Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 03, 2014 | Jun. 30, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Registrant Name | 'OUTERWALL INC | ' | ' |
Entity Central Index Key | '0000941604 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 25,402,526 | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1.60 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $371,437 | $282,894 | $341,855 | $183,416 |
Accounts receivable, net of allowances of $1,826 and $2,003 | 50,296 | 58,331 | ' | ' |
Content library | 199,868 | 177,409 | ' | ' |
Deferred income taxes | 11 | 7,187 | ' | ' |
Prepaid expenses and other current assets | 84,698 | 29,686 | ' | ' |
Total current assets | 706,310 | 555,507 | ' | ' |
Property and equipment, net | 520,865 | 586,124 | ' | ' |
Notes receivable | 0 | 26,731 | ' | ' |
Deferred income taxes | 6,443 | 1,373 | ' | ' |
Goodwill and other intangible assets | 638,690 | 344,063 | ' | ' |
Other long-term assets | 24,392 | 47,927 | ' | ' |
Total assets | 1,896,700 | 1,561,725 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 236,018 | 250,588 | ' | ' |
Accrued payable to retailers | 134,140 | 138,413 | ' | ' |
Other accrued liabilities | 134,127 | 146,125 | ' | ' |
Current callable convertible debt | 49,702 | 0 | ' | ' |
Current portion of long-term debt and other | 42,190 | 15,529 | ' | ' |
Current portion of capital lease obligations | 11,997 | 13,350 | ' | ' |
Deferred income taxes | 23,143 | 0 | ' | ' |
Total current liabilities | 631,317 | 564,005 | ' | ' |
Long-term debt and other long-term liabilities | 677,356 | 341,179 | ' | ' |
Capital lease obligations | 9,364 | 15,702 | ' | ' |
Deferred income taxes | 58,528 | 91,751 | ' | ' |
Total liabilities | 1,376,565 | 1,012,637 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Debt conversion feature | 1,446 | 0 | ' | ' |
Stockholders’ Equity: | ' | ' | ' | ' |
Preferred stock, $0.001 par value - 5,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | ' | ' |
Common stock, $0.001 par value - 60,000,000 authorized; 36,356,357 and 35,797,592 shares issued; 26,150,900 and 28,626,323 shares outstanding | 482,481 | 504,881 | ' | ' |
Treasury stock | -476,796 | -293,149 | ' | ' |
Retained earnings | 513,771 | 338,979 | ' | ' |
Accumulated other comprehensive loss | -767 | -1,623 | ' | ' |
Total stockholders’ equity | 518,689 | 549,088 | 513,902 | 426,009 |
Total liabilities and stockholders’ equity | $1,896,700 | $1,561,725 | ' | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances | $1,826 | $2,003 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 36,356,357 | 35,797,592 |
Common stock, shares outstanding | 26,150,900 | 28,626,323 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | |||
Revenue | $2,306,601 | $2,199,884 | $1,844,046 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 1,575,277 | [1] | 1,498,819 | [1] | 1,280,237 | [1] |
Marketing | 32,402 | 25,979 | 28,450 | |||
Research and development | 13,084 | 6,757 | 7,551 | |||
General and administrative | 221,776 | 204,519 | 157,422 | |||
Depreciation and other | 192,161 | 179,027 | 144,632 | |||
Amortization of intangible assets | 10,933 | 5,378 | 2,740 | |||
Total expenses | 2,045,633 | 1,920,479 | 1,621,032 | |||
Operating income | 260,968 | 279,405 | 223,014 | |||
Other income (expense), net: | ' | ' | ' | |||
Income (loss) from equity method investments, net | 19,928 | -5,184 | -1,591 | |||
Interest expense, net | -32,801 | -15,648 | -23,822 | |||
Other, net | -5,527 | -180 | 256 | |||
Total other income (expense), net | -18,400 | -21,012 | -25,157 | |||
Income from continuing operations before income taxes | 242,568 | 258,393 | 197,857 | |||
Income tax expense | -34,477 | -97,941 | -74,923 | |||
Income from continuing operations | 208,091 | 160,452 | 122,934 | |||
Loss from discontinued operations, net of tax | -33,299 | -10,222 | -19,051 | |||
Net income | 174,792 | 150,230 | 103,883 | |||
Other comprehensive income: | ' | ' | ' | |||
Foreign currency translation adjustment, before tax | 856 | [2] | 1,048 | [2] | -255 | [2],[3] |
Reclassification of interest rate hedges to interest expense | 0 | 0 | 896 | [4] | ||
Loss on short-term investments | 0 | 0 | -20 | |||
Income tax expense related to items of other comprehensive income | 0 | 0 | -342 | |||
Other comprehensive income, net of tax | 856 | [5] | 1,048 | [5] | 279 | [5] |
Comprehensive income | $175,648 | $151,278 | $104,162 | |||
Basic earnings (loss) per share: | ' | ' | ' | |||
Continuing operations (in dollars per share) | $7.65 | $5.30 | $4.02 | |||
Discontinued operations (in dollars per share) | ($1.23) | ($0.34) | ($0.62) | |||
Basic earnings per share (in dollars per share) | $6.42 | $4.96 | $3.40 | |||
Diluted earnings (loss) per share | ' | ' | ' | |||
Continuing operations (in dollars per share) | $7.33 | $4.99 | $3.86 | |||
Discontinued operations (in dollars per share) | ($1.17) | ($0.32) | ($0.60) | |||
Diluted earnings per share (in dollars per share) | $6.16 | $4.67 | $3.26 | |||
Weighted average shares used in basic per share calculations | 27,216 | 30,305 | 30,520 | |||
Weighted average shares used in diluted per share calculations | 28,381 | 32,174 | 31,869 | |||
[1] | “Direct operating†excludes depreciation and other of $130.3 million, $127.2 million and $120.4 million for 2013, 2012, and 2011 respectively. | |||||
[2] | Foreign currency translation adjustment had no tax effect in 2013, 2012, or 2011. | |||||
[3] | Foreign currency translation adjustment had no tax effect in 2011. | |||||
[4] | At December 31, 2010 we had an interest rate swap agreement with Wells Fargo Bank to hedge against the variable-rate interest payments on our revolving Credit Facility which expired on March 20, 2011. At December 31, 2010 the fair value of this agreement was a liability of $0.9 million which was reversed from comprehensive income and recognized as interest expense in our Consolidated Statements of Comprehensive Income in the first quarter of 2011. | |||||
[5] | Foreign currency translation adjustment has no tax effect for the years ended December 31, 2013, 2012, and 2011. |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Depreciation and other excluded from direct operating expenses | $130.30 | $127.20 | $120.40 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | |
In Thousands, except Share data, unless otherwise specified | ||||||
BALANCE at Dec. 31, 2010 | $426,009 | $434,169 | ($90,076) | $84,866 | ($2,950) | |
BALANCE (in shares) at Dec. 31, 2010 | ' | 31,815,085 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | |
Proceeds from exercise of stock options, net (in shares) | ' | 112,364 | ' | ' | ' | |
Proceeds from exercise of stock options, net | 3,261 | 3,261 | ' | ' | ' | |
Adjustments related to tax withholding for share-based compensation (in shares) | ' | -39,276 | ' | ' | ' | |
Adjustments related to tax withholding for share-based compensation | -1,794 | -1,794 | ' | ' | ' | |
Share-based payments expense (in shares) | ' | 365,641 | ' | ' | ' | |
Share-based payments expense | 16,211 | 16,211 | ' | ' | ' | |
Tax benefit on share-based compensation expense | 2,548 | 2,548 | ' | ' | ' | |
Repurchases of common stock (in shares) | -1,374,036 | -1,374,036 | ' | ' | ' | |
Repurchases of common stock | -63,349 | ' | -63,349 | ' | ' | |
Debt conversion feature | 26,854 | 26,854 | ' | ' | ' | |
Net income | 103,883 | ' | ' | 103,883 | ' | |
Other comprehensive income, net of tax | [1] | 279 | ' | ' | ' | 279 |
BALANCE at Dec. 31, 2011 | 513,902 | 481,249 | -153,425 | 188,749 | -2,671 | |
BALANCE (in shares) at Dec. 31, 2011 | ' | 30,879,778 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | |
Proceeds from exercise of stock options, net (in shares) | ' | 381,468 | ' | ' | ' | |
Proceeds from exercise of stock options, net | 8,263 | 8,263 | ' | ' | ' | |
Adjustments related to tax withholding for share-based compensation (in shares) | ' | -61,362 | ' | ' | ' | |
Adjustments related to tax withholding for share-based compensation | -3,671 | -3,671 | ' | ' | ' | |
Share-based payments expense (in shares) | ' | 225,445 | ' | ' | ' | |
Share-based payments expense | 19,362 | 19,362 | ' | ' | ' | |
Tax benefit on share-based compensation expense | 5,418 | 5,418 | ' | ' | ' | |
Repurchases of common stock (in shares) | -2,799,115 | -2,799,115 | ' | ' | ' | |
Repurchases of common stock | -139,724 | ' | -139,724 | ' | ' | |
Convertible debt—conversion option (in shares) | ' | 109 | ' | ' | ' | |
Convertible debt—conversion option | -5,740 | -5,740 | ' | ' | ' | |
Net income | 150,230 | ' | ' | 150,230 | ' | |
Other comprehensive income, net of tax | [1] | 1,048 | ' | ' | ' | 1,048 |
BALANCE at Dec. 31, 2012 | 549,088 | 504,881 | -293,149 | 338,979 | -1,623 | |
BALANCE (in shares) at Dec. 31, 2012 | 28,626,323 | 28,626,323 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | |
Proceeds from exercise of stock options, net (in shares) | 412,000 | 411,902 | ' | ' | ' | |
Proceeds from exercise of stock options, net | 12,655 | 12,655 | ' | ' | ' | |
Adjustments related to tax withholding for share-based compensation (in shares) | ' | -76,401 | ' | ' | ' | |
Adjustments related to tax withholding for share-based compensation | -4,195 | -4,195 | ' | ' | ' | |
Share-based payments expense (in shares) | ' | 223,173 | ' | ' | ' | |
Share-based payments expense | 16,831 | 16,831 | ' | ' | ' | |
Tax benefit on share-based compensation expense | 3,287 | 3,287 | ' | ' | ' | |
Repurchases of common stock (in shares) | -3,306,433 | -3,306,433 | ' | ' | ' | |
Repurchases of common stock | -195,004 | ' | -195,004 | ' | ' | |
Repurchase and conversion of callable convertible debt, net of tax (in shares) | ' | 272,336 | ' | ' | ' | |
Repurchase and conversion of callable convertible debt, net of tax | -38,175 | -49,532 | 11,357 | ' | ' | |
Debt conversion feature | -1,446 | -1,446 | ' | ' | ' | |
Net income | 174,792 | ' | ' | 174,792 | ' | |
Other comprehensive income, net of tax | [1] | 856 | ' | ' | ' | 856 |
BALANCE at Dec. 31, 2013 | $518,689 | $482,481 | ($476,796) | $513,771 | ($767) | |
BALANCE (in shares) at Dec. 31, 2013 | 26,150,900 | 26,150,900 | ' | ' | ' | |
[1] | Foreign currency translation adjustment has no tax effect for the years ended December 31, 2013, 2012, and 2011. |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
concept | ||||||
Operating Activities: | ' | ' | ' | |||
Net income | $174,792 | $150,230 | $103,883 | |||
Adjustments to reconcile net income to net cash flows: | ' | ' | ' | |||
Depreciation and other | 193,700 | 179,147 | 145,478 | |||
Amortization of intangible assets and deferred financing fees | 13,461 | 7,504 | 5,182 | |||
Share-based payments expense | 16,831 | 19,362 | 16,211 | |||
Excess tax benefits on share-based payments | -3,698 | -5,740 | -2,471 | |||
Deferred income taxes | -10,933 | 87,573 | 60,076 | |||
Impairment expense | 32,732 | [1] | 0 | 0 | ||
Loss from discontinued operations, net of tax | 0 | [1] | 0 | [1] | 11,068 | [1] |
(Income) loss from equity method investments, net | -19,928 | 5,184 | 1,591 | |||
Non-cash interest on convertible debt | 3,866 | 7,109 | 6,551 | |||
Loss from extinguishments of callable convertible debt | 6,013 | 0 | 0 | |||
Other | -2,039 | -4,100 | -95 | |||
Cash flows from changes in operating assets and liabilities: | ' | ' | ' | |||
Accounts receivable, net | 7,978 | -17,061 | -15,289 | |||
Content library | -22,459 | -30,693 | -2,062 | |||
Prepaid expenses and other current assets | -50,542 | -6,963 | -4,869 | |||
Other assets | 230 | 858 | 1,769 | |||
Accounts payable | -2,252 | 58,248 | 12,550 | |||
Accrued payable to retailers | -4,088 | 10,461 | 30,826 | |||
Other accrued liabilities | -9,573 | 2,787 | 36,117 | |||
Net cash flows from operating activities | 324,091 | 463,906 | 406,516 | |||
Investing Activities: | ' | ' | ' | |||
Purchases of property and equipment | -157,669 | -208,054 | -179,236 | |||
Proceeds from sale of property and equipment | 13,344 | 1,131 | 695 | |||
Receipt of note receivable principal | 22,913 | 0 | 0 | |||
Proceeds from sale of business, net | 0 | 0 | 8,220 | |||
Cash paid for equity investments | -28,000 | -39,727 | -4,912 | |||
Net cash flows from investing activities | -393,448 | -346,650 | -175,233 | |||
Financing Activities: | ' | ' | ' | |||
Proceeds from issuance of senior unsecured notes | 343,769 | 0 | 0 | |||
Proceeds from new borrowing of Credit Facility | 400,000 | 0 | 175,000 | |||
Principal payments on Credit Facility | -215,313 | -10,938 | -154,375 | |||
Financing costs associated with Credit Facility and senior unsecured notes | -2,203 | 0 | -4,196 | |||
Repurchase of convertible debt | -172,211 | -20,575 | 0 | |||
Repurchases of common stock | -195,004 | -139,724 | -63,349 | |||
Principal payments on capital lease obligations and other debt | -14,834 | -16,392 | -28,202 | |||
Excess tax benefits related to share-based payments | 3,698 | 5,740 | 2,471 | |||
Proceeds from exercise of stock options, net | 8,460 | 4,592 | 3,261 | |||
Net cash flows from financing activities | 156,362 | -177,297 | -69,390 | |||
Effect of exchange rate changes on cash | 1,538 | 1,080 | -454 | |||
Increase (decrease) in cash and cash equivalents from continuing operations | 88,543 | -58,961 | 161,439 | |||
Cash flows from discontinued operations: | ' | ' | ' | |||
Operating cash flows | 0 | [1] | 0 | [1] | 9,678 | [1] |
Investing cash flows | 0 | [1] | 0 | [1] | -12,678 | [1] |
Financing cash flows | 0 | [1] | 0 | [1] | 0 | [1] |
Net cash flows from discontinued operations: | 0 | [1] | 0 | [1] | -3,000 | [1] |
Increase (decrease) in cash and cash equivalents | 88,543 | [1] | -58,961 | [1] | 158,439 | |
Cash and cash equivalents: | ' | ' | ' | |||
Beginning of period | 282,894 | 341,855 | 183,416 | |||
End of period | 371,437 | 282,894 | 341,855 | |||
Supplemental disclosure of cash flow information: | ' | ' | ' | |||
Cash paid during the period for interest | 20,699 | 13,112 | 16,221 | |||
Cash paid during the period for income taxes | 55,989 | 9,211 | 5,393 | |||
Supplemental disclosure of non-cash investing and financing activities: | ' | ' | ' | |||
Purchases of property and equipment financed by capital lease obligations | 7,408 | 19,174 | 15,122 | |||
Purchases of property and equipment included in ending accounts payable | 12,254 | 27,562 | 12,432 | |||
Non-cash consideration received from sale of the Money Transfer Business | 0 | 0 | 23,826 | |||
Common stock issued on conversion of callable convertible debt | 14,292 | 0 | 0 | |||
Non-cash debt issue costs | 6,231 | 0 | 0 | |||
Number of discontinued concepts | 4 | ' | ' | |||
ecoATM [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | -244,036 | 0 | 0 | |||
NCR Asset Acquisition [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | $0 | ($100,000) | $0 | |||
[1] | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. |
Organization_and_Business
Organization and Business | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Organization And Business [Abstract] | ' | |||||
Organization and Business [Text Block] | ' | |||||
ORGANIZATION AND BUSINESS | ||||||
Description of Business | ||||||
We are a leading provider of automated retail solutions offering convenient products and services that benefit consumers and drive incremental retail traffic and revenue for retailers. | ||||||
On June 27, 2013, our name change from Coinstar, Inc. to Outerwall Inc. was approved by stockholders. The name change reflects the evolution of our company from a single coin-counting kiosk business into multiple automated retail businesses. The name Outerwall was selected as an umbrella corporate brand that encompasses our current operations and provides a platform for future automated retail opportunities. As part of our name change, we changed the name of our Coin business segment to the Coinstar business segment. | ||||||
Our core offerings in automated retail include our Redbox and Coinstar segments. Our Redbox segment consists of self-service kiosks where consumers can rent or purchase movies and video games. Our Coinstar segment consists of self-service coin-counting kiosks where consumers can convert their coins to cash or stored value products. Our New Ventures segment is focused on identifying, evaluating, building, or acquiring and developing innovative self-service concepts in the marketplace. New Ventures concepts are regularly assessed to determine whether continued funding or other alternatives are appropriate. During the fiscal year ended December 31, 2013, we purchased ecoATM, Inc., which provides an automated self-service kiosk system to purchase used mobile phones, tablets and MP3 players for cash, (See Note 3: Business Combinations for more information) and discontinued certain concepts within our New Ventures segment (See Note 13: Discontinued Operations and Sale of Business). Our kiosks are located primarily in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, malls and restaurants. Our kiosk and location counts as of December 31, 2013, are as follows: | ||||||
Kiosks | Locations | |||||
Redbox(1) | 44,000 | 36,400 | ||||
Coinstar | 20,900 | 20,600 | ||||
New Ventures(2) | 900 | 670 | ||||
Total(1) (2) | 65,800 | 57,670 | ||||
-1 | As of December 31, 2013, no kiosks acquired from NCR remained in service. See Note 3: Business Combinations for more information on the NCR Asset Acquisition. | |||||
-2 | Includes approximately 700 kiosks acquired through the purchase of ecoATM, Inc. See Note 3: Business Combinations for more information. As of December 31, 2013, there were over 800 ecoATM kiosks in service. Excludes kiosks related to concepts discontinued during the fiscal year ended December 31, 2013, See Note 13: Discontinued Operations and Sale of Business. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Summary of Significant Accounting Policies [Text Block] | ' | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Principles of Consolidation | ||||||||||||
The accompanying consolidated financial statements include the accounts of Outerwall Inc. and our wholly-owned subsidiaries. Investments in companies of which we may have significant influence, but not a controlling interest, are accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||
Use of Estimates in Financial Reporting | ||||||||||||
We prepare our financial statements in conformity with accounting principles generally accepted in the U.S. which requires management to make estimates and assumptions that affect the reported amounts in our consolidated financial statements and our notes thereto. The most significant estimates and assumptions include the: | ||||||||||||
• | useful lives and salvage values of our content library; | |||||||||||
• | determination of goodwill impairment; | |||||||||||
• | lives and recoverability of equipment and other long-lived assets; | |||||||||||
• | recognition and measurement of current and long-term deferred income taxes (including the measurement of uncertain tax positions); | |||||||||||
• | recognition and measurement of purchase price allocation for business combination; and | |||||||||||
• | loss contingencies. | |||||||||||
It is reasonably possible that the estimates we make may change in the future and could have a material effect on our financial statements. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Our cash and cash equivalents were $371.4 million and $282.9 million at December 31, 2013, and December 31, 2012, respectively. Of this total, cash equivalents were $65.8 million and $60.4 million at December 31, 2013, and December 31, 2012, respectively, consisting of money market demand accounts and investment grade fixed income securities such as money market funds, certificate of deposits, and commercial paper. Our cash balances with financial institutions may exceed the deposit insurance limits. | ||||||||||||
Included in our cash and cash equivalents at December 31, 2013, and December 31, 2012, were $85.5 million and $91.8 million, respectively that we identified for settling our accrued payable to our retailer partners in relation to our Coinstar kiosks. | ||||||||||||
Separately included in our cash and cash equivalents at December 31, 2013, and December 31, 2012 were $199.0 million and $123.3 million in cash and cash equivalents held in financial institutions domestically and $15.3 million and $18.3 million in cash and cash equivalents held in foreign financial institutions. | ||||||||||||
Accounts Receivable | ||||||||||||
Accounts receivable represents receivables, net of allowances for doubtful accounts. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on historical experience and other currently available information. When a specific account is deemed uncollectible, the account is written off against the allowance. Certain information regarding our allowance for doubtful accounts was as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Amount expensed for uncollectible accounts | $ | 177 | $ | 417 | $ | 455 | ||||||
Amount charged against the allowance | $ | — | $ | — | $ | — | ||||||
Content Library | ||||||||||||
Content library consists of movies and video games available for rent or purchase. We obtain our movie and video game content through revenue sharing agreements and license agreements with studios and game publishers, as well as through distributors and other suppliers. The cost of content mainly includes the cost of the movies and video games, labor, overhead, freight, and studio revenue sharing expenses. The content purchases are capitalized and amortized to their estimated salvage value as a component of direct operating expenses over the usage period. For purchased content that we expect to sell at the end of its useful life, we determine an estimated salvage value. Content salvage values are estimated based on the amounts that we have historically recovered on disposal. For licensed content that we do not expect to sell, no salvage value is provided. The useful lives and salvage value of our content library are periodically reviewed and evaluated. The amortization charges were derived utilizing rental curves based on historical performance of movies and games over their useful lives and recorded on an accelerated basis, reflecting higher rentals of movies and video games in the first few weeks after release, and substantially all of the amortization expense is recognized within one year of purchase. | ||||||||||||
In the second quarter of 2013, the Company completed a review of its content library amortization methodology and updated the methodology in order to add greater precision to product cost amortization. The previous method recognized accelerated amortization of content library costs at a rate faster than the decline in the content library's value due to the recognition of charges in addition to the normal rental curve amortization whenever individual discs were removed from kiosks, a process we define as "thinning". The Company's most recent analysis has shown that its amortization curves can reasonably capture the effect of thinning and therefore eliminates the need for additional charges at the time of thinning and provides a better correlation of costs to revenue. The modified approach to amortizing the cost of the content library is based on updated rental curves, which incorporate thinning estimates, and provides a more systematic method for recognizing the costs of movie and game titles. The Company anticipates that this new method will better align the recognition of costs with the related revenue. | ||||||||||||
The Company believes that the change in its content library amortization methodology, made on a prospective basis, is a change in accounting estimate that is effected by a change in accounting principle. The Company believes that the modified content library amortization methodology is preferable because it better reflects the pattern of consumption of the expected benefits of the content library. A copy of our auditor's preferability letter is filed as an exhibit to our 10-Q for the period ended June 30, 2013. | ||||||||||||
The effect of this change resulted in a reduction of product costs, as reported in direct operating expenses, of approximately $21.7 million in the second quarter of 2013, with those costs shifted to primarily the third and fourth quarters and some into 2014. The change resulted in a corresponding increase to the balance of our content library. In addition, the change in amortization methodology is shifted product costs on titles purchased during the second half of 2013 into 2014 as amortization is less accelerated than under the prior method. Under the modified amortization methodology, substantially all of the amortization expense will continue to be recognized within one year of purchase. For year ended December 31, 2013, the change resulted in a total pretax benefit of $31.8 million or $1.17 per basic share and $1.12 per diluted share. | ||||||||||||
Property and Equipment | ||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Expenditures that extend the life, increase the capacity, or improve the efficiency of property and equipment are capitalized, while expenditures for repairs and maintenance are expensed as incurred. Depreciation is recognized using the straight-line method over the following approximate useful lives: | ||||||||||||
Useful Life | ||||||||||||
Coin-counting kiosks and components | 2 to 10 years | |||||||||||
Redbox kiosks and components | 3-5 years | |||||||||||
Computers and software | 3 - 5 years | |||||||||||
Office furniture and equipment | 5 - 7 years | |||||||||||
Leased vehicles | 3 - 6 years | |||||||||||
Leasehold improvements | 1 - 11 years | |||||||||||
Internal-Use Software | ||||||||||||
We capitalize costs incurred to develop or obtain internal-use software during the application development stage. Capitalization of software development costs occurs after the preliminary project stage is complete, management authorizes the project, and it is probable that the project will be completed and the software will be used for the function intended. We expense costs incurred for training, data conversion, and maintenance, as well as spending in the post-implementation stage. A subsequent addition, modification or upgrade to internal-use software is capitalized only to the extent that it enables the software to perform a task it previously could not perform. The internal-use software is included in computers and software under property and equipment in our Consolidated Balance Sheets. We amortize the internal-use software based on the estimated useful life on a straight-line basis. | ||||||||||||
Intangible Assets Subject to Amortization | ||||||||||||
Our intangible assets subject to amortization are comprised primarily of developed technology and retailer relationships acquired in connection with our acquisitions. We used expectations of future cash flows, with appropriate discount rates based on the stage of the enterprise acquired, to estimate the fair value of our intangible assets. We amortize our intangible assets on a straight-line basis over their expected useful lives. | ||||||||||||
Goodwill | ||||||||||||
Goodwill represents the excess purchase price of an acquired enterprise or assets over the estimated fair value of identifiable net assets acquired. We assess goodwill for potential impairment at the reporting unit level on an annual basis as of November 30, or whenever an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We may assess qualitative factors to make this determination, or bypass such a qualitative assessment and proceed directly to testing goodwill for impairment using a two-step process. Qualitative factors we may consider include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments, entity specific factors such as strategies and financial performance. If, after completing such assessment, it is determined more likely than not that the fair value of a reporting unit is less than its carrying value, we proceed to a two-step impairment test, whereby the first step is comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the test is not performed. The second step of the impairment test is performed when the carrying amount of the reporting unit exceeds the fair value, then the implied fair value of the reporting unit goodwill is compared with the carrying amount of that goodwill. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to the excess. For additional information see Note 5: Goodwill and Other Intangible Assets. | ||||||||||||
Lives and Recoverability of Equipment and Other Long-Lived Assets | ||||||||||||
We evaluate the estimated remaining life and recoverability of equipment and other assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Factors that would indicate potential impairment include, but are not limited to, significant decreases in the market value of the long-lived asset(s), a significant change in the long-lived asset’s use or physical condition, and operating or cash flow losses associated with the use of the long-lived asset. When there is an indication of impairment, we prepare an estimate of future undiscounted cash flows expected to result from the use of the asset and its eventual disposition to test recoverability. If the sum of the future undiscounted cash flow is less than the carrying value of the asset, it indicates that the long-lived asset is not recoverable, in which case we will then compare the estimated fair value to its carrying value. If the estimated fair value is less than the carrying value of the asset, we recognize the impairment loss and adjust the carrying amount of the asset to its estimated fair value. | ||||||||||||
During the fourth quarter of 2013, we discontinued three new venture concepts, RubiTM, Crisp MarketTM and Star StudioTM. During the second quarter of 2013 we discontinued our OrangoTM concept. As a result of the decision to discontinue the four concepts, for each concept we estimated the fair value of assets held utilizing a cash flow approach. For each of the concepts and for certain shared service assets used for the new ventures, as of December 31, 2013, we estimated the fair value of the assets was zero and recorded impairment charges for each concept. See Note 13: Discontinued Operations and Sale of Business. | ||||||||||||
Income Taxes | ||||||||||||
Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities and operating loss and tax credit carryforwards. We record a valuation allowance to reduce deferred tax assets to the amount expected to more likely than not be realized in our future tax returns. Deferred tax assets and liabilities and operating loss and tax credit carryforwards are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carryforwards are expected to be recovered or settled. | ||||||||||||
We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate or effective settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. When applicable, associated interest and penalties have been recognized as a component of income tax expense. See Note 12: Income Taxes From Continuing Operations. | ||||||||||||
Taxes Collected from Customers and Remitted to Governmental Authorities | ||||||||||||
We account for tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction (i.e., sales, value added) on a net (excluded from revenue) basis. | ||||||||||||
Convertible Debt | ||||||||||||
In September 2009, we issued $200.0 million aggregate principal amount of 4% Convertible Senior Notes (the “Notes”). We have separately accounted for the liability and the equity components of the Notes based on the estimated fair value of the debt upon issuance. The Convertible Notes become convertible (the “Conversion Event”) when the closing price of our common stock exceeds $52.38, 130% of the Convertible Notes’ conversion price, for at least 20 trading days during the 30 consecutive trading days prior to each quarter-end date. If the Convertible Notes become convertible and should the holders elect to convert, we will be required to pay them up to the full face value of the Convertible Notes in cash as well as deliver shares of our common stock for any excess conversion value. The number of potentially issued shares increases as the market price of our common stock increases. As of December 31, 2013, such early conversion event was met. As a result, the Convertible Notes were classified as a current liability and the debt conversion feature was classified as temporary equity on our Consolidated Balance Sheets. See Note 8: Debt and Other Long-Term Liabilities in our Notes to Consolidated Financial Statements for more information on our debt instruments. As of December 31, 2013, we were in compliance with all debt covenants. | ||||||||||||
Loss Contingencies | ||||||||||||
We accrue estimated liabilities for loss contingencies arising from claims, assessments, litigation and other sources when it is probable that a liability has been incurred and the amount of the claim assessment or damages can be reasonably estimated. We believe that we have sufficient accruals to cover any obligations resulting from claims, assessments or litigation that have met these criteria. | ||||||||||||
Revenue Recognition | ||||||||||||
We recognize revenue when persuasive evidence of a sales arrangement exists, delivery has occurred or services are rendered, the sales price or fee is fixed or determinable and collectibility is reasonably assured as follows: | ||||||||||||
• | Redbox - Revenue from movie and video game rentals is recognized ratably over the term of a consumer’s rental transaction. Revenue from a direct sale out of the kiosk of previously rented movies or video games is recognized at the time of sale. On rental transactions for which the related movie or video game has not yet been returned to the kiosk at month-end, revenue is recognized with a corresponding receivable recorded in the balance sheet, net of a reserve for potentially uncollectible amounts. We record revenue net of refunds and applicable sales taxes collected from consumers. | |||||||||||
• | Coinstar - Revenue from a coin-counting transaction, which is collected from either consumers or card issuers (in stored value product transactions), is recognized at the time the consumers’ coins are counted by our coin-counting kiosks. Our revenue represents the fee charged for coin-counting transactions. | |||||||||||
• | New Ventures - New Ventures revenue is recognized when the sale of product or when the service transaction is complete. For our beauty concept this is at the time the transaction at kiosks is completed, for our ecoATM business revenue is recognized upon the sale and shipment of devices collected at our kiosk to third parties. Our New Ventures segment currently offers refurbished mobile devices and beauty samples to our consumers. | |||||||||||
Fees Paid to Retailers | ||||||||||||
Fees paid to retailers relate to the amount we pay our retailers for the benefit of placing our kiosks in their stores and their agreement to provide certain services on our behalf to our consumers. The fee is generally calculated as a percentage of each coin-counting transaction or as a percentage of our net movie or video game rental revenue and is recorded in our Consolidated Statements of Comprehensive Income within the direct operating expenses. The fee arrangements are based on our negotiations and evaluation of certain factors with the retailers such as total revenue, long-term non-cancelable contracts, installation of our kiosks in high traffic and/or urban or rural locations, co-op marketing incentives, or other criteria. | ||||||||||||
Advertising | ||||||||||||
Advertising costs, which are included as a component of marketing expenses, are expensed as incurred and totaled $13.7 million, $13.5 million and $15.9 million in 2013, 2012 and 2011, respectively. | ||||||||||||
Research and Development | ||||||||||||
Costs incurred for research and development activities are expensed as incurred. | ||||||||||||
Foreign Currency Translation | ||||||||||||
The functional currencies of our international subsidiaries are the British pound Sterling for our subsidiary Coinstar Limited in the United Kingdom, Canadian dollar for Coinstar International and Redbox Canada GP, and the Euro for our Coinstar Ireland Limited subsidiary. We translate assets and liabilities related to these operations to U.S. dollars at the exchange rate in effect at the date of the Consolidated Balance Sheets; we convert revenues and expenses into U.S. dollars using average exchange rates. Transaction gains and losses including on foreign currency intercompany transactions not deemed to be of a long term investment nature are included in Other income (expense), net on our Consolidated Statements of Comprehensive Income. Translation gains and losses, including gains and losses on foreign currency intercompany transactions deemed to be of a long term investment nature, are reported as a separate component of accumulated other comprehensive loss. | ||||||||||||
Share-Based Payments | ||||||||||||
We measure and recognize expense for all share-based payment awards granted, including employee stock options and restricted stock awards, based on the estimated fair value of the award on the grant date. We utilize the Black-Scholes-Merton (“BSM”) valuation model for valuing our stock option awards and the determination of the expenses. | ||||||||||||
The use of the BSM valuation model to estimate the fair value of stock option awards requires us to make judgments on assumptions regarding the risk-free interest rate, expected dividend yield, expected term and expected volatility over the expected term of the award. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates at the time they are made, but these estimates involve inherent uncertainties and the determination of expense could be materially different in the future. | ||||||||||||
We amortize share-based payment expense on a straight-line basis over the vesting period of the individual award with estimated forfeitures considered. Vesting periods are generally four years. Shares to be issued upon the exercise of stock options will come from newly issued shares. The expense related to restricted stock granted to movie studios as part of license agreements is adjusted based on the number of unvested shares and market price of our common stock each reporting period. | ||||||||||||
Share-based payment expense is only recognized on awards that ultimately vest. Therefore, we have reduced the share-based payment expense to be recognized over the vesting period for anticipated future forfeitures. Forfeiture estimates are based on historical forfeiture patterns. We review and assess our forfeiture estimates quarterly and update them if necessary. Any changes to accumulated share-based payment expense are recognized in the period of change. If actual forfeitures differ significantly from our estimates, our results of operations could be materially impacted. For additional information see Note 10: Share-Based Payments. | ||||||||||||
Fair Value of Financial Instruments | ||||||||||||
The carrying amounts for cash equivalents approximate fair value, which is the amount for which the instrument could be exchanged in a current transaction between willing parties. Our available-for-sale securities are marked to fair value on a quarterly basis. The fair value of our revolving line of credit approximates its carrying amount. For additional information see Note 18: Fair Value. | ||||||||||||
Accounting Pronouncements Adopted During the Current Year | ||||||||||||
In July 2012, the FASB issued ASU No. 2012-2, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” ("ASU 2012-2"). ASU 2012-2 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test for indefinite-lived intangible assets. An organization that elects to perform a qualitative assessment no longer is required to perform the quantitative impairment test for an indefinite-lived intangible asset if it is not more likely than not that the asset is impaired. ASU 2012-2, which applies to all public, private, and not-for-profit organizations, is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Our adoption of ASU 2012-2 in the first quarter of 2013 did not have a material impact on our financial position, results of operations or cash flows. | ||||||||||||
On February 5, 2013, the FASB issued ASU No. 2013-2, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” ("ASU 2013-2"). ASU 2013-2 was issued to address concerns raised in the initial issuance of ASU No. 2011-5, “Presentation of Comprehensive Income”, for which the Board deferred the effective date of certain provisions relating to the presentation of reclassification adjustments in the income statement. With the issuance of ASU 2013-2 entities are now required to disclose: | ||||||||||||
• | For items reclassified out of accumulated other comprehensive income and into net income in their entirety, the effect of the reclassification on each affected net income line item; and | |||||||||||
• | For AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required disclosures under generally accepted accounting standards in the United States ("US GAAP"). | |||||||||||
This information may be provided either in the notes or parenthetically on the face of the statement that reports net income as long as all the information is disclosed in a single location. However, an entity is prohibited from providing this information parenthetically on the face of the statement that reports net income if it has items that are not reclassified in their entirety into net income. For public entities, ASU 2013-2 is effective for annual reporting periods beginning after December 15, 2012 and interim periods within those years. Our adoption of ASU 2013-2 in the first quarter of 2013 did not have a material impact on our financial position, results of operations or cash flows. | ||||||||||||
Reclassifications | ||||||||||||
We ceased operation of our self-service concept for refurbished electronics called Orango during the second quarter of 2013 and on December 5, 2013, we decided to discontinue three additional new venture concepts, Rubi, Crisp Market and Star Studio. We have reclassified the results of operations of these four ventures to discontinued operations for all periods presented in our Consolidated Statements of Comprehensive Income. See Note 13: Discontinued Operations and Sale of Business for more information. | ||||||||||||
On June 22, 2012, Redbox acquired certain assets of NCR Corporation (“NCR”) related to NCR’s self-service entertainment DVD kiosk business (the “NCR Asset Acquisition”). The purchased assets included, among others, self-service DVD kiosks, content library, intellectual property, and certain related contracts, including with certain retailers. In consideration, Redbox paid NCR $100.0 million in cash and assumed certain liabilities of NCR related to the purchased assets. | ||||||||||||
We accounted for the NCR Asset Acquisition as a business combination. In accordance with US GAAP, the measurement period for our purchase price allocation ended as soon as information regarding our assessment of the quality and quantity of the kiosks acquired as well as certain facts and circumstances became available; such measurement period was not to exceed twelve months from the acquisition date. In our originally issued FY 2012 10-K, we included a preliminary purchase price allocation. During the second quarter of 2013, we obtained sufficient evidence regarding the quality and market value of the kiosks acquired (See Note 3: Business Combination) to finalize our purchase price allocation. As a result, we retroactively adjusted our purchase price allocation to increase the value assigned to such kiosks acquired by $14.8 million with a corresponding decrease to goodwill in the period in which the NCR Asset Acquisition occurred resulting in a corresponding change in our December 31, 2012 ending balances to our originally issued FY 2012 10-K. |
Business_Combination
Business Combination | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Business Combinations [Text Block] | ' | |||||||||||
BUSINESS COMBINATIONS | ||||||||||||
Acquisition of ecoATM, Inc., | ||||||||||||
On July 1, 2013, Outerwall Inc., entered into an agreement and plan of merger with ecoATM, Inc., a Delaware corporation (“ecoATM”) that provides an automated self-service kiosk system to purchase used mobile phones, tablets and MP3 players for cash. On July 23, 2013 all necessary approvals were obtained and we completed the acquisition of the remaining 77.0% equity interest which we did not already own. The primary reason for the business combination was to expand Outerwall’s presence in automated retail and gain exposure to the growing demand for refurbished products and mobile devices. | ||||||||||||
We accounted for the purchase of ecoATM as a business combination. Costs related to this acquisition of approximately $5.7 million were expensed during the second and third quarters 2013 and are included within general and administrative expenses in our Consolidated Statements of Comprehensive Income. | ||||||||||||
The following table highlights the consideration transferred, the fair value of our previously held equity interest and the fair value of replacement awards issued attributable to post-combination services. | ||||||||||||
Dollars in thousands | 23-Jul-13 | |||||||||||
Consideration Transferred: | ||||||||||||
Cash paid | $ | 262,882 | ||||||||||
Replacement awards attributable to pre-combination services | 1,398 | |||||||||||
Total consideration transferred | 264,280 | |||||||||||
Previously held equity interest: | ||||||||||||
Acquisition date fair value of previously held equity interest | 76,359 | |||||||||||
Total consideration transferred and fair value of previously held equity interest | $ | 340,639 | ||||||||||
Fair value of replacement awards attributable to post-combination services | $ | 30,671 | ||||||||||
As a part of the merger, we issued replacement awards for unvested restricted stock and options in ecoATM with rights to receive cash equal to the per share merger consideration for restricted stock and net of the exercise price for options. The replacement awards vest in accordance with the terms of the original replaced award. The fair value of the original and replacement awards amounted to $32.1 million, $1.4 million of which was attributed to pre-combination services rendered and included in the calculation of total consideration transferred. The replacement awards are considered liability classified as they require settlement in cash. Expense associated with the post-combination awards will be recognized net of forfeitures, and cash payments will be made, in accordance with the awards' vesting schedule, generally on a monthly basis. | ||||||||||||
Prior to the merger, we had a 23% equity interest in ecoATM. The guidance on accounting for business combinations requires that an acquirer remeasure its previously held equity interest in the acquiree at its acquisition date fair value and recognize the resulting gain or loss in earnings. We valued our previously held equity interest in ecoATM at $76.4 million, which was based on the per share merger consideration, resulting in a gain of $68.4 million included within income (loss) from equity method investments in our Consolidated Statements of Comprehensive Income and within (Income) loss from equity method investments, net in our Consolidated Statements of Cash Flows. | ||||||||||||
The following table shows the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed and the resultant purchase price allocation. | ||||||||||||
Dollars in thousands | 23-Jul-13 | |||||||||||
Assets acquired: | ||||||||||||
Cash and cash equivalents | $ | 18,846 | ||||||||||
Accounts receivable | 18 | |||||||||||
