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Table of Contents EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
17. Supplemental Disclosure of Cash Flow Information
18. Segment Information
The Company reports segment information along the same lines that its chief executive officer reviews its operating results in assessing
performance and allocating resources. The Company operates two
reportable segments, Business Services and Consumer Services. The
Company’
s Business Services segment provides a broad range of data, voice and managed services to retail and wholesale business customers.
The Company’s Consumer Services segment provides nationwide Internet access and related value-added services to residential customers.
The Company evaluates performance of its segments based on segment operating income. Segment operating income includes revenues from
external customers, related cost of revenues and operating expenses directly attributable to the segment, which include costs over which segment
managers have direct discretionary control, such as advertising and marketing programs, customer support expenses, product development
expenses, certain technology and facilities expenses, billing operations and provisions for doubtful accounts. Segment operating income excludes
other income and expense items and certain expenses over which segment managers do not have discretionary control. Costs excluded from
segment operating income include various corporate expenses (consisting of certain costs such as corporate management, human resources,
finance and legal), depreciation and amortization, impairment of goodwill and intangible assets, restructuring, acquisition and integration-
related
costs, and stock-based compensation expense, as they are not considered in the measurement of segment performance.
87
Year Ended December 31,
2012
2013
2014
(in thousands)
Cash paid during the year for interest
$
66,513
$
62,309
52,317
Cash paid during the year for income taxes
2,910
1,316
1,071