(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 six months ended June 30, 2013 (in thousands).

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED

Cash & cash equivalents	$	10,221		$	7,067		$	—	$	—		$	17,288
Accounts receivable - net of allowance for doubtful accounts	5,337			215,569					(183,670		)	37,236
Note from affiliate	2,500			—					—			2,500
Inventories	—			84,859			—		—			84,859
Prepaid expenses and other assets	930			12,642			—		—			13,572
Total current assets	18,988			320,137			—		(183,670		)	155,455

Property and equipment, net	2,756			20,804			—		—			23,560
Affiliate note and investments	40,000			4,815			—		(40,000		)	4,815
Intangible assets, net	8,268			3,386			—		—			11,654
Goodwill	49,944			—			—		—			49,944
Investment in subsidiaries	824,520			—			—		(824,520		)	—
Deferred tax assets, net	—			98					—			98
Other assets	3,786			2,016			—		—			5,802
Total assets	$	948,262		$	351,256		$	—	$	(1,048,190	)	$	251,328

Accounts payable	$	371		$	25,545		$	—	$	—		$	25,916
Accrued and other liabilities	7,421			29,896			—		—			37,317
Current portion of deferred revenue	258			55,786			—		—			56,044
Current portion of long-term debt	188,670			40,000			—		(223,670		)	5,000
Total current liabilities	196,720			151,227					(223,670		)	124,277

Deferred revenue	1,860			33,978			—		—			35,838
Long-term debt, net of current portion	316,114			8,856			—		—			324,970
Other long-term liabilities	669,768			(667,325		)	—		—			2,443
Total liabilities	1,184,462			(473,264		)			(223,670		)	487,528

Interdivisional equity	—			824,520			—		(824,520		)	—
Member’s deficit	(236,200		)	—			—		—			(236,200		)
Total liabilities & member’s deficit	$	948,262		$	351,256		$	—	$	(1,048,190	)	$	251,328

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	3,266		$	268,646		$	—	$	(1,003	)	$	270,909
Costs applicable to revenues	(2,784		)	(161,975		)	—		1,003			(163,756		)
Operating expenses	(7,891		)	(66,837		)	—		—			(74,728		)
Interest expense, net	(19,170		)	6			—		—			(19,164		)
Income from investment in consolidated subsidiaries	28,289			—			—		(28,289		)	—
Other non operating income (expenses)	13,270			(11,447		)	—		—			1,823
Income tax expense	(8		)	(104		)	—		—			(112		)
Net income	$	14,972		$	28,289		$	—	$	(28,289	)	$	14,972

Cash flows from operations	$	(2,629	)	$	14,852		$	—	$	—		$	12,223
Cash flows provided by (used in) investing activities	(988		)	(2,913		)	—		—			(3,901		)
Cash flows provided by (used in) financing activities	10,659			(21,639		)	—		—			(10,980		)
Cash at beginning of year	3,179			16,767			—		—			19,946
Cash at end of period	$	10,221		$	7,067		$	—	$	—		$	17,288

The following are summarized statements setting forth certain financial information concerning the Guarantor Subsidiaries as of and for the three months ended June 30, 2013 (in thousands).

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	2,316		$	155,060		$	—	$	(435	)	$	156,941
Costs applicable to revenues	(2,263		)	(94,157		)	—		435			(95,985		)
Operating expenses	(4,124		)	(36,572		)	—		—			(40,696		)
Interest expense, net	(9,580		)	(10		)	—		—			(9,590		)
Income from investment in consolidated subsidiaries	17,604			—			—		(17,604		)	—
Other non operating income (expenses)	6,670			(6,680		)	—		—			(10		)
Income tax expense	(4		)	(37		)	—		—			(41		)
Net income	$	10,619		$	17,604		$	—	$	(17,604	)	$	10,619

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	3,308			213,617					(185,402		)	31,523
Inventories	—			65,221			—		—			65,221
Prepaid expenses and other assets	881			12,849			—		—			13,730
Total current assets	7,368			308,454			—		(185,402		)	130,420

Property and equipment, net	2,701			21,297			—		—			23,998
Affiliate note and investments	40,000			5,075			—		(40,000		)	5,075
Intangible assets, net	8,851			3,514			—		—			12,365
Goodwill	49,944			—			—		—			49,944
Investment in subsidiaries	796,231			—			—		(796,231		)	—
Deferred tax assets, net	—			79			—		—			79
Other assets	6,257			2,223			—		—			8,480
Total assets	$	911,352		$	340,642		$	—	$	(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 deferred revenue	126			54,457			—		—			54,583
Current portion of long-term debt	195,402			40,000			—		(225,402		)	10,000
Total current liabilities	204,755			134,904					(225,402		)	114,257

Deferred revenue	1,922			32,394			—		—			34,316
Long-term debt, net of current portion	310,598			11,872			—		—			322,470
Other long-term liabilities	637,873			(634,759		)	—		—			3,114
Total liabilities	1,155,148			(455,589		)			(225,402		)	474,157

Interdivisional equity	—			796,231			—		(796,231		)	—
Member’s deficit	(243,796		)	—			—		—			(243,796		)

Total liabilities & member’s deficit	$	911,352		$	340,642		$	—	$	(1,021,633	)	$	230,361

The following are summarized statements setting forth certain financial information concerning the Guarantor Subsidiaries for the six months ended June 30, 2012 (in thousands).

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	5,202		$	255,644		$	—	$	(4,454	)	$	256,392
Costs applicable to revenues	(6,712		)	(151,892		)	—		4,454			(154,150		)
Operating expenses	(8,338		)	(67,694		)	—		—			(76,032		)
Interest expense, net	(22,008		)	83			—		—			(21,925		)
Income from investment in consolidated subsidiaries	25,144			—			—		(25,144		)	—
Other non operating income (expenses)	14,005			(10,997		)	—		—			3,008
Income tax expense	(111		)	—			—		—			(111		)
Net income	$	7,182		$	25,144		$	—	$	(25,144	)	$	7,182

Cash flows from operations	$	(28,176	)	$	30,681		$	—	$	—		$	2,505
Cash flows provided by (used in) investing activities	(1,094		)	(4,549		)	—		—			(5,643		)
Cash flows provided (used in) by financing activities	31,053			(33,222		)	—		—			(2,169		)
Cash at beginning of year	7,749			12,526			—		—			20,275
Cash at end of period	$	9,532		$	5,436		$	—	$	—		$	14,968

The following are summarized statements setting forth certain financial information concerning the Guarantor Subsidiaries for the three months ended June 30, 2012 (in thousands).

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	2,271		$	146,005		$	—	$	(1,942	)	$	146,334
Costs applicable to revenues	(2,861		)	(87,785		)	—		1,942			(88,704		)
Operating expenses	(4,034		)	(37,429		)	—		—			(41,463		)
Interest expense, net	(10,936		)	11			—		—			(10,925		)
Income from investment in consolidated subsidiaries	15,419			—			—		(15,419		)	—
Other non operating income (expenses)	7,326			(5,383		)	—		—			1,943
Income tax expense	(7		)	—			—		—			(7		)
Net income	$	7,178		$	15,419		$	—	$	(15,419	)	$	7,178