10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number 001-35846

West Corporation

(Exact name of registrant as specified in its charter)

DELAWARE	47-0777362
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
11808 Miracle Hills Drive, Omaha, Nebraska	68154
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (402) 963-1200

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

At July 29, 2016, 82,738,887 shares of the registrant’s common stock were outstanding.

INDEX

		Page No.
PART I. FINANCIAL INFORMATION		3
Item 1.	Financial Statements (Unaudited)	3
	Report of Independent Registered Public Accounting Firm	3
	Condensed Consolidated Statements of Income - Three and Six Months Ended June 30, 2016 and 2015	4
	Condensed Consolidated Statements of Comprehensive Income - Three and Six Months Ended June 30, 2016 and 2015	5
	Condensed Consolidated Balance Sheets at June 30, 2016 and December 31, 2015	6
	Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2016 and 2015	7
	Condensed Consolidated Statements of Stockholders’ Deficit - Six Months Ended June 30, 2016 and 2015	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	47
PART II. OTHER INFORMATION		48
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 6.	Exhibits	49
SIGNATURES		50
EXHIBIT INDEX		51

In this report, “West,” the “Company,” “we,” “us” and “our” refers to West Corporation and subsidiaries.

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

West Corporation and subsidiaries

Omaha, Nebraska

We have reviewed the accompanying condensed consolidated balance sheet of West Corporation and subsidiaries (the “Company”) as of June 30, 2016, and the related condensed consolidated statements of income and comprehensive income for the three-month and six-month periods ended June 30, 2016 and 2015 and of cash flows and stockholders’ deficit for the six-month periods ended June 30, 2016 and 2015. These interim financial statements are the responsibility of the Company’s management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to such condensed consolidated interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of West Corporation and subsidiaries as of December 31, 2015, and the related consolidated statements of income, comprehensive income, stockholders’ deficit, and cash flows for the year then ended (not presented herein); and in our report dated February 18, 2016, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2015 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ Deloitte & Touche LLP

Omaha, Nebraska

August 4, 2016

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WEST CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
REVENUE	$	582,397		$	571,891		$	1,153,176		$	1,137,381
COST OF SERVICES		249,426			245,266			490,438			484,967
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		209,870			210,192			430,713			425,288
OPERATING INCOME		123,101			116,433			232,025			227,126
OTHER INCOME (EXPENSE):
Interest expense, net of interest income of $20, $173, $290    and $199		(37,712	)		(38,433	)		(76,195	)		(77,275	)
Accelerated amortization of deferred financing costs		(35,235	)		—			(35,235	)		—
Other, net		1,214			(100	)		174			3,739
Other expense		(71,733	)		(38,533	)		(111,256	)		(73,536	)
INCOME FROM CONTINUING OPERATIONS BEFORE    INCOME TAX EXPENSE		51,368			77,900			120,769			153,590
INCOME TAX EXPENSE ATTRIBUTED TO CONTINUING    OPERATIONS		18,389			28,677			43,235			55,733
INCOME FROM CONTINUING OPERATIONS		32,979			49,223			77,534			97,857
INCOME FROM DISCONTINUED OPERATIONS, NET OF    INCOME TAXES		—			358			—			32,224
NET INCOME	$	32,979		$	49,581		$	77,534		$	130,081
EARNINGS PER COMMON SHARE—BASIC:
Continuing Operations	$	0.40		$	0.59		$	0.94		$	1.17
Discontinued Operations		—			—			—			0.38
Total Earnings Per Common Share—Basic	$	0.40		$	0.59		$	0.94		$	1.55
EARNINGS PER COMMON SHARE—DILUTED:
Continuing Operations	$	0.39		$	0.58		$	0.92		$	1.14
Discontinued Operations		—			—			—			0.37
Total Earnings Per Common Share—Diluted	$	0.39		$	0.58		$	0.92		$	1.51
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic Common		82,598			83,394			82,874			83,758
Diluted Common		84,281			85,592			84,425			85,920
DIVIDENDS DECLARED:
Dividends declared per share	$	0.225		$	0.225		$	0.45		$	0.45

The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).

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WEST CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(AMOUNTS IN THOUSANDS)

(UNAUDITED)

	Three Months Ended June 30,					Six Months Ended June 30,
	2016			2015		2016			2015
Net income	$	32,979		$	49,581	$	77,534		$	130,081
Foreign currency translation adjustments, net of tax    of $4,779,  ($4,762), $3,010 and $12,371		(8,571	)		8,171		(5,398	)		(21,718	)
Comprehensive income	$	24,408		$	57,752	$	72,136		$	108,363

The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).

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WEST CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS)

(UNAUDITED)

	June 30, 2016			December 31, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	223,415		$	182,338
Trust and restricted cash		17,205			19,829
Accounts receivable, net of allowance of $7,380 and $7,270		392,164			373,087
Income taxes receivable		—			19,332
Prepaid assets		52,279			43,093
Deferred expenses		54,130			65,781
Other current assets		27,020			22,040
Assets held for sale		—			17,672
Total current assets		766,213			743,172
PROPERTY AND EQUIPMENT:
Property and equipment		1,096,009			1,053,678
Accumulated depreciation and amortization		(757,383	)		(718,834	)
Total property and equipment, net		338,626			334,844
GOODWILL		1,920,707			1,915,690
INTANGIBLE ASSETS, net of accumulated amortization of $619,867 and $583,623		342,739			370,021
OTHER ASSETS		178,316			191,490
TOTAL ASSETS	$	3,546,601		$	3,555,217
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES:
Accounts payable	$	78,513		$	92,935
Deferred revenue		152,397			161,828
Accrued expenses		227,867			219,234
Current maturities of long-term debt		37,918			24,375
Total current liabilities		496,695			498,372
LONG-TERM OBLIGATIONS, less current maturities		3,290,940			3,318,688
DEFERRED INCOME TAXES		103,062			104,222
OTHER LONG-TERM LIABILITIES		178,336			186,073
Total liabilities		4,069,033			4,107,355
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS’ DEFICIT
Common Stock $0.001 par value, 475,000 shares authorized, 85,707 and    85,459 shares issued and 82,615 and 83,367 shares outstanding		86			85
Additional paid-in capital		2,210,910			2,193,193
Retained deficit		(2,568,068	)		(2,607,415	)
Accumulated other comprehensive loss		(78,134	)		(72,736	)
Treasury stock at cost (3,092 and 2,092 shares)		(87,226	)		(65,265	)
Total stockholders’ deficit		(522,432	)		(552,138	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	3,546,601		$	3,555,217

The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).

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WEST CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(AMOUNTS IN THOUSANDS)

(UNAUDITED)

	For the Six Months Ended
	June 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	77,534		$	130,081
Adjustments to reconcile net income to net cash flows from operating activities:
Income from discontinued operations, net of income taxes		—			(32,224	)
Depreciation		57,458			54,194
Amortization		39,944			39,469
Provision for share-based compensation		13,841			11,411
Deferred income tax (benefit) expense		(3,755	)		2,202
Amortization of deferred financing costs		44,053			10,009
Increase in acquisition contingent consideration		644			—
(Gain) loss on sale of property and equipment		(12,607	)		220
Changes in operating assets and liabilities
Accounts receivable		(13,957	)		(20,977	)
Other assets		6,852			(23,675	)
Accounts payable		(10,830	)		18,812
Accrued wages and benefits		4,168			(3,741	)
Accrued interest		(8,420	)		(19,524	)
Other liabilities and income tax payable		2,560			(9,733	)
Net cash flows from continuing operating activities		197,485			156,524
Net cash flows from discontinued operating activities		—			(6,962	)
Total net cash flows from operating activities		197,485			149,562
CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisitions		(9,745	)		(17,296	)
Purchases of property and equipment		(73,864	)		(64,864	)
Proceeds from the sale of property and equipment		38,368			—
Other		2,657			(1,561	)
Net cash flows from continuing investing activities		(42,584	)		(83,721	)
Net cash flows from discontinued investing activities		—			269,540
Total net cash flows from investing activities		(42,584	)		185,819
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayments on long-term obligations		(2,286,906	)		(16,246	)
Proceeds from term loan facilities		1,780,000			—
Proceeds from issuance of notes		400,000			—
Proceeds from revolving credit facilities		85,000			139,000
Payments on revolving credit facilities		(10,000	)		(324,000	)
Payment of deferred financing and other debt-related costs		(25,273	)		(234	)
Proceeds from stock options and ESPP shares including excess tax benefits		3,927			8,462
Dividends paid		(37,333	)		(37,767	)
Repurchase of common stock		(21,961	)		(59,957	)
Net cash flows from continuing financing activities		(112,546	)		(290,742	)
Net cash flows from discontinued financing activities		—			—
Total net cash flows from financing activities		(112,546	)		(290,742	)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		(1,278	)		(1,208	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		41,077			43,431
CASH AND CASH EQUIVALENTS, Beginning of period		182,338			115,061
CASH AND CASH EQUIVALENTS, End of period	$	223,415		$	158,492

The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).

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WEST CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)

(UNAUDITED)

	Common Shares			Common Stock		Additional Paid-in Capital			Retained Deficit			Accumulated Other Comprehensive Loss			Treasury Stock			Total Stockholders’ Deficit
BALANCE, January 1, 2016		83,366,888		$	85	$	2,193,193		$	(2,607,415	)	$	(72,736	)	$	(65,265	)	$	(552,138	)
Net income										77,534									77,534
Dividends declared (cash dividend of    $0.45 per share)										(38,187	)								(38,187	)
Foreign currency translation adjustment,    net													(5,398	)					(5,398	)
Purchase of stock at cost		(1,000,000	)													(21,961	)		(21,961	)
Executive Deferred Compensation Plan    activity		12,964					1,522												1,522
Shares issued from the Employee Stock    Purchase Plan		182,285			1		3,459												3,460
Stock options exercised including related    tax benefits		29,475					649												649
Issuance of shares		23,975					(63	)											(63	)
Share-based compensation							12,150												12,150
BALANCE, June 30, 2016		82,615,587		$	86	$	2,210,910		$	(2,568,068	)	$	(78,134	)	$	(87,226	)	$	(522,432	)
BALANCE, January 1, 2015		84,179,806		$	84	$	2,155,864		$	(2,772,775	)	$	(37,506	)	$	(5,308	)	$	(659,641	)
Net income										130,081									130,081
Dividends declared (cash dividend of    $0.45 per share)										(38,369	)								(38,369	)
Foreign currency translation adjustment,    net													(21,718	)					(21,718	)
Purchase of stock at cost		(2,000,000	)													(59,957	)		(59,957	)
Executive Deferred Compensation Plan    activity		49,307					4,042												4,042
Shares issued from the Employee Stock    Purchase Plan		131,865					3,745												3,745
Stock options exercised including related    tax benefits		251,943		1			5,631												5,632
Issuance of shares		16,042					(198	)											(198	)
Share-based compensation							10,461												10,461
BALANCE, June 30, 2015		82,628,963		$	85	$	2,179,545		$	(2,681,063	)	$	(59,224	)	$	(65,265	)	$	(625,922	)

The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited).

8

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. ORGANIZATION, CONSOLIDATION AND PRESENTATION OF FINANCIAL STATEMENTS

Business Description: West Corporation (the “Company” or “West”) is a global provider of technology-enabled communication services. “We,” “us” and “our” also refer to West and its consolidated subsidiaries, as applicable. We offer a broad range of communication and network infrastructure solutions that help manage or support essential communications. These solutions include unified communications services, safety services, interactive services such as automated notifications, specialized agent services and telecom services.

The scale and processing capacity of our technology platforms, combined with our expertise in managing multichannel interactions, enable us to provide reliable, high-quality, mission-critical communications designed to maximize return on investment for our clients and help them build smarter, more meaningful connections. We are dedicated to delivering and improving upon new channels, new capabilities and new choices for how businesses and consumers collaborate, connect and transact.

Our clients include Fortune 1000 companies, along with small and medium enterprises in a variety of industries, including telecommunications, retail, financial services, public safety, education, technology and healthcare. We have sales and/or operations in the United States, Canada, Europe, the Middle East, Asia-Pacific, Latin America and South America.

Our Services

· Unified Communications Services. We provide our clients with a range of integrated unified communications services. We offer our clients a complete cloud-based unified communications solution which consists of enterprise voice, conferencing and collaboration, network management, unified messaging and presence, contact center and client application integration. We combine reliable technologies with experience and flexibility to provide solutions that are easy to use and scalable for every client’s specific needs. Our products and services can improve many aspects of business by enabling personalized engagement, meetings anywhere, enhanced productivity and immersive communication experiences.

·Telecom Services. We provide local and national tandem switching services that facilitate an efficient exchange of network traffic between originating and terminating networks throughout the U.S. We connect people and unite networks by delivering interconnection services for all types of providers, including wireless, wireline, cable and voice over internet protocol (“VoIP”). We operate a next-generation technology-agnostic national network providing a cost effective means for time-division multiplexing to internet protocol (“IP”) conversion for IP networks that require access to the public switched telephone network. We provide carrier-grade interconnections that reduce cost and merge traditional telecom, mobile and IP technologies onto a common, efficient backbone. Telecom Services also provides much of the telecommunications network infrastructure that supports our conferencing and collaboration business.

·Safety Services. We provide 9-1-1 call routing, call location creation and delivery, and call delivery and accuracy compliance tools to the majority of U.S.-based telecommunications service providers. We provide technology solutions for wireline and wireless carriers; satellite, telematics and cable operators; VoIP providers; alarm/security companies; as well as public safety, government agencies and enterprises. West services the public and personal safety ecosystem with networks and an understanding of safety needs. We continue to innovate and develop next-generation industry solutions that match new technologies. We connect people to first responders—firefighters, law enforcement, ambulance services, and the telecommunicators answering calls in public safety answering points. Our seamless and fault tolerant infrastructure along with our data management experience and expertise are the underpinning for individuals’ requests for assistance that require the ability to be located, and have calls routed and delivered to the correct public safety agency.

·Interactive Services. We design, integrate, deliver, manage and optimize applications, services, platforms and networks that aim to create a better customer experience, strengthen customer engagement and drive efficiencies for our clients. We specialize in cloud-based communication solutions that drive a smart, personalized and convenient customer experience, including interactive voice response (“IVR”) self-service, proactive notifications and mobility, cloud contact center and comprehensive professional services. Our technology uses an omni-channel approach that brings together voice, text, email, push notification, fax, video, web, social media, hosted contact center and mobile to create a connected customer experience across channels. Our high-capacity and high-availability platform can be deployed in a number of ways and integrated with other inbound and outbound communication channels. In most cases, our technology also directly interfaces with our clients’ internal systems, including customer relationship management, private branch exchange and enterprise reporting platforms.

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WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

·Specialized Agent Services. We provide our clients a combination of highly skilled subject matter experts with proven analytics and technology to provide solutions for the fast-growing healthcare market. We believe we are the leading provider of healthcare advocacy products and services to employees of large organizations. We also help health insurance payers, third-party administrators and self-insured employers improve cash flow and reduce healthcare costs by identifying and recovering overpaid and third-party liability claims. Additionally, we offer business-to-business sales across multiple vertical markets with a focus on increasing our clients’ market share and improving customer relationships.

Our five operating segments (Unified Communications Services, Telecom Services, Safety Services, Interactive Services and Specialized Agent Services) are aggregated into four reportable segments as follows:

· Unified Communications Services, which includes conferencing and collaboration services, unified communications as a service (“UCaaS”) solutions and telecom services;

· Safety Services, including 9-1-1 network services, 9-1-1 telephony systems and services, 9-1-1 solutions for enterprises and database management;

· Interactive Services, including proactive notifications and mobility, IVR self-service, cloud contact center and professional services; and

· Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation services.

Discontinued Operations—On March 3, 2015, we divested several of our agent-based businesses, including our consumer facing customer sales and lifecycle management, account services and receivables management businesses, for $275.0 million in cash. We completed the divestiture pursuant to a purchase agreement executed January 7, 2015 and in accordance with a plan approved by our Board of Directors on December 30, 2014.

Basis of Consolidation—The unaudited condensed consolidated financial statements include the accounts of West and its wholly-owned subsidiaries and reflect all adjustments (all of which are normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the year ended December 31, 2015. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Our results for the three and six months ended June 30, 2016 are not necessarily indicative of what our results will be for other interim periods or for the full fiscal year.

Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition—Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, price is fixed or determinable and collectability is reasonably assured. Amounts billed in advance of providing service are deferred and recorded as deferred revenue or other long-term liabilities on the balance sheet until service has been provided.

Dividend—We funded the dividends paid in 2015 and the first six months of 2016 with cash generated by our operations and we anticipate funding future dividends with cash generated by our operations. The declaration and payment of all future dividends, if any, will be at the sole discretion of our Board of Directors. On each of March 3, 2016 and May 26, 2016, we paid a $0.225 per common share quarterly dividend. The total dividend paid was approximately $18.8 million and $18.6 million to stockholders of record as of the close of business on February 22, 2016 and May 16, 2016, respectively. On August 1, 2016, we announced a $0.225 per common share quarterly dividend. The dividend is payable September 1, 2016 to stockholders of record as of the close of business on August 22, 2016.

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WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Share Repurchase—Under a share repurchase program approved by the Company’s Board of Directors during the first quarter of 2016 authorizing the repurchase of up to an aggregate of $75 million of outstanding common stock, the Company purchased 1,000,000 shares of common stock through the open market during the first six months of 2016 for an aggregate purchase price of approximately $22.0 million, which was funded with cash on hand.

Assets Held for Sale—On June 21, 2016, we completed the sale of land, buildings and improvements which were previously classified as held for sale and primarily used by the agent-based businesses we divested in 2015.  Proceeds from the sale were $38.8 million, excluding related expenses. In connection with this sale, we realized a pre-tax gain of approximately $19.0 million.  We also entered into a twelve year leaseback agreement for one of the buildings.  This lease is classified as an operating lease and the related $6.1 million gain, included in the $19.0 million realized gain, is being deferred and will be recognized over the lease term.

Recently Implemented Accounting Pronouncements—In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires capitalized debt issuance costs to be presented as a reduction to the carrying value of debt instead of being classified as a deferred charge, as previously required. This ASU became effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015, and interim periods within those annual periods. We adopted this guidance as of January 1, 2016, and as a result have recast the December 31, 2015 consolidated balance sheet to conform to the current period presentation. The adoption of this standard reduced previously presented other assets and long-term debt by $57.1 million each, based upon the balance of unamortized debt issuance costs relating to our senior secured term loan facilities and senior notes recorded as of December 31, 2015.

In November 2015, the FASB issued ASU 2015-017, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which changes the presentation of deferred income taxes in the balance sheet. Under the new guidance, deferred tax assets and liabilities will be classified as non-current in the balance sheet. The guidance is effective for annual periods beginning after December 15, 2016. The new guidance allows for prospective or retrospective application and early adoption is permitted. We adopted this guidance as of April 1, 2016, and elected retrospective application recasting the December 31, 2015 consolidated balance sheet to conform to the current period presentation. The adoption of this standard reduced previously presented accrued expenses and increased deferred income taxes by $1.7 million each, as of December 31, 2015.

Recent Accounting Pronouncements—In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326).  The amendments in this update will require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented at the net amount expected to be collected. This amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018.  Adoption of this update is required through a cumulative-effect adjustment to retained deficit as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of assessing the impact of this standard on its financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718). The amendments in this update will simplify several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of assessing the impact of this standard on its financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this update will increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 is required to be applied with a modified retrospective approach to each prior reporting period presented.  The Company is in the process of assessing the impact of this standard on its financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The new standard will become effective for the Company beginning with the first quarter of 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is in the process of assessing the impact and adoption transition options of this standard on its financial statements.

11

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

2. DISCONTINUED OPERATIONS

On March 3, 2015, we divested several of our agent-based businesses for $275.0 million in cash. The divestiture resulted in a 2015 gain of $48.2 million on an after-tax basis which was included within income from discontinued operations. The $48.2 million gain included a $21.6 million tax benefit in 2015 due to the deferred tax benefit associated with excess outside basis over financial reporting basis.

The following table summarizes the results of discontinued operations for the three and six months ended June 30, 2015:

(Amounts in thousands)	Three months ended June 30, 2015		Six months ended June 30, 2015
Revenue	$	—	$	102,251
Operating income		551		3,851
Gain on disposal		—		48,556
Income before income tax expense		551		52,234
Income tax expense		193		20,010
Income from discontinued operations	$	358	$	32,224

There was no income or loss from discontinued operations during the first half of 2016.

We have agreed to indemnify the buyer, up to the full purchase price, with respect to the equity interests of the companies we sold, title to the equity and assets sold and the authority of the Company to sell the equity and assets. The Company has also agreed to indemnify the buyer for breaches of other representations and warranties in the purchase agreement for up to $13.75 million in losses.

3. ACQUISITIONS

Synrevoice

On March 14, 2016, we completed the acquisition of substantially all of the assets of Synrevoice Technologies, Inc. (“Synrevoice”). Synrevoice, based in Markham, Ontario, is a provider of messaging and notification services to the K-12 education and commercial markets in North America. The purchase price was approximately $9.3 million and was funded with cash on hand. This business is included in the Interactive Services reportable segment.

In the preliminary purchase price allocation, approximately $4.9 million was allocated to goodwill, which is partially deductible for income tax purposes, and $6.5 million was allocated to other intangible assets. The primary factors that contributed to a purchase price resulting in the recognition of goodwill for the acquisition of Synrevoice were the expansion of our interactive services further into the education vertical market and anticipated synergies which are expected to result in a more efficient and faster growing K-12 business in North America.

ClientTell

On November 2, 2015, we completed the acquisition of ClientTell, Inc., and ClientTell Labs, LLC (collectively “ClientTell”), which provide automated notifications and lab reporting services in the healthcare industry. The purchase price was approximately $38.4 million in cash, plus assumed liabilities, and was funded with cash on hand. Up to an additional $10.5 million in cash may be paid based on achievement of certain financial objectives during the five years ending December 31, 2020. The fair value of this contingent consideration arrangement was $5.4 million as of the date of acquisition and $5.3 million, net of a $1.0 million payment made in the first half of 2016, as of June 30, 2016.

Approximately $15.0 million of the purchase price was allocated to goodwill and $26.3 million to other intangible assets. The goodwill is deductible for income tax purposes. The primary factors that contributed to a purchase price resulting in the recognition of goodwill for the acquisition of ClientTell were the expansion of our interactive services further into the healthcare vertical market, anticipated synergies and other intangibles that do not qualify for separate recognition. This business has been integrated into the Interactive Services reportable segment.

12

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Magnetic North

On October 31, 2015, we completed the acquisition of Magnetic North Software Limited (“Magnetic North”) for approximately $39.2 million in cash net of cash acquired, plus assumed liabilities, which was funded with cash on hand. Magnetic North is a U.K.-based provider of inbound/outbound/blended, multi-channel customer engagement technology solutions with multi-media routing, advanced analytics and compliance functionality and integrated, hosted voice and unified communications platforms to customers throughout Europe, the Middle East and Africa (“EMEA”) and the Americas.

In the preliminary purchase price allocation, approximately $25.1 million was allocated to goodwill and $16.4 million to other intangible assets. The goodwill is not deductible for income tax purposes. The primary factors that contributed to a purchase price resulting in the recognition of goodwill for the acquisition of Magnetic North were its portfolio of complementary customer contact center and unified communications solutions, anticipated synergies and other intangibles that do not qualify for separate recognition. This business has been integrated into the Unified Communications Services reportable segment.

SharpSchool

Effective June 1, 2015, we completed the acquisition of substantially all of the assets of Intrafinity, Inc., doing business as SharpSchool (“SharpSchool”), a leading provider of website and content management system software-as-a-service solutions for the K-12 education market. The purchase price was approximately $17.2 million and was funded with cash on hand.

In the purchase price allocation, goodwill of $8.3 million, partially deductible for tax purposes under Canadian tax rules governing asset acquisitions, and finite-lived intangible assets of $9.1 million were recorded. The primary factors that contributed to a purchase price resulting in the recognition of goodwill for the acquisition of SharpSchool were the expansion of our interactive services further into the education vertical market and anticipated synergies which are expected to result in a more efficient and faster growing K-12 business for West. SharpSchool has been integrated into the Interactive Services reportable segment.

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the respective acquisition dates for Synrevoice and Magnetic North and the final fair value of assets acquired and liabilities assumed for ClientTell and SharpSchool.

(Amounts in thousands)	Synrevoice			ClientTell		Magnetic North		SharpSchool
Working Capital	$	(2,118	)	$	501	$	212	$	(1,042	)
Property and equipment		21			429		574		782
Other assets, net		—			2		—		77
Intangible assets		6,455			26,300		16,361		9,092
Goodwill		4,893			15,004		25,060		8,254
Total assets acquired		9,251			42,236		42,207		17,163
Non-current deferred taxes		—			—		3,050		—
Long-term liabilities		—			3,828		—		—
Total liabilities assumed		—			3,828		3,050		—
Net assets acquired	$	9,251		$	38,408	$	39,157	$	17,163

Acquisition costs incurred for prospective acquisitions and completed acquisitions for the three months ended June 30, 2016 and 2015 of $1.4 million and $0.8 million, respectively, are included in selling, general and administrative expenses.  Acquisition costs incurred for prospective acquisitions and completed acquisitions for the six months ended June 30, 2016 and 2015 of $2.5 million and $1.6 million, respectively, are included in selling, general and administrative expenses.

The excess of the acquisition costs over the fair value of the assets acquired and liabilities assumed for the purchase of Magnetic North and Synrevoice were assigned to goodwill based on preliminary estimates. We are in the process of completing the acquisition accounting for certain intangible assets and liabilities. The process of completing the acquisition accounting involves numerous time consuming steps for information gathering, verification and review. We expect to finalize this process within twelve months following the respective acquisition dates.

13

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Pro forma

The following unaudited pro forma financial information presents the combined results of operations as if the acquisitions of Synrevoice, ClientTell, Magnetic North, and SharpSchool (collectively, the acquirees) occurred as of the beginning of the period presented. The pro forma results contained in the table below include adjustments for amortization of acquired intangibles, finance and acquisition costs as well as related income taxes.

	Three Months Ended		Six Months Ended June 30,
	June 30, 2015		2016		2015
Revenue	$	579,541	$	1,154,081	$	1,153,098
Income from continuing operations	$	48,370	$	77,406	$	96,431
Income per common share from continuing operations—    basic	$	0.58	$	0.93	$	1.15
Income per common share from continuing operations—    diluted	$	0.57	$	0.92	$	1.12

The pro forma results above are not necessarily indicative of the operating results that would have actually occurred if the acquisitions had been in effect on the dates indicated, nor are they necessarily indicative of future results of operations.

Our acquisitions completed in 2016 and 2015 were included in the consolidated results of operations from their respective dates of acquisition and included revenue of $7.1 million and $14.4 million for the three and six months ended June 30, 2016, respectively, and $0.4 million for both the three and six months ended June 30, 2015. The net income impact of these acquisitions for the three and six months ended June 30, 2016 and 2015 was not material.

4. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the changes in the carrying amount of goodwill by reportable segment for the year ended December 31, 2015 and the six months ended June 30, 2016:

(Amounts in thousands)	Unified Communications Services			Safety Services		Interactive Services			Specialized Agent Services			Total
Balance at January 1, 2015	$	864,568		$	507,588	$	223,014		$	289,750		$	1,884,920
Acquisitions		24,579			—		23,221			—			47,800
Foreign currency translation adjustment		—			1,091		(44	)		(1,400	)		(353	)
Acquisition accounting adjustments		(15,365	)		—		(1,312	)		—			(16,677	)
Balance at December 31, 2015		873,782			508,679		244,879			288,350			1,915,690
Acquisitions		—			—		4,893			—			4,893
Acquisition accounting adjustments		481			—		(13	)		—			468
Foreign currency translation adjustments		(1,059	)		—		715			—			(344	)
Balance at June 30, 2016	$	873,204		$	508,679	$	250,474		$	288,350		$	1,920,707

Other intangible assets

Below is a summary of the major intangible assets for each identifiable intangible asset:

	As of  June 30, 2016
(Amounts in Thousands)	Acquired Cost		Accumulated Amortization			Net Intangible Assets
Client Relationships	$	656,459	$	(463,933	)	$	192,526
Technology & Patents		179,370		(104,087	)		75,283
Trade names and trademarks (finite-lived)		103,555		(34,297	)		69,258
Other intangible assets		23,222		(17,550	)		5,672
Total	$	962,606	$	(619,867	)	$	342,739

14

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	As of December 31, 2015
	Acquired Cost		Accumulated Amortization			Net Intangible Assets
Client Relationships	$	649,494	$	(440,163	)	$	209,331
Technology & Patents		178,027		(96,774	)		81,253
Trade names and trademarks (finite-lived)		103,398		(30,470	)		72,928
Other intangible assets		22,725		(16,216	)		6,509
Total	$	953,644	$	(583,623	)	$	370,021

Amortization expense for finite-lived intangible assets was $16.9million and $16.4 million for the three months ended June 30, 2016 and 2015, respectively, and $33.3 million and $33.0 million for the six months ended June 30, 2016 and 2015, respectively. Estimated amortization expense for the intangible assets noted above for 2016 and the next five years is as follows:

2016	$ 64.7 million
2017	$ 55.0 million
2018	$ 48.7 million
2019	$ 42.7 million
2020	$ 36.0 million
2021	$ 28.2 million

The acquisition of Synrevoice on March 14, 2016 included other intangible assets consisting of client relationships ($5.3 million, with a 12-year life amortization period), technology ($0.9 million, with a 2-year amortization period), non-compete agreements ($0.2 million, with a 3-year amortization period), and a trademark ($0.1 million, with a 2-year amortization period).

5. ACCRUED EXPENSES

Accrued expenses consisted of the following as of:

(Amounts in thousands)	June 30, 2016		December 31, 2015
Accrued wages	$	60,665	$	55,799
Accrued phone		52,515		42,549
Accrued other taxes (non-income related)		35,863		39,267
Interest payable		28,020		36,440
Acquisition obligation for a net operating loss    carryforward claim		4,670		5,536
Accrued employee benefit costs		3,622		3,970
Accrued lease expense		3,448		2,616
Outside commissions		2,132		1,673
Income taxes payable		1,688		—
Acquisition contingent consideration		1,103		2,075
Accrued licensing costs		693		2,418
Other current liabilities		33,448		26,891
	$	227,867	$	219,234

15

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

6. LONG-TERM OBLIGATIONS 

Long-term obligations are carried at amortized cost. Long-term obligations consisted of the following as of:

	June 30,			December 31,
(Amounts in thousands)	2016			2015
Senior Secured Term Loans due 2018	$	34,405		$	1,813,250
Accounts Receivable Securitization Facility		75,000			—
Senior Secured Term Loans due 2019		78,814			336,875
Senior Secured A Term Loans due 2021		650,000			—
Senior Secured B Term Loans due 2021		260,000			250,000
4 3/4% Senior Secured Notes due 2021		400,000			—
5 3/8% Senior Notes due 2022		1,000,000			1,000,000
Senior Secured B Term Loans due 2023		870,000			—
Unamortized value of debt issuance costs (1)		(39,361	)		(57,062	)
Net carrying value		3,328,858			3,343,063
Less: current maturities		(37,918	)		(24,375	)
Long-term obligations, net of debt issuance costs	$	3,290,940		$	3,318,688

(1) Includes the reclassification of debt issuance costs from “Other assets” as a result of the Company adopting ASU 2015-03. See Note 1.

Senior Secured Credit Facilities

Our term and revolving senior secured credit facilities (“Senior Secured Credit Facilities”) are governed by the Amended and Restated Credit Agreement dated as of October 5, 2010 (as amended from time to time, the “Credit Agreement”) among West Corporation, certain of our domestic subsidiaries, Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and the various lenders party thereto.  

On June 17, 2016 (the “Seventh Amendment Effective Date”), the Company, certain domestic subsidiaries of the Company, as subsidiary borrowers, Wells Fargo and the various lenders party thereto modified the Senior Secured Credit Facilities by entering into Amendment No. 7 to Amended and Restated Credit Agreement (the “Seventh Amendment”), amending the Credit Agreement.

