Earthlink 2007 Annual Report Download - page 88

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EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
UNAUDITED—(Continued)
not committed to provide further financial support to HELIO. The Company had been recording its proportionate share of HELIO's net loss in its
Consolidated Statements of Operations and amortizing the difference between the book value and fair value of non-cash assets contributed to
HELIO over their estimated useful lives. The amortization increased the carrying value of the Company's investment and decreased the net
losses of equity affiliate included in the Consolidated Statements of Operations. During the years ended December 31, 2005, 2006 and 2007, the
Company recorded $15.6 million, $84.8 million and $111.3 million, respectively, of net losses of equity affiliate related to its HELIO
investment, which is net of amortization of basis differences and certain other equity method accounting adjustments.
The following is summarized statement of operations information of HELIO for the years ended December 31, 2005, 2006 and 2007:
The following is summarized balance sheet information of HELIO as of December 31, 2006 and 2007:
7. Property and Equipment
Property and equipment is recorded at cost and consisted of the following as of December 31, 2006 and 2007:
During the year ended December 31, 2007, the Company wrote-down and retired abandoned and disposed property and equipment that had
a cost basis of $285.6 million and accumulated depreciation of $264.5 million.
82
Year Ended December 31,
2005
2006
2007
(in thousands)
Revenues
$
16,365
$
46,580
$
170,988
Operating loss
(45,658
)
(201,266
)
(328,196
)
Net loss
(42,023
)
(191,755
)
(326,562
)
As of December 31,
2006
2007
(in thousands)
Current assets
$
184,014
$
111,074
Long
-
term assets
80,956
58,999
Current liabilities
81,619
107,539
Long
-
term liabilities
2,123
64,032
As of December 31,
2006
2007
(in thousands)
Data center and network equipment
$
276,692
$
146,709
Office and other equipment
193,692
118,801
Land and buildings
15,113
15,120
Leasehold improvements
64,569
48,126
Construction in progress
8,315
—
558,381
328,756
Less accumulated depreciation
(477,624
)
(271,456
)
$
80,757
$
57,300