(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 nine months ended September 30, 2013 (in thousands).

	GSE			GUARANTORS			NON- GUARANTOR		ELIMINATIONS			GSE CONSOLIDATED

Cash & cash equivalents	$	24,380		$	9,193		$	—	$	—		$	33,573
Accounts receivable - less allowance for doubtful accounts	4,122			215,204					(182,775		)	36,551
Note from affiliate	2,500			—					—			2,500
Inventories	—			79,266			—		—			79,266
Prepaid expenses and other assets	1,290			14,289			—		—			15,579
Total current assets	32,292			317,952			—		(182,775		)	167,469

Property and equipment, net	3,336			21,364			—		—			24,700
Affiliate note and investments	40,000			4,934			—		(40,000		)	4,934
Intangible assets, net	7,885			3,053			—		—			10,938
Goodwill	49,944			—			—		—			49,944
Investment in subsidiaries	838,741			—			—		(838,741		)	—
Deferred tax assets, net	—			107					—			107
Other assets	3,741			1,899			—		—			5,640
Total assets	$	975,939		$	349,309		$	—	$	(1,061,516	)	$	263,732

Accounts payable	$	245		$	21,505		$	—	$	—		$	21,750
Accrued and other liabilities	17,179			29,811			—		—			46,990
Deferred revenue and gains	1,270			64,708			—		—			65,978
Current portion of long-term debt	192,775			40,000			—		(222,775		)	10,000
Total current liabilities	211,469			156,024					(222,775		)	144,718

Deferred revenue and gains	1,829			35,504			—		—			37,333
Long-term debt, net of current portion	311,385			—			—		—			311,385
Other long-term liabilities	683,224			(680,960		)	—		—			2,264
Total liabilities	1,207,907			(489,432		)			(222,775		)	495,700

Interdivisional equity	—			838,741			—		(838,741		)	—
Member’s deficit	(231,968		)	—			—		—			(231,968		)
Total liabilities & member’s deficit	$	975,939		$	349,309		$	—	$	(1,061,516	)	$	263,732

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	4,239		$	416,892		$	—	$	(1,302	)	$	419,829
Costs applicable to revenues	(3,370		)	(252,080		)	—		1,302			(254,148		)
Operating expenses	(12,151		)	(104,122		)	—		—			(116,273		)
Interest expense, net	(28,741		)	16			—		—			(28,725		)
Income from investment in consolidated subsidiaries	42,510			—			—		(42,510		)	—
Other non operating income (expenses)	19,754			(18,026		)	—		—			1,728
Income tax expense	(12		)	(170		)	—		—			(182		)
Net income	$	22,229		$	42,510		$	—	$	(42,510	)	$	22,229

Cash flows from operations	$	2,961		$	41,066		$	—	$	—		$	44,027
Cash flows used in investing activites	(1,955		)	(5,584		)	—		—			(7,539		)
Cash flows provided by (used in) financing activities	20,195			(43,056		)	—		—			(22,861		)
Cash at beginning of year	3,179			16,767			—		—			19,946
Cash at end of period	$	24,380		$	9,193		$	—	$	—		$	33,573

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

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	973		$	148,246		$	—	$	(299	)	$	148,920
Costs applicable to revenues	(586		)	(90,105		)	—		299			(90,392		)
Operating expenses	(4,260		)	(37,285		)	—		—			(41,545		)
Interest expense, net	(9,571		)	10			—		—			(9,561		)
Income from investment in consolidated subsidiaries	14,221			—			—		(14,221		)	—
Other non operating income (expenses)	6,484			(6,579		)	—		—			(95		)
Income tax expense	(4		)	(66		)	—		—			(70		)
Net income	$	7,257		$	14,221		$	—	$	(14,221	)	$	7,257

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 - less 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
Deferred revenue and gains	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 and gains	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 nine months ended September 30, 2012 (in thousands).

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	6,499		$	395,213		$	—	$	(5,707	)	$	396,005
Costs applicable to revenues	(8,026		)	(236,484		)	—		5,707			(238,803		)
Operating expenses	(13,329		)	(104,623		)	—		—			(117,952		)
Interest expense, net	(32,957		)	56			—		—			(32,901		)
Income from investment in consolidated subsidiaries	36,991			—			—		(36,991		)	—
Other non operating income (expenses)	21,410			(17,145		)	—		—			4,265
Income tax expense	(142		)	(26		)	—		—			(168		)
Net income	$	10,446		$	36,991		$	—	$	(36,991	)	$	10,446

Cash flows from operations	$	(43,863	)	$	59,365		$	—	$	2,025		$	17,527
Cash flows provided by (used in) investing activities	(1,607		)	(6,700		)	—		—			(8,307		)
Cash flows provided (used in) by financing activities	52,414			(61,073		)	—		(2,025		)	(10,684		)
Cash at beginning of year	7,749			12,526			—		—			20,275
Cash at end of period	$	14,693		$	4,118		$	—	$	—		$	18,811

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

							NON-					GSE
	GSE			GUARANTORS			GUARANTOR		ELIMINATIONS			CONSOLIDATED
Revenue	$	1,297		$	139,569		$	—	$	(1,253	)	$	139,613
Costs applicable to revenues	(1,314		)	(84,592		)	—		1,253			(84,653		)
Operating expenses	(4,991		)	(36,929		)	—		—			(41,920		)
Interest expense, net	(10,949		)	(27		)	—		—			(10,976		)
Income from investment in consolidated subsidiaries	11,847			—			—		(11,847		)	—
Other non operating income (expenses)	7,405			(6,148		)	—		—			1,257
Income tax expense	(31		)	(26		)	—		—			(57		)
Net income	$	3,264		$	11,847		$	—	$	(11,847	)	$	3,264