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Table of Contents
EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
interest and penalties associated with uncertain tax positions is to record such items as a component of income tax expense. As of December 31, 2014 and 2015 ,
$0.2 million and $0.8 million , respectively, of interest and $0.1 million and $0.1 million of penalties, respectively, had been accrued. As of December 31, 2015, it
is reasonably possible that approximately $2.2 million of the total gross uncertain tax positions recorded, including $0.9 million of associated interest and penalties,
will reverse within the next twelve months, primarily due to the resolution of state tax examinations and the expiration of statutes of limitation in various
jurisdictions.
A reconciliation of changes in the amount of unrecognized tax benefits for the years ended December 31, 2013, 2014 and 2015 is as follows:
Year Ended December 31,
2013
2014
2015
(in thousands)
Balance as of January 1 $ 23,400
$ 21,628
$ 17,205
Additions for tax positions of prior years 63
—
1,332
Reductions as a result of lapses in applicable statute of limitations (1,835)
(4,423)
(180)
Balance as of December 31 $ 21,628
$ 17,205
$ 18,357
Of the total gross uncertain tax positions recorded on the balance sheet, $1.6 million would impact the effective tax rate once settled.
13. Commitments and Contingencies
Operating leases
The Company leases certain of its facilities under various non-cancelable operating leases. The facility leases generally require the Company to pay operating
costs, including property taxes, insurance and maintenance, and generally contain annual escalation provisions as well as renewal options. Total rent expense
(including operating expenses) during the years ended December 31, 2013, 2014 and 2015 for all operating leases, excluding rent and operating expenses
associated with facilities exited as part of the Company's restructuring plans, was $37.1 million , $35.6 million and $32.2 million , respectively.
Minimum lease commitments (including estimated operating expenses) under non-cancelable leases as of December 31, 2015 are as follows:
Year Ending December 31, (in thousands)
2016 $ 33,898
2017 29,922
2018 24,158
2019 19,142
2020 10,996
Thereafter 18,918
Total minimum lease payments, including estimated operating expenses 137,034
Less aggregate contracted sublease income (8,720)
$ 128,314
88