Earthlink 2010 Annual Report Download - page 110

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Table of Contents
EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents summarized results of operations related to the Company's discontinued operations for the year ended
December 31, 2008:
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.
6. Investments
Marketable Securities
The Company's marketable securities consisted of the following as of December 31, 2009 and 2010:
The Company's auction rate securities were variable-
rate debt instruments whose underlying agreements had contractual maturities of up to
40 years, but had interest rate reset periods at pre-
determined intervals, usually every 28 days. These securities were predominantly secured by
student loans guaranteed by state related higher education agencies and reinsured by the U.S. Department of Education. Beginning in February
2008, auctions for these securities failed to attract sufficient buyers, resulting in the Company continuing to hold such securities. In October
2008, EarthLink entered into an agreement with the broker that sold the Company its auction rate securities that gave the Company the right to
sell its existing auction rate securities back to the broker at par plus accrued interest, beginning on June 30, 2010 until July 2, 2012. As a result of
the put right, these securities were classified as short-term marketable securities in the Consolidated Balance Sheet as of December 31, 2009.
103
Year Ended
December 31,
2008
(in thousands)
Revenues
$
1,305
Operating costs and expenses
(4,569
)
Impairment, facility exit and restructuring costs
(6,326
)
Income tax benefit
1,084
Loss from discontinued operations, net of tax
$
(8,506
)
As of December 31,
2009
2010
(in thousands)
Auction rate securities
$
42,906
$
—
Government and agency securities
42,060
284,441
Commercial paper
—
14,666
Corporate debt securities
—
21,011
Total marketable securities
84,966
320,118
Less: classified as current
(84,966
)
(307,814
)
Total long
-
term marketable securities
$
—
$
12,304