Prepaid expenses and other current assets | 4,450 | |||||||||||
Current deferred income taxes | 6,476 | |||||||||||
Property and equipment | 23,207 | |||||||||||
Intangible assets | 41,400 | |||||||||||
Goodwill | 264,213 | |||||||||||
Other long-term assets | 131 | |||||||||||
Total assets acquired | 358,741 | |||||||||||
Liabilities assumed: | ||||||||||||
Accounts payable | (3,755 | ) | ||||||||||
Other accrued liabilities | (1,605 | ) | ||||||||||
Long term deferred tax liabilities | (12,742 | ) | ||||||||||
Total consideration transferred and fair value of previously held equity interest | $ | 340,639 | ||||||||||
The assets acquired and liabilities assumed, as well as the results of operations from the date of the acquisition, are included within our New Ventures segment with the exception of expense for rights to receive cash which are unallocated corporate expenses. Goodwill of $264.2 million is calculated as the excess of the purchase price paid over the net assets acquired. The goodwill recorded as part of the ecoATM acquisition primarily reflects the expected market opportunity from the expansion of the ecoATM footprint in the growing U.S. mobile device market providing consumers with a convenient trade-in solution, as well as any intangible assets that do not qualify for separate recognition. All of the goodwill has been assigned to our New Ventures segment. None of the goodwill is deductible for tax purposes. The federal and state net operating loss carryforwards are subject to limitations under Section 382 of the Internal Revenue Code and applicable state tax law. | ||||||||||||
Acquired identifiable intangible assets and their estimated useful life in years are as follows: | ||||||||||||
Dollars in thousands | Purchase | Estimated Useful Life in Years | ||||||||||
Price | ||||||||||||
Intangible assets: | ||||||||||||
Developed technology | $ | 34,000 | 5 | |||||||||
Trade name | 6,000 | 5 | ||||||||||
Covenants not to compete | 1,400 | 5 | ||||||||||
Total | $ | 41,400 | ||||||||||
The following table shows the revenue and operating loss included in our Consolidated Statements of Comprehensive Income resulting from the acquisition of ecoATM since the closing date, including the amortization for acquired intangibles which are allocated to our New Ventures segment and expense for rights to receive cash which are unallocated corporate expenses: | ||||||||||||
Year Ended | ||||||||||||
Dollars in thousands | 31-Dec-13 | |||||||||||
Revenue | $ | 31,824 | ||||||||||
Operating loss | $ | 14,538 | ||||||||||
Pro forma information | ||||||||||||
The following unaudited pro forma information represents the results of operations for Outerwall Inc. and includes the ecoATM business acquired as if the acquisition was consummated as of January 1, 2012. | ||||||||||||
Years Ended | ||||||||||||
December 31, | ||||||||||||
(Unaudited) | ||||||||||||
Dollars in thousands | 2013 | 2012 | ||||||||||
Pro-forma revenue | $ | 2,330,195 | $ | 2,212,107 | ||||||||
Pro-forma income from continuing operations (1) | $ | 136,245 | $ | 208,209 | ||||||||
-1 | Pro-forma income from continuing operations includes the acquisition costs of $1.7 million and $4.0 million recorded in the second and third quarters of 2013, respectively. | |||||||||||
The unaudited pro forma results have been adjusted with respect to certain aspects of our acquisition of ecoATM to reflect: | ||||||||||||
• | changes in assets and liabilities to record their acquisition date fair values and the resulting changes in certain expenses such as amortization; | |||||||||||
• | recognition of the gain on our previously held equity interest as if the acquisition occurred on January 1, 2012; | |||||||||||
• | recognition of expense associated with the post-combination rights to receive cash as if they were granted on January 1, 2012; | |||||||||||
• | reversals of losses from our equity investment; and | |||||||||||
• | the inclusion of the results of operations and the impact on taxes as if ecoATM had been a wholly owned subsidiary since January 1, 2012. | |||||||||||
The unaudited pro forma results do not reflect future events that may occur after the acquisition, including, but not limited to, the anticipated realization of ongoing savings from operating synergies in subsequent periods. | ||||||||||||
Acquisition of NCR Corporation | ||||||||||||
On June 22, 2012, Redbox acquired certain assets of NCR Corporation (“NCR”) related to NCR’s self-service entertainment DVD kiosk business (the “NCR Asset Acquisition”). The purchased assets include, among others, self-service DVD kiosks, content library, intellectual property, and certain related contracts, including with certain retailers. In consideration, Redbox paid NCR $100.0 million in cash and assumed certain liabilities of NCR related to the purchased assets. The operating results of NCR’s self-service entertainment DVD kiosk business are included in our Redbox segment results. | ||||||||||||
We accounted for the NCR Asset Acquisition as a business combination. In accordance with US GAAP, the measurement period for our purchase price allocation ends as soon as information regarding our assessment of the quality and quantity of the kiosks acquired as well as certain facts and circumstances becomes available; such measurement period will not exceed twelve months from the acquisition date. During the second quarter of 2013, we obtained sufficient evidence regarding the quality and market value of the kiosks acquired (See Note 4: Property and Equipment for more information on the sale of certain NCR kiosks during the second quarter of 2013) to finalize our purchase price allocation. As a result, we retroactively adjusted our purchase price allocation to increase the value assigned to the kiosks acquired by $14.8 million with a corresponding decrease to goodwill to the period in which the NCR Asset Acquisition occurred. This adjustment to our purchase price allocation resulted in an immaterial difference in depreciation which we recorded as a cumulative adjustment in the second quarter of 2013. | ||||||||||||
The following table shows our preliminary purchase price allocation, adjustments we made during the six months ended June 30, 2013 and our final purchase price allocation based on the fair value of the assets acquired and liabilities assumed at the NCR Asset Acquisition date as follows: | ||||||||||||
June 22, 2012 | ||||||||||||
Dollars in thousands | Preliminary | Adjustments | Final | |||||||||
Assets acquired: | ||||||||||||
Content library | $ | 4,330 | $ | — | $ | 4,330 | ||||||
Prepaid expenses | 240 | — | 240 | |||||||||
Deferred income taxes | 1,500 | — | 1,500 | |||||||||
Property and equipment | 9,130 | 14,766 | 23,896 | |||||||||
Intangible assets | 46,960 | — | 46,960 | |||||||||
Goodwill | 42,110 | (14,766 | ) | 27,344 | ||||||||
Total assets acquired | 104,270 | — | 104,270 | |||||||||
Liabilities assumed: | ||||||||||||
Accrued liabilities | (4,270 | ) | — | (4,270 | ) | |||||||
Total consideration paid in cash | $ | 100,000 | $ | — | $ | 100,000 | ||||||
Goodwill of $27.3 million, attributable primarily to the future expected synergies and operational efficiencies, as well as market expansion, has been assigned to our Redbox segment. The majority of the goodwill is deductible for tax purposes. | ||||||||||||
We estimated the fair value of the acquired identifiable intangible assets based on the forecasted future cash flows discounted at a rate of approximately 11.0%. A portion of the purchase price is allocated to the following identifiable intangible assets: | ||||||||||||
Dollars in thousands | Purchase | Estimated | ||||||||||
Price | Useful Life | |||||||||||
in Years | ||||||||||||
Intangible assets: | ||||||||||||
Retailer relationships | $ | 40,000 | 10 | |||||||||
Patents | 6,300 | 8 | ||||||||||
Trademark and trade name | 500 | 1 | ||||||||||
Internal use software | 160 | 1 | ||||||||||
Total | $ | 46,960 | ||||||||||
As of the date of acquisition, we estimated the weighted-average useful life of the acquired identifiable intangible assets to be 9.6 years. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment [Text Block] | ' | |||||||
PROPERTY AND EQUIPMENT | ||||||||
December 31, | ||||||||
Dollars in thousands | 2013 | 2012 | ||||||
Kiosks and components | $ | 1,105,761 | $ | 1,041,755 | ||||
Computers, servers, and software | 226,389 | 195,756 | ||||||
Office furniture and equipment | 7,260 | 6,538 | ||||||
Vehicles | 6,553 | 7,278 | ||||||
Leasehold improvements | 23,198 | 19,743 | ||||||
Property and equipment, at cost | 1,369,161 | 1,271,070 | ||||||
Accumulated depreciation and amortization | (848,296 | ) | (684,946 | ) | ||||
Property and equipment, net | $ | 520,865 | $ | 586,124 | ||||
During the fiscal year ended December 31, 2013, as a result of discontinuing certain concepts within our New Ventures segment, we recorded charges of $32.7 million for Property and Equipment which are recorded within Loss from discontinued operations, net of tax in our Consolidated Statements of Comprehensive Income. See Note 13: Discontinued Operations and Sale of Business for more information. This included reclassifying total charges related to our Orango concept of $5.6 million from depreciation and other expense and $0.5 million from direct operating expense for the year ended December 31, 2013 to Loss from discontinued operations, net of tax. These charges were previously not presented as discontinued operations within our quarterly reports as they were not material on a stand-alone basis. Upon discontinuing the three additional concepts in the fourth quarter of 2013, we reclassified the results of all four concepts as Discontinued Operations. | ||||||||
During the second quarter of 2013, we entered into an arrangement to sell certain kiosks previously acquired from NCR (the “NCR Kiosks”) through the sale of a previously consolidated entity which held certain of the NCR kiosks with a net book value of $12.4 million. Total proceeds from the sale of the entity were $11.8 million and are recorded within proceeds from sale of property and equipment within our Consolidated Statements of Cash Flows. As a result of this sale and certain reorganizations we recorded a one-time tax benefit as described in Note 12: Income Taxes From Continuing Operations. | ||||||||
During the third quarter of 2013, we acquired ecoATM, which included $23.2 million in property and equipment measured at fair value as of the acquisition date and is included in the table above. See Note 3: Business Combinations for more information. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Other Intangible Assets [Text Block] | ' | |||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||
Goodwill | ||||||||||||||||
The carrying amount of goodwill was as follows: | ||||||||||||||||
Dollars in thousands | ||||||||||||||||
Goodwill balance at December 31, 2012 | $ | 309,860 | ||||||||||||||
Purchase price allocation adjustment | (14,766 | ) | ||||||||||||||
Adjusted balance at December 31, 2012 | 295,094 | |||||||||||||||
Goodwill from acquisition of ecoATM | 264,213 | |||||||||||||||
Goodwill balance at December 31, 2013 | $ | 559,307 | ||||||||||||||
Goodwill by Segment | ||||||||||||||||
The carrying amount of goodwill by segment was as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Dollars in thousands | (As adjusted) | |||||||||||||||
Redbox | $ | 138,743 | $ | 138,743 | ||||||||||||
Coinstar | 156,351 | 156,351 | ||||||||||||||
New Ventures | 264,213 | — | ||||||||||||||
Total goodwill | $ | 559,307 | $ | 295,094 | ||||||||||||
During the second quarter of 2013, we finalized the purchase price allocation associated with the NCR Asset Acquisition resulting in a $14.8 million decrease in Goodwill. During the third quarter of 2013 we acquired ecoATM resulting in a $264.2 million increase in Goodwill. See Note 3: Business Combinations for more information. | ||||||||||||||||
We utilized a qualitative assessment for our annual Goodwill impairment analysis, performed as of November 30, 2013, and determined that it was not more likely than not that the fair value of each of our reporting units was less than its applicable carrying value. Accordingly, it was not necessary to perform the two-step impairment test and no goodwill impairment was recognized in 2013. | ||||||||||||||||
Other Intangible Assets | ||||||||||||||||
The gross amount of our other intangible assets and the related accumulated amortization were as follows: | ||||||||||||||||
Amortization | December 31, | |||||||||||||||
Dollars in thousands | Period | 2013 | 2012 | |||||||||||||
Retailer relationships | 5 - 10 years | $ | 53,295 | $ | 53,344 | |||||||||||
Accumulated amortization | (17,768 | ) | (11,518 | ) | ||||||||||||
35,527 | 41,826 | |||||||||||||||
Developed technology | 5 years | 34,000 | — | |||||||||||||
Accumulated amortization | (2,833 | ) | — | |||||||||||||
31,167 | — | |||||||||||||||
Other | 1 - 40 years | 16,800 | 9,404 | |||||||||||||
Accumulated amortization | (4,111 | ) | (2,261 | ) | ||||||||||||
12,689 | 7,143 | |||||||||||||||
Intangible assets, net | $ | 79,383 | $ | 48,969 | ||||||||||||
Amortization expense was as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||||||
Retailer relationships | $ | 6,250 | $ | 4,456 | $ | 2,457 | ||||||||||
Developed technology | 2,833 | — | 283 | |||||||||||||
Other | 1,850 | 922 | — | |||||||||||||
Total amortization of intangible assets | $ | 10,933 | $ | 5,378 | $ | 2,740 | ||||||||||
During the third quarter of 2013 we acquired ecoATM resulting in a $41.4 million increase in Other Intangible Assets. See Note 3: Business Combinations for more information. | ||||||||||||||||
Assuming no future impairment, the expected future amortization as of December 31, 2013 is as follows: | ||||||||||||||||
Dollars in thousands | Retailer | Developed Technology | Other | Total | ||||||||||||
Relationships | ||||||||||||||||
2014 | $ | 5,432 | $ | 6,800 | $ | 2,449 | $ | 14,681 | ||||||||
2015 | 4,012 | 6,800 | 2,419 | 13,231 | ||||||||||||
2016 | 4,012 | 6,800 | 2,307 | 13,119 | ||||||||||||
2017 | 4,012 | 6,800 | 2,285 | 13,097 | ||||||||||||
2018 | 4,012 | 3,967 | 1,664 | 9,643 | ||||||||||||
Thereafter | 14,047 | — | 1,565 | 15,612 | ||||||||||||
Total expected amortization | $ | 35,527 | $ | 31,167 | $ | 12,689 | $ | 79,383 | ||||||||
Equity_Method_Investments_and_
Equity Method Investments and Related Party Transactions | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Equity Method Investments and Related Party Transactions [Text Block] | ' | |||||||||||
EQUITY METHOD INVESTMENTS AND RELATED PARTY TRANSACTIONS | ||||||||||||
Redbox Instant™ by Verizon | ||||||||||||
In February 2012, Redbox and Verizon Ventures IV LLC (“Verizon”), a wholly owned subsidiary of Verizon Communications Inc., entered into a Limited Liability Company Agreement (the “LLC Agreement”) and related arrangements. The LLC Agreement governs the relationship of the parties with respect to a joint venture, Redbox Instant by Verizon (the “Joint Venture”) formed for the primary purpose of developing, launching, marketing and operating a nationwide “over-the-top” video distribution service to provide consumers with access to video programming content, including linear content, delivered via broadband networks to video enabled viewing devices and offering rental of physical DVDs and Blu-ray™ discs from Redbox kiosks. Redbox initially acquired a 35.0% ownership interest in the Joint Venture and made an initial capital contribution of $14.0 million in cash in February 2012 subsequent to the formation of the Joint Venture. The Joint Venture board of managers may request each member to make additional capital contributions, on a pro rata basis relative to its respective ownership interest. If a member does not make any or all of its requested capital contributions, as the case may be, the other contributing member generally may make such capital contributions. So long as Redbox contributes its pro rata share of the first $450.0 million of capital contributions to the Joint Venture, Redbox’s interest cannot be diluted below 10.0%. At the request of the Joint Venture board of managers, in addition to the initial capital contribution, Redbox made cash payments of $10.5 million during the third quarter of 2012 and $14.0 million during each of the first and third quarters of 2013 representing its pro-rata share of the requested capital contribution. | ||||||||||||
In addition to the initial cash capital contribution, Redbox granted the Joint Venture a limited, non-exclusive, non-transferable, royalty-free right and license to use certain Redbox trademarks, of which the estimated fair value was approximately $30.0 million based on an evaluation of information available as of the date of the grant. As a result, during the first quarter of 2012, we recognized a gain of $19.5 million related to the pro-rata amount of fair value given up in exchange for our 35.0% interest in the Joint Venture. See Note 18: Fair Value for additional information about how we estimated the fair value of the Redbox trademarks. The initial excess of our cost of the investment in the Joint Venture over our share of the Joint Venture’s equity will be used to adjust future amortization expense. | ||||||||||||
We account for Redbox’s ownership interest in the Joint Venture using the equity method of accounting. During the first quarter of 2012, the transaction related costs of $4.4 million were recorded as a part of the equity investment in the Joint Venture. We recognized a loss of approximately $45.1 million and $22.5 million from our equity method investment, representing our share of the Joint Venture’s operating results as well as the amortization of differences in carrying amount and underlying equity for the years ended December 31, 2013, and 2012, respectively. Separate from equity method accounting for our ownership interest in the Joint Venture, we record revenue attributable with the rental of DVDs and Blu-ray discs from our Redbox kiosks arising from Joint Venture subscribers within our Redbox segment. | ||||||||||||
Redbox has certain rights to cause Verizon to acquire Redbox’s interest in the Joint Venture at fair value (generally following the fifth anniversary of the LLC Agreement or in limited circumstances, at an earlier period of time) and Verizon has certain rights to acquire Redbox’s interest in the Joint Venture at fair value (generally following the seventh anniversary of the LLC Agreement, or, in limited circumstances, the fifth anniversary of the LLC Agreement). | ||||||||||||
Other Equity Method Investments | ||||||||||||
We make strategic equity investments in external companies that provide automated self-service kiosk solutions. Our equity method investments and ownership percentages as of December 31, 2013, were as follows: | ||||||||||||
Dollars in thousands | Equity | Ownership | ||||||||||
Investment | Percentage | |||||||||||
Redbox Instant by Verizon | $ | 8,709 | 35% | |||||||||
SoloHealth, Inc. | 1,998 | 10% | ||||||||||
Equity method investments | $ | 10,707 | ||||||||||
Our equity method investments are included within other long-term assets on our Consolidated Balance Sheets. | ||||||||||||
During the third quarter of 2013, we acquired ecoATM, previously one of our equity method investments. See Note 3: Business Combinations for more information. | ||||||||||||
Income (loss) from Equity Method Investments and Summarized Financial Information | ||||||||||||
Income (loss) from equity method investments within our Consolidated Statements of Comprehensive Income is composed of the following: | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Trademark gain | $ | — | $ | 19,500 | $ | — | ||||||
Gain on previously held equity interest on ecoATM | 68,376 | — | — | |||||||||
Proportionate share of net loss of equity method investees: | ||||||||||||
Redbox Instant by Verizon | (42,660 | ) | (20,236 | ) | — | |||||||
Other | (3,313 | ) | (2,179 | ) | (1,591 | ) | ||||||
Total proportionate share of net loss of equity method investees | (45,973 | ) | (22,415 | ) | (1,591 | ) | ||||||
Amortization of difference in carrying amount and underlying equity in Redbox Instant by Verizon | (2,475 | ) | (2,269 | ) | — | |||||||
Total income (loss) from equity method investments | $ | 19,928 | $ | (5,184 | ) | $ | (1,591 | ) | ||||
Operating results for the Joint Venture include impairments of certain long lived Joint Venture related assets resulting from certain triggering events. Although its impairment testing is not complete as of the date of this filing, the Joint Venture believes an impairment loss is probable and has provided to us its best estimate. Completion of this impairment test by the Joint Venture may result in an adjustment to this estimate. | ||||||||||||
A summary of financial information for our equity method investees in the aggregate, as provided to us by the investees, is as follows: | ||||||||||||
Balance Sheets | December 31, | |||||||||||
Dollars in thousands | 2013 | 2012 | ||||||||||
Current assets | $ | 32,832 | $ | 29,857 | ||||||||
Noncurrent assets | 30,765 | 39,828 | ||||||||||
Current liabilities | 46,706 | 15,822 | ||||||||||
Long-term liabilities | 23,905 | 6,462 | ||||||||||
Redeemable preferred stock | 23,542 | 23,696 | ||||||||||
Statement of Operations | Years Ended December 31, | |||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Revenue | $ | 15,824 | $ | 2,067 | $ | 650 | ||||||
Cost of sales and service | 25,092 | 10,716 | 571 | |||||||||
Net loss and loss from continuing operations | 134,911 | 58,510 | 4,337 | |||||||||
Related Party Transactions | ||||||||||||
At December 31, 2013 and December 31, 2012, included within accounts receivable, net of allowance, on our Consolidated Balance Sheets, was $5.9 million and $0.9 million, respectively, due from the Joint Venture related to costs incurred by Redbox on behalf of the Joint Venture during the normal course of business. |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets and Other Liabilities Disclosure [Abstract] | ' | |||||||
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities [Text Block] | ' | |||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS AND OTHER ACCRUED LIABILITIES | ||||||||
Prepaid expenses and other current assets: | ||||||||
Dollars in thousands | December 31, | |||||||
2013 | 2012 | |||||||
Income taxes receivable | $ | 37,466 | $ | 2,650 | ||||
Spare parts | 18,975 | 11,683 | ||||||
Licenses | 4,568 | 2,887 | ||||||
Electronic devices inventory | 3,529 | — | ||||||
DVD cases and labels | 2,596 | 5,043 | ||||||
Prepaid rent | 1,302 | 326 | ||||||
Other | 16,262 | 7,097 | ||||||
Total prepaid and other current assets | $ | 84,698 | $ | 29,686 | ||||
Other accrued liabilities consist of the following: | ||||||||
Dollars in thousands | December 31, | |||||||
2013 | 2012 | |||||||
Payroll related expenses | $ | 33,852 | $ | 39,469 | ||||
Procurement cost for content library | 21,602 | 36,436 | ||||||
Business taxes | 22,939 | 23,301 | ||||||
Insurance | 13,379 | 8,714 | ||||||
Professional fees | 930 | 4,822 | ||||||
Service contract provider expenses | 8,134 | 3,560 | ||||||
Deferred rent expense | 5,713 | 3,191 | ||||||
Accrued interest expense | 7,015 | 1,450 | ||||||
Income tax payable | — | 826 | ||||||
Other | 20,563 | 24,356 | ||||||
Total other accrued liabilities | $ | 134,127 | $ | 146,125 | ||||
Debt_and_Other_LongTerm_Liabil
Debt and Other Long-Term Liabilities | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||||||
Debt and Other Long-Term Liabilities [Text Block] | ' | |||||||||||
DEBT AND OTHER LONG-TERM LIABILITIES | ||||||||||||
Debt and Other Liabilities | As of December 31, 2013 | |||||||||||
Dollars in thousands | Current | Long-term | Total | |||||||||
Senior unsecured notes | $ | — | $ | 350,000 | $ | 350,000 | ||||||
Callable convertible debt | 49,702 | — | 49,702 | |||||||||
Term loans under Credit Facility | 42,187 | 302,188 | 344,375 | |||||||||
Asset retirement obligation | — | 13,086 | 13,086 | |||||||||
Other liabilities | 3 | 12,082 | 12,085 | |||||||||
Total | $ | 91,892 | $ | 677,356 | $ | 769,248 | ||||||
Debt and Other Liabilities | As of December 31, 2012 | |||||||||||
Dollars in thousands | Current | Long-term | Total | |||||||||
Convertible debt | $ | — | $ | 172,810 | $ | 172,810 | ||||||
Term loan under Credit Facility | 15,312 | 144,375 | 159,687 | |||||||||
Asset retirement obligation | — | 14,020 | 14,020 | |||||||||
Other liabilities | 217 | 9,974 | 10,191 | |||||||||
Total | $ | 15,529 | $ | 341,179 | $ | 356,708 | ||||||
Senior Unsecured Notes | ||||||||||||
On March 12, 2013, we and certain subsidiaries of ours, as subsidiary guarantors (the “Subsidiary Guarantors”), entered into an indenture (the “Indenture”) with Wells Fargo Bank, National Association, as trustee, pursuant to which we issued $350.0 million principal amount of 6.000% Senior Notes due 2019 (the “Notes”) at par for proceeds, net of expenses, of $343.8 million and the Subsidiary Guarantors would guarantee the Notes (the “Guarantees”). We will use the proceeds of this offering primarily toward Convertible Note repayment and other corporate purposes. The Notes and the Guarantees are general unsecured obligations and are effectively subordinated to all of our and Subsidiary Guarantors’ existing and future secured debt to the extent of the collateral securing that secured debt. In addition, the Notes will be effectively subordinated to all of the liabilities of our existing and future subsidiaries that are not guaranteeing the Notes. Interest on the Notes will be payable on March 15 and September 15 of each year, beginning on September 15, 2013, with the Notes maturing on March 15, 2019. | ||||||||||||
We may redeem any of the Notes beginning on March 15, 2016, at a redemption price of 103% of their principal amount plus accrued and unpaid interest (and additional interest, if any); then the redemption price for the Notes will be 101.5% of their principal amount plus accrued and unpaid interest (and additional interest, if any) for the twelve-month period beginning March 15, 2017; and then the redemption price for the Notes will be 100% of their principal amount plus accrued interest and unpaid interest (and additional interest, if any) beginning on March 15, 2018. We may also redeem some or all of the Notes before March 15, 2016, at a redemption price of 100% of the principal amount, plus accrued and unpaid interest (and additional interest, if any), to the redemption date, plus an applicable “make-whole” premium. In addition, before March 15, 2016, we may redeem up to 35% of the aggregate principal amount of the Notes with the proceeds of certain equity offerings at 106% of their principal amount plus accrued and unpaid interest (and additional interest, if any); the Company may make such redemption only if, after any such redemption, at least 65% of the aggregate principal amount of Notes originally issued remains outstanding. | ||||||||||||
Upon a change of control (as defined in the Indenture), we will be required to make an offer to purchase the Notes or any portion thereof. That purchase price will equal 101% of the principal amount of the Notes on the date of purchase plus accrued and unpaid interest (and additional interest, if any). If we make certain asset sales and do not reinvest the proceeds or use such proceeds to repay certain debt, we will be required to use the proceeds of such asset sales to make an offer to purchase the Notes at 100% of their principal amount, together with accrued and unpaid interest and additional interest, if any, to the date of purchase. | ||||||||||||
The terms of the Notes restrict our ability and the ability of certain of its subsidiaries to, among other things: incur additional indebtedness; create liens; pay dividends or make distributions in respect of capital stock; purchase or redeem capital stock; make investments or certain other restricted payments; sell assets; enter into transactions with stockholders or affiliates; or effect a consolidation or merger. However, these and other limitations set forth in the Indenture will be subject to a number of important qualifications and exceptions. | ||||||||||||
The Indenture provides for customary events of default which include (subject in certain cases to grace and cure periods), among others: nonpayment of principal or interest or premium; breach of covenants or other agreements in the Indenture; defaults in failure to pay certain other indebtedness; the failure to pay certain final judgments; the invalidity of certain of the Subsidiary Guarantors’ Guarantees; and certain events of bankruptcy, insolvency or reorganization. Generally, if an event of default occurs and is continuing under the Indenture, either the trustee or the holders of at least 25% in aggregate principal amount of the Notes then outstanding may declare the principal amount plus accrued and unpaid interest on the Notes to be immediately due and payable. | ||||||||||||
During the third quarter of 2013 we filed a registration statement in order to offer to exchange, up to $350.0 million in aggregate principal amount of registered 6.000% senior notes due 2019 ("Exchange notes"), for the same principal amount of our currently outstanding 6.000% senior notes ("Original notes"). The terms of the Exchange notes are substantially identical to the terms of the Original notes, except that the Exchange notes will generally be freely transferable and do not contain certain terms with respect to registration rights and liquidated damages. The registration statement was declared effective on October 7, 2013. During the fourth quarter of 2013 we completed the exchange of all of the Original notes with the Exchange notes. | ||||||||||||
Revolving Line of Credit and Term Loans | ||||||||||||
During the fourth quarter of 2013, we entered into the Supplement and Amendment to Second Amended and Restated Credit Agreement (the “Supplement and Amendment”) which amended our previous Credit Facility, entered into on July 15, 2011 (the "Previous Facility"). The Previous Facility provided for a five-year, $175.0 million term loan, a $450.0 million revolving line of credit and, subject to additional commitments from lenders, the option to increase the aggregate facility size by $250.0 million (the "Accordion") which could comprise additional term loans and a revolving line of credit. | ||||||||||||
Pursuant to the Supplement and Amendment, the Accordion was increased by $100.0 million to $350.0 million (the “Increased Accordion”) and the Company exercised the Increased Accordion with: (i) certain revolving lenders (the “Revolving Lenders”) agreeing to increase their commitments under the Revolving Line to an aggregate $600.0 million (the “Increased Revolving Line”); and (ii) the additional term facility lenders (the “Additional Term Facility Lenders”) agreeing to make available an additional term loan facility in the amount of $200.0 million (the “Additional Term Facility”). | ||||||||||||
Under the Supplement and Amendment, the terms and conditions applicable to the Increased Revolving Line shall remain generally the same as those of the Previous Facility. With regard to the Additional Term Facility, the terms shall remain generally the same as those of the Previous Facility, except that: (i) until the first business day following the date a compliance certificate is delivered under the Second Amended and Restated Credit Agreement for the fiscal quarter ending March 31, 2014, the applicable interest rates for loans under the Additional Term Facility shall be no less than those corresponding to Pricing Level 3 as provided in the Second Amended and Restated Credit Agreement; and (ii) the principal balance of the loans under the Additional Term Facility shall be payable on the following dates and in the following amounts (expressed as a percentage of the aggregate amount of the initial loans made under the Additional Term Facility): | ||||||||||||
Payment Date | Repayment Percentage Amount | |||||||||||
Last Business Day of March 2014 | 2.5 | % | ||||||||||
Last Business Day of June 2014 | 2.5 | % | ||||||||||
Last Business Day of September 2014 | 3.125 | % | ||||||||||
Last Business Day of December 2014 | 3.125 | % | ||||||||||
Last Business Day of March 2015 | 3.125 | % | ||||||||||
Last Business Day of June 2015 | 3.125 | % | ||||||||||
Last Business Day of September 2015 | 3.125 | % | ||||||||||
Last Business Day of December 2015 | 3.125 | % | ||||||||||
Last Business Day of March 2016 | 3.125 | % | ||||||||||
Last Business Day of June 2016 | 3.125 | % | ||||||||||
July 15, 2016 | Remaining Principal Balance | |||||||||||
The Credit Facility is secured by a first priority security interest in substantially all of our assets and the assets of our domestic subsidiaries, as well as a pledge of a substantial portion of certain equity interests in our subsidiaries. As of December 31, 2013, we were in compliance with the covenants of the Credit Facility. | ||||||||||||
On July 15, 2011, we borrowed $175.0 million under the Previous Facility term loan. On December 10, 2013, we borrowed $200.0 million under the Additional Term Facility. As of December 31, 2013, we had no outstanding borrowing on the revolving line of credit. The annual interest rate on the Credit Facility is variable, based on an index plus a margin determined by our consolidated net leverage ratio. The interest rate on amounts outstanding under the Credit Facility at December 31, 2013, was 1.81%. | ||||||||||||
The term loans are subject to mandatory debt repayments of the outstanding borrowings. The schedule of future principal repayments is as follows: | ||||||||||||
Dollars in thousands | Repayment Amount | |||||||||||
2014 | $ | 42,187 | ||||||||||
2015 | 46,875 | |||||||||||
2016 | 255,313 | |||||||||||
Total | $ | 344,375 | ||||||||||
Convertible Debt | ||||||||||||
The aggregate outstanding principal of our 4.0% Convertible Senior Notes (the “Convertible Notes”) is $51.1 million. The Convertible Notes bear interest at a fixed rate of 4.0% per annum, payable semi-annually in arrears on each March 1 and September 1, and mature on September 1, 2014. The effective interest rate at issuance was 8.5%. As of December 31, 2013, we were in compliance with all covenants. | ||||||||||||
The Convertible Notes become convertible (the “Conversion Event”) when the closing price of our common stock exceeds $52.38, 130% of the Convertible Notes’ conversion price, for at least 20 trading days during the 30 consecutive trading days prior to each quarter-end date. If the Convertible Notes become convertible and should the holders elect to convert, we will be required to pay them up to the full face value of the Convertible Notes in cash as well as deliver shares of our common stock for any excess conversion value. The number of potentially issued shares increases as the market price of our common stock increases. As of December 31, 2013, such early conversion event was met. As a result, the Convertible Notes were classified as a current liability and the debt conversion feature was classified as temporary equity on our Consolidated Balance Sheets. In the twelve months ended December 31, 2013, we retired a combined 133,835 Convertible Notes or $133.8 million in face value of Convertible Notes, through open market purchases and the note holders electing to convert, for $172.2 million in cash and the issuance of 272,336 shares of common stock. The amount by which the total consideration including cash paid and value of the shares issued exceeds the fair value of the Notes is recorded as a reduction of stockholders’ equity. The loss from early extinguishment of these Convertible Notes was approximately $6.0 million and is recorded in interest expense in our Consolidated Statements of Comprehensive Income. Additional details of our Convertible Notes are as follows: | ||||||||||||
Dollars in thousands | Principal | Discount | Net | |||||||||
Outstanding December 31, 2012 | $ | 184,983 | $ | (12,173 | ) | $ | 172,810 | |||||
Early extinguishments and debt conversion | (133,835 | ) | 6,861 | (126,974 | ) | |||||||
Amortization of discount | — | 3,866 | 3,866 | |||||||||
Outstanding December 31, 2013 | $ | 51,148 | $ | (1,446 | ) | $ | 49,702 | |||||
The following interest expense was related to our Convertible Notes: | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Contractual interest expense | $ | 3,873 | $ | 8,000 | $ | 8,000 | ||||||
Amortization of debt discount | 3,866 | 7,109 | 6,551 | |||||||||
Total interest expense related to the Convertible Notes | $ | 7,739 | $ | 15,109 | $ | 14,551 | ||||||
The remaining unamortized debt discount of $1.4 million is expected to be recognized as non-cash interest expense in 2014. | ||||||||||||
Interest Expense | ||||||||||||
Total interest expense including the loss on early retirement of debt was $37.1 million, $20.3 million and $26.0 million for the years ended December 31, 2013, 2012 and 2011 respectively. As of December 31, 2013, we were in compliance with all debt covenants. | ||||||||||||
Asset Retirement Obligation | ||||||||||||
We have entered into agreements with our partners to place kiosks in their stores. Upon contract terminations, we are obligated to remove the kiosks from the store locations and, accordingly, we recognize the estimated fair value of the liability under the long-term section of our liabilities in our Consolidated Balance Sheets. | ||||||||||||
Other Long-Term Liabilities | ||||||||||||
Included in other long-term liabilities were primarily tenant improvements related to our office building renovation in Oakbrook Terrace, Illinois and Bellevue, Washington as well as the related unrecognized tax benefits as follows: | ||||||||||||
Dollars in thousands | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Tenant improvement and deferred rent and other | $ | 9,301 | $ | 8,724 | ||||||||
Unrecognized tax benefit | 2,781 | 1,250 | ||||||||||
Total other long-term liabilities | $ | 12,082 | $ | 9,974 | ||||||||
Repurchases_of_Common_Stock
Repurchases of Common Stock | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Class of Stock Disclosures [Abstract] | ' | ||||||||||
Repurchases Of Common Stock [Text Block] | ' | ||||||||||
REPURCHASES OF COMMON STOCK | |||||||||||
Board Authorization | |||||||||||
On January 31, 2013, our Board of Directors approved an additional repurchase program of up to $250.0 million of our common stock plus the cash proceeds received from the exercise of stock options by our officers, directors, and employees. | |||||||||||
The following table presents a summary of our authorized stock repurchase balance: | |||||||||||
Dollars in thousands | Board Authorization | ||||||||||
Authorized repurchase - as of January 1, 2013 (1) | $ | 133,640 | |||||||||
Additional board authorization (1) | 250,000 | ||||||||||
Proceeds from the exercise of stock options | 12,655 | ||||||||||
Repurchase of common stock from open market | (95,004 | ) | |||||||||
Repurchase from Discounted Share Buyback Agreement ("DSB Agreement") | (100,000 | ) | |||||||||
Authorized repurchase - as of December 31, 2013 (1) | $ | 201,291 | |||||||||
-1 | In addition to these amounts, the repurchase program approved by our Board of Directors allows for the use of cash proceeds received from the exercise of stock options by our officers, directors, and employees. | ||||||||||
The following repurchases were made during the past three years, shares and dollars in thousands except per share price: | |||||||||||
Year Ended December 31, | Number of Shares | Average Price per Share | Total Purchase Price | ||||||||
Repurchased | |||||||||||
2011 | 1,374,036 | $ | 46.1 | $ | 63,349 | ||||||
2012 | 2,799,115 | 49.92 | 139,724 | ||||||||
2013 | 3,306,433 | 58.98 | 195,004 | ||||||||
Total | 7,479,584 | $ | 398,077 | ||||||||
Repurchased shares become a part of treasury stock. The shares tendered for tax withholding on vesting of restricted stock awards are excluded from the repurchase program approved by our Board. | |||||||||||
Credit Facility Requirements | |||||||||||
Under our Credit Facility, we are permitted to repurchase shares of our common stock without limitation, provided that we are in compliance with certain covenants required under the terms of the Credit Facility. See Note 8: Debt and Other Long-Term Liabilities for additional information about the terms of the Credit Facility. | |||||||||||
DSB Agreement | |||||||||||
On October 29, 2013 we entered into a DSB Agreement with Wells Fargo Securities at a notional amount of $100.0 million. The DSB Agreement was concluded on December 24, 2013. The total number of shares received under the DSB Agreement was determined based on the arithmetic mean of the daily volume weighted average price of our common stock minus discount over the term of the DSB Agreement. | |||||||||||
Share repurchase and amounts in thousands | Shares Delivered | ||||||||||
Total shares delivered from DSB Agreement | 1,514 | ||||||||||
Average price per share less discount | $ | 66.06 | |||||||||
Total repurchase amount from DSB Agreement | $ | 100,000 | |||||||||
Shares received from the DSB Agreement were recorded as treasury shares, resulting in a reduction of shares for our earnings per share calculations. |
ShareBased_Payments
Share-Based Payments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||
Share-Based Payments [Text Block] | ' | |||||||||||
SHARE-BASED PAYMENTS | ||||||||||||
We currently grant share-based awards to our employees, non-employee directors and consultants under our 2011 Incentive Plan (the “Plan”). The Plan permits the granting of stock options, restricted stock, restricted stock units, and performance-based restricted stock. | ||||||||||||
The following is the summary of grant information: | ||||||||||||
Shares in thousands | 31-Dec-13 | |||||||||||
Unissued common stock reserved for issuance under all plans | 1,532 | |||||||||||
Shares available for future grants | 1,284 | |||||||||||
Certain information regarding our share-based payments is as follows: | ||||||||||||
December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Share-based payments expense: | ||||||||||||
Share-based compensation - stock options | $ | 1,566 | $ | 2,654 | $ | 2,880 | ||||||
Share-based compensation - restricted stock | 10,504 | 10,593 | 7,100 | |||||||||
Share-based payments for content arrangements | 4,761 | 6,115 | 6,231 | |||||||||
Total share-based payments expense | $ | 16,831 | $ | 19,362 | $ | 16,211 | ||||||
Tax benefit on share-based payments expense | $ | 6,392 | $ | 7,246 | $ | 5,944 | ||||||
Per share weighted average grant date fair value of stock options granted | $ | 53.9 | $ | 27.24 | $ | 20.67 | ||||||
Per share weighted average grant date fair value of restricted stock granted | $ | 53.94 | $ | 55.94 | $ | 45.86 | ||||||
Total intrinsic value of stock options exercised | $ | 10,567 | $ | 10,509 | $ | 2,291 | ||||||
Grant date fair value of restricted stock vested | $ | 12,641 | $ | 11,648 | $ | 5,132 | ||||||
31-Dec-13 | ||||||||||||
Dollars in thousands | Unrecognized Share-Based Payments Expense | Weighted-Average Remaining Life | ||||||||||
Unrecognized share-based payments expense: | ||||||||||||
Share-based compensation - stock options | $ | 1,777 | 2.4 years | |||||||||
Share-based compensation - restricted stock | 18,175 | 2.3 years | ||||||||||
Share-based payments for content arrangements | 979 | 0.9 years | ||||||||||
Total unrecognized share-based payments expense | $ | 20,931 | ||||||||||
Share-Based Compensation | ||||||||||||
Stock options | ||||||||||||
Shares of common stock are issued upon exercise of stock options. Certain other information regarding our stock-based awards is as follows: | ||||||||||||
• | Stock options are granted only to our executives and non-employee directors. | |||||||||||
• | Options granted during the current year vest annually in equal installments over 4 years, and expire after 10 years. | |||||||||||
The following table summarizes the weighted average valuation assumptions we used in the Black-Scholes-Merton Valuation model for stock options granted during 2013: | ||||||||||||
31-Dec-13 | ||||||||||||
Expected term | 6.3 years | |||||||||||
Expected stock price volatility | 45.00% | |||||||||||
Risk-free interest rate | 1.90% | |||||||||||
Expected dividend yield | 0.00% | |||||||||||
The following table presents a summary of stock option activity for 2013: | ||||||||||||
Shares in thousands | Options | Weighted Average Exercise Price | ||||||||||
OUTSTANDING, December 31, 2012 | 669 | $ | 34.86 | |||||||||
Granted | 94 | $ | 53.9 | |||||||||
Exercised | (412 | ) | $ | 30.72 | ||||||||
Cancelled, expired, or forfeited | (103 | ) | $ | 42.65 | ||||||||
OUTSTANDING, December 31, 2013 | 248 | $ | 45.72 | |||||||||
Certain information regarding stock options outstanding as of December 31, 2013, is as follows: | ||||||||||||
Options | ||||||||||||
Shares and intrinsic value in thousands | Outstanding | Exercisable | ||||||||||
Number | 248 | 114 | ||||||||||
Weighted average per share exercise price | $ | 45.72 | $ | 38.88 | ||||||||
Aggregate intrinsic value | $ | 5,351 | $ | 3,237 | ||||||||
Weighted average remaining contractual term (in years) | 5.77 | 3.29 | ||||||||||
Restricted stock awards | ||||||||||||
Restricted stock awards are granted to eligible employees, including executives, and non-employee directors. Awards granted to employees and executives vest annually in equal installments over four years. Non-employee director awards vest one year after the grant date. Performance-based restricted stock awards are granted to executives only, with established performance criteria approved by the Compensation Committee of the Board of Directors. Awards of performance-based restricted stock made prior to 2013, once earned, vest in equal installments over three years from the date of grant. Awards of performance-based restricted stock made in 2013, once earned, vest in two installments over three years from the date of grant (65% of the award vests two years from the date of grant and the remaining 35% of the award vests three years from the date of grant). The restricted shares require no payment from the grantee. The fair value of performance-based awards is based on achieving specific performance conditions and is recognized over the vesting period. The fair value of non-performance-based awards is based on the market price on the grant date and is recognized on a straight-line basis over the vesting period. | ||||||||||||
The following table presents a summary of restricted stock award activity for 2013: | ||||||||||||
Shares in thousands | Restricted Stock Awards | Weighted Average Grant Date Fair Value | ||||||||||
NON-VESTED, December 31, 2012 | 604 | $ | 48.95 | |||||||||
Granted | 437 | $ | 53.94 | |||||||||
Vested | (230 | ) | $ | 46.58 | ||||||||
Forfeited | (214 | ) | $ | 51.56 | ||||||||
NON-VESTED, December 31, 2013 | 597 | $ | 52.58 | |||||||||
Share-Based Payments for Content Arrangements | ||||||||||||
We granted restricted stock as part of content license agreements with certain movie studios. The expense related to these agreements is included within direct operating expenses in our Consolidated Statements of Comprehensive Income and is adjusted based on the number of unvested shares and market price of our common stock each reporting period. | ||||||||||||
Information related to the shares of restricted stock granted as part of these agreements as of December 31, 2013, is as follows: | ||||||||||||
Granted | Vested | Unvested | Remaining | |||||||||
Vesting Period | ||||||||||||
Sony | 193,348 | 164,346 | 29,002 | 0.6 years | ||||||||
Paramount | 300,000 | 180,000 | 120,000 | 1.0 year | ||||||||
Total | 493,348 | 344,346 | 149,002 | |||||||||
