Earthlink 2011 Annual Report Download - page 104

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Table of Contents
EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables summarize gross unrealized gains and losses as of December 31, 2010 and 2011 on the Company's marketable
securities designated as available-for-sale:
Investments in marketable securities primarily consist of government and agency notes, which included U.S. treasury securities and
government-
sponsored debt securities, corporate debt securities, commercial paper and certificates of deposit, all of which bear a minimum
short-term rating of A1/P1 or a minimum long-
term rating of A/A2. During year ended December 31, 2011, the Company sold certain
investments in marketable securities and recognized a realized gain of $0.4 million, which was included in interest expense and other, net, in the
Condensed Consolidated Statement of Operations.
Equity Investments in Other Companies
During the year ended December 31, 2009, EarthLink sold 2.2 million of Sprint Nextel shares for net proceeds of $8.2 million and
recognized a $7.6 million gain resulting from the receipt of Sprint Nextel shares and the subsequent sale, which is included in interest expense
and other, 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. During the year ended December 31, 2010, the Company
sold its remaining equity investments in other companies. As a result, equity investments in other companies were reduced to zero as of
December 31, 2010.
97
As of December 31, 2010
Amortized
Cost
Gross
Unrealized
Losses
Gross
Unrealized
Gains
Estimated
Fair
Value
(in thousands)
Government and agency notes
284,087
(1
)
355
284,441
Corporate debt securities
20,980
(7
)
38
21,011
Commercial paper
14,658
—
8
14,666
319,725
(8
)
401
320,118
As of December 31, 2011
Amortized
Cost
Gross
Unrealized
Losses
Gross
Unrealized
Gains
Estimated
Fair
Value
(in thousands)
Government and agency notes
$
11,306
(2
)
$
—
$
11,304
Corporate debt securities
11,069
(12
)
—
11,057
Commercial paper
4,246
—
—
4,246
Certificates of deposit
3,000
—
—
3,000
$
29,621
(14
)
$
—
$
29,607