The Seventh Amendment:

· extended the maturity of a portion of the existing A-1 term loans (“2019 Maturity Term Loans”), which mature July 1, 2019, to June 17, 2021 by converting such existing A-1 term loans into A-2 term loans (the “2021 Maturity A Term Loans”);

· extended the maturity of a portion of the existing B-10 term loans (the “2018 Maturity Term Loans”), which mature June 30, 2018, to June 17, 2023 by converting such existing B-10 term loans into B-12 term loans (the “2023 Maturity Term Loans”);

· extended the maturity of a portion of the existing revolving credit commitments to June 17, 2021 (the “Extended Revolving Credit Commitments”), with non-extending revolving credit commitments being terminated as of the Seventh Amendment Effective Date;

· provided for an increase of 2021 Maturity A Term Loans with incremental 2021 Maturity A Term Loans, which were added to and constitute a single class of term loans with the 2021 Maturity A Term Loans, such that the aggregate amount of 2021 Maturity A Term Loans (after giving effect to the incurrence of the incremental 2021 Maturity A Term Loans) is $650.0 million;

· provided for an increase of 2023 Maturity Term Loans with incremental 2023 Maturity Term Loans, which were added to and constitute a single class of term loans with the 2023 Maturity Term Loans, such that the aggregate amount of 2023 Maturity Term Loans (after giving effect to the incurrence of the incremental 2023 Maturity Term Loans) is $870.0 million;

16

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

· provided for an increase of Extended Revolving Credit Commitments with incremental revolving commitments, which constitute a single class of commitments with the Extended Revolving Credit Commitments and mature on June 17, 2021, such that the aggregate amount of Extended Revolving Credit Commitments (after giving effect to the incurrence of the incremental revolving commitments) is $300.0 million; 

· provided for new B-14 term loans (the “2021 Maturity B Term Loans”) in an aggregate amount of $260.0 million with a maturity date of June 17, 2021;

· provided for annual amortization (payable in quarterly installments) in respect of the 2023 Maturity Term Loans in an amount equal to 1.0% of the original aggregate principal amount of the 2023 Maturity Term Loans outstanding on the Seventh Amendment Effective Date until the maturity date, at which point all remaining outstanding 2023 Maturity Term Loans shall become due and payable;

· provided for annual amortization (payable in quarterly installments) in respect of the 2021 Maturity B Term Loans in an amount equal to 1.0% of the original aggregate principal amount of the 2021 Maturity B Term Loans outstanding on the Seventh Amendment Effective Date until the maturity date, at which point all remaining outstanding 2021 Maturity B Term Loans shall become due and payable;

· provided for annual amortization (payable in quarterly installments and based on the original aggregate principal amount of the 2021 Maturity A Term Loans outstanding on the Seventh Amendment Effective Date) in respect of the 2021 Maturity A Term Loans payable at a 2.5% annual rate for the three fiscal quarters in the nine month period ending March 31, 2017, a 5.0% annual rate for the four fiscal quarters in the year ending March 31, 2018, a 7.5% annual rate for the four fiscal quarters in the year ending March 31, 2019, a 10.0% annual rate for the four fiscal quarters in the year ending March 31, 2020 and a 2.5% quarterly rate thereafter until the maturity date, at which point all remaining outstanding 2021 Maturity A Term Loans shall become due and payable;

· provided for an interest rate margin applicable to the 2021 Maturity A Term Loans and Extended Revolving Credit Commitments that is based on the Company’s total leverage ratio and ranges from 1.75% to 2.50% for LIBOR rate loans (2.50%, as of June 30, 2016), subject to a 0.0% interest rate floor for the LIBOR component of LIBOR rate loans, and from 0.75% to 1.50% for base rate loans (1.50%, as of June 30, 2016);

· provided for an interest rate margin applicable to the 2023 Maturity Term Loans equal to 3.00% for LIBOR rate loans and 2.00% for base rate loans, subject to a 0.75% interest rate floor for the LIBOR component of LIBOR rate 2023 Maturity Term Loans, and subject to a 1.75% interest rate floor for the base rate component of base rate 2023 Maturity Term Loans; and

· provided for an interest rate margin applicable to the 2021 Maturity B Term Loans equal to 2.75% for LIBOR rate loans, and 1.75% for base rate loans, subject to a 0.75% interest rate floor for the LIBOR component of LIBOR rate 2021 Maturity B Term Loans, and subject to a 1.75% interest rate floor for the base rate component of base rate 2021 Maturity B Term Loans.

Proceeds of the 2021 Maturity A Term Loans, 2023 Maturity Term Loans and 2021 Maturity B Term Loans were used on the Seventh Amendment Effective Date, together with proceeds from the senior secured notes offering described below, to partially prepay existing non-extending 2019 Maturity Term Loans and existing non-extending 2018 Maturity Term Loans and to fully prepay existing non-extending B-11 term loans due 2021 (“B-11 Term Loans”).

In connection with the Seventh Amendment, we incurred refinancing expenses of approximately $20.2 million, which will be amortized into interest expense over the remaining life of the Senior Secured Credit Facilities. In addition, we recorded accelerated amortization of deferred financing costs of $33.9 million in connection with the terminated non-extended revolving credit commitments and Extended Revolving Credit Commitments, partial repayment of existing non-extending 2019 Maturity Term Loans and 2018 Maturity Term Loans and the prepayment in full of B-11 Term Loans.

During the six months ended June 30, 2016, in addition to the payments described above, we repaid $25.9million on our 2018 Maturity Term Loans, based on an excess cash flow calculation provision in the Credit Agreement and a $75.0 million voluntary prepayment. Also, during the six months ended June 30, 2016, we repaid our scheduled amortization of $5.4 million and $0.6million on the 2019 Maturity Term Loans and the B-11 Term Loans, respectively.

17

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

2021 Senior Secured Notes

On June 17, 2016, we issued $400.0 million aggregate principal amount of 4.750% senior secured notes that mature on July 15, 2021 (the “2021 Senior Secured Notes”).  The 2021 Senior Secured Notes were offered in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended.  We used the net proceeds from the issue and the sale of the 2021 Senior Secured Notes, together with proceeds from the Seventh Amendment, to partially repay certain outstanding term loans under our Senior Secured Credit Facilities as described above.

At any time prior to July 15, 2018, we may redeem all or a part of the 2021 Senior Secured Notes at a redemption price equal to 100% of the principal amount of 2021 Senior Secured Notes redeemed plus the applicable premium (as defined in the indenture governing the 2021 Senior Secured Notes) as of, and accrued and unpaid interest, if any, to, the date of redemption, subject to the rights of holders of 2021 Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date.

On or after July 15, 2018, we may redeem the 2021 Senior Secured Notes, in whole or in part, at the redemption prices (expressed as percentages of principal amount of the 2021 Senior Secured Notes to be redeemed) set forth below, plus accrued and unpaid interest thereon, if any, to the applicable date of redemption, subject to the right of holders of record of 2021 Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date, if redeemed during the 12-month period beginning on July 15 of each of the years indicated below:

Year	Percentage
2018		102.375%
2019		101.188%
2020 and thereafter		100.000%

In connection with the 2021 Senior Secured Notes, we incurred refinancing expenses of approximately $6.0 million, which will be amortized into interest expense over the remaining life of the 2021 Senior Secured Notes.

Securitization Facility

At June 30, 2016 and December 31, 2015, the principal balance outstanding on the revolving trade accounts receivable financing facility among the Company, certain of our originating domestic subsidiaries, West Receivables Holding LLC, West Receivables LLC and Wells Fargo (“Securitization Facility”) was $75.0 million and $0, respectively. We used the $75.0 million of proceeds from the Securitization Facility to prepay $75.0 million on the 2018 Maturity Term Loans. The highest outstanding balance during the six months ended June 30, 2016 and year ended December 31, 2015 was $75.0 million and $185.0 million, respectively.

At June 30, 2016, we were in compliance with our financial debt covenants.

7. FAIR VALUE DISCLOSURES

FASB guidance establishes a three-level fair value hierarchy based upon assumptions (inputs) used to price assets or liabilities. The three levels of inputs used to measure fair value are as follows:

·Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

· Level 2 – Observable inputs other than those included within Level 1, such as quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets, and

· Level 3 – Unobservable inputs for assets or liabilities reflecting our assumptions and best estimate of what inputs market participants would use in pricing the asset or liability.

The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value.

18

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Trading Securities (Asset). The assets held in the West Corporation Executive Retirement Savings Plan and the West Corporation Nonqualified Deferred Compensation Plan represent mutual funds, invested in debt and equity securities, classified as trading securities in accordance with the provisions of Accounting Standards Codification 320 Investments—Debt and Equity Securities considering the employee’s ability to change the investment allocation of their deferred compensation at any time. Quoted market prices are available for these securities in an active market; therefore the fair value of these securities is determined by Level 1 inputs.

We evaluate classification within the fair value hierarchy each reporting period. There were no transfers between any levels of the fair value hierarchy during the periods presented.

The carrying amount of the trading securities of $62.3 million and $60.1 million at June 30, 2016 and December 31, 2015, respectively, were equal to the quoted prices in active markets for identical assets.

The fair value of our 2021 Senior Secured Notes, issued on June 17, 2016, based on market quotes, which we determined to be Level 2 inputs, at June 30, 2016 was approximately $399.0 million, compared to the carrying amount of $400.0 million. The fair value of our 2022 Senior Notes based on market quotes, which we determined to be Level 2 inputs, at June 30, 2016 and December 31, 2015 was approximately $932.5 million and $862.5 million, respectively, compared to the carrying amount of $1.0 billion.

The fair value of our senior secured term loan facilities was estimated using current market quotes on comparable debt securities from various financial institutions. All of the inputs used to determine the fair market value of our senior secured term loan facilities are Level 2 inputs and obtained from an independent source. The fair value of our senior secured term loan facilities at June 30, 2016 was approximately $1,161.0 million compared to the carrying amount of $1,164.4 million. The fair value of our senior secured term loan facilities at December 31, 2015 was approximately $2,033.2 million compared to the carrying amount of $2,063.3 million.

The fair value of our senior secured A term loans based on recent trading activity, which we determined to be Level 2 inputs, at June 30, 2016 was approximately $715.7 million compared to the carrying amount of $728.8 million. The fair value of our 2019 Maturity Term Loans at December 31, 2015, was approximately $323.4 million compared to the carrying amount of $336.9 million.

A Level 3 liability of $5.3 million and $5.6 million was recognized as of June 30, 2016 and December 31, 2015, respectively, for contingent consideration related to the acquisition of ClientTell (see Note 3). The liability was measured at fair value using a Monte Carlo simulation approach and was based on estimated revenues and the present value of related payments over the earn-out period.

8. STOCK-BASED COMPENSATION

2006 Executive Incentive Plan

Stock options granted under the West Corporation 2006 Executive Incentive Plan (“2006 EIP”) prior to 2012 vest over a period of five years, with 20% of the stock option becoming exercisable on each of the first through fifth anniversaries of the grant date. Stock options granted under the 2006 EIP in 2012 and 2013 vest over a period of four years, with 25% of the stock option becoming exercisable on each of the first through fourth anniversaries of the grant date. Once an option has vested, it generally remains exercisable until the tenth anniversary of the grant date so long as the participant continues to provide services to the Company.

2013 Long-Term Incentive Plan

Prior to the completion of our initial public offering, we adopted, and subsequently amended, the 2013 Long-Term Incentive Plan (as amended, “2013 LTIP”), which is intended to provide our officers, employees, non-employee directors and consultants with added incentive to remain employed by or perform services for us and align such individuals’ interests with those of our stockholders. Under the terms of the 2013 LTIP, 8,500,000 shares of common stock were made available for stock options, restricted stock or other types of equity awards, subject to adjustment for stock splits and other similar changes in capitalization. The number of available shares under the 2013 LTIP is reduced by the aggregate number of shares underlying each award. To the extent that shares subject to an outstanding award granted under the 2013 LTIP are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or by reason of the settlement of such award in cash, then such shares will again be available under the 2013 LTIP (excluding shares withheld by the Company to pay withholding taxes related to an award under the 2013 LTIP).

19

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Stock options granted under the 2013 LTIP vest over a period of four years, with 25% of the stock option becoming exercisable on each of the first through fourth anniversaries of the grant date. Once an option has vested, it generally remains exercisable until the tenth anniversary of the grant date so long as the participant continues to provide services to the Company. Restricted stock granted under the 2013 LTIP, which is time-vested, vests over a period of three or four years (excluding awards to directors which vest over a six to twelve month period), with a ratable portion of the restricted stock award vested on each anniversary of the grant date until fully vested, unless earlier forfeited as a result of termination of service to the Company prior to the applicable vesting date. Dividends are payable in respect of shares of unvested restricted stock either at the time the dividend is paid to stockholders or upon vesting of the restricted stock in accordance with the terms of the applicable restricted stock award agreement.

2006 Executive Incentive Plan and 2013 Long-Term Incentive Plan – Stock Options

The following table presents the stock or stock option activity under the 2006 EIP and 2013 LTIP for the six months ended June 30, 2016.

				Options Outstanding
	Stock or Options Available for Grant			Number of Shares			Weighted Average Exercise Price
Balance at January 1, 2016		5,868,283			2,280,030		$	27.08
Options exercised		—			(29,475	)		13.12
Options canceled or forfeited (2013 LTIP)		9,074			(9,074	)		23.40
Options canceled or forfeited (2006 EIP)		—			(17,807	)		33.27
Restricted stock granted		(625,389	)		—			—
Restricted stock canceled		52,604			—			—
Balance at June 30, 2016		5,304,572			2,223,674		$	27.23

At June 30, 2016, we expect that approximately 2.2 million options granted and outstanding will vest.

At June 30, 2016, the intrinsic value of options vested and exercisable was approximately $0.3 million. The aggregate intrinsic value of options outstanding at June 30, 2016 was approximately $0.3 million. The aggregate intrinsic value of options outstanding, vested and expected to vest at June 30, 2016 was approximately $0.3 million.

The following table presents information regarding the options granted under the 2006 EIP and 2013 LTIP at June 30, 2016:

Outstanding							Exercisable
Range of Exercise Prices	Number of Options		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price
$0.00 - $13.12		39,661		0.43	$	13.12		39,661	$	13.12
13.13 - 28.88		1,674,014		5.98		25.10		1,481,267		25.30
28.89 - 50.88		492,626		5.08		33.81		492,626		33.81
50.89 - 84.80		17,373		4.15		77.48		17,373		77.48
$0.00 - $84.80		2,223,674		5.67	$	27.23		2,030,927	$	27.57

No stock options have been awarded since April 1, 2014.

Restricted Shares, Restricted Stock Units and Performance-Based Restricted Stock Units

During the six months ended June 30, 2016, pursuant to agreements with our non-employee directors who are not affiliated with our former sponsors, we issued 17,889 shares of common stock with an aggregate fair value of approximately $400,000. These shares vest on the six-month anniversary of the date of grant in the case of initial awards and on the one-year anniversary for all other awards.

20

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

During the six months ended June 30, 2016, we issued 408,000 restricted stock awards and restricted stock units to certain key employees. These awards vest ratably with 25% of the award vesting on each of the first through fourth anniversaries of the award date. The fair value of these awards at the date of grant was approximately $9.2 million and will be recognized over the remaining vesting period of approximately 3.7 years as of June 30, 2016.

During the six months ended June 30, 2016, we issued 199,500 performance-based restricted stock units to certain key executives. Each performance-based restricted stock unit represents a contingent right to receive between zero and 1.75 shares of West common stock. These performance-based restricted stock units will vest based on the Company’s total shareholder return (“TSR”) percentile ranking over the applicable performance period as compared to the TSR of companies included in the Russell 2000 on both the first and last day of the performance period, which began on March 1, 2016 and ends on February 28, 2019. The fair value of these awards at the date of grant was approximately $4.5 million and will be recognized over the remaining vesting period of approximately 2.7 years as of June 30, 2016.

2013 Employee Stock Purchase Plan

During the fourth quarter of 2013, we implemented the 2013 Employee Stock Purchase Plan (“ESPP”), under which the sale of 1.0 million shares of our common stock has been authorized and reserved. On January 28, 2016 the Board approved an amendment to the ESPP to increase the number of shares available under the ESPP by an additional 1.0 million shares of common stock. The amendment was approved by a vote of the stockholders at our May 17, 2016 annual meeting.  Employees may designate up to 50% of their annual compensation for the purchase of stock, subject to a per person limit of 2,000 shares in any offering period or calendar year. The price for shares purchased under the ESPP is 85% of the market closing price on the last day of the quarterly purchase period. No employee will be authorized to purchase common stock through the ESPP if, immediately after the purchase, the employee (or any other person whose stock would be attributed to such employee under U.S. tax law) would own stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any parent of the Company or any subsidiary. In addition, no participant will be entitled to purchase stock under the ESPP at a rate which, when aggregated with his or her rights to purchase stock under all other employee stock purchase plans of the Company and its subsidiaries, exceeds $25,000 in fair market value, determined as of the date of grant (or such other limit as may be imposed by U.S. tax law), for each calendar year in which any option granted to the participant under any such plans is outstanding at any time. During the six months ended June 30, 2016, 182,285 shares were issued under the ESPP. As of June 30, 2016, 739,681 shares had been issued under the ESPP since the plan’s inception.  For the three and six months ended June 30, 2016 and 2015, we recognized compensation expense for this plan of $0.3 million and $0.7 million, respectively.

Share-Based Compensation Expense

For the three and six months ended June 30, 2016, share-based compensation expense was $6.2 million and $13.8 million, respectively. For the three and six months ended June 30, 2015, share-based compensation expense was $6.0 million and $11.4 million, respectively.

At June 30, 2016 and 2015, there was approximately $0.7 million and $4.7 million, respectively, of unrecorded and unrecognized compensation expense, adjusted for estimated forfeitures, related to unvested share-based compensation on stock options under the 2006 EIP and 2013 LTIP, which will be recognized over the remaining vesting period of approximately 1.3 years as of June 30, 2016.

At June 30, 2016 and 2015, there was approximately $45.5 million and $38.0 million, respectively, of unrecorded and unrecognized compensation expense, related to unvested share-based compensation on restricted stock under the 2013 LTIP, which will be recognized over the remaining vesting period of approximately 2.6 years as of June 30, 2016.

21

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

9. EARNINGS PER SHARE 

Diluted earnings per share reflects the potential dilution that could result if options or other contingently issuable shares were exercised or converted into common stock and notional shares from the Nonqualified Deferred Compensation Plan were granted. Diluted earnings per common share assumes the exercise of stock options using the treasury stock method.

	Three months ended June 30,				Six months ended June 30,
(Amounts in thousands, except per share amounts)	2016		2015		2016		2015
Earnings per common share-basic:
Continuing operations	$	0.40	$	0.59	$	0.94	$	1.17
Discontinued operations		—		—		—		0.38
Total earnings per common share-basic	$	0.40	$	0.59	$	0.94	$	1.55
Earnings per common share- diluted:
Continuing operations	$	0.39	$	0.58	$	0.92	$	1.14
Discontinued operations		—		—		—		0.37
Total earnings per common share-diluted	$	0.39	$	0.58	$	0.92	$	1.51
Weighted average number of shares outstanding:
Basic common		82,598		83,394		82,874		83,758
Dilutive impact of Equity Incentive Plans:
Common shares		1,683		2,198		1,551		2,162
Diluted common shares		84,281		85,592		84,425		85,920

Diluted earnings per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares result from the assumed exercise of outstanding stock options, by application of the treasury stock method that has a dilutive effect on earnings per share. At June 30, 2016 and 2015, 2,177,738 and 579,995 stock options, respectively, were outstanding with an exercise price equal to or exceeding the market value of our common stock and were therefore excluded from the computation of shares contingently issuable upon exercise of the options.

22

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

10. ACCUMULATED OTHER COMPREHENSIVE LOSS 

Activity within accumulated other comprehensive loss for the three and six months ended June 30, 2016 and 2015, was for foreign currency translation of our foreign subsidiaries and is presented net of tax.

(Amounts in thousands)	Accumulated Other Comprehensive Loss
BALANCE, April 1, 2016	$	(69,563	)
Foreign currency translation adjustment, net    of tax of $4,779		(8,571	)
BALANCE, June 30, 2016	$	(78,134	)
BALANCE, January 1, 2016	$	(72,736	)
Foreign currency translation adjustment, net    of tax of $3,010		(5,398	)
BALANCE, June 30, 2016	$	(78,134	)
	Accumulated Other Comprehensive Loss
BALANCE, April 1, 2015	$	(67,395	)
Foreign currency translation adjustment, net    of tax of $(4,762)		8,171
BALANCE, June 30, 2015	$	(59,224	)
BALANCE, January 1, 2015	$	(37,506	)
Foreign currency translation adjustment, net    of tax of $12,371		(21,718	)
BALANCE, June 30, 2015	$	(59,224	)

11. SEGMENT REPORTING, GEOGRAPHIC AND CUSTOMER INFORMATION

Our five operating segments (Unified Communications Services, Telecom Services, Safety Services, Interactive Services, and Specialized Agent Services) are aggregated into four reportable segments as follows:

· Unified Communications Services which includes conferencing and collaboration services, UCaaS solutions and telecom services;

· Safety Services, including 9-1-1 network services, 9-1-1 telephony systems and services, 9-1-1 solutions for enterprises and database management;

· Interactive Services, including proactive notifications and mobility, IVR self-service, cloud contact center and professional services; and

· Specialized Agent Services which includes healthcare advocacy services, revenue generation services and cost management services.

23

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	For the three months ended June 30,						For the six months ended June 30,
(Amounts in Thousands)	2016			2015			2016			2015
Revenue:
Unified Communications Services	$	370,158		$	374,651		$	732,871		$	744,109
Safety Services		74,423			66,138			145,587			134,716
Interactive Services		73,232			63,628			144,961			126,095
Specialized Agent Services		67,495			68,566			135,873			135,644
Intersegment eliminations		(2,911	)		(1,092	)		(6,116	)		(3,183	)
Total	$	582,397		$	571,891		$	1,153,176		$	1,137,381
Depreciation and Amortization
(Included in Operating Income):
Unified Communications Services	$	20,671		$	20,625		$	41,607		$	41,108
Safety Services		11,446			12,210			22,652			25,019
Interactive Services		9,350			7,282			18,325			14,436
Specialized Agent Services		7,440			6,625			14,818			13,099
Total	$	48,907		$	46,742		$	97,402		$	93,662
Operating Income:
Unified Communications Services	$	88,762		$	98,958		$	177,830		$	193,836
Safety Services		11,871			3,254			20,844			6,456
Interactive Services		5,958			6,630			11,766			12,204
Specialized Agent Services		2,906			8,992			7,424			17,527
Corporate other—unallocated		13,604			(1,401	)		14,161			(2,897	)
Total	$	123,101		$	116,433		$	232,025		$	227,126
Cash Capital Expenditures:
Unified Communications Services	$	13,337		$	12,341		$	26,370		$	32,240
Safety Services		11,764			6,387			22,482			12,304
Interactive Services		6,350			4,478			10,149			8,470
Specialized Agent Services		2,603			3,104			5,560			5,880
Corporate		3,453			2,247			9,303			5,970
Total	$	37,507		$	28,557		$	73,864		$	64,864

	As of June 30, 2016		As of December 31, 2015
Assets:
Unified Communications Services	$	1,492,257	$	1,525,890
Safety Services		771,599		786,447
Interactive Services		449,626		430,793
Specialized Agent Services		474,077		491,449
Corporate		359,042		302,966
Total from continuing operations		3,546,601		3,537,545
Assets held for sale		—		17,672
Total	$	3,546,601	$	3,555,217

24

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Revenues from non-U.S. countries were approximately 21% of consolidated revenue for both the three and six months ended June 30, 2016 and 2015. Revenue from the United Kingdom accounted for 13% of consolidated revenue for both the three and six months ended June 30, 2016 and 12% of consolidated revenue for both the three and six months ended June 30, 2015. The United Kingdom was the only foreign country which accounted for greater than 10% of revenue. Revenue is attributed to the legal entity that has the contractual obligation with the customer regardless of the customer’s location or the currency used for billing purposes. Geographic information by organizational region, is noted below:

	For the three months ended June 30,				For the six months ended June 30,
(Amounts in thousands)	2016		2015		2016		2015
Revenue:
Americas—United States	$	459,330	$	454,656	$	911,760	$	901,869
Europe, Middle East & Africa (EMEA)		81,430		77,250		160,825		155,227
Asia Pacific		36,473		37,800		71,129		72,311
Americas—Other		5,164		2,185		9,462		7,974
Total	$	582,397	$	571,891	$	1,153,176	$	1,137,381

	As of June 30, 2016		As of December 31, 2015
Long-Lived Assets:
Americas—United States	$	2,567,467	$	2,593,739
Europe, Middle East & Africa (EMEA)		185,955		195,203
Asia Pacific		19,697		21,151
Americas—Other		7,269		1,952
Total	$	2,780,388	$	2,812,045

The aggregate gain (loss) on transactions denominated in currencies other than the functional currency of West Corporation or any of its subsidiaries was approximately $1.1 million and ($1.5) million for the three months ended June 30, 2016 and 2015, respectively.  For the six months ended June 30, 2016 and 2015, the aggregate loss on transactions denominated in currencies other than the functional currency of West Corporation or any of its subsidiaries was approximately ($1.0) million and ($0.2) million, respectively.

12. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, we and certain of our subsidiaries are defendants in various litigation matters and are subject to claims from our clients for indemnification, some of which may involve claims for damages that are substantial in amount.

Accruals have been made with respect to these matters, where appropriate, which are reflected in the Company’s consolidated financial statements. The Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company. The matters discussed below, if decided adversely to or settled by the Company, individually or in the aggregate, may result in liability material to the Company’s financial condition and/or results of operations.

There are asserted claims against the Company where an unfavorable outcome is considered to be reasonably possible. These claims can generally be categorized in the following areas: (l) commercial disputes with customers or other business partners, which may involve assertion of a breach of the Company’s legal or contractual obligations to the customer or a claim for indemnification for third-party losses; and (2) other matters which may include issues such as employment related claims. The Company’s estimates of the range of reasonably possible losses in excess of any amounts accrued for such claims is $0 to $20 million for all of the matters described above. The estimated range of reasonably possible losses is based on information currently available and involves elements of judgment and significant uncertainties. As additional information becomes available and the resolution of the uncertainties becomes more apparent, it is possible that actual losses may exceed even the high end of the estimated range.

25

WEST CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

In connection with the sale of certain of our agent-based businesses to Alorica Inc., we agreed to indemnify the buyer, up to the full purchase price of $275.0 million, with respect to the equity interests of the companies we sold, title to the equity and assets sold and the authority of the Company to sell the equity and assets. The Company has also agreed to indemnify the buyer for breaches of other representations and warranties in the purchase agreement for up to $13.75 million in losses and for certain other matters.

13.SUPPLEMENTAL CASH FLOW INFORMATION

The following table summarizes, in thousands, supplemental information about our cash flows for the six months ended June 30, 2016 and 2015:

	For the Six Months Ended
	June 30,
	2016			2015
SUPPLEMENTAL DISCLOSURE OF CASH FLOW    INFORMATION:
Cash paid during the period for interest	$	75,684		$	86,314
Cash paid during the period for income taxes, net of    refunds of $3,703 and $939	$	23,939		$	63,727
SUPPLEMENTAL DISCLOSURE OF NONCASH    INVESTING ACTIVITIES:
Accrued obligations for the purchase of property and    equipment	$	(4,849	)	$	(13,628	)
SUPPLEMENTAL DISCLOSURE OF NONCASH    FINANCING ACTIVITIES:
Accrued dividends	$	854		$	602
Accrued deferred financing costs	$	1,079		$	—

14. SUBSEQUENT EVENTS

On July 26, 2016, the Company entered into two interest rate swaps, a 1-month LIBOR swap and a 3-month LIBOR swap, both with a beginning notional value of $275.0 million and maturity date of July 17, 2021.  The 1-month LIBOR swap is effective July 29, 2016, with no amortization or variable interest rate floor.  The 3-month LIBOR swap is effective June 30, 2017, with 1% amortization per year and a 75 basis points LIBOR floor.

As required under ASC 815, Derivatives and Hedging, we will record the interest rate swaps on the balance sheet at fair value.  The interest rate swaps are considered cash flow hedges. We have elected to apply hedge accounting and believe the designated hedging relationship and terms of the interest rate swaps have satisfied the criteria necessary to apply hedge accounting.

The effective portion of changes in the fair value of the interest rate swaps will be recorded in Accumulated Other Comprehensive Loss and will be subsequently reclassified into earnings in the period that the hedged transactions affect earnings. The ineffective portion of the change in fair value of the interest rate swaps, if any, will be recognized in earnings.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 

The following discussion and analysis of our financial condition and results of continuing operations should be read in conjunction with the Condensed Consolidated Financial Statements (unaudited) and the Notes thereto.

FORWARD-LOOKING STATEMENTS

This report contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical facts contained in this report, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or other similar words.

These forward-looking statements are only predictions. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to materially differ from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. We have described in the “Risk Factors” section contained in our Annual Report on Form 10-K for the year ended December 31, 2015 the principal risks and uncertainties that we believe could cause actual results to differ from these forward-looking statements. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as guarantees of future events.

The forward-looking statements in this report represent our views as of the date of this report. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this report.

Business Overview

We are a global provider of technology-enabled communication services. “We,” “us” and “our” also refer to West and its consolidated subsidiaries, as applicable. We offer a broad range of communication and network infrastructure solutions that help manage or support essential communications. These solutions include unified communications services, safety services, interactive services such as automated notifications, specialized agent services and telecom services.

The scale and processing capacity of our technology platforms, combined with our expertise in managing multichannel interactions, enable us to provide reliable, high-quality, mission-critical communications designed to maximize return on investment for our clients and help them build smarter, more meaningful connections. We are dedicated to delivering and improving upon new channels, new capabilities and new choices for how businesses and consumers collaborate, connect and transact. Our clients include Fortune 1000 companies, along with small and medium enterprises in a variety of industries, including telecommunications, retail, financial services, public safety, education, technology and healthcare. We have sales and/or operations in the United States, Canada, Europe, the Middle East, Asia-Pacific, Latin America and South America.

Since our founding in 1986, we have invested significantly to expand our technology platforms and develop our operational processes to meet the complex communications needs of our clients. We have evolved our business mix from labor-intensive communication services to predominantly diversified technology-driven services.

Investing in technology and developing specialized expertise in the industries we serve are critical components to our strategy of enhancing our services and delivering operational excellence. In 2015, we managed approximately 65 billion telephony minutes and approximately 167 million conference calls, facilitated approximately 290 million 9-1-1 calls and received or delivered over 6.5 billion multichannel messages. We believe our platforms provide scale and flexibility to handle greater transaction volume than our competitors, offer superior service and develop new offerings. Our technology-driven platforms allow us to provide a broad range of service offerings to our diverse client base.

27

Financial Operations Overview

Revenue

Services in Unified Communications Services are generally billed and revenue recognized, on a per participant minute basis or, in the case of license arrangements, generally billed in advance and revenue recognized ratably over the service life period. We also charge clients for additional features, such as conference call recording, transcription services or professional services. Some Unified Communications Services revenue is recognized on a “Per User Per Month” or network circuit basis. Telecom Services revenue is primarily comprised of switched access charges for toll-free origination services, which are paid primarily by interexchange carriers. Revenue is billed monthly and revenue recognized based on usage.

Safety Services revenue is generated primarily from monthly fees and recognized as billed, based on the number of billing telephone numbers or population and cell towers covered under contract. In addition, product sales that may include hardware, software, and professional services (installation, training and project management) are generally recognized when shipment of the hardware and software has occurred and for professional services when client acceptance of a fully functional system is received. Contracts for annual recurring services such as support and maintenance agreements and contracts where guaranteed minimums exist are generally billed in advance and are recognized as revenue ratably (on a monthly basis) over the contractual periods.

Services in Interactive Services are generally billed, and revenue recognized, on a per call, per message or per minute basis, or in the case of subscription arrangements, generally billed in advance and revenue recognized ratably over the contract term.

