Earthlink 2004 Annual Report Download - page 28

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(1)
Reflects the accretion of liquidation dividends on Series A and Series B convertible preferred stock at a 3% annual rate, compounded
quarterly, and the accretion of a dividend related to the beneficial conversion feature in accordance with Emerging Issues Task Force
(“EITF”) Issue No. 98-5. During 2003, Sprint converted all remaining shares of Series A and Series B convertible preferred stock into
common stock. Consequently, there are currently no shares of Series A or Series B convertible preferred stock outstanding and no
associated dividend obligations.
(2)
In February 2000, each outstanding share of then existing EarthLink Network, Inc. common stock was exchanged for 1.615 shares of
common stock of EarthLink and each outstanding share of then existing MindSpring Enterprises, Inc. common stock was exchanged for
one share of common stock of EarthLink.
(3)
Investments in marketable securities consist of debt securities classified as available-for-sale and have maturities greater than 90 days
from the date of acquisition, including auction rate securities that have reauction periods of less than 90 days but have underlying
maturities of greater than 90 days. EarthLink has invested primarily in U.S. corporate notes and asset-backed securities, all of which have
a minimum investment rating of A, and government agency notes.
25
As of December 31,
2000
2001
2002
2003
2004
(in thousands)
Balance sheet data:
Cash and cash equivalents
$
674,746
$
173,292
$
170,891
$
208,740
$
218,910
Investments in marketable securities
(3)
—
420,732
344,546
279,125
312,060
Cash and marketable securities
674,746
594,024
515,437
487,865
530,970
Total assets
1,486,137
1,182,781
1,023,553
827,020
805,450
Long-term debt, including long-term
portion of capital leases
13,472
2,423
937
342
287
Total liabilities
303,886
331,727
331,253
283,357
257,843
Accumulated deficit
(698,030
)
(1,068,971
)
(1,236,991
)
(1,303,771
)
(1,192,762
)
Stockholders
’
equity
1,182,251
851,054
692,300
543,663
547,607