Rights to Receive Cash | ||||||||||||
As a part of the acquisition of ecoATM, we issued replacement awards for unvested restricted stock and options in ecoATM with rights to receive cash equal to the per share merger consideration for restricted stock and net of the exercise price for options. The replacement awards vest in accordance with the terms of the original replaced award. The fair value of the original and replacement awards amounted to $32.1 million, $1.4 million of which was attributed to pre-combination services rendered and included in the calculation of total consideration transferred. The replacement awards are considered liability classified as they represent rights to receive cash. Expense associated with the post-combination awards will be recognized net of forfeitures, and cash payments will be made, in accordance with the awards' vesting schedule, generally on a monthly basis. See Note 3: Business Combinations for more information. We recognized $8.7 million in expense associated with the issuance of rights to receive cash for the twelve months ended December 31, 2013. The expected future recognition of expense associated with the rights to receive cash as of December 31, 2013 is as follows: | ||||||||||||
Dollars in thousands | Expense | |||||||||||
2014 | $ | 13,422 | ||||||||||
2015 | 4,911 | |||||||||||
2016 | 3,185 | |||||||||||
2017 | 561 | |||||||||||
Total expected expense | $ | 22,079 | ||||||||||
Restructuring
Restructuring | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Restructuring [Text Block] | ' | |||||||
RESTRUCTURING | ||||||||
During the fourth quarter of 2013, as a result of a comprehensive operational review, we committed to a restructuring plan intended to, among other things, better align our cost structure with revenue growth in our core businesses. As part of the plan, we discontinued three concepts in our New Ventures operating segment. Also as part of the restructuring plan, we implemented actions to reduce costs in our continuing operations primarily through workforce reductions across the Company. The closure of the three ventures and the workforce reductions are expected to be substantially complete by the end of the first quarter of 2014. See Note 13: Discontinued Operations and Sale of Business for further information. | ||||||||
The total amount expected to be incurred in connection with the restructuring, exclusive of asset impairments, and the amount incurred during the period ended December 31, 2013 by reportable segment (on an allocated basis) and expense type is as follows: | ||||||||
Dollars in thousands | Total Estimated Expense | Incurred through December 31, 2013 | ||||||
Redbox | ||||||||
Severance | $ | 3,820 | $ | 3,771 | ||||
Coinstar | ||||||||
Severance | 733 | 724 | ||||||
Discontinued Operations | ||||||||
Severance | 1,125 | 871 | ||||||
Other | 1,648 | 1,438 | ||||||
Total | $ | 7,326 | $ | 6,804 | ||||
A reconciliation of the beginning and ending liability balance by expense type is as follows: | ||||||||
Dollars in thousands | Severance Expense | Other expenses | ||||||
Beginning Balance - January 1, 2013 | $ | — | $ | — | ||||
Costs charged to expense | 5,366 | 1,438 | ||||||
Costs paid or otherwise settled | (2,858 | ) | (20 | ) | ||||
Ending Balance - December 31, 2013 | $ | 2,508 | $ | 1,418 | ||||
The line items in our Consolidated Statements of Comprehensive Income in which the expenses are recorded are as follows: | ||||||||
Dollars in thousands | Severance Expense | Other expenses | ||||||
General and administrative | $ | 4,495 | $ | — | ||||
Loss from discontinued operations, net of tax | 871 | 1,438 | ||||||
Total expense | $ | 5,366 | $ | 1,438 | ||||
Income_Taxes_from_Continuing_O
Income Taxes from Continuing Operations | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes from Continuing Operations [Text Block] | ' | |||||||||||
INCOME TAXES FROM CONTINUING OPERATIONS | ||||||||||||
Components of Income Taxes | ||||||||||||
The components of income(loss) from continuing operations before income taxes were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
U.S. operations | $ | 258,665 | $ | 262,695 | $ | 193,213 | ||||||
Foreign operations | (16,097 | ) | (4,302 | ) | 4,644 | |||||||
Total income from continuing operations before income taxes | $ | 242,568 | $ | 258,393 | $ | 197,857 | ||||||
Components of Income Tax Expense | ||||||||||||
The components of income tax expense from continuing operations were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Current: | ||||||||||||
U.S. Federal | $ | 39,272 | $ | — | $ | — | ||||||
State and local | 10,159 | 4,142 | 9,845 | |||||||||
Foreign | (424 | ) | 7 | 375 | ||||||||
Total current | 49,007 | 4,149 | 10,220 | |||||||||
Deferred: | ||||||||||||
U.S. Federal | (4,169 | ) | 87,375 | 63,453 | ||||||||
State and local | (5,726 | ) | 7,938 | 612 | ||||||||
Foreign | (4,635 | ) | (1,521 | ) | 638 | |||||||
Total deferred | (14,530 | ) | 93,792 | 64,703 | ||||||||
Total income tax expense | $ | 34,477 | $ | 97,941 | $ | 74,923 | ||||||
Rate Reconciliation | ||||||||||||
The income tax expense differs from the amount that would result by applying the U.S. statutory rate to income before income taxes as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S Federal tax expense at statutory rates | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 4.2 | % | 4 | % | 4.3 | % | ||||||
Federal and state credits | (0.9 | )% | (0.8 | )% | (0.6 | )% | ||||||
Recognition of Outside Basis Differences | (16.7 | )% | — | % | — | % | ||||||
Valuation Allowance | 2.4 | % | — | % | — | % | ||||||
Non-taxable gain related to acquisition of ecoATM | (10.0 | )% | — | % | — | % | ||||||
Other | 0.2 | % | (0.3 | )% | (0.9 | )% | ||||||
Effective tax rate | 14.2 | % | 37.9 | % | 37.8 | % | ||||||
During the fourth quarter of 2013, we reported a $16.7 million tax benefit related to the recognition of a worthless stock deduction from an outside basis difference in a corporate subsidiary. During the third quarter of 2013, we reported a $24.3 million tax benefit related to the non-taxable gain upon the re-measurement of our previously held equity interest in ecoATM. During the second quarter of 2013, we entered into an arrangement to sell certain NCR kiosks and a series of transactions to reorganize Redbox related subsidiary structures through the sale of a wholly owned subsidiary. As a result of the series of transactions we recorded a discrete one-time tax benefit of $17.8 million, net of a valuation allowance, through the realization of capital and ordinary gains and losses. The combined impact of these three items was a 24.3 percentage point reduction in the effective tax rate for the year ended December 31, 2013. In addition, our 2013 effective tax rate was increased by state income taxes. | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||
The aggregate changes in the balance of unrecognized tax benefits were as follows: | ||||||||||||
Dollars in thousands | Years ended December 31, | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance, beginning of the year | $ | 2,383 | $ | 2,455 | $ | 1,821 | ||||||
Additions based on tax positions related to the current year | 824 | — | 315 | |||||||||
Additions for tax positions related to prior years | 18 | 251 | 420 | |||||||||
Reductions for tax positions related to prior years | (257 | ) | (71 | ) | — | |||||||
Reductions from lapse of applicable statute of limitations | (49 | ) | (252 | ) | — | |||||||
Settlements | (138 | ) | — | (101 | ) | |||||||
Balance, end of year | $ | 2,781 | $ | 2,383 | $ | 2,455 | ||||||
At December 31, 2013, the unrecognized tax benefits were primarily related to R&D credit and income/expense recognition, all of which would have an effect on our effective tax rate if recognized. It was not necessary to accrue interest and penalties associated with the uncertain tax positions identified because operating loss carryforwards, tax credit carryforwards, and income tax payments on account were sufficient to offset all unrecognized tax benefits. | ||||||||||||
Tax Years Open for Examination | ||||||||||||
As of December 31, 2013 for our major tax jurisdictions, the years 2010 through 2012 were open for examination by U.S. Federal and most state tax authorities. Additionally, the years 1998 through 2009 are subject to examination, to the extent that net operating loss and income tax credit carryforwards from those years were utilized in 2010 and later years. | ||||||||||||
Jurisdiction | As of December 31, 2013 | |||||||||||
Open Tax Years | ||||||||||||
U.S. | 1998 through 2012 | |||||||||||
Deferred Income Taxes | ||||||||||||
Deferred income tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts used for income tax purposes. Future tax benefits for net operating loss and tax credit carryforwards are also recognized to the extent that realization of such benefits is more likely than not. | ||||||||||||
In determining our tax provisions, management determined the deferred tax assets and liabilities for each separate tax jurisdiction and considered a number of factors including the positive and negative evidence regarding the realization of our deferred tax assets to determine whether a valuation allowance should be recognized with respect to our deferred tax assets. | ||||||||||||
Significant components of our deferred tax assets and liabilities and the net increase (decrease) in the valuation allowance were as follows: | ||||||||||||
Dollars in thousands | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Income tax loss carryforwards | $ | 7,347 | $ | 20,356 | ||||||||
Capital loss carryforwards | 5,917 | — | ||||||||||
Credit carryforwards | 2,289 | 9,226 | ||||||||||
Accrued liabilities and allowances | 14,929 | 18,455 | ||||||||||
Stock-based compensation | 12,547 | 12,783 | ||||||||||
Intangible assets | 17,252 | 14,004 | ||||||||||
Investment basis | 3,968 | — | ||||||||||
Other | 2,148 | 6,175 | ||||||||||
Gross deferred tax assets | 66,397 | 80,999 | ||||||||||
Less: Valuation Allowance | (6,898 | ) | — | |||||||||
Total deferred tax assets | 59,499 | 80,999 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (93,407 | ) | (115,381 | ) | ||||||||
Product costs | (40,757 | ) | (36,837 | ) | ||||||||
Investment basis | — | (6,906 | ) | |||||||||
Convertible debt interest | (552 | ) | (5,066 | ) | ||||||||
Total deferred tax liabilities | (134,716 | ) | (164,190 | ) | ||||||||
Net deferred tax liabilities | $ | (75,217 | ) | $ | (83,191 | ) | ||||||
Change in Valuation Allowance | ||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Increase (decrease) in valuation allowance | $ | 6,898 | $ | — | $ | (8,947 | ) | |||||
The Increase in valuation allowance during 2013 was primarily related to capital loss carryforwards generated from the sale of a subsidiary. The remaining valuation allowances relate to state tax attributes acquired in the acquisition of EcoATM. | ||||||||||||
Deferred Tax Assets Relating to Income Tax Loss Carryforwards | ||||||||||||
Our deferred tax assets relating to income tax loss carryforwards and expiration periods are summarized as below: | ||||||||||||
Dollars in thousands | 31-Dec-13 | |||||||||||
Federal | State | Foreign | ||||||||||
Net operating loss carryforwards | $ | 4,109 | $ | 63,017 | $ | 10,540 | ||||||
Deferred tax assets related to net operating loss carryforwards | $ | 1,438 | $ | 3,151 | $ | 2,758 | ||||||
Years that net operating loss carryforwards will expire between | 2030 to 2034 | 2016 and 2030 | 2033 and 2034 | |||||||||
Based upon our projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not that we will realize the benefits of these deductible differences. | ||||||||||||
U.S. State Tax Credits and Expiration Periods | ||||||||||||
The following is the information pertaining to our U.S. state tax credits as well as the expiration periods: | ||||||||||||
Dollars in thousands | December 31, 2013 | |||||||||||
Amount | Expiration | |||||||||||
U.S state tax credits: | ||||||||||||
Illinois state tax credits | $ | 1,562 | 2016 to 2017 | |||||||||
California U.S. state tax credits | 727 | Do not expire | ||||||||||
Total U.S. state tax credits | $ | 2,289 | ||||||||||
On September 13, 2013, the Treasury Department and the Internal Revenue Service issued final regulations and re-proposed regulations that provide guidance with respect to the income tax treatment of materials and supplies, capitalization of amount paid to acquire or produce tangible property, the determination of whether an expenditure with respect to tangible property is a deductible repair or must be capitalized, and dispositions of tax depreciable property. The 2013 Regulations are generally effective for taxable years beginning on or after January 1, 2014. Taxpayers may early adopt any or all of the provisions of the 2013 Regulations. Additionally, taxpayers may make certain elections on amended returns for taxable years beginning on or after January 1, 2012, and ending before September 19, 2013. We do not anticipate that the final and re-proposed regulations will have a material impact on our financial statements. | ||||||||||||
We did not provide for U.S. income taxes on undistributed earnings of foreign operations because they were considered permanently invested outside of the U.S. Upon repatriation, some of these earnings would generate foreign tax credits, which may reduce the U.S. tax liability associated with any future foreign dividend. At December 31, 2013, the cumulative amount of earnings upon which U.S. income taxes have not been provided was approximately $15.6 million. |
Discontinued_Operations_and_Sa
Discontinued Operations and Sale of Business | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Discontinued Operations And Sale Of Business [Text Block] | ' | |||||||||||
DISCONTINUED OPERATIONS AND SALE OF BUSINESS | ||||||||||||
Discontinuation of Certain New Ventures | ||||||||||||
During the first quarter of 2013, we began exploring strategic alternatives for our New Ventures self-service concept for refurbished electronics called Orango. We determined that certain assets related to this concept would be sold or otherwise disposed of before the end of their previously established useful lives and estimated that their fair value less costs to sell utilizing a cash flow approach exceeded their carrying value. As a result, during the first quarter of 2013, we recognized charges of an impairment charge of $2.7 million and an inventory write-off of $0.5 million. We ceased Orango operations during the second quarter of 2013 and during the third quarter of 2013 based on then-current information, we estimated the fair value less costs to sell utilizing a cash flow approach was zero and recorded additional impairment charge of $2.6 million. During the fourth quarter we recorded an additional charge for Orango, included within the impairment table below. | ||||||||||||
During the fourth quarter of 2013, we discontinued three new venture concepts, Rubi, Crisp Market and Star Studio. The wind-down process is expected to be substantially complete by the end of the first quarter of 2014. | ||||||||||||
We have reclassified the results of operations of these four ventures to discontinued operations for all periods presented in our Consolidated Statements of Comprehensive Income. | ||||||||||||
As a result of the decision to discontinue the four concepts, for each concept we estimated the fair value of assets held utilizing a cash flow approach. For each of the concepts and for certain shared service assets used for the new ventures, we estimated the fair value of the assets was zero and recorded impairment charges for each concept. Total asset impairment charges related to the concepts and relevant shared service assets were as follows: | ||||||||||||
Dollars in thousands | Impairment Expense | |||||||||||
Rubi | $ | 21,317 | ||||||||||
Orango | 5,551 | |||||||||||
Crisp Market | 289 | |||||||||||
Star Studio | 2,786 | |||||||||||
Corporate assets utilized for discontinued concepts | 2,789 | |||||||||||
Total impairment expense | $ | 32,732 | ||||||||||
The results of the discontinued concepts, associated impairment and restructuring charges (see Note 11: Restructuring), net of tax, were recorded within Loss from discontinued operations, net of tax in our Consolidated Statements of Comprehensive Income. The discontinued concepts did not meet the criteria to be classified as held for sale and accordingly the assets and liabilities are not separately presented in our Consolidated Balance Sheets. | ||||||||||||
On June 9, 2011, we completed the sale transaction of the Money Transfer Business to Sigue Corporation (“Sigue”). We received $19.5 million in cash and a note receivable of $29.5 million (the “Sigue Note”). In December 2011, as part of the sale transaction, we were required to provide Sigue with an additional loan of $4.0 million under terms consistent with the Sigue Note. See Note 18: Fair Value for additional details about the Sigue Note. | ||||||||||||
On June 9, 2011, the sold assets and liabilities of the Money Transfer Business primarily consisted of the following (in thousands): | ||||||||||||
Dollars in thousands | June 9, 2011 | |||||||||||
Cash and cash equivalents | $ | 57,893 | ||||||||||
Accounts receivable, net | 33,185 | |||||||||||
Other current assets | 13,560 | |||||||||||
Property, plant and equipment, net | 4,066 | |||||||||||
Goodwill, intangible, and other assets | 8,162 | |||||||||||
Total assets | 116,866 | |||||||||||
Accounts payable and payable to agents | 65,464 | |||||||||||
Accrued liabilities | 13,062 | |||||||||||
Total liabilities | 78,526 | |||||||||||
Net assets sold | $ | 38,340 | ||||||||||
The net assets disposed represent the fair value less cost to sell the Money Transfer Business. The loss on disposal activities recognized in 2011 and 2010 was allocated to the asset disposal group including property, plant and equipment, net, intangible and other assets. | ||||||||||||
Summary Financial Information | ||||||||||||
The disposition and operating results of Rubi, Crisp Market, Orango and Star Studio, and the Money Transfer Business are presented in discontinued operations in our Consolidated Statements of Comprehensive Income for all periods presented. The continuing cash flows from Rubi, Crisp Market, Orango and Star Studio after discontinuation are expected to be insignificant and continuing cash flows from the discontinuation of the Money Transfer Business after disposition was insignificant. | ||||||||||||
The following table sets forth the components of discontinued operations included in our Consolidated Statements of Comprehensive Income: | ||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue: | ||||||||||||
Rubi, Crisp Market, Orango and Star Studio | $ | 4,399 | $ | 2,159 | $ | 1,326 | ||||||
Money Transfer Business | — | — | 47,716 | |||||||||
Total revenue | 4,399 | 2,159 | 49,042 | |||||||||
Pre-tax gain (loss) from discontinued operations: | ||||||||||||
Rubi, Crisp Market, Orango and Star Studio | (54,395 | ) | (16,647 | ) | (13,129 | ) | ||||||
Money Transfer Business | — | — | 654 | |||||||||
Total pre-tax gain (loss) from discontinued operations | (54,395 | ) | (16,647 | ) | (12,475 | ) | ||||||
Loss on disposal activities: | ||||||||||||
Rubi, Crisp Market, Orango and Star Studio | — | — | — | |||||||||
Money Transfer Business | — | — | (11,070 | ) | ||||||||
Total loss on disposal activities | — | — | (11,070 | ) | ||||||||
Loss from discontinued operations before income tax | (54,395 | ) | (16,647 | ) | (23,545 | ) | ||||||
Income tax benefit | 21,096 | 6,425 | 4,494 | |||||||||
Loss from discontinued operations, net of tax | $ | (33,299 | ) | $ | (10,222 | ) | $ | (19,051 | ) | |||
Amount of goodwill and other intangible assets disposed | $ | — | $ | — | $ | 8,037 | ||||||
Cash generated from the sale of discontinued operations | $ | — | $ | — | $ | 8,220 | ||||||
Included in income tax benefit from discontinued operations in 2011 was $4.1 million related to the estimated current value of a worthless stock deduction taken in 2009 in connection with our divestiture of the Entertainment Business, which was sold in the third quarter of 2009. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
EARNINGS PER SHARE | |||||||||
Basic earnings per share (“EPS”) is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing the net income for the period by the weighted average number of common and dilutive potential common shares outstanding during the period. We consider restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security. Net income available to participating securities was not material for the periods presented. | |||||||||
Net income used for calculating basic and diluted EPS is the same for all periods presented. The following table sets forth the computation of shares used for the basic and diluted EPS calculations: | |||||||||
Years Ended December 31, | |||||||||
In thousands | 2013 | 2012 | 2011 | ||||||
Weighted average shares used for basic EPS | 27,216 | 30,305 | 30,520 | ||||||
Dilutive effect of stock options and other share-based awards | 447 | 598 | 609 | ||||||
Dilutive effect of convertible debt | 718 | 1,271 | 740 | ||||||
Weighted average shares used for diluted EPS | 28,381 | 32,174 | 31,869 | ||||||
Stock options and share-based awards not included in diluted EPS calculation because their effect would be antidilutive | 14 | 139 | 108 | ||||||
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||
Other Comprehensive Income [Text Block] | ' | |||||||||||
OTHER COMPREHENSIVE INCOME | ||||||||||||
The following table presents the tax effects allocated to each component of other comprehensive income: | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||
Dollars in thousands | Before-Tax Amount | Tax (Expense) or Benefit | Net-of-Tax Amount | |||||||||
Foreign currency translation adjustment | $ | 856 | $ | — | $ | 856 | ||||||
Other comprehensive income | $ | 856 | $ | — | $ | 856 | ||||||
Year Ended December 31, 2012 | ||||||||||||
Dollars in thousands | Before-Tax Amount | Tax (Expense) or Benefit | Net-of-Tax Amount | |||||||||
Foreign currency translation adjustment | $ | 1,048 | $ | — | $ | 1,048 | ||||||
Other comprehensive income | $ | 1,048 | $ | — | $ | 1,048 | ||||||
Year Ended December 31, 2011 | ||||||||||||
Dollars in thousands | Before-Tax Amount | Tax (Expense) or Benefit | Net-of-Tax Amount | |||||||||
Foreign currency translation adjustment | $ | (255 | ) | $ | — | $ | (255 | ) | ||||
Reclassification of interest rate hedges to interest expense (1) | 896 | (349 | ) | 547 | ||||||||
Gain (loss) on short-term investment | (20 | ) | 7 | (13 | ) | |||||||
Other comprehensive income (loss) | $ | 621 | $ | (342 | ) | $ | 279 | |||||
-1 | At December 31, 2010 we had an interest rate swap agreement with Wells Fargo Bank to hedge against the variable-rate interest payments on our revolving Credit Facility which expired on March 20, 2011. At December 31, 2010 the fair value of this agreement was a liability of $0.9 million which was reversed from comprehensive income and recognized as interest expense in our Consolidated Statements of Comprehensive Income in the first quarter of 2011. |
Business_Segments_and_Enterpri
Business Segments and Enterprise-Wide Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Business Segments and Enterprise-Wide Information [Text Block] | ' | |||||||||||||||||||
BUSINESS SEGMENTS AND ENTERPRISE-WIDE INFORMATION | ||||||||||||||||||||
Management, including our chief operating decision maker, who is our CEO, evaluates the performances of our business segments primarily on segment revenue and segment operating income before depreciation, amortization and other, and share-based compensation granted to executives, non-employee directors and employees (“segment operating income”). Segment operating income contains internally allocated costs of our shared service support functions, including but not limited to, corporate executive management, business development, sales, finance, legal, human resources, information technology and risk management. We also review depreciation and amortization allocated to each segment. Shared-based payments expense related to share-based compensation granted to executives, non-employee directors and employees and expense related to the rights to receive cash issued in connection with our acquisition of ecoATM are not allocated to our segments and are included in the corporate unallocated column in the analysis and reconciliation below; however, share-based payments expense related to our content arrangements with certain movie studios has been allocated to our Redbox segment and is included within direct operating expenses. Our performance evaluation does not include segment assets. | ||||||||||||||||||||
On July 23, 2013, we completed the acquisition of ecoATM. Prior to July 23, 2013 we held a non-controlling equity interest in ecoATM and reported our share of ecoATM's operating results in income (loss) from equity method investments in our Consolidated Statements of Comprehensive Income. Subsequent to our acquisition of ecoATM on July 23, 2013, the assets acquired and liabilities assumed, as well as the results of operations, with the exception of expense for rights to receive cash which are unallocated corporate expenses, are included in our New Ventures segment as our chief operating decision maker reviews the results in aggregate with other new ventures concepts. During the second quarter of 2012, we completed the NCR Asset Acquisition. The assets acquired and liabilities assumed, as well as the results of operations, are included in our Redbox segment. See Note 3: Business Combinations for additional information about these acquisitions. | ||||||||||||||||||||
During the year ended December 31, 2013, we discontinued the Rubi, Crisp Market, Orango and Star Studio concepts and accordingly their results of operations were reclassified from the New Ventures segment to Loss from discontinued operations, net of tax in our Consolidated Statements of Comprehensive Income for all periods presented. See Note 13: Discontinued Operations and Sale of Business for further information. | ||||||||||||||||||||
Our analysis and reconciliation of our segment information to the consolidated financial statements that follows covers our results of operations, which consists of our Redbox, Coinstar and New Ventures segments. Unallocated general and administrative expenses relate to share-based compensation and expense related to the rights to receive cash issued in connection with our acquisition of ecoATM. | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Dollars in thousands | Redbox | Coinstar | New Ventures | Corporate Unallocated | Total | |||||||||||||||
Revenue | $ | 1,974,531 | $ | 300,218 | $ | 31,852 | $ | — | $ | 2,306,601 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 1,383,646 | 158,562 | 29,433 | 3,636 | 1,575,277 | |||||||||||||||
Marketing | 23,010 | 6,244 | 1,589 | 1,559 | 32,402 | |||||||||||||||
Research and development | 78 | 6,962 | 4,669 | 1,375 | 13,084 | |||||||||||||||
General and administrative | 166,117 | 25,944 | 15,551 | 14,164 | 221,776 | |||||||||||||||
Segment operating income (loss) | 401,680 | 102,506 | (19,390 | ) | (20,734 | ) | 464,062 | |||||||||||||
Less: depreciation, amortization and other | (162,637 | ) | (33,921 | ) | (6,536 | ) | — | (203,094 | ) | |||||||||||
Operating income (loss) | 239,043 | 68,585 | (25,926 | ) | (20,734 | ) | 260,968 | |||||||||||||
Loss from equity method investments, net | — | — | — | 19,928 | 19,928 | |||||||||||||||
Interest expense, net | — | — | — | (32,801 | ) | (32,801 | ) | |||||||||||||
Other, net | — | — | — | (5,527 | ) | (5,527 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes | $ | 239,043 | $ | 68,585 | $ | (25,926 | ) | $ | (39,134 | ) | $ | 242,568 | ||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Dollars in thousands | Redbox | Coinstar | New Ventures | Corporate Unallocated | Total | |||||||||||||||
Revenue | $ | 1,908,773 | $ | 290,761 | $ | 350 | $ | — | $ | 2,199,884 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 1,340,899 | 155,740 | 1,317 | 863 | 1,498,819 | |||||||||||||||
Marketing | 20,497 | 4,938 | 478 | 66 | 25,979 | |||||||||||||||
Research and development | 739 | 4,455 | 1,229 | 334 | 6,757 | |||||||||||||||
General and administrative | 159,885 | 26,367 | 6,283 | 11,984 | 204,519 | |||||||||||||||
Segment operating income (loss) | 386,753 | 99,261 | (8,957 | ) | (13,247 | ) | 463,810 | |||||||||||||
Less: depreciation, amortization and other | (148,068 | ) | (36,108 | ) | (229 | ) | — | (184,405 | ) | |||||||||||
Operating income (loss) | 238,685 | 63,153 | (9,186 | ) | (13,247 | ) | 279,405 | |||||||||||||
Loss from equity method investments, net | — | — | — | (5,184 | ) | (5,184 | ) | |||||||||||||
Interest expense, net | — | — | — | (15,648 | ) | (15,648 | ) | |||||||||||||
Other, net | — | — | — | (180 | ) | (180 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes | $ | 238,685 | $ | 63,153 | $ | (9,186 | ) | $ | (34,259 | ) | $ | 258,393 | ||||||||
Year Ended December, 2011 | ||||||||||||||||||||
Dollars in thousands | Redbox | Coinstar | New Ventures | Corporate Unallocated | Total | |||||||||||||||
Revenue | $ | 1,561,598 | $ | 282,382 | $ | 66 | $ | — | $ | 1,844,046 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 1,134,167 | 145,362 | 235 | 473 | 1,280,237 | |||||||||||||||
Marketing | 22,041 | 6,142 | 217 | 50 | 28,450 | |||||||||||||||
Research and development | 74 | 6,542 | 617 | 318 | 7,551 | |||||||||||||||
General and administrative | 120,384 | 23,370 | 4,529 | 9,139 | 157,422 | |||||||||||||||
Segment operating income (loss) | 284,932 | 100,966 | (5,532 | ) | (9,980 | ) | 370,386 | |||||||||||||
Less: depreciation, amortization and other | (115,430 | ) | (31,922 | ) | (20 | ) | — | (147,372 | ) | |||||||||||
Operating income (loss) | 169,502 | 69,044 | (5,552 | ) | (9,980 | ) | 223,014 | |||||||||||||
Loss from equity method investments, net | — | — | — | (1,591 | ) | (1,591 | ) | |||||||||||||
Interest expense, net | — | — | — | (23,822 | ) | (23,822 | ) | |||||||||||||
Other, net | — | — | — | 256 | 256 | |||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 169,502 | $ | 69,044 | $ | (5,552 | ) | $ | (35,137 | ) | $ | 197,857 | ||||||||
Significant Retailer Relationships | ||||||||||||||||||||
Our Redbox and Coinstar kiosks are primarily located within retailers. The following retailers accounted for 10.0% or more of our consolidated revenue: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Wal-Mart Stores Inc. | 15.3 | % | 16 | % | 17.5 | % | ||||||||||||||
Walgreen Co. | 14.6 | % | 16 | % | 16 | % | ||||||||||||||
The Kroger Company | 10 | % | 10.7 | % | 11.2 | % | ||||||||||||||
Revenue is allocated to geographic locations based on the location of the kiosk. Revenue by geographic location was as follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||||||||||
U.S. | $ | 2,254,790 | $ | 2,154,943 | $ | 1,801,025 | ||||||||||||||
All other | 51,811 | 44,941 | 43,021 | |||||||||||||||||
Total revenue | $ | 2,306,601 | $ | 2,199,884 | $ | 1,844,046 | ||||||||||||||
Long-lived assets by geographic location were as follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||||||||||
U.S. | $ | 1,146,616 | $ | 975,334 | $ | 798,840 | ||||||||||||||
All other | 43,774 | 30,884 | 17,007 | |||||||||||||||||
Total long-lived assets | $ | 1,190,390 | $ | 1,006,218 | $ | 815,847 | ||||||||||||||
Retirement_Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Retirement Plans [Text Block] | ' |
RETIREMENT PLANS | |
We sponsor a defined contribution plan for our employees who satisfy certain age and service requirements. Our Redbox subsidiary also sponsors a defined contribution plan to which new contributions were frozen effective January 1, 2010. Our contributions to these plans were $4.9 million, $4.0 million and $3.2 million in 2013, 2012 and 2011, respectively. |
Fair_Value
Fair Value | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value [Text Block] | ' | |||||||||||
FAIR VALUE | ||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs: | ||||||||||||
• | Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities; | |||||||||||
• | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; or | |||||||||||
• | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. | |||||||||||
The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. | ||||||||||||
Assets and Liabilities Measured and Reported at Fair Value on a Recurring Basis | ||||||||||||
The following table presents our financial assets and (liabilities) that are measured and reported at fair value in our Consolidated Balance Sheets on a recurring basis, by level within the fair value hierarchy (in thousands): | ||||||||||||
Fair Value at December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||
Money market demand accounts and investment grade fixed income securities | $ | 65,800 | $ | — | $ | — | ||||||
Fair Value at December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||
Money market demand accounts and investment grade fixed income securities | $ | 60,425 | $ | — | $ | — | ||||||
Money Market Demand Accounts and Investment Grade Fixed Income Securities | ||||||||||||
We determine fair value for our money market demand accounts and investment grade fixed income securities based on quoted market prices. The fair value of these assets is included in cash and cash equivalents on our Consolidated Balance Sheets. | ||||||||||||
Assets and Liabilities Measured and Reported at Fair Value on a Nonrecurring Basis | ||||||||||||
We recognize or disclose the fair value of certain assets such as notes receivable and non-financial assets, primarily long-lived assets, goodwill, intangible assets and certain other assets in connection with impairment evaluations. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. | ||||||||||||
Trademarks License | ||||||||||||
During the first quarter of 2012, Redbox granted the Joint Venture a limited, non-exclusive, non-transferable, royalty-free right and license to use certain Redbox trademarks. We estimated the fair value of the trademarks to be approximately $30.0 million as of the date of grant based on the relief-from-royalty method. We estimated the preliminary fair value using the information available on the grant date, which consisted of the expected future discounted and tax-effected cash flows attributable to the projected gross revenue stream of the Joint Venture, estimated market royalty rates of approximately 1.5%, as well as a discount rate of approximately 45.0%, which reflected our view of the risks and uncertainties associated with an early development stage entity. See Note 6: Equity Method Investments and Related Party Transactions. | ||||||||||||
Notes Receivable | ||||||||||||
On June 9, 2011, we completed the sale transaction of the Money Transfer Business to Sigue Corporation (“Sigue”). We received $19.5 million in cash and a note receivable of $29.5 million (the “Sigue Note”). In December 2011, as part of the sale transaction, we were required to provide Sigue with an additional loan of $4.0 million under terms consistent with the Sigue Note. We estimated the fair value of the Sigue Note based on the future note payments discounted at a market rate for similar risk profile companies, approximately 18.0%, which reflected our best estimate of default risk, and was not an exit price based measure of fair value or the stated value on the face of the Sigue Note. We evaluate the Sigue Note for collectability on a quarterly basis. Our evaluation at September 30, 2013 included consideration of ongoing discussions surrounding early payment on the note and certain indemnification obligations we have previously undertaken, as a result of our evaluation we did not record interest income on the note and also recorded a charge of $2.8 million against the note balance to arrive at a carrying value which approximated its estimated fair value and was reported within notes receivable in our Consolidated Balance Sheets. During the fourth quarter of 2013, we received $24.8 million in cash from Sigue for full settlement of the Sigue Note, interest and a release of certain indemnification claims. We recorded a benefit of $2.5 million from the release of indemnification related reserves. | ||||||||||||
Fair Value of Other Financial Instruments | ||||||||||||
The carrying value of our term loan approximates its fair value and falls under Level 2 of the fair value hierarchy. | ||||||||||||
We estimate the fair value of our convertible debt outstanding using a market rate of approximately 6.0% and 4.5% for similar high-yield debt at December 31, 2013, and December 31, 2012, respectively. The estimated fair value of our convertible debt was approximately $50.5 million and $183.7 million at December 31, 2013, and December 31, 2012, respectively, and was determined based on its stated terms, maturing on September 1, 2014, and an annual interest rate of 4.0%. The fair value estimate of our convertible debt falls under Level 3 of the fair value hierarchy. We have reported the carrying value of our convertible debt, face value less the unamortized debt discount, in our Consolidated Balance Sheets. | ||||||||||||
We estimated the fair value of our senior unsecured notes outstanding using a market rate of approximately 6.0% for similar high-yield debt at December 31, 2013. The estimated fair value of our senior unsecured notes was approximately $350.0 million at December 31, 2013, and was determined based on their stated terms, maturing on March 15, 2019, and an annual interest rate of 6.0%. The fair value estimate of our senior unsecured notes falls under Level 3 of the fair value hierarchy. We have reported the carrying value of our senior unsecured notes, issued at par, in our Consolidated Balance Sheets. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||
Commitments and Contingencies [Text Block] | ' | |||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||
Lease Commitments | ||||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||||
We lease our corporate administrative, marketing, and product development facilities in Bellevue, Washington under operating leases that expire December 31, 2019 and December 31, 2017. | ||||||||||||||||||||||||
We lease our Redbox facility in Oakbrook Terrace, Illinois under an operating lease that expires on July 31, 2021. Under certain circumstances, we have the ability to extend the lease for a five-year period, rent additional office space under a right of first offer and refusal and have the option to terminate the lease in July 2016. Under the terms of the lease, we are responsible for certain tax, construction and operating costs associated with the rented space. | ||||||||||||||||||||||||
We lease office space in San Diego, California for our ecoATM business under operating leases. These offices consist of an administrative facility and a temporary facility supporting administration, customer service and inventory processing. We also lease an unoccupied facility that will be renovated and will serve as a multi-purpose central location for the ecoATM business. The ecoATM offices currently occupy 93,597 square feet, and the two occupied buildings are under a lease that expires in 2015 and the multi-purpose facility is under lease through 2023. | ||||||||||||||||||||||||
Rent expense under our operating lease agreements was $12.3 million, $9.0 million and $8.9 million during 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||
Capital Leases | ||||||||||||||||||||||||
We lease automobiles and computer equipment under capital leases expiring at various dates through 2019. In most circumstances, we expect that, in the normal course of business, these leases will be renewed or replaced by other leases. | ||||||||||||||||||||||||
Assets held under capital leases are included in property and equipment, net on the Consolidated Balance Sheets and include the following: | ||||||||||||||||||||||||
Dollars in thousands | December 31, | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Gross property and equipment | $ | 48,992 | $ | 48,636 | ||||||||||||||||||||
Accumulated depreciation | (28,489 | ) | (18,974 | ) | ||||||||||||||||||||
Net property and equipment | $ | 20,503 | $ | 29,662 | ||||||||||||||||||||
As of December 31, 2013, our future minimum lease payments are as follows: | ||||||||||||||||||||||||
Dollars in thousands | Capital Leases | Operating Leases (1) | ||||||||||||||||||||||
2014 | $ | 12,640 | $ | 15,306 | ||||||||||||||||||||
2015 | 7,618 | 11,114 | ||||||||||||||||||||||
2016 | 1,462 | 8,765 | ||||||||||||||||||||||
2017 | 314 | 7,301 | ||||||||||||||||||||||
2018 | 168 | 6,228 | ||||||||||||||||||||||
Thereafter | 51 | 17,654 | ||||||||||||||||||||||
Total minimum lease commitments | 22,253 | $ | 66,368 | |||||||||||||||||||||
Less: amounts representing interest | (892 | ) | ||||||||||||||||||||||
Present value of capital lease obligations | 21,361 | |||||||||||||||||||||||
Less: Current portion of capital lease obligations | (11,997 | ) | ||||||||||||||||||||||
Long-term portion of capital lease obligations | $ | 9,364 | ||||||||||||||||||||||
-1 | Includes all operating leases having an initial or remaining non-cancelable lease term in excess of one year. | |||||||||||||||||||||||
Purchase commitments | ||||||||||||||||||||||||
We have entered into certain miscellaneous purchase agreements, primarily related to purchases of equipment, which resulted in total purchase commitments of $23.3 million as of December 31, 2013. | ||||||||||||||||||||||||
Pursuant to the manufacturing and services agreement entered into as part of the NCR Asset Acquisition, Outerwall, Redbox or an affiliate were committed to purchase goods and services from NCR for a period of five years from June 22, 2012. At the end of the five-year period, if the aggregate amount paid in margin to NCR for goods and services delivered were to equal less than $25.0 million, Outerwall was to pay NCR the difference between such aggregate amount and $25.0 million. As of December 31, 2013, our remaining commitment is $17.9 million under this arrangement. | ||||||||||||||||||||||||
Content License Agreements | ||||||||||||||||||||||||
We have entered into certain license agreements to obtain content for movie and video game rentals. A summary of the estimated commitments in relation to these agreements as of December 31, 2013 is presented in the following table: | ||||||||||||||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | |||||||||||||||||||||
Fox | $ | 121,452 | $ | 88,942 | $ | 32,510 | $ | — | ||||||||||||||||
Universal | 120,077 | 103,941 | 16,136 | — | ||||||||||||||||||||
Sony | 109,349 | 109,349 | — | — | ||||||||||||||||||||
Paramount | 99,214 | 99,214 | — | — | ||||||||||||||||||||
Warner | 90,953 | 85,608 | 5,345 | — | ||||||||||||||||||||
Lionsgate | 35,999 | 35,999 | — | — | ||||||||||||||||||||
Summit | 21,357 | 21,357 | — | — | ||||||||||||||||||||
Anchor Bay | 21,318 | 21,318 | — | — | ||||||||||||||||||||
Total estimated commitments | $ | 619,719 | $ | 565,728 | $ | 53,991 | $ | — | ||||||||||||||||
General terms of our content license agreements with studios are as follows as of December 31, 2013: | ||||||||||||||||||||||||
Studio | End Date | Release Date | ||||||||||||||||||||||
Sony | 9/30/14 | (1) | Day & Date | (2) | ||||||||||||||||||||
Warner | 12/31/14 | Delay | (3) | |||||||||||||||||||||
Fox | 4/21/15 | Delay | (3) | |||||||||||||||||||||
Paramount | 12/31/14 | (1) | Day & Date | (2) | ||||||||||||||||||||
Universal | 12/31/14 | (4) | Delay | (3) | ||||||||||||||||||||
Lionsgate | 8/31/14 | Day & Date | (2) | |||||||||||||||||||||
Summit | 12/31/14 | Day & Date | (2) | |||||||||||||||||||||
Anchor Bay | 12/31/14 | Day & Date | (2) | |||||||||||||||||||||
-1 | Agreement includes, at the studio’s sole discretion, the option for two one-year extensions following the end date. | |||||||||||||||||||||||
-2 | Content licensed under the agreement is available for rental on the same day and date as the retail release. | |||||||||||||||||||||||
-3 | Content licensed under the agreement is available for rental after a certain number of days following the retail release. | |||||||||||||||||||||||
-4 | Agreement includes, at the studio’s sole discretion, the option a one-year extensions following the end date. | |||||||||||||||||||||||
Revenue Share Commitments | ||||||||||||||||||||||||
Certain of our Retailer agreements include minimum revenue share commitments through the term of the arrangement. Our minimum commitments under these agreements are presented in the following table: | ||||||||||||||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Redbox | $ | 35,932 | $ | 30,158 | $ | 2,794 | $ | 2,290 | $ | 552 | $ | 138 | ||||||||||||
Coinstar | 1,667 | 1,667 | — | — | — | — | ||||||||||||||||||
New Venture | 108 | 108 | — | — | — | — | ||||||||||||||||||
Total minimum commitments | $ | 37,707 | $ | 31,933 | $ | 2,794 | $ | 2,290 | $ | 552 | $ | 138 | ||||||||||||
Letters of Credit | ||||||||||||||||||||||||
As of December 31, 2013, we had six irrevocable standby letters of credit that totaled $8.6 million. These standby letters of credit, which expire at various times through 2014, are used to collateralize certain obligations to third parties. As of December 31, 2013, no amounts were outstanding under these standby letter of credit agreements. | ||||||||||||||||||||||||
Legal Matters | ||||||||||||||||||||||||
In October 2009, an Illinois resident, Laurie Piechur, individually and on behalf of all others similarly situated, filed a putative class action complaint against our Redbox subsidiary in the Circuit Court for the Twentieth Judicial Circuit, St. Clair County, Illinois. The plaintiff alleged that, among other things, Redbox charges consumers illegal and excessive late fees in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, and that Redbox's rental terms violate the Illinois Rental Purchase Agreement Act or the Illinois Automatic Contract Renewal Act and the plaintiff is seeking monetary damages and other relief. In November 2009, Redbox removed the case to the U.S. District Court for the Southern District of Illinois. In February 2010, the District Court remanded the case to the Circuit Court for the Twentieth Judicial Circuit, St. Clair County, Illinois. In May 2010, the court denied Redbox's motion to dismiss the plaintiff's complaint. In November 2011, the plaintiff moved for class certification, and Redbox moved for summary judgment. The court denied Redbox's motion for summary judgment in February 2012. The plaintiff filed an amended complaint on April 19, 2012, and an amended motion for class certification on June 5, 2012. The court denied Redbox's motion to dismiss the amended complaint. The amended class certification motion was briefed and argued. At the hearing on plaintiff's amended motion for class certification, the plaintiff dismissed all claims but two and is pursuing only her claims under the Illinois Rental Purchase Agreement Act and the Illinois Automatic Contract Renewal Act. On May 21, 2013, the court denied plaintiff's amended class action motion. On January 29, 2014, the Illinois Supreme Court denied plaintiff’s petition for leave to appeal the trial court’s denial of class certification. We believe that the claims against us are without merit and intend to defend ourselves vigorously in this matter. Currently, no accrual has been established as it was not possible to estimate the possible loss or range of loss because this matter had not advanced to a stage where we could make any such estimate. | ||||||||||||||||||||||||
