Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |
Document Type | 8-K |
Document Period End Date | 31-Dec-14 |
Entity Registrant Name | OUTERWALL INC |
Entity Central Index Key | 941604 |
Amendment Flag | FALSE |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current Assets: | ||||
Cash and cash equivalents | $242,696 | $371,437 | $282,894 | $341,855 |
Accounts receivable, net of allowances of $2,223 and $1,826 | 48,590 | 50,296 | ||
Content library | 180,121 | 199,868 | ||
Prepaid expenses and other current assets | 39,837 | 84,709 | ||
Total current assets | 511,244 | 706,310 | ||
Property and equipment, net | 428,468 | 520,865 | ||
Deferred income taxes | 11,378 | 6,443 | ||
Goodwill and other intangible assets, net | 623,998 | 638,690 | ||
Other long-term assets | 8,231 | 19,075 | ||
Total assets | 1,583,319 | 1,891,383 | ||
Current Liabilities: | ||||
Accounts payable | 168,633 | 236,018 | ||
Accrued payable to retailers | 126,290 | 134,140 | ||
Other accrued liabilities | 137,126 | 134,127 | ||
Current portion of long-term debt and other long-term liabilities | 20,416 | 103,889 | ||
Deferred income taxes | 21,432 | 23,143 | ||
Total current liabilities | 473,897 | 631,317 | ||
Long-term debt and other long-term liabilities | 973,669 | 681,403 | ||
Deferred income taxes | 38,375 | 58,528 | ||
Total liabilities | 1,485,941 | 1,371,248 | ||
Commitments and contingencies | ||||
Debt conversion feature | 0 | 1,446 | ||
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; 36,600,166 and 36,356,357 shares issued; 18,926,242 and 26,150,900 shares outstanding; | 473,592 | 482,481 | ||
Treasury stock | -996,293 | -476,796 | ||
Retained earnings | 620,389 | 513,771 | ||
Accumulated other comprehensive loss | -310 | -767 | ||
Total stockholders’ equity | 97,378 | 518,689 | 549,088 | 513,902 |
Total liabilities and stockholders’ equity | $1,583,319 | $1,891,383 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $2,223 | $1,826 |
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 | 36,600,166 | 36,356,357 |
Common stock, shares outstanding | 18,926,242 | 26,150,900 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Revenue | $2,291,586 | $2,299,785 | $2,198,151 | |||
Expenses: | ||||||
Direct operating | 1,581,721 | [1] | 1,556,999 | [1] | 1,492,522 | [1] |
Marketing | 35,293 | 30,227 | 24,157 | |||
Research and development | 13,047 | 13,082 | 6,757 | |||
General and administrative | 190,643 | 220,293 | 203,532 | |||
Depreciation and other | 187,824 | 189,401 | 178,333 | |||
Amortization of intangible assets | 14,654 | 10,907 | 5,357 | |||
Total expenses | 2,023,182 | 2,020,909 | 1,910,658 | |||
Operating income | 268,404 | 278,876 | 287,493 | |||
Other income (expense), net: | ||||||
Income (loss) from equity method investments, net | -28,734 | 19,928 | -5,184 | |||
Interest expense, net | -47,644 | -32,807 | -15,640 | |||
Other, net | -1,185 | -3,599 | -155 | |||
Total other expense, net | -77,563 | -16,478 | -20,979 | |||
Income from continuing operations before income taxes | 190,841 | 262,398 | 266,514 | |||
Income tax expense | -66,164 | -39,710 | -100,211 | |||
Income from continuing operations | 124,677 | 222,688 | 166,303 | |||
Total loss from discontinued operations, net of tax | -18,059 | -47,896 | -16,073 | |||
Net income | 106,618 | 174,792 | 150,230 | |||
Other comprehensive income: | ||||||
Foreign currency translation adjustment | 457 | [2],[3] | 856 | [2],[4] | 1,048 | [2],[5] |
Comprehensive income | $107,075 | $175,648 | $151,278 | |||
Basic earnings (loss) per share: | ||||||
Continuing operations (in dollars per share) | $6.17 | $8.18 | $5.49 | |||
Discontinued operations (in dollars per share) | ($0.89) | ($1.76) | ($0.53) | |||
Basic earnings per share (in dollars per share) | $5.28 | $6.42 | $4.96 | |||
Diluted earnings (loss) per share: | ||||||
Continuing operations (in dollars per share) | $6.02 | $7.85 | $5.17 | |||
Discontinued operations (in dollars per share) | ($0.87) | ($1.69) | ($0.50) | |||
Diluted earnings per share (in dollars per share) | $5.15 | $6.16 | $4.67 | |||
Weighted average shares used in basic per share calculations | 20,192 | 27,216 | 30,305 | |||
Weighted average shares used in diluted per share calculations | 20,699 | 28,381 | 32,174 | |||
[1] | “Direct operating†excludes depreciation and other of $125.7 million, $129.1 million and $127.0 million for 2014, 2013 and 2012, respectively. | |||||
[2] | Foreign currency translation adjustment had no tax effect in 2014, 2013 and 2012. | |||||
[3] | Foreign currency translation adjustment had no tax effect in 2014. | |||||
