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EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
fixed assets, net of proceeds received. As a result, EarthLink reduced its facility exit costs by $1.8 million during the year ended December 31,
2004.
The following tables summarize the accrued costs associated with the 2003 Plan and 2004 Plan as of and for the years ended
December 31, 2003 and 2004:
Of the unpaid balance as of December 31, 2004, approximately $1.2 million and $3.1 million associated with the 2003 Plan and 2004
Plan, respectively, was classified as other long-term liabilities in the Consolidated Balance Sheet as of December 31, 2004.
5. Goodwill and Intangible Assets
The following table presents the components of the Company’s acquired definite life intangible assets and goodwill and other indefinite
life intangible assets included in the accompanying Consolidated Balance Sheets as of December 31, 2003 and 2004:
e
During the year ended December 31, 2004, goodwill decreased $5.3 million as a result of reducing or eliminating contingent liabilities
related to taxes established at the acquisition of PeoplePC that are not considered probable of being paid. Also during the year ended
December 31, 2004, goodwill decreased $2.0 million due to the realizability of tax benefits associated with net operating loss carryforwards
which
76
2003 Plan
Facility
Exit
Costs
Non
-
Cash
Items
Payments
Net
Adjustments
Balance
December 31,
2003
Net
Adjustments
Payments
Balance
December 31,
2004
(in thousands)
Severance and personnel related costs
$
10,737
$
—
$
(
11,220
)
$
483
$
—
$
—
$
—
$
—
Real estate and telecommunications
costs, including non-cancelable
leases
18,207
—
(
7,832
)
(483
)
9,892
(867
)
(6,467
)
2,558
Abandoned and disposed assets
7,652
(7,652
)
—
—
—
—
—
—
$
36,596
$
(7,652
)
$
(19,052
)
$
—
$
9,892
$
(867
)
$
(6,467
)
$
2,558
Facility
Balance
Exit
Net
Non-Cash
Deferred Rent
December 31,
2004 Plan
Costs
Adjustments
Items
Reclassification
Payments
2004
(in thousands)
Severance and personnel related costs
$
10,580
$
26
$
—
$
—
$
(
10,601
)
$
5
Real estate and telecommunications costs,
including non-cancelable leases
11,292
(1,202
)
—
1,359
(5,622
)
5,827
Abandoned and disposed assets
8,360
205
(8,565
)
—
—
—
$
30,232
$
(971
)
$
(8,565
)
$
1,359
$
(16,223
)
$
5,832
As of December 31, 2003
As of December 31, 2004
Gross
Net
Gross
Net
Carrying
Accumulated
Carrying
Carrying
Accumulated
Carrying
Value
Amortization
Value
Value
Amortization
Value
(in thousands)
Acquired subscriber bases
$
330,510
$
(292,246
)
$
38,264
$
330,278
$
(316,608
)
$
13,670
Goodwill and other indefinite life
intangible assets
$
118,231
$
110,962