In March 2011, a California resident, Blake Boesky, individually and on behalf of all others similarly situated, filed a putative class action complaint against our Redbox subsidiary in the U.S. District Court for the Northern District of Illinois. The plaintiff alleges that Redbox retains personally identifiable information of consumers for a time period in excess of that allowed under the Video Privacy Protection Act, 18 U.S.C. §§ 2710, et seq. A substantially similar complaint was filed in the same court in March 2011 by an Illinois resident, Kevin Sterk. Since the filing of the complaint, Blake Boesky has been replaced by a different named plaintiff, Jiah Chung, and an amended complaint has been filed alleging disclosures of personally identifiable information, in addition to plaintiffs' claims of retention of such information. Plaintiffs are seeking statutory damages, injunctive relief, attorneys' fees, costs of suit, and interest. The court has consolidated the cases. The court denied Redbox's motion to dismiss the plaintiffs' claims upon interlocutory appeal. The U.S. Court of Appeals for the Seventh Circuit reversed the district court's denial of Redbox's motion to dismiss plaintiff's claims involving retention of information, holding that the plaintiffs could not maintain a suit for damages under this theory. On April 25, 2012, the plaintiffs amended their complaint to add claims under the Stored Communications Act, 18 U.S.C. § 2707, and for breach of contract. On May 9, 2012, Redbox moved to dismiss the amended complaint. On July 23, 2012, the court dismissed the added retention claims, except to the extent that plaintiffs seek injunctive, non-monetary relief. On August 16, 2013, the court granted summary judgment in Redbox's favor on all remaining claims, and entered a final judgment for Redbox. On September 16, 2013, plaintiff filed a notice of appeal. Pursuant to Seventh Circuit Rule 33, the case was referred for a Prehearing Conference, and briefing of the appeal is suspended pending further court order. We believe that the claims against us are without merit and intend to defend ourselves vigorously in this matter. Currently, no accrual has been established as it is not possible to estimate the possible loss or range of loss because this matter had not advanced to a stage where we could make any such estimate. | ||||||||||||||||||||||||
In February 2011, a California resident, Michael Mehrens, individually and on behalf of all others similarly situated, filed a putative class action complaint against our Redbox subsidiary in the Superior Court of the State of California, County of Los Angeles. The plaintiff alleges that, among other things, Redbox violated California's Song-Beverly Credit Card Act of 1971 (“Song-Beverly”) with respect to the collection and recording of consumer personal identification information, and violated the California Business and Professions Code § 17200 based on the alleged violation of Song-Beverly. A similar complaint alleging violations of Song-Beverly and the right to privacy generally was filed in March 2011 in the Superior Court of the State of California, County of Alameda, by a California resident, John Sinibaldi. A third similar complaint alleging only a violation of Song-Beverly, was filed in March 2011 in the Superior Court of the State of California, County of San Diego, by a California resident, Richard Schiff. Plaintiffs are seeking compensatory damages and civil penalties, injunctive relief, attorneys' fees, costs of suit, and interest. Redbox removed the Mehrens case to the U.S. District Court for the Central District of California, the Sinibaldi case to the U.S. District Court for the Northern District of California, and the Schiff case to the U.S. District Court for the Southern District of California. The Sinibaldi case was subsequently transferred to the U.S. District Court for the Central District of California, where the Mehrens case is pending, and these two cases have been consolidated. At the same time, the plaintiffs substituted Nicolle DiSimone as the named plaintiff in the Mehrens case. After Redbox filed a motion to dismiss, stay, or transfer, the Schiff case was transferred to the U.S. District Court for the Central District of California. On January 4, 2013, the Court dismissed with prejudice the Schiff case for failure to prosecute and failure to comply with court rules and orders. Redbox moved to dismiss the DiSimone/Sinibaldi case, and DiSimone/Sinibaldi moved for class certification. In January 2012, the Court granted Redbox's motion to dismiss with prejudice and denied DiSimone/Sinibaldi's motion for class certification as moot. On February 2, 2012, Plaintiffs filed their notice of appeal. After a stay pending the California Supreme Court's decision in a case presenting similar issues involving Song-Beverly in a case to which Redbox is not a party, Plaintiffs filed their opening brief on April 15, 2013. The matter is fully briefed, and oral argument occurred on January 8, 2014. We believe that the claims against us are without merit and intend to defend ourselves vigorously in this matter. Currently, no accrual has been established as it is not possible to estimate the possible loss or range of loss because this matter had not advanced to a stage where we could make any such estimate. | ||||||||||||||||||||||||
Other Contingencies | ||||||||||||||||||||||||
During the year ended December 31, 2013, we resolved a previously disclosed loss contingency related to a supply agreement and recognized a benefit of $11.4 million included in direct operating expense in our Consolidated Statements of Comprehensive Income. |
Guarantor_Subsidiaries
Guarantor Subsidiaries | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Guarantor Subsidiaries Disclosure [Abstract] | ' | |||||||||||||||||||
Guarantor Subsidiaries [Text Block] | ' | |||||||||||||||||||
GUARANTOR SUBSIDIARIES | ||||||||||||||||||||
Certain of our wholly-owned subsidiaries have, jointly and severally, fully and unconditionally guaranteed the Senior Notes. Pursuant to SEC regulations, we have presented in columnar format the condensed consolidating financial information for Outerwall Inc., the guarantor subsidiaries on a combined basis, and all non-guarantor subsidiaries on a combined basis in the following tables: | ||||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 315,250 | $ | 9,639 | $ | 46,548 | $ | — | $ | 371,437 | ||||||||||
Accounts receivable, net of allowances | 2,029 | 45,672 | 2,595 | — | 50,296 | |||||||||||||||
Content library | 37 | 196,695 | 3,136 | — | 199,868 | |||||||||||||||
Deferred income taxes | 12,152 | — | 8 | (12,149 | ) | 11 | ||||||||||||||
Prepaid expenses and other current assets | 55,512 | 28,234 | 952 | — | 84,698 | |||||||||||||||
Intercompany receivables | 180,100 | 355,418 | 5,093 | (540,611 | ) | — | ||||||||||||||
Total current assets | 565,080 | 635,658 | 58,332 | (552,760 | ) | 706,310 | ||||||||||||||
Property and equipment, net | 163,747 | 320,296 | 36,822 | — | 520,865 | |||||||||||||||
Deferred income taxes | — | — | 6,412 | 31 | 6,443 | |||||||||||||||
Goodwill and other intangible assets | 251,150 | 387,540 | — | — | 638,690 | |||||||||||||||
Other long-term assets | 12,473 | 11,499 | 420 | — | 24,392 | |||||||||||||||
Investment in related parties | 815,243 | 4,825 | — | (820,068 | ) | — | ||||||||||||||
Total assets | $ | 1,807,693 | $ | 1,359,818 | $ | 101,986 | $ | (1,372,797 | ) | $ | 1,896,700 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 17,336 | $ | 215,703 | $ | 2,979 | $ | — | $ | 236,018 | ||||||||||
Accrued payable to retailers | 71,085 | 48,126 | 14,929 | — | 134,140 | |||||||||||||||
Other accrued liabilities | 59,444 | 71,607 | 3,076 | — | 134,127 | |||||||||||||||
Current callable convertible debt | 49,702 | — | — | — | 49,702 | |||||||||||||||
Current portion of long-term debt and other | 42,187 | 3 | — | — | 42,190 | |||||||||||||||
Current portion of capital lease obligations | 11,630 | — | 367 | — | 11,997 | |||||||||||||||
Deferred income taxes | — | 35,292 | — | (12,149 | ) | 23,143 | ||||||||||||||
Intercompany payables | 315,615 | 154,565 | 70,432 | (540,612 | ) | — | ||||||||||||||
Total current liabilities | 566,999 | 525,296 | 91,783 | (552,761 | ) | 631,317 | ||||||||||||||
Long-term debt and other long-term liabilities | 658,032 | 18,748 | 576 | — | 677,356 | |||||||||||||||
Capital lease obligations | 8,912 | — | 452 | — | 9,364 | |||||||||||||||
Deferred income taxes | 45,307 | 13,190 | — | 31 | 58,528 | |||||||||||||||
Total liabilities | 1,279,250 | 557,234 | 92,811 | (552,730 | ) | 1,376,565 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Debt conversion feature | 1,446 | — | — | — | 1,446 | |||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 596,995 | 225,016 | 12,393 | (351,923 | ) | 482,481 | ||||||||||||||
Treasury stock | (476,796 | ) | — | — | — | (476,796 | ) | |||||||||||||
Retained earnings | 407,959 | 577,568 | (3,612 | ) | (468,144 | ) | 513,771 | |||||||||||||
Accumulated other comprehensive loss | (1,161 | ) | — | 394 | — | (767 | ) | |||||||||||||
Total stockholders’ equity | 526,997 | 802,584 | 9,175 | (820,067 | ) | 518,689 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,807,693 | $ | 1,359,818 | $ | 101,986 | $ | (1,372,797 | ) | $ | 1,896,700 | |||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 242,489 | $ | — | $ | 40,759 | $ | (354 | ) | $ | 282,894 | |||||||||
Accounts receivable, net of allowances | 887 | 56,293 | 1,151 | — | 58,331 | |||||||||||||||
Content library | 1,130 | 173,339 | 2,940 | — | 177,409 | |||||||||||||||
Deferred income taxes | 27,372 | — | 899 | (21,084 | ) | 7,187 | ||||||||||||||
Prepaid expenses and other current assets | 11,748 | 17,504 | 434 | — | 29,686 | |||||||||||||||
Intercompany receivables | 119,848 | 76,878 | 3,581 | (200,307 | ) | — | ||||||||||||||
Total current assets | 403,474 | 324,014 | 49,764 | (221,745 | ) | 555,507 | ||||||||||||||
Property and equipment, net | 188,251 | 368,620 | 29,253 | — | 586,124 | |||||||||||||||
Notes receivable | 26,731 | — | — | — | 26,731 | |||||||||||||||
Deferred income taxes | — | — | 1,334 | 39 | 1,373 | |||||||||||||||
Goodwill and other intangible assets | 253,395 | 90,614 | — | 54 | 344,063 | |||||||||||||||
Other long-term assets | 18,992 | 28,906 | 29 | — | 47,927 | |||||||||||||||
Investment in related parties | 90,828 | 24,395 | — | (115,223 | ) | — | ||||||||||||||
Total assets | $ | 981,671 | $ | 836,549 | $ | 80,380 | $ | (336,875 | ) | $ | 1,561,725 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 21,368 | $ | 225,463 | $ | 4,111 | $ | (354 | ) | $ | 250,588 | |||||||||
Accrued payable to retailers | 77,266 | 46,493 | 14,654 | — | 138,413 | |||||||||||||||
Other accrued liabilities | 50,314 | 92,724 | 3,087 | — | 146,125 | |||||||||||||||
Current portion of long-term debt and other | 15,312 | 217 | — | — | 15,529 | |||||||||||||||
Current portion of capital lease obligations | 13,002 | — | 348 | — | 13,350 | |||||||||||||||
Deferred income taxes | — | 21,084 | — | (21,084 | ) | — | ||||||||||||||
Intercompany payables | 56,473 | 108,347 | 35,487 | (200,307 | ) | — | ||||||||||||||
Total current liabilities | 233,735 | 494,328 | 57,687 | (221,745 | ) | 564,005 | ||||||||||||||
Long-term debt and other long-term liabilities | 322,279 | 18,724 | 176 | — | 341,179 | |||||||||||||||
Capital lease obligations | 15,180 | — | 522 | — | 15,702 | |||||||||||||||
Deferred income taxes | 54,855 | 36,857 | — | 39 | 91,751 | |||||||||||||||
Total liabilities | 626,049 | 549,909 | 58,385 | (221,706 | ) | 1,012,637 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 574,842 | 145,425 | 12,444 | (227,830 | ) | 504,881 | ||||||||||||||
Treasury stock | (293,149 | ) | — | — | — | (293,149 | ) | |||||||||||||
Retained earnings | 74,985 | 141,215 | 10,118 | 112,661 | 338,979 | |||||||||||||||
Accumulated other comprehensive loss | (1,056 | ) | — | (567 | ) | — | (1,623 | ) | ||||||||||||
Total stockholders’ equity | 355,622 | 286,640 | 21,995 | (115,169 | ) | 549,088 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 981,671 | $ | 836,549 | $ | 80,380 | $ | (336,875 | ) | $ | 1,561,725 | |||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Revenue | $ | 255,251 | $ | 1,999,539 | $ | 51,811 | $ | — | $ | 2,306,601 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 138,859 | 1,394,932 | 54,433 | (12,947 | ) | 1,575,277 | ||||||||||||||
Marketing | 6,540 | 23,269 | 2,593 | — | 32,402 | |||||||||||||||
Research and development | 8,973 | 4,111 | — | — | 13,084 | |||||||||||||||
General and administrative | 33,747 | 171,505 | 3,569 | 12,955 | 221,776 | |||||||||||||||
Depreciation and other | 28,101 | 158,801 | 5,259 | — | 192,161 | |||||||||||||||
Amortization of intangible assets | 2,245 | 8,688 | — | — | 10,933 | |||||||||||||||
Total expenses | 218,465 | 1,761,306 | 65,854 | 8 | 2,045,633 | |||||||||||||||
Operating income (loss) | 36,786 | 238,233 | (14,043 | ) | (8 | ) | 260,968 | |||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Income (loss) from equity method investments, net | 65,063 | (45,135 | ) | — | — | 19,928 | ||||||||||||||
Interest expense, net | (32,930 | ) | 257 | (128 | ) | — | (32,801 | ) | ||||||||||||
Other, net | (3,868 | ) | 258 | (1,925 | ) | 8 | (5,527 | ) | ||||||||||||
Total other income (expense), net | 28,265 | (44,620 | ) | (2,053 | ) | 8 | (18,400 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | 65,051 | 193,613 | (16,096 | ) | — | 242,568 | ||||||||||||||
Income tax benefit (expense) | 30,893 | (70,429 | ) | 5,059 | — | (34,477 | ) | |||||||||||||
Income from continuing operations | 95,944 | 123,184 | (11,037 | ) | — | 208,091 | ||||||||||||||
Loss from discontinued operations, net of tax | (30,834 | ) | (2,465 | ) | — | — | (33,299 | ) | ||||||||||||
Equity in income (loss) of subsidiaries | 109,682 | (11,037 | ) | — | (98,645 | ) | — | |||||||||||||
Net Income (loss) | 174,792 | 109,682 | (11,037 | ) | (98,645 | ) | 174,792 | |||||||||||||
Foreign currency translation adjustment(1) | (105 | ) | — | 961 | — | 856 | ||||||||||||||
Comprehensive income (loss) | $ | 174,687 | $ | 109,682 | $ | (10,076 | ) | $ | (98,645 | ) | $ | 175,648 | ||||||||
-1 | Foreign currency translation adjustment had no tax effect in 2013. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Revenue | $ | 247,906 | $ | 1,907,037 | $ | 44,941 | $ | — | $ | 2,199,884 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 137,092 | 1,334,227 | 45,838 | (18,338 | ) | 1,498,819 | ||||||||||||||
Marketing | 5,020 | 18,676 | 2,283 | — | 25,979 | |||||||||||||||
Research and development | 6,018 | 739 | — | — | 6,757 | |||||||||||||||
General and administrative | 23,442 | 161,814 | 931 | 18,332 | 204,519 | |||||||||||||||
Depreciation and other | 30,716 | 144,805 | 3,506 | — | 179,027 | |||||||||||||||
Amortization of intangible assets | 2,346 | 3,032 | — | — | 5,378 | |||||||||||||||
Total expenses | 204,634 | 1,663,293 | 52,558 | (6 | ) | 1,920,479 | ||||||||||||||
Operating income (loss) | 43,272 | 243,744 | (7,617 | ) | 6 | 279,405 | ||||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Loss from equity method investments, net | (2,179 | ) | (3,005 | ) | — | — | (5,184 | ) | ||||||||||||
Interest income (expense), net | (18,161 | ) | 2,554 | (41 | ) | — | (15,648 | ) | ||||||||||||
Other, net | 98 | (264 | ) | (8 | ) | (6 | ) | (180 | ) | |||||||||||
Total other income (expense), net | (20,242 | ) | (715 | ) | (49 | ) | (6 | ) | (21,012 | ) | ||||||||||
Income (loss) from continuing operations before income taxes | 23,030 | 243,029 | (7,666 | ) | — | 258,393 | ||||||||||||||
Income tax benefit (expense) | (5,518 | ) | (93,734 | ) | 1,311 | — | (97,941 | ) | ||||||||||||
Income (loss) from continuing operations | 17,512 | 149,295 | (6,355 | ) | — | $ | 160,452 | |||||||||||||
Loss from discontinued operations, net of tax | (8,609 | ) | (1,613 | ) | — | — | $ | (10,222 | ) | |||||||||||
Equity in income (loss) of subsidiaries | 141,327 | (6,355 | ) | — | (134,972 | ) | — | |||||||||||||
Net income (loss) | 150,230 | 141,327 | (6,355 | ) | (134,972 | ) | 150,230 | |||||||||||||
Foreign currency translation adjustment(1) | (196 | ) | — | 1,244 | — | 1,048 | ||||||||||||||
Comprehensive income (loss) | $ | 150,034 | $ | 141,327 | $ | (5,111 | ) | $ | (134,972 | ) | $ | 151,278 | ||||||||
-1 | Foreign currency translation adjustment had no tax effect in 2012. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Revenue | $ | 239,043 | $ | 1,561,982 | $ | 43,021 | $ | — | $ | 1,844,046 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 123,975 | 1,135,194 | 24,621 | (3,553 | ) | 1,280,237 | ||||||||||||||
Marketing | 5,784 | 22,300 | 366 | — | 28,450 | |||||||||||||||
Research and development | 7,466 | 85 | — | — | 7,551 | |||||||||||||||
General and administrative | 19,554 | 125,358 | 8,957 | 3,553 | 157,422 | |||||||||||||||
Depreciation and other | 25,524 | 116,106 | 3,002 | — | 144,632 | |||||||||||||||
Amortization of intangible assets | 2,548 | 192 | — | — | 2,740 | |||||||||||||||
Total expenses | 184,851 | 1,399,235 | 36,946 | — | 1,621,032 | |||||||||||||||
Operating income | 54,192 | 162,747 | 6,075 | — | 223,014 | |||||||||||||||
Other income (expense): | ||||||||||||||||||||
Loss from equity method investments, net | (1,591 | ) | — | — | — | (1,591 | ) | |||||||||||||
Interest expense, net | (21,564 | ) | (2,245 | ) | (13 | ) | — | (23,822 | ) | |||||||||||
Other, net | (1,179 | ) | 316 | 1,119 | — | 256 | ||||||||||||||
Total other income (expense) | (24,334 | ) | (1,929 | ) | 1,106 | — | (25,157 | ) | ||||||||||||
Income from continuing operations before income taxes | 29,858 | 160,818 | 7,181 | — | 197,857 | |||||||||||||||
Income tax expense | (9,901 | ) | (64,123 | ) | (899 | ) | — | (74,923 | ) | |||||||||||
Income from continuing operations | 19,957 | 96,695 | 6,282 | — | 122,934 | |||||||||||||||
Income (loss) from discontinued operations, net of tax | (19,164 | ) | 177 | (64 | ) | — | (19,051 | ) | ||||||||||||
Equity in income (loss) of subsidiaries | 103,090 | 5,149 | — | (108,239 | ) | — | ||||||||||||||
Net income (loss) | 103,883 | 102,021 | 6,218 | (108,239 | ) | 103,883 | ||||||||||||||
Other comprehensive income (Note 15): | ||||||||||||||||||||
Foreign currency translation adjustment(1) | 320 | (102 | ) | (376 | ) | (97 | ) | (255 | ) | |||||||||||
Reclassification of interest rate hedges to interest expense | 896 | — | — | — | 896 | |||||||||||||||
Loss on short-term investments | (20 | ) | — | — | — | (20 | ) | |||||||||||||
Income tax expense related to items of other comprehensive income | (342 | ) | — | — | — | (342 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | 854 | (102 | ) | (376 | ) | (97 | ) | 279 | ||||||||||||
Comprehensive income | $ | 104,737 | $ | 101,919 | $ | 5,842 | $ | (108,336 | ) | $ | 104,162 | |||||||||
-1 | Foreign currency translation adjustment had no tax effect in 2011. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income | $ | 174,792 | $ | 109,682 | $ | (11,037 | ) | $ | (98,645 | ) | $ | 174,792 | ||||||||
Adjustments to reconcile net income to net cash flows: | ||||||||||||||||||||
Depreciation and other | 29,640 | 158,801 | 5,259 | — | 193,700 | |||||||||||||||
Amortization of intangible assets and deferred financing fees | 4,773 | 8,688 | — | — | 13,461 | |||||||||||||||
Share-based payments expense | 9,903 | 6,928 | — | — | 16,831 | |||||||||||||||
Excess tax benefits on share-based payments | (3,698 | ) | — | — | — | (3,698 | ) | |||||||||||||
Deferred income taxes | 9,228 | (15,727 | ) | (4,434 | ) | — | (10,933 | ) | ||||||||||||
Impairment expense(1) | 32,444 | 288 | — | — | 32,732 | |||||||||||||||
(Income) loss from equity method investments, net | (65,063 | ) | 45,135 | — | — | (19,928 | ) | |||||||||||||
Non-cash interest on convertible debt | 3,866 | — | — | — | 3,866 | |||||||||||||||
Loss from extinguishments of callable convertible debt | 6,013 | — | — | — | 6,013 | |||||||||||||||
Other | 827 | (2,951 | ) | 31 | 54 | (2,039 | ) | |||||||||||||
Equity in (income) losses of subsidiaries | (109,682 | ) | 11,037 | — | 98,645 | — | ||||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | (1,144 | ) | 10,639 | (1,517 | ) | — | 7,978 | |||||||||||||
Content library | 1,093 | (23,357 | ) | (195 | ) | — | (22,459 | ) | ||||||||||||
Prepaid expenses and other current assets | (43,762 | ) | (6,280 | ) | (500 | ) | — | (50,542 | ) | |||||||||||
Other assets | 201 | 400 | (371 | ) | — | 230 | ||||||||||||||
Accounts payable | 1,319 | (4,151 | ) | 226 | 354 | (2,252 | ) | |||||||||||||
Accrued payable to retailers | (6,181 | ) | 1,633 | 460 | — | (4,088 | ) | |||||||||||||
Other accrued liabilities | 13,184 | (22,751 | ) | (6 | ) | — | (9,573 | ) | ||||||||||||
Net cash flows from operating activities | 57,753 | 278,014 | (12,084 | ) | 408 | 324,091 | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Acquisition of ecoATM, net of cash acquired | (244,036 | ) | — | — | — | (244,036 | ) | |||||||||||||
Purchases of property and equipment | (58,763 | ) | (84,688 | ) | (14,218 | ) | — | (157,669 | ) | |||||||||||
Proceeds from sale of property and equipment | 12,147 | 1,189 | 8 | — | 13,344 | |||||||||||||||
Receipt of note receivable principal | 22,913 | — | — | — | 22,913 | |||||||||||||||
Cash paid for equity investments | — | (28,000 | ) | — | — | (28,000 | ) | |||||||||||||
Investments in and advances to affiliates | 125,856 | (156,659 | ) | 30,857 | (54 | ) | — | |||||||||||||
Net cash flows from investing activities | (141,883 | ) | (268,158 | ) | 16,647 | (54 | ) | (393,448 | ) | |||||||||||
Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of senior unsecured notes | 343,769 | — | — | — | 343,769 | |||||||||||||||
Proceeds from new borrowing of Credit Facility | 400,000 | — | — | — | 400,000 | |||||||||||||||
Principal payments on Credit Facility | (215,313 | ) | — | — | — | (215,313 | ) | |||||||||||||
Financing costs associated with Credit Facility and senior unsecured notes | (2,203 | ) | — | — | — | (2,203 | ) | |||||||||||||
Repurchase of convertible debt | (172,211 | ) | — | — | — | (172,211 | ) | |||||||||||||
Repurchases of common stock | (195,004 | ) | — | — | — | (195,004 | ) | |||||||||||||
Principal payments on capital lease obligations and other debt | (14,200 | ) | (217 | ) | (417 | ) | — | (14,834 | ) | |||||||||||
Excess tax benefits related to share-based payments | 3,698 | — | — | — | 3,698 | |||||||||||||||
Proceeds from exercise of stock options, net | 8,460 | — | — | — | 8,460 | |||||||||||||||
Net cash flows from financing activities | 156,996 | (217 | ) | (417 | ) | — | 156,362 | |||||||||||||
Effect of exchange rate changes on cash | (105 | ) | — | 1,643 | — | 1,538 | ||||||||||||||
Increase (decrease) in cash and cash equivalents(1) | 72,761 | 9,639 | 5,789 | 354 | 88,543 | |||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Beginning of period | 242,489 | — | 40,759 | (354 | ) | 282,894 | ||||||||||||||
End of period | $ | 315,250 | $ | 9,639 | $ | 46,548 | $ | — | $ | 371,437 | ||||||||||
-1 | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income | $ | 150,230 | $ | 141,327 | $ | (6,355 | ) | $ | (134,972 | ) | $ | 150,230 | ||||||||
Adjustments to reconcile net income to net cash flows: | ||||||||||||||||||||
Depreciation and other | 30,836 | 144,805 | 3,506 | — | 179,147 | |||||||||||||||
Amortization of intangible assets and deferred financing fees | 4,472 | 3,032 | — | — | 7,504 | |||||||||||||||
Share-based payments expense | 10,998 | 8,364 | — | — | 19,362 | |||||||||||||||
Excess tax benefits on share-based payments | (5,740 | ) | — | — | — | (5,740 | ) | |||||||||||||
Deferred income taxes | 18,578 | 70,607 | (1,612 | ) | — | 87,573 | ||||||||||||||
(Income) loss from equity method investments, net | 2,179 | 3,005 | — | — | 5,184 | |||||||||||||||
Non-cash interest on convertible debt | 7,109 | — | — | — | 7,109 | |||||||||||||||
Other | (1,390 | ) | (2,720 | ) | 10 | — | (4,100 | ) | ||||||||||||
Equity in (income) losses of subsidiaries | (141,327 | ) | 6,355 | — | 134,972 | — | ||||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | (371 | ) | (15,787 | ) | (903 | ) | — | (17,061 | ) | |||||||||||
Content library | (673 | ) | (27,079 | ) | (2,941 | ) | — | (30,693 | ) | |||||||||||
Prepaid expenses and other current assets | 1,386 | (8,159 | ) | (190 | ) | — | (6,963 | ) | ||||||||||||
Other assets | 39 | 848 | (29 | ) | — | 858 | ||||||||||||||
Accounts payable | 815 | 55,671 | 1,946 | (184 | ) | 58,248 | ||||||||||||||
Accrued payable to retailers | 7,432 | 1,025 | 2,004 | — | 10,461 | |||||||||||||||
Other accrued liabilities | (5,008 | ) | 7,520 | 275 | — | 2,787 | ||||||||||||||
Net cash flows from operating activities | 79,565 | 388,814 | (4,289 | ) | (184 | ) | 463,906 | |||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (64,423 | ) | (130,672 | ) | (12,959 | ) | — | (208,054 | ) | |||||||||||
Proceeds from sale of property and equipment | 302 | 782 | 47 | — | 1,131 | |||||||||||||||
Acquisition of NCR DVD kiosk business | — | (100,000 | ) | — | — | (100,000 | ) | |||||||||||||
Cash paid for equity investments | (10,877 | ) | (28,850 | ) | — | — | (39,727 | ) | ||||||||||||
Investments in and advances to affiliates | 96,990 | (122,272 | ) | 25,282 | — | — | ||||||||||||||
Net cash flows from investing activities | 21,992 | (381,012 | ) | 12,370 | — | (346,650 | ) | |||||||||||||
Financing Activities: | ||||||||||||||||||||
Principal payments on Credit Facility | (10,938 | ) | — | — | — | (10,938 | ) | |||||||||||||
Repurchase of convertible debt | (20,575 | ) | — | — | — | (20,575 | ) | |||||||||||||
Repurchases of common stock | (139,724 | ) | — | — | — | (139,724 | ) | |||||||||||||
Principal payments on capital lease obligations and other debt | (8,226 | ) | (7,802 | ) | (364 | ) | — | (16,392 | ) | |||||||||||
Excess tax benefits related to share-based payments | 5,740 | — | — | — | 5,740 | |||||||||||||||
Proceeds from exercise of stock options, net | 4,592 | — | — | — | 4,592 | |||||||||||||||
Net cash flows from financing activities | (169,131 | ) | (7,802 | ) | (364 | ) | — | (177,297 | ) | |||||||||||
Effect of exchange rate changes on cash | (196 | ) | — | 1,276 | — | 1,080 | ||||||||||||||
Increase (decrease) in cash and cash equivalents(1) | (67,770 | ) | — | 8,993 | (184 | ) | (58,961 | ) | ||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Beginning of period | 310,259 | — | 31,766 | (170 | ) | 341,855 | ||||||||||||||
End of period | $ | 242,489 | $ | — | $ | 40,759 | $ | (354 | ) | $ | 282,894 | |||||||||
-1 | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income | $ | 103,883 | $ | 102,021 | $ | 6,218 | $ | (108,239 | ) | $ | 103,883 | |||||||||
Adjustments to reconcile net income to net cash flows from operating activities from continuing operations: | ||||||||||||||||||||
Depreciation and other | 26,370 | 116,106 | 3,002 | — | 145,478 | |||||||||||||||
Amortization of intangible assets and deferred financing fees | 4,990 | 192 | — | — | 5,182 | |||||||||||||||
Share-based payments expense | 8,498 | 7,713 | — | — | 16,211 | |||||||||||||||
Excess tax benefits on share-based payments | (2,471 | ) | — | — | — | (2,471 | ) | |||||||||||||
Deferred income taxes | 14,057 | 44,362 | 1,657 | — | 60,076 | |||||||||||||||
Loss from discontinued operations, net of tax(1) | 11,733 | (729 | ) | 64 | — | 11,068 | ||||||||||||||
Loss from equity method investments, net | 1,591 | — | — | — | 1,591 | |||||||||||||||
Non-cash interest on convertible debt | 6,551 | — | — | — | 6,551 | |||||||||||||||
Other | (684 | ) | 589 | — | — | (95 | ) | |||||||||||||
Equity in (income) losses of subsidiaries | (103,090 | ) | (5,149 | ) | — | 108,239 | — | |||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | 432 | (15,504 | ) | (217 | ) | — | (15,289 | ) | ||||||||||||
Content library | (436 | ) | (1,626 | ) | — | — | (2,062 | ) | ||||||||||||
Prepaid expenses and other current assets | (2,718 | ) | (2,178 | ) | 27 | — | (4,869 | ) | ||||||||||||
Other assets | 358 | 1,411 | — | — | 1,769 | |||||||||||||||
Accounts payable | 5,977 | 6,915 | (172 | ) | (170 | ) | 12,550 | |||||||||||||
Accrued payable to retailers | 7,968 | 17,993 | 4,865 | — | 30,826 | |||||||||||||||
Other accrued liabilities | 7,132 | 26,002 | 2,983 | — | 36,117 | |||||||||||||||
Net cash flows from operating activities | 90,141 | 298,118 | 18,427 | (170 | ) | 406,516 | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (67,409 | ) | (109,492 | ) | (2,335 | ) | — | (179,236 | ) | |||||||||||
Proceeds from sale of property and equipment | 193 | 445 | 57 | — | 695 | |||||||||||||||
Proceeds from sale of businesses, net | 8,220 | — | — | — | 8,220 | |||||||||||||||
Cash paid for equity investments | (4,912 | ) | — | — | — | (4,912 | ) | |||||||||||||
Investments in and advances to affiliates | 184,264 | (173,452 | ) | (10,812 | ) | — | — | |||||||||||||
Net cash flows from investing activities | 120,356 | (282,499 | ) | (13,090 | ) | — | (175,233 | ) | ||||||||||||
Financing Activities: | ||||||||||||||||||||
Principal payments on capital lease obligations and other debt | (5,396 | ) | (22,480 | ) | (326 | ) | — | (28,202 | ) | |||||||||||
Borrowings from term loan | 175,000 | — | — | — | 175,000 | |||||||||||||||
Principal payments on credit facility | (154,375 | ) | — | — | — | (154,375 | ) | |||||||||||||
Financing costs associated with Credit Facility and senior unsecured notes | (4,196 | ) | — | — | — | (4,196 | ) | |||||||||||||
Excess tax benefits related to share-based payments | 2,471 | — | — | — | 2,471 | |||||||||||||||
Repurchases of common stock | (63,349 | ) | — | — | — | (63,349 | ) | |||||||||||||
Proceeds from exercise of stock options | 3,261 | — | — | — | 3,261 | |||||||||||||||
Net cash flows from financing activities | (46,584 | ) | (22,480 | ) | (326 | ) | — | (69,390 | ) | |||||||||||
Effect of exchange rate changes on cash | 78 | (102 | ) | (430 | ) | — | (454 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 163,991 | (6,963 | ) | 4,581 | (170 | ) | 161,439 | |||||||||||||
Cash flows from discontinued operations:(1) | ||||||||||||||||||||
Operating cash flows | — | — | 9,678 | — | 9,678 | |||||||||||||||
Investing cash flows | — | — | (12,678 | ) | — | (12,678 | ) | |||||||||||||
Net cash flows from discontinued operations | — | — | (3,000 | ) | — | (3,000 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | 163,991 | (6,963 | ) | 1,581 | (170 | ) | 158,439 | |||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Beginning of period | 146,268 | 6,963 | 30,185 | — | 183,416 | |||||||||||||||
End of period | $ | 310,259 | $ | — | $ | 31,766 | $ | (170 | ) | $ | 341,855 | |||||||||
-1 | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
SUBSEQUENT EVENTS | |
Pre-Arranged Stock Trading Plan | |
During January 2014, we repurchased 736,000 shares of our common stock with an average price of $67.93 per share for $50.0 million. The repurchases were made under a pre-arranged stock trading plan in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and our policies regarding stock transactions (the “10b5-1 Plan”). The shares repurchased under the 10b5-1 Plan were recorded as treasury shares and made in accordance with current share repurchase authorizations of the Board. | |
Additional repurchase authorization and tender offer | |
On January 30, 2014, Outerwall’s Board of Directors authorized additional common stock repurchases of up to $500.0 million plus the cash proceeds received from the exercise of stock options by our officers, directors, and employees, bringing the total available for repurchases as of February 3, 2014 to approximately $650.0 million, inclusive of the impact of the 10b5-1 Plan repurchases. In connection with this increased authorization, the Board also authorized a tender offer for up to $350.0 million with the option to increase the tender by up to 2% of outstanding shares. We expect to launch with a price range based on a 5% to 20% premium over the last reported sale price on February 6, 2014. Repurchases under the tender offer would come from this existing repurchase authorization. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation, Policy [Policy Text Block] | ' | |
Principles of Consolidation | ||
The accompanying consolidated financial statements include the accounts of Outerwall Inc. and our wholly-owned subsidiaries. Investments in companies of which we may have significant influence, but not a controlling interest, are accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Use of Estimates In Financial Reporting, Policy [Policy Text Block] | ' | |
Use of Estimates in Financial Reporting | ||
We prepare our financial statements in conformity with accounting principles generally accepted in the U.S. which requires management to make estimates and assumptions that affect the reported amounts in our consolidated financial statements and our notes thereto. The most significant estimates and assumptions include the: | ||
• | useful lives and salvage values of our content library; | |
• | determination of goodwill impairment; | |
• | lives and recoverability of equipment and other long-lived assets; | |
• | recognition and measurement of current and long-term deferred income taxes (including the measurement of uncertain tax positions); | |
• | recognition and measurement of purchase price allocation for business combination; and | |
• | loss contingencies. | |
It is reasonably possible that the estimates we make may change in the future and could have a material effect on our financial statements. | ||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |
Cash and Cash Equivalents | ||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. | ||
Accounts Receivables, Policy [Policy Text Block] | ' | |
Accounts Receivable | ||
Accounts receivable represents receivables, net of allowances for doubtful accounts. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on historical experience and other currently available information. When a specific account is deemed uncollectible, the account is written off against the allowance. | ||
Content Library, Policy [Policy Text Block] | ' | |
Content Library | ||
Content library consists of movies and video games available for rent or purchase. We obtain our movie and video game content through revenue sharing agreements and license agreements with studios and game publishers, as well as through distributors and other suppliers. The cost of content mainly includes the cost of the movies and video games, labor, overhead, freight, and studio revenue sharing expenses. The content purchases are capitalized and amortized to their estimated salvage value as a component of direct operating expenses over the usage period. For purchased content that we expect to sell at the end of its useful life, we determine an estimated salvage value. Content salvage values are estimated based on the amounts that we have historically recovered on disposal. For licensed content that we do not expect to sell, no salvage value is provided. The useful lives and salvage value of our content library are periodically reviewed and evaluated. The amortization charges were derived utilizing rental curves based on historical performance of movies and games over their useful lives and recorded on an accelerated basis, reflecting higher rentals of movies and video games in the first few weeks after release, and substantially all of the amortization expense is recognized within one year of purchase. | ||
In the second quarter of 2013, the Company completed a review of its content library amortization methodology and updated the methodology in order to add greater precision to product cost amortization. The previous method recognized accelerated amortization of content library costs at a rate faster than the decline in the content library's value due to the recognition of charges in addition to the normal rental curve amortization whenever individual discs were removed from kiosks, a process we define as "thinning". The Company's most recent analysis has shown that its amortization curves can reasonably capture the effect of thinning and therefore eliminates the need for additional charges at the time of thinning and provides a better correlation of costs to revenue. The modified approach to amortizing the cost of the content library is based on updated rental curves, which incorporate thinning estimates, and provides a more systematic method for recognizing the costs of movie and game titles. The Company anticipates that this new method will better align the recognition of costs with the related revenue. | ||
The Company believes that the change in its content library amortization methodology, made on a prospective basis, is a change in accounting estimate that is effected by a change in accounting principle. The Company believes that the modified content library amortization methodology is preferable because it better reflects the pattern of consumption of the expected benefits of the content library. | ||
Property and Equipment, Policy [Policy Text Block] | ' | |
Property and Equipment | ||
Property and equipment are stated at cost, net of accumulated depreciation. Expenditures that extend the life, increase the capacity, or improve the efficiency of property and equipment are capitalized, while expenditures for repairs and maintenance are expensed as incurred. Depreciation is recognized using the straight-line method over the following approximate useful lives: | ||
Useful Life | ||
Coin-counting kiosks and components | 2 to 10 years | |
Redbox kiosks and components | 3-5 years | |
Computers and software | 3 - 5 years | |
Office furniture and equipment | 5 - 7 years | |
Leased vehicles | 3 - 6 years | |
Leasehold improvements | 1 - 11 years | |
Internal-Use Software, Policy [Policy Text Block] | ' | |
Internal-Use Software | ||
We capitalize costs incurred to develop or obtain internal-use software during the application development stage. Capitalization of software development costs occurs after the preliminary project stage is complete, management authorizes the project, and it is probable that the project will be completed and the software will be used for the function intended. We expense costs incurred for training, data conversion, and maintenance, as well as spending in the post-implementation stage. A subsequent addition, modification or upgrade to internal-use software is capitalized only to the extent that it enables the software to perform a task it previously could not perform. The internal-use software is included in computers and software under property and equipment in our Consolidated Balance Sheets. We amortize the internal-use software based on the estimated useful life on a straight-line basis. | ||
Intangible Assets Subject to Amortization, Policy [Policy Text Block] | ' | |
Intangible Assets Subject to Amortization | ||
Our intangible assets subject to amortization are comprised primarily of developed technology and retailer relationships acquired in connection with our acquisitions. We used expectations of future cash flows, with appropriate discount rates based on the stage of the enterprise acquired, to estimate the fair value of our intangible assets. We amortize our intangible assets on a straight-line basis over their expected useful lives. | ||
Goodwill, Policy [Policy Text Block] | ' | |
Goodwill | ||
Goodwill represents the excess purchase price of an acquired enterprise or assets over the estimated fair value of identifiable net assets acquired. We assess goodwill for potential impairment at the reporting unit level on an annual basis as of November 30, or whenever an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We may assess qualitative factors to make this determination, or bypass such a qualitative assessment and proceed directly to testing goodwill for impairment using a two-step process. Qualitative factors we may consider include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments, entity specific factors such as strategies and financial performance. If, after completing such assessment, it is determined more likely than not that the fair value of a reporting unit is less than its carrying value, we proceed to a two-step impairment test, whereby the first step is comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the test is not performed. The second step of the impairment test is performed when the carrying amount of the reporting unit exceeds the fair value, then the implied fair value of the reporting unit goodwill is compared with the carrying amount of that goodwill. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to the excess. | ||
Lives and Recoverability of Equipment and Other Long-Lived Assets, Policy [Policy Text Block] | ' | |
Lives and Recoverability of Equipment and Other Long-Lived Assets | ||
We evaluate the estimated remaining life and recoverability of equipment and other assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Factors that would indicate potential impairment include, but are not limited to, significant decreases in the market value of the long-lived asset(s), a significant change in the long-lived asset’s use or physical condition, and operating or cash flow losses associated with the use of the long-lived asset. When there is an indication of impairment, we prepare an estimate of future undiscounted cash flows expected to result from the use of the asset and its eventual disposition to test recoverability. If the sum of the future undiscounted cash flow is less than the carrying value of the asset, it indicates that the long-lived asset is not recoverable, in which case we will then compare the estimated fair value to its carrying value. If the estimated fair value is less than the carrying value of the asset, we recognize the impairment loss and adjust the carrying amount of the asset to its estimated fair value. | ||
Income Taxes, Policy [Policy Text Block] | ' | |
Income Taxes | ||
Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities and operating loss and tax credit carryforwards. We record a valuation allowance to reduce deferred tax assets to the amount expected to more likely than not be realized in our future tax returns. Deferred tax assets and liabilities and operating loss and tax credit carryforwards are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carryforwards are expected to be recovered or settled. | ||
We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate or effective settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. When applicable, associated interest and penalties have been recognized as a component of income tax expense. | ||
Tax Collected From Customers and Remitted To Governmental Authorities, Policy [Policy Text Block] | ' | |
Taxes Collected from Customers and Remitted to Governmental Authorities | ||
We account for tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction (i.e., sales, value added) on a net (excluded from revenue) basis. | ||
Convertible Debt, Policy [Policy Text Block] | ' | |
Convertible Debt | ||
In September 2009, we issued $200.0 million aggregate principal amount of 4% Convertible Senior Notes (the “Notes”). We have separately accounted for the liability and the equity components of the Notes based on the estimated fair value of the debt upon issuance. The Convertible Notes become convertible (the “Conversion Event”) when the closing price of our common stock exceeds $52.38, 130% of the Convertible Notes’ conversion price, for at least 20 trading days during the 30 consecutive trading days prior to each quarter-end date. If the Convertible Notes become convertible and should the holders elect to convert, we will be required to pay them up to the full face value of the Convertible Notes in cash as well as deliver shares of our common stock for any excess conversion value. The number of potentially issued shares increases as the market price of our common stock increases. As of December 31, 2013, such early conversion event was met. As a result, the Convertible Notes were classified as a current liability and the debt conversion feature was classified as temporary equity on our Consolidated Balance Sheets. | ||
Loss Contingencies [Policy Text Block] | ' | |
Loss Contingencies | ||
We accrue estimated liabilities for loss contingencies arising from claims, assessments, litigation and other sources when it is probable that a liability has been incurred and the amount of the claim assessment or damages can be reasonably estimated. | ||
Revenue Recognition, Policy [Policy Text Block] | ' | |
Revenue Recognition | ||
We recognize revenue when persuasive evidence of a sales arrangement exists, delivery has occurred or services are rendered, the sales price or fee is fixed or determinable and collectibility is reasonably assured as follows: | ||
• | Redbox - Revenue from movie and video game rentals is recognized ratably over the term of a consumer’s rental transaction. Revenue from a direct sale out of the kiosk of previously rented movies or video games is recognized at the time of sale. On rental transactions for which the related movie or video game has not yet been returned to the kiosk at month-end, revenue is recognized with a corresponding receivable recorded in the balance sheet, net of a reserve for potentially uncollectible amounts. We record revenue net of refunds and applicable sales taxes collected from consumers. | |
• | Coinstar - Revenue from a coin-counting transaction, which is collected from either consumers or card issuers (in stored value product transactions), is recognized at the time the consumers’ coins are counted by our coin-counting kiosks. Our revenue represents the fee charged for coin-counting transactions. | |
• | New Ventures - New Ventures revenue is recognized when the sale of product or when the service transaction is complete. For our beauty concept this is at the time the transaction at kiosks is completed, for our ecoATM business revenue is recognized upon the sale and shipment of devices collected at our kiosk to third parties. Our New Ventures segment currently offers refurbished mobile devices and beauty samples to our consumers. | |
Fees Paid To Retailers, Policy [Policy Text Block] | ' | |
Fees Paid to Retailers | ||
Fees paid to retailers relate to the amount we pay our retailers for the benefit of placing our kiosks in their stores and their agreement to provide certain services on our behalf to our consumers. The fee is generally calculated as a percentage of each coin-counting transaction or as a percentage of our net movie or video game rental revenue and is recorded in our Consolidated Statements of Comprehensive Income within the direct operating expenses. The fee arrangements are based on our negotiations and evaluation of certain factors with the retailers such as total revenue, long-term non-cancelable contracts, installation of our kiosks in high traffic and/or urban or rural locations, co-op marketing incentives, or other criteria. | ||
Advertising, Policy [Policy Text Block] | ' | |
Advertising | ||
Advertising costs, which are included as a component of marketing expenses, are expensed as incurred | ||
Research and Development, Policy [Policy Text Block] | ' | |
Research and Development | ||
Costs incurred for research and development activities are expensed as incurred. | ||
Foreign Currency Translation, Policy [Policy Text Block] | ' | |
Foreign Currency Translation | ||
