Earthlink 2009 Annual Report Download - page 86
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Table of Contents
EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
of that decision, the Company classified the municipal wireless broadband assets as held for sale on the Consolidated Balance Sheets and
presented the municipal wireless broadband results of operations as discontinued operations for all periods presented. The results of operations
for municipal wireless broadband were previously included in the Consumer Services segment.
During the year ended December 31, 2008, the Company transferred its municipal wireless broadband networks to Corpus Christi, TX and
Milpitas, CA in exchange for releasing the Company from its existing network agreements. The Company also transferred its municipal wireless
broadband networks in the city of Philadelphia, PA to a local Philadelphia company. Additionally, the Company terminated its municipal
wireless broadband service in New Orleans, LA and Anaheim, CA and removed its network equipment from those cities. As of December 31,
2008, the Company had completed the divestiture of its municipal wireless broadband assets.
The following table presents summarized results of operations related to the Company's discontinued operations for the years ended
December 31, 2007 and 2008:
The Company recorded a $27.6 million charge during the year ended December 31, 2007 to reduce the carrying value of the long-
lived
assets to their fair value less estimated costs to sell. The Company also recorded restructuring costs in connection with the 2007 Plan of
$20.9 million during the year ended December 31, 2007 related to the municipal wireless broadband operations, including $5.0 million for
severance and personnel-related costs; $6.9 million for non-
cash asset impairments; and $9.0 million for other associated costs. During the year
ended December 31, 2008, the Company recorded restructuring costs in connection with the 2007 Plan of $6.3 million related to the municipal
wireless broadband operations. These charges are reflected within loss from discontinued operations, net of tax, in the Consolidated Statements
of Operations. All costs have been paid or otherwise settled.
5. Investments
Marketable Securities
The Company's marketable securities consisted of the following as of December 31, 2008 and 2009:
82
Year Ended December 31,
2007
2008
(in thousands)
Revenues
$
2,097
$
1,305
Operating costs and expenses
(33,871
)
(4,569
)
Impairment, facility exit and restructuring costs
(48,528
)
(6,326
)
Income tax benefit
—
1,084
Loss from discontinued operations, net of tax
$
(80,302
)
$
(8,506
)
As of December 31,
2008
2009
(in thousands)
Auction rate securities
$
47,809
$
42,906
Government agency notes
—
42,060
Total marketable securities
$
47,809
$
84,966