Services in Specialized Agent Services are generally billed based on hours of input, number of contacts, number of personnel assigned, on a contingent basis or recognized in the month collection payments are received based upon a percentage of cash collected or other agreed upon contractual parameters. Revenue for health advocacy services is generally based on “Per Employee Per Month” fees charged under prepayment agreements for services and is recognized ratably over the service period.

For all of our reportable segments, fees received for future service periods are deferred until the service is performed.

Cost of Services

The principal component of cost of services is our variable telephone expense, labor related expenses and commissions for our sales force.

Selling, General and Administrative Expenses

The principal component of our selling, general and administrative expenses (“SG&A”) is salary and benefits for our sales force, client support staff, technology and development personnel, senior management and other personnel involved in business support functions. SG&A also includes certain fixed telephone costs as well as other expenses that support the ongoing operation of our business, such as facilities costs, certain service contract costs, depreciation, maintenance and amortization of finite-lived intangible assets.

Key Drivers Affecting Our Financial Position and Results of Operations

Divestiture Activities. On March 3, 2015, we divested several of our agent-based businesses, including our consumer facing customer sales and lifecycle management, account services and receivables management businesses, for $275.0 million in cash. We completed the divestiture pursuant to a purchase agreement executed January 7, 2015 and in accordance with a plan approved by our Board of Directors on December 30, 2014.

The divestiture resulted in a $48.2 million after-tax gain in 2015 which was included within income from discontinued operations. The $48.2 million gain included a $21.6 million tax benefit in 2015 due to the deferred tax benefit associated with excess outside basis over financial reporting basis. The total after-tax gain realized on the sale was $56.8 million, including the $8.6 million tax benefit associated with a higher tax basis than book basis that we were required to recognize in the fourth quarter of 2014.

Factors Related to our Indebtedness. On June 17, 2016, we completed a partial refinancing of our outstanding indebtedness through an amendment to our term and revolving senior secured credit facilities (“Senior Secured Credit Facilities”) and a private offering of $400 million aggregate principal amount of 4.75% senior secured notes due 2021.  The amendment to our Senior Secured Credit Facilities, among other things, established commitments for a new seven-year senior secured term loan B-12 facility in an aggregate principal amount of $870 million (the “2023 Maturity Term Loans”), a new five-year senior secured term loan A-2 facility in an aggregate principal amount of $650 million (the “2021 Maturity A Term Loans”), and a new five-year senior secured term loan B-14 facility in an aggregate principal amount of $260 million (the “2021 Maturity B Term Loans”). We used the proceeds of the new

28

notes and new facilities, together with cash on hand, to repay $1,678 million of our existing term loan B-10 facility (the “2018 Maturity Term Loans”) and $252.6 million on the term A-1 facility (the “2019 Maturity Term Loans”) and to repay in full, $249.4 million on the term loan B-11 facility (“B-11 Term Loans”). In addition, the amendment provided for an extended senior secured revolving credit facility with a maturity date of June 17, 2021 in an aggregate amount of $300 million (the “Extended Revolving Credit Commitments”).  

The refinancing and use of proceeds resulted in the following benefits:

· we extended our weighted average length of maturity from 3.7 years to 5.75 years, while maintaining an attractively priced cost of capital, with a weighted average cost of debt of 4.10%, an increase from 3.90% as of March 31, 2016, excluding amortization of deferred financing fees and unused commitment fees; and

· we increased our percentage of fixed rate debt from 30% to 42% of our total debt portfolio.

Acquisition Activities. Identifying and successfully integrating acquisitions of value-added service providers has been a key component of our growth strategy. We will continue to seek opportunities to expand our suite of communication services across industries, geographies and end-markets. We have developed an internal capability to source, evaluate and integrate acquisitions that we believe has created value for stockholders. Since 2002, we have invested approximately $3.0 billion in strategic acquisitions. We believe there are acquisition candidates that will enable us to expand our capabilities and markets and intend to continue to evaluate acquisitions in a disciplined manner and pursue those that provide attractive opportunities to enhance our growth and profitability.

Overview of 2016 Results

The following overview highlights the areas we believe are important in understanding the results of our continuing operations for the three and six months ended June 30, 2016. This summary is not intended as a substitute for the detail provided elsewhere in this quarterly report or for our unaudited condensed consolidated financial statements and notes thereto included elsewhere in this quarterly report. Unless otherwise stated, financial results discussed herein refer to continuing operations.

· Our revenue increased $10.5 million, or 1.8%, during the three months ended June 30, 2016 compared to revenue during the three months ended June 30, 2015.

· Our revenue increased $15.8 million, or 1.4%, during the six months ended June 30, 2016 compared to revenue during the six months ended June 30, 2015.

· Our operating income increased $6.7 million, or 5.7%, during the three months ended June 30, 2016 compared to operating income during the three months ended June 30, 2015.

· Our operating income increased $4.9 million, or 2.2%, during the six months ended June 30, 2016 compared to operating income during the six months ended June 30, 2015.

· On March 14, 2016, we completed the acquisition of substantially all of the assets of Synrevoice, a provider of messaging and notification services to the K-12 education and commercial markets in North America. The purchase price was approximately $9.3 million and was funded with cash on hand. This business is included in the Interactive Services reportable segment.

· On June 17, 2016, we amended our Senior Secured Credit Facilities and completed a private offering of $400 million aggregate principal amount of 4.75% senior secured notes due 2021.  The proceeds from the amendment and new notes were used to repay $1,678 million of our 2018 Maturity Term Loans and $252.6 million of our 2019 Maturity Term Loans and to repay in full, $249.4 million of our B-11 Term Loans. In addition, the amendment to the credit agreement provided for an extended senior secured revolving credit facility with a maturity date of June 17, 2021 in an aggregate amount of $300 million.  In connection with these refinancing activities we recorded $35.2million of accelerated amortization of deferred financing costs.

· On June 21, 2016, we completed the sale of land, buildings and improvements which were previously classified as held for sale for $38.8 million, excluding related expenses. In connection with this sale, we realized a pre-tax gain of approximately $19.0 million.  We also entered into a twelve year leaseback agreement for one of the buildings.  This lease is classified as an operating lease and the related $6.1 million gain, included in the $19.0 million realized gain, is being deferred and will be recognized over the lease term.

29

Results of Operations

Comparison of the Three and Six Months Ended June 30, 2016 and 2015

Revenue: The tables below summarize the changes in our revenue for the three and six months ended June 30, 2016 compared to the revenue for the three and six months ended June 30, 2015.

	Amounts in millions			Contribution to Growth %
Revenue for the three months ended June 30, 2015	$	571.9
Revenue from acquired entities		7.1			1.2	%
Estimated impact of foreign exchange rates		(2.4	)		(0.4	)%
Revenue from previously disclosed lost client		(16.0	)		(2.8	)%
Adjusted organic growth, net		21.8			3.8	%
Revenue for the three months ended June 30, 2016	$	582.4			1.8	%

Total revenue for the three months ended June 30, 2016 increased approximately $10.5 million, or 1.8%, to $582.4 million from $571.9 million for the three months ended June 30, 2015. This increase included revenue of $7.1 million from the acquisitions of Synrevoice, ClientTell, Magnetic North and SharpSchool.

The loss of a previously disclosed large Telecom Services client negatively impacted our revenue growth by approximately $16.0 million during the quarter.

Foreign exchange rates had a negative impact of approximately $2.4 million on our revenue for the three months ended June 30, 2016 when comparing the foreign exchange rates in place during this quarter to those in place during the three months ended June 30, 2015.

Adjusted organic growth is a non-GAAP measure that excludes revenue from acquired entities, revenue from previously disclosed lost clients and the estimated impact of foreign currency exchange rates.  We believe adjusted organic revenue growth provides a useful measure of growth in our ongoing business.

	Amounts in millions			Contribution to Growth %
Revenue for the six months ended June 30, 2015	$	1,137.4
Revenue from acquired entities		14.4			1.3	%
Estimated impact of foreign exchange rates		(6.1	)		(0.5	)%
Revenue from two previously disclosed lost clients		(34.2	)		(3.0	)%
Adjusted organic growth, net		41.7			3.7	%
Revenue for the six months ended June 30, 2016	$	1,153.2			1.4	%

Total revenue for the six months ended June 30, 2016 increased approximately $15.8 million, or 1.4%, to $1,153.2million from $1,137.4 million for the six months ended June 30, 2015. This increase included revenue of $14.4 million from the acquisitions of Synrevoice, ClientTell, Magnetic North, and SharpSchool.

The loss of two previously disclosed large clients negatively impacted our revenue growth by approximately $34.2 million.

Foreign exchange rates had a negative impact of approximately $6.1 million on our revenue for the six months ended June 30, 2016 when comparing the foreign exchange rates in place during this quarter to those in place during the six months ended June 30, 2015.

30

Revenue by reportable segment:

	For the three months ended June 30,
	2016			% of Total Revenue			2015			% of Total Revenue			Change			% Change
Revenue (in thousands):
Unified Communications Services	$	370,158			63.5	%	$	374,651			65.5	%	$	(4,493	)		-1.2	%
Safety Services		74,423			12.8	%		66,138			11.6	%		8,285			12.5	%
Interactive Services		73,232			12.6	%		63,628			11.1	%		9,604			15.1	%
Specialized Agent Services		67,495			11.6	%		68,566			12.0	%		(1,071	)		-1.6	%
Intersegment eliminations		(2,911	)		-0.5	%		(1,092	)		-0.2	%		(1,819	)	NM
Total	$	582,397			100.0	%	$	571,891			100.0	%	$	10,506			1.8	%

NM—Not Meaningful

During the three months ended June 30, 2016, Unified Communications Services revenue decreased $4.5 million, or 1.2%, to $370.2 million from $374.7 million for the three months ended June 30, 2015. Negative impacts of foreign exchange rates of approximately $2.4 million and the large Telecom Services client loss of $16.0 million were partially offset by revenue from new sales, client volume growth and revenue of $2.2 million from the acquisition of Magnetic North. Adjusted organic growth for Unified Communications Services was 3.1% for the three months ended June 30, 2016.

The volume of minutes used for our reservationless conferencing services, which accounts for just over half of the Unified Communications Services revenue, grew approximately 3.4% for the three months ended June 30, 2016 compared to the three months ended June 30, 2015, while the average rate per minute for reservationless services declined by approximately 5.6%. Using constant currency foreign exchange rates, our average rate per minute for reservationless conferencing services declined by approximately 4.7% for the three months ended June 30, 2016.

During the three months ended June 30, 2016, Safety Services revenue increased $8.3 million, or 12.5%, to $74.4million from $66.1 million for the three months ended June 30, 2015. The increase was primarily due to sales to customers adopting new technologies and higher equipment sales, which can fluctuate quarter to quarter, partially offset by price compression.

During the three months ended June 30, 2016, Interactive Services revenue increased $9.6 million, or 15.1%, to $73.2 million from $63.6 million for the three months ended June 30, 2015. The acquisitions of Synrevoice, ClientTell and SharpSchool contributed $4.9 million of the increase in revenue. The remaining increase was primarily due to new clients and increased volumes from existing clients, largely in the education market, partially offset by price compression.

During the three months ended June 30, 2016, Specialized Agent Services revenue decreased $1.1 million, or 1.6%, to $67.5 million from $68.6 million for the three months ended June 30, 2015. This decrease in revenue was primarily due to expected customer churn, delayed program implementations due to challenging labor markets in our revenue generation services and slower than historical recoveries from our cost management services. The decrease in revenue in the revenue generation and cost management businesses was partially offset by double-digit revenue growth in our healthcare advocacy services due to increased volume as well as expanded product offerings.

During the three months ended June 30, 2016, international revenue was $123.1 million, an increase of 5.0% over the three months ended June 30, 2015. Excluding acquisitions, the percentage increase in international revenue was 1.4%. Using constant currency foreign exchange rates, international revenue would have increased 7.1% during the three months ended June 30, 2016 compared to the three months ended June 30, 2015.

31

During the three months ended June 30, 2016 and 2015, our largest 100 clients accounted for approximately 41% and 48% of our total revenue, respectively. In each of these periods, no client accounted for more than 10% of our aggregate revenue.

	For the six months ended June 30,
	2016			% of Total Revenue			2015			% of Total Revenue			Change			% Change
Revenue (in thousands):
Unified Communications Services	$	732,871			63.5	%	$	744,109			65.4	%	$	(11,238	)		-1.5	%
Safety Services		145,587			12.6	%		134,716			11.8	%		10,871			8.1	%
Interactive Services		144,961			12.6	%		126,095			11.1	%		18,866			15.0	%
Specialized Agent Services		135,873			11.8	%		135,644			11.9	%		229			0.2	%
Intersegment eliminations		(6,116	)		-0.5	%		(3,183	)		-0.3	%		(2,933	)	NM
Total	$	1,153,176			100.0	%	$	1,137,381			100.0	%	$	15,795			1.4	%

NM—Not Meaningful

During the six months ended June 30, 2016, Unified Communications Services revenue decreased $11.2 million, or 1.5%, to $732.9 million from $744.1 million for the six months ended June 30, 2015. Negative impacts of foreign exchange rates of approximately $6.1 million and the two large client losses of $34.2 million were partially offset by revenue from new sales, client volume growth and revenue of $4.4 million from the acquisition of Magnetic North. Adjusted organic growth for Unified Communications Services was 3.3% for the six months ended June 30, 2016.

The volume of minutes used for our reservationless conferencing services, which accounts for just over half of the Unified Communications Services revenue, grew approximately 3.3% for the six months ended June 30, 2016 compared to the six months ended June 30, 2015, while the average rate per minute for reservationless services declined by approximately 5.7%. Adjusting for the impact of the loss of a large conferencing client, the volume of minutes used for our reservationless conferencing services grew by approximately 3.9% and our average rate per minute for reservationless conferencing services declined by approximately 5.1% for the six months ended June 30, 2016.

During the six months ended June 30, 2016, Safety Services revenue increased $10.9 million, or 8.1%, to $145.6 million from $134.7 million for the six months ended June 30, 2015. The increase was primarily due to sales to customers adopting new technologies and higher equipment sales, which can fluctuate period to period, partially offset by price compression.

During the six months ended June 30, 2016, Interactive Services revenue increased $18.9 million, or 15.0%, to $145.0 million from $126.1 million for the six months ended June 30, 2015. The acquisitions of Synrevoice, ClientTell and SharpSchool contributed $10.0 million of the increase in revenue. The remaining increase was primarily due to new clients as well as increased volumes from existing clients, largely in the education and healthcare markets, partially offset by price compression.

During the six months ended June 30, 2016, Specialized Agent Services revenue increased $0.2million, or 0.2%, to $135.9 million from $135.6 million for the six months ended June 30, 2015. The increase in revenue is primarily the result of double-digit revenue growth in our healthcare advocacy services due to increased volume as well as expanded product offerings. This increase in revenue was partially offset by customer churn, delayed program implementations due to challenging labor markets in our revenue generation services and slower than historical recoveries from our cost management services.

During the six months ended June 30, 2016, international revenue was $241.4 million, an increase of 2.5% over the six months ended June 30, 2015. Excluding acquisitions, the percentage decrease in international revenue was 1.1%. Using constant currency foreign exchange rates, international revenue would have increased 5.1% during the six months ended June 30, 2016 compared to the six months ended June 30, 2015.

During the six months ended June 30, 2016 and 2015, our largest 100 clients accounted for approximately 42% and 45% of our total revenue, respectively. In each of these periods, no client accounted for more than 10% of our aggregate revenue.

Cost of Services: Cost of services consists of direct labor, telephone expense, commissions and other costs directly related to providing services to our clients. Cost of services increased approximately $4.2 million, or 1.7%, in the three months ended June 30, 2016, to $249.4 million, from $245.3 million for the three months ended June 30, 2015. The increase in cost of services during the three months ended June 30, 2016 included $1.3 million from the acquisitions completed in 2016 and 2015. The remaining net increase of $2.9 million was primarily driven by increased service volume which was partially offset by cost savings initiatives. As a percentage of revenue, cost of services decreased to 42.8% for the three months ended June 30, 2016, from 42.9% for the three months ended June 30, 2015.

32

Cost of Services by reportable segment:

	For the three months ended June 30,
	2016			% of Revenue			2015			% of Revenue			Change			% Change
Cost of services (in thousands):
Unified Communications Services	$	173,651			46.9	%	$	173,127			46.2	%	$	524			0.3	%
Safety Services		26,689			35.9	%		26,678			40.3	%		11			0.0	%
Interactive Services		16,918			23.1	%		13,569			21.3	%		3,349			24.7	%
Specialized Agent Services		33,760			50.0	%		32,462			47.3	%		1,298			4.0	%
Intersegment eliminations		(1,592	)	NM				(570	)	NM				(1,022	)		179.3	%
Total	$	249,426			42.8	%	$	245,266			42.9	%	$	4,160			1.7	%

NM—Not Meaningful

During the three months ended June 30, 2016, Unified Communications Services cost of services increased $0.5 million, or 0.3%, to $173.7 million from $173.1 million for the three months ended June 30, 2015. Using constant currency foreign exchange rates, cost of services for the three months ended June 30, 2016 would have been approximately $1.8 million higher. As a percentage of this segment’s revenue, Unified Communications Services cost of services during the three months ended June 30, 2016 increased to 46.9% from 46.2% for the three months ended June 30, 2015. The increase in cost of services as a percentage of revenue was due primarily to the loss of a large telecom services customer which had an above average gross margin, product mix and price compression for reservationless conferencing services.

During the three months ended June 30, 2016, Safety Services cost of services increased less than $0.1 million from $26.7 million for the three months ended June 30, 2015. Cost savings initiatives offset the expense increases in telecom expenses associated with new technologies and volume related increases. As a percentage of revenue, Safety Services cost of services during the three months ended June 30, 2016 decreased to 35.9% from 40.3% for the three months ended June 30, 2015 due to product mix.

During the three months ended June 30, 2016, Interactive Services cost of services increased $3.3 million, or 24.7%, to $16.9 million from $13.6 million for the three months ended June 30, 2015. The increase in cost of services included $0.9 million from acquisitions made in 2016 and 2015. As a percentage of revenue, Interactive Services cost of services during the three months ended June 30, 2016 increased to 23.1% from 21.3% for the three months ended June 30, 2015. The increase in cost of services as a percentage of revenue is due primarily to product mix.

During the three months ended June 30, 2016, Specialized Agent Services cost of services increased $1.3 million, or 4.0%, to $33.8 million from $32.5 million for the three months ended June 30, 2015. The increase in cost of services was primarily due to increased labor rates. As a percentage of revenue, Specialized Agent Services cost of services during the three months ended June 30, 2016 increased to 50.0% from 47.3% for the three months ended June 30, 2015. The increase in cost of services as a percentage of revenue is due to increased labor rates and product mix.

Cost of services increased approximately $5.5million, or 1.1%, in the six months ended June 30, 2016, to $490.4million, from $485.0 million for the six months ended June 30, 2015. The increase in cost of services during the six months ended June 30, 2016 included $2.3million from the acquisitions completed in 2016 and 2015. The remaining net increase of $3.2 million was primarily driven by increased service volume, which was partially offset by cost savings initiatives. As a percentage of revenue, cost of services decreased to 42.5% for the six months ended June 30, 2016, from 42.6% for the six months ended June 30, 2015.

	For the six months ended June 30,
	2016			% of Revenue			2015			% of Revenue			Change			% Change
Cost of services (in thousands):
Unified Communications Services	$	339,847			46.4	%	$	341,442			45.9	%	$	(1,595	)		-0.5	%
Safety Services		54,004			37.1	%		53,183			39.5	%		821			1.5	%
Interactive Services		33,070			22.8	%		27,231			21.6	%		5,839			21.4	%
Specialized Agent Services		66,911			49.2	%		64,033			47.2	%		2,878			4.5	%
Intersegment eliminations		(3,394	)	NM				(922	)	NM				(2,472	)		268.1	%
Total	$	490,438			42.5	%	$	484,967			42.6	%	$	5,471			1.1	%

NM—Not Meaningful

33

During the six months ended June 30, 2016, Unified Communications Services cost of services decreased $1.6 million, or 0.5%, to $339.8million from $341.4 million for the six months ended June 30, 2015. Using constant currency foreign exchange rates, cost of services for the six months ended June 30, 2016 would have been approximately $3.8million higher. As a percentage of this segment’s revenue, Unified Communications Services cost of services during the six months ended June 30, 2016 increased to 46.4% from 45.9% for the six months ended June 30, 2015. The increase in cost of services as a percentage of revenue was due primarily to the loss of a large telecom services customer which had an above average gross margin and the loss of a large conferencing customer, product mix and price compression for reservationless conferencing services.

During the six months ended June 30, 2016, Safety Services cost of services increased $0.8 million, or 1.5%, to $54.0 million from $53.2 million for the six months ended June 30, 2015. The increase in cost of services was primarily due to volume increases and an increase in telecom expenses associated with new technologies, partially offset by cost savings initiatives. As a percentage of revenue, Safety Services cost of services during the six months ended June 30, 2016 decreased to 37.1% from 39.5% for the six months ended June 30, 2015 due to product mix.

During the six months ended June 30, 2016, Interactive Services cost of services increased $5.8 million, or 21.4%, to $33.1 million from $27.2 million for the six months ended June 30, 2015. The increase in cost of services included $1.5million from acquisitions made in 2016 and 2015. As a percentage of revenue, Interactive Services cost of services during the six months ended June 30, 2016 increased to 22.8% from 21.6% for the six months ended June 30, 2015. The increase in cost of services as a percentage of revenue is due primarily to product mix.

During the six months ended June 30, 2016, Specialized Agent Services cost of services increased $2.9 million, or 4.5%, to $66.9million from $64.0 million for the six months ended June 30, 2015. The increase in cost of services was primarily due to increased labor rates. As a percentage of revenue, Specialized Agent Services cost of services during the six months ended June 30, 2016 increased to 49.2% from 47.2% for the six months ended June 30, 2015. The increase in cost of services as a percentage of revenue is due to increased labor rates and product mix.

SG&A expenses: SG&A expenses decreased by approximately $0.3 million, or 0.2%, to $209.9 million for the three months ended June 30, 2016 from $210.2 million for the three months ended June 30, 2015. The decrease in SG&A expenses during the three months ended June 30, 2016 included a $12.8 million gain on the sale of buildings that were previously occupied by the businesses we divested in 2015.  Partially offsetting this reduction in SG&A expenses were $7.5 million from the acquisitions completed in 2016 and 2015, an increase in labor rates and an increase of $1.4 million in severance expenses. The $7.5 million of SG&A from acquired entities includes $2.4million of amortization of acquired intangible assets. As a percentage of revenue, SG&A expenses decreased to 36.0% for the three months ended June 30, 2016 from 36.8% for the three months ended June 30, 2015.

SG&A expenses by reportable segment:

	For the three months ended June 30,
	2016			% of Revenue			2015			% of Revenue			Change			% Change
SG&A (in thousands):
Unified Communications Services	$	107,745			29.1	%	$	102,566			27.4	%	$	5,179			5.0	%
Safety Services		35,863			48.2	%		36,206			54.7	%		(343	)		-0.9	%
Interactive Services		50,356			68.8	%		43,429			68.3	%		6,927			16.0	%
Specialized Agent Services		30,829			45.7	%		27,112			39.5	%		3,717			13.7	%
Corporate other - unallocated		(13,604	)	NM				1,401		NM				(15,005	)	NM
Intersegment eliminations		(1,319	)	NM				(522	)	NM				(797	)	NM
Total	$	209,870			36.0	%	$	210,192			36.8	%	$	(322	)		-0.2	%

NM—Not Meaningful

During the three months ended June 30, 2016, Unified Communications Services SG&A expenses increased $5.2 million, or 5.0%, to $107.7 million from $102.6 million for the three months ended June 30, 2015. Using constant currency foreign exchange rates, SG&A expenses for Unified Communications Services during the three months ended June 30, 2016 would have been approximately $2.9 million higher. The increase was primarily due to increased expenses to support growth in the UCaaS market and $2.6 million from the acquisition of Magnetic North, partially offset by cost savings initiatives. As a percentage of this segment’s revenue, Unified Communications Services SG&A expenses during the three months ended June 30, 2016 increased to 29.1% compared to 27.4% for the three months ended June 30, 2015.

34

During the three months ended June 30, 2016, Safety Services SG&A expenses decreased $0.3 million, or 0.9%, to $35.9million from $36.2 million for the three months ended June 30, 2015. The decrease in SG&A expenses during the three months ended June 30, 2016, was due primarily to lower amortization expense and the results of cost savings initiatives. As a percentage of this segment’s revenue, Safety Services SG&A expenses during the three months ended June 30, 2016 decreased to 48.2% compared to 54.7% for the three months ended June 30, 2015.

During the three months ended June 30, 2016, Interactive Services SG&A expenses increased $6.9million, or 16.0%, to $50.4 million from $43.4 million for the three months ended June 30, 2015. The increase in SG&A expenses during the three months ended June 30, 2016 included $4.9 million from acquisitions made in 2016 and 2015. The remaining increase in SG&A expenses was primarily due to increased headcount levels to meet current and expected customer demand. As a percentage of this segment’s revenue, Interactive Services SG&A expenses during the three months ended June 30, 2016, increased to 68.8% compared to 68.3% for the three months ended June 30, 2015.

During the three months ended June 30, 2016, Specialized Agent Services SG&A expenses increased $3.7 million, or 13.7%, to $30.8 million from $27.1 million for the three months ended June 30, 2015. This increase in SG&A expense was driven by increased labor rates and severance costs and costs of product enhancements to accelerate revenue growth. As a percentage of this segment’s revenue, Specialized Agent Services SG&A expenses during the three months ended June 30, 2016 increased to 45.7% compared to 39.5% for the three months ended June 30, 2015.

During the three months ended June 30, 2016, Corporate other unallocated SG&A expenses consisted of the $12.8 million gain recognized on the sale of buildings that were previously occupied by the businesses we divested in 2015, $1.8 million of unallocated foreign currency gains on third-party transactions denominated in currencies other than the functional currency and $1.1 million of mark-to-market gains on investments in our non-qualified retirement plans. During the three months ended June 30, 2015, there were $1.6 million of unallocated foreign currency losses. In addition, the three months ended June 30, 2015 included $0.2 million of mark-to-market losses on investments in our non-qualified retirement plans. These mark-to-market losses result in a decrease in SG&A and a corresponding decrease in other non-operating income. All other corporate expenses are allocated to our four reportable segments.

SG&A expenses increased by approximately $5.4 million, or 1.3%, to $430.7 million for the six months ended June 30, 2016 from $425.3 million for the six months ended June 30, 2015. The increase in SG&A expenses during the six months ended June 30, 2016 included $14.5million from the acquisitions completed in 2016 and 2015. The $14.5 million of SG&A from acquired entities includes $4.7 million of amortization of acquired intangible assets. Share-based compensation contributed $2.4 million to the increase in SG&A due to annual restricted stock awards made in September 2015 and March 2016. Increased labor rates and severance costs also contributed to the increase in SG&A expenses. These increases in SG&A expenses were partially offset by the $12.8 million gain on the sale of buildings that were previously occupied by the businesses we divested in 2015. As a percentage of revenue, SG&A expenses were 37.4% for the six months ended June 30, 2016 and the six months ended June 30, 2015.

	For the six months ended June 30,
	2016			% of Revenue			2015			% of Revenue			Change			% Change
SG&A (in thousands):
Unified Communications Services	$	215,194			29.4	%	$	208,831			28.1	%	$	6,363			3.0	%
Safety Services		70,739			48.6	%		75,077			55.7	%		(4,338	)		-5.8	%
Interactive Services		100,125			69.1	%		86,660			68.7	%		13,465			15.5	%
Specialized Agent Services		61,538			45.3	%		54,084			39.9	%		7,454			13.8	%
Corporate other - unallocated		(14,161	)	NM				2,897		NM				(17,058	)	NM
Intersegment eliminations		(2,722	)	NM				(2,261	)	NM				(461	)	NM
Total	$	430,713			37.4	%	$	425,288			37.4	%	$	5,425			1.3	%

NM—Not Meaningful

During the six months ended June 30, 2016, Unified Communications Services SG&A expenses increased $6.4 million, or 3.0%, to $215.2 million from $208.8 million for the six months ended June 30, 2015. Using constant currency foreign exchange rates, SG&A expenses for Unified Communications Services during the six months ended June 30, 2016 would have been approximately $5.1 million higher. The increase was primarily due to increased expenses to support growth in the UCaaS market and $5.1 million from the acquisition of Magnetic North, partially offset by cost savings initiatives. As a percentage of this segment’s revenue, Unified Communications Services SG&A expenses during the six months ended June 30, 2016 increased to 29.4% compared to 28.1% for the six months ended June 30, 2015.

35

During the six months ended June 30, 2016, Safety Services SG&A expenses decreased $4.3 million, or 5.8%, to $70.7million from $75.1 million for the six months ended June 30, 2015. The decrease in SG&A expenses during the six months ended June 30, 2016, was due primarily to lower amortization expense and the results of cost savings initiatives. As a percentage of this segment’s revenue, Safety Services SG&A expenses during the six months ended June 30, 2016 decreased to 48.6% compared to 55.7% for the six months ended June 30, 2015.

During the six months ended June 30, 2016, Interactive Services SG&A expenses increased $13.5 million, or 15.5%, to $100.1million from $86.7 million for the six months ended June 30, 2015. The increase in SG&A expenses during the six months ended June 30, 2016 included $9.5million from acquisitions made in 2016 and 2015. The remaining increase in SG&A expenses was primarily due to increased headcount levels to meet current and expected customer demand. As a percentage of this segment’s revenue, Interactive Services SG&A expenses during the six months ended June 30, 2016, increased to 69.1% compared to 68.7% for the six months ended June 30, 2015.

During the six months ended June 30, 2016, Specialized Agent Services SG&A expenses increased $7.5 million, or 13.8%, to $61.5million from $54.1 million for the six months ended June 30, 2015. This increase in SG&A expense was driven by the need for additional resources that were previously shared with the agent businesses we divested on March 3, 2015, increased labor rates and severance costs and costs of product enhancements to accelerate revenue growth. As a percentage of this segment’s revenue, Specialized Agent Services SG&A expenses during the six months ended June 30, 2016 increased to 45.3% compared to 39.9% for the six months ended June 30, 2015.

During the six months ended June 30, 2016, Corporate other unallocated SG&A expenses consisted of the $12.8 million gain recognized on the sale of buildings that were previously occupied by the businesses we divested in 2015, $2.4 million of unallocated foreign currency gains on third-party transactions denominated in currencies other than the functional currency and $1.1 million of mark-to-market gains on investments in our non-qualified retirement plans. During the six months ended June 30, 2015, there were $1.8 million of unallocated foreign currency losses. In addition, the six months ended June 30, 2015 included $1.1 million of mark-to-market gains on investments in our non-qualified retirement plans. These mark-to-market gains result in an increase in SG&A and a corresponding increase in other non-operating income. All other corporate expenses are allocated to our four reportable segments.

Operating income: Operating income increased $6.7 million, or 5.7%, to $123.1 million for the three months ended June 30, 2016 from $116.4 million for the three months ended June 30, 2015. As a percentage of revenue, operating income increased to 21.1% for the three months ended June 30, 2016 from 20.4% for the three months ended June 30, 2015. The increase in operating margin is primarily due to the sale of the buildings previously discussed and cost savings initiatives, partially offset by revenue mix and the higher than average operating margin associated with the lost telecom services customer.

Operating income by reportable segment:

	For the three months ended June 30,
	2016		% of Revenue			2015			% of Revenue			Change			% Change
Operating income (in thousands):
Unified Communications Services	$	88,762		24.0	%	$	98,958			26.4	%	$	(10,196	)		-10.3	%
Safety Services		11,871		16.0	%		3,254			4.9	%		8,617			264.8	%
Interactive Services		5,958		8.1	%		6,630			10.4	%		(672	)		-10.1	%
Specialized Agent Services		2,906		4.3	%		8,992			13.1	%		(6,086	)		-67.7	%
Corporate other unallocated		13,604	NM				(1,401	)	NM				15,005		NM
Total	$	123,101		21.1	%	$	116,433			20.4	%	$	6,668			5.7	%

NM—Not Meaningful

Operating income increased $4.9 million, or 2.2%, to $232.0 million for the six months ended June 30, 2016 from $227.1 million for the six months ended June 30, 2015. As a percentage of revenue, operating income increased to 20.1% for the six months ended June 30, 2016 from 20.0% for the six months ended June 30, 2015. The increase in operating margin is primarily due to the sale of the buildings, partially offset by revenue mix and the higher than average operating margin associated with the lost telecom services client.