The functional currencies of our international subsidiaries are the British pound Sterling for our subsidiary Coinstar Limited in the United Kingdom, Canadian dollar for Coinstar International and Redbox Canada GP, and the Euro for our Coinstar Ireland Limited subsidiary. We translate assets and liabilities related to these operations to U.S. dollars at the exchange rate in effect at the date of the Consolidated Balance Sheets; we convert revenues and expenses into U.S. dollars using average exchange rates. Transaction gains and losses including on foreign currency intercompany transactions not deemed to be of a long term investment nature are included in Other income (expense), net on our Consolidated Statements of Comprehensive Income. Translation gains and losses, including gains and losses on foreign currency intercompany transactions deemed to be of a long term investment nature, are reported as a separate component of accumulated other comprehensive loss. | ||
Share-Based Payments, Policy [Policy Text Block] | ' | |
Share-Based Payments | ||
We measure and recognize expense for all share-based payment awards granted, including employee stock options and restricted stock awards, based on the estimated fair value of the award on the grant date. We utilize the Black-Scholes-Merton (“BSM”) valuation model for valuing our stock option awards and the determination of the expenses. | ||
The use of the BSM valuation model to estimate the fair value of stock option awards requires us to make judgments on assumptions regarding the risk-free interest rate, expected dividend yield, expected term and expected volatility over the expected term of the award. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates at the time they are made, but these estimates involve inherent uncertainties and the determination of expense could be materially different in the future. | ||
We amortize share-based payment expense on a straight-line basis over the vesting period of the individual award with estimated forfeitures considered. Vesting periods are generally four years. Shares to be issued upon the exercise of stock options will come from newly issued shares. The expense related to restricted stock granted to movie studios as part of license agreements is adjusted based on the number of unvested shares and market price of our common stock each reporting period. | ||
Share-based payment expense is only recognized on awards that ultimately vest. Therefore, we have reduced the share-based payment expense to be recognized over the vesting period for anticipated future forfeitures. Forfeiture estimates are based on historical forfeiture patterns. We review and assess our forfeiture estimates quarterly and update them if necessary. Any changes to accumulated share-based payment expense are recognized in the period of change. If actual forfeitures differ significantly from our estimates, our results of operations could be materially impacted. | ||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |
Fair Value of Financial Instruments | ||
The carrying amounts for cash equivalents approximate fair value, which is the amount for which the instrument could be exchanged in a current transaction between willing parties. Our available-for-sale securities are marked to fair value on a quarterly basis. The fair value of our revolving line of credit approximates its carrying amount. | ||
Accounting Pronouncements Adopted During the Current Year, Policy [Policy Text Block] | ' | |
Accounting Pronouncements Adopted During the Current Year | ||
In July 2012, the FASB issued ASU No. 2012-2, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” ("ASU 2012-2"). ASU 2012-2 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test for indefinite-lived intangible assets. An organization that elects to perform a qualitative assessment no longer is required to perform the quantitative impairment test for an indefinite-lived intangible asset if it is not more likely than not that the asset is impaired. ASU 2012-2, which applies to all public, private, and not-for-profit organizations, is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Our adoption of ASU 2012-2 in the first quarter of 2013 did not have a material impact on our financial position, results of operations or cash flows. | ||
On February 5, 2013, the FASB issued ASU No. 2013-2, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” ("ASU 2013-2"). ASU 2013-2 was issued to address concerns raised in the initial issuance of ASU No. 2011-5, “Presentation of Comprehensive Income”, for which the Board deferred the effective date of certain provisions relating to the presentation of reclassification adjustments in the income statement. With the issuance of ASU 2013-2 entities are now required to disclose: | ||
• | For items reclassified out of accumulated other comprehensive income and into net income in their entirety, the effect of the reclassification on each affected net income line item; and | |
• | For AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required disclosures under generally accepted accounting standards in the United States ("US GAAP"). | |
This information may be provided either in the notes or parenthetically on the face of the statement that reports net income as long as all the information is disclosed in a single location. However, an entity is prohibited from providing this information parenthetically on the face of the statement that reports net income if it has items that are not reclassified in their entirety into net income. For public entities, ASU 2013-2 is effective for annual reporting periods beginning after December 15, 2012 and interim periods within those years. Our adoption of ASU 2013-2 in the first quarter of 2013 did not have a material impact on our financial position, results of operations or cash flows. | ||
Reclassifications, Policy [Policy Text Block] | ' | |
Reclassifications | ||
We ceased operation of our self-service concept for refurbished electronics called Orango during the second quarter of 2013 and on December 5, 2013, we decided to discontinue three additional new venture concepts, Rubi, Crisp Market and Star Studio. We have reclassified the results of operations of these four ventures to discontinued operations for all periods presented in our Consolidated Statements of Comprehensive Income. See Note 13: Discontinued Operations and Sale of Business for more information. | ||
On June 22, 2012, Redbox acquired certain assets of NCR Corporation (“NCR”) related to NCR’s self-service entertainment DVD kiosk business (the “NCR Asset Acquisition”). The purchased assets included, among others, self-service DVD kiosks, content library, intellectual property, and certain related contracts, including with certain retailers. In consideration, Redbox paid NCR $100.0 million in cash and assumed certain liabilities of NCR related to the purchased assets. | ||
We accounted for the NCR Asset Acquisition as a business combination. In accordance with US GAAP, the measurement period for our purchase price allocation ended as soon as information regarding our assessment of the quality and quantity of the kiosks acquired as well as certain facts and circumstances became available; such measurement period was not to exceed twelve months from the acquisition date. In our originally issued FY 2012 10-K, we included a preliminary purchase price allocation. During the second quarter of 2013, we obtained sufficient evidence regarding the quality and market value of the kiosks acquired (See Note 3: Business Combination) to finalize our purchase price allocation. As a result, we retroactively adjusted our purchase price allocation to increase the value assigned to such kiosks acquired by $14.8 million with a corresponding decrease to goodwill in the period in which the NCR Asset Acquisition occurred resulting in a corresponding change in our December 31, 2012 ending balances to our originally issued FY 2012 10-K. |
Organization_and_Business_Tabl
Organization and Business (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Organization And Business [Abstract] | ' | |||||
Schedule Of Kiosk And Location Count [Table Text Block] | ' | |||||
Our kiosk and location counts as of December 31, 2013, are as follows: | ||||||
Kiosks | Locations | |||||
Redbox(1) | 44,000 | 36,400 | ||||
Coinstar | 20,900 | 20,600 | ||||
New Ventures(2) | 900 | 670 | ||||
Total(1) (2) | 65,800 | 57,670 | ||||
-1 | As of December 31, 2013, no kiosks acquired from NCR remained in service. See Note 3: Business Combinations for more information on the NCR Asset Acquisition. | |||||
-2 | Includes approximately 700 kiosks acquired through the purchase of ecoATM, Inc. See Note 3: Business Combinations for more information. As of December 31, 2013, there were over 800 ecoATM kiosks in service. Excludes kiosks related to concepts discontinued during the fiscal year ended December 31, 2013, See Note 13: Discontinued Operations and Sale of Business. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Allowance for Doubtful Accounts on Receivables [Table Text Block] | ' | |||||||||||
Certain information regarding our allowance for doubtful accounts was as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Amount expensed for uncollectible accounts | $ | 177 | $ | 417 | $ | 455 | ||||||
Amount charged against the allowance | $ | — | $ | — | $ | — | ||||||
Useful Lives Of Property And Equipment [Table Text Block] | ' | |||||||||||
Depreciation is recognized using the straight-line method over the following approximate useful lives: | ||||||||||||
Useful Life | ||||||||||||
Coin-counting kiosks and components | 2 to 10 years | |||||||||||
Redbox kiosks and components | 3-5 years | |||||||||||
Computers and software | 3 - 5 years | |||||||||||
Office furniture and equipment | 5 - 7 years | |||||||||||
Leased vehicles | 3 - 6 years | |||||||||||
Leasehold improvements | 1 - 11 years |
Business_Combination_Tables
Business Combination (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
ecoATM [Member] | ' | |||||||||||
Business Acquisition [Line Items] | ' | |||||||||||
Schedule of Consideration Transferred [Table Text Block] | ' | |||||||||||
The following table highlights the consideration transferred, the fair value of our previously held equity interest and the fair value of replacement awards issued attributable to post-combination services. | ||||||||||||
Dollars in thousands | 23-Jul-13 | |||||||||||
Consideration Transferred: | ||||||||||||
Cash paid | $ | 262,882 | ||||||||||
Replacement awards attributable to pre-combination services | 1,398 | |||||||||||
Total consideration transferred | 264,280 | |||||||||||
Previously held equity interest: | ||||||||||||
Acquisition date fair value of previously held equity interest | 76,359 | |||||||||||
Total consideration transferred and fair value of previously held equity interest | $ | 340,639 | ||||||||||
Fair value of replacement awards attributable to post-combination services | $ | 30,671 | ||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||||||||
The following table shows the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed and the resultant purchase price allocation. | ||||||||||||
Dollars in thousands | 23-Jul-13 | |||||||||||
Assets acquired: | ||||||||||||
Cash and cash equivalents | $ | 18,846 | ||||||||||
Accounts receivable | 18 | |||||||||||
Prepaid expenses and other current assets | 4,450 | |||||||||||
Current deferred income taxes | 6,476 | |||||||||||
Property and equipment | 23,207 | |||||||||||
Intangible assets | 41,400 | |||||||||||
Goodwill | 264,213 | |||||||||||
Other long-term assets | 131 | |||||||||||
Total assets acquired | 358,741 | |||||||||||
Liabilities assumed: | ||||||||||||
Accounts payable | (3,755 | ) | ||||||||||
Other accrued liabilities | (1,605 | ) | ||||||||||
Long term deferred tax liabilities | (12,742 | ) | ||||||||||
Total consideration transferred and fair value of previously held equity interest | $ | 340,639 | ||||||||||
Schedule of Acquired Identifiable Intangible Assets and Estimated Useful Lives [Table Text Block] | ' | |||||||||||
Acquired identifiable intangible assets and their estimated useful life in years are as follows: | ||||||||||||
Dollars in thousands | Purchase | Estimated Useful Life in Years | ||||||||||
Price | ||||||||||||
Intangible assets: | ||||||||||||
Developed technology | $ | 34,000 | 5 | |||||||||
Trade name | 6,000 | 5 | ||||||||||
Covenants not to compete | 1,400 | 5 | ||||||||||
Total | $ | 41,400 | ||||||||||
Revenue and Operating Loss from Acquisitions [Table Text Block] | ' | |||||||||||
The following table shows the revenue and operating loss included in our Consolidated Statements of Comprehensive Income resulting from the acquisition of ecoATM since the closing date, including the amortization for acquired intangibles which are allocated to our New Ventures segment and expense for rights to receive cash which are unallocated corporate expenses: | ||||||||||||
Year Ended | ||||||||||||
Dollars in thousands | 31-Dec-13 | |||||||||||
Revenue | $ | 31,824 | ||||||||||
Operating loss | $ | 14,538 | ||||||||||
Pro Forma Information for Acquisitions [Table Text Block] | ' | |||||||||||
The following unaudited pro forma information represents the results of operations for Outerwall Inc. and includes the ecoATM business acquired as if the acquisition was consummated as of January 1, 2012. | ||||||||||||
Years Ended | ||||||||||||
December 31, | ||||||||||||
(Unaudited) | ||||||||||||
Dollars in thousands | 2013 | 2012 | ||||||||||
Pro-forma revenue | $ | 2,330,195 | $ | 2,212,107 | ||||||||
Pro-forma income from continuing operations (1) | $ | 136,245 | $ | 208,209 | ||||||||
-1 | Pro-forma income from continuing operations includes the acquisition costs of $1.7 million and $4.0 million recorded in the second and third quarters of 2013, respectively. | |||||||||||
NCR Asset Acquisition [Member] | ' | |||||||||||
Business Acquisition [Line Items] | ' | |||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||||||||
The following table shows our preliminary purchase price allocation, adjustments we made during the six months ended June 30, 2013 and our final purchase price allocation based on the fair value of the assets acquired and liabilities assumed at the NCR Asset Acquisition date as follows: | ||||||||||||
June 22, 2012 | ||||||||||||
Dollars in thousands | Preliminary | Adjustments | Final | |||||||||
Assets acquired: | ||||||||||||
Content library | $ | 4,330 | $ | — | $ | 4,330 | ||||||
Prepaid expenses | 240 | — | 240 | |||||||||
Deferred income taxes | 1,500 | — | 1,500 | |||||||||
Property and equipment | 9,130 | 14,766 | 23,896 | |||||||||
Intangible assets | 46,960 | — | 46,960 | |||||||||
Goodwill | 42,110 | (14,766 | ) | 27,344 | ||||||||
Total assets acquired | 104,270 | — | 104,270 | |||||||||
Liabilities assumed: | ||||||||||||
Accrued liabilities | (4,270 | ) | — | (4,270 | ) | |||||||
Total consideration paid in cash | $ | 100,000 | $ | — | $ | 100,000 | ||||||
Schedule of Acquired Identifiable Intangible Assets and Estimated Useful Lives [Table Text Block] | ' | |||||||||||
A portion of the purchase price is allocated to the following identifiable intangible assets: | ||||||||||||
Dollars in thousands | Purchase | Estimated | ||||||||||
Price | Useful Life | |||||||||||
in Years | ||||||||||||
Intangible assets: | ||||||||||||
Retailer relationships | $ | 40,000 | 10 | |||||||||
Patents | 6,300 | 8 | ||||||||||
Trademark and trade name | 500 | 1 | ||||||||||
Internal use software | 160 | 1 | ||||||||||
Total | $ | 46,960 | ||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment [Table Text Block] | ' | |||||||
December 31, | ||||||||
Dollars in thousands | 2013 | 2012 | ||||||
Kiosks and components | $ | 1,105,761 | $ | 1,041,755 | ||||
Computers, servers, and software | 226,389 | 195,756 | ||||||
Office furniture and equipment | 7,260 | 6,538 | ||||||
Vehicles | 6,553 | 7,278 | ||||||
Leasehold improvements | 23,198 | 19,743 | ||||||
Property and equipment, at cost | 1,369,161 | 1,271,070 | ||||||
Accumulated depreciation and amortization | (848,296 | ) | (684,946 | ) | ||||
Property and equipment, net | $ | 520,865 | $ | 586,124 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill [Table Text Block] | ' | |||||||||||||||
The carrying amount of goodwill was as follows: | ||||||||||||||||
Dollars in thousands | ||||||||||||||||
Goodwill balance at December 31, 2012 | $ | 309,860 | ||||||||||||||
Purchase price allocation adjustment | (14,766 | ) | ||||||||||||||
Adjusted balance at December 31, 2012 | 295,094 | |||||||||||||||
Goodwill from acquisition of ecoATM | 264,213 | |||||||||||||||
Goodwill balance at December 31, 2013 | $ | 559,307 | ||||||||||||||
Goodwill by Segment [Table Text Block] | ' | |||||||||||||||
The carrying amount of goodwill by segment was as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Dollars in thousands | (As adjusted) | |||||||||||||||
Redbox | $ | 138,743 | $ | 138,743 | ||||||||||||
Coinstar | 156,351 | 156,351 | ||||||||||||||
New Ventures | 264,213 | — | ||||||||||||||
Total goodwill | $ | 559,307 | $ | 295,094 | ||||||||||||
Gross Amount Of Other Intangible Assets And The Related Accumulated Amortization [Table Text Block] | ' | |||||||||||||||
The gross amount of our other intangible assets and the related accumulated amortization were as follows: | ||||||||||||||||
Amortization | December 31, | |||||||||||||||
Dollars in thousands | Period | 2013 | 2012 | |||||||||||||
Retailer relationships | 5 - 10 years | $ | 53,295 | $ | 53,344 | |||||||||||
Accumulated amortization | (17,768 | ) | (11,518 | ) | ||||||||||||
35,527 | 41,826 | |||||||||||||||
Developed technology | 5 years | 34,000 | — | |||||||||||||
Accumulated amortization | (2,833 | ) | — | |||||||||||||
31,167 | — | |||||||||||||||
Other | 1 - 40 years | 16,800 | 9,404 | |||||||||||||
Accumulated amortization | (4,111 | ) | (2,261 | ) | ||||||||||||
12,689 | 7,143 | |||||||||||||||
Intangible assets, net | $ | 79,383 | $ | 48,969 | ||||||||||||
Schedule Of Amortization Of Intangible Assets [Table Text Block] | ' | |||||||||||||||
Amortization expense was as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||||||
Retailer relationships | $ | 6,250 | $ | 4,456 | $ | 2,457 | ||||||||||
Developed technology | 2,833 | — | 283 | |||||||||||||
Other | 1,850 | 922 | — | |||||||||||||
Total amortization of intangible assets | $ | 10,933 | $ | 5,378 | $ | 2,740 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||||||||||
Assuming no future impairment, the expected future amortization as of December 31, 2013 is as follows: | ||||||||||||||||
Dollars in thousands | Retailer | Developed Technology | Other | Total | ||||||||||||
Relationships | ||||||||||||||||
2014 | $ | 5,432 | $ | 6,800 | $ | 2,449 | $ | 14,681 | ||||||||
2015 | 4,012 | 6,800 | 2,419 | 13,231 | ||||||||||||
2016 | 4,012 | 6,800 | 2,307 | 13,119 | ||||||||||||
2017 | 4,012 | 6,800 | 2,285 | 13,097 | ||||||||||||
2018 | 4,012 | 3,967 | 1,664 | 9,643 | ||||||||||||
Thereafter | 14,047 | — | 1,565 | 15,612 | ||||||||||||
Total expected amortization | $ | 35,527 | $ | 31,167 | $ | 12,689 | $ | 79,383 | ||||||||
Equity_Method_Investments_and_1
Equity Method Investments and Related Party Transactions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments And Related Party Transactions [Abstract] | ' | |||||||||||
Schedule Of Income Loss From Equity Method Investments [Table Text Block] | ' | |||||||||||
Income (loss) from equity method investments within our Consolidated Statements of Comprehensive Income is composed of the following: | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Trademark gain | $ | — | $ | 19,500 | $ | — | ||||||
Gain on previously held equity interest on ecoATM | 68,376 | — | — | |||||||||
Proportionate share of net loss of equity method investees: | ||||||||||||
Redbox Instant by Verizon | (42,660 | ) | (20,236 | ) | — | |||||||
Other | (3,313 | ) | (2,179 | ) | (1,591 | ) | ||||||
Total proportionate share of net loss of equity method investees | (45,973 | ) | (22,415 | ) | (1,591 | ) | ||||||
Amortization of difference in carrying amount and underlying equity in Redbox Instant by Verizon | (2,475 | ) | (2,269 | ) | — | |||||||
Total income (loss) from equity method investments | $ | 19,928 | $ | (5,184 | ) | $ | (1,591 | ) | ||||
Schedule of Equity Method Investments [Table Text Block] | ' | |||||||||||
Our equity method investments and ownership percentages as of December 31, 2013, were as follows: | ||||||||||||
Dollars in thousands | Equity | Ownership | ||||||||||
Investment | Percentage | |||||||||||
Redbox Instant by Verizon | $ | 8,709 | 35% | |||||||||
SoloHealth, Inc. | 1,998 | 10% | ||||||||||
Equity method investments | $ | 10,707 | ||||||||||
A summary of financial information for our equity method investees in the aggregate, as provided to us by the investees, is as follows: | ||||||||||||
Balance Sheets | December 31, | |||||||||||
Dollars in thousands | 2013 | 2012 | ||||||||||
Current assets | $ | 32,832 | $ | 29,857 | ||||||||
Noncurrent assets | 30,765 | 39,828 | ||||||||||
Current liabilities | 46,706 | 15,822 | ||||||||||
Long-term liabilities | 23,905 | 6,462 | ||||||||||
Redeemable preferred stock | 23,542 | 23,696 | ||||||||||
Statement of Operations | Years Ended December 31, | |||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Revenue | $ | 15,824 | $ | 2,067 | $ | 650 | ||||||
Cost of sales and service | 25,092 | 10,716 | 571 | |||||||||
Net loss and loss from continuing operations | 134,911 | 58,510 | 4,337 | |||||||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets and Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule of Prepaid Expenses and Other Current Assets [Table Text Block] | ' | |||||||
Prepaid expenses and other current assets: | ||||||||
Dollars in thousands | December 31, | |||||||
2013 | 2012 | |||||||
Income taxes receivable | $ | 37,466 | $ | 2,650 | ||||
Spare parts | 18,975 | 11,683 | ||||||
Licenses | 4,568 | 2,887 | ||||||
Electronic devices inventory | 3,529 | — | ||||||
DVD cases and labels | 2,596 | 5,043 | ||||||
Prepaid rent | 1,302 | 326 | ||||||
Other | 16,262 | 7,097 | ||||||
Total prepaid and other current assets | $ | 84,698 | $ | 29,686 | ||||
Schedule of Other Accrued Liabilities [Table Text Block] | ' | |||||||
Other accrued liabilities consist of the following: | ||||||||
Dollars in thousands | December 31, | |||||||
2013 | 2012 | |||||||
Payroll related expenses | $ | 33,852 | $ | 39,469 | ||||
Procurement cost for content library | 21,602 | 36,436 | ||||||
Business taxes | 22,939 | 23,301 | ||||||
Insurance | 13,379 | 8,714 | ||||||
Professional fees | 930 | 4,822 | ||||||
Service contract provider expenses | 8,134 | 3,560 | ||||||
Deferred rent expense | 5,713 | 3,191 | ||||||
Accrued interest expense | 7,015 | 1,450 | ||||||
Income tax payable | — | 826 | ||||||
Other | 20,563 | 24,356 | ||||||
Total other accrued liabilities | $ | 134,127 | $ | 146,125 | ||||
Debt_and_Other_LongTerm_Liabil1
Debt and Other Long-Term Liabilities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||||||
Schedule of Debt and Other Long Term Liabilities [Table Text Block] | ' | |||||||||||
Debt and Other Liabilities | As of December 31, 2013 | |||||||||||
Dollars in thousands | Current | Long-term | Total | |||||||||
Senior unsecured notes | $ | — | $ | 350,000 | $ | 350,000 | ||||||
Callable convertible debt | 49,702 | — | 49,702 | |||||||||
Term loans under Credit Facility | 42,187 | 302,188 | 344,375 | |||||||||
Asset retirement obligation | — | 13,086 | 13,086 | |||||||||
Other liabilities | 3 | 12,082 | 12,085 | |||||||||
Total | $ | 91,892 | $ | 677,356 | $ | 769,248 | ||||||
Debt and Other Liabilities | As of December 31, 2012 | |||||||||||
Dollars in thousands | Current | Long-term | Total | |||||||||
Convertible debt | $ | — | $ | 172,810 | $ | 172,810 | ||||||
Term loan under Credit Facility | 15,312 | 144,375 | 159,687 | |||||||||
Asset retirement obligation | — | 14,020 | 14,020 | |||||||||
Other liabilities | 217 | 9,974 | 10,191 | |||||||||
Total | $ | 15,529 | $ | 341,179 | $ | 356,708 | ||||||
Schedule of Repayment of Credit Facility Term Loan [Table Text Block] | ' | |||||||||||
(ii) the principal balance of the loans under the Additional Term Facility shall be payable on the following dates and in the following amounts (expressed as a percentage of the aggregate amount of the initial loans made under the Additional Term Facility): | ||||||||||||
Payment Date | Repayment Percentage Amount | |||||||||||
Last Business Day of March 2014 | 2.5 | % | ||||||||||
Last Business Day of June 2014 | 2.5 | % | ||||||||||
Last Business Day of September 2014 | 3.125 | % | ||||||||||
Last Business Day of December 2014 | 3.125 | % | ||||||||||
Last Business Day of March 2015 | 3.125 | % | ||||||||||
Last Business Day of June 2015 | 3.125 | % | ||||||||||
Last Business Day of September 2015 | 3.125 | % | ||||||||||
Last Business Day of December 2015 | 3.125 | % | ||||||||||
Last Business Day of March 2016 | 3.125 | % | ||||||||||
Last Business Day of June 2016 | 3.125 | % | ||||||||||
July 15, 2016 | Remaining Principal Balance | |||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||||||
The schedule of future principal repayments is as follows: | ||||||||||||
Dollars in thousands | Repayment Amount | |||||||||||
2014 | $ | 42,187 | ||||||||||
2015 | 46,875 | |||||||||||
2016 | 255,313 | |||||||||||
Total | $ | 344,375 | ||||||||||
Schedule Of Additional Detail Of Convertible Notes [Table Text Block] | ' | |||||||||||
Additional details of our Convertible Notes are as follows: | ||||||||||||
Dollars in thousands | Principal | Discount | Net | |||||||||
Outstanding December 31, 2012 | $ | 184,983 | $ | (12,173 | ) | $ | 172,810 | |||||
Early extinguishments and debt conversion | (133,835 | ) | 6,861 | (126,974 | ) | |||||||
Amortization of discount | — | 3,866 | 3,866 | |||||||||
Outstanding December 31, 2013 | $ | 51,148 | $ | (1,446 | ) | $ | 49,702 | |||||
Schedule of Interest Expense Related to Convertible Debt [Table Text Block] | ' | |||||||||||
The following interest expense was related to our Convertible Notes: | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Contractual interest expense | $ | 3,873 | $ | 8,000 | $ | 8,000 | ||||||
Amortization of debt discount | 3,866 | 7,109 | 6,551 | |||||||||
Total interest expense related to the Convertible Notes | $ | 7,739 | $ | 15,109 | $ | 14,551 | ||||||
Schedule of Other Long-term Liabilities [Table Text Block] | ' | |||||||||||
Included in other long-term liabilities were primarily tenant improvements related to our office building renovation in Oakbrook Terrace, Illinois and Bellevue, Washington as well as the related unrecognized tax benefits as follows: | ||||||||||||
Dollars in thousands | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Tenant improvement and deferred rent and other | $ | 9,301 | $ | 8,724 | ||||||||
Unrecognized tax benefit | 2,781 | 1,250 | ||||||||||
Total other long-term liabilities | $ | 12,082 | $ | 9,974 | ||||||||
Repurchases_of_Common_Stock_Ta
Repurchases of Common Stock (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Class of Stock Disclosures [Abstract] | ' | ||||||||||
Schedule of Treasury Stock by Class [Table Text Block] | ' | ||||||||||
The following table presents a summary of our authorized stock repurchase balance: | |||||||||||
Dollars in thousands | Board Authorization | ||||||||||
Authorized repurchase - as of January 1, 2013 (1) | $ | 133,640 | |||||||||
Additional board authorization (1) | 250,000 | ||||||||||
Proceeds from the exercise of stock options | 12,655 | ||||||||||
Repurchase of common stock from open market | (95,004 | ) | |||||||||
Repurchase from Discounted Share Buyback Agreement ("DSB Agreement") | (100,000 | ) | |||||||||
Authorized repurchase - as of December 31, 2013 (1) | $ | 201,291 | |||||||||
-1 | In addition to these amounts, the repurchase program approved by our Board of Directors allows for the use of cash proceeds received from the exercise of stock options by our officers, directors, and employees. | ||||||||||
Schedule of Share Repurchases [Table Text Block] | ' | ||||||||||
On October 29, 2013 we entered into a DSB Agreement with Wells Fargo Securities at a notional amount of $100.0 million. The DSB Agreement was concluded on December 24, 2013. The total number of shares received under the DSB Agreement was determined based on the arithmetic mean of the daily volume weighted average price of our common stock minus discount over the term of the DSB Agreement. | |||||||||||
Share repurchase and amounts in thousands | Shares Delivered | ||||||||||
Total shares delivered from DSB Agreement | 1,514 | ||||||||||
Average price per share less discount | $ | 66.06 | |||||||||
Total repurchase amount from DSB Agreement | $ | 100,000 | |||||||||
The following repurchases were made during the past three years, shares and dollars in thousands except per share price: | |||||||||||
Year Ended December 31, | Number of Shares | Average Price per Share | Total Purchase Price | ||||||||
Repurchased | |||||||||||
2011 | 1,374,036 | $ | 46.1 | $ | 63,349 | ||||||
2012 | 2,799,115 | 49.92 | 139,724 | ||||||||
2013 | 3,306,433 | 58.98 | 195,004 | ||||||||
Total | 7,479,584 | $ | 398,077 | ||||||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||
Summary Of Grant Information [Table Text Block] | ' | |||||||||||
The following is the summary of grant information: | ||||||||||||
Shares in thousands | 31-Dec-13 | |||||||||||
Unissued common stock reserved for issuance under all plans | 1,532 | |||||||||||
Shares available for future grants | 1,284 | |||||||||||
Summary Of Share Based Payments [Table Text Block] | ' | |||||||||||
Certain information regarding our share-based payments is as follows: | ||||||||||||
December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Share-based payments expense: | ||||||||||||
Share-based compensation - stock options | $ | 1,566 | $ | 2,654 | $ | 2,880 | ||||||
Share-based compensation - restricted stock | 10,504 | 10,593 | 7,100 | |||||||||
Share-based payments for content arrangements | 4,761 | 6,115 | 6,231 | |||||||||
Total share-based payments expense | $ | 16,831 | $ | 19,362 | $ | 16,211 | ||||||
Tax benefit on share-based payments expense | $ | 6,392 | $ | 7,246 | $ | 5,944 | ||||||
Per share weighted average grant date fair value of stock options granted | $ | 53.9 | $ | 27.24 | $ | 20.67 | ||||||
Per share weighted average grant date fair value of restricted stock granted | $ | 53.94 | $ | 55.94 | $ | 45.86 | ||||||
Total intrinsic value of stock options exercised | $ | 10,567 | $ | 10,509 | $ | 2,291 | ||||||
Grant date fair value of restricted stock vested | $ | 12,641 | $ | 11,648 | $ | 5,132 | ||||||
31-Dec-13 | ||||||||||||
Dollars in thousands | Unrecognized Share-Based Payments Expense | Weighted-Average Remaining Life | ||||||||||
Unrecognized share-based payments expense: | ||||||||||||
Share-based compensation - stock options | $ | 1,777 | 2.4 years | |||||||||
Share-based compensation - restricted stock | 18,175 | 2.3 years | ||||||||||
Share-based payments for content arrangements | 979 | 0.9 years | ||||||||||
Total unrecognized share-based payments expense | $ | 20,931 | ||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||
The following table summarizes the weighted average valuation assumptions we used in the Black-Scholes-Merton Valuation model for stock options granted during 2013: | ||||||||||||
31-Dec-13 | ||||||||||||
Expected term | 6.3 years | |||||||||||
Expected stock price volatility | 45.00% | |||||||||||
Risk-free interest rate | 1.90% | |||||||||||
Expected dividend yield | 0.00% | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||
The following table presents a summary of stock option activity for 2013: | ||||||||||||
Shares in thousands | Options | Weighted Average Exercise Price | ||||||||||
OUTSTANDING, December 31, 2012 | 669 | $ | 34.86 | |||||||||
Granted | 94 | $ | 53.9 | |||||||||
Exercised | (412 | ) | $ | 30.72 | ||||||||
Cancelled, expired, or forfeited | (103 | ) | $ | 42.65 | ||||||||
OUTSTANDING, December 31, 2013 | 248 | $ | 45.72 | |||||||||
Schedule Of Information Regarding Stock Options Outstanding [Table Text Block] | ' | |||||||||||
Certain information regarding stock options outstanding as of December 31, 2013, is as follows: | ||||||||||||
Options | ||||||||||||
Shares and intrinsic value in thousands | Outstanding | Exercisable | ||||||||||
Number | 248 | 114 | ||||||||||
Weighted average per share exercise price | $ | 45.72 | $ | 38.88 | ||||||||
Aggregate intrinsic value | $ | 5,351 | $ | 3,237 | ||||||||
Weighted average remaining contractual term (in years) | 5.77 | 3.29 | ||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | |||||||||||
The following table presents a summary of restricted stock award activity for 2013: | ||||||||||||
Shares in thousands | Restricted Stock Awards | Weighted Average Grant Date Fair Value | ||||||||||
NON-VESTED, December 31, 2012 | 604 | $ | 48.95 | |||||||||
Granted | 437 | $ | 53.94 | |||||||||
Vested | (230 | ) | $ | 46.58 | ||||||||
Forfeited | (214 | ) | $ | 51.56 | ||||||||
NON-VESTED, December 31, 2013 | 597 | $ | 52.58 | |||||||||
Schedule of Information Related to Share Based Payments for content Arrangements [Table Text Block] | ' | |||||||||||
Information related to the shares of restricted stock granted as part of these agreements as of December 31, 2013, is as follows: | ||||||||||||
Granted | Vested | Unvested | Remaining | |||||||||
Vesting Period | ||||||||||||
Sony | 193,348 | 164,346 | 29,002 | 0.6 years | ||||||||
Paramount | 300,000 | 180,000 | 120,000 | 1.0 year | ||||||||
Total | 493,348 | 344,346 | 149,002 | |||||||||
Schedule of Expected Amortization Expense of Share-Based Compensation [Table Text Block] [Table Text Block] | ' | |||||||||||
The expected future recognition of expense associated with the rights to receive cash as of December 31, 2013 is as follows: | ||||||||||||
Dollars in thousands | Expense | |||||||||||
2014 | $ | 13,422 | ||||||||||
2015 | 4,911 | |||||||||||
2016 | 3,185 | |||||||||||
2017 | 561 | |||||||||||
Total expected expense | $ | 22,079 | ||||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Restructuring and Related Costs [Table Text Block] | ' | |||||||
The total amount expected to be incurred in connection with the restructuring, exclusive of asset impairments, and the amount incurred during the period ended December 31, 2013 by reportable segment (on an allocated basis) and expense type is as follows: | ||||||||
Dollars in thousands | Total Estimated Expense | Incurred through December 31, 2013 | ||||||
Redbox | ||||||||
Severance | $ | 3,820 | $ | 3,771 | ||||
Coinstar | ||||||||
Severance | 733 | 724 | ||||||
Discontinued Operations | ||||||||
Severance | 1,125 | 871 | ||||||
Other | 1,648 | 1,438 | ||||||
Total | $ | 7,326 | $ | 6,804 | ||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||
A reconciliation of the beginning and ending liability balance by expense type is as follows: | ||||||||
Dollars in thousands | Severance Expense | Other expenses | ||||||
Beginning Balance - January 1, 2013 | $ | — | $ | — | ||||
Costs charged to expense | 5,366 | 1,438 | ||||||
Costs paid or otherwise settled | (2,858 | ) | (20 | ) | ||||
Ending Balance - December 31, 2013 | $ | 2,508 | $ | 1,418 | ||||
The line items in our Consolidated Statements of Comprehensive Income in which the expenses are recorded are as follows: | ||||||||
Dollars in thousands | Severance Expense | Other expenses | ||||||
General and administrative | $ | 4,495 | $ | — | ||||
Loss from discontinued operations, net of tax | 871 | 1,438 | ||||||
Total expense | $ | 5,366 | $ | 1,438 | ||||
Income_Taxes_from_Continuing_O1
Income Taxes from Continuing Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | |||||||||||
The components of income(loss) from continuing operations before income taxes were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
U.S. operations | $ | 258,665 | $ | 262,695 | $ | 193,213 | ||||||
Foreign operations | (16,097 | ) | (4,302 | ) | 4,644 | |||||||
Total income from continuing operations before income taxes | $ | 242,568 | $ | 258,393 | $ | 197,857 | ||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||||||
The components of income tax expense from continuing operations were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||
Current: | ||||||||||||
U.S. Federal | $ | 39,272 | $ | — | $ | — | ||||||
State and local | 10,159 | 4,142 | 9,845 | |||||||||
Foreign | (424 | ) | 7 | 375 | ||||||||
Total current | 49,007 | 4,149 | 10,220 | |||||||||
Deferred: | ||||||||||||
U.S. Federal | (4,169 | ) | 87,375 | 63,453 | ||||||||
State and local | (5,726 | ) | 7,938 | 612 | ||||||||
Foreign | (4,635 | ) | (1,521 | ) | 638 | |||||||
Total deferred | (14,530 | ) | 93,792 | 64,703 | ||||||||
Total income tax expense | $ | 34,477 | $ | 97,941 | $ | 74,923 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||||||
The income tax expense differs from the amount that would result by applying the U.S. statutory rate to income before income taxes as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S Federal tax expense at statutory rates | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 4.2 | % | 4 | % | 4.3 | % | ||||||
Federal and state credits | (0.9 | )% | (0.8 | )% | (0.6 | )% | ||||||
Recognition of Outside Basis Differences | (16.7 | )% | — | % | — | % | ||||||
Valuation Allowance | 2.4 | % | — | % | — | % | ||||||
Non-taxable gain related to acquisition of ecoATM | (10.0 | )% | — | % | — | % | ||||||
Other | 0.2 | % | (0.3 | )% | (0.9 | )% | ||||||
Effective tax rate | 14.2 | % | 37.9 | % | 37.8 | % | ||||||
Aggregate Change in Unrecognized Tax Benefits [Table Text Block] | ' | |||||||||||
The aggregate changes in the balance of unrecognized tax benefits were as follows: | ||||||||||||
Dollars in thousands | Years ended December 31, | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance, beginning of the year | $ | 2,383 | $ | 2,455 | $ | 1,821 | ||||||
Additions based on tax positions related to the current year | 824 | — | 315 | |||||||||
Additions for tax positions related to prior years | 18 | 251 | 420 | |||||||||
Reductions for tax positions related to prior years | (257 | ) | (71 | ) | — | |||||||
Reductions from lapse of applicable statute of limitations | (49 | ) | (252 | ) | — | |||||||
Settlements | (138 | ) | — | (101 | ) | |||||||
Balance, end of year | $ | 2,781 | $ | 2,383 | $ | 2,455 | ||||||
Summary of Income Tax Examinations [Table Text Block] | ' | |||||||||||
Jurisdiction | As of December 31, 2013 | |||||||||||
Open Tax Years | ||||||||||||
U.S. | 1998 through 2012 | |||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||||||
Significant components of our deferred tax assets and liabilities and the net increase (decrease) in the valuation allowance were as follows: | ||||||||||||
Dollars in thousands | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Income tax loss carryforwards | $ | 7,347 | $ | 20,356 | ||||||||
Capital loss carryforwards | 5,917 | — | ||||||||||
Credit carryforwards | 2,289 | 9,226 | ||||||||||
Accrued liabilities and allowances | 14,929 | 18,455 | ||||||||||
Stock-based compensation | 12,547 | 12,783 | ||||||||||
Intangible assets | 17,252 | 14,004 | ||||||||||
Investment basis | 3,968 | — | ||||||||||
Other | 2,148 | 6,175 | ||||||||||
Gross deferred tax assets | 66,397 | 80,999 | ||||||||||
Less: Valuation Allowance | (6,898 | ) | — | |||||||||
Total deferred tax assets | 59,499 | 80,999 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (93,407 | ) | (115,381 | ) | ||||||||
Product costs | (40,757 | ) | (36,837 | ) | ||||||||
Investment basis | — | (6,906 | ) | |||||||||
Convertible debt interest | (552 | ) | (5,066 | ) | ||||||||
Total deferred tax liabilities | (134,716 | ) | (164,190 | ) | ||||||||
Net deferred tax liabilities | $ | (75,217 | ) | $ | (83,191 | ) | ||||||
Schedule Of Deferred Tax Assets Valuation Allowance [Table Text Block] | ' | |||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Increase (decrease) in valuation allowance | $ | 6,898 | $ | — | $ | (8,947 | ) | |||||
Summary of Operating Loss Carryforwards [Table Text Block] | ' | |||||||||||
Our deferred tax assets relating to income tax loss carryforwards and expiration periods are summarized as below: | ||||||||||||
Dollars in thousands | 31-Dec-13 | |||||||||||
Federal | State | Foreign | ||||||||||
Net operating loss carryforwards | $ | 4,109 | $ | 63,017 | $ | 10,540 | ||||||
Deferred tax assets related to net operating loss carryforwards | $ | 1,438 | $ | 3,151 | $ | 2,758 | ||||||
Years that net operating loss carryforwards will expire between | 2030 to 2034 | 2016 and 2030 | 2033 and 2034 | |||||||||
Summary of Tax Credit Carryforwards [Table Text Block] | ' | |||||||||||
The following is the information pertaining to our U.S. state tax credits as well as the expiration periods: | ||||||||||||
Dollars in thousands | December 31, 2013 | |||||||||||
Amount | Expiration | |||||||||||
U.S state tax credits: | ||||||||||||
Illinois state tax credits | $ | 1,562 | 2016 to 2017 | |||||||||
California U.S. state tax credits | 727 | Do not expire | ||||||||||
Total U.S. state tax credits | $ | 2,289 | ||||||||||
Discontinued_Operations_and_Sa1
Discontinued Operations and Sale of Business (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Schedule of Asset Impairment Charges [Table Text Block] | ' | |||||||||||
Total asset impairment charges related to the concepts and relevant shared service assets were as follows: | ||||||||||||
Dollars in thousands | Impairment Expense | |||||||||||
Rubi | $ | 21,317 | ||||||||||
Orango | 5,551 | |||||||||||
Crisp Market | 289 | |||||||||||
Star Studio | 2,786 | |||||||||||
Corporate assets utilized for discontinued concepts | 2,789 | |||||||||||
Total impairment expense | $ | 32,732 | ||||||||||
Schedule Of Sold Assets And Liabilities Of Discontinued Operation [Table Text Block] | ' | |||||||||||
On June 9, 2011, the sold assets and liabilities of the Money Transfer Business primarily consisted of the following (in thousands): | ||||||||||||
Dollars in thousands | June 9, 2011 | |||||||||||
Cash and cash equivalents | $ | 57,893 | ||||||||||
Accounts receivable, net | 33,185 | |||||||||||
Other current assets | 13,560 | |||||||||||
Property, plant and equipment, net | 4,066 | |||||||||||
Goodwill, intangible, and other assets | 8,162 | |||||||||||
Total assets | 116,866 | |||||||||||
Accounts payable and payable to agents | 65,464 | |||||||||||
Accrued liabilities | 13,062 | |||||||||||
Total liabilities | 78,526 | |||||||||||
Net assets sold | $ | 38,340 | ||||||||||
Schedule of Discontinued Operations Included in Financial Statements [Table Text Block] | ' | |||||||||||
The following table sets forth the components of discontinued operations included in our Consolidated Statements of Comprehensive Income: | ||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue: | ||||||||||||
Rubi, Crisp Market, Orango and Star Studio | $ | 4,399 | $ | 2,159 | $ | 1,326 | ||||||
Money Transfer Business | — | — | 47,716 | |||||||||
Total revenue | 4,399 | 2,159 | 49,042 | |||||||||
Pre-tax gain (loss) from discontinued operations: | ||||||||||||
Rubi, Crisp Market, Orango and Star Studio | (54,395 | ) | (16,647 | ) | (13,129 | ) | ||||||
Money Transfer Business | — | — | 654 | |||||||||
Total pre-tax gain (loss) from discontinued operations | (54,395 | ) | (16,647 | ) | (12,475 | ) | ||||||
Loss on disposal activities: | ||||||||||||
Rubi, Crisp Market, Orango and Star Studio | — | — | — | |||||||||
Money Transfer Business | — | — | (11,070 | ) | ||||||||
Total loss on disposal activities | — | — | (11,070 | ) | ||||||||
Loss from discontinued operations before income tax | (54,395 | ) | (16,647 | ) | (23,545 | ) | ||||||
Income tax benefit | 21,096 | 6,425 | 4,494 | |||||||||
Loss from discontinued operations, net of tax | $ | (33,299 | ) | $ | (10,222 | ) | $ | (19,051 | ) | |||
Amount of goodwill and other intangible assets disposed | $ | — | $ | — | $ | 8,037 | ||||||
Cash generated from the sale of discontinued operations | $ | — | $ | — | $ | 8,220 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Shares Used for Basic and Diluted EPS Calculations [Table Text Block] | ' | ||||||||
Net income used for calculating basic and diluted EPS is the same for all periods presented. The following table sets forth the computation of shares used for the basic and diluted EPS calculations: | |||||||||
Years Ended December 31, | |||||||||
In thousands | 2013 | 2012 | 2011 | ||||||
Weighted average shares used for basic EPS | 27,216 | 30,305 | 30,520 | ||||||
Dilutive effect of stock options and other share-based awards | 447 | 598 | 609 | ||||||
Dilutive effect of convertible debt | 718 | 1,271 | 740 | ||||||
Weighted average shares used for diluted EPS | 28,381 | 32,174 | 31,869 | ||||||
Stock options and share-based awards not included in diluted EPS calculation because their effect would be antidilutive | 14 | 139 | 108 | ||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||
Tax Effects Allocated to Each Component of Other Comprehensive Income [Table Text Block] | ' | |||||||||||
The following table presents the tax effects allocated to each component of other comprehensive income: | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||
Dollars in thousands | Before-Tax Amount | Tax (Expense) or Benefit | Net-of-Tax Amount | |||||||||
Foreign currency translation adjustment | $ | 856 | $ | — | $ | 856 | ||||||
Other comprehensive income | $ | 856 | $ | — | $ | 856 | ||||||
Year Ended December 31, 2012 | ||||||||||||
Dollars in thousands | Before-Tax Amount | Tax (Expense) or Benefit | Net-of-Tax Amount | |||||||||
Foreign currency translation adjustment | $ | 1,048 | $ | — | $ | 1,048 | ||||||
Other comprehensive income | $ | 1,048 | $ | — | $ | 1,048 | ||||||
Year Ended December 31, 2011 | ||||||||||||
Dollars in thousands | Before-Tax Amount | Tax (Expense) or Benefit | Net-of-Tax Amount | |||||||||
Foreign currency translation adjustment | $ | (255 | ) | $ | — | $ | (255 | ) | ||||
Reclassification of interest rate hedges to interest expense (1) | 896 | (349 | ) | 547 | ||||||||
Gain (loss) on short-term investment | (20 | ) | 7 | (13 | ) | |||||||
Other comprehensive income (loss) | $ | 621 | $ | (342 | ) | $ | 279 | |||||
-1 | At December 31, 2010 we had an interest rate swap agreement with Wells Fargo Bank to hedge against the variable-rate interest payments on our revolving Credit Facility which expired on March 20, 2011. At December 31, 2010 the fair value of this agreement was a liability of $0.9 million which was reversed from comprehensive income and recognized as interest expense in our Consolidated Statements of Comprehensive Income in the first quarter of 2011. |
Business_Segments_and_Enterpri1
Business Segments and Enterprise-Wide Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||
Our analysis and reconciliation of our segment information to the consolidated financial statements that follows covers our results of operations, which consists of our Redbox, Coinstar and New Ventures segments. Unallocated general and administrative expenses relate to share-based compensation and expense related to the rights to receive cash issued in connection with our acquisition of ecoATM. | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Dollars in thousands | Redbox | Coinstar | New Ventures | Corporate Unallocated | Total | |||||||||||||||
Revenue | $ | 1,974,531 | $ | 300,218 | $ | 31,852 | $ | — | $ | 2,306,601 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 1,383,646 | 158,562 | 29,433 | 3,636 | 1,575,277 | |||||||||||||||
Marketing | 23,010 | 6,244 | 1,589 | 1,559 | 32,402 | |||||||||||||||
Research and development | 78 | 6,962 | 4,669 | 1,375 | 13,084 | |||||||||||||||
General and administrative | 166,117 | 25,944 | 15,551 | 14,164 | 221,776 | |||||||||||||||
Segment operating income (loss) | 401,680 | 102,506 | (19,390 | ) | (20,734 | ) | 464,062 | |||||||||||||
Less: depreciation, amortization and other | (162,637 | ) | (33,921 | ) | (6,536 | ) | — | (203,094 | ) | |||||||||||
