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Table of Contents
Legacy Restructuring Plans.
During the years ended December 31, 2003, 2004 and 2005, we executed a series of plans to restructure and
streamline our contact center operations and outsource certain internal functions (collectively referred to as "Legacy Plans"). The Legacy Plans
included facility exit costs, personnel-
related costs and asset disposals. We periodically evaluate and adjust our estimates for facility exit and
restructuring costs based on currently-
available information. During the years ended December 31, 2008 and 2009, we recorded reductions of
$0.3 million and $0.1 million, respectively, to facility exit and restructuring costs and during the year ended December 31, 2010, we recorded an
additional $0.3 million of facility exit and restructuring costs as a result of changes in estimates for Legacy Plans.
Acquisition-Related Costs. Acquisition-
related costs consist of external costs directly related to our acquisitions, such as advisory, legal,
accounting, valuation and other professional fees. Acquisition-
related costs also include employee severance and benefit costs and costs to settle
stock-based awards attributable to postcombination service in connection with the ITC^DeltaCom acquisition. Acquisition-
related costs
consisted of the following during the year ended December 31, 2010:
Gain (loss) on investments, net
Gain (loss) on investments, net, consisted of the following during the years ended December 31, 2008, 2009 and 2010:
We had an investment in Covad consisting of 6.1 million shares of Covad common stock. During the year ended December 31, 2008,
Platinum Equity, LLC acquired all outstanding shares of Covad. As a result, we received cash of $6.3 million for our 6.1 million shares of Covad
common stock and recognized a gain of $2.0 million based on our cost basis of the Covad common stock.
During the year ended December 31, 2008, we received limited partnership units equivalent to approximately 1.8 million shares of Virgin
Mobile common stock in exchange for our investment in HELIO. We recognized a gain of $4.4 million as a result of this transaction. During the
year ended December 31, 2009, Sprint Nextel and Virgin Mobile completed a merger and we received 2.4 million shares of Sprint Nextel
common stock for our Virgin Mobile common stock. During the year ended
62
Year Ended
December 31,
2010
(in thousands)
Transaction related costs
$
10,164
Costs to settle postcombination stock
-
awards
5,742
Severance and retention costs
5,047
Total acquisition
-
related costs
$
20,953
Year Ended December 31,
2008
2009
2010
(in thousands)
Other
-
than
-
temporary impairment losses
$
(3,556
)
$
(9,300
)
$
—
Cash distributions from investments
—
231
—
Gain from sale of Covad common stock
2,025
—
—
Gain from receipt of Virgin Mobile shares
4,352
—
—
Gain from receipt and sale of Sprint Nextel shares
—
7,641
100
Net change in fair value of auction rate securities
and put right
(113
)
107
5
Gains from sales of other investments
—
—
467
$
2,708
$
(1,321
)
$
572