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Table of Contents EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
6. Discontinued Operations
The following table presents summarized results of operations related to discontinued operations for the years ended December 31, 2012, 2013
and 2014 :
The operating results of the Company's telecom systems business acquired as part of ITC^DeltaCom have been separately presented as
discontinued operations for all periods presented. On August 2, 2013, the Company sold its telecom systems business. The Company received
$0.6 million of cash upon completion of the sale and had a $0.4 million
receivable as of December 31, 2014 for contingent consideration
expected to be received. The Company has no significant continuing involvement in the operations or significant continuing direct cash flows.
The telecom systems results of operations were previously included in the Company's Business Services segment.
7. Property and Equipment
The Company's property and equipment consisted of the following as of December 31, 2013 and 2014 :
Depreciation expense, which includes amortization of property under capital leases, was $112.5 million , $116.7 million and $123.7 million
for
the years ended December 31, 2012, 2013 and 2014 , respectively.
During the year ended December 31, 2014, the Company wrote-off, retired and impaired property and equipment that had a cost basis of
$67.9
million and accumulated depreciation of $51.8 million .
70
Year Ended December 31,
2012
2013
2014
(in thousands)
Revenues
13,842
$
6,141
$
116
Operating costs and expenses
(17,860
)
(8,102
)
(497
)
Income tax benefit
1,600
—
—
Loss from discontinued operations, net of tax
(2,418
)
$
(1,961
)
$
(381
)
As of December 31, 2013
As of December 31, 2014
(in thousands)
Communications and fiber optic networks
$
551,848
$
595,050
Computer equipment and software
231,818
251,107
Land and buildings
42,056
42,379
Leasehold improvements
37,754
29,336
Office and other equipment
15,679
14,521
Work in progress
32,168
15,693
Property and equipment, gross
911,323
948,086
Less accumulated depreciation
(473,002
)
(543,373
)
Property and equipment, net
$
438,321
$
404,713