Earthlink 2009 Annual Report Download - page 111
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106
of these assets were impaired in conjunction with its annual tests of goodwill and intangible assets deemed to have indefinite lives.
(2)
Interest expense and other, net, reflects the adoption of new accounting guidance on January 1, 2009. This new guidance affected the accounting for the
Company's Notes and resulted in additional non-cash interest expense. Prior period amounts have been restated.
(3)
During the quarters ended December 31, 2008 and 2009, EarthLink recorded income tax benefits in the Statement of Operations of $56.1 million and
$198.8 million, respectively, as a result of releases of its valuation allowance related to deferred tax assets. These deferred tax assets related primarily to net
operating loss carryforwards which the Company determined it will more likely than not be able to utilize due to the generation of sufficient taxable income in the
future.
(4)
In November 2007, management concluded that the municipal wireless broadband operations were no longer consistent with EarthLink's strategic direction and
the Company's Board of Directors authorized management to pursue the divestiture of the Company's municipal wireless broadband assets. As a result of that
decision, the Company classified the municipal wireless broadband assets as held for sale and presented the municipal wireless broadband operations as
discontinued operations for all periods presented.
(5)
The quarterly net income per share amounts will not necessarily add to the net income per share computed for the year because of the method used in calculating
per share data.