Earthlink 2013 Annual Report Download - page 56

Table of Contents
Contractual Obligations and Commitments
The following table sets forth our contractual obligations and commercial commitments as of December 31, 2013 :
__________________________________________
Debt Covenants
Under the indentures governing our debt agreements, acceleration on principal payments would occur upon payment default or
violation of debt covenants. We were in compliance with all covenants under our debt agreements as of December 31, 2013 .
Off-Balance Sheet Arrangements
As of December 31, 2013 , we did not have any off-
balance sheet arrangements that have or are reasonably likely to have a current or
future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures
or capital resources that are material to investors.
Share Repurchase Program
The Board of Directors has authorized a total of $750.0 million
to repurchase our common stock under our share repurchase program.
As of December 31, 2013 , we had utilized approximately $682.1 million pursuant to the authorizations and had $67.9 million
available under
the current authorization. We may repurchase our common stock from time to time in compliance with the Securities and Exchange
Commission’
s regulations and other legal requirements, and subject to market conditions and other factors. The share repurchase program does
not require us to acquire any specific number of shares and may be terminated by the Board of Directors at any time.
51
Payment Due by Period
Total 2014
2015-
2016
2017-
2018
After 5 Years
(in thousands)
Long-term debt (1)
$
600,000
$
—
$
—
$
—
$
600,000
Interest payments on long-term debt (2)
285,078
48,750
97,500
97,500
41,328
Purchase commitments (3)
106,960
50,603
43,161
6,127
7,069
Operating leases (4)
181,717
40,436
51,934
47,106
42,241
Capital leases (5)
25,889
3,305
7,759
6,146
8,679
Total (6)
$
1,199,644
$
143,094
$
200,354
$
156,879
$
699,317
(1) Long-term debt includes principal payments on outstanding debt obligations. Long-term debt excludes unamortized discounts and
premiums. As of December 31, 2013 , we had $600.0 million aggregate principal amount of debt outstanding, consisting of $300.0
million of 8.875% Senior Notes due May 15, 2019 and $300.0 million of 7.375% Senior Secured Notes due June 1, 2020.
(2) Interest payments on long-term debt includes interest due on outstanding debt through maturity and commitment fees and borrowing
costs under our senior secured revolving credit facility.
(3) Purchase commitments represent non-cancellable contractual obligations for services and equipment; minimum commitments under
network access agreements with several carriers; and certain commitments regarding employee agreements.
(4) These amounts represent base rent payments under non-cancellable operating leases for facilities and equipment that expire in various
years through
2018 , as well as an allocation for operating expenses. Not included in these amounts is expected sublease income of
$2.1
million , $1.1 million , $1.1 million , $1.1 million and $0.9 million during the years ended December 31, 2014, 2015, 2016, 2017 and
2018, respectively.
(5)
Represents remaining payments under capital leases, including interest.
(6) The table does not include our reserve for uncertain tax positions, which as of December 31, 2013 total $21.6 million , as the specific
timing of any cash payments relating to this obligation cannot be projected with reasonable certainty.