Earthlink 2009 Annual Report Download - page 53
Download and view the complete annual report
Please find page 53 of the 2009 Earthlink annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43 -
44 -
45 -
46 -
47 -
48 -
49 -
50 -
51 -
52 -
53 -
54 -
55 -
56 -
57 -
58 -
59 -
60 -
61 -
62 -
63 -
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
 |
 |
Table of Contents
Facility Exit and Restructuring Costs
2007 Plan.
We expect to incur future cash outflows for real estate obligations through 2014 related to the 2007 Plan. The following table
summarizes activity for the liability balances associated with the 2007 Plan for the years ended December 31, 2007, 2008 and 2009, including
changes during the year attributable to costs incurred and charged to expense and costs paid or otherwise settled:
Legacy Plans.
As of December 31, 2009, we had a $0.5 million liability remaining for real estate commitments associated with the
Legacy Plans. All other costs have been paid or otherwise settled. We expect to incur future cash outflows for real estate obligations through
2010 related to the Legacy Plans.
Liquidity and Capital Resources
The following table sets forth summarized cash flow data for the years ended December 31, 2007, 2008 and 2009:
Operating activities
Net cash provided by operating activities increased during the year ended December 31, 2008 compared to the year ended December 31,
2007. The increase was primarily due to a decrease in costs to acquire and support new customers, a decrease in operating costs resulting from
our efforts to reduce our back-
office cost structure, benefits realized from the 2007 Plan and a reduction in customer support costs and bad debt
expense as our overall subscriber base has decreased and become longer tenured. Net cash provided by operating activities decreased during the
year ended December 31, 2009 compared to the year
49
Severance
and Benefits
Facilities
Asset
Impairments
Other
Costs
Total
(in thousands)
Balance as of December 31, 2006
$
—
$
—
$
—
$
—
$
—
Accruals
30,303
12,216
20,621
1,131
64,271
Payments
(18,262
)
(480
)
—
(
760
)
(19,502
)
Non
-
cash charges
—
4,388
(20,621
)
(371
)
(16,604
)
Balance as of December 31, 2007
12,041
16,124
—
—
28,165
Accruals
461
4,808
4,125
—
9,394
Payments
(12,502
)
(6,174
)
—
—
(
18,676
)
Non
-
cash charges
—
1,936
(4,125
)
—
(
2,189
)
Balance as of December 31, 2008
—
16,694
—
—
16,694
Accruals
—
5,697
46
—
5,743
Payments
—
(
5,442
)
—
—
(
5,442
)
Non
-
cash charges
—
489
(46
)
—
443
Balance as of December 31, 2009
$
—
$
17,438
$
—
$
—
$
17,438
Year Ended December 31,
2007 2008 2009
(in thousands)
Net income (loss)
$
(145,097
)
$
178,584
$
287,118
Non
-
cash items
265,252
112,307
(58,711
)
Changes in working capital
(31,366
)
(60,279
)
(19,785
)
Net cash provided by operating activities
$
88,789
$
230,612
$
208,622
Net cash provided by (used in) investing activities
$
13,936
$
107,124
$
(37,121
)
Net cash used in financing activities
$
(87,267
)
$
(24,999
)
$
(47,070
)