[4] | Foreign currency translation adjustment had no tax effect in 2013. | |||||
[5] | Foreign currency translation adjustment had no tax effect in 2012. |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Depreciation and other excluded from direct operating expenses | $125.70 | $129.10 | $127 |
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, 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 | |||||
Excess 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 | |||||
Net income | 150,230 | 150,230 | |||||
Foreign currency translation adjustment | 1,048 | [1],[2] | 1,048 | [3] | |||
Debt Conversion, Converted Instrument, Shares Issued | 109 | ||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | -5,740 | -5,740 | |||||
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 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Proceeds from exercise of stock options, net (in shares) | 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 | |||||
Excess 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 | |||||
Conversion of debt, issuance of common stock (shares) | 272,336 | ||||||
Conversion of callable convertible debt, net of tax | -38,175 | -49,532 | 11,357 | ||||
Adjustment and settlement of debt conversion feature classified as temporary equity | -1,446 | -1,446 | |||||
Net income | 174,792 | 174,792 | |||||
Foreign currency translation adjustment | 856 | [1],[4] | 856 | [3] | |||
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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Proceeds from exercise of stock options, net (in shares) | 103,000 | 103,260 | |||||
Proceeds from exercise of stock options, net | 3,735 | 3,735 | |||||
Adjustments related to tax withholding for share-based compensation (in shares) | -61,543 | ||||||
Adjustments related to tax withholding for share-based compensation | -4,255 | -4,255 | |||||
Share-based payments expense (in shares) | 227,092 | ||||||
Share-based payments expense | 14,424 | 13,036 | 1,388 | ||||
Excess tax benefit on share-based compensation expense | 1,920 | 1,920 | |||||
Repurchases of common stock (in shares) | -7,925,227 | -7,925,227 | |||||
Repurchases of common stock | -545,140 | -545,140 | |||||
Conversion of debt, issuance of common stock (shares) | 431,760 | ||||||
Conversion of callable convertible debt, net of tax | -516 | -24,771 | 24,255 | ||||
Adjustment and settlement of debt conversion feature classified as temporary equity | 1,446 | 1,446 | |||||
Net income | 106,618 | 106,618 | |||||
Foreign currency translation adjustment | 457 | [1],[5] | 457 | [3] | |||
BALANCE at Dec. 31, 2014 | $97,378 | $473,592 | ($996,293) | $620,389 | ($310) | ||
BALANCE (in shares) at Dec. 31, 2014 | 18,926,242 | ||||||
[1] | Foreign currency translation adjustment had no tax effect in 2014, 2013 and 2012. | ||||||
[2] | Foreign currency translation adjustment had no tax effect in 2012. | ||||||
[3] | Foreign currency translation adjustment has no tax effect for the years ended December 31, 2014, 2013, and 2012. | ||||||
[4] | Foreign currency translation adjustment had no tax effect in 2013. | ||||||
[5] | Foreign currency translation adjustment had no tax effect in 2014. |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
concept | ||||||
Operating Activities: | ||||||
Net income | $106,618 | $174,792 | $150,230 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation and other | 195,162 | 193,700 | 179,147 | |||
Amortization of Intangible Assets Including Discontinued Operations | 14,692 | 10,933 | 5,378 | |||
Share-based payments expense | 13,384 | 16,831 | 19,362 | |||
Windfall excess tax benefits related to share-based payments | -1,964 | -3,698 | -5,740 | |||
Deferred income taxes | -22,611 | -10,933 | 87,573 | |||
Impairment expense | 0 | 32,732 | 0 | |||
(Income) loss from equity method investments, net | 28,734 | -19,928 | 5,184 | |||
Amortization of deferred financing fees and debt discount | 4,116 | 6,394 | 9,235 | |||
Loss from early extinguishment of debt | 2,018 | 6,013 | 953 | |||
Other | -1,750 | -2,039 | -5,053 | |||
Cash flows from changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 8,671 | 7,978 | -17,061 | |||
Content library | 19,747 | -22,459 | -30,693 | |||
Prepaid expenses and other current assets | 44,282 | -50,542 | -6,963 | |||
Other assets | 1,702 | 230 | 858 | |||
Accounts payable | -68,912 | 1,491 | 60,104 | |||
Accrued payable to retailers | -6,847 | -4,088 | 10,461 | |||
Other accrued liabilities | 1,309 | -9,573 | 2,787 | |||
Net Cash Provided by (Used in) Operating Activities | 338,351 | [1] | 327,834 | [1] | 465,762 | [1] |
Investing Activities: | ||||||
