Earthlink 2014 Annual Report Download - page 44

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Table of Contents
The increase in restructuring, acquisition and integration-
related costs during the year ended December 31, 2013 compared to the prior year was
primarily due to the following:
The decrease in restructuring, acquisition and integration-
related costs during the year ended December 31, 2014 compared to the prior year was
primarily due to the following:
Interest expense and other, net
The following table presents our interest expense and other, net, for the years ended December 31, 2012, 2013 and 2014 :
Interest expense and other, net, is primarily comprised of interest expense incurred on our debt and capital leases, amortization of debt issuance
costs, debt premiums, and debt discounts; interest earned on our cash, cash equivalents and marketable securities; and other miscellaneous
income and expense items.
The decrease in interest expense and other, net, during the year ended December 31, 2013 compared to the prior year was primarily due to lower
interest expense resulting from the issuance of $300.0 million aggregate principal amount of 7.375% Senior Secured Notes and repayment of our
remaining 10.5% ITC^DeltaCom Notes (the "ITC^DeltaCom Notes") in May 2013. Partially offsetting the decrease in interest expense was a
$2.0 million loss on repayment of debt recorded in connection with the redemption of our ITC^DeltaCom Notes and a $2.0 million decrease in
interest income due to lower cash and marketable securities.
The decrease in interest expense and other, net, during the year ended December 31, 2014 compared to the prior year was primarily due to lower
interest expense resulting from the issuance of 7.375% senior secured notes and repayment of our remaining ITC^DeltaCom Notes in May 2013
and the $2.0 million loss on repayment of debt recorded during the year ended December 31, 2013 in connection with the redemption of our
ITC^DeltaCom Notes.
39
•
an increase in costs to integrate operating support systems, networks and certain billing systems as we worked to complete several
significant integration projects during the year;
•
costs related to our acquisition of CenterBeam in July 2013;
•
employee termination costs associated with certain voluntary employee separations;
•
costs to exit duplicate facilities; and
•
restructuring costs related to a reduction in our sales workforce, some sales offices closing and a reduction in force due to the exit of
telecom systems sales.
•
the completion of several acquisition and integration projects during the year;
•
partially offset by $7.3 million of restructuring costs recorded during the year ended December 31, 2014 for severance and other
employee costs in connection with a reduction in workforce that is eliminating approximately 450 positions driven by changes our
business strategy. Such costs were included in restructuring, acquisition and integration-
related costs in the Consolidated Statement of
Comprehensive Loss.
Year Ended December 31,
2013 vs 2012
2014 vs 2013
2012
2013
2014
$ Change
% Change
$ Change
% Change
(dollars in thousands)
Interest expense
$
64,331
$
60,495
$
56,382
(3,836
)
(6)%
$
(4,113
)
(7
)%
Interest income
(2,076
)
(84
)
(125
)
1,992
(96)%
(41
)
49
%
Other, net
1,161
275
4
(886
)
(76)%
(271
)
(99
)%
Total interest expense and other, net
$
63,416
$
60,686
$
56,261
(2,730
)
(4)%
$
(4,425
)
(7
)%