Earthlink 2010 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2010 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.

Page out of 152

  • 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

Table of Contents
EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
the receipt of Sprint Nextel shares and the subsequent sale, which is included in gain (loss) on investments, net, in the Consolidated Statement of
Operations. During the year ended December 31, 2010, EarthLink sold 0.2 million of the Sprint Nextel shares for net proceeds of $1.0 million
and recognized a gain of $0.1 million.
7. Property and Equipment
Property and equipment consisted of the following as of December 31, 2009 and 2010:
Depreciation expense charged to continuing operations, which includes depreciation expense associated with property under capital leases,
was $23.0 million, $16.2 million and $17.6 million for the years ended December 31, 2008, 2009 and 2010, respectively.
During the year ended December 31, 2010, the Company wrote-
down and retired abandoned and disposed property and equipment that had
a cost basis of $113.2 million and accumulated depreciation of $113.1 million.
8. Goodwill and Purchased Intangible Assets
Goodwill
The changes in the carrying amount of goodwill by operating segment during the year ended December 31, 2010 were as follows:
106
As of December 31,
2009
2010
(in thousands)
Communciations and fiber optic networks
$
125,166
$
244,135
Office and other equipment
139,793
87,707
Land and buildings
17,243
42,807
Leasehold improvements
42,254
53,784
Construction in progress
1,051
7,258
325,507
435,691
Less accumulated depreciation
(291,240
)
(194,580
)
$
34,267
$
241,111
Consumer
Services
Segment
Business
Services
Segment
Total
(in thousands)
Balance as of December 31, 2009
Goodwill
$
88,920
$
87,878
$
176,798
Accumulated impairment loss
—
(
87,878
)
(87,878
)
88,920
—
88,920
Goodwill acquired during year
—
188,890
188,890
Balance as of December 31, 2010
Goodwill
88,920
276,768
365,688
Accumulated impairment loss
—
(
87,878
)
(87,878
)
$
88,920
$
188,890
$
277,810