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	For the six months ended June 30,
	2016		% of Revenue			2015			% of Revenue			Change			% Change
Operating income (in thousands):
Unified Communications Services	$	177,830		24.3	%	$	193,836			26.0	%	$	(16,006	)		-8.3	%
Safety Services		20,844		14.3	%		6,456			4.8	%		14,388			222.9	%
Interactive Services		11,766		8.1	%		12,204			9.7	%		(438	)		-3.6	%
Specialized Agent Services		7,424		5.5	%		17,527			12.9	%		(10,103	)		-57.6	%
Corporate other unallocated		14,161	NM				(2,897	)	NM				17,058		NM
Total	$	232,025		20.1	%	$	227,126			20.0	%	$	4,899			2.2	%

NM—Not Meaningful

Other income (expense): Other income (expense) includes interest expense from borrowings under credit facilities and outstanding notes, the aggregate foreign exchange gain (loss) on affiliate transactions denominated in currencies other than the functional currency, expenses, net of recoveries, of transition service agreements in connection with the sale of certain of our agent-based businesses and interest income from short-term investments.

Other expense for the three months ended June 30, 2016 was $71.7 million compared to $38.5 million for the three months ended June 30, 2015. Other expense for the six months ended June 30, 2016 was $111.3 million compared to $73.5 million for the six months ended June 30, 2015.  Other expense for the three and six months ended June 30, 2016 included $35.2 million of accelerated amortization of deferred financing costs as a result of our refinancing and accelerated debt principal prepayments. Interest expense for the three and six months ended June 30, 2016 was $37.7 million and $76.5 million, respectively, compared to $38.6 million and $77.5 million, respectively, for the three and six months ended June 30, 2015.  

During the three and six months ended June 30, 2016, we recognized losses of $0.7 million and $3.3 million, respectively, on affiliate transactions denominated in foreign currencies.  During the three and six months ended June 30, 2015, we recognized gains of $0.1 million and $1.5 million, respectively, on affiliate transactions denominated in foreign currencies.

During the three and six months ended June 30, 2016, we recognized a gain of $1.1 million, in marking the investments in our non-qualified retirement plans to market. During the three and six months ended June 30, 2015 we recognized a loss of $0.2 million and a gain of $1.1 million, respectively, in marking the investments in our non-qualified retirement plans to market. Mark-to-market gains or losses, recognized in other income, on the investments in our non-qualified retirement plans are offset by additional or reduced compensation expense related to the non-qualified retirement plans that is recorded in Corporate other unallocated SG&A expense.

During the three and six months ended June 30, 2016, revenue from transition service agreements, net of transition service expenses, and related rental income associated with the divestiture of several of our agent-based businesses in the first quarter of 2015 was $0.7 million and $2.3 million, respectively. During the three and six months ended June 30, 2015, expense from transition service agreements, net of transition service revenue, and related rental income was $0.2 million and $0.1 million, respectively.

Income from continuing operations: Our income from continuing operations decreased $16.2million for the three months ended June 30, 2016 to $33.0 million from $49.2 million for the three months ended June 30, 2015. The decrease in income from continuing operations was driven primarily by $35.2million of accelerated amortization of deferred financing costs as a result of our refinancing and accelerated debt principal prepayments. This decrease was partially offset by the $12.8 million gain recognized on the sale of buildings. The net impact on income from continuing operations from the accelerated amortization and sale of the buildings was a reduction of $14.3 million. Income from continuing operations includes a provision for income tax expense at an effective rate of approximately 35.8% for the three months ended June 30, 2016 compared to 36.8% for the three months ended June 30, 2015.

Our income from continuing operations decreased $20.3 million for the six months ended June 30, 2016 to $77.5 million from $97.9 million for the six months ended June 30, 2015. The net impact on income from continuing operations from the accelerated amortization and sale of the buildings was a reduction of $14.3 million. Income from continuing operations includes a provision for income tax expense at an effective rate of approximately 35.8% for the six months ended June 30, 2016 compared to 36.3% for the six months ended June 30, 2015.

Earnings per common share from continuing operations: Earnings per common share-basic and diluted from continuing operations for the three months ended June 30, 2016 were $0.40 and $0.39, respectively. Earnings per common share-basic and diluted from continuing operations for the three months ended June 30, 2015 were $0.59 and $0.58, respectively. Earnings per common share-

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basic and diluted from continuing operations for the six months ended June 30, 2016 were $0.94 and $0.92, respectively. Earnings per common share-basic and diluted from continuing operations for the six months ended June 30, 2015 were $1.17 and $1.14, respectively.

Discontinued Operations

On March 3, 2015, we divested several of our agent-based businesses for $275.0 million in cash. This divestiture resulted in a first quarter 2015 gain on disposal of $48.6 million on a pre-tax basis and $29.6 million on an after-tax basis which was included within income from discontinued operations.

For additional information, see Note 2 to the Condensed Consolidated Financial Statements - DISCONTINUED OPERATIONS.

Liquidity and Capital Resources

We have historically financed our operations and capital expenditures primarily through cash flows from operations supplemented by borrowings under our senior secured credit facilities, revolving credit facilities and asset securitization facilities. In March 2015, we filed a registration statement with the Securities and Exchange Commission using a shelf registration process. As permitted under the registration statement, we may, from time to time, sell shares of our common stock, as market conditions permit, to finance our operations and capital expenditures or provide additional liquidity.

The Company’s Board of Directors has approved a share repurchase program under which the Company may repurchase up to an aggregate of $75.0 million of its outstanding common stock of which $53.0 million remains unused. Purchases under the program may be made from time to time through open market purchases, block transactions or privately negotiated transactions. The Company expects to fund the program using its cash on hand and cash generated from operations. The program may be suspended or discontinued at any time without prior notice.

Our current and anticipated uses of our cash, cash equivalents and marketable securities are to fund operating expenses, acquisitions, capital expenditures, interest payments, tax payments and quarterly dividends, repurchase common stock and repay principal on debt.

The following table summarizes our net cash flows by category from continuing operations for the periods presented:

	For the six months ended June 30,
(Amounts in thousands)	2016			2015			Change		% Change
Net cash flows from continuing operating activities	$	197,485		$	156,524		$	40,961		26.2	%
Net cash flows used in continuing investing activities	$	(42,584	)	$	(83,721	)	$	41,137		-49.1	%
Net cash flows used in continuing financing activities	$	(112,546	)	$	(290,742	)	$	178,196		-61.3	%

Net cash flows from continuing operating activities increased $41.0 million, or 26.2%, to $197.5 million for the six months ended June 30, 2016 compared to net cash flows from continuing operating activities of $156.5 million for the six months ended June 30, 2015. The increase in net cash flows from continuing operations is primarily due to lower income tax and interest payments compared to last year.  Last year’s tax payments were impacted by the gain on the divestiture of our agent-based businesses, while 2016 tax payments are reduced further due to accelerated amortization expense associated with the debt refinancing and an overpayment of 2015 tax being applied to 2016.  These improvements in cash flows from continuing operations were partially offset by a decrease in income from continuing operations and the timing of payments to vendors and a one day increase in the days sales outstanding (“DSO”). DSO, a key performance indicator that we utilize to monitor the accounts receivable average collection period and assess overall collection risk, was61 days at June 30, 2016, compared to 60 days at June 30, 2015. The increase in DSO of approximately one day decreased our net cash flows from continuing operating activities by approximately $6.4 million.

Net cash flows used in continuing investing activities decreased $41.1million to $42.6million for the six months ended June 30, 2016 compared to net cash flows used in continuing investing activities of $83.7 million for the six months ended June 30, 2015. The primary cause of this reduction in net cash flows used in continuing investing activities was the $38.4 million net proceeds we received in connection with the sale of buildings previously occupied by the businesses we divested in 2015. During the six months ended June 30, 2016, cash used for capital expenditures, primarily for the purchase of software and computer equipment for product enhancements and new contracts or clients, was $73.9 million compared to $64.9 million for the six months ended June 30, 2015. Net cash flows used for business acquisitions during the six months ended June 30, 2016 was $7.6 million less than the six months ended June 30, 2015. The timing of cash collections on behalf of certain Specialized Agent Services Cost Management clients and the subsequent remittance of cash to those clients resulted in a $4.2 million increase in other cash flows from investing activities during the six months ended June 30, 2016 compared to the six months ended June 30, 2015.

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Net cash flows used in continuing financing activities decreased $178.2 million to $112.5 million for the six months ended June 30, 2016 compared to net cash flows used in continuing financing activities of $290.7 million for the six months ended June 30, 2015.The decrease in cash used for continuing financing activities is primarily due to reduced repayments, net of proceeds, on our various credits facilities during the six months ended June 30, 2016of $169.3 million compared to thesix months ended June 30, 2015.  The reduction in repayments is primarily due to the repayment of $185.0 million on our Securitization Facility during the six months ended June 30, 2015. In connection with our refinancing during the six months ended June 30, 2016 we paid $25.3 million of deferred financing and other debt-related costs. During the six months ended June 30, 2016, we completed the repurchase of one million shares of our common stock in the open market for an aggregate purchase price of approximately $22.0 million. During the six months ended June 30, 2015, we completed the repurchase of two million shares of common stock in two private transactions for an aggregate purchase price of approximately $60.0 million.

As of June 30, 2016, the amount of cash and cash equivalents held by our foreign subsidiaries was $76.8 million. We have accrued U.S. taxes on $185.3 million of unremitted foreign earnings and profits. We have determined foreign earnings of approximately $231 million will be indefinitely reinvested. Based on our current projected capital needs and the current amount of cash and cash equivalents held by our foreign subsidiaries, we do not anticipate incurring any material tax costs beyond our accrued tax position in connection with such repatriation, but we may be required to accrue for unanticipated additional tax costs in the future if our expectations or the amount of cash held by our foreign subsidiaries change.

Subject to legally available funds, we presently intend to pay a quarterly cash dividend at a rate equal to approximately $19.0 million per quarter (or an annual rate of $76.0 million). Based on approximately 84.5 million shares of common stock subject to dividends, this implies a quarterly dividend of approximately $0.225 per share (or an annual dividend of approximately $0.90 per share). We anticipate funding our dividend with cash generated by our operations. The declaration and payment of all future dividends, if any, will be at the sole discretion of our Board of Directors. On August 1, 2016, we announced a $0.225 per common share quarterly dividend. The dividend is payable on September 1, 2016 to stockholders of record as of the close of business on August 22, 2016.

Given the Company’s current levels of cash on hand, anticipated cash flows from operations and available borrowing capacity, the Company believes it has sufficient liquidity to conduct its normal operations and pursue its business strategy in the ordinary course.

Long-term Obligations

Our long-term obligations are comprised of the following:

(i) Senior Secured Credit Facilities;

(ii) 5.375 percent notes due 2022 (the “2022 Senior Notes”) issued under an indenture;

(iii) 4.75 percent notes due 2021 (the “2021 Senior Secured Notes”) issued under an indenture; and

(iv) the Securitization Facility.

We and our subsidiaries, affiliates or significant stockholders may from time to time, in our sole discretion, purchase, repay, redeem or retire any of our outstanding debt or equity securities (including any publicly issued debt or equity securities), in privately negotiated or open market transactions, by tender offer or otherwise.

Senior Secured Credit Facilities

Term Loans

We have five tranches of term loans outstanding under our Senior Secured Credit Facilities: the 2018 Maturity Term Loans, the 2019 Maturity Term Loans, the 2021 Maturity A Term Loans, the 2021 Maturity B Term Loans and the 2023 Maturity Term Loans.  As of June 30, 2016, we had outstanding approximately $34.4 million of 2018 Maturity Term Loans, $78.8 million of 2019 Maturity Term Loans, $650 million of 2021 Maturity A Term Loans, $260.0 million of 2021 Maturity B Term Loans and $870.0 million of 2023 Maturity Term Loans.

On June 17, 2016 (the “Seventh Amendment Effective Date”), the Company, certain domestic subsidiaries of the Company, as subsidiary borrowers, Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and the various lenders party thereto modified the Senior Secured Credit Facilities by entering into Amendment No. 7 to Amended and Restated Credit Agreement (the “Seventh Amendment”), amending the Company’s Amended and Restated Credit Agreement, dated as of October 5, 2010, by and among the Company, Wells Fargo, as administrative agent, and the various lenders and other parties party thereto from time to time

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(as previously amended by Amendment No. 1 to Amended and Restated Credit Agreement, dated as of August 15, 2012, Amendment No. 2 to Amended and Restated Credit Agreement, dated as of October 24, 2012, Amendment No. 3 to Amended and Restated Credit Agreement, dated as of February 20, 2013, Amendment No. 4 to Amended and Restated Credit Agreement, dated as of January 24, 2014, Amendment No. 5 to Amended and Restated Credit Agreement, dated as of July 1, 2014, and Amendment No. 6 to Amended and Restated Credit Agreement, dated as of November 24, 2015, and, as further amended by the Seventh Amendment, the “Credit Agreement”).

With respect to our term loans, the Seventh Amendment:

· extended the maturity of a portion of the 2019 Maturity Term Loans, which mature July 1, 2019, to June 17, 2021 by converting such existing term loans into 2021 Maturity A Term Loans;

· extended the maturity of a portion of the 2018 Maturity Term Loans, which mature June 30, 2018, to June 17, 2023 by converting such existing term loans into 2023 Maturity Term Loans;

· provided for an increase of 2021 Maturity A Term Loans with incremental 2021 Maturity A Term Loans, which were added to and constitute a single class of term loans with the 2021 Maturity A Term Loans, such that the aggregate amount of 2021 Maturity A Term Loans (after giving effect to the incurrence of the incremental 2021 Maturity A Term Loans) is $650.0 million;

· provided for an increase of 2023 Maturity Term Loans with incremental 2023 Maturity Term Loans, which were added to and constitute a single class of term loans with the 2023 Maturity Term Loans, such that the aggregate amount of 2023 Maturity Term Loans (after giving effect to the incurrence of the incremental 2023 Maturity Term Loans) is $870.0 million;

· provided for new 2021 Maturity B Term Loans in an aggregate amount of $260.0 million with a maturity date of June 17, 2021;

· provided for annual amortization (payable in quarterly installments) in respect of the 2023 Maturity Term Loans in an amount equal to 1.0% of the original aggregate principal amount of the 2023 Maturity Term Loans outstanding on the Seventh Amendment Effective Date until the maturity date, at which point all remaining outstanding 2023 Maturity Term Loans shall become due and payable;

· provided for annual amortization (payable in quarterly installments) in respect of the 2021 Maturity B Term Loans in an amount equal to 1.0% of the original aggregate principal amount of the 2021 Maturity B Term Loans outstanding on the Seventh Amendment Effective Date until the maturity date, at which point all remaining outstanding 2021 Maturity B Term Loans shall become due and payable; and

· provided for annual amortization (payable in quarterly installments and based on the original aggregate principal amount of the 2021 Maturity A Term Loans outstanding on the Seventh Amendment Effective Date) in respect of the 2021 Maturity A Term Loans payable at a 2.5% annual rate for the three fiscal quarters in the nine month period ending March 31, 2017, a 5.0% annual rate for the four fiscal quarters in the year ending March 31, 2018, a 7.5% annual rate for the four fiscal quarters in the year ending March 31, 2019, a 10.0% annual rate for the four fiscal quarters in the year ending March 31, 2020 and a 2.5% quarterly rate thereafter until the maturity date, at which point all remaining outstanding 2021 Maturity A Term Loans shall become due and payable.

Proceeds of the 2021 Maturity A Term Loans, 2023 Maturity Term Loans and 2021 Maturity B Term Loans were used on the Seventh Amendment Effective Date, together with proceeds from the 2021 Senior Secured Notes offering described below, to partially prepay existing non-extending 2019 Maturity Term Loans and existing non-extending 2018 Maturity Term Loans and to fully prepay existing non-extending B-11 Term Loans.

The Seventh Amendment included a soft call option applicable to the 2021 Maturity B Term Loans and the 2023 Maturity Term Loans. The soft call option provides for the payment of a premium equal to 1.0% of the amount of the repricing payment in the event that, on or prior to December 17, 2016, the six-month anniversary of the Seventh Amendment Effective Date, West or its subsidiary borrowers enter into certain repricing transactions.

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Our Senior Secured Credit Facilities bear interest at variable rates. The effective annual interest rate, inclusive of debt amortization costs, on the Senior Secured Credit Facilities,but excluding accelerated debt amortization costs in connection with the terminated non-extended and extended revolving credit commitments and repayment of existing non-extending 2019 Maturity Term Loans, 2018 Maturity Term Loans and B-11 Term Loans,for the six months ended June 30, 2016 was 4.25% compared to 3.91% during the six months ended June 30, 2015.  With respect to the interest rates for our term loans, the Seventh Amendment provided for:

· an interest rate margin applicable to the 2021 Maturity A Term Loans that is based on the Company’s total leverage ratio and ranges from 1.75% to 2.50% for LIBOR rate loans (2.50%, as of June 30, 2016), subject to a 0.0% interest rate floor for the LIBOR component of LIBOR rate 2021 Maturity A Term Loans, and from 0.75% to 1.50% for base rate loans (1.50%, as of June 30, 2016);

· an interest rate margin applicable to the 2023 Maturity Term Loans equal to 3.00% for LIBOR rate loans and 2.00% for base rate loans, subject to a 0.75% interest rate floor for the LIBOR component of LIBOR rate 2023 Maturity Term Loans, and subject to a 1.75% interest rate floor for the base rate component of base rate 2023 Maturity Term Loans; and

· an interest rate margin applicable to the 2021 Maturity B Term Loans equal to 2.75% for LIBOR rate loans, and 1.75% for base rate loans, subject to a 0.75% interest rate floor for the LIBOR component of LIBOR rate 2021 Maturity B Term Loans, and subject to a 1.75% interest rate floor for the base rate component of base rate 2021 Maturity B Term Loans.

The Company may request additional committed term loan debt or increase the commitment amount to the revolving credit facility in an aggregate amount not to exceed $500.0 million, plus the aggregate principal payments made in respect of the term loans under the Credit Agreement following June 17, 2016 (excluding such payments made with proceeds of term loans issued in connection with the Seventh Amendment and the 2021 Senior Secured Notes offering). Availability of such additional tranches of term loans or increases to the revolving credit facility is subject to the absence of any default and pro forma compliance with financial covenants and, among other things, the receipt of commitments by existing or additional financial institutions.

Senior Secured Revolving Credit Facility

On June 17, 2016, we amended the Credit Agreement to provide for an extended senior secured revolving credit facility (the “Senior Secured Revolving Credit Facility”) in an aggregate principal amount of $300.0 million. The Senior Secured Revolving Credit Facility matures on June 17, 2021.  The proceeds of the Senior Secured Revolving Credit Facility may be used for working capital and general corporate purposes (including dividends and distributions and acquisitions).

The interest rate margins applicable to the Senior Secured Revolving Credit Facility are based on the Company’s total leverage ratio and range from 1.75% to 2.50% for LIBOR rate loans, subject to a 0.0% interest rate floor for the LIBOR component of LIBOR rate loans, and from 0.75% to 1.50% for base rate loans. As of June 30, 2016, the interest rate margins applicable to the Senior Secured Revolving Credit Facility were 2.50% for LIBOR rate loans and 1.50% for base rate loans. We are required to pay each non-defaulting lender a commitment fee of 0.375% in respect of any unused commitments under the Senior Secured Revolving Credit Facility, which fee is subject to adjustment based upon our total leverage ratio.

The Senior Secured Revolving Credit Facility was undrawn at June 30, 2016 and its predecessor senior secured revolving credit facility was undrawn at December 31, 2015. The Senior Secured Revolving Credit Facility and its predecessor senior secured revolving credit facility were undrawn during the six months ended June 30, 2016. The average daily outstanding balance on our senior secured revolving credit facility during the six months ended June 30, 2015 was $10.0 million.

Senior Notes

2021 Senior Secured Notes

On June 17, 2016, we issued $400.0 million 2021 Senior Secured Notes.  The 2021 Senior Secured Notes mature on June 17, 2021 and were issued at par. The 2021 Senior Secured Notes are secured, subject to certain exceptions and permitted liens, by a first-priority security interest in substantially all of our and our subsidiary guarantors’ property and assets which constitutes collateral under our Senior Secured Credit Facilities.  The 2021 Senior Secured Notes were offered in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”).

At any time prior to July 15, 2018, we may redeem all or a part of the 2021 Senior Secured Notes at a redemption price equal to 100% of the principal amount of 2021 Senior Secured Notes redeemed plus the applicable premium (as defined in the indenture governing the 2021 Senior Secured Notes) as of, and accrued and unpaid interest, if any, to, the date of redemption, subject to the rights of holders of 2021 Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date.

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At any time (which may be more than once) before July 15, 2018, we can choose to redeem up to 40% of the outstanding notes with proceeds from one or more equity offerings, as long as (i) we pay 104.750% of the face amount of the notes, plus accrued and unpaid interest; (ii) we redeem the notes within 90 days after completing the equity offering; and (iii) at least 60% of the aggregate principal amount of the notes issued remains outstanding afterwards.  We may also redeem, during any 12-month period commencing from July 15, 2016 until July 15, 2018, up to 10% of the original principal amount of the notes at a redemption price equal to 103% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the applicable redemption date.

On or after July 15, 2018, we may redeem the 2021 Senior Secured Notes, in whole or in part, at the redemption prices (expressed as percentages of principal amount of the 2021 Senior Secured Notes to be redeemed) set forth below, plus accrued and unpaid interest thereon, if any, to the applicable date of redemption, subject to the right of holders of record of 2021 Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date, if redeemed during the 12-month period beginning on July 15 of each of the years indicated below:

Year	Percentage
2018		102.375
2019		101.188
2020 and thereafter		100.000

2022 Senior Notes

On July 1, 2014, we issued $1.0 billion aggregate principal amount of 2022 Senior Notes. The 2022 Senior Notes mature on July 15, 2022 and were issued at par. The 2022 Senior Notes were offered in a private offering exempt from the registration requirements of the Securities Act.

At any time prior to July 15, 2017, we may redeem all or a part of the 2022 Senior Notes at a redemption price equal to 100% of the principal amount of 2022 Senior Notes redeemed plus the applicable premium (as defined in the indenture governing the 2022 Senior Notes) as of the redemption date plus accrued and unpaid interest to the redemption date, subject to the right of holders of 2022 Senior Notes on the relevant record date to receive interest due on the relevant interest payment date.

At any time (which may be more than once) before July 15, 2017, we can choose to redeem up to 40% of the outstanding notes with proceeds from one or more equity offerings, as long as (i) we pay 105.375% of the face amount of the notes, plus accrued and unpaid interest; (ii) we redeem the notes within 90 days after completing the equity offering; and (iii) at least 60% of the aggregate principal amount of the notes issued remains outstanding afterwards.

On and after July 15, 2017, we may redeem the 2022 Senior Notes in whole or in part at the redemption prices (expressed as percentages of principal amount of the 2022 Senior Notes to be redeemed) set forth below plus accrued and unpaid interest thereon to the applicable date of redemption, subject to the right of holders of 2022 Senior Notes of record on the relevant record date to receive interest due on the relevant interest payment date, if redeemed during the 12-month period beginning on July 15 of each of the years indicated below:

Year	Percentage
2017		104.031
2018		102.688
2019		101.344
2020 and thereafter		100.000

Securitization Facility

Under our revolving trade accounts receivable financing facility among the Company, certain of our originating domestic subsidiaries, West Receivables Holding LLC, West Receivables LLC and Wells Fargo (“Securitization Facility”), trade receivables originated by certain of our domestic subsidiaries are sold or contributed to West Receivables Holdings LLC. West Receivables Holdings LLC sells or contributes such trade receivables to West Receivables LLC, which sells undivided interests in the purchased or contributed trade receivables for cash to one or more financial institutions. The availability of the funding is subject to the level of eligible receivables after deducting certain concentration limits and reserves. The proceeds of the facility are available for general corporate purposes. The Securitization Facility provides a LIBOR spread on borrowings of 1.35% and for an unused commitment fee of 0.45% at any time the average daily borrowings during the month were less than 25% of the average daily available funding during such month and 0.25% at all other times.

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The Securitization Facility has been amended from time to time to add originators, modify eligibility criteria for receivables and clarify the facility’s reporting metrics.

West Receivables LLC and West Receivables Holdings LLC are consolidated in our unaudited condensed consolidated financial statements included elsewhere in this report. At June 30, 2016, $75.0 million was drawn under the Securitization Facility.  At December 31, 2015, the Securitization Facility was undrawn. The highest outstanding balance during the six months ended June 30, 2016 was $75.0 million.

Debt Covenants

Senior Secured Credit Facilities and Senior Secured Revolving Credit Facility—We are required to comply on a quarterly basis with a maximum total leverage ratio covenant and a minimum interest coverage ratio covenant. Pursuant to the Credit Agreement, the total leverage ratio of consolidated total debt to Consolidated EBITDA (as defined in our Credit Agreement) may not exceed 6.00 to 1.0 at June 30, 2016, and the interest coverage ratio of Consolidated EBITDA to the sum of consolidated interest expense must be not less than 1.85 to 1.0. The total leverage ratio will become more restrictive over time (adjusted annually until the maximum leverage ratio reaches 5.5 to 1.0 as of December 31, 2017). Both ratios are measured on a rolling four-quarter basis. We were in compliance with these financial covenants at June 30, 2016. Our ratio of total debt to Consolidated EBITDA (as defined in our Credit Agreement) was 4.47x and 4.68x at June 30, 2016 and December 31, 2015, respectively. The Credit Agreement also contains various negative covenants, including limitations on indebtedness, liens, mergers and consolidations, asset sales, dividends and distributions (excluding dividends and distributions to other restricted subsidiaries) or repurchases of our capital stock, investments, loans and advances, capital expenditures, payment of other debt, transactions with affiliates and changes in our lines of business. Each of the negative covenants is subject to specified exceptions. The Company has sufficient capacity under applicable exceptions included in the Credit Agreement to complete a dividend in excess of the Company’s net income for the six months ended June 30, 2016.

The Credit Agreement includes certain customary representations and warranties, affirmative covenants and events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to certain indebtedness, certain events of bankruptcy, certain events under ERISA, material judgments, the invalidity of material provisions of the documentation with respect to the Senior Secured Credit Facilities, the failure of collateral under the security documents for the Senior Secured Credit Facilities, the failure of the Senior Secured Credit Facilities to be senior debt under the subordination provisions of certain subordinated debt we may have outstanding from time to time and a change of control of us. If an event of default occurs, the lenders under the Senior Secured Credit Facilities will be entitled to take certain actions, including the acceleration of all amounts due under the Senior Secured Credit Facilities and all actions permitted to be taken by a secured creditor. We believe that for the foreseeable future, the Senior Secured Credit Facilities and the Senior Secured Revolving Credit Facility offer us sufficient capacity for our indebtedness financing requirements and we do not anticipate that the limitations on incurring additional indebtedness included in the Credit Agreement will materially impair our financial condition or results of operations.

2021 Senior Secured Notes and 2022 Senior Notes—The indentures governing the 2021 Senior Secured Notes and the 2022 Senior Notes, respectively, contain covenants limiting, among other things, our ability and the ability of our restricted subsidiaries to: incur additional debt or issue certain preferred shares, pay dividends on or make distributions in respect of our capital stock or make other restricted payments (excluding dividends, distributions and restricted payments to other restricted subsidiaries), make certain investments, sell certain assets, create liens on certain assets to secure debt, consolidate, merge, sell, or otherwise dispose of all or substantially all of our assets, enter into certain transactions with our affiliates and designate our subsidiaries as unrestricted subsidiaries. Each of the negative covenants is subject to specified exceptions. We were in compliance with these financial covenants at June 30, 2016. The Company has sufficient capacity under applicable exceptions included in the indentures governing the 2021 Senior Secured Notes and the 2022 Senior Notes, respectively, to complete a dividend in excess of the Company’s net income for the six months ended June 30, 2016.

Securitization Facility—The Securitization Facility contains various customary affirmative and negative covenants and also contains customary default and termination provisions which provide for acceleration of amounts owed under the program upon the occurrence of certain specified events, including, but not limited to, failure to pay yield and other amounts due, defaults on certain indebtedness, certain judgments, changes in control, certain events negatively affecting the overall credit quality of collateralized accounts receivable, bankruptcy and insolvency events and failure to meet financial tests requiring maintenance of certain leverage and coverage ratios, similar to those under our Senior Secured Credit Facilities.

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Our failure to comply with these debt covenants may result in an event of default which, if not cured or waived, could accelerate the maturity of our indebtedness. If our indebtedness is accelerated, we may not have sufficient cash resources to satisfy our debt obligations and we may not be able to continue our operations as planned. If our cash flows and capital resources are insufficient to fund our debt service obligations and keep us in compliance with the covenants under our Credit Agreement or to fund our other liquidity needs, we may be forced to reduce or delay capital expenditures, sell assets or operations, seek additional capital or restructure or refinance our indebtedness including the notes. We cannot ensure that we would be able to take any of these actions, that these actions would be successful and would permit us to meet our scheduled debt service obligations or that these actions would be permitted under the terms of our existing or future debt agreements, including our Senior Secured Credit Facilities and the indentures that govern the 2021 Senior Secured Notes and the 2022 Senior Notes. The Credit Agreement and the indentures that govern the 2021 Senior Secured Notes and the 2022 Senior Notes restrict our ability to dispose of assets and use the proceeds from the disposition. As a result, we may not be able to consummate those dispositions or use the proceeds to meet our debt service or other obligations, and any proceeds that are available may not be adequate to meet any debt service or other obligations then due.

If we cannot make scheduled payments on our debt, we will be in default, and as a result:

· our debt holders could declare all outstanding principal and interest to be due and payable;

· the lenders under our Senior Secured Credit Facilities and the Senior Secured Revolving Credit Facility could terminate their commitments to lend us money and, together with the holders of our 2021 Senior Secured Notes, foreclose against the assets securing our borrowings; and

· we could be forced into bankruptcy or liquidation.

Contractual Obligations

We have contractual obligations that may affect our financial condition. However, based on management’s assessment of the underlying provisions and circumstances of our material contractual obligations, management believes there is no known trend, demand, commitment, event or uncertainty that is reasonably likely to occur which would have a material effect on our financial condition or results of operations.

The following table summarizes our contractual obligations, in thousands, at June 30, 2016:

	Payment due by period
Contractual Obligations	Total		Less than 1 year		1 - 3 years		4 - 5 years		After 5 years
Senior Secured Term Loans due 2018	$	34,405	$	—	$	34,405	$	—	$	—
Asset Securitization Facility, due 2018		75,000		—		75,000		—		—
Senior Secured Term Loans due 2019		78,814		6,305		14,712		57,797
Senior Secured A Term Loans due 2021		650,000		20,313		89,375		540,312		—
Senior Secured B Term Loans due 2021		260,000		2,600		5,200		252,200		—
4 3/4% Senior Secured Notes due 2021		400,000		—		—		400,000		—
5 3/8% Senior Notes due 2022		1,000,000		—		—		—		1,000,000
Senior Secured B Term Loans due 2023		870,000		8,700		17,400		17,400		826,500
Interest payments on fixed rate debt		444,058		64,411		145,500		153,522		80,625
Estimated interest payments on variable rate debt (1)		409,376		68,472		138,094		129,376		73,434
Operating leases		133,994		24,642		38,897		24,052		46,403
Contractual minimums under telephony agreements (2)		12,500		10,500		2,000		—		—
Purchase obligations (3)		50,320		42,117		7,378		825		—
Total contractual cash obligations	$	4,418,467	$	248,060	$	567,961	$	1,575,484	$	2,026,962

(1) Interest rate assumptions based on July 12, 2016 LIBOR U.S. dollar swap rate curves for the next five years.

