Condensed Consolidating Financials (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Condensed Consolidating Balance Sheet (unaudited)

September 30, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	424		$	11,819	$	—		$	12,243
Accounts receivable, net	60,907			67,158		(72,390		)	55,675
Receivable due from Aspect Software Group Holdings Ltd.	1,224			—		—			1,224
Deferred tax assets	7,934			1,726		—			9,660
Other current assets	14,039			5,664		—			19,703
Total current assets	84,528			86,367		(72,390		)	98,505
Property, plant, and equipment, net	17,538			2,692		—			20,230
Intangible assets, net	53,519			9,347		—			62,866
Goodwill	717,332			33,526		—			750,858
Investment in subsidiaries	62,287			—		(62,287		)	—
Other assets	8,507			9,036		—			17,543
Total assets	$	943,711		$	140,968	$	(134,677	)	$	950,002
Liabilities and shareholder's equity (deficit)
Current liabilities:
Accounts payable	$	53,509		$	30,618	$	(72,390	)	$	11,737
Current portion of long-term debt	10,663			—		—			10,663
Accrued liabilities	38,519			13,039		—			51,558
Deferred revenues	59,160			22,519		—			81,679
Total current liabilities	161,851			66,176		(72,390		)	155,637
Deferred tax liabilities	21,943			450		—			22,393
Long-term deferred revenue	1,924			945		—			2,869
Long-term debt	765,823			—		—			765,823
Other long-term liabilities	39,089			11,110		—			50,199
Total liabilities	990,630			78,681		(72,390		)	996,921
Total Aspect Software Parent, Inc. shareholders’ (deficit) equity	(46,919		)	58,272		(62,287		)	(50,934		)
Noncontrolling interest	—			4,015		—			4,015
Total shareholder's (deficit) equity	(46,919		)	62,287		(62,287		)	(46,919		)
Total liabilities and shareholder's (deficit) equity	$	943,711		$	140,968	$	(134,677	)	$	950,002

Supplemental Condensed Consolidating Balance Sheet (unaudited)

December 31, 2013



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	3,764		$	22,930	$	—		$	26,694
Accounts receivable, net	76,387			50,657		(68,042		)	59,002
Receivable due from Aspect Software Group Holdings Ltd.	2,621			—		—			2,621
Deferred tax assets	7,934			1,263		—			9,197
Other current assets	14,958			6,062		—			21,020
Total current assets	105,664			80,912		(68,042		)	118,534
Property, plant, and equipment, net	16,396			2,071		—			18,467
Intangible assets, net	61,922			10,910		—			72,832
Goodwill	717,334			33,451		—			750,785
Investment in subsidiaries	45,047			—		(45,047		)	—
Other assets	13,094			8,987		—			22,081
Total assets	$	959,457		$	136,331	$	(113,089	)	$	982,699
Liabilities and shareholder's equity (deficit)
Current liabilities:
Accounts payable	$	35,963		$	39,937	$	(68,042	)	$	7,858
Current portion of long-term debt	37,851			—		—			37,851
Accrued liabilities	49,354			12,613		—			61,967
Deferred revenues	52,330			24,340		—			76,670
Total current liabilities	175,498			76,890		(68,042		)	184,346
Deferred tax liabilities	31,425			451		—			31,876
Long-term deferred revenue	3,047			1,408		—			4,455
Long-term debt	770,079			—		—			770,079
Other long-term liabilities	24,068			12,535		—			36,603
Total liabilities	1,004,117			91,284		(68,042		)	1,027,359
Total Aspect Software Parent, Inc. shareholders’ (deficit) equity	(44,660		)	39,777		(45,047		)	(49,930		)
Noncontrolling interest	—			5,270		—			5,270
Total shareholder's (deficit) equity	(44,660		)	45,047		(45,047		)	(44,660		)
Total liabilities and shareholder's (deficit) equity	$	959,457		$	136,331	$	(113,089	)	$	982,699

Supplemental Condensed Consolidating Statement of Operations (unaudited)

