Earthlink 2011 Annual Report Download - page 48

Table of Contents
42
As of December 31,
2007
2008
2009
2010
2011
(in thousands)
Balance sheet data:
Cash and cash
equivalents
$
173,827
$
486,564
$
610,995
$
242,952
$
211,783
Investments in
marketable securities
114,768
47,809
84,966
320,118
29,607
Cash and marketable
securities
288,595
534,373
695,961
563,070
241,390
Total assets
729,970
845,866
1,074,618
1,523,918
1,680,451
Long
-
term debt,
including long-term
portion of capital
leases (6)
208,472
219,733
232,248
594,320
653,765
Total liabilities
415,452
359,391
340,594
766,050
927,307
Accumulated deficit
(1,191,390
)
(1,016,833
)
(729,715
)
(648,235
)
(613,668
)
Stockholders' equity
314,518
486,475
734,024
757,868
753,144
(1)
On December 8, 2010, we acquired ITC^DeltaCom, a provider of integrated communications services to customers in the
southeastern U.S. On April 1, 2011, we acquired One Communications, a privately-
held integrated telecommunications
solutions provider serving customers in the Northeast, Mid-
Atlantic and Upper Midwest The results of operations of
ITC^DeltaCom and One Communications have been included in our consolidated financial statements since the
acquisition date. The comparison of selected financial data is affected by these acquisitions and, to a lesser extent, by other
smaller acquisitions completed during the year ended December 31, 2011.
(2) Operating costs and expenses for the years ended December 31, 2008, 2009 and 2010 include non-
cash impairment
charges of $78.7 million, $24.1 million and $1.7 million, respectively, related to goodwill and certain intangible assets of
New Edge in our Business Services segment. During 2008 and 2009, we concluded the carrying value of these assets were
impaired in conjunction with our annual tests of goodwill and intangible assets deemed to have indefinite lives. During
2010, we decided to re-brand the New Edge name as EarthLink Business and wrote off our New Edge trade name.
(3)
Operating costs and expenses for the years ended December 31, 2007, 2008, 2009, 2010 and 2011 include restructuring
and acquisition-related costs of $65.4 million, $9.1 million, $5.6 million, $22.4 million and $32.1 million, respectively.
(4)
During the years ended December 31, 2008 and 2009, we recorded income tax benefits in the Statement of Operations of
approximately $56.1 million and $198.8 million, respectively, from releases of our valuation allowance related to deferred
tax assets. These deferred tax assets related primarily to net operating loss carryforwards which we determined we will
more-likely-than-not be able to utilize due to the generation of sufficient taxable income in the future.
(5)
In November 2007, management concluded that the municipal wireless broadband operations were no longer consistent
with our strategic direction and our Board of Directors authorized management to pursue the divestiture of our municipal
wireless broadband assets. As a result of that decision, we classified the municipal wireless broadband assets as held for
sale and presented the municipal wireless broadband operations as discontinued operations for all periods presented.
(6) Includes the carrying amount of ITC^DeltaCom's 10.5% senior secured notes due on April 1, 2016, EarthLink's 8
7
/ 8
%
Senior Notes due 2019, and EarthLink's convertible senior notes due November 15, 2026. In December 2010, we assumed
the ITC^DeltaCom Notes in our acquisition of ITC^DeltaCom. In May 2011, we issued $300.0 million aggregate principal
amount of 8
7
/
8
% Senior Notes due 2019. In November 2011, we redeemed our convertible senior notes.