Earthlink 2015 Annual Report Download - page 34

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Table of Contents
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(1) On April 1, 2011, we acquired One Communications Corp, a privately-held integrated telecommunications solutions provider serving customers in the
northeast, mid-Atlantic and upper midwest sections of the United States. The results of operations of One Communications have been included in our
consolidated financial statements since the acquisition date. The comparison of selected financial data is affected by this acquisition and, to a lesser extent,
by other smaller acquisitions completed during the year ended December 31, 2011, including STS Telecom, Inc., Logical Solutions and Business Vitals,
LLC, among others, and our CenterBeam, Inc. transaction completed during the year ended December 31, 2013.
(2) Operating costs and expenses for the year ended December 31, 2013 includes a non-cash impairment charge of $255.6 million related to goodwill. During
2013, we performed an interim goodwill impairment test following a sustained decrease in our stock price and market capitalization which resulted in an
impairment charge in our legacy Business Services reporting unit. Operating costs and expenses for the year ended December 31, 2014 includes non-cash
impairment charge of $14.3 million related to long-lived assets for certain work in progress and software licenses not expected to be used.
(3) Operating costs and expenses for the years ended December 31, 2011, 2012, 2013, 2014 and 2015 include restructuring, acquisition and integration-
related costs of $32.1 million, $18.2 million, $40.0 million , $20.1 million and $19.3 million , respectively.
(4) During the year ended December 31, 2013, we recorded an income tax provision of approximately $266.3 million to record a valuation allowance for
deferred tax assets. These deferred tax assets related primarily to net operating loss carryforwards which we determined we "more-likely-than-not" would
be unable to utilize.
(5) The operating results of our telecom systems business acquired as part of ITC^DeltaCom, Inc. have been separately presented as discontinued operations
for all periods presented. On August 2, 2013, we sold our telecom systems business.
(6) Includes the carrying amount of ITC^DeltaCom's 10.5% senior secured notes due 2016, our 8.875% Senior Notes due 2019, our 7.375% Senior Secured
Notes due 2020 and amounts outstanding under our senior secured revolving credit facility. In 2012, we redeemed $32.5 million aggregate principal
amount of the ITC^DeltaCom Notes. In 2013, we redeemed the remaining $292.3 million aggregate principal amount of the ITC^DeltaCom Notes and
issued $300.0 million aggregate principal amount of 7.375% Senior Secured Notes due 2020. In 2015, we redeemed or repurchased $126.1 million
aggregate principal amount of 8.875% Senior Notes due 2019 and drew down $35.0 million (net of repayments) under our senior secured revolving credit
facility.
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