For the Three Months Ended September 30, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net revenues	$	74,048		$	49,156		$	(9,754	)	$	113,450
Cost of revenues	35,233			23,218			(9,754		)	48,697
Gross profit	38,815			25,938			—			64,753
Operating expenses:
Research and development	9,290			3,210			—			12,500
Selling, general and administrative	17,327			12,234			—			29,561
Amortization expense for acquired intangible assets	1,741			294			—			2,035
Total operating expenses	28,358			15,738			—			44,096
Income from operations	10,457			10,200			—			20,657
Interest and other income (expense), net	(15,109		)	(4,099		)	—			(19,208		)
(Loss) income before income taxes	(4,652		)	6,101			—			1,449
(Benefit from) provision for income taxes	(1,897		)	1,051			—			(846		)
Equity in earnings of subsidiaries	5,559			—			(5,559		)	—
Net income (loss)	2,804			5,050			(5,559		)	2,295
Less: Net loss attributable to noncontrolling interest	—			(509		)	—			(509		)
Net income (loss) attributable to Aspect Software Parent, Inc.	$	2,804		$	5,559		$	(5,559	)	$	2,804

For the Three Months Ended September 30, 2013



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net revenues	$	74,703		$	39,412		$	(5,603	)	$	108,512
Cost of revenues	32,895			17,332			(5,603		)	44,624
Gross profit	41,808			22,080			—			63,888
Operating expenses:
Research and development	11,409			2,234			—			13,643
Selling, general and administrative	22,617			11,358			—			33,975
Amortization expense for acquired intangible assets	6,540			256			—			6,796
Total operating expenses	40,566			13,848			—			54,414
Income from operations	1,242			8,232			—			9,474
Interest and other income (expense), net	54			(18,744		)	—			(18,690		)
Income (loss) before income taxes	1,296			(10,512		)	—			(9,216		)
Provision for (benefit from) income taxes	(19,308		)	2,173			—			(17,135		)
Equity in earnings of subsidiaries	(12,513		)	—			12,513			—
Net income (loss)	$	8,091		$	(12,685	)	$	12,513		$	7,919

Supplemental Condensed Consolidating Statement of Operations (unaudited)

For the Nine Months Ended September 30, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net revenues	$	219,090		$	129,284		$	(19,652	)	$	328,722
Cost of revenues	104,685			57,767			(19,652		)	142,800
Gross profit	114,405			71,517			—			185,922
Operating expenses:
Research and development	29,894			9,297			—			39,191
Selling, general and administrative	59,987			34,134			—			94,121
Amortization expense for acquired intangible assets	5,324			881			—			6,205
Total operating expenses	95,205			44,312			—			139,517
Income from operations	19,200			27,205			—			46,405
Interest and other income (expense), net	(48,703		)	(8,388		)	—			(57,091		)
(Loss) income before income taxes	(29,503		)	18,817			—			(10,686		)
(Benefit from) provision for income taxes	(4,037		)	2,804			—			(1,233		)
Equity in earnings of subsidiaries	17,268			—			(17,268		)	—
Net (loss) income	(8,198		)	16,013			(17,268		)	(9,453		)
Less: Net loss attributable to noncontrolling interest	—			(1,255		)	—			(1,255		)
Net (loss) income attributable to Aspect Software Parent, Inc.	$	(8,198	)	$	17,268		$	(17,268	)	$	(8,198	)

For the Nine Months Ended September 30, 2013



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net revenues	$	214,392		$	114,935		$	(15,844	)	$	313,483
Cost of revenues	93,146			48,538			(15,844		)	125,840
Gross profit	121,246			66,397			—			187,643
Operating expenses:
Research and development	31,270			6,225			—			37,495
Selling, general and administrative	63,742			30,738			—			94,480
Amortization expense for acquired intangible assets	20,692			795			—			21,487
Restructuring credits	(44		)	(2		)	—			(46		)
Total operating expenses	115,660			37,756			—			153,416
Income from operations	5,586			28,641			—			34,227
Interest and other income (expense), net	(17,750		)	(33,064		)	—			(50,814		)
Loss before income taxes	(12,164		)	(4,423		)	—			(16,587		)
(Benefit from) provision for income taxes	(18,686		)	456			—			(18,230		)
Equity in earnings of subsidiaries	(4,879		)	—			4,879			—
Net income (loss)	$	1,643		$	(4,879	)	$	4,879		$	1,643

