Supplemental Guarantor Condensed Consolidating Financials (Notes)

12 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIALS

The Company’s debt issued in May 2010 is fully and unconditionally and jointly and severally guaranteed by Aspect Software

Parent, Inc. and each of its domestic subsidiaries. Aspect Software Inc. is the issuer of the Company’s debt. Each of the

guarantor subsidiaries is 100% owned, directly or indirectly by Aspect Software Parent, Inc. The following represents the

supplemental condensed financial information of Aspect Software Parent, Inc. and its guarantor and non-guarantor subsidiaries, as of December 31, 2014 and December 31, 2013 and for the years ended December 31, 2014, 2013 and 2012.

Supplemental Condensed Consolidating Balance Sheet

December 31, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	2,124		$	14,906	$	—		$	17,030
Accounts receivable, net	71,021			65,701		(76,799		)	59,923
Receivable due from Aspect Software Group Holdings Ltd.	415			—		—			415
Deferred tax assets	1,808			1,908		—			3,716
Other current assets	16,496			5,009		—			21,505
Total current assets	91,864			87,524		(76,799		)	102,589
Property, plant, and equipment, net	18,146			3,427		—			21,573
Intangible assets, net	50,855			8,625		—			59,480
Goodwill	714,795			36,268		—			751,063
Investment in subsidiaries	67,041			—		(67,041		)	—
Other assets	8,166			8,990		—			17,156
Total assets	$	950,867		$	144,834	$	(143,840	)	$	951,861
Liabilities and deficit
Current liabilities:
Accounts payable	$	59,718		$	32,168	$	(76,799	)	$	15,087
Current portion of long-term debt	17,094			—		—			17,094
Accrued liabilities	39,423			14,268		—			53,691
Deferred revenues	52,045			17,867		—			69,912
Total current liabilities	168,280			64,303		(76,799		)	155,784
Deferred tax liabilities	28,988			3,631		—			32,619
Long-term deferred revenue	1,571			897		—			2,468
Long-term debt	764,411			—		—			764,411
Other long-term liabilities	42,311			8,962		—			51,273
Total liabilities	1,005,561			77,793		(76,799		)	1,006,555
Total Aspect Software Parent, Inc. deficit	(54,694		)	63,409		(67,041		)	(58,326		)
Noncontrolling interest	—			3,632		—			3,632
Total deficit	(54,694		)	67,041		(67,041		)	(54,694		)
Total liabilities and deficit	$	950,867		$	144,834	$	(143,840	)	$	951,861

Supplemental Condensed Consolidating Balance Sheet

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 from Aspect Software Group Holdings Ltd.	1,808			—		—			1,808
Deferred tax assets	7,934			1,263		—			9,197
Other current assets	14,958			6,062		—			21,020
Total current assets	104,851			80,912		(68,042		)	117,721
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	$	958,644		$	136,331	$	(113,089	)	$	981,886
Liabilities and 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. deficit	(45,473		)	39,777		(45,047		)	(50,743		)
Noncontrolling interest	—			5,270		—			5,270
Total deficit	(45,473		)	45,047		(45,047		)	(45,473		)
Total liabilities and deficit	$	958,644		$	136,331	$	(113,089	)	$	981,886

Supplemental Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net revenues	$	303,284		$	165,385		$	(23,772	)	$	444,897
Cost of revenues	139,308			75,875			(23,772		)	191,411
Gross profit	163,976			89,510			—			253,486
Operating expenses:
Research and development	39,118			11,950			—			51,068
Selling, general and administrative	83,190			45,816			—			129,006
Amortization expense for acquired intangible assets	6,962			1,161			—			8,123
Restructuring charges	3,255			—			—			3,255
Total operating expenses	132,525			58,927			—			191,452
Income from operations	31,451			30,583			—			62,034
Interest and other income (expense), net	(66,954		)	(7,981		)	—			(74,935		)
(Loss) income before income taxes	(35,503		)	22,602			—			(12,901		)
Provision for income taxes	20,732			1,825			—			22,557
Equity in earnings of subsidiaries	22,415			—			(22,415		)	—
Net (loss) income	(33,820		)	20,777			(22,415		)	(35,458		)
Less: Net loss attributable to noncontrolling interest	—			(1,638		)	—			(1,638		)
Net (loss) income attributable to Aspect Software Parent, Inc.	$	(33,820	)	$	22,415		$	(22,415	)	$	(33,820	)

For the Year Ended December 31, 2013



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net revenues	$	300,246		$	160,487		$	(23,955	)	$	436,778
Cost of revenues	127,963			70,664			(23,955		)	174,672
Gross profit	172,283			89,823			—			262,106
Operating expenses:
Research and development	41,745			8,472			—			50,217
Selling, general and administrative	87,575			44,149			—			131,724
Amortization expense for acquired intangible assets	22,259			1,098			—			23,357
Restructuring credits	(44		)	(2		)	—			(46		)
Total operating expenses	151,535			53,717			—			205,252
Income from operations	20,748			36,106			—			56,854
Interest and other income (expense), net	(33,018		)	(37,393		)	—			(70,411		)
Loss before income taxes	(12,270		)	(1,287		)	—			(13,557		)
(Benefit from) provision for income taxes	(20,475		)	1,255			—			(19,220		)
Equity in losses of subsidiaries	(2,147		)	—			2,147			—
Net income (loss)	6,058			(2,542		)	2,147			5,663
Less: Net loss attributable to noncontrolling interest	—			(395		)	—			(395		)
Net income (loss) attributable to Aspect Software Parent, Inc.	$	6,058		$	(2,147	)	$	2,147		$	6,058