Purchases of property and equipment | -97,924 | -161,412 | -209,910 | |||
Proceeds from sale of property and equipment | 1,977 | 13,344 | 1,131 | |||
Acquisition of business, net of cash acquired | 0 | 244,036 | 0 | |||
Receipt of note receivable principal | 0 | 22,913 | 0 | |||
Cash paid for equity investments | -24,500 | -28,000 | -39,727 | |||
Payments for (Proceeds from) Other Investing Activities | 5,000 | 0 | 0 | |||
Net Cash Provided by (Used in) Investing Activities | -115,447 | [1] | -397,191 | [1] | -348,506 | [1] |
Financing Activities: | ||||||
Proceeds from issuance of senior unsecured notes | 295,500 | 343,769 | 0 | |||
Proceeds from new borrowing on Credit Facility | 642,000 | 400,000 | 0 | |||
Principal payments on Credit Facility | -680,125 | -215,313 | -10,938 | |||
Financing costs associated with Credit Facility and senior unsecured notes | -2,911 | [2] | -2,203 | 0 | ||
Settlement and conversion of convertible debt | -51,149 | -172,211 | -20,575 | |||
Repurchases of common stock | -545,091 | [3] | -195,004 | -139,724 | ||
Principal payments on capital lease obligations and other debt | -13,996 | -14,834 | -16,392 | |||
Windfall excess tax benefits related to share-based payments | 1,964 | 3,698 | 5,740 | |||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | -520 | 8,460 | 4,592 | |||
Net Cash Provided by (Used in) Financing Activities | -354,328 | [1] | 156,362 | [1] | -177,297 | [1] |
Effect of Exchange Rate on Cash and Cash Equivalents | 2,683 | 1,538 | 1,080 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | -128,741 | 88,543 | -58,961 | [1] | ||
Cash and cash equivalents: | ||||||
Beginning of period | 371,437 | 282,894 | 341,855 | |||
End of period | 242,696 | 371,437 | 282,894 | |||
Supplemental disclosure of cash flow information: | ||||||
Cash paid during the period for interest | 41,614 | 20,699 | 13,112 | |||
Cash paid during the period for income taxes, net | 36,777 | 55,989 | 9,211 | |||
Supplemental disclosure of non-cash investing and financing activities: | ||||||
Purchases of property and equipment financed by capital lease obligations | 8,198 | 7,408 | 19,174 | |||
Purchases of property and equipment included in ending accounts payable | 8,255 | 6,656 | 25,706 | |||
Non-cash gain included in equity investments | 0 | 68,376 | 0 | |||
Common stock issued on conversion of callable convertible debt, net of tax | 24,255 | 14,292 | 0 | |||
Non-cash debt issue costs | 4,500 | [2] | 6,231 | 0 | ||
Additional cash flow information | ||||||
Number of discontinued concepts | 4 | |||||
Deferred Finance Costs, Gross and Debt Instrument, Unamortized Discount | 8,200 | |||||
Debt Instrument, Unamortized Discount | 8,783 | 6,763 | ||||
Principal | 956,250 | 745,523 | ||||
Payments of Financing Costs | -2,911 | [2] | -2,203 | 0 | ||
Debt discount | 800 | |||||
Cost of repurchases of common stock, including tender offer fees | 545,100 | |||||
Tender Offer [Member] | ||||||
Additional cash flow information | ||||||
Professional fees paid | 3,720 | |||||
Payments for Fees | 3,700 | |||||
Senior Notes | Senior Unsecured Notes due 2021 | ||||||
Additional cash flow information | ||||||
Debt Instrument, Unamortized Discount | 4,152 | |||||
Principal | 300,000 | |||||
Senior Notes | Senior Unsecured Notes due 2019 | ||||||
Additional cash flow information | ||||||
Debt Instrument, Unamortized Discount | 4,296 | 5,317 | ||||
Principal | 350,000 | 350,000 | ||||
Deferred Finance Costs, Gross | 1,500 | |||||
Credit Facility | ||||||
Additional cash flow information | ||||||
Deferred Finance Costs, Gross | 2,200 | |||||
Revolving Line of Credit | Credit Facility | ||||||
Additional cash flow information | ||||||
Debt Instrument, Unamortized Discount | 0 | 0 | ||||
Principal | 160,000 | 0 | ||||
ecoATM [Member] | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||
Non-cash gain included in equity investments | 0 | 68,376 | 0 | |||
ecoATM [Member] | ||||||
Investing Activities: | ||||||
Acquisition of business, net of cash acquired | 244,036 | |||||
NCR [Member] | ||||||
Investing Activities: | ||||||
Acquisition of business, net of cash acquired | $0 | $0 | $100,000 | |||
[1] | During the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, 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. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. | |||||