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss) (unaudited)

For the Three Months Ended September 30, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	2,804		$	5,050		$	(5,559	)	$	2,295
Change in cumulative translation adjustment	(151		)	918			(8		)	759
Comprehensive income (loss)	2,653			5,968			(5,567		)	3,054
Comprehensive loss attributable to noncontrolling interest	—			(509		)	—			(509		)
Comprehensive (loss) income attributable to Aspect Software Parent, Inc.	$	2,653		$	6,477		$	(5,567	)	$	3,563

For the Three Months Ended September 30, 2013



(in thousands)	Issuer / Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	8,091	$	(12,685	)	$	12,513		$	7,919
Change in cumulative translation adjustment	559		(1,389		)	(5		)	(835		)
Comprehensive income (loss)	$	8,650	$	(14,074	)	$	12,508		$	7,084

For the Nine Months Ended September 30, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) income	$	(8,198	)	$	16,013		$	(17,268	)	$	(9,453	)
Change in cumulative translation adjustment	(248		)	183			(15		)	(80		)
Comprehensive (loss) income	(8,446		)	16,196			(17,283		)	(9,533		)
Comprehensive loss attributable to noncontrolling interest	—			(1,255		)	—			(1,255		)
Comprehensive (loss) income attributable to Aspect Software Parent, Inc.	$	(8,446	)	$	17,451		$	(17,283	)	$	(8,278	)

For the Nine Months Ended September 30, 2013



(in thousands)	Issuer / Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	1,643	$	(4,879	)	$	4,879		$	1,643
Change in cumulative translation adjustment	830		(1,535		)	(53		)	(758		)
Comprehensive income (loss)	$	2,473	$	(6,414	)	$	4,826		$	885

Supplemental Condensed Consolidating Statement of Cash Flows (unaudited)

For the Nine Months Ended September 30, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Operating activities:
Net cash provided by (used in ) operating activities	$	28,480		$	(9,349	)	$	—	$	19,131
Investing activities:
Purchases of property and equipment	$	(7,024	)	$	(1,636	)	$	—	$	(8,660	)
Net cash used in investing activities	(7,024		)	(1,636		)	—		(8,660		)
Financing activities:
Repayment of borrowings	(46,800		)	—			—		(46,800		)
Borrowings under debt facilities	15,000								15,000
Proceeds received from capital contribution	7,004								7,004
Net cash used in by financing activities	(24,796		)	—			—		(24,796		)
Effect of exchange rate changes on cash	—			(126		)	—		(126		)
Net change in cash and cash equivalents	(3,340		)	(11,111		)	—		(14,451		)
Cash and cash equivalents:
Beginning of period	3,764			22,930			—		26,694
End of period	$	424		$	11,819		$	—	$	12,243

Supplemental Condensed Consolidating Statement of Cash Flows (unaudited)

For the Nine Months Ended September 30, 2013



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Operating activities:
Net cash provided by operating activities	$	47,758		$	(32,361	)	$	—	$	15,397
Investing activities:
Cash paid for acquisitions, net of cash acquired	(135,163		)	(6,901		)	—		(142,064		)
Purchases of property and equipment	(7,981		)	(972		)	—		(8,953		)
Purchase of investment	$	—		$	(1,852	)	$	—	$	(1,852	)
Net cash used in investing activities	(143,144		)	(9,725		)	—		(152,869		)
Financing activities:
Repayment of borrowings	(16,100		)	—			—		(16,100		)
Borrowings under debt facilities	110,000			—			—		110,000
Debt issuance costs in connection with borrowings	(5,538		)						(5,538		)
Net cash provided by financing activities	88,362			—			—		88,362
Effect of exchange rate changes on cash	—			(1,034		)	—		(1,034		)
Net change in cash and cash equivalents	(7,024		)	(43,120		)	—		(50,144		)
Cash and cash equivalents:
Beginning of period	11,093			69,745			—		80,838
End of period	$	4,069		$	26,625		$	—	$	30,694