Earthlink 2005 Annual Report Download - page 50

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As of December 31, 2005, we had paid all telecommunications service termination costs and employee and personnel related costs related
to the 2003 Plan and the 2004 Plan, and substantially all severance and personnel-related costs associated with the 2005 Plans. We realized
reduced costs over the past three years as a result of completing the various plans. We expect to incur future cash outflows for real estate
obligations through 2010 related to the 2003 Plan and through 2008 related to the 2004 Plan.
The following tables summarize the activity for the liability balances associated with the 2003 Plan, 2004 Plan and 2005 Plans as of and
for the years ended December 31, 2003, 2004 and 2005, including changes during the period attributable to costs incurred and charged to
expense, costs paid or otherwise settled and adjustments to the liabilities:
Liquidity and Capital Resources
The following table sets forth summarized cash flow data for the years ended December 31, 2003, 2004 and 2005:
49
Facility
Balance
Exit
Non
-
Cash
December 31,
Costs
Items
Adjustments
Payments
2003
(in thousands)
Severance and personnel
-
related costs
$
10,737
$
—
$
483
$
(11,220
)
$
—
Real estate and telecommunications costs, including
non
-
cancelable leases
18,207
—
(
483
)
(7,832
)
9,892
Abandoned and disposed assets
7,652
(7,652
)
—
—
—
$
36,596
$
(7,652
)
$
—
$
(
19,052
)
$
9,892
Balance
Facility
Balance
December 31,
Exit
Non
-
Cash
Deferred Rent
December 31,
2003
Costs
Items
Reclassification
Adjustments
Payments
2004
(in thousands)
Severance and personnel-related
costs
$
—
$
10,580
$
—
$
—
$
26
$
(10,601
)
$
5
Real estate and telecommunications
costs, including non-cancelable
leases
9,892
11,292
—
1,359
(2,069
)
(12,089
)
8,385
Abandoned and disposed assets
—
8,360
(8,565
)
—
205
—
—
$
9,892
$
30,232
$
(8,565
)
$
1,359
$
(1,838
)
$
(22,690
)
$
8,390
Balance
Balance
December 31,
Costs
December 31,
2004
Incurred
Adjustments
Payments
2005
(in thousands)
Severance and personnel
-
related costs
$
5
$
1,403
$
—
$
(
1,343
)
$
65
Real estate and telecommunications costs, including non-
cancelable leases
8,385
—
677
(3,468
)
5,594
$
8,390
$
1,403
$
677
$
(4,811
)
$
5,659
Year Ended December 31,
2003
2004
2005
(in thousands)
Net income (loss)
$
(62,194
)
$
111,009
$
142,780
Non
-
cash items
172,257
93,344
78,222
Changes in working capital
(8,335
)
(16,201
)
(32,298
)
Net cash provided by operating activities
$
101,728
$
188,152
$
188,704
Net cash provided by (used in) investing activities
$
25,003
$
(69,070
)
$
(65,081
)
Net cash used in financing activities
$
(88,882
)
$
(108,912
)
$
(169,239
)