[2] | Total financing costs associated with the Credit Facility and senior unsecured notes issued in the second quarter of 2014 were $8.2 million composed of non-cash debt issue costs of $4.5 million recorded as debt discount associated with our issuance of $300.0 million senior unsecured notes due 2021, $1.5 million in deferred financing fees associated with the senior unsecured notes, and $2.2 million in deferred financing fees associated with the refinancing of our credit facility. The cash payments for financing costs associated with the Credit Facility and senior unsecured notes in 2014 were $2.9 million. The remaining accrued balance of the total financing cost as of December 31, 2014 was $0.8 million. | |||||
[3] | The total cost of repurchases of common stock in 2014 was $545.1 million, which includes $3.7 million in fees and expenses relating to the tender offer recorded as part of the cost of treasury stock in our Consolidated Balance Sheets. The cash payments for the tender offer fees in 2014 were $3.7 million. |
Organization_and_Business
Organization and Business | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Organization And Business [Abstract] | ||||||
Organization and Business | Note 1: 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. During the first quarter of 2015: | ||||||
• | To align with a change in how our chief operating decision maker evaluates business performance, we added ecoATM, our electronic device recycling business, as a separate reportable segment. Previously, the results of ecoATM along with those of other self-service concepts were included in our New Ventures segment. The combined results of the other self-service concepts, which include our product sampling kiosk concept SAMPLEit, are included in the All Other reporting category as they do not meet quantitative thresholds to be reported as a separate segment. See Note 14: Business Segments and Enterprise-Wide Information for additional information; and | |||||
• | We discontinued our Redbox operations in Canada ("Redbox Canada") as the business was not meeting our performance expectations. We have reclassified the results of Redbox Canada to discontinued operations for all periods presented in our Consolidated Statements of Comprehensive Income. See Note 12: Discontinued Operations for additional information. | |||||
See Note 20: Recast Financial Information for a list of the footnotes that have been recast to conform to the above changes. | ||||||
Our core offerings in automated retail include our Redbox, Coinstar and ecoATM 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. We also offer self-service kiosks that exchange gift cards for cash under our Coinstar™ Exchange brand. Our ecoATM segment consists of self-service kiosks where consumers can recycle electronic devices for cash. In addition to our three reportable segments, we also conduct business activities through other self-service concepts, where we identify, evaluate, build or acquire and develop new self-service retail concepts and regularly assess these concepts to determine whether continued funding or other alternatives are appropriate. | ||||||
On July 23, 2013 we acquired the remaining 77.0% equity interest in our ecoATM business. We paid $262.9 million in cash and the primary assets received included property and equipment of $23.2 million, identified intangible assets of $41.4 million and goodwill of $264.2 million, which is not deductible for tax purposes. 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. Since the acquisition date, the results of ecoATM operations, with the exception of expense for rights to receive cash which are unallocated corporate expenses, are included in our ecoATM segment. See Note 14: Business Segments and Enterprise-Wide Information for more information. | ||||||
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, 2014, are as follows: | ||||||
Kiosks | Locations | |||||
Redbox | 42,280 | 34,740 | ||||
Coinstar | 21,340 | 20,250 | ||||
ecoATM | 1,890 | 1,660 | ||||
All Other | 90 | 90 | ||||
Total | 65,600 | 56,740 | ||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Summary of Significant Accounting Policies | Note 2: 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); 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 $242.7 million and $371.4 million at December 31, 2014, and December 31, 2013, respectively. Of this total, cash equivalents were $0.9 million and $65.8 million, respectively, and consisted 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, 2014, and December 31, 2013, were $81.7 million and $85.5 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, 2014, and December 31, 2013, were $66.5 million and $199.0 million, respectively in cash and cash equivalents held in financial institutions domestically and $11.6 million and $15.2 million, respectively 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. Amounts expensed for uncollectible accounts and amounts charged against the allowance were immaterial in all periods presented. | ||||||||||||||||||||||||