Operating income (loss) | 239,043 | 68,585 | (25,926 | ) | (20,734 | ) | 260,968 | |||||||||||||
Loss from equity method investments, net | — | — | — | 19,928 | 19,928 | |||||||||||||||
Interest expense, net | — | — | — | (32,801 | ) | (32,801 | ) | |||||||||||||
Other, net | — | — | — | (5,527 | ) | (5,527 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes | $ | 239,043 | $ | 68,585 | $ | (25,926 | ) | $ | (39,134 | ) | $ | 242,568 | ||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Dollars in thousands | Redbox | Coinstar | New Ventures | Corporate Unallocated | Total | |||||||||||||||
Revenue | $ | 1,908,773 | $ | 290,761 | $ | 350 | $ | — | $ | 2,199,884 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 1,340,899 | 155,740 | 1,317 | 863 | 1,498,819 | |||||||||||||||
Marketing | 20,497 | 4,938 | 478 | 66 | 25,979 | |||||||||||||||
Research and development | 739 | 4,455 | 1,229 | 334 | 6,757 | |||||||||||||||
General and administrative | 159,885 | 26,367 | 6,283 | 11,984 | 204,519 | |||||||||||||||
Segment operating income (loss) | 386,753 | 99,261 | (8,957 | ) | (13,247 | ) | 463,810 | |||||||||||||
Less: depreciation, amortization and other | (148,068 | ) | (36,108 | ) | (229 | ) | — | (184,405 | ) | |||||||||||
Operating income (loss) | 238,685 | 63,153 | (9,186 | ) | (13,247 | ) | 279,405 | |||||||||||||
Loss from equity method investments, net | — | — | — | (5,184 | ) | (5,184 | ) | |||||||||||||
Interest expense, net | — | — | — | (15,648 | ) | (15,648 | ) | |||||||||||||
Other, net | — | — | — | (180 | ) | (180 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes | $ | 238,685 | $ | 63,153 | $ | (9,186 | ) | $ | (34,259 | ) | $ | 258,393 | ||||||||
Year Ended December, 2011 | ||||||||||||||||||||
Dollars in thousands | Redbox | Coinstar | New Ventures | Corporate Unallocated | Total | |||||||||||||||
Revenue | $ | 1,561,598 | $ | 282,382 | $ | 66 | $ | — | $ | 1,844,046 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 1,134,167 | 145,362 | 235 | 473 | 1,280,237 | |||||||||||||||
Marketing | 22,041 | 6,142 | 217 | 50 | 28,450 | |||||||||||||||
Research and development | 74 | 6,542 | 617 | 318 | 7,551 | |||||||||||||||
General and administrative | 120,384 | 23,370 | 4,529 | 9,139 | 157,422 | |||||||||||||||
Segment operating income (loss) | 284,932 | 100,966 | (5,532 | ) | (9,980 | ) | 370,386 | |||||||||||||
Less: depreciation, amortization and other | (115,430 | ) | (31,922 | ) | (20 | ) | — | (147,372 | ) | |||||||||||
Operating income (loss) | 169,502 | 69,044 | (5,552 | ) | (9,980 | ) | 223,014 | |||||||||||||
Loss from equity method investments, net | — | — | — | (1,591 | ) | (1,591 | ) | |||||||||||||
Interest expense, net | — | — | — | (23,822 | ) | (23,822 | ) | |||||||||||||
Other, net | — | — | — | 256 | 256 | |||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 169,502 | $ | 69,044 | $ | (5,552 | ) | $ | (35,137 | ) | $ | 197,857 | ||||||||
Schedule of Entity-Wide Information by Major Customers by Reporting Segments [Table Text Block] | ' | |||||||||||||||||||
Our Redbox and Coinstar kiosks are primarily located within retailers. The following retailers accounted for 10.0% or more of our consolidated revenue: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Wal-Mart Stores Inc. | 15.3 | % | 16 | % | 17.5 | % | ||||||||||||||
Walgreen Co. | 14.6 | % | 16 | % | 16 | % | ||||||||||||||
The Kroger Company | 10 | % | 10.7 | % | 11.2 | % | ||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | |||||||||||||||||||
Revenue is allocated to geographic locations based on the location of the kiosk. Revenue by geographic location was as follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||||||||||
U.S. | $ | 2,254,790 | $ | 2,154,943 | $ | 1,801,025 | ||||||||||||||
All other | 51,811 | 44,941 | 43,021 | |||||||||||||||||
Total revenue | $ | 2,306,601 | $ | 2,199,884 | $ | 1,844,046 | ||||||||||||||
Long-lived assets by geographic location were as follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
Dollars in thousands | 2013 | 2012 | 2011 | |||||||||||||||||
U.S. | $ | 1,146,616 | $ | 975,334 | $ | 798,840 | ||||||||||||||
All other | 43,774 | 30,884 | 17,007 | |||||||||||||||||
Total long-lived assets | $ | 1,190,390 | $ | 1,006,218 | $ | 815,847 | ||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||||||||
The following table presents our financial assets and (liabilities) that are measured and reported at fair value in our Consolidated Balance Sheets on a recurring basis, by level within the fair value hierarchy (in thousands): | ||||||||||||
Fair Value at December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||
Money market demand accounts and investment grade fixed income securities | $ | 65,800 | $ | — | $ | — | ||||||
Fair Value at December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||
Money market demand accounts and investment grade fixed income securities | $ | 60,425 | $ | — | $ | — | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Capital Leased Assets [Table Text Block] | ' | |||||||||||||||||||||||
Assets held under capital leases are included in property and equipment, net on the Consolidated Balance Sheets and include the following: | ||||||||||||||||||||||||
Dollars in thousands | December 31, | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Gross property and equipment | $ | 48,992 | $ | 48,636 | ||||||||||||||||||||
Accumulated depreciation | (28,489 | ) | (18,974 | ) | ||||||||||||||||||||
Net property and equipment | $ | 20,503 | $ | 29,662 | ||||||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | |||||||||||||||||||||||
As of December 31, 2013, our future minimum lease payments are as follows: | ||||||||||||||||||||||||
Dollars in thousands | Capital Leases | Operating Leases (1) | ||||||||||||||||||||||
2014 | $ | 12,640 | $ | 15,306 | ||||||||||||||||||||
2015 | 7,618 | 11,114 | ||||||||||||||||||||||
2016 | 1,462 | 8,765 | ||||||||||||||||||||||
2017 | 314 | 7,301 | ||||||||||||||||||||||
2018 | 168 | 6,228 | ||||||||||||||||||||||
Thereafter | 51 | 17,654 | ||||||||||||||||||||||
Total minimum lease commitments | 22,253 | $ | 66,368 | |||||||||||||||||||||
Less: amounts representing interest | (892 | ) | ||||||||||||||||||||||
Present value of capital lease obligations | 21,361 | |||||||||||||||||||||||
Less: Current portion of capital lease obligations | (11,997 | ) | ||||||||||||||||||||||
Long-term portion of capital lease obligations | $ | 9,364 | ||||||||||||||||||||||
-1 | Includes all operating leases having an initial or remaining non-cancelable lease term in excess of one year. | |||||||||||||||||||||||
Schedule of Estimated Commitments Under Content License Agreements [Table Text Block] | ' | |||||||||||||||||||||||
A summary of the estimated commitments in relation to these agreements as of December 31, 2013 is presented in the following table: | ||||||||||||||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | |||||||||||||||||||||
Fox | $ | 121,452 | $ | 88,942 | $ | 32,510 | $ | — | ||||||||||||||||
Universal | 120,077 | 103,941 | 16,136 | — | ||||||||||||||||||||
Sony | 109,349 | 109,349 | — | — | ||||||||||||||||||||
Paramount | 99,214 | 99,214 | — | — | ||||||||||||||||||||
Warner | 90,953 | 85,608 | 5,345 | — | ||||||||||||||||||||
Lionsgate | 35,999 | 35,999 | — | — | ||||||||||||||||||||
Summit | 21,357 | 21,357 | — | — | ||||||||||||||||||||
Anchor Bay | 21,318 | 21,318 | — | — | ||||||||||||||||||||
Total estimated commitments | $ | 619,719 | $ | 565,728 | $ | 53,991 | $ | — | ||||||||||||||||
General terms of our content license agreements with studios are as follows as of December 31, 2013: | ||||||||||||||||||||||||
Studio | End Date | Release Date | ||||||||||||||||||||||
Sony | 9/30/14 | (1) | Day & Date | (2) | ||||||||||||||||||||
Warner | 12/31/14 | Delay | (3) | |||||||||||||||||||||
Fox | 4/21/15 | Delay | (3) | |||||||||||||||||||||
Paramount | 12/31/14 | (1) | Day & Date | (2) | ||||||||||||||||||||
Universal | 12/31/14 | (4) | Delay | (3) | ||||||||||||||||||||
Lionsgate | 8/31/14 | Day & Date | (2) | |||||||||||||||||||||
Summit | 12/31/14 | Day & Date | (2) | |||||||||||||||||||||
Anchor Bay | 12/31/14 | Day & Date | (2) | |||||||||||||||||||||
-1 | Agreement includes, at the studio’s sole discretion, the option for two one-year extensions following the end date. | |||||||||||||||||||||||
-2 | Content licensed under the agreement is available for rental on the same day and date as the retail release. | |||||||||||||||||||||||
-3 | Content licensed under the agreement is available for rental after a certain number of days following the retail release. | |||||||||||||||||||||||
-4 | Agreement includes, at the studio’s sole discretion, the option a one-year extensions following the end date. | |||||||||||||||||||||||
Schedule of Estimated Revenue Share Commitments to Retailers [Table Text Block] | ' | |||||||||||||||||||||||
Certain of our Retailer agreements include minimum revenue share commitments through the term of the arrangement. Our minimum commitments under these agreements are presented in the following table: | ||||||||||||||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Redbox | $ | 35,932 | $ | 30,158 | $ | 2,794 | $ | 2,290 | $ | 552 | $ | 138 | ||||||||||||
Coinstar | 1,667 | 1,667 | — | — | — | — | ||||||||||||||||||
New Venture | 108 | 108 | — | — | — | — | ||||||||||||||||||
Total minimum commitments | $ | 37,707 | $ | 31,933 | $ | 2,794 | $ | 2,290 | $ | 552 | $ | 138 | ||||||||||||
Guarantor_Subsidiaries_Tables
Guarantor Subsidiaries (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Guarantor Subsidiaries Disclosure [Abstract] | ' | |||||||||||||||||||
Condensed Consolidated Balance Sheet [Table Text Block] | ' | |||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 315,250 | $ | 9,639 | $ | 46,548 | $ | — | $ | 371,437 | ||||||||||
Accounts receivable, net of allowances | 2,029 | 45,672 | 2,595 | — | 50,296 | |||||||||||||||
Content library | 37 | 196,695 | 3,136 | — | 199,868 | |||||||||||||||
Deferred income taxes | 12,152 | — | 8 | (12,149 | ) | 11 | ||||||||||||||
Prepaid expenses and other current assets | 55,512 | 28,234 | 952 | — | 84,698 | |||||||||||||||
Intercompany receivables | 180,100 | 355,418 | 5,093 | (540,611 | ) | — | ||||||||||||||
Total current assets | 565,080 | 635,658 | 58,332 | (552,760 | ) | 706,310 | ||||||||||||||
Property and equipment, net | 163,747 | 320,296 | 36,822 | — | 520,865 | |||||||||||||||
Deferred income taxes | — | — | 6,412 | 31 | 6,443 | |||||||||||||||
Goodwill and other intangible assets | 251,150 | 387,540 | — | — | 638,690 | |||||||||||||||
Other long-term assets | 12,473 | 11,499 | 420 | — | 24,392 | |||||||||||||||
Investment in related parties | 815,243 | 4,825 | — | (820,068 | ) | — | ||||||||||||||
Total assets | $ | 1,807,693 | $ | 1,359,818 | $ | 101,986 | $ | (1,372,797 | ) | $ | 1,896,700 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 17,336 | $ | 215,703 | $ | 2,979 | $ | — | $ | 236,018 | ||||||||||
Accrued payable to retailers | 71,085 | 48,126 | 14,929 | — | 134,140 | |||||||||||||||
Other accrued liabilities | 59,444 | 71,607 | 3,076 | — | 134,127 | |||||||||||||||
Current callable convertible debt | 49,702 | — | — | — | 49,702 | |||||||||||||||
Current portion of long-term debt and other | 42,187 | 3 | — | — | 42,190 | |||||||||||||||
Current portion of capital lease obligations | 11,630 | — | 367 | — | 11,997 | |||||||||||||||
Deferred income taxes | — | 35,292 | — | (12,149 | ) | 23,143 | ||||||||||||||
Intercompany payables | 315,615 | 154,565 | 70,432 | (540,612 | ) | — | ||||||||||||||
Total current liabilities | 566,999 | 525,296 | 91,783 | (552,761 | ) | 631,317 | ||||||||||||||
Long-term debt and other long-term liabilities | 658,032 | 18,748 | 576 | — | 677,356 | |||||||||||||||
Capital lease obligations | 8,912 | — | 452 | — | 9,364 | |||||||||||||||
Deferred income taxes | 45,307 | 13,190 | — | 31 | 58,528 | |||||||||||||||
Total liabilities | 1,279,250 | 557,234 | 92,811 | (552,730 | ) | 1,376,565 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Debt conversion feature | 1,446 | — | — | — | 1,446 | |||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 596,995 | 225,016 | 12,393 | (351,923 | ) | 482,481 | ||||||||||||||
Treasury stock | (476,796 | ) | — | — | — | (476,796 | ) | |||||||||||||
Retained earnings | 407,959 | 577,568 | (3,612 | ) | (468,144 | ) | 513,771 | |||||||||||||
Accumulated other comprehensive loss | (1,161 | ) | — | 394 | — | (767 | ) | |||||||||||||
Total stockholders’ equity | 526,997 | 802,584 | 9,175 | (820,067 | ) | 518,689 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,807,693 | $ | 1,359,818 | $ | 101,986 | $ | (1,372,797 | ) | $ | 1,896,700 | |||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 242,489 | $ | — | $ | 40,759 | $ | (354 | ) | $ | 282,894 | |||||||||
Accounts receivable, net of allowances | 887 | 56,293 | 1,151 | — | 58,331 | |||||||||||||||
Content library | 1,130 | 173,339 | 2,940 | — | 177,409 | |||||||||||||||
Deferred income taxes | 27,372 | — | 899 | (21,084 | ) | 7,187 | ||||||||||||||
Prepaid expenses and other current assets | 11,748 | 17,504 | 434 | — | 29,686 | |||||||||||||||
Intercompany receivables | 119,848 | 76,878 | 3,581 | (200,307 | ) | — | ||||||||||||||
Total current assets | 403,474 | 324,014 | 49,764 | (221,745 | ) | 555,507 | ||||||||||||||
Property and equipment, net | 188,251 | 368,620 | 29,253 | — | 586,124 | |||||||||||||||
Notes receivable | 26,731 | — | — | — | 26,731 | |||||||||||||||
Deferred income taxes | — | — | 1,334 | 39 | 1,373 | |||||||||||||||
Goodwill and other intangible assets | 253,395 | 90,614 | — | 54 | 344,063 | |||||||||||||||
Other long-term assets | 18,992 | 28,906 | 29 | — | 47,927 | |||||||||||||||
Investment in related parties | 90,828 | 24,395 | — | (115,223 | ) | — | ||||||||||||||
Total assets | $ | 981,671 | $ | 836,549 | $ | 80,380 | $ | (336,875 | ) | $ | 1,561,725 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 21,368 | $ | 225,463 | $ | 4,111 | $ | (354 | ) | $ | 250,588 | |||||||||
Accrued payable to retailers | 77,266 | 46,493 | 14,654 | — | 138,413 | |||||||||||||||
Other accrued liabilities | 50,314 | 92,724 | 3,087 | — | 146,125 | |||||||||||||||
Current portion of long-term debt and other | 15,312 | 217 | — | — | 15,529 | |||||||||||||||
Current portion of capital lease obligations | 13,002 | — | 348 | — | 13,350 | |||||||||||||||
Deferred income taxes | — | 21,084 | — | (21,084 | ) | — | ||||||||||||||
Intercompany payables | 56,473 | 108,347 | 35,487 | (200,307 | ) | — | ||||||||||||||
Total current liabilities | 233,735 | 494,328 | 57,687 | (221,745 | ) | 564,005 | ||||||||||||||
Long-term debt and other long-term liabilities | 322,279 | 18,724 | 176 | — | 341,179 | |||||||||||||||
Capital lease obligations | 15,180 | — | 522 | — | 15,702 | |||||||||||||||
Deferred income taxes | 54,855 | 36,857 | — | 39 | 91,751 | |||||||||||||||
Total liabilities | 626,049 | 549,909 | 58,385 | (221,706 | ) | 1,012,637 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 574,842 | 145,425 | 12,444 | (227,830 | ) | 504,881 | ||||||||||||||
Treasury stock | (293,149 | ) | — | — | — | (293,149 | ) | |||||||||||||
Retained earnings | 74,985 | 141,215 | 10,118 | 112,661 | 338,979 | |||||||||||||||
Accumulated other comprehensive loss | (1,056 | ) | — | (567 | ) | — | (1,623 | ) | ||||||||||||
Total stockholders’ equity | 355,622 | 286,640 | 21,995 | (115,169 | ) | 549,088 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 981,671 | $ | 836,549 | $ | 80,380 | $ | (336,875 | ) | $ | 1,561,725 | |||||||||
Condensed Consolidated Statement of Comprehensive Income [Table Text Block] | ' | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Revenue | $ | 255,251 | $ | 1,999,539 | $ | 51,811 | $ | — | $ | 2,306,601 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 138,859 | 1,394,932 | 54,433 | (12,947 | ) | 1,575,277 | ||||||||||||||
Marketing | 6,540 | 23,269 | 2,593 | — | 32,402 | |||||||||||||||
Research and development | 8,973 | 4,111 | — | — | 13,084 | |||||||||||||||
General and administrative | 33,747 | 171,505 | 3,569 | 12,955 | 221,776 | |||||||||||||||
Depreciation and other | 28,101 | 158,801 | 5,259 | — | 192,161 | |||||||||||||||
Amortization of intangible assets | 2,245 | 8,688 | — | — | 10,933 | |||||||||||||||
Total expenses | 218,465 | 1,761,306 | 65,854 | 8 | 2,045,633 | |||||||||||||||
Operating income (loss) | 36,786 | 238,233 | (14,043 | ) | (8 | ) | 260,968 | |||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Income (loss) from equity method investments, net | 65,063 | (45,135 | ) | — | — | 19,928 | ||||||||||||||
Interest expense, net | (32,930 | ) | 257 | (128 | ) | — | (32,801 | ) | ||||||||||||
Other, net | (3,868 | ) | 258 | (1,925 | ) | 8 | (5,527 | ) | ||||||||||||
Total other income (expense), net | 28,265 | (44,620 | ) | (2,053 | ) | 8 | (18,400 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | 65,051 | 193,613 | (16,096 | ) | — | 242,568 | ||||||||||||||
Income tax benefit (expense) | 30,893 | (70,429 | ) | 5,059 | — | (34,477 | ) | |||||||||||||
Income from continuing operations | 95,944 | 123,184 | (11,037 | ) | — | 208,091 | ||||||||||||||
Loss from discontinued operations, net of tax | (30,834 | ) | (2,465 | ) | — | — | (33,299 | ) | ||||||||||||
Equity in income (loss) of subsidiaries | 109,682 | (11,037 | ) | — | (98,645 | ) | — | |||||||||||||
Net Income (loss) | 174,792 | 109,682 | (11,037 | ) | (98,645 | ) | 174,792 | |||||||||||||
Foreign currency translation adjustment(1) | (105 | ) | — | 961 | — | 856 | ||||||||||||||
Comprehensive income (loss) | $ | 174,687 | $ | 109,682 | $ | (10,076 | ) | $ | (98,645 | ) | $ | 175,648 | ||||||||
-1 | Foreign currency translation adjustment had no tax effect in 2013. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Revenue | $ | 247,906 | $ | 1,907,037 | $ | 44,941 | $ | — | $ | 2,199,884 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 137,092 | 1,334,227 | 45,838 | (18,338 | ) | 1,498,819 | ||||||||||||||
Marketing | 5,020 | 18,676 | 2,283 | — | 25,979 | |||||||||||||||
Research and development | 6,018 | 739 | — | — | 6,757 | |||||||||||||||
General and administrative | 23,442 | 161,814 | 931 | 18,332 | 204,519 | |||||||||||||||
Depreciation and other | 30,716 | 144,805 | 3,506 | — | 179,027 | |||||||||||||||
Amortization of intangible assets | 2,346 | 3,032 | — | — | 5,378 | |||||||||||||||
Total expenses | 204,634 | 1,663,293 | 52,558 | (6 | ) | 1,920,479 | ||||||||||||||
Operating income (loss) | 43,272 | 243,744 | (7,617 | ) | 6 | 279,405 | ||||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Loss from equity method investments, net | (2,179 | ) | (3,005 | ) | — | — | (5,184 | ) | ||||||||||||
Interest income (expense), net | (18,161 | ) | 2,554 | (41 | ) | — | (15,648 | ) | ||||||||||||
Other, net | 98 | (264 | ) | (8 | ) | (6 | ) | (180 | ) | |||||||||||
Total other income (expense), net | (20,242 | ) | (715 | ) | (49 | ) | (6 | ) | (21,012 | ) | ||||||||||
Income (loss) from continuing operations before income taxes | 23,030 | 243,029 | (7,666 | ) | — | 258,393 | ||||||||||||||
Income tax benefit (expense) | (5,518 | ) | (93,734 | ) | 1,311 | — | (97,941 | ) | ||||||||||||
Income (loss) from continuing operations | 17,512 | 149,295 | (6,355 | ) | — | $ | 160,452 | |||||||||||||
Loss from discontinued operations, net of tax | (8,609 | ) | (1,613 | ) | — | — | $ | (10,222 | ) | |||||||||||
Equity in income (loss) of subsidiaries | 141,327 | (6,355 | ) | — | (134,972 | ) | — | |||||||||||||
Net income (loss) | 150,230 | 141,327 | (6,355 | ) | (134,972 | ) | 150,230 | |||||||||||||
Foreign currency translation adjustment(1) | (196 | ) | — | 1,244 | — | 1,048 | ||||||||||||||
Comprehensive income (loss) | $ | 150,034 | $ | 141,327 | $ | (5,111 | ) | $ | (134,972 | ) | $ | 151,278 | ||||||||
-1 | Foreign currency translation adjustment had no tax effect in 2012. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Revenue | $ | 239,043 | $ | 1,561,982 | $ | 43,021 | $ | — | $ | 1,844,046 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 123,975 | 1,135,194 | 24,621 | (3,553 | ) | 1,280,237 | ||||||||||||||
Marketing | 5,784 | 22,300 | 366 | — | 28,450 | |||||||||||||||
Research and development | 7,466 | 85 | — | — | 7,551 | |||||||||||||||
General and administrative | 19,554 | 125,358 | 8,957 | 3,553 | 157,422 | |||||||||||||||
Depreciation and other | 25,524 | 116,106 | 3,002 | — | 144,632 | |||||||||||||||
Amortization of intangible assets | 2,548 | 192 | — | — | 2,740 | |||||||||||||||
Total expenses | 184,851 | 1,399,235 | 36,946 | — | 1,621,032 | |||||||||||||||
Operating income | 54,192 | 162,747 | 6,075 | — | 223,014 | |||||||||||||||
Other income (expense): | ||||||||||||||||||||
Loss from equity method investments, net | (1,591 | ) | — | — | — | (1,591 | ) | |||||||||||||
Interest expense, net | (21,564 | ) | (2,245 | ) | (13 | ) | — | (23,822 | ) | |||||||||||
Other, net | (1,179 | ) | 316 | 1,119 | — | 256 | ||||||||||||||
Total other income (expense) | (24,334 | ) | (1,929 | ) | 1,106 | — | (25,157 | ) | ||||||||||||
Income from continuing operations before income taxes | 29,858 | 160,818 | 7,181 | — | 197,857 | |||||||||||||||
Income tax expense | (9,901 | ) | (64,123 | ) | (899 | ) | — | (74,923 | ) | |||||||||||
Income from continuing operations | 19,957 | 96,695 | 6,282 | — | 122,934 | |||||||||||||||
Income (loss) from discontinued operations, net of tax | (19,164 | ) | 177 | (64 | ) | — | (19,051 | ) | ||||||||||||
Equity in income (loss) of subsidiaries | 103,090 | 5,149 | — | (108,239 | ) | — | ||||||||||||||
Net income (loss) | 103,883 | 102,021 | 6,218 | (108,239 | ) | 103,883 | ||||||||||||||
Other comprehensive income (Note 15): | ||||||||||||||||||||
Foreign currency translation adjustment(1) | 320 | (102 | ) | (376 | ) | (97 | ) | (255 | ) | |||||||||||
Reclassification of interest rate hedges to interest expense | 896 | — | — | — | 896 | |||||||||||||||
Loss on short-term investments | (20 | ) | — | — | — | (20 | ) | |||||||||||||
Income tax expense related to items of other comprehensive income | (342 | ) | — | — | — | (342 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | 854 | (102 | ) | (376 | ) | (97 | ) | 279 | ||||||||||||
Comprehensive income | $ | 104,737 | $ | 101,919 | $ | 5,842 | $ | (108,336 | ) | $ | 104,162 | |||||||||
-1 | Foreign currency translation adjustment had no tax effect in 2011. | |||||||||||||||||||
Condensed Consolidated Statement of Cash Flows [Table Text Block] | ' | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income | $ | 174,792 | $ | 109,682 | $ | (11,037 | ) | $ | (98,645 | ) | $ | 174,792 | ||||||||
Adjustments to reconcile net income to net cash flows: | ||||||||||||||||||||
Depreciation and other | 29,640 | 158,801 | 5,259 | — | 193,700 | |||||||||||||||
Amortization of intangible assets and deferred financing fees | 4,773 | 8,688 | — | — | 13,461 | |||||||||||||||
Share-based payments expense | 9,903 | 6,928 | — | — | 16,831 | |||||||||||||||
Excess tax benefits on share-based payments | (3,698 | ) | — | — | — | (3,698 | ) | |||||||||||||
Deferred income taxes | 9,228 | (15,727 | ) | (4,434 | ) | — | (10,933 | ) | ||||||||||||
Impairment expense(1) | 32,444 | 288 | — | — | 32,732 | |||||||||||||||
(Income) loss from equity method investments, net | (65,063 | ) | 45,135 | — | — | (19,928 | ) | |||||||||||||
Non-cash interest on convertible debt | 3,866 | — | — | — | 3,866 | |||||||||||||||
Loss from extinguishments of callable convertible debt | 6,013 | — | — | — | 6,013 | |||||||||||||||
Other | 827 | (2,951 | ) | 31 | 54 | (2,039 | ) | |||||||||||||
Equity in (income) losses of subsidiaries | (109,682 | ) | 11,037 | — | 98,645 | — | ||||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | (1,144 | ) | 10,639 | (1,517 | ) | — | 7,978 | |||||||||||||
Content library | 1,093 | (23,357 | ) | (195 | ) | — | (22,459 | ) | ||||||||||||
Prepaid expenses and other current assets | (43,762 | ) | (6,280 | ) | (500 | ) | — | (50,542 | ) | |||||||||||
Other assets | 201 | 400 | (371 | ) | — | 230 | ||||||||||||||
Accounts payable | 1,319 | (4,151 | ) | 226 | 354 | (2,252 | ) | |||||||||||||
Accrued payable to retailers | (6,181 | ) | 1,633 | 460 | — | (4,088 | ) | |||||||||||||
Other accrued liabilities | 13,184 | (22,751 | ) | (6 | ) | — | (9,573 | ) | ||||||||||||
Net cash flows from operating activities | 57,753 | 278,014 | (12,084 | ) | 408 | 324,091 | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Acquisition of ecoATM, net of cash acquired | (244,036 | ) | — | — | — | (244,036 | ) | |||||||||||||
Purchases of property and equipment | (58,763 | ) | (84,688 | ) | (14,218 | ) | — | (157,669 | ) | |||||||||||
Proceeds from sale of property and equipment | 12,147 | 1,189 | 8 | — | 13,344 | |||||||||||||||
Receipt of note receivable principal | 22,913 | — | — | — | 22,913 | |||||||||||||||
Cash paid for equity investments | — | (28,000 | ) | — | — | (28,000 | ) | |||||||||||||
Investments in and advances to affiliates | 125,856 | (156,659 | ) | 30,857 | (54 | ) | — | |||||||||||||
Net cash flows from investing activities | (141,883 | ) | (268,158 | ) | 16,647 | (54 | ) | (393,448 | ) | |||||||||||
Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of senior unsecured notes | 343,769 | — | — | — | 343,769 | |||||||||||||||
Proceeds from new borrowing of Credit Facility | 400,000 | — | — | — | 400,000 | |||||||||||||||
Principal payments on Credit Facility | (215,313 | ) | — | — | — | (215,313 | ) | |||||||||||||
Financing costs associated with Credit Facility and senior unsecured notes | (2,203 | ) | — | — | — | (2,203 | ) | |||||||||||||
Repurchase of convertible debt | (172,211 | ) | — | — | — | (172,211 | ) | |||||||||||||
Repurchases of common stock | (195,004 | ) | — | — | — | (195,004 | ) | |||||||||||||
Principal payments on capital lease obligations and other debt | (14,200 | ) | (217 | ) | (417 | ) | — | (14,834 | ) | |||||||||||
Excess tax benefits related to share-based payments | 3,698 | — | — | — | 3,698 | |||||||||||||||
Proceeds from exercise of stock options, net | 8,460 | — | — | — | 8,460 | |||||||||||||||
Net cash flows from financing activities | 156,996 | (217 | ) | (417 | ) | — | 156,362 | |||||||||||||
Effect of exchange rate changes on cash | (105 | ) | — | 1,643 | — | 1,538 | ||||||||||||||
Increase (decrease) in cash and cash equivalents(1) | 72,761 | 9,639 | 5,789 | 354 | 88,543 | |||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Beginning of period | 242,489 | — | 40,759 | (354 | ) | 282,894 | ||||||||||||||
End of period | $ | 315,250 | $ | 9,639 | $ | 46,548 | $ | — | $ | 371,437 | ||||||||||
-1 | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income | $ | 150,230 | $ | 141,327 | $ | (6,355 | ) | $ | (134,972 | ) | $ | 150,230 | ||||||||
Adjustments to reconcile net income to net cash flows: | ||||||||||||||||||||
Depreciation and other | 30,836 | 144,805 | 3,506 | — | 179,147 | |||||||||||||||
Amortization of intangible assets and deferred financing fees | 4,472 | 3,032 | — | — | 7,504 | |||||||||||||||
Share-based payments expense | 10,998 | 8,364 | — | — | 19,362 | |||||||||||||||
Excess tax benefits on share-based payments | (5,740 | ) | — | — | — | (5,740 | ) | |||||||||||||
Deferred income taxes | 18,578 | 70,607 | (1,612 | ) | — | 87,573 | ||||||||||||||
(Income) loss from equity method investments, net | 2,179 | 3,005 | — | — | 5,184 | |||||||||||||||
Non-cash interest on convertible debt | 7,109 | — | — | — | 7,109 | |||||||||||||||
Other | (1,390 | ) | (2,720 | ) | 10 | — | (4,100 | ) | ||||||||||||
Equity in (income) losses of subsidiaries | (141,327 | ) | 6,355 | — | 134,972 | — | ||||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | (371 | ) | (15,787 | ) | (903 | ) | — | (17,061 | ) | |||||||||||
Content library | (673 | ) | (27,079 | ) | (2,941 | ) | — | (30,693 | ) | |||||||||||
Prepaid expenses and other current assets | 1,386 | (8,159 | ) | (190 | ) | — | (6,963 | ) | ||||||||||||
Other assets | 39 | 848 | (29 | ) | — | 858 | ||||||||||||||
Accounts payable | 815 | 55,671 | 1,946 | (184 | ) | 58,248 | ||||||||||||||
Accrued payable to retailers | 7,432 | 1,025 | 2,004 | — | 10,461 | |||||||||||||||
Other accrued liabilities | (5,008 | ) | 7,520 | 275 | — | 2,787 | ||||||||||||||
Net cash flows from operating activities | 79,565 | 388,814 | (4,289 | ) | (184 | ) | 463,906 | |||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (64,423 | ) | (130,672 | ) | (12,959 | ) | — | (208,054 | ) | |||||||||||
Proceeds from sale of property and equipment | 302 | 782 | 47 | — | 1,131 | |||||||||||||||
Acquisition of NCR DVD kiosk business | — | (100,000 | ) | — | — | (100,000 | ) | |||||||||||||
Cash paid for equity investments | (10,877 | ) | (28,850 | ) | — | — | (39,727 | ) | ||||||||||||
Investments in and advances to affiliates | 96,990 | (122,272 | ) | 25,282 | — | — | ||||||||||||||
Net cash flows from investing activities | 21,992 | (381,012 | ) | 12,370 | — | (346,650 | ) | |||||||||||||
Financing Activities: | ||||||||||||||||||||
Principal payments on Credit Facility | (10,938 | ) | — | — | — | (10,938 | ) | |||||||||||||
Repurchase of convertible debt | (20,575 | ) | — | — | — | (20,575 | ) | |||||||||||||
Repurchases of common stock | (139,724 | ) | — | — | — | (139,724 | ) | |||||||||||||
Principal payments on capital lease obligations and other debt | (8,226 | ) | (7,802 | ) | (364 | ) | — | (16,392 | ) | |||||||||||
Excess tax benefits related to share-based payments | 5,740 | — | — | — | 5,740 | |||||||||||||||
Proceeds from exercise of stock options, net | 4,592 | — | — | — | 4,592 | |||||||||||||||
Net cash flows from financing activities | (169,131 | ) | (7,802 | ) | (364 | ) | — | (177,297 | ) | |||||||||||
Effect of exchange rate changes on cash | (196 | ) | — | 1,276 | — | 1,080 | ||||||||||||||
Increase (decrease) in cash and cash equivalents(1) | (67,770 | ) | — | 8,993 | (184 | ) | (58,961 | ) | ||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Beginning of period | 310,259 | — | 31,766 | (170 | ) | 341,855 | ||||||||||||||
End of period | $ | 242,489 | $ | — | $ | 40,759 | $ | (354 | ) | $ | 282,894 | |||||||||
-1 | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income | $ | 103,883 | $ | 102,021 | $ | 6,218 | $ | (108,239 | ) | $ | 103,883 | |||||||||
Adjustments to reconcile net income to net cash flows from operating activities from continuing operations: | ||||||||||||||||||||
Depreciation and other | 26,370 | 116,106 | 3,002 | — | 145,478 | |||||||||||||||
Amortization of intangible assets and deferred financing fees | 4,990 | 192 | — | — | 5,182 | |||||||||||||||
Share-based payments expense | 8,498 | 7,713 | — | — | 16,211 | |||||||||||||||
Excess tax benefits on share-based payments | (2,471 | ) | — | — | — | (2,471 | ) | |||||||||||||
Deferred income taxes | 14,057 | 44,362 | 1,657 | — | 60,076 | |||||||||||||||
Loss from discontinued operations, net of tax(1) | 11,733 | (729 | ) | 64 | — | 11,068 | ||||||||||||||
Loss from equity method investments, net | 1,591 | — | — | — | 1,591 | |||||||||||||||
Non-cash interest on convertible debt | 6,551 | — | — | — | 6,551 | |||||||||||||||
Other | (684 | ) | 589 | — | — | (95 | ) | |||||||||||||
Equity in (income) losses of subsidiaries | (103,090 | ) | (5,149 | ) | — | 108,239 | — | |||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | 432 | (15,504 | ) | (217 | ) | — | (15,289 | ) | ||||||||||||
Content library | (436 | ) | (1,626 | ) | — | — | (2,062 | ) | ||||||||||||
Prepaid expenses and other current assets | (2,718 | ) | (2,178 | ) | 27 | — | (4,869 | ) | ||||||||||||
Other assets | 358 | 1,411 | — | — | 1,769 | |||||||||||||||
Accounts payable | 5,977 | 6,915 | (172 | ) | (170 | ) | 12,550 | |||||||||||||
Accrued payable to retailers | 7,968 | 17,993 | 4,865 | — | 30,826 | |||||||||||||||
Other accrued liabilities | 7,132 | 26,002 | 2,983 | — | 36,117 | |||||||||||||||
Net cash flows from operating activities | 90,141 | 298,118 | 18,427 | (170 | ) | 406,516 | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (67,409 | ) | (109,492 | ) | (2,335 | ) | — | (179,236 | ) | |||||||||||
Proceeds from sale of property and equipment | 193 | 445 | 57 | — | 695 | |||||||||||||||
Proceeds from sale of businesses, net | 8,220 | — | — | — | 8,220 | |||||||||||||||
Cash paid for equity investments | (4,912 | ) | — | — | — | (4,912 | ) | |||||||||||||
Investments in and advances to affiliates | 184,264 | (173,452 | ) | (10,812 | ) | — | — | |||||||||||||
Net cash flows from investing activities | 120,356 | (282,499 | ) | (13,090 | ) | — | (175,233 | ) | ||||||||||||
Financing Activities: | ||||||||||||||||||||
Principal payments on capital lease obligations and other debt | (5,396 | ) | (22,480 | ) | (326 | ) | — | (28,202 | ) | |||||||||||
Borrowings from term loan | 175,000 | — | — | — | 175,000 | |||||||||||||||
Principal payments on credit facility | (154,375 | ) | — | — | — | (154,375 | ) | |||||||||||||
Financing costs associated with Credit Facility and senior unsecured notes | (4,196 | ) | — | — | — | (4,196 | ) | |||||||||||||
Excess tax benefits related to share-based payments | 2,471 | — | — | — | 2,471 | |||||||||||||||
Repurchases of common stock | (63,349 | ) | — | — | — | (63,349 | ) | |||||||||||||
Proceeds from exercise of stock options | 3,261 | — | — | — | 3,261 | |||||||||||||||
Net cash flows from financing activities | (46,584 | ) | (22,480 | ) | (326 | ) | — | (69,390 | ) | |||||||||||
Effect of exchange rate changes on cash | 78 | (102 | ) | (430 | ) | — | (454 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 163,991 | (6,963 | ) | 4,581 | (170 | ) | 161,439 | |||||||||||||
Cash flows from discontinued operations:(1) | ||||||||||||||||||||
Operating cash flows | — | — | 9,678 | — | 9,678 | |||||||||||||||
Investing cash flows | — | — | (12,678 | ) | — | (12,678 | ) | |||||||||||||
Net cash flows from discontinued operations | — | — | (3,000 | ) | — | (3,000 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | 163,991 | (6,963 | ) | 1,581 | (170 | ) | 158,439 | |||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Beginning of period | 146,268 | 6,963 | 30,185 | — | 183,416 | |||||||||||||||
End of period | $ | 310,259 | $ | — | $ | 31,766 | $ | (170 | ) | $ | 341,855 | |||||||||
-1 | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. |
Organization_and_Business_Deta
Organization and Business (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 23, 2013 | |||
Kiosk | Redbox [Member] | Coinstar [Member] | New Ventures [Member] | ecoATM [Member] | ecoATM [Member] | ||||
Kiosk | Kiosk | Kiosk | Kiosk | Kiosk | |||||
Kiosks | 65,800 | [1],[2] | 44,000 | [1] | 20,900 | 900 | [2] | 800 | 700 |
Locations | 57,670 | [1],[2] | 36,400 | [1] | 20,600 | 670 | [2] | ' | ' |
[1] | As of December 31, 2013, no kiosks acquired from NCR remained in service. See Note 3: Business Combinations for more information on the NCR Asset Acquisition. | ||||||||
[2] | Includes approximately 700 kiosks acquired through the purchase of ecoATM, Inc. See Note 3: Business Combinations for more information. As of December 31, 2013, there were over 800 ecoATM kiosks in service. Excludes kiosks related to concepts discontinued during the fiscal year ended December 31, 2013, See Note 13: Discontinued Operations and Sale of Business. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Accounts Receivable) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting Policies [Abstract] | ' | ' | ' |
Amount expensed for uncollectible accounts | $177 | $417 | $455 |
Amount charged against the allowance | $0 | $0 | $0 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Coin-counting kiosks and components [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '2 years |
Coin-counting kiosks and components [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '10 years |
Redbox kiosks and components [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '3 years |
Redbox kiosks and components [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '5 years |
Computers and software [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '3 years |
Computers and software [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '5 years |
Office furniture and equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '5 years |
Office furniture and equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '7 years |
Leased vehicles [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '3 years |
Leased vehicles [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '6 years |
Leasehold improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '1 year |
Leasehold improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '11 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 22, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
concept | NCR Asset Acquisition [Member] | NCR Asset Acquisition [Member] | NCR Asset Acquisition [Member] | Depreciable Assets [Member] | Depreciable Assets [Member] | Convertible Debt [Member] | Convertible Debt [Member] | New Ventures [Member] | New Ventures [Member] | New Ventures [Member] | New Ventures [Member] | Domestic [Member] | Domestic [Member] | Foreign [Member] | Foreign [Member] | |||||||
concept | ||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Cash and cash equivalents | $371,437,000 | $282,894,000 | $341,855,000 | $183,416,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $199,000,000 | $123,300,000 | $15,300,000 | $18,300,000 | |||
Cash equivalents | 65,800,000 | 60,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Cash identified for settling accrued payable to retailer partners | 85,500,000 | 91,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Content library, period of amortization | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reduction in product cost, reported in direct operating expenses, resulting from change in accounting estimate | -1,575,277,000 | [1] | -1,498,819,000 | [1] | -1,280,237,000 | [1] | ' | ' | ' | ' | 21,700,000 | ' | ' | ' | ' | -29,433,000 | -1,317,000 | -235,000 | ' | ' | ' | ' |
Pretax benefit from change in accounting estimate | 174,792,000 | 150,230,000 | 103,883,000 | ' | ' | ' | ' | ' | 31,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Pretax benefit from change in accounting estimate, basic earnings per share (in dollars per share) | $6.42 | $4.96 | $3.40 | ' | ' | ' | ' | ' | $1.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Pretax benefit from change in accounting estimate, diluted earnings per share (in dollars per share) | $6.16 | $4.67 | $3.26 | ' | ' | ' | ' | ' | $1.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of discontinued concepts | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | |||
Convertible note payable, face value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest rate, per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | |||
Conversion price threshold for convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | $52.38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Common stock closing price exceeds percentage of conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of trading days considered for early conversion of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of consecutive trading days considered for early conversion of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Advertising costs | 13,700,000 | 13,500,000 | 15,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Share-based payment award vesting period, years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Cash paid for acquisition of assets | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Measurement period for purchase price allocation, number of months from acquisition date | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Retroactive adjustment to purchase price allocation, increase in value assigned to kiosks acquired | ' | ' | ' | ' | ' | $14,766,000 | $14,766,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | “Direct operating†excludes depreciation and other of $130.3 million, $127.2 million and $120.4 million for 2013, 2012, and 2011 respectively. |
Business_Combination_Schedule_
Business Combination (Schedule of ecoATM Considerations) (Details) (ecoATM [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jul. 23, 2013 |
ecoATM [Member] | ' |
Consideration Transferred: | ' |
Cash paid | $262,882 |
Replacement awards attributable to pre-combination services | 1,398 |
Total consideration transferred | 264,280 |
Acquisition date fair value of previously held equity interest | 76,359 |
Total consideration transferred and fair value of previously held equity interest | 340,639 |
Fair value of replacement awards attributable to post-combination services | $30,671 |
Business_Combination_Schedule_1
Business Combination (Schedule of ecoATM Purchase Price Allocation) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 23, 2013 |
In Thousands, unless otherwise specified | ecoATM [Member] | ||
Assets acquired: | ' | ' | ' |
Cash and cash equivalents | ' | ' | $18,846 |
Accounts receivable | ' | ' | 18 |
Prepaid expenses and other current assets | ' | ' | 4,450 |
Current deferred income taxes | ' | ' | 6,476 |
Property and equipment | ' | ' | 23,207 |
Intangible assets | ' | ' | 41,400 |
Goodwill | 559,307 | 295,094 | 264,213 |
Other long-term assets | ' | ' | 131 |
Total assets acquired | ' | ' | 358,741 |
Liabilities assumed: | ' | ' | ' |
Accounts payable | ' | ' | -3,755 |
Other accrued liabilities | ' | ' | -1,605 |
Long term deferred tax liabilities | ' | ' | -12,742 |
Total consideration transferred and fair value of previously held equity interest | ' | ' | $340,639 |
Business_Combination_Schedule_2
Business Combination (Schedule of ecoATM Purchase Price Allocation to Intangible Assets) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Jul. 23, 2013 |
Developed technology [Member] | ecoATM [Member] | ecoATM [Member] | ecoATM [Member] | ecoATM [Member] | |
Developed technology [Member] | Trade Name [Member] | Covenants Not To Compete [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Purchase Price | ' | $41,400 | $34,000 | $6,000 | $1,400 |
Estimated Useful Life in Years | '5 years | ' | '5 years | '5 years | '5 years |
Business_Combination_ecoATM_Ac
Business Combination (ecoATM Actual and Proforma Income (Details) (ecoATM [Member], USD $) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |||
ecoATM [Member] | ' | ' | ' | ' | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ||
Revenue | ' | ' | $31,824,000 | ' | ||
Operating loss | ' | ' | 14,538,000 | ' | ||
Pro forma information [Abstract] | ' | ' | ' | ' | ||
Pro-forma revenue | ' | ' | 2,330,195,000 | 2,212,107,000 | ||
Pro-forma income from continuing operations | ' | ' | 136,245,000 | [1] | 208,209,000 | [1] |
Acquisition costs | $4,000,000 | $1,700,000 | ' | ' | ||
[1] | Pro-forma income from continuing operations includes the acquisition costs of $1.7 million and $4.0 million recorded in the second and third quarters of 2013, respectively. |
Business_Combination_Schedule_3
Business Combination (Schedule Of NCR Purchase Price Allocation) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 22, 2012 |
In Thousands, unless otherwise specified | Preliminary [Member] | NCR Asset Acquisition [Member] | NCR Asset Acquisition [Member] | NCR Asset Acquisition [Member] | ||
Preliminary [Member] | ||||||
Assets acquired: | ' | ' | ' | ' | ' | ' |
Content library | ' | ' | ' | $4,330 | $4,330 | $4,330 |
Prepaid expenses | ' | ' | ' | 240 | 240 | 240 |
Deferred income taxes | ' | ' | ' | 1,500 | 1,500 | 1,500 |
Property and equipment | ' | ' | ' | 23,896 | 23,896 | 9,130 |
Intangible assets | ' | ' | ' | 46,960 | 46,960 | 46,960 |
Goodwill | 559,307 | 295,094 | 309,860 | 27,344 | 27,344 | 42,110 |
Total assets acquired | ' | ' | ' | 104,270 | 104,270 | 104,270 |
Property and equipment, Adjustments | ' | ' | ' | 14,766 | 14,766 | ' |
Goodwill, Adjustments | ' | ' | ' | -14,766 | -14,766 | ' |
Liabilities assumed: | ' | ' | ' | ' | ' | ' |
Accrued liabilities | ' | ' | ' | -4,270 | -4,270 | -4,270 |
Total consideration paid in cash | ' | ' | ' | $100,000 | $100,000 | $100,000 |
Business_Combination_Schedule_4
Business Combination (Schedule Of NCR Purchase Price Allocated to Intangible Assets) (Details) (NCR Asset Acquisition [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jun. 22, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Purchase Price | $46,960 |
Retailer relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Purchase Price | 40,000 |
Estimated Useful Life in Years | '10 years |
Patents [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Purchase Price | 6,300 |
Estimated Useful Life in Years | '8 years |
Trademark and Trade name [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Purchase Price | 500 |
Estimated Useful Life in Years | '1 year |
Internal use software [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Purchase Price | $160 |
Estimated Useful Life in Years | '1 year |
Business_Combination_Narrative
Business Combination (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 23, 2013 | Jun. 22, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | |
ecoATM [Member] | NCR Asset Acquisition [Member] | NCR Asset Acquisition [Member] | NCR Asset Acquisition [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity interest acquired | ' | ' | ' | 77.00% | ' | ' | ' |
Acquisition costs | ' | ' | ' | $5,700,000 | ' | ' | ' |
Fair value of original and replacement awards | ' | ' | ' | 32,100,000 | ' | ' | ' |
Replacement awards attributable to pre-combination services | ' | ' | ' | 1,398,000 | ' | ' | ' |
Previous held percentage of equity interest in acquiree | ' | ' | ' | 23.00% | ' | ' | ' |
Acquisition date fair value of previously held equity interest | ' | ' | ' | 76,359,000 | ' | ' | ' |
Gain on previously held equity interest on ecoATM | 68,376,000 | 0 | 0 | 68,400,000 | ' | ' | ' |
Goodwill | 559,307,000 | 295,094,000 | ' | 264,213,000 | ' | 27,344,000 | 27,344,000 |
Cash paid | ' | ' | ' | 262,882,000 | 100,000,000 | ' | ' |
Measurement period for purchase price allocation, number of months from acquisition date | ' | ' | ' | ' | '12 months | ' | ' |
Retroactive adjustment to purchase price allocation, increase in value assigned to kiosks acquired | ' | ' | ' | ' | ' | $14,766,000 | $14,766,000 |
The forecasted future cash flows discounted rate | ' | ' | ' | ' | 11.00% | ' | ' |
Estimated weighted-average useful life of the acquired identifiable intangible assets | ' | ' | ' | ' | '9 years 7 months 6 days | ' | ' |
Property_and_Equipment_Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Kiosks and components | $1,105,761 | $1,041,755 |
Computers, servers, and software | 226,389 | 195,756 |
Office furniture and equipment | 7,260 | 6,538 |
Vehicles | 6,553 | 7,278 |
Leasehold improvements | 23,198 | 19,743 |
Property and equipment, at cost | 1,369,161 | 1,271,070 |
Accumulated depreciation and amortization | -848,296 | -684,946 |
Property and equipment, net | $520,865 | $586,124 |
Property_and_Equipment_Narrati
Property and Equipment (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jul. 23, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||
concept | New Ventures [Member] | ecoATM [Member] | Orango [Member] | NCR Kiosks [Member] | Depreciation and Other Expense [Member] | Direct Operating Expense [Member] | |||||||
concept | Orango [Member] | Orango [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Impairment charges | $32,732,000 | $2,600,000 | $2,700,000 | $32,732,000 | [1] | $0 | $0 | ' | ' | $5,551,000 | ' | $5,600,000 | $500,000 |
Number of discontinued concepts | ' | ' | ' | 4 | ' | ' | 3 | ' | ' | ' | ' | ' | |
Net book value of NCR kiosks sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,400,000 | ' | ' | |
Proceeds from sale of entity | ' | ' | ' | 13,344,000 | 1,131,000 | 695,000 | ' | ' | ' | 11,800,000 | ' | ' | |
