(6) NOTES OFFERING, GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

In November 2010, the Company completed an offering of $333.0 million principal amount of the Senior Secured Notes. See Note 5 - Debt. The Company’s present and future restricted subsidiaries guarantee the Senior Secured Notes with unconditional guarantees of payment.

All of the Company’s restricted subsidiaries have jointly and severally guaranteed the indebtedness under the Senior Secured Notes. Full financial statements of the Guarantors have not been included because, pursuant to their respective guarantees, the Guarantors are jointly and severally liable with respect to the Senior Secured Notes. The Company’s unrestricted subsidiary, CWFR Capital Corp. is a not a guarantor of the Senior Secured Notes.

The following are summarized statements setting forth certain financial information concerning the Guarantor Subsidiaries as of and for the three months ended March 31, 2013 (in thousands).

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED

Cash & cash equivalents	$	5,946		$	10,845		$	—	$	—		$	16,791
Accounts receivable - net of allowance for doubtful accounts	32,838			183,292					(184,546		)	31,584
Note from affiliate	2,500			—					—			2,500
Inventories	—			77,570			—		—			77,570
Prepaid expenses and other assets	1,060			12,842			—		—			13,902
Total current assets	42,344			284,549			—		(184,546		)	142,347

Property and equipment, net	2,821			20,799			—		—			23,620
Affiliate note and investments	40,000			5,195			—		(40,000		)	5,195
Intangible assets, net	8,438			3,711			—		—			12,149
Goodwill	49,944			—			—		—			49,944
Investment in subsidiaries	806,916			—			—		(806,916		)	—
Deferred tax assets, net	—			88					—			88
Other assets	3,831			2,089			—		—			5,920
Total assets	$	954,294		$	316,431		$	—	$	(1,031,462	)	$	239,263

Accounts payable	$	1,127		$	26,610		$	—	$	—		$	27,737
Accrued and other liabilities	17,080			21,455			—		—			38,535
Current portion of deferred revenue	459			52,659			—		—			53,118
Current portion of long-term debt	194,546			40,000			—		(224,546		)	10,000
Total current liabilities	213,212			140,724					(224,546		)	129,390

Deferred revenue	1,891			30,970			—		—			32,861
Long-term debt, net of current portion	310,854			6,481			—		—			317,335
Other long-term liabilities	671,606			(668,660		)	—		—			2,946
Total liabilities	1,197,563			(490,485		)			(224,546		)	482,532

Interdivisional equity	—			806,916			—		(806,916		)	—
Member’s deficit	(243,269		)	—			—		—			(243,269		)
Total liabilities & member’s deficit	$	954,294		$	316,431		$	—	$	(1,031,462	)	$	239,263

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	950		$	113,586		$	—	$	(568	)	$	113,968
Costs applicable to revenues	(521		)	(67,818		)	—		568			(67,771		)
Operating expenses	(3,767		)	(30,265		)	—		—			(34,032		)
Interest expense, net	(9,590		)	16			—		—			(9,574		)
Income from investment in consolidated subsidiaries	10,685			—			—		(10,685		)	—
Other non operating income (expenses)	6,600			(4,767		)	—		—			1,833
Income tax expense	(4		)	(67		)	—		—			(71		)
Net income	$	4,353		$	10,685		$	—	$	(10,685	)	$	4,353

Cash flows from operations	$	(13,698	)	$	21,714		$	—	$	—		$	8,016
Cash flows provided by (used in) investing activities	(458		)	(914		)	—		—			(1,372		)
Cash flows provided by (used in) financing activities	16,923			(26,722		)	—		—			(9,799		)
Cash at beginning of year	3,179			16,767			—		—			19,946
Cash at end of period	$	5,946		$	10,845		$	—	$	—		$	16,791

The following are summarized balance sheet statements setting forth certain financial information concerning the Guarantor Subsidiaries as of December 31, 2012 (in thousands).

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Cash & cash equivalents	$	3,179		$	16,767		$	—	$	—		$	19,946
Accounts receivable - net of allowance for doubtful accounts	15,436			201,489					(185,402		)	31,523
Inventories	—			65,221			—		—			65,221
Other current assets	881			12,849			—		—			13,730
Total current assets	19,496			296,326			—		(185,402		)	130,420

Property and equipment, net	2,701			21,297			—		—			23,998
Intangible assets	8,851			3,514			—		—			12,365
Goodwill	49,944			—			—		—			49,944
Investment in subsidiaries	796,231			—			—		(796,231		)	—
Affiliate note and investments	40,000			5,075			—		(40,000		)	5,075
Other assets	6,257			2,302			—		—			8,559
Total assets	$	923,480		$	328,514		$	—	$	(1,021,633	)	$	230,361

Accounts payable	$	631		$	16,373		$	—	$	—		17,004
Accrued and other liabilities	8,596			24,074			—		—			32,670
Current portion of long-term debt	195,402			40,000			—		(225,402		)	10,000
Current portion of deferred revenue	126			54,457			—		—			54,583
Total current liabilities	204,755			134,904					(225,402		)	114,257

Deferred revenue	1,922			32,394			—		—			34,316
Long-term debt	310,598			11,872			—		—			322,470
Other long-term liabilities	650,001			(646,887		)	—		—			3,114
Total liabilities	1,167,276			(467,717		)			(225,402		)	474,157

Interdivisional equity	—			796,231			—		(796,231		)	—
Member’s deficit	(243,796		)	—			—		—			(243,796		)
Total liabilities & member’s deficit	$	923,480		$	328,514		$	—	$	(1,021,633	)	$	230,361

The following are summarized statements setting forth certain financial information concerning the Guarantor Subsidiaries for the three months ended March 31, 2012 (in thousands).

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	2,931		$	109,639		$	—	$	(2,512	)	$	110,058
Costs applicable to revenues	(3,851		)	(64,107		)	—		2,512			(65,446		)
Operating expenses	(4,304		)	(30,265		)	—		—			(34,569		)
Interest expense, net	(11,072		)	72			—		—			(11,000		)
Income from investment in consolidated subsidiaries	9,725			—			—		(9,725		)	—
Other non operating income (expenses)	6,679			(5,614		)	—		—			1,065
Income tax expense	(104		)	—			—		—			(104		)
Net income (loss)	$	4		$	9,725		$	—	$	(9,725	)	$	4

Cash flows from operations	$	(8,709	)	$	13,698		$	—	$	—		$	4,989
Cash flows provided by (used in) investing activities	(794		)	(3,084		)	—		—			(3,878		)
Cash flows provided (used in) by financing activities	12,260			(15,426		)	—		—			(3,166		)
Cash at beginning of year	7,749			12,526			—		—			20,275
Cash at end of period	$	10,506		$	7,714		$	—	$	—		$	18,220