Earthlink 2010 Annual Report Download - page 131

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Table of Contents
EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
discounted cash flow analysis. These analyses considered, among other items, the collateralization underlying the security investments, the
creditworthiness of the counterparty, and the timing and value of expected future cash flows. These securities were also compared, when
possible, to other observable market data with similar characteristics to the securities held by the Company.
The following table presents a reconciliation of the beginning and ending balances of the Company's assets measured at fair value on a
recurring basis using significant unobservable inputs (Level 3) as of December 31, 2010:
The Company's realized gains and losses for its auction rate securities and put right are included in gain on investments, net, in the
Consolidated Statement of Operations.
17. Supplemental Disclosure of Cash Flow Information
18. Segment Information
The Company reports segment information along the same lines that its chief executive officer reviews its operating results in assessing
performance and allocating resources. The Company operates two reportable segments, Consumer Services and Business Services. The
Company's Consumer Services segment provides nationwide Internet access and related value-
added services to individual customers. These
services include dial-up and high-speed Internet access services, ancillary services sold as add-
on features to the Company's Internet access
services, search and advertising. The Company's Business Services segment provides integrated communications services and related value-
added services to businesses, enterprise organizations and communications carriers. These services include data services, which include managed
IP-based network services and Internet access; voice services, which include local exchange, long-
distance and conference calling; mobile data
and voice services; and web hosting. ITC^DeltaCom is included in our Business Services segment.
124
Auction
Rate
Securities
Put
Right
Total
(in thousands)
Balance as of December 31, 2009
$
42,906
$
5,239
$
48,145
Total realized gains
(91
)
(5,332
)
(5,423
)
Total realized losses
5,335
93
5,428
Settlements
(48,150
)
—
(
48,150
)
Balance as of December 31, 2010
$
—
$
—
$
—
Year Ended December 31,
2008 2009 2010
(in thousands)
Additional cash flow information
Cash paid during the year for interest
$
10,355
$
10,422
$
10,825
Cash paid during the year for income taxes
4,109
4,261
4,750
Noncash investing activity
Fair value of restricted stock units assumed in
connection with acquisition
$
—
$
—
$
2,275