Property and equipment measured at fair value | ' | ' | ' | ' | ' | ' | ' | $23,207,000 | ' | ' | ' | ' | |
[1] | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Goodwill) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 22, 2012 | Sep. 30, 2013 | Jul. 23, 2013 |
In Thousands, unless otherwise specified | Preliminary [Member] | NCR Asset Acquisition [Member] | NCR Asset Acquisition [Member] | NCR Asset Acquisition [Member] | ecoATM [Member] | ecoATM [Member] | ||
Preliminary [Member] | ||||||||
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill balance, beginning of year | $559,307 | $295,094 | $309,860 | ' | ' | $42,110 | ' | $264,213 |
Purchase price allocation adjustment, retroactive adjustment to goodwill | ' | ' | ' | -14,766 | -14,766 | ' | ' | ' |
Goodwill from acquisition of ecoATM | ' | ' | ' | ' | ' | ' | 264,213 | ' |
Goodwill balance, end of year | $559,307 | $295,094 | $309,860 | $27,344 | $27,344 | $42,110 | ' | $264,213 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Goodwill by Segment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Goodwill | $559,307 | $295,094 |
Redbox [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 138,743 | 138,743 |
Coinstar [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 156,351 | 156,351 |
New Ventures [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | $264,213 | $0 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Gross Amount Of Other Intangible Assets And The Related Accumulated Amortization) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, net | $79,383 | $48,969 |
Retailer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, gross | 53,295 | 53,344 |
Intangible assets, accumulated amortization | -17,768 | -11,518 |
Intangible assets, net | 35,527 | 41,826 |
Retailer relationships [Member] | Minimum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '5 years | ' |
Retailer relationships [Member] | Maximum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '10 years | ' |
Developed technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '5 years | ' |
Intangible assets, gross | 34,000 | 0 |
Intangible assets, accumulated amortization | -2,833 | 0 |
Intangible assets, net | 31,167 | 0 |
Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, gross | 16,800 | 9,404 |
Intangible assets, accumulated amortization | -4,111 | -2,261 |
Intangible assets, net | $12,689 | $7,143 |
Other [Member] | Minimum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '1 year | ' |
Other [Member] | Maximum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '40 years | ' |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets (Amortization Expenses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total amortization of intangible assets | $10,933 | $5,378 | $2,740 |
Retailer relationships [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total amortization of intangible assets | 6,250 | 4,456 | 2,457 |
Developed technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total amortization of intangible assets | 2,833 | 0 | 283 |
Other [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total amortization of intangible assets | $1,850 | $922 | $0 |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible Assets (Expected Future Amortization) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | $14,681 | ' |
2015 | 13,231 | ' |
2016 | 13,119 | ' |
2017 | 13,097 | ' |
2018 | 9,643 | ' |
Thereafter | 15,612 | ' |
Intangible assets, net | 79,383 | 48,969 |
Retailer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | 5,432 | ' |
2015 | 4,012 | ' |
2016 | 4,012 | ' |
2017 | 4,012 | ' |
2018 | 4,012 | ' |
Thereafter | 14,047 | ' |
Intangible assets, net | 35,527 | 41,826 |
Developed technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | 6,800 | ' |
2015 | 6,800 | ' |
2016 | 6,800 | ' |
2017 | 6,800 | ' |
2018 | 3,967 | ' |
Thereafter | 0 | ' |
Intangible assets, net | 31,167 | 0 |
Other Intangible Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | 2,449 | ' |
2015 | 2,419 | ' |
2016 | 2,307 | ' |
2017 | 2,285 | ' |
2018 | 1,664 | ' |
Thereafter | 1,565 | ' |
Intangible assets, net | $12,689 | $7,143 |
Goodwill_and_Other_Intangible_7
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jul. 23, 2013 |
NCR Asset Acquisition [Member] | NCR Asset Acquisition [Member] | ecoATM [Member] | ecoATM [Member] | |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Purchase price allocation adjustment, retroactive adjustment to goodwill | ($14,766) | ($14,766) | ' | ' |
Goodwill from acquisition of ecoATM | ' | ' | 264,213 | ' |
Increase in other intangible assets | $46,960 | $46,960 | ' | $41,400 |
Equity_Method_Investments_and_2
Equity Method Investments and Related Party Transactions (Equity Investments and Ownership Percentages) (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2012 | Feb. 29, 2012 |
In Thousands, unless otherwise specified | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Investment | $10,707 | ' | ' |
Redbox Instant By Verizon [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Investment | 8,709 | ' | ' |
Ownership Percentage | 35.00% | 35.00% | 35.00% |
SoloHealth, Inc. [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Investment | $1,998 | ' | ' |
Ownership Percentage | 10.00% | ' | ' |
Equity_Method_Investments_and_3
Equity Method Investments and Related Party Transactions (Schedule of Income (Loss) From Equity Method Investments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Trademark gain | ' | $0 | $19,500 | $0 |
Gain on previously held equity interest on ecoATM | ' | 68,376 | 0 | 0 |
Proportionate share of net loss of equity method investees | ' | -45,973 | -22,415 | -1,591 |
Amortization of differences in carrying amount and underlying equity in Redbox Instant by Verizon | ' | -2,475 | -2,269 | 0 |
Total income (loss) from equity method investments | ' | 19,928 | -5,184 | -1,591 |
Redbox Instant By Verizon [Member] | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Trademark gain | 19,500 | ' | ' | ' |
Proportionate share of net loss of equity method investees | ' | -42,660 | -20,236 | 0 |
Other Equity Investments [Member] | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Proportionate share of net loss of equity method investees | ' | ($3,313) | ($2,179) | ($1,591) |
Equity_Method_Investments_and_4
Equity Method Investments and Related Party Transactions (Summarized Financial Information of Equity Method Investees) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity Method Investment, Summarized Financial Information, Assets and Liabilities | ' | ' | ' |
Current assets | $32,832 | $29,857 | ' |
Noncurrent assets | 30,765 | 39,828 | ' |
Current liabilities | 46,706 | 15,822 | ' |
Long-term liabilities | 23,905 | 6,462 | ' |
Redeemable preferred stock | 23,542 | 23,696 | ' |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ' | ' | ' |
Revenue | 15,824 | 2,067 | 650 |
Cost of sales and service | 25,092 | 10,716 | 571 |
Net loss and loss from continuing operations | $134,911 | $58,510 | $4,337 |
Equity_Method_Investments_and_5
Equity Method Investments and Related Party Transactions (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 29, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Redbox Instant By Verizon [Member] | Redbox Instant By Verizon [Member] | Redbox Instant By Verizon [Member] | Redbox Instant By Verizon [Member] | Redbox Instant By Verizon [Member] | Redbox Instant By Verizon [Member] | Redbox Instant By Verizon [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership Percentage | ' | ' | ' | 35.00% | ' | ' | ' | 35.00% | 35.00% | ' |
Payments to acquire interest in the Joint Venture | ' | ' | ' | $14,000,000 | ' | ' | ' | ' | ' | ' |
Capital contribution to maintain certain ownership percentage | ' | ' | ' | 450,000,000 | ' | ' | ' | ' | ' | ' |
Ownership interest dilution cannot be below | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' |
Payments to acquire equity method investments | 28,000,000 | 39,727,000 | 4,912,000 | ' | 14,000,000 | 14,000,000 | 10,500,000 | ' | ' | ' |
Fair value of Redbox trademarks | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' |
Trademark gain | 0 | 19,500,000 | 0 | ' | ' | ' | ' | 19,500,000 | ' | ' |
The transaction related costs of joint venture | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' |
Loss from equity method investments and amortization of differences in carrying amount and underlying equity | ' | ' | ' | ' | ' | ' | ' | ' | 45,100,000 | 22,500,000 |
Due from related parties | ' | ' | ' | ' | ' | ' | ' | ' | $5,900,000 | $900,000 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities (Schedule of Prepaid Expenses and Other Current Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets and Other Liabilities Disclosure [Abstract] | ' | ' |
Income taxes receivable | $37,466 | $2,650 |
Spare parts | 18,975 | 11,683 |
Licenses | 4,568 | 2,887 |
Electronic devices inventory | 3,529 | 0 |
DVD cases and labels | 2,596 | 5,043 |
Prepaid rent | 1,302 | 326 |
Other | 16,262 | 7,097 |
Total prepaid and other current assets | $84,698 | $29,686 |
Prepaid_Expenses_and_Other_Cur3
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities (Schedule of Other Accrued Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets and Other Liabilities Disclosure [Abstract] | ' | ' |
Payroll related expenses | $33,852 | $39,469 |
Procurement cost for content library | 21,602 | 36,436 |
Business taxes | 22,939 | 23,301 |
Insurance | 13,379 | 8,714 |
Professional fees | 930 | 4,822 |
Service contract provider expenses | 8,134 | 3,560 |
Deferred rent expense | 5,713 | 3,191 |
Accrued interest expense | 7,015 | 1,450 |
Income tax payable | 0 | 826 |
Other | 20,563 | 24,356 |
Total other accrued liabilities | $134,127 | $146,125 |
Debt_and_Other_LongTerm_Liabil2
Debt and Other Long-Term Liabilities (Schedule Of Debt And Other Long-Term Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-term Debt, by Type Alternative [Abstract] | ' | ' |
Senior unsecured notes, current | $0 | ' |
Senior unsecured notes, long-term | 350,000 | ' |
Senior unsecured notes, total | 350,000 | ' |
Convertible debt, current | 49,702 | 0 |
Convertible debt, long-term | 0 | 172,810 |
Convertible debt, total | 49,702 | 172,810 |
Term loans under credit facility, current | 42,187 | 15,312 |
Term loans under credit facility, long-term | 302,188 | 144,375 |
Term loans under credit facility, total | 344,375 | 159,687 |
Asset retirement obligation, current | 0 | 0 |
Asset retirement obligations, long-term | 13,086 | 14,020 |
Asset retirement obligation, total | 13,086 | 14,020 |
Other liabilities, current | 3 | 217 |
Other liabilities, long-term | 12,082 | 9,974 |
Other liabilities, total | 12,085 | 10,191 |
Debt and other liabilities, current | 91,892 | 15,529 |
Debt and other liabilities, long-term | 677,356 | 341,179 |
Total debt and other liabilities | $769,248 | $356,708 |
Debt_and_Other_LongTerm_Liabil3
Debt and Other Long-Term Liabilities (Narrative Senior Unsecured Notes) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 12, 2013 | Mar. 12, 2013 | Mar. 12, 2013 | Mar. 12, 2013 | Mar. 12, 2013 | Mar. 12, 2013 | Mar. 12, 2013 | Mar. 12, 2013 | Sep. 30, 2013 | |
Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | ||||
Period, March 15, 2016 To March 14, 2017 [Member] | Period, March 15, 2017 To March 14, 2018 [Member] | Period, March 15, 2018 To March 15, 2019 [Member] | Period, March 12, 2013 To March 14, 2016 [Member] | Period, March 12, 2013 To March 14, 2016 [Member] | Period, March 12, 2013 To March 14, 2016 [Member] | Original Notes [Member] | Exchange Notes [Member] | |||||
Scenario One [Member] | Scenario Two [Member] | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior unsecured note, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $350,000,000 | $350,000,000 |
Interest rate, per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% |
Proceeds from issuance of senior unsecured notes | $343,769,000 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | $343,800,000 | ' |
Redemption price, percentage of principal amount | ' | ' | ' | ' | 103.00% | 101.50% | 100.00% | ' | 100.00% | 106.00% | ' | ' |
Maximum aggregate principal amount of notes redeemable | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' |
Minimum aggregate principal amount of Notes outstanding after redemption | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' |
Percentage of principal amount of notes required to be offered to purchase the Notes upon a change in control | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount of notes required to be offered to purchase the Notes if certain asset sales are made | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of aggregate principal amount of Notes required to declare the principal amount plus accrued and unpaid interest on the Notes to be immediately due and payable in event of default | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_and_Other_LongTerm_Liabil4
Debt and Other Long-Term Liabilities (Narrative Revolving Line of Credit and Term Loans) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jul. 15, 2011 | Dec. 31, 2013 | Jul. 15, 2011 | Dec. 10, 2013 | Jul. 15, 2011 | Dec. 31, 2013 | |
Credit Facility [Member] | Credit Facility [Member] | Revolving Line of Credit [Member] | Revolving Line of Credit [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility term | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | $600,000,000 | $450,000,000 | ' | $175,000,000 | $200,000,000 |
Line of credit facility, option to increase borrowing capacity | ' | ' | ' | 350,000,000 | 250,000,000 | ' | ' | ' | ' | ' |
Line of credit facility, increase in option to increase borrowing capacity | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' |
Line of credit facility total amount borrowed | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | ' |
Amount borrowed | 400,000,000 | 0 | 175,000,000 | ' | ' | ' | ' | 200,000,000 | ' | ' |
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' |
Interest rate on amounts outstanding under the credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.81% |
Debt_and_Other_LongTerm_Liabil5
Debt and Other Long-Term Liabilities (Schedule of Repayment of Credit Facility Term Loans) (Details) (Term Loan [Member]) | 3 Months Ended |
Dec. 31, 2013 | |
Last Business Day of March 2014 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 2.50% |
Last Business Day of June 2014 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 2.50% |
Last Business Day of September 2014 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 3.13% |
Last Business Day of December 2014 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 3.13% |
Last Business Day of March 2015 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 3.13% |
Last Business Day of June 2015 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 3.13% |
Last Business Day of September 2015 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 3.13% |
Last Business Day of December 2015 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 3.13% |
Last Business Day of March 2016 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 3.13% |
Last Business Day of June 2016 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Repayment Percentage Amount | 3.13% |
Debt_and_Other_LongTerm_Liabil6
Debt and Other Long-Term Liabilities (Schedule Of Term Loan Repayments) (Details) (Term Loan [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Term Loan [Member] | ' |
Line of Credit Facility [Line Items] | ' |
2014 | $42,187 |
2015 | 46,875 |
2016 | 255,313 |
Total | $344,375 |
Debt_and_Other_LongTerm_Liabil7
Debt and Other Long-Term Liabilities (Narrative Convertible Debt) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2009 | |
Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | ||||
debt | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Interest rate, per year | ' | ' | ' | 4.00% | ' | 4.00% |
Aggregate outstanding principal amount | ' | ' | ' | $51,148,000 | $184,983,000 | ' |
Effective interest rate at date of issuance | ' | ' | ' | 8.50% | ' | ' |
Conversion price threshold for convertible debt | ' | ' | ' | $52.38 | ' | ' |
Common stock closing price exceeds percentage of conversion price | ' | ' | ' | 130.00% | ' | ' |
Number of trading days considered for early conversion of notes | ' | ' | ' | '20 days | ' | ' |
Number of consecutive trading days considered for early conversion of notes | ' | ' | ' | '30 days | ' | ' |
Number of convertible senior note repurchased | ' | ' | ' | 133,835 | ' | ' |
Convertible senior note repurchased, face value | ' | ' | ' | 133,800,000 | ' | ' |
Cash paid for convertible senior note repurchase | 172,211,000 | 20,575,000 | 0 | 172,200,000 | ' | ' |
Common stock issued to convertible note holders | ' | ' | ' | 272,336 | ' | ' |
The loss from extinguishment of callable convertible debt | 6,013,000 | 0 | 0 | 6,000,000 | ' | ' |
Remaining unamortized discount | ' | ' | ' | $1,446,000 | $12,173,000 | ' |
Debt_and_Other_LongTerm_Liabil8
Debt and Other Long-Term Liabilities (Schedule Of Additional Information Of Convertible Debt) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Convertible Debt [Roll Forward] | ' | ' | ' |
Amortization of discount | $3,866 | $7,109 | $6,551 |
Convertible Debt [Member] | ' | ' | ' |
Convertible Debt [Roll Forward] | ' | ' | ' |
Outstanding, beginning of year - Principal | 184,983 | ' | ' |
Early extinguishments and debt conversion - Principal | -133,835 | ' | ' |
Outstanding, end of year - Principal | 51,148 | 184,983 | ' |
Outstanding, beginning of year - Discount | -12,173 | ' | ' |
Early extinguishments and debt conversion - Discount | 6,861 | ' | ' |
Amortization of discount | 3,866 | 7,109 | 6,551 |
Outstanding, end of year - Discount | -1,446 | -12,173 | ' |
Outstanding, beginning of year - Net | 172,810 | ' | ' |
Early extinguishments and debt conversion - Net | -126,974 | ' | ' |
Amortization of debt discount | 3,866 | ' | ' |
Outstanding, end of year - Net | $49,702 | $172,810 | ' |
Debt_and_Other_LongTerm_Liabil9
Debt and Other Long-Term Liabilities (Schedule Of Interest Expense Related To Convertible Debt) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt Instrument [Line Items] | ' | ' | ' |
Amortization of debt discount | $3,866 | $7,109 | $6,551 |
Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Contractual interest expense | 3,873 | 8,000 | 8,000 |
Amortization of debt discount | 3,866 | 7,109 | 6,551 |
Total interest expense related to the Convertible Notes | $7,739 | $15,109 | $14,551 |
Recovered_Sheet1
Debt and Other Long-Term Liabilities (Narrative Interest Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Long-term Debt, Unclassified [Abstract] | ' | ' | ' |
Interest expense | $37.10 | $20.30 | $26 |
Recovered_Sheet2
Debt and Other Long-Term Liabilities (Schedule of Other Long-Term Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Tenant improvement and deferred rent and other | $9,301 | $8,724 |
Unrecognized tax benefit | 2,781 | 1,250 |
Total other long-term liabilities | $12,082 | $9,974 |
Repurchases_of_Common_Stock_Su
Repurchases of Common Stock (Summary Of Authorized Stock Repurchases) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Summary Of Authorized Stock Repurchases [Roll Forward] | ' | ' | ' | ||
Authorized repurchase - as of January 1, 2013 | $133,640,000 | [1] | ' | ' | |
Additional board authorization | 250,000,000 | [1] | ' | ' | |
Proceeds from the exercise of stock options | 12,655,000 | 8,263,000 | 3,261,000 | ||
Repurchase of common stock | -195,004,000 | -139,724,000 | -63,349,000 | ||
Authorized repurchase - as of December 31, 2013 | 201,291,000 | [1] | 133,640,000 | [1] | ' |
Open Market Share Repurchase [Member] | ' | ' | ' | ||
Summary Of Authorized Stock Repurchases [Roll Forward] | ' | ' | ' | ||
Repurchase of common stock | -95,004,000 | ' | ' | ||
Discounted Share Buyback Agreement [Member] | ' | ' | ' | ||
Summary Of Authorized Stock Repurchases [Roll Forward] | ' | ' | ' | ||
Repurchase of common stock | ($100,000,000) | ' | ' | ||
[1] | In addition to these amounts, the repurchase program approved by our Board of Directors allows for the use of cash proceeds received from the exercise of stock options by our officers, directors, and employees. |
Repurchases_of_Common_Stock_Su1
Repurchases of Common Stock (Summary of Stock Repurchases During the Past Three Years) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Class of Stock Disclosures [Abstract] | ' | ' | ' |
Number of Shares Repurchased | 3,306,433 | 2,799,115 | 1,374,036 |
Number of Shares Repurchased, Past Three Years | 7,479,584 | ' | ' |
Average Price per Share | $58.98 | $49.92 | $46.10 |
Total Purchase Price | $195,004 | $139,724 | $63,349 |
Total Purchase Price, Past Three Years | $398,077 | ' | ' |
Repurchases_of_Common_Stock_Ac
Repurchases of Common Stock (Accelerated Stock Repurchase Program) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Oct. 29, 2013 |
Discounted Share Buyback Agreement [Member] | Discounted Share Buyback Agreement [Member] | ||||
Accelerated Share Repurchases [Line Items] | ' | ' | ' | ' | ' |
Total shares delivered from DSB Agreement | 3,306,433 | 2,799,115 | 1,374,036 | 1,514,000 | ' |
Average price per share less discount | ' | ' | ' | $66.06 | ' |
Total repurchase amount from DSB Agreement | ' | ' | ' | $100,000 | $100,000 |
Repurchases_of_Common_Stock_Na
Repurchases of Common Stock (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Oct. 29, 2013 | ||
Discounted Share Buyback Agreement [Member] | Discounted Share Buyback Agreement [Member] | |||
Class of Stock Disclosures [Abstract] | ' | ' | ' | |
Additional repurchase program, authorized amount | $250,000,000 | [1] | ' | ' |
Accelerated Share Repurchases [Line Items] | ' | ' | ' | |
Discounted share buyback agreement, notional amount | ' | $100,000,000 | $100,000,000 | |
[1] | In addition to these amounts, the repurchase program approved by our Board of Directors allows for the use of cash proceeds received from the exercise of stock options by our officers, directors, and employees. |
ShareBased_Payments_Summary_of
Share-Based Payments (Summary of Grant Information) (Details) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Share-based Compensation [Abstract] | ' |
Unissued common stock reserved for issuance under all plans (in shares) | 1,532 |
Shares available for future grants (in shares) | 1,284 |
ShareBased_Payments_Schedule_O
Share-Based Payments (Schedule Of Information Regarding Share-Based Payments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based payments expense | $16,831 | $19,362 | $16,211 |
Tax benefit on share-based compensation expense | 6,392 | 7,246 | 5,944 |
Per share weighted average grant date fair value of stock options granted | $53.90 | $27.24 | $20.67 |
Per share weighted average grant date fair value of restricted stock granted | $53.94 | $55.94 | $45.86 |
Total intrinsic value of stock options exercised | 10,567 | 10,509 | 2,291 |
Grant date fair value of restricted stock vested | 12,641 | 11,648 | 5,132 |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based payments expense | 1,566 | 2,654 | 2,880 |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based payments expense | 10,504 | 10,593 | 7,100 |
Content Arrangements [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based payments expense | $4,761 | $6,115 | $6,231 |
ShareBased_Payments_Schedule_O1
Share-Based Payments (Schedule Of Unrecognized Compensation Cost And Weighted-Average Remaining Life) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized Share-Based Payments Expense | $20,931 |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized Share-Based Payments Expense | 1,777 |
Weighted-Average Remaining Life | '2 years 4 months 24 days |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized Share-Based Payments Expense | 18,175 |
Weighted-Average Remaining Life | '2 years 3 months 18 days |
Content Arrangements [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized Share-Based Payments Expense | $979 |
Weighted-Average Remaining Life | '0 years 10 months 24 days |
ShareBased_Payments_Schedule_O2
Share-Based Payments (Schedule Of Weighted Average Valuation Assumptions) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation [Abstract] | ' |
Expected term (in years) | '6 years 3 months |
Expected stock price volatility | 45.00% |
Risk-free interest rate | 1.90% |
Expected dividend yield | 0.00% |
Recovered_Sheet3
Share-Based Payments (Summary Of Stock Option Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
OUTSTANDING, Beginning of year, shares | 669 |
Granted, shares | 94 |
Exercised, shares | -412 |
Cancelled, expired or forfeited, shares | -103 |
OUTSTANDING, Ending balance, shares | 248 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
OUTSTANDING, Beginning of year, weighted average exercise price | $34.86 |
Granted, weighted average exercise price | $53.90 |
Exercised, weighted average exercise price | $30.72 |
Cancelled, expired or forfeited, weighted average exercise price | $42.65 |
OUTSTANDING, Ending balance, weighted average exercise price | $45.72 |
ShareBased_Payments_Schedule_O3
Share-Based Payments (Schedule Of Information Regarding Stock Options Outstanding) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation [Abstract] | ' | ' |
Options outstanding, Number | 248 | 669 |
Options outstanding, weighted average per share exercise price | $45.72 | $34.86 |
Options outstanding, aggregate intrinsic value | $5,351 | ' |
Options outstanding, weighted average remaining contractual term (in years) | '5 years 9 months 7 days | ' |
Options exercisable, Number | 114 | ' |
Options exercisable, weighted average per share exercise price | $38.88 | ' |
Options exercisable, aggregate intrinsic value | $3,237 | ' |
Options exercisable, weighted average remaining contractual term (in years) | '3 years 3 months 15 days | ' |
ShareBased_Payments_Summary_Of1
Share-Based Payments (Summary Of Restricted Stock Award Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
NON-VESTED, Beginning of year, shares | 604 | ' | ' |
Granted (shares) | 437 | ' | ' |
Vested, shares | -230 | ' | ' |
Forfeited, shares | -214 | ' | ' |
NON-VESTED, end of period, shares | 597 | 604 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
NON-VESTED, Beginning of year, weighted average grant date fair value | $48.95 | ' | ' |
Per share weighted average grant date fair value of restricted stock granted | $53.94 | $55.94 | $45.86 |
Vested, weighted average grant date fair value | $46.58 | ' | ' |
Forfeited, weighted average grant date fair value | $51.56 | ' | ' |
NON-VESTED, end of period, weighted average grant date fair value | $52.58 | $48.95 | ' |
ShareBased_Payments_Schedule_O4
Share-Based Payments (Schedule Of Information Related To Restricted Stock Granted As Part Of DVD Arrangements) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted (shares) | 437,000 | ' |
Vested (shares) | 230,000 | ' |
Unvested (shares) | 597,000 | 604,000 |
Content Arrangements [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted (shares) | 493,348 | ' |
Vested (shares) | 344,346 | ' |
Unvested (shares) | 149,002 | ' |
Sony [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted (shares) | 193,348 | ' |
Vested (shares) | 164,346 | ' |
Unvested (shares) | 29,002 | ' |
Remaining Vesting Period | '7 months 6 days | ' |
Paramount [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted (shares) | 300,000 | ' |
Vested (shares) | 180,000 | ' |
Unvested (shares) | 120,000 | ' |
Remaining Vesting Period | '1 year | ' |
ShareBased_Payments_Rights_to_
Share-Based Payments (Rights to Receive Cash) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total expected expense | $20,931 |
ecoATM [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
2014 | 13,422 |
2015 | 4,911 |
2016 | 3,185 |
2017 | 561 |
Total expected expense | $22,079 |
ShareBased_Payments_Narrative_
Share-Based Payments (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended |
Jul. 23, 2013 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' |
Share-based payment award vesting period, years | ' | '4 years |
ecoATM [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' |
Fair value of original and replacement awards | $32,100,000 | ' |
Replacement awards attributable to pre-combination services | 1,398,000 | ' |
Expense recognized associated with the issuance of rights to receive cash | ' | $8,700,000 |
Awards Granted To Executives And Non Employee Directors [Member] | Stock Options [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' |
Share-based payment award vesting period, years | ' | '4 years |
Share-based payment award vesting period, expiration years | ' | '10 years |
Awards Granted To Employees And Executives [Member] | Restricted Stock [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' |
Share-based payment award vesting period, years | ' | '4 years |
Awards Granted To Non Employee Directors [Member] | Restricted Stock [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' |
Share-based payment award vesting period, years | ' | '1 year |
Performance-based Restricted Stock Awards Granted to Executives [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' |
Percentage of restricted stock awards vests two years from the date of grant | ' | 65.00% |
Percentage of the restricted stock award vests three years from the date of grant | ' | 35.00% |
Performance-based Restricted Stock Awards Granted to Executives [Member] | Restricted Stock [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' |
Share-based payment award vesting period, years | ' | '3 years |
Restructuring_Amount_Expected_
Restructuring (Amount Expected to be Incurred and Incurred to Date) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
concept | New Ventures [Member] | Redbox [Member] | Coinstar [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | |
concept | Severance [Member] | Severance [Member] | Severance [Member] | Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Number of discontinued concepts | 4 | 3 | ' | ' | ' | ' |
Total Estimated Expense | $7,326 | ' | $3,820 | $733 | $1,125 | $1,648 |
Incurred through December 31, 2013 | $6,804 | ' | $3,771 | $724 | $871 | $1,438 |
Restructuring_Schedule_of_Begi
Restructuring (Schedule of Beginning and End Liability Balance and Expense by Type) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Severance Expense [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring reserve, beginning balance | $0 |
Costs charged to expense | 5,366 |
Costs paid or otherwise settled | -2,858 |
Restructuring reserve, ending balance | 2,508 |
Severance Expense [Member] | General and administrative [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Costs charged to expense | 4,495 |
Severance Expense [Member] | Loss from discontinued operations, net of tax [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Costs charged to expense | 871 |
Other Expenses [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring reserve, beginning balance | 0 |
Costs charged to expense | 1,438 |
Costs paid or otherwise settled | -20 |
Restructuring reserve, ending balance | 1,418 |
Other Expenses [Member] | General and administrative [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Costs charged to expense | 0 |
Other Expenses [Member] | Loss from discontinued operations, net of tax [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Costs charged to expense | $1,438 |
Income_Taxes_from_Continuing_O2
Income Taxes from Continuing Operations (Schedule Of Income from Continuing Operations Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. operations | $258,665 | $262,695 | $193,213 |
Foreign operations | -16,097 | -4,302 | 4,644 |
Income from continuing operations before income taxes | $242,568 | $258,393 | $197,857 |
Income_Taxes_from_Continuing_O3
Income Taxes from Continuing Operations (Schedule Of Components Of Income Tax Expense Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Current U.S. Federal | $39,272 | $0 | $0 |
Current State and local | 10,159 | 4,142 | 9,845 |
Current Foreign | -424 | 7 | 375 |
Total current income tax expense | 49,007 | 4,149 | 10,220 |
Deferred: | ' | ' | ' |
Deferred U.S Federal | -4,169 | 87,375 | 63,453 |
Deferred State and local | -5,726 | 7,938 | 612 |
Deferred Foreign | -4,635 | -1,521 | 638 |
Total deferred income tax expense | -14,530 | 93,792 | 64,703 |
Total income tax expense | $34,477 | $97,941 | $74,923 |
Income_Taxes_from_Continuing_O4
Income Taxes from Continuing Operations (Schedule Of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S Federal tax expense at statutory rates | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 4.20% | 4.00% | 4.30% |
Federal and state credits | -0.90% | -0.80% | -0.60% |
Recognition of Outside Basis Differences | -16.70% | 0.00% | 0.00% |
Valuation Allowance | 2.40% | 0.00% | 0.00% |
Non-taxable gain related to acquisition of ecoATM | -10.00% | 0.00% | 0.00% |
Other | 0.20% | -0.30% | -0.90% |
Effective tax rate | 14.20% | 37.90% | 37.80% |
Income_Taxes_from_Continuing_O5
Income Taxes from Continuing Operations (Schedule of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in the balance of unrecognized tax benefits [Roll Forward] | ' | ' | ' |
Balance, beginning of the year | $2,383 | $2,455 | $1,821 |
Additions based on tax positions related to the current year | 824 | 0 | 315 |
Additions for tax positions related to prior years | 18 | 251 | 420 |
Reductions for tax positions related to prior years | -257 | -71 | 0 |
Reductions from lapse of applicable statue of limitations | -49 | -252 | 0 |
Settlements | -138 | 0 | -101 |
Balance, end of year | $2,781 | $2,383 | $2,455 |
Income_Taxes_from_Continuing_O6
Income Taxes from Continuing Operations (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Income tax loss carryforwards | $7,347 | $20,356 |
Capital loss carryforwards | 5,917 | 0 |
Credit carryforwards | 2,289 | 9,226 |
Accrued liabilities and allowances | 14,929 | 18,455 |
Stock-based compensation | 12,547 | 12,783 |
Intangible assets | 17,252 | 14,004 |
Investment basis | 3,968 | 0 |
Other | 2,148 | 6,175 |
Gross deferred tax assets | 66,397 | 80,999 |
Less: Valuation Allowance | -6,898 | 0 |
Total deferred tax assets | 59,499 | 80,999 |
Deferred tax liabilities: | ' | ' |
Property and equipment | -93,407 | -115,381 |
Product costs | -40,757 | -36,837 |
Investment basis | 0 | -6,906 |
Convertible debt interest | -552 | -5,066 |
Total deferred tax liabilities | -134,716 | -164,190 |
Net deferred tax liabilities | ($75,217) | ($83,191) |
Income_Taxes_from_Continuing_O7
Income Taxes from Continuing Operations (Schedule Of Deferred Tax Assets Valuation Allowance) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Increase (decrease) in valuation allowance | $6,898 | $0 | ($8,947) |
Income_Taxes_from_Continuing_O8
Income Taxes from Continuing Operations (Schedule Of Operating Loss Carry Forwards) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Operating Loss Carryforwards [Line Items] | ' | ' |
Deferred tax assets related to net operating loss carryforwards | $7,347 | $20,356 |
Federal [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | 4,109 | ' |
Deferred tax assets related to net operating loss carryforwards | 1,438 | ' |
State [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | 63,017 | ' |
Deferred tax assets related to net operating loss carryforwards | 3,151 | ' |
Foreign [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | 10,540 | ' |
Deferred tax assets related to net operating loss carryforwards | $2,758 | ' |
Income_Taxes_from_Continuing_O9
Income Taxes from Continuing Operations (Schedule Of Tax Credit Carry Forward) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Tax Credit Carryforward [Line Items] | ' | ' |
Tax credits | $2,289 | $9,226 |
Illinois state tax credits [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax credits | 1,562 | ' |
California state tax credits [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax credits | $727 | ' |
Recovered_Sheet4
Income Taxes from Continuing Operations (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 |
ecoATM [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Income tax benefit related to the recognition of a worthless stock deduction from an outside basis difference in a corporate subsidiary | $16.70 | ' | ' | ' |
Tax benefit related to gain on previously held equity interest on ecoATM | ' | ' | ' | 24.3 |
One-time tax benefit | ' | 17.8 | ' | ' |
Reduction in effective tax rate | ' | ' | 24.30% | ' |
Undistributed earnings of foreign operations, upon which U.S. income taxes have not been provided | $15.60 | ' | $15.60 | ' |
Discontinued_Operations_and_Sa2
Discontinued Operations and Sale of Business (Schedule of Asset Impairment Charges) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | |
Impairment expense | $32,732 | $2,600 | $2,700 | $32,732 | [1] | $0 | $0 |
Rubi [Member] | ' | ' | ' | ' | ' | ' | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | |
Impairment expense | 21,317 | ' | ' | ' | ' | ' | |
Orango [Member] | ' | ' | ' | ' | ' | ' | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | |
Impairment expense | 5,551 | ' | ' | ' | ' | ' | |
Crisp Market [Member] | ' | ' | ' | ' | ' | ' | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | |
Impairment expense | 289 | ' | ' | ' | ' | ' | |
Star Studio [Member] | ' | ' | ' | ' | ' | ' | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | |
Impairment expense | 2,786 | ' | ' | ' | ' | ' | |
Corporate Assets [Member] | ' | ' | ' | ' | ' | ' | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | |
Impairment expense | $2,789 | ' | ' | ' | ' | ' | |
[1] | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. |
Discontinued_Operations_and_Sa3
Discontinued Operations and Sale of Business (Assets And Liabilities Of Discontinued Operations) (Details) (Money Transfer Business [Member], USD $) | Jun. 09, 2011 |
In Thousands, unless otherwise specified | |
Money Transfer Business [Member] | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Cash and cash equivalents | $57,893 |
Accounts receivable, net | 33,185 |
Other current assets | 13,560 |
Property, plant and equipment, net | 4,066 |
Goodwill, intangible, and other assets | 8,162 |
Total assets | 116,866 |
Accounts payable and payable to agents | 65,464 |
Accrued liabilities | 13,062 |
Total liabilities | 78,526 |
Net assets sold | $38,340 |
Discontinued_Operations_and_Sa4
Discontinued Operations and Sale of Business (Schedule Of Discontinued Operations Included In The Consolidated Statements Of Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue | $4,399 | $2,159 | $49,042 |
Pre-tax gain (loss) from discontinued operations | -54,395 | -16,647 | -12,475 |
Loss on disposal activities | 0 | 0 | -11,070 |
Loss from discontinued operations before income tax | -54,395 | -16,647 | -23,545 |
Income tax benefit | 21,096 | 6,425 | 4,494 |
Loss from discontinued operations, net of tax | -33,299 | -10,222 | -19,051 |
Amount of goodwill and other intangible assets disposed | 0 | 0 | 8,037 |
Cash generated from the sale of discontinued operations | 0 | 0 | 8,220 |
Rubi, Crisp Market, Orango and Star Studio [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue | 4,399 | 2,159 | 1,326 |
Pre-tax gain (loss) from discontinued operations | -54,395 | -16,647 | -13,129 |
Loss on disposal activities | 0 | 0 | 0 |
Money Transfer Business [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue | 0 | 0 | 47,716 |
Pre-tax gain (loss) from discontinued operations | 0 | 0 | 654 |
Loss on disposal activities | $0 | $0 | ($11,070) |
Discontinued_Operations_and_Sa5
Discontinued Operations and Sale of Business (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 09, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | ||
concept | Money Transfer Business [Member] | Money Transfer Business [Member] | Entertainment Business [Member] | New Ventures [Member] | |||||||
concept | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Impairment expense | $32,732,000 | $2,600,000 | $2,700,000 | $32,732,000 | [1] | $0 | $0 | ' | ' | ' | ' |
Inventory write-off | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | |
Number of discontinued concepts | ' | ' | ' | 4 | ' | ' | ' | ' | ' | 3 | |
Cash received from sale of business | ' | ' | ' | ' | ' | ' | ' | 19,500,000 | ' | ' | |
Gross carrying value of notes receivable | ' | ' | ' | ' | ' | ' | ' | 29,500,000 | ' | ' | |
Additional loan to Sigue that may be required as a part of sale | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | |
Net carrying value of notes receivable | 0 | ' | ' | 0 | 26,731,000 | ' | ' | ' | ' | ' | |
Estimated value of worthless stock deduction taken in connection with divestiture, included in income tax benefit from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $4,100,000 | ' | |
[1] | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share Diluted [Line Items] | ' | ' | ' |
Weighted average shares used for basic EPS | 27,216 | 30,305 | 30,520 |
Dilutive effect of stock options and other share-based awards | 447 | 598 | 609 |
Dilutive effect of convertible debt | 718 | 1,271 | 740 |
Weighted average shares used for diluted EPS | 28,381 | 32,174 | 31,869 |
Stock options and share-based awards [Member] | ' | ' | ' |
Earnings Per Share Diluted [Line Items] | ' | ' | ' |
Stock options and share-based awards not included in diluted EPS calculation because their effect would be antidilutive | 14 | 139 | 108 |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | |||
Foreign currency translation adjustment, before-tax amount | $856 | [1] | $1,048 | [1] | ($255) | [1],[2] |
Foreign currency translation adjustment, tax (expense) or benefit | 0 | 0 | 0 | |||
Foreign currency translation adjustment, net-of-tax amount | 856 | [3] | 1,048 | [4] | -255 | |
Reclassification of interest rate hedges to interest expense, before-tax amount | 0 | 0 | 896 | [5] | ||
Reclassification of interest rate hedges to interest expense, tax (expense) or benefit | ' | ' | -349 | [5] | ||
Reclassification of interest rate hedges to interest expense, net-of-tax amount | ' | ' | 547 | [5] | ||
Gain (loss) on short-term investment, before-tax amount | 0 | 0 | -20 | |||
Gain (loss) on short-term investment, tax (expense) or benefit | ' | ' | 7 | |||
Gain (loss) on short-term investment, net-of-tax amount | ' | ' | -13 | |||
Other comprehensive income, before-tax amount | 856 | 1,048 | 621 | |||
Other comprehensive income (loss), tax (expense) or benefit | 0 | 0 | -342 | |||
Other comprehensive income, net of tax | $856 | [6] | $1,048 | [6] | $279 | [6] |
[1] | Foreign currency translation adjustment had no tax effect in 2013, 2012, or 2011. | |||||
[2] | Foreign currency translation adjustment had no tax effect in 2011. | |||||
[3] | Foreign currency translation adjustment had no tax effect in 2013. | |||||
[4] | Foreign currency translation adjustment had no tax effect in 2012. | |||||
[5] | At December 31, 2010 we had an interest rate swap agreement with Wells Fargo Bank to hedge against the variable-rate interest payments on our revolving Credit Facility which expired on March 20, 2011. At December 31, 2010 the fair value of this agreement was a liability of $0.9 million which was reversed from comprehensive income and recognized as interest expense in our Consolidated Statements of Comprehensive Income in the first quarter of 2011. | |||||
[6] | Foreign currency translation adjustment has no tax effect for the years ended December 31, 2013, 2012, and 2011. |
Business_Segments_and_Enterpri2
Business Segments and Enterprise-Wide Information (Schedule Of Segment Performance) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Revenue | $2,306,601 | $2,199,884 | $1,844,046 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 1,575,277 | [1] | 1,498,819 | [1] | 1,280,237 | [1] |
Marketing | 32,402 | 25,979 | 28,450 | |||
Research and development | 13,084 | 6,757 | 7,551 | |||
General and administrative | 221,776 | 204,519 | 157,422 | |||
Segment operating income (loss) | 464,062 | 463,810 | 370,386 | |||
Less: depreciation and amortization | -203,094 | -184,405 | -147,372 | |||
Operating income | 260,968 | 279,405 | 223,014 | |||
Income (loss) from equity method investments, net | 19,928 | -5,184 | -1,591 | |||
Interest expense, net | -32,801 | -15,648 | -23,822 | |||
Other, net | -5,527 | -180 | 256 | |||
Income from continuing operations before income taxes | 242,568 | 258,393 | 197,857 | |||
Redbox [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Revenue | 1,974,531 | 1,908,773 | 1,561,598 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 1,383,646 | 1,340,899 | 1,134,167 | |||
Marketing | 23,010 | 20,497 | 22,041 | |||
Research and development | 78 | 739 | 74 | |||
General and administrative | 166,117 | 159,885 | 120,384 | |||
Segment operating income (loss) | 401,680 | 386,753 | 284,932 | |||
Less: depreciation and amortization | -162,637 | -148,068 | -115,430 | |||
Operating income | 239,043 | 238,685 | 169,502 | |||
Income (loss) from equity method investments, net | 0 | 0 | 0 | |||
Interest expense, net | 0 | 0 | 0 | |||
Other, net | 0 | 0 | 0 | |||
Income from continuing operations before income taxes | 239,043 | 238,685 | 169,502 | |||
Coinstar [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Revenue | 300,218 | 290,761 | 282,382 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 158,562 | 155,740 | 145,362 | |||
Marketing | 6,244 | 4,938 | 6,142 | |||
Research and development | 6,962 | 4,455 | 6,542 | |||
General and administrative | 25,944 | 26,367 | 23,370 | |||
Segment operating income (loss) | 102,506 | 99,261 | 100,966 | |||
Less: depreciation and amortization | -33,921 | -36,108 | -31,922 | |||
Operating income | 68,585 | 63,153 | 69,044 | |||
Income (loss) from equity method investments, net | 0 | 0 | 0 | |||
Interest expense, net | 0 | 0 | 0 | |||
Other, net | 0 | 0 | 0 | |||
Income from continuing operations before income taxes | 68,585 | 63,153 | 69,044 | |||
New Ventures [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Revenue | 31,852 | 350 | 66 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 29,433 | 1,317 | 235 | |||
Marketing | 1,589 | 478 | 217 | |||
Research and development | 4,669 | 1,229 | 617 | |||
General and administrative | 15,551 | 6,283 | 4,529 | |||
Segment operating income (loss) | -19,390 | -8,957 | -5,532 | |||
Less: depreciation and amortization | -6,536 | -229 | -20 | |||
Operating income | -25,926 | -9,186 | -5,552 | |||
Income (loss) from equity method investments, net | 0 | 0 | 0 | |||
Interest expense, net | 0 | 0 | 0 | |||
Other, net | 0 | 0 | 0 | |||
Income from continuing operations before income taxes | -25,926 | -9,186 | -5,552 | |||
Corporate Unallocated [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Revenue | 0 | 0 | 0 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 3,636 | 863 | 473 | |||
Marketing | 1,559 | 66 | 50 | |||
Research and development | 1,375 | 334 | 318 | |||
General and administrative | 14,164 | 11,984 | 9,139 | |||
Segment operating income (loss) | -20,734 | -13,247 | -9,980 | |||
Less: depreciation and amortization | 0 | 0 | 0 | |||
Operating income | -20,734 | -13,247 | -9,980 | |||
Income (loss) from equity method investments, net | 19,928 | -5,184 | -1,591 | |||
Interest expense, net | -32,801 | -15,648 | -23,822 | |||
Other, net | -5,527 | -180 | 256 | |||
Income from continuing operations before income taxes | ($39,134) | ($34,259) | ($35,137) | |||
[1] | “Direct operating†excludes depreciation and other of $130.3 million, $127.2 million and $120.4 million for 2013, 2012, and 2011 respectively. |
Business_Segments_and_Enterpri3
