Earthlink 2004 Annual Report Download - page 92

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EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents the amounts of our cash equivalents and short- and long-term investments that are subject to market risk by
range of expected maturity and weighted-average interest rates as of December 31, 2003 and 2004. This table does not include money market
funds because those funds are not subject to market risk.
*
The maturity of asset-backed, auction rate securities for purposes of this calculation is the date of the next auction.
17. Supplemental Disclosure of Cash Flow Information
18. Related Party Transactions
Sprint
Through its ownership interest in EarthLink, Sprint is considered a related party. The Company has a marketing relationship with Sprint.
During the years ended December 31, 2002, 2003 and 2004, the Company’s relationship with Sprint generated approximately 10% of
EarthLink’s total gross organic subscriber additions. Sprint may pursue relationships with other ISPs, and a significant decrease in the number
of gross subscriber additions generated through the Company’s relationship with Sprint would adversely affect the Company’s results of
operations.
89
As of December 31, 2003
As of December 31, 2004
Estimated
Estimated
Fair
Fair
Cost
Value
Cost
Value
(dollars in thousands)
Included in cash and cash equivalents
$
17,787
$
17,787
$
—
$
—
Weighted average interest rate
1.1
%
—
Weighted average maturity (mos.)
0.8
—
Included in marketable securities
-
short
-
term
$
230,205
$
230,088
$
254,220
$
253,572
Weighted average interest rate
1.4
%
2.1
%
Weighted average maturity (mos.)*
3.0
3.7
Included in marketable securities
-
long
-
term
$
49,037
$
49,037
$
58,680
$
58,488
Weighted average interest rate
1.7
%
2.5
%
Weighted average maturity (mos.)
14.1
19.5
Year Ended December 31,
2002
2003
2004
(in thousands)
Significant non-cash transactions
Issuance of common stock in conjuction with acquisitions
$
1,341
$
—
$
—
Assets acquired pursuant to capital leases
2,101
—
—
Non
-
cash working capital adjustments to reduce goodwill
—
2,150
5,300
Additional cash flow information
Cash paid during the year for interest
$
1,045
$
877
$
677
Cash paid during the year for income taxes
—
—
1,778