(2) Minimum payments over the contract life are based on projected telephony minutes. The contractual minimum is usage based and could vary based on actual usage.

(3) Represents future obligations for capital and expense projects that are in progress or are committed.

The table above excludes amounts to be paid for taxes and long-term obligations under our Executive Retirement Savings Plan and the Deferred Compensation Plan. The table also excludes amounts to be paid for income tax contingencies because the timing thereof is highly uncertain. At June 30, 2016, we had accrued $46.5 million, including interest and penalties for uncertain tax positions.

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Capital Expenditures

Our continuing operations require significant capital expenditures for technology, capacity expansion and upgrades. Capital expenditures were $73.9 million for the six months ended June 30, 2016 compared to $64.9 million for the six months ended June 30, 2015. We currently estimate our capital expenditures for 2016 to be between $135.0 million and $160.0 million, primarily for capacity expansion, product enhancements, development of new products and services, upgrades at existing facilities and data center consolidations.

Off-Balance Sheet Arrangements

Performance obligations of several of our subsidiaries are supported by performance bonds and letters of credit. These obligations will expire at various dates through 2017 and are renewed as required. The outstanding commitment on these obligations at June 30, 2016 was $6.7 million.

Effects of Inflation

We do not believe that inflation has had a material effect on our financial position or results of operations. However, there can be no assurance that our business will not be affected by inflation in the future.

CRITICAL ACCOUNTING POLICIES

The preparation of financial statements requires the use of estimates and assumptions on the part of management. The estimates and assumptions used by management are based on our historical experiences combined with management’s understanding of current facts and circumstances. Certain of our accounting policies are considered critical as they are both important to the portrayal of our financial condition and results of operations and require significant or complex judgment on the part of management. The accounting policies we consider critical are our accounting policies with respect to revenue recognition, allowance for doubtful accounts, goodwill and other intangible assets, income taxes, property and equipment, capitalization of internal costs and share-based compensation.

For additional discussion of these critical accounting policies, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our Annual Report on Form 10-K for the year ended December 31, 2015. There have not been any significant changes with respect to these policies during the six months ended June 30, 2016.

Item  3. Quantitative and Qualitative Disclosures About Market Risk

Market Risk Management

Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest rates, foreign currency exchange rates and changes in the market value of investments. The effect of inflation on our variable interest rate debt is discussed below in “Interest Rate Risk.”

Interest Rate Risk

As of June 30, 2016, we had $1,893.2 million outstanding under our Senior Secured Credit Facilities, $400.0 million outstanding under our 2021 Senior Secured Notes, $1.0 billion outstanding under our 2022 Senior Notes and $75.0 million outstanding under our Securitization Facility. Our total variable-rate debt was $1,968.2 million, or 58%, and total fixed-rate debt was $1,400.0 million or 42%.  

At June 30, 2016, the 30 and 90 day LIBOR rates were approximately 0.4603% and 0.6311%, respectively. An additional 50 basis point increase to LIBOR rates as of June 30, 2016 would have resulted in a quarterly increase in interest expense of approximately $2.1 million on our variable-rate debt, including the 2018 Maturity Term Loans, 2021 Maturity B Term Loans and 2023 Maturity Term Loans, each subject to a LIBOR interest rate floor of 75 basis points, and the 2019 Maturity Term Loans,2021 Maturity A Term Loans and Securitization Facility, neither of which include a LIBOR interest rate floor.

On July 26, 2016, we entered into a 5-year $550 million interest rate hedge program consisting of a $275 million 1-month LIBOR swap effective July 29, 2016 and a $275 million 3-month LIBOR swap with a forward starting effective date commencing June 30, 2017.  As a result of prevailing LIBOR rates, material rate increases on our variable rate debt are possible, albeit at a less impactful pace as a result of the aforementioned hedge program and implementation timeframe. .

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On a pro forma basis with the hedge program in effect, our fixed-rate debt as of June 30, 2016 would have been 58 percent compared to 30 percent as of March 31, 2016 and 42 percent as of June 30, 2016 without pro forma effect of the hedge program. For every 50 basis point increase in variable interest rates above the LIBOR interest rate floor, our quarterly interest expense would increase by approximately $2.5 million on an unhedged basis, or $1.8 million on a hedged basis

Foreign Currency Risk

Revenue and expenses from our foreign operations are typically denominated in local currency, thereby creating exposure to changes in exchange rates. Generally, we do not hedge our foreign currency transactions. Changes in exchange rates may positively or negatively affect our revenue and net income attributed to these subsidiaries. Based on our level of operating activities in foreign operations during the three months ended June 30, 2016, a ten percent change in the value of the U.S. dollar relative to the Euro and British Pound Sterling would have positively or negatively affected our net operating income by approximately 1.1%.

For the three and six months ended June 30, 2016, revenues from non-U.S. countries were approximately 21%, of consolidated revenues in both periods.   For both the three and six months ended June 30, 2015, revenues from non-U.S. countries were also approximately 21% of consolidated revenues. For both the three and six months ended June 30, 2016, revenue from the United Kingdom accounted for 13% of consolidated revenues. The United Kingdom was the only foreign country which accounted for greater than 10% of revenue.  At June 30, 2016 and December 31, 2015, long-lived assets from non-U.S. countries were approximately 8% of consolidated long-lived assets.  We have generally not entered into forward exchange or option contracts for transactions denominated in foreign currency to hedge against foreign currency risk.  We are exposed to translation risk because our foreign operations are in local currency and must be translated into U.S. dollars. As currency exchange rates fluctuate, translation of our Statements of Operations of non-U.S. businesses into U.S. dollars affects the comparability of revenue, expenses and operating income between periods.

Investment Risk

Periodically, we have entered into interest rate swap agreements (also referred to as cash flow hedges) to convert variable long-term debt to fixed rate debt. At June 30, 2016, we had no hedges outstanding.

On July 26, 2016, we entered into two interest rate swaps, a 1-month LIBOR swap and a 3-month LIBOR swap, both with a beginning notional value of $275.0 million and maturity date of July 17, 2021.  The 1-month LIBOR swap is effective July 29, 2016, with no amortization or variable interest rate floor.  The 3-month LIBOR Swap is effective June 30, 2017, with 1% amortization per year and a 75bps LIBOR floor.

Our objective in using interest rate swaps is to add stability to interest expense and to manage exposure to interest rate movements. The interest rate swaps will be used to hedge the variable cash flows associated with existing variable-rate debt.  As a result of the interest rate swaps, our debt portfolio has synthetically changed from 42% fixed-rate debt as of June 30, 2016 to 50% as of July 29, 2016.  With the impact of the 3-month LIBOR Swap, the fixed-rate debt will be 58%.

As required under ASC 815, Derivatives and Hedging, we will record the interest rate swaps on the balance sheet at fair value.  The interest rate swaps are considered cash flow hedges. We have elected to apply hedge accounting and believe the designated hedging relationship and terms of the interest rate swaps have satisfied the criteria necessary to apply hedge accounting.

The effective portion of changes in the fair value of the interest rate swaps will be recorded in Accumulated Other Comprehensive Loss and will be subsequently reclassified into earnings in the period that the hedged transactions affect earnings. The ineffective portion of the change in fair value of the interest rate swaps, if any, will be recognized in earnings.

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Item  4. Controls and Procedures 

Evaluation of disclosure controls and procedures. Our management team continues to review our internal controls and procedures and the effectiveness of those controls. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer and Treasurer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer and Treasurer concluded that, as of June 30, 2016, our disclosure controls and procedures are effective in ensuring that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms and (ii) that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer as appropriate to allow timely decisions regarding required disclosure.

Changes in internal control over financial reporting. There were no changes in our internal control over financial reporting or in other factors during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. No corrective actions were required or taken.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

In the ordinary course of business, we and certain of our subsidiaries are defendants in various litigation matters and are subject to claims from our clients for indemnification, some of which may involve claims for damages that are substantial in amount. We do not believe the disposition of claims currently pending will have a material adverse effect on our financial position, results of operations or cash flows.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risks described under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2015. If any of the risks described therein occur, our business, financial condition, liquidity and results of operations could be materially affected.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table shows our purchases of our common stock during the six months ended June 30, 2016:

Period	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (1)
January 1, 2016 to January 31, 2016		—	$	—		—	$	—
February 1, 2016 to February 29, 2016		376,931		20.66		376,931	$	67,206,910
March 1, 2016 to March 31, 2016		623,069		22.72		623,069	$	53,039,122
April 1, 2016 to April 30, 2016		—		—		—	$	53,039,122
May 1, 2016 to May 31, 2016		—		—		—	$	53,039,122
June 1, 2016 to June 30, 2016		—		—		—	$	53,039,122
Total		1,000,000	$	21.94		1,000,000

(1) On February 1, 2016, the Company announced that our Board of Directors had approved a share repurchase program under which the Company may repurchase up to an aggregate of $75.0 million of our outstanding common stock. Purchases under the program may be made from time to time through open market purchases, block transactions or privately negotiated transactions. In February 2016, we began to repurchase shares of our common stock in open market transactions.

During the six months ended June 30, 2016, 3,289 shares of our common stock were withheld to satisfy tax withholding obligations. These shares are permanently removed from the 2013 Long-Term Incentive Plan reserve.

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Item 6. Exhibits

4.01	Indenture, dated as of June 17, 2016, among West Corporation, the guarantors named on the signature pages thereto, U.S. Bank National Association, as Trustee, and U.S. Bank National Association, as Collateral Agent, with respect to the 4.750% senior secured notes due July 15, 2021(incorporated by reference to Exhibit 4.01 to Form 8-K filed June 21, 2016)
10.01	Amendment No. 7 to Amended and Restated Credit Agreement, dated as of June 17, 2016, by and among West Corporation, the Subsidiary Borrowers party thereto, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto, to the amended and restated credit agreement, dated as of October 5, 2010, by and among West Corporation, the lenders from time to time party thereto and Wells Fargo Bank, National Association, as administrative agent (incorporated by reference to Exhibit 10.01 to Form 8-K filed June 21, 2016)
10.02	Security Agreement dated, as of June 17, 2016, among West Corporation, the other grantors identified therein and U.S. Bank National Association, as Collateral Agent (incorporated by reference to Exhibit 10.02 to Form 8-K filed June 21, 2016)
10.03	Intellectual Property Security Agreement, dated as of June 17, 2016, among West Corporation, the other grantors identified therein and U.S. Bank National Association, as Collateral Agent (incorporated by reference to Exhibit 10.03 to Form 8-K filed June 21, 2016)
10.04	First Lien Intercreditor Agreement, dated as of June 17, 2016, among West Corporation, the other grantors party thereto, Wells Fargo Bank, National Association, as Credit Agreement Collateral Agent, and U.S. Bank National Association, as the Initial Other Authorized Representative (incorporated by reference to Exhibit 10.04 to Form 8-K filed June 21, 2016)
10.05	Amendment No. 2 to West Corporation 2013 Employee Stock Purchase Plan, as amended and restated effective September 10, 2013 (incorporated by reference to Exhibit 10.1 to Form 8-K filed May 20, 2016)(1)
15.01	Awareness letter of Independent Registered Public Accounting Firm
31.01	Certification pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.02	Certification pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.01	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.02	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Financial statements from the quarterly report on Form 10-Q of West Corporation for the quarter ended June 30, 2016, filed on August 4, 2016, formatted in XBRL: (i) the Condensed Consolidated Statements of Income; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Cash Flows; (v) the Condensed Consolidated Statements of Stockholders’ Deficit; and (vi) the Notes to Condensed Consolidated Financial Statements

(1) Indicates management contract or compensation plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

WEST CORPORATION
By:	/s/ Thomas B. Barker
	Thomas B. Barker
	Chief Executive Officer
By:	/s/ Jan D. Madsen
	Jan D. Madsen
	Chief Financial Officer and Treasurer
By:	/s/ R. Patrick Shields
	R. Patrick Shields
	Senior Vice President -
	Chief Accounting Officer

Date: August 4, 2016

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Exhibit Index

Exhibit Number
4.01	Indenture, dated as of June 17, 2016, among West Corporation, the guarantors named on the signature pages thereto, U.S. Bank National Association, as Trustee, and U.S. Bank National Association, as Collateral Agent, with respect to the 4.750% senior secured notes due July 15, 2021(incorporated by reference to Exhibit 4.01 to Form 8-K filed June 21, 2016)
10.01	Amendment No. 7 to Amended and Restated Credit Agreement, dated as of June 17, 2016, by and among West Corporation, the Subsidiary Borrowers party thereto, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto, to the amended and restated credit agreement, dated as of October 5, 2010, by and among West Corporation, the lenders from time to time party thereto and Wells Fargo Bank, National Association, as administrative agent (incorporated by reference to Exhibit 10.01 to Form 8-K filed June 21, 2016)
10.02	Security Agreement dated, as of June 17, 2016, among West Corporation, the other grantors identified therein and U.S. Bank National Association, as Collateral Agent (incorporated by reference to Exhibit 10.02 to Form 8-K filed June 21, 2016)
10.03	Intellectual Property Security Agreement, dated as of June 17, 2016, among West Corporation, the other grantors identified therein and U.S. Bank National Association, as Collateral Agent (incorporated by reference to Exhibit 10.03 to Form 8-K filed June 21, 2016)
10.04	First Lien Intercreditor Agreement, dated as of June 17, 2016, among West Corporation, the other grantors party thereto, Wells Fargo Bank, National Association, as Credit Agreement Collateral Agent, and U.S. Bank National Association, as the Initial Other Authorized Representative (incorporated by reference to Exhibit 10.04 to Form 8-K filed June 21, 2016)
10.05	Amendment No. 2 to West Corporation 2013 Employee Stock Purchase Plan, as amended and restated effective September 10, 2013 (incorporated by reference to Exhibit 10.1 to Form 8-K filed May 20, 2016)(1)
15.01	Awareness letter of Independent Registered Public Accounting Firm
31.01	Certification pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.02	Certification pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.01	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.02	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Financial statements from the quarterly report on Form 10-Q of West Corporation for the quarter ended June 30, 2016, filed on August 4, 2016, formatted in XBRL: (i) the Condensed Consolidated Statements of Income; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Cash Flows; (v) the Condensed Consolidated Statements of Stockholders’ Deficit; and (vi) the Notes to Condensed Consolidated Financial Statements

(1) Indicates management contract or compensation plan or arrangement.

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EX-15.01

Exhibit 15.01

August 4, 2016

To the Board of Directors and Stockholders of

West Corporation

11808 Miracle Hills Drive

Omaha, Nebraska  68154

We have reviewed, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the unaudited interim financial information of West Corporation and subsidiaries for the periods ended June 30, 2016 and 2015, as indicated in our report dated August 4, 2016; because we did not perform an audit, we expressed no opinion on that information.

We are aware that our report referred to above, which is included in your Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, is incorporated by reference in Registration Statement No. 333-187452 on Form S-8 and Registration Statement No. 333-202622 on Form S-3.

We also are aware that the aforementioned report, pursuant to Rule 436(c) under the Securities Act of 1933, is not considered a part of the Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of that Act.

/s/ Deloitte & Touche LLP

Omaha, Nebraska

EX-31.01

Exhibit 31.01

CERTIFICATION

I, Thomas B. Barker, certify that:

1. I have reviewed this quarterly report on Form 10-Q of West Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2016	/s/ Thomas B. Barker
	Thomas B. Barker
	Chief Executive Officer

EX-31.02

Exhibit 31.02

CERTIFICATION

I, Jan D. Madsen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of West Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2016	/s/ Jan D. Madsen
	Jan D. Madsen
	Chief Financial Officer and Treasurer

EX-32.01

Exhibit 32.01

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of West Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas B. Barker, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Thomas B. Barker

Thomas B. Barker

Chief Executive Officer

August 4, 2016

EX-32.02

Exhibit 32.02

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of West Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jan D. Madsen, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Jan D. Madsen

Jan D. Madsen

Chief Financial Officer and Treasurer

August 4, 2016

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 29, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	WSTC
Entity Registrant Name	WEST CORP
Entity Central Index Key	0001024657
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		82,738,887

XML

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
REVENUE	$ 582,397	$ 571,891	$ 1,153,176	$ 1,137,381
COST OF SERVICES	249,426	245,266	490,438	484,967
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	209,870	210,192	430,713	425,288
OPERATING INCOME	123,101	116,433	232,025	227,126
OTHER INCOME (EXPENSE):
Interest expense, net of interest income of $20, $173, $290 and $199	(37,712)	(38,433)	(76,195)	(77,275)
Accelerated amortization of deferred financing costs	(35,235)	0	(35,235)	0
Other, net	1,214	(100)	174	3,739
Other expense	(71,733)	(38,533)	(111,256)	(73,536)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE	51,368	77,900	120,769	153,590
INCOME TAX EXPENSE ATTRIBUTED TO CONTINUING OPERATIONS	18,389	28,677	43,235	55,733
INCOME FROM CONTINUING OPERATIONS	32,979	49,223	77,534	97,857
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	0	358	0	32,224
NET INCOME	$ 32,979	$ 49,581	$ 77,534	$ 130,081
EARNINGS PER COMMON SHARE—BASIC:
Continuing Operations	$ 0.40	$ 0.59	$ 0.94	$ 1.17
Discontinued Operations	0	0	0	0.38
Total Earnings Per Common Share—Basic	0.40	0.59	0.94	1.55
EARNINGS PER COMMON SHARE—DILUTED:
Continuing Operations	0.39	0.58	0.92	1.14
Discontinued Operations	0	0	0	0.37
Total Earnings Per Common Share—Diluted	$ 0.39	$ 0.58	$ 0.92	$ 1.51
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic Common	82,598	83,394	82,874	83,758
Diluted Common	84,281	85,592	84,425	85,920
DIVIDENDS DECLARED:
Dividends declared per share	$ 0.225	$ 0.225	$ 0.45	$ 0.45

XML

Condensed Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Interest income	$ 20	$ 173	$ 290	$ 199

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 32,979	$ 49,581	$ 77,534	$ 130,081
Foreign currency translation adjustments, net of tax of $4,779, ($4,762), $3,010 and $12,371	(8,571)	8,171	(5,398)	(21,718)
Comprehensive income	$ 24,408	$ 57,752	$ 72,136	$ 108,363

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax	$ 4,779	$ (4,762)	$ 3,010	$ 12,371

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 223,415	$ 182,338
Trust and restricted cash	17,205	19,829
Accounts receivable, net of allowance of $7,380 and $7,270	392,164	373,087
Income taxes receivable	0	19,332
Prepaid assets	52,279	43,093
Deferred expenses	54,130	65,781
Other current assets	27,020	22,040
Assets held for sale	0	17,672
Total current assets	766,213	743,172
PROPERTY AND EQUIPMENT:
Property and equipment	1,096,009	1,053,678
Accumulated depreciation and amortization	(757,383)	(718,834)
Total property and equipment, net	338,626	334,844
GOODWILL	1,920,707	1,915,690
INTANGIBLE ASSETS, net of accumulated amortization of $619,867 and $583,623	342,739	370,021
OTHER ASSETS	178,316	191,490
TOTAL ASSETS	3,546,601	3,555,217
CURRENT LIABILITIES:
Accounts payable	78,513	92,935
Deferred revenue	152,397	161,828
Accrued expenses	227,867	219,234
Current maturities of long-term debt	37,918	24,375
Total current liabilities	496,695	498,372
LONG-TERM OBLIGATIONS, less current maturities	3,290,940	3,318,688
DEFERRED INCOME TAXES	103,062	104,222
OTHER LONG-TERM LIABILITIES	178,336	186,073
Total liabilities	4,069,033	4,107,355
COMMITMENTS AND CONTINGENCIES (Note 12)	0	0
STOCKHOLDERS’ DEFICIT
Common Stock $0.001 par value, 475,000 shares authorized, 85,707 and 85,459 shares issued and 82,615 and 83,367 shares outstanding	86	85
Additional paid-in capital	2,210,910	2,193,193
Retained deficit	(2,568,068)	(2,607,415)
Accumulated other comprehensive loss	(78,134)	(72,736)
Treasury stock at cost (3,092 and 2,092 shares)	(87,226)	(65,265)
Total stockholders’ deficit	(522,432)	(552,138)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$ 3,546,601	$ 3,555,217

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 7,380	$ 7,270
Accumulated amortization	$ 619,867	$ 583,623
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	475,000	475,000
Common stock, shares issued	85,707	85,459
Common stock, shares outstanding	82,615	83,367
Treasury stock, shares	3,092	2,092

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 77,534	$ 130,081
Adjustments to reconcile net income to net cash flows from operating activities:
Income from discontinued operations, net of income taxes	0	(32,224)
Depreciation	57,458	54,194
Amortization	39,944	39,469
Provision for share-based compensation	13,841	11,411
Deferred income tax (benefit) expense	(3,755)	2,202
Amortization of deferred financing costs	44,053	10,009
Increase in acquisition contingent consideration	644	0
(Gain) loss on sale of property and equipment	(12,607)	220
Changes in operating assets and liabilities
Accounts receivable	(13,957)	(20,977)
Other assets	6,852	(23,675)
Accounts payable	(10,830)	18,812
Accrued wages and benefits	4,168	(3,741)
Accrued interest	(8,420)	(19,524)
Other liabilities and income tax payable	2,560	(9,733)
Net cash flows from continuing operating activities	197,485	156,524
Net cash flows from discontinued operating activities	0	(6,962)
Total net cash flows from operating activities	197,485	149,562
CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisitions	(9,745)	(17,296)
Purchases of property and equipment	(73,864)	(64,864)
Proceeds from the sale of property and equipment	38,368	0
Other	2,657	(1,561)
Net cash flows from continuing investing activities	(42,584)	(83,721)
Net cash flows from discontinued investing activities	0	269,540
Total net cash flows from investing activities	(42,584)	185,819
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayments on long-term obligations	(2,286,906)	(16,246)
Proceeds from issuance of notes	400,000	0
Payments on revolving credit facilities	(10,000)	(324,000)
Payment of deferred financing and other debt-related costs	(25,273)	(234)
Proceeds from stock options and ESPP shares including excess tax benefits	3,927	8,462
Dividends paid	(37,333)	(37,767)
Repurchase of common stock	(21,961)	(59,957)
Net cash flows from continuing financing activities	(112,546)	(290,742)
Net cash flows from discontinued financing activities	0	0
Total net cash flows from financing activities	(112,546)	(290,742)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	(1,278)	(1,208)
NET CHANGE IN CASH AND CASH EQUIVALENTS	41,077	43,431
CASH AND CASH EQUIVALENTS, Beginning of period	182,338	115,061
CASH AND CASH EQUIVALENTS, End of period	223,415	158,492
Term Loan Facility
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from facilities	1,780,000	0
Revolving Credit Facility
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from facilities	$ 85,000	$ 139,000

XML

Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid - in Capital [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
BALANCE at Dec. 31, 2014	$ (659,641)	$ 84	$ 2,155,864	$ (2,772,775)	$ (37,506)	$ (5,308)
BALANCE, shares at Dec. 31, 2014		84,179,806
Net income	130,081			130,081
Dividends declared (cash dividend of $0.45 per share)	(38,369)			(38,369)
Foreign currency translation adjustment, net	(21,718)				(21,718)
Purchase of stock at cost	(59,957)					(59,957)
Purchase of stock at cost, shares		(2,000,000)
Executive Deferred Compensation Plan activity	4,042		4,042
Executive Deferred Compensation Plan activity, shares		49,307
Shares issued from the Employee Stock Purchase Plan	3,745		3,745
Shares issued from the Employee Stock Purchase Plan, shares		131,865
Stock options exercised including related tax benefits	5,632	$ 1	5,631
Stock options exercised including related tax benefits, shares		251,943
Issuance of shares	(198)		(198)
Issuance of shares, shares		16,042
Share-based compensation	10,461		10,461
BALANCE at Jun. 30, 2015	(625,922)	$ 85	2,179,545	(2,681,063)	(59,224)	(65,265)
BALANCE, shares at Jun. 30, 2015		82,628,963
BALANCE at Dec. 31, 2015	(552,138)	$ 85	2,193,193	(2,607,415)	(72,736)	(65,265)
BALANCE, shares at Dec. 31, 2015		83,366,888
Net income	77,534			77,534
Dividends declared (cash dividend of $0.45 per share)	(38,187)			(38,187)
Foreign currency translation adjustment, net	(5,398)				(5,398)
Purchase of stock at cost	$ (21,961)					(21,961)
Purchase of stock at cost, shares	(1,000,000)	(1,000,000)
Executive Deferred Compensation Plan activity	$ 1,522		1,522
Executive Deferred Compensation Plan activity, shares		12,964
Shares issued from the Employee Stock Purchase Plan	3,460	$ 1	3,459
Shares issued from the Employee Stock Purchase Plan, shares		182,285
Stock options exercised including related tax benefits	649		649
Stock options exercised including related tax benefits, shares		29,475
Issuance of shares	(63)		(63)
Issuance of shares, shares		23,975
Share-based compensation	12,150		12,150
BALANCE at Jun. 30, 2016	$ (522,432)	$ 86	$ 2,210,910	$ (2,568,068)	$ (78,134)	$ (87,226)
BALANCE, shares at Jun. 30, 2016		82,615,587

XML

Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash dividend per share	$ 0.45	$ 0.45
Retained Deficit [Member]
Cash dividend per share	$ 0.45	$ 0.45

XML

Organization, Consolidation and Presentation of Financial Statements

6 Months Ended

Jun. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements

1. ORGANIZATION, CONSOLIDATION AND PRESENTATION OF FINANCIAL STATEMENTS

Business Description: West Corporation (the “Company” or “West”) is a global provider of technology-enabled communication services. “We,” “us” and “our” also refer to West and its consolidated subsidiaries, as applicable. We offer a broad range of communication and network infrastructure solutions that help manage or support essential communications. These solutions include unified communications services, safety services, interactive services such as automated notifications, specialized agent services and telecom services.

The scale and processing capacity of our technology platforms, combined with our expertise in managing multichannel interactions, enable us to provide reliable, high-quality, mission-critical communications designed to maximize return on investment for our clients and help them build smarter, more meaningful connections. We are dedicated to delivering and improving upon new channels, new capabilities and new choices for how businesses and consumers collaborate, connect and transact.

Our clients include Fortune 1000 companies, along with small and medium enterprises in a variety of industries, including telecommunications, retail, financial services, public safety, education, technology and healthcare. We have sales and/or operations in the United States, Canada, Europe, the Middle East, Asia-Pacific, Latin America and South America.

Our Services

· Unified Communications Services. We provide our clients with a range of integrated unified communications services. We offer our clients a complete cloud-based unified communications solution which consists of enterprise voice, conferencing and collaboration, network management, unified messaging and presence, contact center and client application integration. We combine reliable technologies with experience and flexibility to provide solutions that are easy to use and scalable for every client’s specific needs. Our products and services can improve many aspects of business by enabling personalized engagement, meetings anywhere, enhanced productivity and immersive communication experiences.

·Telecom Services. We provide local and national tandem switching services that facilitate an efficient exchange of network traffic between originating and terminating networks throughout the U.S. We connect people and unite networks by delivering interconnection services for all types of providers, including wireless, wireline, cable and voice over internet protocol (“VoIP”). We operate a next-generation technology-agnostic national network providing a cost effective means for time-division multiplexing to internet protocol (“IP”) conversion for IP networks that require access to the public switched telephone network. We provide carrier-grade interconnections that reduce cost and merge traditional telecom, mobile and IP technologies onto a common, efficient backbone. Telecom Services also provides much of the telecommunications network infrastructure that supports our conferencing and collaboration business.

·Safety Services. We provide 9-1-1 call routing, call location creation and delivery, and call delivery and accuracy compliance tools to the majority of U.S.-based telecommunications service providers. We provide technology solutions for wireline and wireless carriers; satellite, telematics and cable operators; VoIP providers; alarm/security companies; as well as public safety, government agencies and enterprises. West services the public and personal safety ecosystem with networks and an understanding of safety needs. We continue to innovate and develop next-generation industry solutions that match new technologies. We connect people to first responders—firefighters, law enforcement, ambulance services, and the telecommunicators answering calls in public safety answering points. Our seamless and fault tolerant infrastructure along with our data management experience and expertise are the underpinning for individuals’ requests for assistance that require the ability to be located, and have calls routed and delivered to the correct public safety agency.

·Interactive Services. We design, integrate, deliver, manage and optimize applications, services, platforms and networks that aim to create a better customer experience, strengthen customer engagement and drive efficiencies for our clients. We specialize in cloud-based communication solutions that drive a smart, personalized and convenient customer experience, including interactive voice response (“IVR”) self-service, proactive notifications and mobility, cloud contact center and comprehensive professional services. Our technology uses an omni-channel approach that brings together voice, text, email, push notification, fax, video, web, social media, hosted contact center and mobile to create a connected customer experience across channels. Our high-capacity and high-availability platform can be deployed in a number of ways and integrated with other inbound and outbound communication channels. In most cases, our technology also directly interfaces with our clients’ internal systems, including customer relationship management, private branch exchange and enterprise reporting platforms.

·Specialized Agent Services. We provide our clients a combination of highly skilled subject matter experts with proven analytics and technology to provide solutions for the fast-growing healthcare market. We believe we are the leading provider of healthcare advocacy products and services to employees of large organizations. We also help health insurance payers, third-party administrators and self-insured employers improve cash flow and reduce healthcare costs by identifying and recovering overpaid and third-party liability claims. Additionally, we offer business-to-business sales across multiple vertical markets with a focus on increasing our clients’ market share and improving customer relationships.

Our five operating segments (Unified Communications Services, Telecom Services, Safety Services, Interactive Services and Specialized Agent Services) are aggregated into four reportable segments as follows:

· Unified Communications Services, which includes conferencing and collaboration services, unified communications as a service (“UCaaS”) solutions and telecom services;

· Safety Services, including 9-1-1 network services, 9-1-1 telephony systems and services, 9-1-1 solutions for enterprises and database management;

· Interactive Services, including proactive notifications and mobility, IVR self-service, cloud contact center and professional services; and

· Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation services.

Discontinued Operations—On March 3, 2015, we divested several of our agent-based businesses, including our consumer facing customer sales and lifecycle management, account services and receivables management businesses, for $275.0 million in cash. We completed the divestiture pursuant to a purchase agreement executed January 7, 2015 and in accordance with a plan approved by our Board of Directors on December 30, 2014.

Basis of Consolidation—The unaudited condensed consolidated financial statements include the accounts of West and its wholly-owned subsidiaries and reflect all adjustments (all of which are normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the year ended December 31, 2015. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Our results for the three and six months ended June 30, 2016 are not necessarily indicative of what our results will be for other interim periods or for the full fiscal year.

Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition—Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, price is fixed or determinable and collectability is reasonably assured. Amounts billed in advance of providing service are deferred and recorded as deferred revenue or other long-term liabilities on the balance sheet until service has been provided.

Dividend—We funded the dividends paid in 2015 and the first six months of 2016 with cash generated by our operations and we anticipate funding future dividends with cash generated by our operations. The declaration and payment of all future dividends, if any, will be at the sole discretion of our Board of Directors. On each of March 3, 2016 and May 26, 2016, we paid a $0.225 per common share quarterly dividend. The total dividend paid was approximately $18.8 million and $18.6 million to stockholders of record as of the close of business on February 22, 2016 and May 16, 2016, respectively. On August 1, 2016, we announced a $0.225 per common share quarterly dividend. The dividend is payable September 1, 2016 to stockholders of record as of the close of business on August 22, 2016.

Share Repurchase—Under a share repurchase program approved by the Company’s Board of Directors during the first quarter of 2016 authorizing the repurchase of up to an aggregate of $75 million of outstanding common stock, the Company purchased 1,000,000 shares of common stock through the open market during the first six months of 2016 for an aggregate purchase price of approximately $22.0 million, which was funded with cash on hand.

Assets Held for Sale—On June 21, 2016, we completed the sale of land, buildings and improvements which were previously classified as held for sale and primarily used by the agent-based businesses we divested in 2015.  Proceeds from the sale were $38.8 million, excluding related expenses. In connection with this sale, we realized a pre-tax gain of approximately $19.0 million.  We also entered into a twelve year leaseback agreement for one of the buildings.  This lease is classified as an operating lease and the related $6.1 million gain, included in the $19.0 million realized gain, is being deferred and will be recognized over the lease term.

