Earthlink 2013 Annual Report Download - page 98

Table of Contents EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
that are minor (the “Guarantor Subsidiaries”). All of the Guarantor Subsidiaries are 100%
owned by the Company and have, jointly and
severally, fully and unconditionally guaranteed, to each holder of the Notes, the full and prompt performance of the Company’
s obligations
under the Notes and the indenture governing the Notes, including the payment of principal (or premium, if any) and interest on the Notes, on an
equal and ratable basis. Further, following the Holding Company Reorganization, the Company has no independent assets or operations, and
there are no significant restrictions on the ability of its consolidated subsidiaries to transfer funds to the Company in the form of cash dividends,
loans or advances. The Company’
s assets consist solely of investments it has made in its consolidated subsidiaries, and its operations consist
solely of changes in its investment in subsidiaries and interest associated with the Senior Notes and Senior Secured Notes. Based on these facts,
and in accordance with Securities and Exchange Commission Regulation S-X Rule 3-10, “
Financial statements of guarantors and issuers of
guaranteed securities registered or being registered,”
the Company is not required to provide condensed consolidating financial information for
the subsidiary guarantors.
Capital Lease Obligations
The Company maintains capital leases relating to equipment and indefeasible right-to-
use fiber agreements. Depreciation expense
related to assets under capital leases is included in depreciation and amortization expense in the Consolidated Statements of Comprehensive
Income (Loss). Minimum lease payments under capital leases as of December 31, 2013 are as follows:
12. Stockholders’ Equity
Share Repurchases
Since the inception of the Company’s share repurchase program, the Board of Directors has authorized a total of $750.0 million
for the
repurchase of EarthLink’s common stock. As of December 31, 2013 , the Company had $67.9 million
available under the current authorizations.
The Company may repurchase its common stock from time to time in compliance with the Securities and Exchange Commission’
s regulations
and other legal requirements, including through the use of derivative transactions, and subject to market conditions and other factors. The share
repurchase program does not require the Company to acquire any specific number of shares and may be terminated by the Board of Directors at
any time.
The following table presents repurchases under the Company's share repurchase program for the years ended
December 31, 2011, 2012
and 2013 :
The Company also repurchased 0.1 million shares for $0.5 million
from a former Board of Director member in a private transaction
pursuant to a stock purchase agreement following his resignation from the Board of Directors in November 2013.
86
Year Ending December 31, (in thousands)
2014
$
3,305
2015
3,250
2016
4,509
2017
3,090
2018
3,056
Thereafter
8,679
Total minimum lease payments
25,889
Less amounts representing interest
(10,196
)
Total capital lease obligations
$
15,693
Year Ended December 31,
2011 2012 2013
(in thousands)
Total shares repurchased
6,333
3,749
1,116
Total value of shares repurchased
$
46,989
$
25,415
$
5,604