Earthlink 2000 Annual Report Download - page 49

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EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. STRATEGIC ALLIANCES AND ACQUISITIONS (CONTINUED) amortized on a straight-line basis over 36 months. Management may
refine the allocation of the purchase price in future periods as the related fair value appraisals of certain assets and liabilities are finalized.
The following unaudited pro forma results of operations for the two years ended December 31, 2000, assume the acquisitions of Netcom and
OneMain occurred on January 1, 1999. These unaudited pro forma results have been prepared for comparative purposes only and do not
purport to be indicative of the results of operations that actually would have resulted had the acquisitions occurred on the date indicated, or
which may result in the future.
During the three months ended March 31, 2000, the Company recorded a charge of $34.0 million related to the merger of EarthLink Network
and MindSpring. Substantially all of this amount has been paid as of December 31, 2000.
On September 12, 2000, EarthLink assumed OneMain's restructuring liabilities of $5.4 million. OneMain had acquired 27 Internet service
providers and was working to consolidate the operating, general and administrative functions of the ISPs. OneMain recognized a restructuring
charge related to employee termination benefits and certain real estate contracts. The plan called for the net reduction of over 650 positions in
operations and customer support, sales and marketing and general and administrative departments. As of December 31, 2000, approximately
418 employees have been terminated as a result of this plan. No additional adjustments have been made to the reserve. The
F
-
15
YEAR ENDED DECEMBER 31,
------------------------
1999 2000
---------- -----------
(IN THOUSANDS,
EXCEPT PER SHARE DATA)
(UNAUDITED)
STATEMENT OF OPERATIONS DATA:
Total revenues........................................ $ 791,556 $1,098,768
Net loss.............................................. (317,674) (514,755)
Deductions for accretion dividends.................... (14,106) (23,730)
--------- ----------
Net loss attributable to common stockholders.......... $(331,780) $ (538,485)
========= ==========
Basic and diluted net loss per share.................. $ (2.63) $ (4.06)
========= ==========
Weighted-average shares............................... 126,387 132,519
========= ==========