Recently Implemented Accounting Pronouncements—In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires capitalized debt issuance costs to be presented as a reduction to the carrying value of debt instead of being classified as a deferred charge, as previously required. This ASU became effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015, and interim periods within those annual periods. We adopted this guidance as of January 1, 2016, and as a result have recast the December 31, 2015 consolidated balance sheet to conform to the current period presentation. The adoption of this standard reduced previously presented other assets and long-term debt by $57.1 million each, based upon the balance of unamortized debt issuance costs relating to our senior secured term loan facilities and senior notes recorded as of December 31, 2015.

In November 2015, the FASB issued ASU 2015-017, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which changes the presentation of deferred income taxes in the balance sheet. Under the new guidance, deferred tax assets and liabilities will be classified as non-current in the balance sheet. The guidance is effective for annual periods beginning after December 15, 2016. The new guidance allows for prospective or retrospective application and early adoption is permitted. We adopted this guidance as of April 1, 2016, and elected retrospective application recasting the December 31, 2015 consolidated balance sheet to conform to the current period presentation. The adoption of this standard reduced previously presented accrued expenses and increased deferred income taxes by $1.7 million each, as of December 31, 2015.

Recent Accounting Pronouncements—In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326).  The amendments in this update will require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented at the net amount expected to be collected. This amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018.  Adoption of this update is required through a cumulative-effect adjustment to retained deficit as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of assessing the impact of this standard on its financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718). The amendments in this update will simplify several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of assessing the impact of this standard on its financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this update will increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 is required to be applied with a modified retrospective approach to each prior reporting period presented.  The Company is in the process of assessing the impact of this standard on its financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The new standard will become effective for the Company beginning with the first quarter of 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is in the process of assessing the impact and adoption transition options of this standard on its financial statements.

XML

Discontinued Operations

6 Months Ended

Jun. 30, 2016

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

2. DISCONTINUED OPERATIONS

On March 3, 2015, we divested several of our agent-based businesses for $275.0 million in cash. The divestiture resulted in a 2015 gain of $48.2 million on an after-tax basis which was included within income from discontinued operations. The $48.2 million gain included a $21.6 million tax benefit in 2015 due to the deferred tax benefit associated with excess outside basis over financial reporting basis.

The following table summarizes the results of discontinued operations for the three and six months ended June 30, 2015:

(Amounts in thousands)	Three months ended June 30, 2015		Six months ended June 30, 2015
Revenue	$	—	$	102,251
Operating income		551		3,851
Gain on disposal		—		48,556
Income before income tax expense		551		52,234
Income tax expense		193		20,010
Income from discontinued operations	$	358	$	32,224

There was no income or loss from discontinued operations during the first half of 2016.

We have agreed to indemnify the buyer, up to the full purchase price, with respect to the equity interests of the companies we sold, title to the equity and assets sold and the authority of the Company to sell the equity and assets. The Company has also agreed to indemnify the buyer for breaches of other representations and warranties in the purchase agreement for up to $13.75 million in losses.

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Acquisitions

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Acquisitions

3. ACQUISITIONS

Synrevoice

On March 14, 2016, we completed the acquisition of substantially all of the assets of Synrevoice Technologies, Inc. (“Synrevoice”). Synrevoice, based in Markham, Ontario, is a provider of messaging and notification services to the K-12 education and commercial markets in North America. The purchase price was approximately $9.3 million and was funded with cash on hand. This business is included in the Interactive Services reportable segment.

In the preliminary purchase price allocation, approximately $4.9 million was allocated to goodwill, which is partially deductible for income tax purposes, and $6.5 million was allocated to other intangible assets. The primary factors that contributed to a purchase price resulting in the recognition of goodwill for the acquisition of Synrevoice were the expansion of our interactive services further into the education vertical market and anticipated synergies which are expected to result in a more efficient and faster growing K-12 business in North America.

ClientTell

On November 2, 2015, we completed the acquisition of ClientTell, Inc., and ClientTell Labs, LLC (collectively “ClientTell”), which provide automated notifications and lab reporting services in the healthcare industry. The purchase price was approximately $38.4 million in cash, plus assumed liabilities, and was funded with cash on hand. Up to an additional $10.5 million in cash may be paid based on achievement of certain financial objectives during the five years ending December 31, 2020. The fair value of this contingent consideration arrangement was $5.4 million as of the date of acquisition and $5.3 million, net of a $1.0 million payment made in the first half of 2016, as of June 30, 2016.

Approximately $15.0 million of the purchase price was allocated to goodwill and $26.3 million to other intangible assets. The goodwill is deductible for income tax purposes. The primary factors that contributed to a purchase price resulting in the recognition of goodwill for the acquisition of ClientTell were the expansion of our interactive services further into the healthcare vertical market, anticipated synergies and other intangibles that do not qualify for separate recognition. This business has been integrated into the Interactive Services reportable segment.

Magnetic North

On October 31, 2015, we completed the acquisition of Magnetic North Software Limited (“Magnetic North”) for approximately $39.2 million in cash net of cash acquired, plus assumed liabilities, which was funded with cash on hand. Magnetic North is a U.K.-based provider of inbound/outbound/blended, multi-channel customer engagement technology solutions with multi-media routing, advanced analytics and compliance functionality and integrated, hosted voice and unified communications platforms to customers throughout Europe, the Middle East and Africa (“EMEA”) and the Americas.

In the preliminary purchase price allocation, approximately $25.1 million was allocated to goodwill and $16.4 million to other intangible assets. The goodwill is not deductible for income tax purposes. The primary factors that contributed to a purchase price resulting in the recognition of goodwill for the acquisition of Magnetic North were its portfolio of complementary customer contact center and unified communications solutions, anticipated synergies and other intangibles that do not qualify for separate recognition. This business has been integrated into the Unified Communications Services reportable segment.

SharpSchool

Effective June 1, 2015, we completed the acquisition of substantially all of the assets of Intrafinity, Inc., doing business as SharpSchool (“SharpSchool”), a leading provider of website and content management system software-as-a-service solutions for the K-12 education market. The purchase price was approximately $17.2 million and was funded with cash on hand.

In the purchase price allocation, goodwill of $8.3 million, partially deductible for tax purposes under Canadian tax rules governing asset acquisitions, and finite-lived intangible assets of $9.1 million were recorded. The primary factors that contributed to a purchase price resulting in the recognition of goodwill for the acquisition of SharpSchool were the expansion of our interactive services further into the education vertical market and anticipated synergies which are expected to result in a more efficient and faster growing K-12 business for West. SharpSchool has been integrated into the Interactive Services reportable segment.

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the respective acquisition dates for Synrevoice and Magnetic North and the final fair value of assets acquired and liabilities assumed for ClientTell and SharpSchool.

(Amounts in thousands)	Synrevoice			ClientTell		Magnetic North		SharpSchool
Working Capital	$	(2,118	)	$	501	$	212	$	(1,042	)
Property and equipment		21			429		574		782
Other assets, net		—			2		—		77
Intangible assets		6,455			26,300		16,361		9,092
Goodwill		4,893			15,004		25,060		8,254
Total assets acquired		9,251			42,236		42,207		17,163
Non-current deferred taxes		—			—		3,050		—
Long-term liabilities		—			3,828		—		—
Total liabilities assumed		—			3,828		3,050		—
Net assets acquired	$	9,251		$	38,408	$	39,157	$	17,163

Acquisition costs incurred for prospective acquisitions and completed acquisitions for the three months ended June 30, 2016 and 2015 of $1.4 million and $0.8 million, respectively, are included in selling, general and administrative expenses.  Acquisition costs incurred for prospective acquisitions and completed acquisitions for the six months ended June 30, 2016 and 2015 of $2.5 million and $1.6 million, respectively, are included in selling, general and administrative expenses.

The excess of the acquisition costs over the fair value of the assets acquired and liabilities assumed for the purchase of Magnetic North and Synrevoice were assigned to goodwill based on preliminary estimates. We are in the process of completing the acquisition accounting for certain intangible assets and liabilities. The process of completing the acquisition accounting involves numerous time consuming steps for information gathering, verification and review. We expect to finalize this process within twelve months following the respective acquisition dates.

Pro forma

The following unaudited pro forma financial information presents the combined results of operations as if the acquisitions of Synrevoice, ClientTell, Magnetic North, and SharpSchool (collectively, the acquirees) occurred as of the beginning of the period presented. The pro forma results contained in the table below include adjustments for amortization of acquired intangibles, finance and acquisition costs as well as related income taxes.

	Three Months Ended		Six Months Ended June 30,
	June 30, 2015		2016		2015
Revenue	$	579,541	$	1,154,081	$	1,153,098
Income from continuing operations	$	48,370	$	77,406	$	96,431
Income per common share from continuing operations—    basic	$	0.58	$	0.93	$	1.15
Income per common share from continuing operations—    diluted	$	0.57	$	0.92	$	1.12

The pro forma results above are not necessarily indicative of the operating results that would have actually occurred if the acquisitions had been in effect on the dates indicated, nor are they necessarily indicative of future results of operations.

Our acquisitions completed in 2016 and 2015 were included in the consolidated results of operations from their respective dates of acquisition and included revenue of $7.1 million and $14.4 million for the three and six months ended June 30, 2016, respectively, and $0.4 million for both the three and six months ended June 30, 2015. The net income impact of these acquisitions for the three and six months ended June 30, 2016 and 2015 was not material.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

4. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the changes in the carrying amount of goodwill by reportable segment for the year ended December 31, 2015 and the six months ended June 30, 2016:

(Amounts in thousands)	Unified Communications Services			Safety Services		Interactive Services			Specialized Agent Services			Total
Balance at January 1, 2015	$	864,568		$	507,588	$	223,014		$	289,750		$	1,884,920
Acquisitions		24,579			—		23,221			—			47,800
Foreign currency translation adjustment		—			1,091		(44	)		(1,400	)		(353	)
Acquisition accounting adjustments		(15,365	)		—		(1,312	)		—			(16,677	)
Balance at December 31, 2015		873,782			508,679		244,879			288,350			1,915,690
Acquisitions		—			—		4,893			—			4,893
Acquisition accounting adjustments		481			—		(13	)		—			468
Foreign currency translation adjustments		(1,059	)		—		715			—			(344	)
Balance at June 30, 2016	$	873,204		$	508,679	$	250,474		$	288,350		$	1,920,707

Other intangible assets

Below is a summary of the major intangible assets for each identifiable intangible asset:

	As of  June 30, 2016
(Amounts in Thousands)	Acquired Cost		Accumulated Amortization			Net Intangible Assets
Client Relationships	$	656,459	$	(463,933	)	$	192,526
Technology & Patents		179,370		(104,087	)		75,283
Trade names and trademarks (finite-lived)		103,555		(34,297	)		69,258
Other intangible assets		23,222		(17,550	)		5,672
Total	$	962,606	$	(619,867	)	$	342,739

	As of December 31, 2015
	Acquired Cost		Accumulated Amortization			Net Intangible Assets
Client Relationships	$	649,494	$	(440,163	)	$	209,331
Technology & Patents		178,027		(96,774	)		81,253
Trade names and trademarks (finite-lived)		103,398		(30,470	)		72,928
Other intangible assets		22,725		(16,216	)		6,509
Total	$	953,644	$	(583,623	)	$	370,021

Amortization expense for finite-lived intangible assets was $16.9million and $16.4 million for the three months ended June 30, 2016 and 2015, respectively, and $33.3 million and $33.0 million for the six months ended June 30, 2016 and 2015, respectively. Estimated amortization expense for the intangible assets noted above for 2016 and the next five years is as follows:

2016	$ 64.7 million
2017	$ 55.0 million
2018	$ 48.7 million
2019	$ 42.7 million
2020	$ 36.0 million
2021	$ 28.2 million

The acquisition of Synrevoice on March 14, 2016 included other intangible assets consisting of client relationships ($5.3 million, with a 12-year life amortization period), technology ($0.9 million, with a 2-year amortization period), non-compete agreements ($0.2 million, with a 3-year amortization period), and a trademark ($0.1 million, with a 2-year amortization period).

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Accrued Expenses

6 Months Ended

Jun. 30, 2016

Other Liabilities Disclosure [Abstract]

Accrued Expenses

5. ACCRUED EXPENSES

Accrued expenses consisted of the following as of:

(Amounts in thousands)	June 30, 2016		December 31, 2015
Accrued wages	$	60,665	$	55,799
Accrued phone		52,515		42,549
Accrued other taxes (non-income related)		35,863		39,267
Interest payable		28,020		36,440
Acquisition obligation for a net operating loss    carryforward claim		4,670		5,536
Accrued employee benefit costs		3,622		3,970
Accrued lease expense		3,448		2,616
Outside commissions		2,132		1,673
Income taxes payable		1,688		—
Acquisition contingent consideration		1,103		2,075
Accrued licensing costs		693		2,418
Other current liabilities		33,448		26,891
	$	227,867	$	219,234

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Long-Term Obligations

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Long-Term Obligations

6. LONG-TERM OBLIGATIONS

Long-term obligations are carried at amortized cost. Long-term obligations consisted of the following as of:

	June 30,			December 31,
(Amounts in thousands)	2016			2015
Senior Secured Term Loans due 2018	$	34,405		$	1,813,250
Accounts Receivable Securitization Facility		75,000			—
Senior Secured Term Loans due 2019		78,814			336,875
Senior Secured A Term Loans due 2021		650,000			—
Senior Secured B Term Loans due 2021		260,000			250,000
4 3/4% Senior Secured Notes due 2021		400,000			—
5 3/8% Senior Notes due 2022		1,000,000			1,000,000
Senior Secured B Term Loans due 2023		870,000			—
Unamortized value of debt issuance costs (1)		(39,361	)		(57,062	)
Net carrying value		3,328,858			3,343,063
Less: current maturities		(37,918	)		(24,375	)
Long-term obligations, net of debt issuance costs	$	3,290,940		$	3,318,688

(1) Includes the reclassification of debt issuance costs from “Other assets” as a result of the Company adopting ASU 2015-03. See Note 1.

Senior Secured Credit Facilities

Our term and revolving senior secured credit facilities (“Senior Secured Credit Facilities”) are governed by the Amended and Restated Credit Agreement dated as of October 5, 2010 (as amended from time to time, the “Credit Agreement”) among West Corporation, certain of our domestic subsidiaries, Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and the various lenders party thereto.  

On June 17, 2016 (the “Seventh Amendment Effective Date”), the Company, certain domestic subsidiaries of the Company, as subsidiary borrowers, Wells Fargo and the various lenders party thereto modified the Senior Secured Credit Facilities by entering into Amendment No. 7 to Amended and Restated Credit Agreement (the “Seventh Amendment”), amending the Credit Agreement.

The Seventh Amendment:

· extended the maturity of a portion of the existing A-1 term loans (“2019 Maturity Term Loans”), which mature July 1, 2019, to June 17, 2021 by converting such existing A-1 term loans into A-2 term loans (the “2021 Maturity A Term Loans”);

· extended the maturity of a portion of the existing B-10 term loans (the “2018 Maturity Term Loans”), which mature June 30, 2018, to June 17, 2023 by converting such existing B-10 term loans into B-12 term loans (the “2023 Maturity Term Loans”);

· extended the maturity of a portion of the existing revolving credit commitments to June 17, 2021 (the “Extended Revolving Credit Commitments”), with non-extending revolving credit commitments being terminated as of the Seventh Amendment Effective Date;

· provided for an increase of 2021 Maturity A Term Loans with incremental 2021 Maturity A Term Loans, which were added to and constitute a single class of term loans with the 2021 Maturity A Term Loans, such that the aggregate amount of 2021 Maturity A Term Loans (after giving effect to the incurrence of the incremental 2021 Maturity A Term Loans) is $650.0 million;

· provided for an increase of 2023 Maturity Term Loans with incremental 2023 Maturity Term Loans, which were added to and constitute a single class of term loans with the 2023 Maturity Term Loans, such that the aggregate amount of 2023 Maturity Term Loans (after giving effect to the incurrence of the incremental 2023 Maturity Term Loans) is $870.0 million;

· provided for an increase of Extended Revolving Credit Commitments with incremental revolving commitments, which constitute a single class of commitments with the Extended Revolving Credit Commitments and mature on June 17, 2021, such that the aggregate amount of Extended Revolving Credit Commitments (after giving effect to the incurrence of the incremental revolving commitments) is $300.0 million;

· provided for new B-14 term loans (the “2021 Maturity B Term Loans”) in an aggregate amount of $260.0 million with a maturity date of June 17, 2021;

· provided for annual amortization (payable in quarterly installments) in respect of the 2023 Maturity Term Loans in an amount equal to 1.0% of the original aggregate principal amount of the 2023 Maturity Term Loans outstanding on the Seventh Amendment Effective Date until the maturity date, at which point all remaining outstanding 2023 Maturity Term Loans shall become due and payable;

· provided for annual amortization (payable in quarterly installments) in respect of the 2021 Maturity B Term Loans in an amount equal to 1.0% of the original aggregate principal amount of the 2021 Maturity B Term Loans outstanding on the Seventh Amendment Effective Date until the maturity date, at which point all remaining outstanding 2021 Maturity B Term Loans shall become due and payable;

· provided for annual amortization (payable in quarterly installments and based on the original aggregate principal amount of the 2021 Maturity A Term Loans outstanding on the Seventh Amendment Effective Date) in respect of the 2021 Maturity A Term Loans payable at a 2.5% annual rate for the three fiscal quarters in the nine month period ending March 31, 2017, a 5.0% annual rate for the four fiscal quarters in the year ending March 31, 2018, a 7.5% annual rate for the four fiscal quarters in the year ending March 31, 2019, a 10.0% annual rate for the four fiscal quarters in the year ending March 31, 2020 and a 2.5% quarterly rate thereafter until the maturity date, at which point all remaining outstanding 2021 Maturity A Term Loans shall become due and payable;

· provided for an interest rate margin applicable to the 2021 Maturity A Term Loans and Extended Revolving Credit Commitments that is based on the Company’s total leverage ratio and ranges from 1.75% to 2.50% for LIBOR rate loans (2.50%, as of June 30, 2016), subject to a 0.0% interest rate floor for the LIBOR component of LIBOR rate loans, and from 0.75% to 1.50% for base rate loans (1.50%, as of June 30, 2016);

· provided for an interest rate margin applicable to the 2023 Maturity Term Loans equal to 3.00% for LIBOR rate loans and 2.00% for base rate loans, subject to a 0.75% interest rate floor for the LIBOR component of LIBOR rate 2023 Maturity Term Loans, and subject to a 1.75% interest rate floor for the base rate component of base rate 2023 Maturity Term Loans; and

· provided for an interest rate margin applicable to the 2021 Maturity B Term Loans equal to 2.75% for LIBOR rate loans, and 1.75% for base rate loans, subject to a 0.75% interest rate floor for the LIBOR component of LIBOR rate 2021 Maturity B Term Loans, and subject to a 1.75% interest rate floor for the base rate component of base rate 2021 Maturity B Term Loans.

Proceeds of the 2021 Maturity A Term Loans, 2023 Maturity Term Loans and 2021 Maturity B Term Loans were used on the Seventh Amendment Effective Date, together with proceeds from the senior secured notes offering described below, to partially prepay existing non-extending 2019 Maturity Term Loans and existing non-extending 2018 Maturity Term Loans and to fully prepay existing non-extending B-11 term loans due 2021 (“B-11 Term Loans”).

In connection with the Seventh Amendment, we incurred refinancing expenses of approximately $20.2 million, which will be amortized into interest expense over the remaining life of the Senior Secured Credit Facilities. In addition, we recorded accelerated amortization of deferred financing costs of $33.9 million in connection with the terminated non-extended revolving credit commitments and Extended Revolving Credit Commitments, partial repayment of existing non-extending 2019 Maturity Term Loans and 2018 Maturity Term Loans and the prepayment in full of B-11 Term Loans.

During the six months ended June 30, 2016, in addition to the payments described above, we repaid $25.9million on our 2018 Maturity Term Loans, based on an excess cash flow calculation provision in the Credit Agreement and a $75.0 million voluntary prepayment. Also, during the six months ended June 30, 2016, we repaid our scheduled amortization of $5.4 million and $0.6million on the 2019 Maturity Term Loans and the B-11 Term Loans, respectively.

2021 Senior Secured Notes

On June 17, 2016, we issued $400.0 million aggregate principal amount of 4.750% senior secured notes that mature on July 15, 2021 (the “2021 Senior Secured Notes”).  The 2021 Senior Secured Notes were offered in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended.  We used the net proceeds from the issue and the sale of the 2021 Senior Secured Notes, together with proceeds from the Seventh Amendment, to partially repay certain outstanding term loans under our Senior Secured Credit Facilities as described above.

At any time prior to July 15, 2018, we may redeem all or a part of the 2021 Senior Secured Notes at a redemption price equal to 100% of the principal amount of 2021 Senior Secured Notes redeemed plus the applicable premium (as defined in the indenture governing the 2021 Senior Secured Notes) as of, and accrued and unpaid interest, if any, to, the date of redemption, subject to the rights of holders of 2021 Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date.

On or after July 15, 2018, we may redeem the 2021 Senior Secured Notes, in whole or in part, at the redemption prices (expressed as percentages of principal amount of the 2021 Senior Secured Notes to be redeemed) set forth below, plus accrued and unpaid interest thereon, if any, to the applicable date of redemption, subject to the right of holders of record of 2021 Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date, if redeemed during the 12-month period beginning on July 15 of each of the years indicated below:

Year	Percentage
2018		102.375%
2019		101.188%
2020 and thereafter		100.000%

In connection with the 2021 Senior Secured Notes, we incurred refinancing expenses of approximately $6.0 million, which will be amortized into interest expense over the remaining life of the 2021 Senior Secured Notes.

Securitization Facility

At June 30, 2016 and December 31, 2015, the principal balance outstanding on the revolving trade accounts receivable financing facility among the Company, certain of our originating domestic subsidiaries, West Receivables Holding LLC, West Receivables LLC and Wells Fargo (“Securitization Facility”) was $75.0 million and $0, respectively. We used the $75.0 million of proceeds from the Securitization Facility to prepay $75.0 million on the 2018 Maturity Term Loans. The highest outstanding balance during the six months ended June 30, 2016 and year ended December 31, 2015 was $75.0 million and $185.0 million, respectively.

At June 30, 2016, we were in compliance with our financial debt covenants.

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Fair Value Disclosures

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosures

7. FAIR VALUE DISCLOSURES

FASB guidance establishes a three-level fair value hierarchy based upon assumptions (inputs) used to price assets or liabilities. The three levels of inputs used to measure fair value are as follows:

·Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

· Level 2 – Observable inputs other than those included within Level 1, such as quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets, and

· Level 3 – Unobservable inputs for assets or liabilities reflecting our assumptions and best estimate of what inputs market participants would use in pricing the asset or liability.

The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value.

Trading Securities (Asset). The assets held in the West Corporation Executive Retirement Savings Plan and the West Corporation Nonqualified Deferred Compensation Plan represent mutual funds, invested in debt and equity securities, classified as trading securities in accordance with the provisions of Accounting Standards Codification 320 Investments—Debt and Equity Securities considering the employee’s ability to change the investment allocation of their deferred compensation at any time. Quoted market prices are available for these securities in an active market; therefore the fair value of these securities is determined by Level 1 inputs.

We evaluate classification within the fair value hierarchy each reporting period. There were no transfers between any levels of the fair value hierarchy during the periods presented.

The carrying amount of the trading securities of $62.3 million and $60.1 million at June 30, 2016 and December 31, 2015, respectively, were equal to the quoted prices in active markets for identical assets.

The fair value of our 2021 Senior Secured Notes, issued on June 17, 2016, based on market quotes, which we determined to be Level 2 inputs, at June 30, 2016 was approximately $399.0 million, compared to the carrying amount of $400.0 million. The fair value of our 2022 Senior Notes based on market quotes, which we determined to be Level 2 inputs, at June 30, 2016 and December 31, 2015 was approximately $932.5 million and $862.5 million, respectively, compared to the carrying amount of $1.0 billion.

The fair value of our senior secured term loan facilities was estimated using current market quotes on comparable debt securities from various financial institutions. All of the inputs used to determine the fair market value of our senior secured term loan facilities are Level 2 inputs and obtained from an independent source. The fair value of our senior secured term loan facilities at June 30, 2016 was approximately $1,161.0 million compared to the carrying amount of $1,164.4 million. The fair value of our senior secured term loan facilities at December 31, 2015 was approximately $2,033.2 million compared to the carrying amount of $2,063.3 million.

The fair value of our senior secured A term loans based on recent trading activity, which we determined to be Level 2 inputs, at June 30, 2016 was approximately $715.7 million compared to the carrying amount of $728.8 million. The fair value of our 2019 Maturity Term Loans at December 31, 2015, was approximately $323.4 million compared to the carrying amount of $336.9 million.

A Level 3 liability of $5.3 million and $5.6 million was recognized as of June 30, 2016 and December 31, 2015, respectively, for contingent consideration related to the acquisition of ClientTell (see Note 3). The liability was measured at fair value using a Monte Carlo simulation approach and was based on estimated revenues and the present value of related payments over the earn-out period.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

Postemployment Benefits [Abstract]

Stock-Based Compensation

8. STOCK-BASED COMPENSATION

2006 Executive Incentive Plan

Stock options granted under the West Corporation 2006 Executive Incentive Plan (“2006 EIP”) prior to 2012 vest over a period of five years, with 20% of the stock option becoming exercisable on each of the first through fifth anniversaries of the grant date. Stock options granted under the 2006 EIP in 2012 and 2013 vest over a period of four years, with 25% of the stock option becoming exercisable on each of the first through fourth anniversaries of the grant date. Once an option has vested, it generally remains exercisable until the tenth anniversary of the grant date so long as the participant continues to provide services to the Company.

2013 Long-Term Incentive Plan

Prior to the completion of our initial public offering, we adopted, and subsequently amended, the 2013 Long-Term Incentive Plan (as amended, “2013 LTIP”), which is intended to provide our officers, employees, non-employee directors and consultants with added incentive to remain employed by or perform services for us and align such individuals’ interests with those of our stockholders. Under the terms of the 2013 LTIP, 8,500,000 shares of common stock were made available for stock options, restricted stock or other types of equity awards, subject to adjustment for stock splits and other similar changes in capitalization. The number of available shares under the 2013 LTIP is reduced by the aggregate number of shares underlying each award. To the extent that shares subject to an outstanding award granted under the 2013 LTIP are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or by reason of the settlement of such award in cash, then such shares will again be available under the 2013 LTIP (excluding shares withheld by the Company to pay withholding taxes related to an award under the 2013 LTIP).

Stock options granted under the 2013 LTIP vest over a period of four years, with 25% of the stock option becoming exercisable on each of the first through fourth anniversaries of the grant date. Once an option has vested, it generally remains exercisable until the tenth anniversary of the grant date so long as the participant continues to provide services to the Company. Restricted stock granted under the 2013 LTIP, which is time-vested, vests over a period of three or four years (excluding awards to directors which vest over a six to twelve month period), with a ratable portion of the restricted stock award vested on each anniversary of the grant date until fully vested, unless earlier forfeited as a result of termination of service to the Company prior to the applicable vesting date. Dividends are payable in respect of shares of unvested restricted stock either at the time the dividend is paid to stockholders or upon vesting of the restricted stock in accordance with the terms of the applicable restricted stock award agreement.

2006 Executive Incentive Plan and 2013 Long-Term Incentive Plan – Stock Options

The following table presents the stock or stock option activity under the 2006 EIP and 2013 LTIP for the six months ended June 30, 2016.

				Options Outstanding
	Stock or Options Available for Grant			Number of Shares			Weighted Average Exercise Price
Balance at January 1, 2016		5,868,283			2,280,030		$	27.08
Options exercised		—			(29,475	)		13.12
Options canceled or forfeited (2013 LTIP)		9,074			(9,074	)		23.40
Options canceled or forfeited (2006 EIP)		—			(17,807	)		33.27
Restricted stock granted		(625,389	)		—			—
Restricted stock canceled		52,604			—			—
Balance at June 30, 2016		5,304,572			2,223,674		$	27.23

At June 30, 2016, we expect that approximately 2.2 million options granted and outstanding will vest.

At June 30, 2016, the intrinsic value of options vested and exercisable was approximately $0.3 million. The aggregate intrinsic value of options outstanding at June 30, 2016 was approximately $0.3 million. The aggregate intrinsic value of options outstanding, vested and expected to vest at June 30, 2016 was approximately $0.3 million.

The following table presents information regarding the options granted under the 2006 EIP and 2013 LTIP at June 30, 2016:

Outstanding							Exercisable
Range of Exercise Prices	Number of Options		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price
$0.00 - $13.12		39,661		0.43	$	13.12		39,661	$	13.12
13.13 - 28.88		1,674,014		5.98		25.10		1,481,267		25.30
28.89 - 50.88		492,626		5.08		33.81		492,626		33.81
50.89 - 84.80		17,373		4.15		77.48		17,373		77.48
$0.00 - $84.80		2,223,674		5.67	$	27.23		2,030,927	$	27.57

No stock options have been awarded since April 1, 2014.

Restricted Shares, Restricted Stock Units and Performance-Based Restricted Stock Units

During the six months ended June 30, 2016, pursuant to agreements with our non-employee directors who are not affiliated with our former sponsors, we issued 17,889 shares of common stock with an aggregate fair value of approximately $400,000. These shares vest on the six-month anniversary of the date of grant in the case of initial awards and on the one-year anniversary for all other awards.

During the six months ended June 30, 2016, we issued 408,000 restricted stock awards and restricted stock units to certain key employees. These awards vest ratably with 25% of the award vesting on each of the first through fourth anniversaries of the award date. The fair value of these awards at the date of grant was approximately $9.2 million and will be recognized over the remaining vesting period of approximately 3.7 years as of June 30, 2016.

During the six months ended June 30, 2016, we issued 199,500 performance-based restricted stock units to certain key executives. Each performance-based restricted stock unit represents a contingent right to receive between zero and 1.75 shares of West common stock. These performance-based restricted stock units will vest based on the Company’s total shareholder return (“TSR”) percentile ranking over the applicable performance period as compared to the TSR of companies included in the Russell 2000 on both the first and last day of the performance period, which began on March 1, 2016 and ends on February 28, 2019. The fair value of these awards at the date of grant was approximately $4.5 million and will be recognized over the remaining vesting period of approximately 2.7 years as of June 30, 2016.

2013 Employee Stock Purchase Plan

During the fourth quarter of 2013, we implemented the 2013 Employee Stock Purchase Plan (“ESPP”), under which the sale of 1.0 million shares of our common stock has been authorized and reserved. On January 28, 2016 the Board approved an amendment to the ESPP to increase the number of shares available under the ESPP by an additional 1.0 million shares of common stock. The amendment was approved by a vote of the stockholders at our May 17, 2016 annual meeting.  Employees may designate up to 50% of their annual compensation for the purchase of stock, subject to a per person limit of 2,000 shares in any offering period or calendar year. The price for shares purchased under the ESPP is 85% of the market closing price on the last day of the quarterly purchase period. No employee will be authorized to purchase common stock through the ESPP if, immediately after the purchase, the employee (or any other person whose stock would be attributed to such employee under U.S. tax law) would own stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any parent of the Company or any subsidiary. In addition, no participant will be entitled to purchase stock under the ESPP at a rate which, when aggregated with his or her rights to purchase stock under all other employee stock purchase plans of the Company and its subsidiaries, exceeds $25,000 in fair market value, determined as of the date of grant (or such other limit as may be imposed by U.S. tax law), for each calendar year in which any option granted to the participant under any such plans is outstanding at any time. During the six months ended June 30, 2016, 182,285 shares were issued under the ESPP. As of June 30, 2016, 739,681 shares had been issued under the ESPP since the plan’s inception.  For the three and six months ended June 30, 2016 and 2015, we recognized compensation expense for this plan of $0.3 million and $0.7 million, respectively.

