Earthlink 2015 Annual Report Download - page 44

Table of Contents
• partially offset by $7.3 million of restructuring costs recorded during the year ended December 31, 2014 for severance and other employee costs in
connection with a reduction in workforce that eliminated approximately 450 positions driven by changes in our business strategy. Such costs were
included in restructuring, acquisition and integration-related costs in the Consolidated Statement of Comprehensive Loss.
The decrease in restructuring, acquisition and integration-related costs during the year ended December 31, 2015 compared to the prior year was primarily due to
the following:
• the completion of integration projects during the year;
• partially offset by an increase is restructuring costs. During the year ended December 31, 2015, we recored $13.4 million of restructuring costs in
connection with changes in our business strategy, consisting of $9.8 million of severance and other employee costs due to reductions in workforce and
$3.6 million of facilities-related costs due to the closing of certain sales offices. Such costs were included in restructuring, acquisition and integration-
related costs in the Consolidated Statement of Comprehensive Loss.
Interest expense and other, net
Interest expense and other, net, is primarily comprised of interest expense incurred on our debt and capital leases, amortization of debt issuance costs, debt
premiums, and debt discounts; interest earned on our cash, cash equivalents and marketable securities; and other miscellaneous income and expense items.
The following table presents our interest expense and other, net, for the years ended December 31, 2013, 2014 and 2015 :
Year Ended December 31,
2014 vs 2013
2015 vs 2014
2013
2014
2015
$ Change
% Change
$ Change
% Change
(dollars in thousands)
Interest expense $ 58,415
$ 56,382
$ 49,979
$ (2,033)
(3)%
$ (6,403)
(11)%
Interest income (84)
(125)
—
41
49%
(125)
(100)%
Other, net 275
4
993
(271)
(99)%
989
*
Total interest expense and other, net $ 58,606
$ 56,261
$ 50,972
$ (2,263)
(4)%
$ (5,539)
(10)%
________
* Percentage is not meaningful
The decrease in interest expense and other, net, during the year ended December 31, 2014 compared to the prior year was primarily due to lower interest expense
resulting from the repayment of our remaining 10.5% ITC^DeltaCom Notes in May 2013 and issuance of 7.375% Senior Secured Notes due 2020.
The decrease in interest expense and other, net, during the year ended December 31, 2015 compared to the prior year was primarily due to lower interest expense
resulting from reduced outstanding debt. In March 2015, we repurchased $21.1 million outstanding principal amount of our 8.875% Senior Notes due 2019 (the
“Senior Notes”) in the open market. In April 2015, we repurchased an additional $5.0 million outstanding principal amount of our Senior Notes in the open market.
In June 2015, we redeemed $70.0 million aggregate principal amount of our Senior Notes pursuant to terms under the indenture. In August 2015, we repurchased
$30.0 million aggregate principal amount of our Senior Notes in the open market. We drew under our senior secured revolving credit facility to help fund the
redemption in June 2015, of which $35.0 million was outstanding as of December 31, 2015. For more information about these transactions, refer to Note 7 to our
Consolidated Financial Statements.
Loss on extinguishment of debt
During the years ended December 31, 2013 and 2015, we recorded $2.1 million and $9.7 million, respectively, for losses on extinguishment of debt. The losses
consisted of premiums paid on our repurchases and redemptions, the write-off of unamortized discount on debt and the write-off of unamortized debt issuance
costs. No loss on extinguishment of debt was recorded during the year ended December 31, 2014. For more information about our debt transactions, refer to Note 7
to our Consolidated Financial Statements.
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