Supplemental Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2012



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net revenues	$	309,157		$	159,592		$	(26,038	)	$	442,711
Cost of revenues	134,370			67,351			(26,038		)	175,683
Gross profit	174,787			92,241			—			267,028
Operating expenses:
Research and development	34,838			5,810			—			40,648
Selling, general and administrative	81,351			47,340			—			128,691
Amortization expense for acquired intangible assets	29,674			1,060			—			30,734
Restructuring charges	1,478			804			—			2,282
Total operating expenses	147,341			55,014			—			202,355
Income from operations	27,446			37,227			—			64,673
Interest and other income (expense), net	803			(68,498		)	—			(67,695		)
Income (loss) before income taxes	28,249			(31,271		)	—			(3,022		)
(Benefit from) provision for income taxes	(2,815		)	1,181			—			(1,634		)
Equity in earnings of subsidiaries	(32,452		)	—			32,452			—
Net income (loss)	$	(1,388	)	$	(32,452	)	$	32,452		$	(1,388	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Year Ended December 31, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) income	$	(33,820	)	$	20,777		$	(22,415	)	$	(35,458	)
Change in cumulative translation adjustment	(310		)	(864		)	(23		)	(1,197		)
Comprehensive (loss) income	(34,130		)	19,913			(22,438		)	(36,655		)
Comprehensive loss attributable to noncontrolling interest	—			(1,638		)	—			(1,638		)
Comprehensive (loss) income attributable to Aspect Software Parent, Inc.	$	(34,130	)	$	21,551		$	(22,438	)	$	(35,017	)

For the Year Ended December 31, 2013



(in thousands)	Issuer / Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	6,058	$	(2,542	)	$	2,147		$	5,663
Change in cumulative translation adjustment	1,296		(1,527		)	(75		)	(306		)
Comprehensive income (loss)	7,354		(4,069		)	2,072			5,357
Comprehensive loss attributable to noncontrolling interest	—		(395		)	—			(395		)
Comprehensive income (loss) attributable to Aspect Software Parent, Inc.	$	7,354	$	(3,674	)	$	2,072		$	5,752

For the Year Ended December 31, 2012



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Net income (loss)	$	(1,388	)	$	(32,452	)	$	32,452	$	(1,388	)
Change in cumulative translation adjustment	1,071			513			38		1,622
Comprehensive income (loss)	$	(317	)	$	(31,939	)	$	32,490	$	234

Supplemental Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2014



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Operating activities:
Net cash provided by (used in) operating activities	$	11,212		$	(5,054	)	$	—	$	6,158
Investing activities:
Purchases of property and equipment	(10,195		)	(3,020		)	—		(13,215		)
Net cash used in investing activities	(10,195		)	(3,020		)	—		(13,215		)
Financing activities:
Repayment of borrowings	(52,900		)	—			—		(52,900		)
Borrowings under debt facilities	26,000			—			—		26,000
Debt issuance costs in connection with borrowings	(2,762		)	—			—		(2,762		)
Proceeds received from capital contribution	27,005			—			—		27,005
Net cash used in financing activities	(2,657		)	—			—		(2,657		)
Effect of exchange rate changes on cash	—			50			—		50
Net change in cash and cash equivalents	(1,640		)	(8,024		)	—		(9,664		)
Cash and cash equivalents:
Beginning of period	3,764			22,930			—		26,694
End of period	$	2,124		$	14,906		$	—	$	17,030

For the Year Ended December 31, 2013



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Operating activities:
Net cash provided by (used in) operating activities	$	48,588		$	(36,186	)	$	—	$	12,402
Investing activities:
Cash paid for acquisitions, net of cash acquired	(138,272		)	(6,901		)	—		(145,173		)
Purchases of property and equipment	(9,907		)	(1,225		)	—		(11,132		)
Purchase of investment	—			(1,873		)	—		(1,873		)
Net cash used in investing activities	(148,179		)	(9,999		)	—		(158,178		)
Financing activities:
Repayment of borrowings	(32,200		)	—			—		(32,200		)
Borrowings under debt facilities	130,000			—			—		130,000
Debt issuance costs in connection with borrowings	(5,538		)	—			—		(5,538		)
Net cash provided by financing activities	92,262			—			—		92,262
Effect of exchange rate changes on cash	—			(630		)	—		(630		)
Net change in cash and cash equivalents	(7,329		)	(46,815		)	—		(54,144		)
Cash and cash equivalents:
Beginning of period	11,093			69,745			—		80,838
End of period	$	3,764		$	22,930		$	—	$	26,694

Supplemental Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2012



(in thousands)	Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Operating activities:
Net cash (used in) provided by operating activities	$	(23,639	)	$	48,350		$	—	$	24,711
Investing activities:
Purchases of property and equipment	(3,968		)	(1,092		)	—		(5,060		)
Net cash used in investing activities	(3,968		)	(1,092		)	—		(5,060		)
Financing activities:
Repayment of borrowings	(78,250		)	—			—		(78,250		)
Debt issuance costs in connection with borrowings	(2,152		)	—			—		(2,152		)
Sales of subsidiaries	1,344			(1,344		)	—		—
Dividends received (paid)	60,000			(60,000		)	—		—
Net cash used in financing activities	(19,058		)	(61,344		)	—		(80,402		)
Effect of exchange rate changes on cash	—			1,776			—		1,776
Net change in cash and cash equivalents	(46,665		)	(12,310		)	—		(58,975		)
Cash and cash equivalents:
Beginning of period	57,758			82,055			—		139,813
End of period	$	11,093		$	69,745		$	—	$	80,838

Aspect Software Parent, Inc. 10-K