Share-Based Compensation Expense

For the three and six months ended June 30, 2016, share-based compensation expense was $6.2 million and $13.8 million, respectively. For the three and six months ended June 30, 2015, share-based compensation expense was $6.0 million and $11.4 million, respectively.

At June 30, 2016 and 2015, there was approximately $0.7 million and $4.7 million, respectively, of unrecorded and unrecognized compensation expense, adjusted for estimated forfeitures, related to unvested share-based compensation on stock options under the 2006 EIP and 2013 LTIP, which will be recognized over the remaining vesting period of approximately 1.3 years as of June 30, 2016.

At June 30, 2016 and 2015, there was approximately $45.5 million and $38.0 million, respectively, of unrecorded and unrecognized compensation expense, related to unvested share-based compensation on restricted stock under the 2013 LTIP, which will be recognized over the remaining vesting period of approximately 2.6 years as of June 30, 2016.

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Earnings Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

9. EARNINGS PER SHARE

Diluted earnings per share reflects the potential dilution that could result if options or other contingently issuable shares were exercised or converted into common stock and notional shares from the Nonqualified Deferred Compensation Plan were granted. Diluted earnings per common share assumes the exercise of stock options using the treasury stock method.

	Three months ended June 30,				Six months ended June 30,
(Amounts in thousands, except per share amounts)	2016		2015		2016		2015
Earnings per common share-basic:
Continuing operations	$	0.40	$	0.59	$	0.94	$	1.17
Discontinued operations		—		—		—		0.38
Total earnings per common share-basic	$	0.40	$	0.59	$	0.94	$	1.55
Earnings per common share- diluted:
Continuing operations	$	0.39	$	0.58	$	0.92	$	1.14
Discontinued operations		—		—		—		0.37
Total earnings per common share-diluted	$	0.39	$	0.58	$	0.92	$	1.51
Weighted average number of shares outstanding:
Basic common		82,598		83,394		82,874		83,758
Dilutive impact of Equity Incentive Plans:
Common shares		1,683		2,198		1,551		2,162
Diluted common shares		84,281		85,592		84,425		85,920

Diluted earnings per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares result from the assumed exercise of outstanding stock options, by application of the treasury stock method that has a dilutive effect on earnings per share. At June 30, 2016 and 2015, 2,177,738 and 579,995 stock options, respectively, were outstanding with an exercise price equal to or exceeding the market value of our common stock and were therefore excluded from the computation of shares contingently issuable upon exercise of the options.

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Accumulated Other Comprehensive Loss

10. ACCUMULATED OTHER COMPREHENSIVE LOSS

Activity within accumulated other comprehensive loss for the three and six months ended June 30, 2016 and 2015, was for foreign currency translation of our foreign subsidiaries and is presented net of tax.

(Amounts in thousands)	Accumulated Other Comprehensive Loss
BALANCE, April 1, 2016	$	(69,563	)
Foreign currency translation adjustment, net    of tax of $4,779		(8,571	)
BALANCE, June 30, 2016	$	(78,134	)
BALANCE, January 1, 2016	$	(72,736	)
Foreign currency translation adjustment, net    of tax of $3,010		(5,398	)
BALANCE, June 30, 2016	$	(78,134	)
	Accumulated Other Comprehensive Loss
BALANCE, April 1, 2015	$	(67,395	)
Foreign currency translation adjustment, net    of tax of $(4,762)		8,171
BALANCE, June 30, 2015	$	(59,224	)
BALANCE, January 1, 2015	$	(37,506	)
Foreign currency translation adjustment, net    of tax of $12,371		(21,718	)
BALANCE, June 30, 2015	$	(59,224	)

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Segment Reporting, Geographic and Customer Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting, Geographic and Customer Information

11. SEGMENT REPORTING, GEOGRAPHIC AND CUSTOMER INFORMATION

Our five operating segments (Unified Communications Services, Telecom Services, Safety Services, Interactive Services, and Specialized Agent Services) are aggregated into four reportable segments as follows:

· Unified Communications Services which includes conferencing and collaboration services, UCaaS solutions and telecom services;

· Safety Services, including 9-1-1 network services, 9-1-1 telephony systems and services, 9-1-1 solutions for enterprises and database management;

· Interactive Services, including proactive notifications and mobility, IVR self-service, cloud contact center and professional services; and

· Specialized Agent Services which includes healthcare advocacy services, revenue generation services and cost management services.

	For the three months ended June 30,						For the six months ended June 30,
(Amounts in Thousands)	2016			2015			2016			2015
Revenue:
Unified Communications Services	$	370,158		$	374,651		$	732,871		$	744,109
Safety Services		74,423			66,138			145,587			134,716
Interactive Services		73,232			63,628			144,961			126,095
Specialized Agent Services		67,495			68,566			135,873			135,644
Intersegment eliminations		(2,911	)		(1,092	)		(6,116	)		(3,183	)
Total	$	582,397		$	571,891		$	1,153,176		$	1,137,381
Depreciation and Amortization
(Included in Operating Income):
Unified Communications Services	$	20,671		$	20,625		$	41,607		$	41,108
Safety Services		11,446			12,210			22,652			25,019
Interactive Services		9,350			7,282			18,325			14,436
Specialized Agent Services		7,440			6,625			14,818			13,099
Total	$	48,907		$	46,742		$	97,402		$	93,662
Operating Income:
Unified Communications Services	$	88,762		$	98,958		$	177,830		$	193,836
Safety Services		11,871			3,254			20,844			6,456
Interactive Services		5,958			6,630			11,766			12,204
Specialized Agent Services		2,906			8,992			7,424			17,527
Corporate other—unallocated		13,604			(1,401	)		14,161			(2,897	)
Total	$	123,101		$	116,433		$	232,025		$	227,126
Cash Capital Expenditures:
Unified Communications Services	$	13,337		$	12,341		$	26,370		$	32,240
Safety Services		11,764			6,387			22,482			12,304
Interactive Services		6,350			4,478			10,149			8,470
Specialized Agent Services		2,603			3,104			5,560			5,880
Corporate		3,453			2,247			9,303			5,970
Total	$	37,507		$	28,557		$	73,864		$	64,864

	As of June 30, 2016		As of December 31, 2015
Assets:
Unified Communications Services	$	1,492,257	$	1,525,890
Safety Services		771,599		786,447
Interactive Services		449,626		430,793
Specialized Agent Services		474,077		491,449
Corporate		359,042		302,966
Total from continuing operations		3,546,601		3,537,545
Assets held for sale		—		17,672
Total	$	3,546,601	$	3,555,217

Revenues from non-U.S. countries were approximately 21% of consolidated revenue for both the three and six months ended June 30, 2016 and 2015.  Revenue from the United Kingdom accounted for 13% of consolidated revenue for both the three and six months ended June 30, 2016 and 12% of consolidated revenue for both the three and six months ended June 30, 2015. The United Kingdom was the only foreign country which accounted for greater than 10% of revenue. Revenue is attributed to the legal entity that has the contractual obligation with the customer regardless of the customer’s location or the currency used for billing purposes. Geographic information by organizational region, is noted below:

	For the three months ended June 30,				For the six months ended June 30,
(Amounts in thousands)	2016		2015		2016		2015
Revenue:
Americas—United States	$	459,330	$	454,656	$	911,760	$	901,869
Europe, Middle East & Africa (EMEA)		81,430		77,250		160,825		155,227
Asia Pacific		36,473		37,800		71,129		72,311
Americas—Other		5,164		2,185		9,462		7,974
Total	$	582,397	$	571,891	$	1,153,176	$	1,137,381

	As of June 30, 2016		As of December 31, 2015
Long-Lived Assets:
Americas—United States	$	2,567,467	$	2,593,739
Europe, Middle East & Africa (EMEA)		185,955		195,203
Asia Pacific		19,697		21,151
Americas—Other		7,269		1,952
Total	$	2,780,388	$	2,812,045

The aggregate gain (loss) on transactions denominated in currencies other than the functional currency of West Corporation or any of its subsidiaries was approximately $1.1 million and ($1.5) million for the three months ended June 30, 2016 and 2015, respectively.  For the six months ended June 30, 2016 and 2015, the aggregate loss on transactions denominated in currencies other than the functional currency of West Corporation or any of its subsidiaries was approximately ($1.0) million and ($0.2) million, respectively.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

12. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, we and certain of our subsidiaries are defendants in various litigation matters and are subject to claims from our clients for indemnification, some of which may involve claims for damages that are substantial in amount.

Accruals have been made with respect to these matters, where appropriate, which are reflected in the Company’s consolidated financial statements. The Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company. The matters discussed below, if decided adversely to or settled by the Company, individually or in the aggregate, may result in liability material to the Company’s financial condition and/or results of operations.

There are asserted claims against the Company where an unfavorable outcome is considered to be reasonably possible. These claims can generally be categorized in the following areas: (l) commercial disputes with customers or other business partners, which may involve assertion of a breach of the Company’s legal or contractual obligations to the customer or a claim for indemnification for third-party losses; and (2) other matters which may include issues such as employment related claims. The Company’s estimates of the range of reasonably possible losses in excess of any amounts accrued for such claims is $0 to $20 million for all of the matters described above. The estimated range of reasonably possible losses is based on information currently available and involves elements of judgment and significant uncertainties. As additional information becomes available and the resolution of the uncertainties becomes more apparent, it is possible that actual losses may exceed even the high end of the estimated range.

In connection with the sale of certain of our agent-based businesses to Alorica Inc., we agreed to indemnify the buyer, up to the full purchase price of $275.0 million, with respect to the equity interests of the companies we sold, title to the equity and assets sold and the authority of the Company to sell the equity and assets. The Company has also agreed to indemnify the buyer for breaches of other representations and warranties in the purchase agreement for up to $13.75 million in losses and for certain other matters.

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Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2016

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

13.SUPPLEMENTAL CASH FLOW INFORMATION

The following table summarizes, in thousands, supplemental information about our cash flows for the six months ended June 30, 2016 and 2015:

	For the Six Months Ended
	June 30,
	2016			2015
SUPPLEMENTAL DISCLOSURE OF CASH FLOW    INFORMATION:
Cash paid during the period for interest	$	75,684		$	86,314
Cash paid during the period for income taxes, net of    refunds of $3,703 and $939	$	23,939		$	63,727
SUPPLEMENTAL DISCLOSURE OF NONCASH    INVESTING ACTIVITIES:
Accrued obligations for the purchase of property and    equipment	$	(4,849	)	$	(13,628	)
SUPPLEMENTAL DISCLOSURE OF NONCASH    FINANCING ACTIVITIES:
Accrued dividends	$	854		$	602
Accrued deferred financing costs	$	1,079		$	—

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Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

14. SUBSEQUENT EVENTS

On July 26, 2016, the Company entered into two interest rate swaps, a 1-month LIBOR swap and a 3-month LIBOR swap, both with a beginning notional value of $275.0 million and maturity date of July 17, 2021.  The 1-month LIBOR swap is effective July 29, 2016, with no amortization or variable interest rate floor.  The 3-month LIBOR swap is effective June 30, 2017, with 1% amortization per year and a 75 basis points LIBOR floor.

As required under ASC 815, Derivatives and Hedging, we will record the interest rate swaps on the balance sheet at fair value.  The interest rate swaps are considered cash flow hedges. We have elected to apply hedge accounting and believe the designated hedging relationship and terms of the interest rate swaps have satisfied the criteria necessary to apply hedge accounting.

The effective portion of changes in the fair value of the interest rate swaps will be recorded in Accumulated Other Comprehensive Loss and will be subsequently reclassified into earnings in the period that the hedged transactions affect earnings. The ineffective portion of the change in fair value of the interest rate swaps, if any, will be recognized in earnings.

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Organization, Consolidation and Presentation of Financial Statements (Policies)

6 Months Ended

Jun. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Discontinued Operations

Discontinued Operations—On March 3, 2015, we divested several of our agent-based businesses, including our consumer facing customer sales and lifecycle management, account services and receivables management businesses, for $275.0 million in cash. We completed the divestiture pursuant to a purchase agreement executed January 7, 2015 and in accordance with a plan approved by our Board of Directors on December 30, 2014.

Basis of Consolidation

Basis of Consolidation—The unaudited condensed consolidated financial statements include the accounts of West and its wholly-owned subsidiaries and reflect all adjustments (all of which are normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the year ended December 31, 2015. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Our results for the three and six months ended June 30, 2016 are not necessarily indicative of what our results will be for other interim periods or for the full fiscal year.

Use of Estimates

Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition—Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, price is fixed or determinable and collectability is reasonably assured. Amounts billed in advance of providing service are deferred and recorded as deferred revenue or other long-term liabilities on the balance sheet until service has been provided.

Dividend

Dividend—We funded the dividends paid in 2015 and the first six months of 2016 with cash generated by our operations and we anticipate funding future dividends with cash generated by our operations. The declaration and payment of all future dividends, if any, will be at the sole discretion of our Board of Directors. On each of March 3, 2016 and May 26, 2016, we paid a $0.225 per common share quarterly dividend. The total dividend paid was approximately $18.8 million and $18.6 million to stockholders of record as of the close of business on February 22, 2016 and May 16, 2016, respectively. On August 1, 2016, we announced a $0.225 per common share quarterly dividend. The dividend is payable September 1, 2016 to stockholders of record as of the close of business on August 22, 2016.

Share Repurchase

Share Repurchase—Under a share repurchase program approved by the Company’s Board of Directors during the first quarter of 2016 authorizing the repurchase of up to an aggregate of $75 million of outstanding common stock, the Company purchased 1,000,000 shares of common stock through the open market during the first six months of 2016 for an aggregate purchase price of approximately $22.0 million, which was funded with cash on hand.

Assets Held for Sale

Assets Held for Sale—On June 21, 2016, we completed the sale of land, buildings and improvements which were previously classified as held for sale and primarily used by the agent-based businesses we divested in 2015.  Proceeds from the sale were $38.8 million, excluding related expenses. In connection with this sale, we realized a pre-tax gain of approximately $19.0 million.  We also entered into a twelve year leaseback agreement for one of the buildings.  This lease is classified as an operating lease and the related $6.1 million gain, included in the $19.0 million realized gain, is being deferred and will be recognized over the lease term.

Recently Implemented Accounting Pronouncements

Recently Implemented Accounting Pronouncements—In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires capitalized debt issuance costs to be presented as a reduction to the carrying value of debt instead of being classified as a deferred charge, as previously required. This ASU became effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015, and interim periods within those annual periods. We adopted this guidance as of January 1, 2016, and as a result have recast the December 31, 2015 consolidated balance sheet to conform to the current period presentation. The adoption of this standard reduced previously presented other assets and long-term debt by $57.1 million each, based upon the balance of unamortized debt issuance costs relating to our senior secured term loan facilities and senior notes recorded as of December 31, 2015.

In November 2015, the FASB issued ASU 2015-017, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which changes the presentation of deferred income taxes in the balance sheet. Under the new guidance, deferred tax assets and liabilities will be classified as non-current in the balance sheet. The guidance is effective for annual periods beginning after December 15, 2016. The new guidance allows for prospective or retrospective application and early adoption is permitted. We adopted this guidance as of April 1, 2016, and elected retrospective application recasting the December 31, 2015 consolidated balance sheet to conform to the current period presentation. The adoption of this standard reduced previously presented accrued expenses and increased deferred income taxes by $1.7 million each, as of December 31, 2015.

Recent Accounting Pronouncements

Recent Accounting Pronouncements—In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326).  The amendments in this update will require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented at the net amount expected to be collected. This amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018.  Adoption of this update is required through a cumulative-effect adjustment to retained deficit as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of assessing the impact of this standard on its financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718). The amendments in this update will simplify several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of assessing the impact of this standard on its financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this update will increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 is required to be applied with a modified retrospective approach to each prior reporting period presented.  The Company is in the process of assessing the impact of this standard on its financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The new standard will become effective for the Company beginning with the first quarter of 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is in the process of assessing the impact and adoption transition options of this standard on its financial statements.

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Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2016

Discontinued Operations And Disposal Groups [Abstract]

Summary of Results of Discontinued Operations

The following table summarizes the results of discontinued operations for the three and six months ended June 30, 2015:

(Amounts in thousands)	Three months ended June 30, 2015		Six months ended June 30, 2015
Revenue	$	—	$	102,251
Operating income		551		3,851
Gain on disposal		—		48,556
Income before income tax expense		551		52,234
Income tax expense		193		20,010
Income from discontinued operations	$	358	$	32,224

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the respective acquisition dates for Synrevoice and Magnetic North and the final fair value of assets acquired and liabilities assumed for ClientTell and SharpSchool.

(Amounts in thousands)	Synrevoice			ClientTell		Magnetic North		SharpSchool
Working Capital	$	(2,118	)	$	501	$	212	$	(1,042	)
Property and equipment		21			429		574		782
Other assets, net		—			2		—		77
Intangible assets		6,455			26,300		16,361		9,092
Goodwill		4,893			15,004		25,060		8,254
Total assets acquired		9,251			42,236		42,207		17,163
Non-current deferred taxes		—			—		3,050		—
Long-term liabilities		—			3,828		—		—
Total liabilities assumed		—			3,828		3,050		—
Net assets acquired	$	9,251		$	38,408	$	39,157	$	17,163

Summary of Unaudited Pro Forma Results of Operations

The following unaudited pro forma financial information presents the combined results of operations as if the acquisitions of Synrevoice, ClientTell, Magnetic North, and SharpSchool (collectively, the acquirees) occurred as of the beginning of the period presented. The pro forma results contained in the table below include adjustments for amortization of acquired intangibles, finance and acquisition costs as well as related income taxes.

	Three Months Ended		Six Months Ended June 30,
	June 30, 2015		2016		2015
Revenue	$	579,541	$	1,154,081	$	1,153,098
Income from continuing operations	$	48,370	$	77,406	$	96,431
Income per common share from continuing operations—    basic	$	0.58	$	0.93	$	1.15
Income per common share from continuing operations—    diluted	$	0.57	$	0.92	$	1.12

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount of Goodwill by Reportable Segment

The following table presents the changes in the carrying amount of goodwill by reportable segment for the year ended December 31, 2015 and the six months ended June 30, 2016:

(Amounts in thousands)	Unified Communications Services			Safety Services		Interactive Services			Specialized Agent Services			Total
Balance at January 1, 2015	$	864,568		$	507,588	$	223,014		$	289,750		$	1,884,920
Acquisitions		24,579			—		23,221			—			47,800
Foreign currency translation adjustment		—			1,091		(44	)		(1,400	)		(353	)
Acquisition accounting adjustments		(15,365	)		—		(1,312	)		—			(16,677	)
Balance at December 31, 2015		873,782			508,679		244,879			288,350			1,915,690
Acquisitions		—			—		4,893			—			4,893
Acquisition accounting adjustments		481			—		(13	)		—			468
Foreign currency translation adjustments		(1,059	)		—		715			—			(344	)
Balance at June 30, 2016	$	873,204		$	508,679	$	250,474		$	288,350		$	1,920,707

Summary of Major Intangible Assets

Below is a summary of the major intangible assets for each identifiable intangible asset:

	As of  June 30, 2016
(Amounts in Thousands)	Acquired Cost		Accumulated Amortization			Net Intangible Assets
Client Relationships	$	656,459	$	(463,933	)	$	192,526
Technology & Patents		179,370		(104,087	)		75,283
Trade names and trademarks (finite-lived)		103,555		(34,297	)		69,258
Other intangible assets		23,222		(17,550	)		5,672
Total	$	962,606	$	(619,867	)	$	342,739

	As of December 31, 2015
	Acquired Cost		Accumulated Amortization			Net Intangible Assets
Client Relationships	$	649,494	$	(440,163	)	$	209,331
Technology & Patents		178,027		(96,774	)		81,253
Trade names and trademarks (finite-lived)		103,398		(30,470	)		72,928
Other intangible assets		22,725		(16,216	)		6,509
Total	$	953,644	$	(583,623	)	$	370,021

Summary of Estimated Future Annual Amortization Expense for Intangible Assets

Estimated amortization expense for the intangible assets noted above for 2016 and the next five years is as follows:

2016	$ 64.7 million
2017	$ 55.0 million
2018	$ 48.7 million
2019	$ 42.7 million
2020	$ 36.0 million
2021	$ 28.2 million

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Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2016

Other Liabilities Disclosure [Abstract]

Accrued Expenses

Accrued expenses consisted of the following as of:

(Amounts in thousands)	June 30, 2016		December 31, 2015
Accrued wages	$	60,665	$	55,799
Accrued phone		52,515		42,549
Accrued other taxes (non-income related)		35,863		39,267
Interest payable		28,020		36,440
Acquisition obligation for a net operating loss    carryforward claim		4,670		5,536
Accrued employee benefit costs		3,622		3,970
Accrued lease expense		3,448		2,616
Outside commissions		2,132		1,673
Income taxes payable		1,688		—
Acquisition contingent consideration		1,103		2,075
Accrued licensing costs		693		2,418
Other current liabilities		33,448		26,891
	$	227,867	$	219,234

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Long-Term Obligations (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Summary of Long-term Obligations

Long-term obligations are carried at amortized cost. Long-term obligations consisted of the following as of:

	June 30,			December 31,
(Amounts in thousands)	2016			2015
Senior Secured Term Loans due 2018	$	34,405		$	1,813,250
Accounts Receivable Securitization Facility		75,000			—
Senior Secured Term Loans due 2019		78,814			336,875
Senior Secured A Term Loans due 2021		650,000			—
Senior Secured B Term Loans due 2021		260,000			250,000
4 3/4% Senior Secured Notes due 2021		400,000			—
5 3/8% Senior Notes due 2022		1,000,000			1,000,000
Senior Secured B Term Loans due 2023		870,000			—
Unamortized value of debt issuance costs (1)		(39,361	)		(57,062	)
Net carrying value		3,328,858			3,343,063
Less: current maturities		(37,918	)		(24,375	)
Long-term obligations, net of debt issuance costs	$	3,290,940		$	3,318,688

(1) Includes the reclassification of debt issuance costs from “Other assets” as a result of the Company adopting ASU 2015-03. See Note 1.

Senior Secured Notes Redemption Percentage and Year

Year	Percentage
2018		102.375%
2019		101.188%
2020 and thereafter		100.000%

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2016

Postemployment Benefits [Abstract]

Summary of Stock or Stock Option Activity under 2006 EIP and 2013 LTIP

The following table presents the stock or stock option activity under the 2006 EIP and 2013 LTIP for the six months ended June 30, 2016.

				Options Outstanding
	Stock or Options Available for Grant			Number of Shares			Weighted Average Exercise Price
Balance at January 1, 2016		5,868,283			2,280,030		$	27.08
Options exercised		—			(29,475	)		13.12
Options canceled or forfeited (2013 LTIP)		9,074			(9,074	)		23.40
Options canceled or forfeited (2006 EIP)		—			(17,807	)		33.27
Restricted stock granted		(625,389	)		—			—
Restricted stock canceled		52,604			—			—
Balance at June 30, 2016		5,304,572			2,223,674		$	27.23

Summary of Information Regarding Options Granted under Executive Incentive Plan

The following table presents information regarding the options granted under the 2006 EIP and 2013 LTIP at June 30, 2016:

Outstanding							Exercisable
Range of Exercise Prices	Number of Options		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price
$0.00 - $13.12		39,661		0.43	$	13.12		39,661	$	13.12
13.13 - 28.88		1,674,014		5.98		25.10		1,481,267		25.30
28.89 - 50.88		492,626		5.08		33.81		492,626		33.81
50.89 - 84.80		17,373		4.15		77.48		17,373		77.48
$0.00 - $84.80		2,223,674		5.67	$	27.23		2,030,927	$	27.57

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Weighted Average Number of Shares Outstanding

	Three months ended June 30,				Six months ended June 30,
(Amounts in thousands, except per share amounts)	2016		2015		2016		2015
Earnings per common share-basic:
Continuing operations	$	0.40	$	0.59	$	0.94	$	1.17
Discontinued operations		—		—		—		0.38
Total earnings per common share-basic	$	0.40	$	0.59	$	0.94	$	1.55
Earnings per common share- diluted:
Continuing operations	$	0.39	$	0.58	$	0.92	$	1.14
Discontinued operations		—		—		—		0.37
Total earnings per common share-diluted	$	0.39	$	0.58	$	0.92	$	1.51
Weighted average number of shares outstanding:
Basic common		82,598		83,394		82,874		83,758
Dilutive impact of Equity Incentive Plans:
Common shares		1,683		2,198		1,551		2,162
Diluted common shares		84,281		85,592		84,425		85,920

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Reclassifications Out of Accumulated Other Comprehensive (Loss)

Activity within accumulated other comprehensive loss for the three and six months ended June 30, 2016 and 2015, was for foreign currency translation of our foreign subsidiaries and is presented net of tax.

(Amounts in thousands)	Accumulated Other Comprehensive Loss
BALANCE, April 1, 2016	$	(69,563	)
Foreign currency translation adjustment, net    of tax of $4,779		(8,571	)
BALANCE, June 30, 2016	$	(78,134	)
BALANCE, January 1, 2016	$	(72,736	)
Foreign currency translation adjustment, net    of tax of $3,010		(5,398	)
BALANCE, June 30, 2016	$	(78,134	)
	Accumulated Other Comprehensive Loss
BALANCE, April 1, 2015	$	(67,395	)
Foreign currency translation adjustment, net    of tax of $(4,762)		8,171
BALANCE, June 30, 2015	$	(59,224	)
BALANCE, January 1, 2015	$	(37,506	)
Foreign currency translation adjustment, net    of tax of $12,371		(21,718	)
BALANCE, June 30, 2015	$	(59,224	)

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Segment Reporting, Geographic and Customer Information (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Financial Information of Reportable Segments

	For the three months ended June 30,						For the six months ended June 30,
(Amounts in Thousands)	2016			2015			2016			2015
Revenue:
Unified Communications Services	$	370,158		$	374,651		$	732,871		$	744,109
Safety Services		74,423			66,138			145,587			134,716
Interactive Services		73,232			63,628			144,961			126,095
Specialized Agent Services		67,495			68,566			135,873			135,644
Intersegment eliminations		(2,911	)		(1,092	)		(6,116	)		(3,183	)
Total	$	582,397		$	571,891		$	1,153,176		$	1,137,381
Depreciation and Amortization
(Included in Operating Income):
Unified Communications Services	$	20,671		$	20,625		$	41,607		$	41,108
Safety Services		11,446			12,210			22,652			25,019
Interactive Services		9,350			7,282			18,325			14,436
Specialized Agent Services		7,440			6,625			14,818			13,099
Total	$	48,907		$	46,742		$	97,402		$	93,662
Operating Income:
Unified Communications Services	$	88,762		$	98,958		$	177,830		$	193,836
Safety Services		11,871			3,254			20,844			6,456
Interactive Services		5,958			6,630			11,766			12,204
Specialized Agent Services		2,906			8,992			7,424			17,527
Corporate other—unallocated		13,604			(1,401	)		14,161			(2,897	)
Total	$	123,101		$	116,433		$	232,025		$	227,126
Cash Capital Expenditures:
Unified Communications Services	$	13,337		$	12,341		$	26,370		$	32,240
Safety Services		11,764			6,387			22,482			12,304
Interactive Services		6,350			4,478			10,149			8,470
Specialized Agent Services		2,603			3,104			5,560			5,880
Corporate		3,453			2,247			9,303			5,970
Total	$	37,507		$	28,557		$	73,864		$	64,864

	As of June 30, 2016		As of December 31, 2015
Assets:
Unified Communications Services	$	1,492,257	$	1,525,890
Safety Services		771,599		786,447
Interactive Services		449,626		430,793
Specialized Agent Services		474,077		491,449
Corporate		359,042		302,966
Total from continuing operations		3,546,601		3,537,545
Assets held for sale		—		17,672
Total	$	3,546,601	$	3,555,217

Geographic Information by Organizational Region

Geographic information by organizational region, is noted below:

	For the three months ended June 30,				For the six months ended June 30,
(Amounts in thousands)	2016		2015		2016		2015
Revenue:
Americas—United States	$	459,330	$	454,656	$	911,760	$	901,869
Europe, Middle East & Africa (EMEA)		81,430		77,250		160,825		155,227
Asia Pacific		36,473		37,800		71,129		72,311
Americas—Other		5,164		2,185		9,462		7,974
Total	$	582,397	$	571,891	$	1,153,176	$	1,137,381

	As of June 30, 2016		As of December 31, 2015
Long-Lived Assets:
Americas—United States	$	2,567,467	$	2,593,739
Europe, Middle East & Africa (EMEA)		185,955		195,203
Asia Pacific		19,697		21,151
Americas—Other		7,269		1,952
Total	$	2,780,388	$	2,812,045

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Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2016

Supplemental Cash Flow Elements [Abstract]

Supplemental Information About Cash Flows

The following table summarizes, in thousands, supplemental information about our cash flows for the six months ended June 30, 2016 and 2015:

	For the Six Months Ended
	June 30,
	2016			2015
SUPPLEMENTAL DISCLOSURE OF CASH FLOW    INFORMATION:
Cash paid during the period for interest	$	75,684		$	86,314
Cash paid during the period for income taxes, net of    refunds of $3,703 and $939	$	23,939		$	63,727
SUPPLEMENTAL DISCLOSURE OF NONCASH    INVESTING ACTIVITIES:
Accrued obligations for the purchase of property and    equipment	$	(4,849	)	$	(13,628	)
SUPPLEMENTAL DISCLOSURE OF NONCASH    FINANCING ACTIVITIES:
Accrued dividends	$	854		$	602
Accrued deferred financing costs	$	1,079		$	—

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Long-Term Obligations - Subordinated Notes (Detail) - Senior Notes [Member] - 2021 Senior Secured Notes [Member]	6 Months Ended
	Jun. 30, 2016
Debt Instrument, Redemption, Period One [Member]
Schedule Of Carrying Amount Of Senior Notes [Line Items]
Debt instrument redemption price percentage	102.375%
Debt instrument redemption period start date	Jul. 15, 2018
Debt Instrument, Redemption, Period Two [Member]
Schedule Of Carrying Amount Of Senior Notes [Line Items]
Debt instrument redemption price percentage	101.188%
Debt instrument redemption period start date	Jul. 15, 2019
Debt Instrument, Redemption, Period Three [Member]
Schedule Of Carrying Amount Of Senior Notes [Line Items]
Debt instrument redemption price percentage	100.00%
Debt instrument redemption period start date	Jul. 15, 2020

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Organization, Consolidation and Presentation of Financial Statements - Additional Information (Detail) - USD ($)							6 Months Ended		12 Months Ended
	Jun. 21, 2016	May 26, 2016	May 16, 2016	Mar. 03, 2016	Feb. 22, 2016	Mar. 03, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Aug. 01, 2016
Basis Of Presentation [Line Items]
Sale of disposal group						$ 275,000,000
Per common share quarterly dividend		$ 0.225		$ 0.225
Total dividend paid to shareholders			$ 18,600,000		$ 18,800,000
Dividends Payable, Date of Record		May 16, 2016		Feb. 22, 2016			Aug. 22, 2016
Dividends Payable, Date to be Paid							Sep. 01, 2016
Share repurchase program, authorized amount							$ 75,000,000
Number of common stock shares purchased							1,000,000
Aggregate share purchase price							$ 22,000,000
Proceeds from the sale of property and equipment							$ 38,368,000	$ 0
Gain loss on disposition of assets and leaseback transaction	$ 19,000,000
leaseback agreement period							P12Y
Deferred gain on sales-leaseback agreement							$ 6,100,000
Recent Implemented Accounting Pronouncements [Member]
Basis Of Presentation [Line Items]
Reclassification of outstanding debt issuance costs, due to adoption of ASU standard									$ 57,100,000
Reclassification of accrued expenses to deferred income taxes, due to adoption of ASU standard									$ 1,700,000
Subsequent Event [Member]
Basis Of Presentation [Line Items]
Per common share quarterly dividend										$ 0.225

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Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 03, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Schedule Of Discontinued Operations [Line Items]
Sale of disposal group	$ 275,000
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax						$ 48,200
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Tax Benefit						$ 21,600
Income (loss) from discontinued operations		$ 0	$ 358	$ 0	$ 32,224
Purchase Agreement [Member]
Schedule Of Discontinued Operations [Line Items]
Discontinued operations, indemnification liability for breaches of representations and warranties		$ 13,750		$ 13,750

