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Table of Contents EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Acquisition and Integration
-Related Costs
Acquisition and integration-related costs consist of costs related to EarthLink’
s acquisitions. Such costs include: 1) severance and
retention costs; 2) transaction-
related costs, which are direct costs incurred to effect a business combination, such as advisory, legal, accounting,
valuation and other professional fees; 3) costs to settle postcombination stock awards; 4) integration-
related costs, such as system conversion,
rebranding costs and integration-related consulting and employee costs; and 5) facility-
related costs, such as lease termination and asset
impairments. Acquisition and integration-
related costs are expensed in the period in which the costs are incurred and the services are received
and are included in restructuring, acquisition and integration-related costs in the Consolidated Statements of Comprehensive Income
.
Acquisition and integration-related costs consisted of the following during the years ended December 31, 2010, 2011 and 2012 :
6. Investments
Marketable Securities
The Company’s marketable securities consisted of the following as of December 31, 2011 and 2012 :
As of December 31, 2012 , all of the Company's long-term marketable securities were due within one to two years.
The following tables summarize gross unrealized gains and losses as of December 31, 2011 and 2012 on the Company’s marketable
securities designated as available-for-sale:
79
Year Ended December 31,,
2010
2011
2012
(in thousands)
Severance and retention costs
$
5,047
16,460
6,067
Transaction-related costs
10,164
5,756
1,399
Costs to settle postcombination stock awards
5,742
—
—
Integration-related costs
—
4,044
10,452
Facility-related costs
—
5,530
479
Total acquisition and integration-related costs
$
20,953
31,790
18,397
As of December 31, 2011
As of December 31, 2012
(in thousands)
Corporate debt securities
11,057
30,181
Government and agency securities
11,304
5,314
Commercial paper
4,246
9,293
Certificates of deposit
3,000
1,552
Municipal bonds —
511
Total marketable securities
29,607
46,851
Less: classified as current
(28,606
)
(42,073
)
Total long-term marketable securities
1,001
4,778
As of December 31, 2011
Amortized
Cost
Gross
Unrealized
Losses
Gross
Unrealized
Gains
Estimated
Fair
Value
(in thousands)
Corporate debt securities
$
11,069
$
(12
)
$
—
11,057
Government and agency notes
11,306
(2
)
—
11,304
Commercial paper
4,246
—
—
4,246
Certificates of deposit
3,000
—
—
3,000
$
29,621
$
(14
)
$
—
29,607