Earthlink 2005 Annual Report Download - page 86

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EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
7. Property and Equipment
Property and equipment is recorded at cost and consisted of the following as of December 31, 2004 and 2005:
During the year ended December 31, 2005, the Company wrote-down and retired abandoned and disposed property and equipment that
had a cost basis and accumulated depreciation of $6.8 million.
Depreciation expense charged to operations, which includes depreciation expense associated with property under capital leases, was $79.9
million, $54.9 million and $34.9 million for the years ended December 31, 2003, 2004 and 2005, respectively.
8. Other Accounts Payable and Accrued Liabilities
Other accounts payable and accrued liabilities consisted of the following as of December 31, 2004 and 2005:
9. Common Stock
Shareholder Rights Plan
During 2002, the Board of Directors adopted a shareholder rights plan (the “Rights Plan”). In connection with the Rights Plan, the Board
of Directors also declared a dividend of one right for each
85
As of December 31,
2004
2005
(in thousands)
Data center and network equipment
$
244,358
$
256,951
Office and other equipment
173,057
185,734
Land and buildings
13,936
14,777
Leasehold improvements
58,147
58,332
Construction in progress
4,440
1,992
493,938
517,786
Less accumulated depreciation
(416,470
)
(444,609
)
$
77,468
$
73,177
As of December 31,
2004
2005
(in thousands)
Accrued communications costs
$
16,498
$
7,952
Accrued advertising
18,216
19,026
Accrued taxes
11,792
7,923
Accrued bounties
13,290
9,760
Liabilities associated with non
-
cancelable operating leases
6,543
3,473
Accrued outsourced customer support
9,052
10,088
Subscriber base and fixed asset purchases
6,550
3,858
Other
20,773
22,059
$
102,714
$
84,139