Business Segments and Enterprise-Wide Information (Schedule Of Contributions By Major Customers) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Wal-Mart Stores Inc. [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenue contributed by major customers | 15.30% | 16.00% | 17.50% |
Walgreen Co. [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenue contributed by major customers | 14.60% | 16.00% | 16.00% |
The Kroger Company [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenue contributed by major customers | 10.00% | 10.70% | 11.20% |
Business_Segments_and_Enterpri4
Business Segments and Enterprise-Wide Information (Schedule of Revenue and Long-Lived Assets by Geographic Location) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenue | $2,306,601 | $2,199,884 | $1,844,046 |
Long-Lived Assets | 1,190,390 | 1,006,218 | 815,847 |
U.S. [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenue | 2,254,790 | 2,154,943 | 1,801,025 |
Long-Lived Assets | 1,146,616 | 975,334 | 798,840 |
All other [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenue | 51,811 | 44,941 | 43,021 |
Long-Lived Assets | $43,774 | $30,884 | $17,007 |
Retirement_Plans_Narrative_Det
Retirement Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ' | ' | ' |
Company contribution to plan | $4.90 | $4 | $3.20 |
Fair_Value_Assets_And_Liabilit
Fair Value (Assets And Liabilities Measured At Fair Value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market demand accounts and investment grade fixed income securities | $65,800 | $60,400 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market demand accounts and investment grade fixed income securities | 65,800 | 60,425 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market demand accounts and investment grade fixed income securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market demand accounts and investment grade fixed income securities | $0 | $0 |
Fair_Value_Narrative_Details
Fair Value (Narrative) (Details) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Jun. 09, 2011 | Feb. 29, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Notes Receivable [Member] | Money Transfer Business [Member] | Money Transfer Business [Member] | Trademarks [Member] | Notes Receivable [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Unsecured Debt [Member] | |||
Fair Value Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of Redbox trademarks | ' | ' | ' | ' | ' | $30,000,000 | ' | ' | ' | ' |
Estimated market royalty rates | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' |
Market discount rate | ' | ' | ' | ' | ' | 45.00% | 18.00% | 6.00% | 4.50% | 6.00% |
Cash received from sale of business | ' | ' | ' | ' | 19,500,000 | ' | ' | ' | ' | ' |
Gross carrying value of Sigue note receivable | ' | ' | ' | ' | 29,500,000 | ' | ' | ' | ' | ' |
Additional loan to Sigue that may be required as a part of sale | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' |
Charge against note receivable | ' | ' | 2,800,000 | ' | ' | ' | ' | ' | ' | ' |
Net carrying value of Sigue note receivable | 0 | 26,731,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from Sigue for full settlement of note | 24,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit from release of indemnification related reserve | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt, fair value | ' | ' | ' | ' | ' | ' | ' | 50,500,000 | 183,700,000 | ' |
Interest rate, per year | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | 6.00% |
Estimated fair value of senior unsecured notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | $350,000,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Schedule of Capital Leased Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Gross property and equipment | $48,992 | $48,636 |
Accumulated depreciation | -28,489 | -18,974 |
Net property and equipment | $20,503 | $29,662 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Schedule of Minimum Lease Obligations) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ' | ' | |
2014 | $12,640 | ' | |
2015 | 7,618 | ' | |
2016 | 1,462 | ' | |
2017 | 314 | ' | |
2018 | 168 | ' | |
Thereafter | 51 | ' | |
Total minimum lease commitments | 22,253 | ' | |
Less: amounts representing interest | -892 | ' | |
Present value of capital lease obligations | 21,361 | ' | |
Less: Current portion of capital lease obligations | -11,997 | -13,350 | |
Long-term portion of capital lease obligations | 9,364 | 15,702 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | |
2014 | 15,306 | [1] | ' |
2015 | 11,114 | [1] | ' |
2016 | 8,765 | [1] | ' |
2017 | 7,301 | [1] | ' |
2018 | 6,228 | [1] | ' |
Thereafter | 17,654 | [1] | ' |
Total minimum lease commitments | $66,368 | [1] | ' |
[1] | Includes all operating leases having an initial or remaining non-cancelable lease term in excess of one year. |
Commitments_and_Contingencies_3
Commitments and Contingencies (Schedule of Content Commitments) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Long-term Purchase Commitment [Line Items] | ' |
Total | $619,719 |
2014 | 565,728 |
2015 | 53,991 |
2016 | 0 |
Fox [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Total | 121,452 |
2014 | 88,942 |
2015 | 32,510 |
2016 | 0 |
Universal [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Total | 120,077 |
2014 | 103,941 |
2015 | 16,136 |
2016 | 0 |
Content license agreement, term of extension | '1 year |
Sony [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Total | 109,349 |
2014 | 109,349 |
2015 | 0 |
2016 | 0 |
Content license agreement, number of extensions | 2 |
Content license agreement, term of extension | '1 year |
Paramount [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Total | 99,214 |
2014 | 99,214 |
2015 | 0 |
2016 | 0 |
Content license agreement, number of extensions | 2 |
Content license agreement, term of extension | '1 year |
Warner [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Total | 90,953 |
2014 | 85,608 |
2015 | 5,345 |
2016 | 0 |
Lionsgate [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Total | 35,999 |
2014 | 35,999 |
2015 | 0 |
2016 | 0 |
Summit [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Total | 21,357 |
2014 | 21,357 |
2015 | 0 |
2016 | 0 |
Anchor Bay [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Total | 21,318 |
2014 | 21,318 |
2015 | 0 |
2016 | $0 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Schedule of Revenue Share Commitments) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Revenue Share Commitments [Line Items] | ' |
Total | $37,707 |
2014 | 31,933 |
2015 | 2,794 |
2016 | 2,290 |
2017 | 552 |
2018 | 138 |
Redbox [Member] | ' |
Revenue Share Commitments [Line Items] | ' |
Total | 35,932 |
2014 | 30,158 |
2015 | 2,794 |
2016 | 2,290 |
2017 | 552 |
2018 | 138 |
Coinstar [Member] | ' |
Revenue Share Commitments [Line Items] | ' |
Total | 1,667 |
2014 | 1,667 |
2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
New Venture [Member] | ' |
Revenue Share Commitments [Line Items] | ' |
Total | 108 |
2014 | 108 |
2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | $0 |
Commitments_and_Contingencies_5
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Square feet of ecoATM offices | 93,597 | ' | ' |
Purchase commitments | $23,300,000 | ' | ' |
Standby Letters of Credit [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Number of irrevocable standby letters of credit | 6 | ' | ' |
Maximum capacity to guarantee under existing letters of credit | 8,600,000 | ' | ' |
Irrevocable standby letters of credit, amount outstanding | 0 | ' | ' |
Supply Agreement [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Resolution of loss contingency, benefit recognized in direct operating | 11,400,000 | ' | ' |
Manufacturing and Service Agreement as Part of Asset Acquisition [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Purchase commitments | 17,900,000 | ' | ' |
Purchase obligation, term | '5 years | ' | ' |
Minimum margin to be paid | 25,000,000 | ' | ' |
Operating Lease [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Lease extension term | '5 years | ' | ' |
Rent expense, operating leases | $12,300,000 | $9,000,000 | $8,900,000 |
Guarantor_Subsidiaries_Condens
Guarantor Subsidiaries (Condensed Consolidated Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $371,437 | $282,894 | $341,855 | $183,416 |
Accounts receivable, net of allowances | 50,296 | 58,331 | ' | ' |
Content library | 199,868 | 177,409 | ' | ' |
Deferred income taxes | 11 | 7,187 | ' | ' |
Prepaid expenses and other current assets | 84,698 | 29,686 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Total current assets | 706,310 | 555,507 | ' | ' |
Property and equipment, net | 520,865 | 586,124 | ' | ' |
Notes receivable | 0 | 26,731 | ' | ' |
Deferred income taxes | 6,443 | 1,373 | ' | ' |
Goodwill and other intangible assets | 638,690 | 344,063 | ' | ' |
Other long-term assets | 24,392 | 47,927 | ' | ' |
Investment in related parties | 0 | 0 | ' | ' |
Total assets | 1,896,700 | 1,561,725 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 236,018 | 250,588 | ' | ' |
Accrued payable to retailers | 134,140 | 138,413 | ' | ' |
Other accrued liabilities | 134,127 | 146,125 | ' | ' |
Current callable convertible debt | 49,702 | 0 | ' | ' |
Current portion of long-term debt and other | 42,190 | 15,529 | ' | ' |
Current portion of capital lease obligations | 11,997 | 13,350 | ' | ' |
Deferred income taxes | 23,143 | 0 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Total current liabilities | 631,317 | 564,005 | ' | ' |
Long-term debt and other long-term liabilities | 677,356 | 341,179 | ' | ' |
Capital lease obligations | 9,364 | 15,702 | ' | ' |
Deferred income taxes | 58,528 | 91,751 | ' | ' |
Total liabilities | 1,376,565 | 1,012,637 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Debt conversion feature | 1,446 | 0 | ' | ' |
Stockholders’ Equity: | ' | ' | ' | ' |
Preferred stock | 0 | 0 | ' | ' |
Common stock | 482,481 | 504,881 | ' | ' |
Treasury stock | -476,796 | -293,149 | ' | ' |
Retained earnings | 513,771 | 338,979 | ' | ' |
Accumulated other comprehensive loss | -767 | -1,623 | ' | ' |
Total stockholders’ equity | 518,689 | 549,088 | 513,902 | 426,009 |
Total liabilities and stockholders’ equity | 1,896,700 | 1,561,725 | ' | ' |
Reportable Legal Entities | Outerwall Inc. | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 315,250 | 242,489 | 310,259 | 146,268 |
Accounts receivable, net of allowances | 2,029 | 887 | ' | ' |
Content library | 37 | 1,130 | ' | ' |
Deferred income taxes | 12,152 | 27,372 | ' | ' |
Prepaid expenses and other current assets | 55,512 | 11,748 | ' | ' |
Intercompany receivables | 180,100 | 119,848 | ' | ' |
Total current assets | 565,080 | 403,474 | ' | ' |
Property and equipment, net | 163,747 | 188,251 | ' | ' |
Notes receivable | ' | 26,731 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Goodwill and other intangible assets | 251,150 | 253,395 | ' | ' |
Other long-term assets | 12,473 | 18,992 | ' | ' |
Investment in related parties | 815,243 | 90,828 | ' | ' |
Total assets | 1,807,693 | 981,671 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 17,336 | 21,368 | ' | ' |
Accrued payable to retailers | 71,085 | 77,266 | ' | ' |
Other accrued liabilities | 59,444 | 50,314 | ' | ' |
Current callable convertible debt | 49,702 | ' | ' | ' |
Current portion of long-term debt and other | 42,187 | 15,312 | ' | ' |
Current portion of capital lease obligations | 11,630 | 13,002 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Intercompany payables | 315,615 | 56,473 | ' | ' |
Total current liabilities | 566,999 | 233,735 | ' | ' |
Long-term debt and other long-term liabilities | 658,032 | 322,279 | ' | ' |
Capital lease obligations | 8,912 | 15,180 | ' | ' |
Deferred income taxes | 45,307 | 54,855 | ' | ' |
Total liabilities | 1,279,250 | 626,049 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Debt conversion feature | 1,446 | ' | ' | ' |
Stockholders’ Equity: | ' | ' | ' | ' |
Preferred stock | 0 | 0 | ' | ' |
Common stock | 596,995 | 574,842 | ' | ' |
Treasury stock | -476,796 | -293,149 | ' | ' |
Retained earnings | 407,959 | 74,985 | ' | ' |
Accumulated other comprehensive loss | -1,161 | -1,056 | ' | ' |
Total stockholders’ equity | 526,997 | 355,622 | ' | ' |
Total liabilities and stockholders’ equity | 1,807,693 | 981,671 | ' | ' |
Reportable Legal Entities | Combined Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 9,639 | 0 | 0 | 6,963 |
Accounts receivable, net of allowances | 45,672 | 56,293 | ' | ' |
Content library | 196,695 | 173,339 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 28,234 | 17,504 | ' | ' |
Intercompany receivables | 355,418 | 76,878 | ' | ' |
Total current assets | 635,658 | 324,014 | ' | ' |
Property and equipment, net | 320,296 | 368,620 | ' | ' |
Notes receivable | ' | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Goodwill and other intangible assets | 387,540 | 90,614 | ' | ' |
Other long-term assets | 11,499 | 28,906 | ' | ' |
Investment in related parties | 4,825 | 24,395 | ' | ' |
Total assets | 1,359,818 | 836,549 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 215,703 | 225,463 | ' | ' |
Accrued payable to retailers | 48,126 | 46,493 | ' | ' |
Other accrued liabilities | 71,607 | 92,724 | ' | ' |
Current callable convertible debt | 0 | ' | ' | ' |
Current portion of long-term debt and other | 3 | 217 | ' | ' |
Current portion of capital lease obligations | 0 | 0 | ' | ' |
Deferred income taxes | 35,292 | 21,084 | ' | ' |
Intercompany payables | 154,565 | 108,347 | ' | ' |
Total current liabilities | 525,296 | 494,328 | ' | ' |
Long-term debt and other long-term liabilities | 18,748 | 18,724 | ' | ' |
Capital lease obligations | 0 | 0 | ' | ' |
Deferred income taxes | 13,190 | 36,857 | ' | ' |
Total liabilities | 557,234 | 549,909 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Debt conversion feature | 0 | ' | ' | ' |
Stockholders’ Equity: | ' | ' | ' | ' |
Preferred stock | 0 | 0 | ' | ' |
Common stock | 225,016 | 145,425 | ' | ' |
Treasury stock | 0 | 0 | ' | ' |
Retained earnings | 577,568 | 141,215 | ' | ' |
Accumulated other comprehensive loss | 0 | 0 | ' | ' |
Total stockholders’ equity | 802,584 | 286,640 | ' | ' |
Total liabilities and stockholders’ equity | 1,359,818 | 836,549 | ' | ' |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 46,548 | 40,759 | 31,766 | 30,185 |
Accounts receivable, net of allowances | 2,595 | 1,151 | ' | ' |
Content library | 3,136 | 2,940 | ' | ' |
Deferred income taxes | 8 | 899 | ' | ' |
Prepaid expenses and other current assets | 952 | 434 | ' | ' |
Intercompany receivables | 5,093 | 3,581 | ' | ' |
Total current assets | 58,332 | 49,764 | ' | ' |
Property and equipment, net | 36,822 | 29,253 | ' | ' |
Notes receivable | ' | 0 | ' | ' |
Deferred income taxes | 6,412 | 1,334 | ' | ' |
Goodwill and other intangible assets | 0 | 0 | ' | ' |
Other long-term assets | 420 | 29 | ' | ' |
Investment in related parties | 0 | 0 | ' | ' |
Total assets | 101,986 | 80,380 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 2,979 | 4,111 | ' | ' |
Accrued payable to retailers | 14,929 | 14,654 | ' | ' |
Other accrued liabilities | 3,076 | 3,087 | ' | ' |
Current callable convertible debt | 0 | ' | ' | ' |
Current portion of long-term debt and other | 0 | 0 | ' | ' |
Current portion of capital lease obligations | 367 | 348 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Intercompany payables | 70,432 | 35,487 | ' | ' |
Total current liabilities | 91,783 | 57,687 | ' | ' |
Long-term debt and other long-term liabilities | 576 | 176 | ' | ' |
Capital lease obligations | 452 | 522 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Total liabilities | 92,811 | 58,385 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Debt conversion feature | 0 | ' | ' | ' |
Stockholders’ Equity: | ' | ' | ' | ' |
Preferred stock | 0 | 0 | ' | ' |
Common stock | 12,393 | 12,444 | ' | ' |
Treasury stock | 0 | 0 | ' | ' |
Retained earnings | -3,612 | 10,118 | ' | ' |
Accumulated other comprehensive loss | 394 | -567 | ' | ' |
Total stockholders’ equity | 9,175 | 21,995 | ' | ' |
Total liabilities and stockholders’ equity | 101,986 | 80,380 | ' | ' |
Eliminations and Consolidation Reclassifications | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | -354 | -170 | 0 |
Accounts receivable, net of allowances | 0 | 0 | ' | ' |
Content library | 0 | 0 | ' | ' |
Deferred income taxes | -12,149 | -21,084 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Intercompany receivables | -540,611 | -200,307 | ' | ' |
Total current assets | -552,760 | -221,745 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Notes receivable | ' | 0 | ' | ' |
Deferred income taxes | 31 | 39 | ' | ' |
Goodwill and other intangible assets | 0 | 54 | ' | ' |
Other long-term assets | 0 | 0 | ' | ' |
Investment in related parties | -820,068 | -115,223 | ' | ' |
Total assets | -1,372,797 | -336,875 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 0 | -354 | ' | ' |
Accrued payable to retailers | 0 | 0 | ' | ' |
Other accrued liabilities | 0 | 0 | ' | ' |
Current callable convertible debt | 0 | ' | ' | ' |
Current portion of long-term debt and other | 0 | 0 | ' | ' |
Current portion of capital lease obligations | 0 | 0 | ' | ' |
Deferred income taxes | -12,149 | -21,084 | ' | ' |
Intercompany payables | -540,612 | -200,307 | ' | ' |
Total current liabilities | -552,761 | -221,745 | ' | ' |
Long-term debt and other long-term liabilities | 0 | 0 | ' | ' |
Capital lease obligations | 0 | 0 | ' | ' |
Deferred income taxes | 31 | 39 | ' | ' |
Total liabilities | -552,730 | -221,706 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Debt conversion feature | 0 | ' | ' | ' |
Stockholders’ Equity: | ' | ' | ' | ' |
Preferred stock | 0 | 0 | ' | ' |
Common stock | -351,923 | -227,830 | ' | ' |
Treasury stock | 0 | 0 | ' | ' |
Retained earnings | -468,144 | 112,661 | ' | ' |
Accumulated other comprehensive loss | 0 | 0 | ' | ' |
Total stockholders’ equity | -820,067 | -115,169 | ' | ' |
Total liabilities and stockholders’ equity | ($1,372,797) | ($336,875) | ' | ' |
Guarantor_Subsidiaries_Condens1
Guarantor Subsidiaries (Condensed Consolidated Statements of Comprehensive Income) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Revenue | $2,306,601 | $2,199,884 | $1,844,046 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 1,575,277 | [1] | 1,498,819 | [1] | 1,280,237 | [1] |
Marketing | 32,402 | 25,979 | 28,450 | |||
Research and development | 13,084 | 6,757 | 7,551 | |||
General and administrative | 221,776 | 204,519 | 157,422 | |||
Depreciation and other | 192,161 | 179,027 | 144,632 | |||
Amortization of intangible assets | 10,933 | 5,378 | 2,740 | |||
Total expenses | 2,045,633 | 1,920,479 | 1,621,032 | |||
Operating income | 260,968 | 279,405 | 223,014 | |||
Other income (expense), net: | ' | ' | ' | |||
Income (loss) from equity method investments, net | 19,928 | -5,184 | -1,591 | |||
Interest expense, net | -32,801 | -15,648 | -23,822 | |||
Other, net | -5,527 | -180 | 256 | |||
Total other income (expense), net | -18,400 | -21,012 | -25,157 | |||
Income from continuing operations before income taxes | 242,568 | 258,393 | 197,857 | |||
Income tax benefit (expense) | -34,477 | -97,941 | -74,923 | |||
Income from continuing operations | 208,091 | 160,452 | 122,934 | |||
Loss from discontinued operations, net of tax | -33,299 | -10,222 | -19,051 | |||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | |||
Net income | 174,792 | 150,230 | 103,883 | |||
Foreign currency translation adjustment, before tax | 856 | [2] | 1,048 | [2] | -255 | [2],[3] |
Other comprehensive income: | ' | ' | ' | |||
Foreign currency translation adjustment, net of tax | 856 | [4] | 1,048 | [5] | -255 | |
Reclassification of interest rate hedges to interest expense | 0 | 0 | 896 | [6] | ||
Loss on short-term investments | 0 | 0 | -20 | |||
Income tax expense related to items of other comprehensive income | 0 | 0 | -342 | |||
Other comprehensive income, net of tax | 856 | [7] | 1,048 | [7] | 279 | [7] |
Comprehensive income | 175,648 | 151,278 | 104,162 | |||
Reportable Legal Entities | Outerwall Inc. | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Revenue | 255,251 | 247,906 | 239,043 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 138,859 | 137,092 | 123,975 | |||
Marketing | 6,540 | 5,020 | 5,784 | |||
Research and development | 8,973 | 6,018 | 7,466 | |||
General and administrative | 33,747 | 23,442 | 19,554 | |||
Depreciation and other | 28,101 | 30,716 | 25,524 | |||
Amortization of intangible assets | 2,245 | 2,346 | 2,548 | |||
Total expenses | 218,465 | 204,634 | 184,851 | |||
Operating income | 36,786 | 43,272 | 54,192 | |||
Other income (expense), net: | ' | ' | ' | |||
Income (loss) from equity method investments, net | 65,063 | -2,179 | -1,591 | |||
Interest expense, net | -32,930 | -18,161 | -21,564 | |||
Other, net | -3,868 | 98 | -1,179 | |||
Total other income (expense), net | 28,265 | -20,242 | -24,334 | |||
Income from continuing operations before income taxes | 65,051 | 23,030 | 29,858 | |||
Income tax benefit (expense) | 30,893 | -5,518 | -9,901 | |||
Income from continuing operations | 95,944 | 17,512 | 19,957 | |||
Loss from discontinued operations, net of tax | -30,834 | -8,609 | -19,164 | |||
Equity in income (loss) of subsidiaries | 109,682 | 141,327 | 103,090 | |||
Net income | 174,792 | 150,230 | 103,883 | |||
Foreign currency translation adjustment, before tax | ' | ' | 320 | [3] | ||
Other comprehensive income: | ' | ' | ' | |||
Foreign currency translation adjustment, net of tax | -105 | [4] | -196 | [5] | ' | |
Reclassification of interest rate hedges to interest expense | ' | ' | 896 | |||
Loss on short-term investments | ' | ' | -20 | |||
Income tax expense related to items of other comprehensive income | ' | ' | -342 | |||
Other comprehensive income, net of tax | ' | ' | 854 | |||
Comprehensive income | 174,687 | 150,034 | 104,737 | |||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Revenue | 1,999,539 | 1,907,037 | 1,561,982 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 1,394,932 | 1,334,227 | 1,135,194 | |||
Marketing | 23,269 | 18,676 | 22,300 | |||
Research and development | 4,111 | 739 | 85 | |||
General and administrative | 171,505 | 161,814 | 125,358 | |||
Depreciation and other | 158,801 | 144,805 | 116,106 | |||
Amortization of intangible assets | 8,688 | 3,032 | 192 | |||
Total expenses | 1,761,306 | 1,663,293 | 1,399,235 | |||
Operating income | 238,233 | 243,744 | 162,747 | |||
Other income (expense), net: | ' | ' | ' | |||
Income (loss) from equity method investments, net | -45,135 | -3,005 | 0 | |||
Interest expense, net | 257 | 2,554 | -2,245 | |||
Other, net | 258 | -264 | 316 | |||
Total other income (expense), net | -44,620 | -715 | -1,929 | |||
Income from continuing operations before income taxes | 193,613 | 243,029 | 160,818 | |||
Income tax benefit (expense) | -70,429 | -93,734 | -64,123 | |||
Income from continuing operations | 123,184 | 149,295 | 96,695 | |||
Loss from discontinued operations, net of tax | -2,465 | -1,613 | 177 | |||
Equity in income (loss) of subsidiaries | -11,037 | -6,355 | 5,149 | |||
Net income | 109,682 | 141,327 | 102,021 | |||
Foreign currency translation adjustment, before tax | ' | ' | -102 | [3] | ||
Other comprehensive income: | ' | ' | ' | |||
Foreign currency translation adjustment, net of tax | 0 | [4] | 0 | [5] | ' | |
Reclassification of interest rate hedges to interest expense | ' | ' | 0 | |||
Loss on short-term investments | ' | ' | 0 | |||
Income tax expense related to items of other comprehensive income | ' | ' | 0 | |||
Other comprehensive income, net of tax | ' | ' | -102 | |||
Comprehensive income | 109,682 | 141,327 | 101,919 | |||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Revenue | 51,811 | 44,941 | 43,021 | |||
Expenses: | ' | ' | ' | |||
Direct operating | 54,433 | 45,838 | 24,621 | |||
Marketing | 2,593 | 2,283 | 366 | |||
Research and development | 0 | 0 | 0 | |||
General and administrative | 3,569 | 931 | 8,957 | |||
Depreciation and other | 5,259 | 3,506 | 3,002 | |||
Amortization of intangible assets | 0 | 0 | 0 | |||
Total expenses | 65,854 | 52,558 | 36,946 | |||
Operating income | -14,043 | -7,617 | 6,075 | |||
Other income (expense), net: | ' | ' | ' | |||
Income (loss) from equity method investments, net | 0 | 0 | 0 | |||
Interest expense, net | -128 | -41 | -13 | |||
Other, net | -1,925 | -8 | 1,119 | |||
Total other income (expense), net | -2,053 | -49 | 1,106 | |||
Income from continuing operations before income taxes | -16,096 | -7,666 | 7,181 | |||
Income tax benefit (expense) | 5,059 | 1,311 | -899 | |||
Income from continuing operations | -11,037 | -6,355 | 6,282 | |||
Loss from discontinued operations, net of tax | 0 | 0 | -64 | |||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | |||
Net income | -11,037 | -6,355 | 6,218 | |||
Foreign currency translation adjustment, before tax | ' | ' | -376 | [3] | ||
Other comprehensive income: | ' | ' | ' | |||
Foreign currency translation adjustment, net of tax | 961 | [4] | 1,244 | [5] | ' | |
Reclassification of interest rate hedges to interest expense | ' | ' | 0 | |||
Loss on short-term investments | ' | ' | 0 | |||
Income tax expense related to items of other comprehensive income | ' | ' | 0 | |||
Other comprehensive income, net of tax | ' | ' | -376 | |||
Comprehensive income | -10,076 | -5,111 | 5,842 | |||
Eliminations and Consolidation Reclassifications | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Revenue | 0 | 0 | 0 | |||
Expenses: | ' | ' | ' | |||
Direct operating | -12,947 | -18,338 | -3,553 | |||
Marketing | 0 | 0 | 0 | |||
Research and development | 0 | 0 | 0 | |||
General and administrative | 12,955 | 18,332 | 3,553 | |||
Depreciation and other | 0 | 0 | 0 | |||
Amortization of intangible assets | 0 | 0 | 0 | |||
Total expenses | 8 | -6 | 0 | |||
Operating income | -8 | 6 | 0 | |||
Other income (expense), net: | ' | ' | ' | |||
Income (loss) from equity method investments, net | 0 | 0 | 0 | |||
Interest expense, net | 0 | 0 | 0 | |||
Other, net | 8 | -6 | 0 | |||
Total other income (expense), net | 8 | -6 | 0 | |||
Income from continuing operations before income taxes | 0 | 0 | 0 | |||
Income tax benefit (expense) | 0 | 0 | 0 | |||
Income from continuing operations | 0 | 0 | 0 | |||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | |||
Equity in income (loss) of subsidiaries | -98,645 | -134,972 | -108,239 | |||
Net income | -98,645 | -134,972 | -108,239 | |||
Foreign currency translation adjustment, before tax | ' | ' | -97 | [3] | ||
Other comprehensive income: | ' | ' | ' | |||
Foreign currency translation adjustment, net of tax | 0 | [4] | 0 | [5] | ' | |
Reclassification of interest rate hedges to interest expense | ' | ' | 0 | |||
Loss on short-term investments | ' | ' | 0 | |||
Income tax expense related to items of other comprehensive income | ' | ' | 0 | |||
Other comprehensive income, net of tax | ' | ' | -97 | |||
Comprehensive income | ($98,645) | ($134,972) | ($108,336) | |||
[1] | “Direct operating†excludes depreciation and other of $130.3 million, $127.2 million and $120.4 million for 2013, 2012, and 2011 respectively. | |||||
[2] | Foreign currency translation adjustment had no tax effect in 2013, 2012, or 2011. | |||||
[3] | Foreign currency translation adjustment had no tax effect in 2011. | |||||
[4] | Foreign currency translation adjustment had no tax effect in 2013. | |||||
[5] | Foreign currency translation adjustment had no tax effect in 2012. | |||||
[6] | At December 31, 2010 we had an interest rate swap agreement with Wells Fargo Bank to hedge against the variable-rate interest payments on our revolving Credit Facility which expired on March 20, 2011. At December 31, 2010 the fair value of this agreement was a liability of $0.9 million which was reversed from comprehensive income and recognized as interest expense in our Consolidated Statements of Comprehensive Income in the first quarter of 2011. | |||||
[7] | Foreign currency translation adjustment has no tax effect for the years ended December 31, 2013, 2012, and 2011. |
Guarantor_Subsidiaries_Condens2
Guarantor Subsidiaries (Condensed Consolidated Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
concept | ||||||
Operating Activities: | ' | ' | ' | |||
Net income | $174,792 | $150,230 | $103,883 | |||
Adjustments to reconcile net income to net cash flows: | ' | ' | ' | |||
Depreciation and other | 193,700 | 179,147 | 145,478 | |||
Amortization of intangible assets and deferred financing fees | 13,461 | 7,504 | 5,182 | |||
Share-based payments expense | 16,831 | 19,362 | 16,211 | |||
Excess tax benefits on share-based payments | -3,698 | -5,740 | -2,471 | |||
Deferred income taxes | -10,933 | 87,573 | 60,076 | |||
Impairment expense | 32,732 | [1] | 0 | 0 | ||
Loss from discontinued operations, net of tax | 0 | [1] | 0 | [1] | 11,068 | [1] |
(Income) loss from equity method investments, net | -19,928 | 5,184 | 1,591 | |||
Non-cash interest on convertible debt | 3,866 | 7,109 | 6,551 | |||
Loss from extinguishments of callable convertible debt | 6,013 | 0 | 0 | |||
Other | -2,039 | -4,100 | -95 | |||
Equity in (income) losses of subsidiaries | 0 | 0 | 0 | |||
Cash flows from changes in operating assets and liabilities: | ' | ' | ' | |||
Accounts receivable, net | 7,978 | -17,061 | -15,289 | |||
Content library | -22,459 | -30,693 | -2,062 | |||
Prepaid expenses and other current assets | -50,542 | -6,963 | -4,869 | |||
Other assets | 230 | 858 | 1,769 | |||
Accounts payable | -2,252 | 58,248 | 12,550 | |||
Accrued payable to retailers | -4,088 | 10,461 | 30,826 | |||
Other accrued liabilities | -9,573 | 2,787 | 36,117 | |||
Net cash flows from operating activities | 324,091 | 463,906 | 406,516 | |||
Investing Activities: | ' | ' | ' | |||
Purchases of property and equipment | -157,669 | -208,054 | -179,236 | |||
Proceeds from sale of property and equipment | 13,344 | 1,131 | 695 | |||
Proceeds from sale of business, net | 0 | 0 | 8,220 | |||
Receipt of note receivable principal | 22,913 | 0 | 0 | |||
Cash paid for equity investments | -28,000 | -39,727 | -4,912 | |||
Investments in and advances to affiliates | 0 | 0 | 0 | |||
Net cash flows from investing activities | -393,448 | -346,650 | -175,233 | |||
Financing Activities: | ' | ' | ' | |||
Proceeds from issuance of senior unsecured notes | 343,769 | 0 | 0 | |||
Proceeds from new borrowing of Credit Facility | 400,000 | 0 | 175,000 | |||
Principal payments on Credit Facility | -215,313 | -10,938 | -154,375 | |||
Financing costs associated with Credit Facility and senior unsecured notes | -2,203 | 0 | -4,196 | |||
Repurchase of convertible debt | -172,211 | -20,575 | 0 | |||
Repurchases of common stock | -195,004 | -139,724 | -63,349 | |||
Principal payments on capital lease obligations and other debt | -14,834 | -16,392 | -28,202 | |||
Excess tax benefits related to share-based payments | 3,698 | 5,740 | 2,471 | |||
Proceeds from exercise of stock options, net | 8,460 | 4,592 | 3,261 | |||
Net cash flows from financing activities | 156,362 | -177,297 | -69,390 | |||
Effect of exchange rate changes on cash | 1,538 | 1,080 | -454 | |||
Increase (decrease) in cash and cash equivalents from continuing operations | 88,543 | -58,961 | 161,439 | |||
Cash flows from discontinued operations: | ' | ' | ' | |||
Operating cash flows | 0 | [1] | 0 | [1] | 9,678 | [1] |
Investing cash flows | 0 | [1] | 0 | [1] | -12,678 | [1] |
Net cash flows from discontinued operations: | 0 | [1] | 0 | [1] | -3,000 | [1] |
Increase (decrease) in cash and cash equivalents | 88,543 | [1] | -58,961 | [1] | 158,439 | |
Cash and cash equivalents: | ' | ' | ' | |||
Beginning of period | 282,894 | 341,855 | 183,416 | |||
End of period | 371,437 | 282,894 | 341,855 | |||
Number of discontinued concepts | 4 | ' | ' | |||
ecoATM [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | -244,036 | 0 | 0 | |||
NCR Asset Acquisition [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | 0 | -100,000 | 0 | |||
Reportable Legal Entities | Outerwall Inc. | ' | ' | ' | |||
Operating Activities: | ' | ' | ' | |||
Net income | 174,792 | 150,230 | 103,883 | |||
Adjustments to reconcile net income to net cash flows: | ' | ' | ' | |||
Depreciation and other | 29,640 | 30,836 | 26,370 | |||
Amortization of intangible assets and deferred financing fees | 4,773 | 4,472 | 4,990 | |||
Share-based payments expense | 9,903 | 10,998 | 8,498 | |||
Excess tax benefits on share-based payments | -3,698 | -5,740 | -2,471 | |||
Deferred income taxes | 9,228 | 18,578 | 14,057 | |||
Impairment expense | 32,444 | [1] | ' | ' | ||
Loss from discontinued operations, net of tax | ' | ' | 11,733 | [1] | ||
(Income) loss from equity method investments, net | -65,063 | 2,179 | 1,591 | |||
Non-cash interest on convertible debt | 3,866 | 7,109 | 6,551 | |||
Loss from extinguishments of callable convertible debt | 6,013 | ' | ' | |||
Other | 827 | -1,390 | -684 | |||
Equity in (income) losses of subsidiaries | -109,682 | -141,327 | -103,090 | |||
Cash flows from changes in operating assets and liabilities: | ' | ' | ' | |||
Accounts receivable, net | -1,144 | -371 | 432 | |||
Content library | 1,093 | -673 | -436 | |||
Prepaid expenses and other current assets | -43,762 | 1,386 | -2,718 | |||
Other assets | 201 | 39 | 358 | |||
Accounts payable | 1,319 | 815 | 5,977 | |||
Accrued payable to retailers | -6,181 | 7,432 | 7,968 | |||
Other accrued liabilities | 13,184 | -5,008 | 7,132 | |||
Net cash flows from operating activities | 57,753 | 79,565 | 90,141 | |||
Investing Activities: | ' | ' | ' | |||
Purchases of property and equipment | -58,763 | -64,423 | -67,409 | |||
Proceeds from sale of property and equipment | 12,147 | 302 | 193 | |||
Proceeds from sale of business, net | ' | ' | 8,220 | |||
Receipt of note receivable principal | 22,913 | ' | ' | |||
Cash paid for equity investments | 0 | -10,877 | -4,912 | |||
Investments in and advances to affiliates | 125,856 | 96,990 | 184,264 | |||
Net cash flows from investing activities | -141,883 | 21,992 | 120,356 | |||
Financing Activities: | ' | ' | ' | |||
Proceeds from issuance of senior unsecured notes | 343,769 | ' | ' | |||
Proceeds from new borrowing of Credit Facility | 400,000 | ' | 175,000 | |||
Principal payments on Credit Facility | -215,313 | -10,938 | -154,375 | |||
Financing costs associated with Credit Facility and senior unsecured notes | -2,203 | ' | -4,196 | |||
Repurchase of convertible debt | -172,211 | -20,575 | ' | |||
Repurchases of common stock | -195,004 | -139,724 | -63,349 | |||
Principal payments on capital lease obligations and other debt | -14,200 | -8,226 | -5,396 | |||
Excess tax benefits related to share-based payments | 3,698 | 5,740 | 2,471 | |||
Proceeds from exercise of stock options, net | 8,460 | 4,592 | 3,261 | |||
Net cash flows from financing activities | 156,996 | -169,131 | -46,584 | |||
Effect of exchange rate changes on cash | -105 | -196 | 78 | |||
Increase (decrease) in cash and cash equivalents from continuing operations | ' | ' | 163,991 | |||
Cash flows from discontinued operations: | ' | ' | ' | |||
Operating cash flows | ' | ' | 0 | [1] | ||
Investing cash flows | ' | ' | 0 | [1] | ||
Net cash flows from discontinued operations: | ' | ' | 0 | [1] | ||
Increase (decrease) in cash and cash equivalents | 72,761 | [1] | -67,770 | [1] | 163,991 | |
Cash and cash equivalents: | ' | ' | ' | |||
Beginning of period | 242,489 | 310,259 | 146,268 | |||
End of period | 315,250 | 242,489 | 310,259 | |||
Reportable Legal Entities | Outerwall Inc. | ecoATM [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | -244,036 | ' | ' | |||
Reportable Legal Entities | Outerwall Inc. | NCR Asset Acquisition [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | ' | 0 | ' | |||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ' | ' | ' | |||
Operating Activities: | ' | ' | ' | |||
Net income | 109,682 | 141,327 | 102,021 | |||
Adjustments to reconcile net income to net cash flows: | ' | ' | ' | |||
Depreciation and other | 158,801 | 144,805 | 116,106 | |||
Amortization of intangible assets and deferred financing fees | 8,688 | 3,032 | 192 | |||
Share-based payments expense | 6,928 | 8,364 | 7,713 | |||
Excess tax benefits on share-based payments | 0 | 0 | 0 | |||
Deferred income taxes | -15,727 | 70,607 | 44,362 | |||
Impairment expense | 288 | [1] | ' | ' | ||
Loss from discontinued operations, net of tax | ' | ' | -729 | [1] | ||
(Income) loss from equity method investments, net | 45,135 | 3,005 | 0 | |||
Non-cash interest on convertible debt | 0 | 0 | 0 | |||
Loss from extinguishments of callable convertible debt | 0 | ' | ' | |||
Other | -2,951 | -2,720 | 589 | |||
Equity in (income) losses of subsidiaries | 11,037 | 6,355 | -5,149 | |||
Cash flows from changes in operating assets and liabilities: | ' | ' | ' | |||
Accounts receivable, net | 10,639 | -15,787 | -15,504 | |||
Content library | -23,357 | -27,079 | -1,626 | |||
Prepaid expenses and other current assets | -6,280 | -8,159 | -2,178 | |||
Other assets | 400 | 848 | 1,411 | |||
Accounts payable | -4,151 | 55,671 | 6,915 | |||
Accrued payable to retailers | 1,633 | 1,025 | 17,993 | |||
Other accrued liabilities | -22,751 | 7,520 | 26,002 | |||
Net cash flows from operating activities | 278,014 | 388,814 | 298,118 | |||
Investing Activities: | ' | ' | ' | |||
Purchases of property and equipment | -84,688 | -130,672 | -109,492 | |||
Proceeds from sale of property and equipment | 1,189 | 782 | 445 | |||
Proceeds from sale of business, net | ' | ' | 0 | |||
Receipt of note receivable principal | 0 | ' | ' | |||
Cash paid for equity investments | -28,000 | -28,850 | 0 | |||
Investments in and advances to affiliates | -156,659 | -122,272 | -173,452 | |||
Net cash flows from investing activities | -268,158 | -381,012 | -282,499 | |||
Financing Activities: | ' | ' | ' | |||
Proceeds from issuance of senior unsecured notes | 0 | ' | ' | |||
Proceeds from new borrowing of Credit Facility | 0 | ' | 0 | |||
Principal payments on Credit Facility | 0 | 0 | 0 | |||
Financing costs associated with Credit Facility and senior unsecured notes | 0 | ' | 0 | |||
Repurchase of convertible debt | 0 | 0 | ' | |||
Repurchases of common stock | 0 | 0 | 0 | |||
Principal payments on capital lease obligations and other debt | -217 | -7,802 | -22,480 | |||
Excess tax benefits related to share-based payments | 0 | 0 | 0 | |||
Proceeds from exercise of stock options, net | 0 | 0 | 0 | |||
Net cash flows from financing activities | -217 | -7,802 | -22,480 | |||
Effect of exchange rate changes on cash | 0 | 0 | -102 | |||
Increase (decrease) in cash and cash equivalents from continuing operations | ' | ' | -6,963 | |||
Cash flows from discontinued operations: | ' | ' | ' | |||
Operating cash flows | ' | ' | 0 | [1] | ||
Investing cash flows | ' | ' | 0 | [1] | ||
Net cash flows from discontinued operations: | ' | ' | 0 | [1] | ||
Increase (decrease) in cash and cash equivalents | 9,639 | [1] | 0 | [1] | -6,963 | |
Cash and cash equivalents: | ' | ' | ' | |||
Beginning of period | 0 | 0 | 6,963 | |||
End of period | 9,639 | 0 | 0 | |||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ecoATM [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | 0 | ' | ' | |||
Reportable Legal Entities | Combined Guarantor Subsidiaries | NCR Asset Acquisition [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | ' | -100,000 | ' | |||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ' | ' | ' | |||
Operating Activities: | ' | ' | ' | |||
Net income | -11,037 | -6,355 | 6,218 | |||
Adjustments to reconcile net income to net cash flows: | ' | ' | ' | |||
Depreciation and other | 5,259 | 3,506 | 3,002 | |||
Amortization of intangible assets and deferred financing fees | 0 | 0 | 0 | |||
Share-based payments expense | 0 | 0 | 0 | |||
Excess tax benefits on share-based payments | 0 | 0 | 0 | |||
Deferred income taxes | -4,434 | -1,612 | 1,657 | |||
Impairment expense | 0 | [1] | ' | ' | ||
Loss from discontinued operations, net of tax | ' | ' | 64 | [1] | ||
(Income) loss from equity method investments, net | 0 | 0 | 0 | |||
Non-cash interest on convertible debt | 0 | 0 | 0 | |||
Loss from extinguishments of callable convertible debt | 0 | ' | ' | |||
Other | 31 | 10 | 0 | |||
Equity in (income) losses of subsidiaries | 0 | 0 | 0 | |||
Cash flows from changes in operating assets and liabilities: | ' | ' | ' | |||
Accounts receivable, net | -1,517 | -903 | -217 | |||
Content library | -195 | -2,941 | 0 | |||
Prepaid expenses and other current assets | -500 | -190 | 27 | |||
Other assets | -371 | -29 | 0 | |||
Accounts payable | 226 | 1,946 | -172 | |||
Accrued payable to retailers | 460 | 2,004 | 4,865 | |||
Other accrued liabilities | -6 | 275 | 2,983 | |||
Net cash flows from operating activities | -12,084 | -4,289 | 18,427 | |||
Investing Activities: | ' | ' | ' | |||
Purchases of property and equipment | -14,218 | -12,959 | -2,335 | |||
Proceeds from sale of property and equipment | 8 | 47 | 57 | |||
Proceeds from sale of business, net | ' | ' | 0 | |||
Receipt of note receivable principal | 0 | ' | ' | |||
Cash paid for equity investments | 0 | 0 | 0 | |||
Investments in and advances to affiliates | 30,857 | 25,282 | -10,812 | |||
Net cash flows from investing activities | 16,647 | 12,370 | -13,090 | |||
Financing Activities: | ' | ' | ' | |||
Proceeds from issuance of senior unsecured notes | 0 | ' | ' | |||
Proceeds from new borrowing of Credit Facility | 0 | ' | 0 | |||
Principal payments on Credit Facility | 0 | 0 | 0 | |||
Financing costs associated with Credit Facility and senior unsecured notes | 0 | ' | 0 | |||
Repurchase of convertible debt | 0 | 0 | ' | |||
Repurchases of common stock | 0 | 0 | 0 | |||
Principal payments on capital lease obligations and other debt | -417 | -364 | -326 | |||
Excess tax benefits related to share-based payments | 0 | 0 | 0 | |||
Proceeds from exercise of stock options, net | 0 | 0 | 0 | |||
Net cash flows from financing activities | -417 | -364 | -326 | |||
Effect of exchange rate changes on cash | 1,643 | 1,276 | -430 | |||
Increase (decrease) in cash and cash equivalents from continuing operations | ' | ' | 4,581 | |||
Cash flows from discontinued operations: | ' | ' | ' | |||
Operating cash flows | ' | ' | 9,678 | [1] | ||
Investing cash flows | ' | ' | -12,678 | [1] | ||
Net cash flows from discontinued operations: | ' | ' | -3,000 | [1] | ||
Increase (decrease) in cash and cash equivalents | 5,789 | [1] | 8,993 | [1] | 1,581 | |
Cash and cash equivalents: | ' | ' | ' | |||
Beginning of period | 40,759 | 31,766 | 30,185 | |||
End of period | 46,548 | 40,759 | 31,766 | |||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ecoATM [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | 0 | ' | ' | |||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | NCR Asset Acquisition [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | ' | 0 | ' | |||
Eliminations and Consolidation Reclassifications | ' | ' | ' | |||
Operating Activities: | ' | ' | ' | |||
Net income | -98,645 | -134,972 | -108,239 | |||
Adjustments to reconcile net income to net cash flows: | ' | ' | ' | |||
Depreciation and other | 0 | 0 | 0 | |||
Amortization of intangible assets and deferred financing fees | 0 | 0 | 0 | |||
Share-based payments expense | 0 | 0 | 0 | |||
Excess tax benefits on share-based payments | 0 | 0 | 0 | |||
Deferred income taxes | 0 | 0 | 0 | |||
Impairment expense | 0 | [1] | ' | ' | ||
Loss from discontinued operations, net of tax | ' | ' | 0 | [1] | ||
(Income) loss from equity method investments, net | 0 | 0 | 0 | |||
Non-cash interest on convertible debt | 0 | 0 | 0 | |||
Loss from extinguishments of callable convertible debt | 0 | ' | ' | |||
Other | 54 | 0 | 0 | |||
Equity in (income) losses of subsidiaries | 98,645 | 134,972 | 108,239 | |||
Cash flows from changes in operating assets and liabilities: | ' | ' | ' | |||
Accounts receivable, net | 0 | 0 | 0 | |||
Content library | 0 | 0 | 0 | |||
Prepaid expenses and other current assets | 0 | 0 | 0 | |||
Other assets | 0 | 0 | 0 | |||
Accounts payable | 354 | -184 | -170 | |||
Accrued payable to retailers | 0 | 0 | 0 | |||
Other accrued liabilities | 0 | 0 | 0 | |||
Net cash flows from operating activities | 408 | -184 | -170 | |||
Investing Activities: | ' | ' | ' | |||
Purchases of property and equipment | 0 | 0 | 0 | |||
Proceeds from sale of property and equipment | 0 | 0 | 0 | |||
Proceeds from sale of business, net | ' | ' | 0 | |||
Receipt of note receivable principal | 0 | ' | ' | |||
Cash paid for equity investments | 0 | 0 | 0 | |||
Investments in and advances to affiliates | -54 | 0 | 0 | |||
Net cash flows from investing activities | -54 | 0 | 0 | |||
Financing Activities: | ' | ' | ' | |||
Proceeds from issuance of senior unsecured notes | 0 | ' | ' | |||
Proceeds from new borrowing of Credit Facility | 0 | ' | 0 | |||
Principal payments on Credit Facility | 0 | 0 | 0 | |||
Financing costs associated with Credit Facility and senior unsecured notes | 0 | ' | 0 | |||
Repurchase of convertible debt | 0 | 0 | ' | |||
Repurchases of common stock | 0 | 0 | 0 | |||
Principal payments on capital lease obligations and other debt | 0 | 0 | 0 | |||
Excess tax benefits related to share-based payments | 0 | 0 | 0 | |||
Proceeds from exercise of stock options, net | 0 | 0 | 0 | |||
Net cash flows from financing activities | 0 | 0 | 0 | |||
Effect of exchange rate changes on cash | 0 | 0 | 0 | |||
Increase (decrease) in cash and cash equivalents from continuing operations | ' | ' | -170 | |||
Cash flows from discontinued operations: | ' | ' | ' | |||
Operating cash flows | ' | ' | 0 | [1] | ||
Investing cash flows | ' | ' | 0 | [1] | ||
Net cash flows from discontinued operations: | ' | ' | 0 | [1] | ||
Increase (decrease) in cash and cash equivalents | 354 | [1] | -184 | [1] | -170 | |
Cash and cash equivalents: | ' | ' | ' | |||
Beginning of period | -354 | -170 | 0 | |||
End of period | 0 | -354 | -170 | |||
Eliminations and Consolidation Reclassifications | ecoATM [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | 0 | ' | ' | |||
Eliminations and Consolidation Reclassifications | NCR Asset Acquisition [Member] | ' | ' | ' | |||
Investing Activities: | ' | ' | ' | |||
Acquisition of business | ' | $0 | ' | |||
[1] | During 2013 we discontinued four ventures previously included in our New Ventures operating segment, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented because they were not material. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 30, 2014 | Jan. 31, 2014 | Feb. 03, 2014 | Jan. 30, 2014 | Jan. 30, 2014 | Jan. 30, 2014 | |||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Minimum [Member] | Maximum [Member] | ||||||
Tender Offer [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||
Tender Offer [Member] | Tender Offer [Member] | ||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repurchase of common stock (in shares) | 3,306,433 | 2,799,115 | 1,374,036 | ' | 736,000 | ' | ' | ' | ' | ||
Repurchase of common stock, average price (in dollars per share) | $58.98 | $49.92 | $46.10 | ' | $67.93 | ' | ' | ' | ' | ||
Repurchase of common stock | $195,004,000 | $139,724,000 | $63,349,000 | ' | $50,000,000 | ' | ' | ' | ' | ||
Additional common stock repurchases authorized by Board of Directors | 250,000,000 | [1] | ' | ' | 500,000,000 | ' | ' | 350,000,000 | ' | ' | |
Remaining authorized amount available for repurchases | $201,291,000 | [1] | $133,640,000 | [1] | ' | ' | ' | $650,000,000 | ' | ' | ' |
Option to increase tender by percentage of outstanding shares, up to | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ||
Share cost premium as a percentage of sale price | ' | ' | ' | ' | ' | ' | ' | 5.00% | 20.00% | ||
[1] | In addition to these amounts, the repurchase program approved by our Board of Directors allows for the use of cash proceeds received from the exercise of stock options by our officers, directors, and employees. |