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Discontinued Operations - Summary of Results of Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Discontinued Operations And Disposal Groups [Abstract]
Revenue		$ 0		$ 102,251
Operating income		551		3,851
Gain on disposal		0		48,556
Income before income tax expense		551		52,234
Income tax expense		193		20,010
Income from discontinued operations	$ 0	$ 358	$ 0	$ 32,224

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Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands				1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 14, 2016	Nov. 02, 2015	Jun. 01, 2015	Oct. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Purchase price of acquisition							$ 9,745	$ 17,296
Purchase price allocation, goodwill recorded					$ 1,920,707		1,920,707		$ 1,915,690	$ 1,884,920
Contingent consideration arrangement							644	0
Total acquisition costs expensed					1,400	$ 800	2,500	1,600
Revenue					$ 7,100	$ 400	$ 14,400	$ 400
Synrevoice [Member]
Business Acquisition [Line Items]
Purchase price of acquisition	$ 9,300
Date of acquisition							Mar. 14, 2016
Purchase price allocation, goodwill recorded	4,893
Preliminary purchase price allocation, intangible assets recorded	$ 6,455
ClientTell [Member]
Business Acquisition [Line Items]
Purchase price of acquisition		$ 38,400
Date of acquisition							Nov. 02, 2015
Purchase price allocation, goodwill recorded		15,004
Preliminary purchase price allocation, intangible assets recorded		26,300
Additional cash to be paid		$ 10,500
Additional cash to be paid over the period in years		5 years
Contingent consideration arrangement		$ 5,400					$ 5,300		$ 5,600
Business acquisition contingent consideration paid							$ 1,000
Magnetic North [Member]
Business Acquisition [Line Items]
Purchase price of acquisition				$ 39,200
Date of acquisition							Oct. 31, 2015
Purchase price allocation, goodwill recorded				25,060
Preliminary purchase price allocation, intangible assets recorded				$ 16,361
Sharp School [Member]
Business Acquisition [Line Items]
Purchase price of acquisition			$ 17,200
Date of acquisition							Jun. 01, 2015
Purchase price allocation, goodwill recorded			8,254
Preliminary purchase price allocation, intangible assets recorded			$ 9,092

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Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 14, 2016	Dec. 31, 2015	Nov. 02, 2015	Oct. 31, 2015	Jun. 01, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
GOODWILL	$ 1,920,707		$ 1,915,690				$ 1,884,920
Synrevoice [Member]
Business Acquisition [Line Items]
Working Capital		$ (2,118)
Property and equipment		21
Other assets, net		0
Intangible assets		6,455
GOODWILL		4,893
Total assets acquired		9,251
Non-current deferred taxes		0
Long-term liabilities		0
Total liabilities assumed		0
Net assets acquired		$ 9,251
ClientTell [Member]
Business Acquisition [Line Items]
Working Capital				$ 501
Property and equipment				429
Other assets, net				2
Intangible assets				26,300
GOODWILL				15,004
Total assets acquired				42,236
Non-current deferred taxes				0
Long-term liabilities				3,828
Total liabilities assumed				3,828
Net assets acquired				$ 38,408
Magnetic North [Member]
Business Acquisition [Line Items]
Working Capital					$ 212
Property and equipment					574
Other assets, net					0
Intangible assets					16,361
GOODWILL					25,060
Total assets acquired					42,207
Non-current deferred taxes					3,050
Long-term liabilities					0
Total liabilities assumed					3,050
Net assets acquired					$ 39,157
Sharp School [Member]
Business Acquisition [Line Items]
Working Capital						$ (1,042)
Property and equipment						782
Other assets, net						77
Intangible assets						9,092
GOODWILL						8,254
Total assets acquired						17,163
Non-current deferred taxes						0
Long-term liabilities						0
Total liabilities assumed						0
Net assets acquired						$ 17,163

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Acquisitions - Summary of Unaudited Pro Forma Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Combinations [Abstract]
Revenue	$ 579,541	$ 1,154,081	$ 1,153,098
Income from continuing operations	$ 48,370	$ 77,406	$ 96,431
Income per common share from continuing operations— basic	$ 0.58	$ 0.93	$ 1.15
Income per common share from continuing operations— diluted	$ 0.57	$ 0.92	$ 1.12

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Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill by Reportable Segment (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Goodwill [Line Items]
Beginning balance	$ 1,915,690	$ 1,884,920
Acquisitions	4,893	47,800
Foreign currency translation adjustment	(344)	(353)
Acquisition accounting adjustments	468	(16,677)
Ending balance	1,920,707	1,915,690
Unified Communications Services [Member]
Goodwill [Line Items]
Beginning balance	873,782	864,568
Acquisitions	0	24,579
Foreign currency translation adjustment	(1,059)	0
Acquisition accounting adjustments	481	(15,365)
Ending balance	873,204	873,782
Safety Services [Member]
Goodwill [Line Items]
Beginning balance	508,679	507,588
Acquisitions	0	0
Foreign currency translation adjustment	0	1,091
Acquisition accounting adjustments	0	0
Ending balance	508,679	508,679
Interactive Services [Member]
Goodwill [Line Items]
Beginning balance	244,879	223,014
Acquisitions	4,893	23,221
Foreign currency translation adjustment	715	(44)
Acquisition accounting adjustments	(13)	(1,312)
Ending balance	250,474	244,879
Specialized Agent Services [Member]
Goodwill [Line Items]
Beginning balance	288,350	289,750
Acquisitions	0	0
Foreign currency translation adjustment	0	(1,400)
Acquisition accounting adjustments	0	0
Ending balance	$ 288,350	$ 288,350

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Goodwill and Other Intangible Assets - Summary of Major Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Intangible Assets Excluding Goodwill [Line Items]
Acquired Cost	$ 962,606	$ 953,644
Accumulated Amortization	(619,867)	(583,623)
Net Intangible Assets	342,739	370,021
Client Relationships [Member]
Intangible Assets Excluding Goodwill [Line Items]
Acquired Cost	656,459	649,494
Accumulated Amortization	(463,933)	(440,163)
Net Intangible Assets	192,526	209,331
Technology & Patents [Member]
Intangible Assets Excluding Goodwill [Line Items]
Acquired Cost	179,370	178,027
Accumulated Amortization	(104,087)	(96,774)
Net Intangible Assets	75,283	81,253
Trade Names and Trademarks (Finite-Lived) [Member]
Intangible Assets Excluding Goodwill [Line Items]
Acquired Cost	103,555	103,398
Accumulated Amortization	(34,297)	(30,470)
Net Intangible Assets	69,258	72,928
Other Intangible Assets [Member]
Intangible Assets Excluding Goodwill [Line Items]
Acquired Cost	23,222	22,725
Accumulated Amortization	(17,550)	(16,216)
Net Intangible Assets	$ 5,672	$ 6,509

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Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Mar. 14, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Goodwill And Other Intangible Asset [Line Items]
Amortization expense for finite-lived intangible asset		$ 16.9	$ 16.4	$ 33.3	$ 33.0
Synrevoice [Member]
Goodwill And Other Intangible Asset [Line Items]
Finite-lived intangible assets acquisition date				Mar. 14, 2016
Synrevoice [Member] | Client Relationships [Member]
Goodwill And Other Intangible Asset [Line Items]
Finite-lived intangible assets acquired	$ 5.3
Amortization period by major intangible asset class	12 years
Synrevoice [Member] | Technology [Member]
Goodwill And Other Intangible Asset [Line Items]
Finite-lived intangible assets acquired	$ 0.9
Amortization period by major intangible asset class	2 years
Synrevoice [Member] | Non-Compete Agreements [Member]
Goodwill And Other Intangible Asset [Line Items]
Finite-lived intangible assets acquired	$ 0.2
Amortization period by major intangible asset class	3 years
Synrevoice [Member] | Trademarks [Member]
Goodwill And Other Intangible Asset [Line Items]
Finite-lived intangible assets acquired	$ 0.1
Amortization period by major intangible asset class	2 years

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Goodwill and Other Intangible Assets - Summary of Estimated Future Annual Amortization Expense for Intangible Assets (Detail) $ in Millions	Jun. 30, 2016 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2016	$ 64.7
2017	55.0
2018	48.7
2019	42.7
2020	36.0
2021	$ 28.2

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Accrued Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Payables And Accruals [Abstract]
Accrued wages	$ 60,665	$ 55,799
Accrued phone	52,515	42,549
Accrued other taxes (non-income related)	35,863	39,267
Interest payable	28,020	36,440
Acquisition obligation for a net operating loss carryforward claim	4,670	5,536
Accrued employee benefit costs	3,622	3,970
Accrued lease expense	3,448	2,616
Outside commissions	2,132	1,673
Income taxes payable	1,688	0
Acquisition contingent consideration	1,103	2,075
Accrued licensing costs	693	2,418
Other current liabilities	33,448	26,891
Total	$ 227,867	$ 219,234

XML

Long-Term Obligations - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Unamortized value of debt issuance costs	$ (39,361)	$ (57,062)
Net carrying value	3,328,858	3,343,063
Less: current maturities	(37,918)	(24,375)
Long-term obligations, net of debt issuance costs	3,290,940	3,318,688
2022 [Member]
Debt Instrument [Line Items]
Senior notes	1,000,000	1,000,000
Senior Notes [Member] | 2018 [Member]
Debt Instrument [Line Items]
Secured debt	34,405	1,813,250
Senior Notes [Member] | 2019 [Member]
Debt Instrument [Line Items]
Secured debt	78,814	336,875
Senior Notes [Member] | 2021 [Member]
Debt Instrument [Line Items]
Secured debt	400,000	0
Senior Notes [Member] | 2023 [Member]
Debt Instrument [Line Items]
Secured debt	870,000	0
Accounts Receivable Securitization Facility [Member]
Debt Instrument [Line Items]
Secured debt	75,000	0
Senior Secured A Term Loan [Member] | 2021 [Member]
Debt Instrument [Line Items]
Secured debt	650,000	0
Senior Secured B Term Loan [Member] | 2021 [Member]
Debt Instrument [Line Items]
Secured debt	$ 260,000	$ 250,000

XML

Long-Term Obligations - Summary of Long-Term Obligations (Parenthetical) (Detail) - Senior Notes [Member]	Jun. 30, 2016	Dec. 31, 2015
2021 [Member]
Debt Instrument [Line Items]
Stated interest rate	4.75%	4.75%
2022 [Member]
Debt Instrument [Line Items]
Stated interest rate	5.375%	5.375%

XML

Long-Term Obligations - Senior Secured Credit Facilities - Additional Information (Detail) - USD ($)		6 Months Ended		12 Months Ended
	Jun. 17, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Amortization of deferred financing costs	$ 20,200,000	$ 44,053,000	$ 10,009,000
Deferred financing costs		33,900,000
2021 [Member] | Extended Revolving Credit Commitments
Debt Instrument [Line Items]
Secured debt		$ 300,000,000
Senior Notes [Member] | 2021 [Member]
Debt Instrument [Line Items]
Debt instrument maturity date		Jul. 15, 2021
Secured debt		$ 400,000,000		$ 0
Amortization of deferred financing costs		$ 6,000,000
Debt instrument issuance date		Jun. 17, 2016
Debt instrument face amount		$ 400,000,000
Stated interest rate		4.75%		4.75%
Debt instrument redemption end date		Jul. 15, 2018
Debt instrument redemption price percentage		100.00%
Senior Notes [Member] | 2021 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument maturity date		Jul. 01, 2019
Senior Notes [Member] | 2021 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument maturity date		Jun. 17, 2021
Senior Notes [Member] | 2023 [Member]
Debt Instrument [Line Items]
Secured debt		$ 870,000,000		$ 0
Debt amortization rate		1.00%
Debt instrument frequently periodic payment		Quarterly
Senior Notes [Member] | 2023 [Member] | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate margins		3.00%
Senior Notes [Member] | 2023 [Member] | Base Rate
Debt Instrument [Line Items]
Interest rate margins		2.00%
Senior Notes [Member] | 2023 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument maturity date		Jun. 30, 2018
Senior Notes [Member] | 2023 [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate margins		0.75%
Senior Notes [Member] | 2023 [Member] | Minimum [Member] | Base Rate
Debt Instrument [Line Items]
Interest rate margins		1.75%
Senior Notes [Member] | 2023 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument maturity date		Jun. 17, 2023
Senior Notes [Member] | 2018 [Member]
Debt Instrument [Line Items]
Secured debt		$ 34,405,000		1,813,250,000
Repayment of long term debt		25,900,000
Prepayment of long term debt		75,000,000
Senior Notes [Member] | 2019 [Member]
Debt Instrument [Line Items]
Secured debt		78,814,000		336,875,000
Repayment of long term debt		5,400,000
Senior Notes [Member] | B-11 Term Loans [Member]
Debt Instrument [Line Items]
Repayment of long term debt		$ 600,000
Senior Secured A Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument frequently periodic payment		quarterly
Senior Secured A Term Loan [Member] | 2021 [Member]
Debt Instrument [Line Items]
Secured debt		$ 650,000,000		0
Senior Secured A Term Loan [Member] | 2021 [Member] | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate margins		2.50%
Floor rate		0.00%
Senior Secured A Term Loan [Member] | 2021 [Member] | Base Rate
Debt Instrument [Line Items]
Interest rate margins		1.50%
Senior Secured A Term Loan [Member] | 2021 [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate margins		1.75%
Senior Secured A Term Loan [Member] | 2021 [Member] | Minimum [Member] | Base Rate
Debt Instrument [Line Items]
Interest rate margins		0.75%
Senior Secured A Term Loan [Member] | 2021 [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate margins		2.50%
Senior Secured A Term Loan [Member] | 2021 [Member] | Maximum [Member] | Base Rate
Debt Instrument [Line Items]
Interest rate margins		1.50%
Senior Secured A Term Loan [Member] | June Two Thousand Sixty To March Two Thousand Seventeen
Debt Instrument [Line Items]
Debt amortization rate		2.50%
Senior Secured A Term Loan [Member] | March Two Thousand Seventeen To March Two Thousand Eighteen
Debt Instrument [Line Items]
Debt amortization rate		5.00%
Senior Secured A Term Loan [Member] | March Two Thousand Eighteen To March Two Thousand Nineteen
Debt Instrument [Line Items]
Debt amortization rate		7.50%
Senior Secured A Term Loan [Member] | March Two Thousand Nineteen To March Two Thousand Twenty
Debt Instrument [Line Items]
Debt amortization rate		10.00%
Senior Secured A Term Loan [Member] | Quarterly Rate Thereafter [Member]
Debt Instrument [Line Items]
Debt amortization rate		2.50%
Senior Secured B Term Loan [Member] | 2021 [Member]
Debt Instrument [Line Items]
Secured debt		$ 260,000,000		250,000,000
Debt amortization rate		1.00%
Debt instrument frequently periodic payment		Quarterly
Senior Secured B Term Loan [Member] | 2021 [Member] | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate margins		2.75%
Senior Secured B Term Loan [Member] | 2021 [Member] | Base Rate
Debt Instrument [Line Items]
Interest rate margins		1.75%
Senior Secured B Term Loan [Member] | 2021 [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate margins		0.75%
Senior Secured B Term Loan [Member] | 2021 [Member] | Minimum [Member] | Base Rate
Debt Instrument [Line Items]
Interest rate margins		1.75%
Accounts Receivable Securitization Facility [Member]
Debt Instrument [Line Items]
Secured debt		$ 75,000,000		0
Highest balance outstanding		$ 75,000,000		$ 185,000,000

XML

Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Thousands		6 Months Ended		12 Months Ended
	Nov. 02, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying amount of trading securities		$ 62,300		$ 60,100
Contingent consideration arrangement		644	$ 0
ClientTell [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration arrangement	$ 5,400	5,300		5,600
Senior Notes Due 2022 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value		932,500		862,500
Long-term debt		1,000,000		1,000,000
Senior Notes Due 2021 [Member] | Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value		399,000
Long-term debt		400,000
Senior Secured Term Loan Facilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value		1,161,000		2,033,200
Long-term debt		1,164,400		2,063,300
Senior Secured A Term Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value		715,700
Long-term debt		$ 728,800
2019 Maturity Term Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value				323,400
Long-term debt				$ 336,900

XML

Stock-Based Compensation - 2006 Executive Incentive Plan and 2013 Long-Term Incentive Plan - Additional Information (Detail) - shares	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2012
EIP [Member] | Prior to 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The annual vesting and exercisable percentage options awarded		20.00%
Option Certificate [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The annual vesting and exercisable percentage options awarded		25.00%
Long-Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period	4 years
The annual vesting and exercisable percentage options awarded	25.00%
Common stock granted under plan	8,500,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period	4 years
Maximum [Member] | EIP [Member] | Prior to 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period	5 years
Maximum [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period	4 years
Maximum [Member] | Restricted Stock [Member] | New Non-Employee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period	12 months
Minimum [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period	3 years
Minimum [Member] | Restricted Stock [Member] | New Non-Employee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period	6 months

XML

Stock-Based Compensation - Summary of Stock or Stock Option Activity under 2006 EIP and 2013 LTIP (Detail)	6 Months Ended
	Jun. 30, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted	(17,889)
Number of Shares, Ending Balance	2,223,674
Weighted Average Exercise Price, Ending Balance | $ / shares	$ 27.23
2006 EIP and 2013 LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Available for Grant, Beginning Balance	5,868,283
Options Available for Grant, Options exercised	0
Restricted stock granted	(625,389)
Restricted stock canceled	52,604
Options Available for Grant, Ending Balance	5,304,572
Number of Shares, Beginning Balance	2,280,030
Number of Shares, Options Exercised	(29,475)
Number of Shares, Ending Balance	2,223,674
Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 27.08
Weighted Average Exercise Price, Exercised | $ / shares	13.12
Weighted Average Exercise Price, Ending Balance | $ / shares	$ 27.23
2013 LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Available for Grant,Options Canceled or forfeited	9,074
Number of Shares, Options Canceled or forfeited	(9,074)
Weighted Average Exercise Price, Options Canceled or forfeited | $ / shares	$ 23.40
2006 EIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Available for Grant,Options Canceled or forfeited	0
Number of Shares, Options Canceled or forfeited	(17,807)
Weighted Average Exercise Price, Options Canceled or forfeited | $ / shares	$ 33.27

XML

Stock-Based Compensation - 2006 Executive Incentive Plan and 2013 Long-Term Incentive Plan - Stock Options - Additional Information (Detail) - USD ($) $ in Millions	Apr. 01, 2014	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options granted and outstanding, expected to vest		2,200,000
Intrinsic value of options vested and exercisable		$ 0.3
Aggregate intrinsic value of options outstanding		0.3
Aggregate intrinsic value of options outstanding, vested and expected to vest		$ 0.3
Number of options awarded	0

XML

Stock-Based Compensation - Summary of Information Regarding Options Granted under Executive Incentive Plan (Detail)	6 Months Ended
	Jun. 30, 2016 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Limit	$ 0.00
Exercise Price, Upper Limit	$ 84.80
Outstanding Number of Options | shares	2,223,674
Outstanding Weighted Average Remaining Contractual Life (years)	5 years 8 months 1 day
Outstanding Weighted Average Exercise Price	$ 27.23
Exercisable Number of Options | shares	2,030,927
Exercisable Weighted Average Exercise Price	$ 27.57
0.00-13.12 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Limit	0.00
Exercise Price, Upper Limit	$ 13.12
Outstanding Number of Options | shares	39,661
Outstanding Weighted Average Remaining Contractual Life (years)	5 months 5 days
Outstanding Weighted Average Exercise Price	$ 13.12
Exercisable Number of Options | shares	39,661
Exercisable Weighted Average Exercise Price	$ 13.12
13.13-28.88 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Limit	13.13
Exercise Price, Upper Limit	$ 28.88
Outstanding Number of Options | shares	1,674,014
Outstanding Weighted Average Remaining Contractual Life (years)	5 years 11 months 23 days
Outstanding Weighted Average Exercise Price	$ 25.10
Exercisable Number of Options | shares	1,481,267
Exercisable Weighted Average Exercise Price	$ 25.30
28.89-50.88 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Limit	28.89
Exercise Price, Upper Limit	$ 50.88
Outstanding Number of Options | shares	492,626
Outstanding Weighted Average Remaining Contractual Life (years)	5 years 29 days
Outstanding Weighted Average Exercise Price	$ 33.81
Exercisable Number of Options | shares	492,626
Exercisable Weighted Average Exercise Price	$ 33.81
50.89-84.80 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Limit	50.89
Exercise Price, Upper Limit	$ 84.80
Outstanding Number of Options | shares	17,373
Outstanding Weighted Average Remaining Contractual Life (years)	4 years 1 month 24 days
Outstanding Weighted Average Exercise Price	$ 77.48
Exercisable Number of Options | shares	17,373
Exercisable Weighted Average Exercise Price	$ 77.48

XML

Stock-Based Compensation - Additional Information (Detail) - USD ($)		3 Months Ended			6 Months Ended
	Jan. 28, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2013	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued					17,889
Fair value of common stock issued					$ 400,000
Common stock, shares issued		85,707			85,707		85,459
Compensation expense		$ 6,200,000	$ 6,000,000		$ 13,800,000	$ 11,400,000
2006 EIP and 2013 LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued					625,389
Unrecorded and unrecognized compensation expense related to unvested share based compensation stock options		700,000	4,700,000		$ 700,000	4,700,000
Unrecorded and unrecognized compensation expense related to unvested share based compensation on restricted stock, Recognition period					1 year 3 months 18 days
2013 LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecorded and unrecognized compensation expense related to unvested share based compensation on restricted stock, Recognition period					2 years 7 months 6 days
Unrecorded and unrecognized compensation expense related to unvested share based compensation on restricted stock		$ 45,500,000	38,000,000		$ 45,500,000	38,000,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period					4 years
Vesting Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage					25.00%
Restricted Stock Unit And Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period					3 years 8 months 12 days
Shares issued					408,000
Fair value at the date of grant					$ 9,200,000
Performance-Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period					2 years 8 months 12 days
Shares issued					199,500
Fair value at the date of grant					$ 4,500,000
Performance-Based Restricted Stock Units [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contingent right to receive common stock shares					0
Performance-Based Restricted Stock Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contingent right to receive common stock shares					1.75
Stock Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized				1,000,000
Common stock, additional shares authorized	1,000,000
Percentage of annual compensation designated by employees				50.00%
Maximum shares purchasable per person				2,000
Percentage of shares purchase price to market closing price				85.00%
Maximum voting power				5.00%
Maximum stock purchased to fair market value				$ 25,000
Common stock, shares issued		739,681			739,681
Compensation expense		$ 300,000	$ 300,000		$ 700,000	$ 700,000
Shares issued from the Employee Stock Purchase Plan, shares					182,285
Non-employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period					1 year
Non-employee Directors [Member] | Initial Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based payment award vesting period					6 months

XML

Earnings Per Share - Earnings (Loss) Per Common Share (Detail) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings per common share-basic:
Continuing Operations	$ 0.40	$ 0.59	$ 0.94	$ 1.17
Discontinued Operations	0	0	0	0.38
Total Earnings Per Common Share—Basic	0.40	0.59	0.94	1.55
Earnings per common share- diluted:
Continuing Operations	0.39	0.58	0.92	1.14
Discontinued Operations	0	0	0	0.37
Total Earnings Per Common Share—Diluted	$ 0.39	$ 0.58	$ 0.92	$ 1.51

XML

Earnings Per Share - Weighted Average Number of Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Weighted average number of shares outstanding:
Basic Common	82,598	83,394	82,874	83,758
Dilutive impact of Equity Incentive Plans:
Common shares	1,683	2,198	1,551	2,162
Diluted common shares	84,281	85,592	84,425	85,920

XML

Earnings Per Share - Additional Information (Detail) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Options outstanding to purchase common stock	2,177,738	579,995

XML

Accumulated Other Comprehensive (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Equity [Abstract]
BALANCE	$ (69,563)	$ (67,395)	$ (72,736)	$ (37,506)
Foreign currency translation adjustment, net of tax	(8,571)	8,171	(5,398)	(21,718)
BALANCE	$ (78,134)	$ (59,224)	$ (78,134)	$ (59,224)

XML

Accumulated Other Comprehensive (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Equity [Abstract]
Foreign currency translation adjustment, tax	$ 4,779	$ (4,762)	$ 3,010	$ 12,371

XML

Segment Reporting, Geographic and Customer Information - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) Segment	Jun. 30, 2015 USD ($)
Foreign Currency Translation [Line Items]
Number of operating segments			5
Number of reportable segments			4
Foreign currency exchange rate of west corporation or any of its subsidiaries | $	$ 1.1	$ (1.5)	$ (1.0)	$ (0.2)
Revenues [Member] | Geographic Concentration Risk [Member] | Non-U.S Countries [Member]
Foreign Currency Translation [Line Items]
Percentages of consolidated revenue	21.00%	21.00%	21.00%	21.00%
Revenues [Member] | Geographic Concentration Risk [Member] | United Kingdom [Member]
Foreign Currency Translation [Line Items]
Percentages of consolidated revenue	13.00%	12.00%	13.00%	12.00%
Revenues [Member] | Geographic Concentration Risk [Member] | United Kingdom [Member] | Minimum [Member]
Foreign Currency Translation [Line Items]
Percentages of consolidated revenue	10.00%	10.00%	10.00%	10.00%

XML

Segment Reporting, Geographic and Customer Information - Financial Information of Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Revenue:
REVENUE	$ 582,397	$ 571,891	$ 1,153,176	$ 1,137,381
Depreciation and Amortization (Included in Operating Income):
Depreciation and amortization	48,907	46,742	97,402	93,662
Operating Income:
OPERATING INCOME	123,101	116,433	232,025	227,126
Cash Capital Expenditures:
Cash Capital Expenditures	37,507	28,557	73,864	64,864
Assets:
Assets	3,546,601		3,546,601		$ 3,555,217
Continuing Operations [Member]
Assets:
Assets	3,546,601		3,546,601		3,537,545
Assets Held For Sale [Member]
Assets:
Assets					17,672
Operating Segments [Member] | Unified Communications Services [Member]
Revenue:
REVENUE	370,158	374,651	732,871	744,109
Depreciation and Amortization (Included in Operating Income):
Depreciation and amortization	20,671	20,625	41,607	41,108
Operating Income:
OPERATING INCOME	88,762	98,958	177,830	193,836
Cash Capital Expenditures:
Cash Capital Expenditures	13,337	12,341	26,370	32,240
Operating Segments [Member] | Unified Communications Services [Member] | Continuing Operations [Member]
Assets:
Assets	1,492,257		1,492,257		1,525,890
Operating Segments [Member] | Safety Services [Member]
Revenue:
REVENUE	74,423	66,138	145,587	134,716
Depreciation and Amortization (Included in Operating Income):
Depreciation and amortization	11,446	12,210	22,652	25,019
Operating Income:
OPERATING INCOME	11,871	3,254	20,844	6,456
Cash Capital Expenditures:
Cash Capital Expenditures	11,764	6,387	22,482	12,304
Operating Segments [Member] | Safety Services [Member] | Continuing Operations [Member]
Assets:
Assets	771,599		771,599		786,447
Operating Segments [Member] | Interactive Services [Member]
Revenue:
REVENUE	73,232	63,628	144,961	126,095
Depreciation and Amortization (Included in Operating Income):
Depreciation and amortization	9,350	7,282	18,325	14,436
Operating Income:
OPERATING INCOME	5,958	6,630	11,766	12,204
Cash Capital Expenditures:
Cash Capital Expenditures	6,350	4,478	10,149	8,470
Operating Segments [Member] | Interactive Services [Member] | Continuing Operations [Member]
Assets:
Assets	449,626		449,626		430,793
Operating Segments [Member] | Specialized Agent Services [Member]
Revenue:
REVENUE	67,495	68,566	135,873	135,644
Depreciation and Amortization (Included in Operating Income):
Depreciation and amortization	7,440	6,625	14,818	13,099
Operating Income:
OPERATING INCOME	2,906	8,992	7,424	17,527
Cash Capital Expenditures:
Cash Capital Expenditures	2,603	3,104	5,560	5,880
Operating Segments [Member] | Specialized Agent Services [Member] | Continuing Operations [Member]
Assets:
Assets	474,077		474,077		491,449
Eliminations [Member]
Revenue:
REVENUE	(2,911)	(1,092)	(6,116)	(3,183)
Corporate Other-Unallocated [Member]
Operating Income:
OPERATING INCOME	13,604	(1,401)	14,161	(2,897)
Cash Capital Expenditures:
Cash Capital Expenditures	3,453	$ 2,247	9,303	$ 5,970
Corporate Other-Unallocated [Member] | Continuing Operations [Member]
Assets:
Assets	$ 359,042		$ 359,042		$ 302,966

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Segment Reporting, Geographic and Customer Information - Geographic Information by Organizational Region (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Revenue:
REVENUE	$ 582,397	$ 571,891	$ 1,153,176	$ 1,137,381
Long-Lived Assets:
Long-Lived Assets	2,780,388		2,780,388		$ 2,812,045
Americas-United States [Member]
Revenue:
REVENUE	459,330	454,656	911,760	901,869
Long-Lived Assets:
Long-Lived Assets	2,567,467		2,567,467		2,593,739
Europe, Middle East & Africa (EMEA) [Member]
Revenue:
REVENUE	81,430	77,250	160,825	155,227
Long-Lived Assets:
Long-Lived Assets	185,955		185,955		195,203
Asia Pacific [Member]
Revenue:
REVENUE	36,473	37,800	71,129	72,311
Long-Lived Assets:
Long-Lived Assets	19,697		19,697		21,151
Americas-Other [Member]
Revenue:
REVENUE	5,164	$ 2,185	9,462	$ 7,974
Long-Lived Assets:
Long-Lived Assets	$ 7,269		$ 7,269		$ 1,952

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Commitments and Contingencies - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Commitments [Line Items]
Product liability contingency, loss exposure description	There are asserted claims against the Company where an unfavorable outcome is considered to be reasonably possible. These claims can generally be categorized in the following areas: (l) commercial disputes with customers or other business partners, which may involve assertion of a breach of the Company’s legal or contractual obligations to the customer or a claim for indemnification for third-party losses; and (2) other matters which may include issues such as employment related claims.
Alorica Inc. [Member]
Commitments [Line Items]
Discontinued operations, indemnification up to purchase price liability	$ 275,000
Discontinued operations, indemnification liability for breaches of representations and warranties	13,750
Minimum [Member]
Commitments [Line Items]
Product liability contingency, loss exposure in excess of accrual	0
Maximum [Member]
Commitments [Line Items]
Product liability contingency, loss exposure in excess of accrual	$ 20,000

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Supplemental Cash Flow Information - Supplemental Information About Cash Flows (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	$ 75,684	$ 86,314
Cash paid during the period for income taxes, net of refunds of $3,703 and $939	23,939	63,727
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:
Accrued obligations for the purchase of property and equipment	(4,849)	(13,628)
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES:
Accrued dividends	854	602
Accrued deferred financing costs	$ 1,079	$ 0

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Supplemental Cash Flow Information - Supplemental Information About Cash Flows (Parenthetical) (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Income taxes paid, refunds	$ 3,703	$ 939

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Subsequent Events - Additional Information (Detail) $ in Millions		6 Months Ended
	Jul. 26, 2016 USD ($) Swap	Jun. 30, 2016
Subsequent Event [Line Items]
Derivative, description of terms		1-month LIBOR swap and a 3-month LIBOR swap
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of interest rate swap agreements | Swap	2
Subsequent Event [Member] | Three Month London Inter Bank Offered Rate Swap
Subsequent Event [Line Items]
Notional amount of interest rate swap agreements	$ 275.0
Derivative, maturity date	Jul. 17, 2021
Amortization, variable interest rate floor	1.00%
Derivative, basis points on variable rate	0.75%
Subsequent Event [Member] | Interest Rate Swap [Member]
Subsequent Event [Line Items]
Notional amount of interest rate swap agreements	$ 275.0
Derivative, maturity date	Jul. 17, 2021