Earthlink 2003 Annual Report Download - page 55

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The Company's definite life intangible assets primarily consist of subscriber bases and other assets that are not deemed to have indefinite
lives acquired in conjunction with the purchases of businesses and subscriber bases from other ISPs, but exclude any acquired software.
Generally, definite life intangible assets are amortized on a straight-line basis over three years from the date of their respective acquisitions.
Based on the current amount of definite life intangible assets, the Company expects to record amortization expense of approximately
$26.0 million, $11.0 million and $1.3 million during the years ending December 31, 2004, 2005 and 2006, respectively. Actual amortization
expense to be reported in future periods could differ from these estimates as a result of asset acquisitions, changes in useful lives and other
relevant factors.
6. Investments in Marketable Securities
Short- and long-term investments in marketable securities consist of debt securities classified as available-for-sale and have maturities
greater than 90 days from the date of acquisition. The Company has invested primarily in U.S. corporate notes and asset-backed securities, all
of which have a minimum investment rating of A, and government agency notes. The Company determines realized gains and losses on a
specific identification basis. The realized gains and losses are included in interest income and other, net, in the accompanying Consolidated
Statements of Operations. The following table summarizes
F-20
proceeds received from the sale of available-for-sale securities and realized gains and losses from the sale of available-for-
sale securities for the
years ended December 31, 2001, 2002 and 2003:
The following table summarizes unrealized gains and losses on the Company's investments in marketable securities based primarily on
quoted market prices at December 31, 2002 and 2003:
Year Ended
December 31, 2001
(in thousands, except per share
data)
(unaudited)
Net loss attributable to common stockholders:
As reported $
(370,941
)
As adjusted $
(328,664
)
Basic and diluted net loss per share:
As reported $
(2.73
)
As adjusted $
(2.42
)
Year Ended December 31,
2001
2002
2003
(in thousands)
Proceeds from the sale of investments
$
—
$
62,696
$
52,851
Realized gains from the sale of investments
—
371
336
Realized losses from the sale of investments
—
(
324
)
(10
)
As of December 31, 2002
As of December 31, 2003
Amortized
Cost
Gross
Unrealized
Losses
Gross
Unrealized
Gains
Estimated
Fair
Value
Amortized
Cost
Gross
Unrealized
Losses
Gross
Unrealized
Gains
Estimated
Fair
Value
(in thousands)
Less than 12 months
U.S. corporate notes $
87,427
$
(15
) $
414
$
87,826
$
67,319
$
(42
) $ — $
67,277
Government agency notes
1,502
(12
)
—
1,490
3,100
—
—
3,100
Asset-backed securities
19,542
—
120
19,662
18,786
(75
) —
18,711
$
108,471
$
(27
) $
534
$
108,978
$
89,205
$
(117
) $ — $
89,088