Earthlink 2005 Annual Report Download - page 52

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$9.4 million to purchase the assets of Aluria and $6.7 million for acquiring subscriber bases from other ISPs. Management continuously
reviews industry and economic conditions to identify opportunities to pursue acquisitions of subscriber bases and invest in and acquire other
companies. Partially offsetting these investing outlays were proceeds of $63.5 million from sales and maturities of investments in marketable
securities, net of purchases, and $4.4 million of distributions received from our equity investments in other companies.
Financing activities
Our financing activities used cash of $88.9 million, $108.9 million and $169.2 million during the years ended December 31, 2003, 2004
and 2005, respectively. This consisted primarily of $90.2 million, $125.7 million and $192.6 million, respectively, used to repurchase 14.8
million, 12.7 million and 20.5 million shares, respectively, of our common stock. Partially offsetting cash used for repurchases were proceeds
from the exercise of stock options and from the sale of common stock pursuant to our employee stock purchase plan of $4.4 million, $17.7
million and $23.4 million during the years ended December 31, 2003, 2004 and 2005, respectively.
Off-Balance Sheet Arrangements
As of December 31, 2005, we did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or
future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that are material to investors.
Contractual Obligations and Commitments
As of December 31, 2005, we had the following contractual commitments:
We lease certain facilities and certain equipment under non-cancelable operating leases expiring in various years through 2014. Access to
the Internet for customers outside of our base of owned POPs is provided through capacity leased from a number of third-
party providers under
non-cancelable network service agreements that expire at various dates through 2008.
During the year ended December 31, 2005, we extended the term of our lease for one of our facilities in Pasadena, California for an
additional seven years, from 2007 to 2014. The extension of the lease term increased our aggregate future minimum lease commitment for the
facility by $17.1 million, including estimated costs for facility expenses such as property taxes, maintenance and utility costs.
51
Year Ending December 31,
2009
–
2006
2007
2008
2014
(in millions)
Non
-
cancelable operating leases, net of subleases
$
14.6
$
10.8
$
6.0
$
52.9
Non
-cancelable network service agreements and
purchase commitments
54.0
43.6
30.1
—
Notes payable
3.0
1.0
—
—
$
71.6
$
55.4
$
36.1
$
52.9