Earthlink 2013 Annual Report Download - page 105

Table of Contents EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
A reconciliation of changes in the amount of unrecognized tax benefits for the years ended December 31, 2011, 2012 and 2013 is as
follows:
During the year ended December 31, 2012 , $0.4 million
of uncertain tax positions resulting from the acquisition of One
Communications were recorded through acquisition accounting.
As of December 31, 2013, it is reasonably possible that approximately $5.5 million
of the total uncertain tax positions recorded will
reverse within the next twelve months, primarily due to the expiration of statutes of limitation in various jurisdictions. Of the total uncertain tax
positions recorded on the balance sheet, $5.7 million would impact the effective tax rate once settled.
16. Commitments and Contingencies
Leases
The Company leases certain of its facilities under various non-
cancelable operating leases. The facility leases generally require the
Company to pay operating costs, including property taxes, insurance and maintenance, and generally contain annual escalation provisions as well
as renewal options. Total rent expense (including operating expenses) during the years ended December 31, 2011, 2012 and 2013
for all
operating leases, excluding rent and operating expenses associated with facilities exited as part of the Company's restructuring plans, was
$13.7
million , $14.2 million and $14.0 million , respectively.
Minimum lease commitments (including estimated operating expenses) under non-
cancelable leases, including commitments associated
with facilities exited as part of the Company's restructuring plans, as of December 31, 2013 are as follows:
Purchase commitments
The Company has entered into agreements with vendors to purchase certain telecommunications services and equipment under non-
cancelable agreements. The Company also has minimum commitments under network access agreements with several carriers and obligations
for certain advertising spending under non-
cancelable agreements. In addition, the Company has certain commitments regarding employee
agreements. The following table summarizes commitments under these agreements as of December 31, 2013 :
Year Ended December 31,
2011 2012 2013
(in thousands)
Balance as of January 1
$
18,367
$
24,560
$
23,400
Additions for tax positions of prior years
192
19
63
Adjustments to tax positions under purchase accounting
7,812
399
—
Decreases for tax positions related to prior years
(1,811
)
(1,578
)
(1,835
)
Balance as of December 31
$
24,560
$
23,400
$
21,628
Year Ending December 31, (in thousands)
2014
$
40,436
2015
27,985
2016
23,949
2017
22,458
2018
24,648
Thereafter
42,241
Total minimum lease payments, including estimated operating expenses
181,717
Less aggregate contracted sublease income
(6,310
)
$
175,407
Year Ending December 31, (in thousands)
2014
$
50,603
2015
28,803
2016
14,358