Earthlink 2007 Annual Report Download - page 108

EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
UNAUDITED—(Continued)
as security products, email by phone, Internet call waiting and email storage; and revenues from home networking products and services.
Business access and service revenues consist of retail and wholesale fees charged for high-speed, high-capacity access services including
DSL, cable, satellite and dedicated circuit services; fees charged for high-speed data networks for small and medium-sized businesses;
installation fees; termination fees; fees for equipment; regulatory surcharges billed to customers; and web hosting.
Information on revenues by groups of similar services and by segment for the years ended December 31, 2005, 2006 and 2007 is as follows:
The Company manages its working capital on a consolidated basis and does not allocate long-lived assets to segments. In addition, segment
assets are not reported to, or used by, the chief operating decision maker and therefore, pursuant to SFAS No. 131, total segment assets have not
been disclosed.
The Company has not provided information about geographic segments because substantially all of the Company's revenues, results of
operations and identifiable assets are in the United States.
20. Subsequent Event
As of February 27, 2008, the Company held approximately $60.0 million of auction rate securities, of which auctions for approximately
$20.0 million failed to settle at auction, resulting in the Company continuing to hold such securities. These securities are variable-rate debt
instruments whose underlying agreements have contractual maturities of up to 40 years, but have interest rate reset periods at pre-determined
intervals, usually every 28 days. These securities are secured by pools of student loans guaranteed by state regulated higher education agencies
and reinsured by the United States Department of Education. The Company may not be able to access these funds until a successful auction
occurs or until the underlying notes mature. The Company will continue to evaluate the fair value of its investments in auction rate securities
each reporting period for a potential other-than-temporary impairment if a decline in fair value occurs.
101
Year Ended December 31,
2005
2006
2007
(in thousands)
Consumer Services
Access and service
$
1,140,241
$
1,021,620
$
897,423
Value
-
added services
79,464
117,634
127,985
Total revenues
$
1,219,705
$
1,139,254
$
1,025,408
Business Services
Access and service
$
66,666
$
158,409
$
187,709
Value
-
added services
3,701
3,409
2,877
Total revenues
$
70,367
$
161,818
$
190,586
Consolidated
Access and service
$
1,206,907
$
1,180,029
$
1,085,132
Value
-
added services
83,165
121,043
130,862
Total revenues
$
1,290,072
$
1,301,072
$
1,215,994