Earthlink 2011 Annual Report Download - page 105

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Table of Contents
EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
6. Property and Equipment
Property and equipment consisted of the following as of December 31, 2010 and 2011:
Depreciation expense, which includes depreciation expense associated with property under capital leases, was $16.2 million, $17.6 million
and $100.9 million for the years ended December 31, 2009, 2010 and 2011, respectively.
During the year ended December 31, 2011, the Company wrote-
down and retired abandoned and disposed property and equipment that had
a cost basis of $48.0 million and accumulated depreciation of $42.0 million.
7. Goodwill and Other Intangible Assets
Goodwill
The changes in the carrying amount of goodwill by operating segment during the year ended December 31, 2011 were as follows:
Goodwill acquired during the period resulted from EarthLink's acquisitions of One Communications, STS Telecom and certain other
companies, which are more fully described in Note 3, "Acquisitions." Goodwill adjustments during the period resulted from adjustments in the
fair value of assets and liabilities
98
As of December 31,
2010
2011
(in thousands)
Communciations and fiber optic networks
232,723
354,997
Computer equipment and software
88,377
172,178
Office and other equipment
10,742
18,041
Land and buildings
42,807
42,869
Leasehold improvements
53,784
34,847
Work in progress
7,258
30,179
435,691
653,111
Less accumulated depreciation
(194,580
)
(263,562
)
241,111
389,549
Consumer
Services
Segment
Business
Services
Segment Total
(in thousands)
Goodwill
88,920
258,004
346,924
Accumulated impairment loss
—
(
87,878
)
(87,878
)
Balance as of December 31, 2010
88,920
170,126
259,046
Goodwill acquired during year
115,953
115,953
Goodwill adjustments
—
3,236
3,236
Goodwill
88,920
377,193
466,113
Accumulated impairment loss
—
(
87,878
)
(87,878
)
Balance as of December 31, 2011
88,920
289,315
378,235