Earthlink 2014 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2014 Earthlink annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

Table of Contents EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Information on reportable segments and a reconciliation to consolidated income from operations for the years ended
December 31, 2012, 2013
and 2014 is as follows:
The Company manages its working capital on a consolidated basis and does not allocate long-
lived assets to segments. In addition, segment
assets are not reported to, or used by, the chief operating decision maker and therefore, total segment assets have not been disclosed.
The Company has not provided information about geographic segments because substantially all of the Company’
s revenues, results of
operations and identifiable assets are in the United States.
88
Year Ended December 31,
2012
2013
2014
(in thousands)
Business Services
Revenues
$
1,017,425
$
964,227
930,931
Cost of revenues (excluding depreciation and amortization)
527,514
506,245
469,523
Gross margin
489,911
457,982
461,408
Direct segment operating expenses
332,542
342,630
345,982
Segment operating income
$
157,369
$
115,352
115,426
Consumer Services
Revenues
$
317,710
$
276,379
245,964
Cost of revenues (excluding depreciation and amortization)
105,102
94,497
87,913
Gross margin
212,608
181,882
158,051
Direct segment operating expenses
67,526
50,623
43,615
Segment operating income
$
145,082
$
131,259
114,436
Consolidated
Revenues
$
1,335,135
$
1,240,606
1,176,895
Cost of revenues
632,616
600,742
557,436
Gross margin
702,519
639,864
619,459
Direct segment operating expenses
400,068
393,253
389,597
Segment operating income
302,451
246,611
229,862
Depreciation and amortization
183,165
183,114
186,872
Impairment of goodwill and long-lived assets
—
255,599
14,334
Restructuring, acquisition and integration-related costs
18,244
40,030
20,088
Corporate operating expenses
29,019
32,817
29,422
Income (loss) from operations
$
72,023
$
(264,949
)
(20,854
)