Content Library | ||||||||||||||||||||||||
Content library consists of movies and video games available for rent or purchase. We obtain our movie and video game content primarily 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. Amortization charges are 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, we 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 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 we continue to recognize substantially all of the amortization expense 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 - 10 years | |||||||||||||||||||||||
Redbox kiosks and components | 3 - 5 years | |||||||||||||||||||||||
ecoATM kiosk and components | 5 years | |||||||||||||||||||||||
Computers and software | 3 - 5 years | |||||||||||||||||||||||
Office furniture and equipment | 5 - 7 years | |||||||||||||||||||||||
Leased vehicles | 3 - 6 years | |||||||||||||||||||||||
Leasehold improvements (shorter of life of asset or remaining lease term) | 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 primarily composed 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 and 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 4: 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 12: Discontinued Operations for additional information. | ||||||||||||||||||||||||
On January 23, 2015, we made the decision to shut down our Redbox Canada operations as the business was not meeting the Company's performance expectations. On March 31, 2015, we completed the disposal of the Redbox Canada operations. As a result, we updated certain estimates used in the preparation of the financial statements and the remaining value of certain capitalized property and equipment, consisting primarily of installation costs, was amortized over the wind-down period ending March 31, 2015. See Note 12: Discontinued Operations for additional information. | ||||||||||||||||||||||||
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. In the event of a tax position where it would not be more likely than not that a tax benefit would be sustained, no tax benefit would be recognized in the financial statements. When applicable, associated interest and penalties have been recognized as a component of income tax expense. See Note 11: Income Taxes From Continuing Operations for additional information. | ||||||||||||||||||||||||
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 “Convertible Notes”). The Convertible Notes were convertible as of December 31, 2013 and the debt conversion feature was classified as temporary equity on our Consolidated Balance Sheets. On September 2, 2014, the Convertible Notes matured. In 2014, we retired or settled upon maturity, a combined 51,148 Convertible Notes for total consideration of $51.1 million in cash and the issuance of 431,760 shares of common stock. The amount by which total consideration exceeded the fair value of the Convertible Notes has been recorded as a reduction of stockholders’ equity. The loss from early extinguishment of the Convertible Notes was approximately $0.3 million and is recorded in interest expense in our Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||||||
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. In the fourth quarter of 2014, Redbox launched Redbox Play Pass, a new loyalty program, where customers can earn points redeemable for movie rentals. As customers accumulate points, we defer the estimated fair value of the points earned as deferred revenue (included within other current accrued liabilities). We deferred $1.5 million as of December 31, 2014. | |||||||||||||||||||||||
• | 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. | |||||||||||||||||||||||
• | ecoATM - Revenue is recognized upon the sale and shipment of devices collected at our kiosks to third parties. | |||||||||||||||||||||||
• | All Other - Revenue is recognized in our SAMPLEit concept when the service transaction is complete. | |||||||||||||||||||||||
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 or a fixed fee and is recorded in our Consolidated Statements of Comprehensive Income within 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 $11.1 million, $11.8 million and $11.7 million in 2014, 2013 and 2012, 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, except for those associated with discontinued operations which are included in Loss from discontinued operations, net of tax 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 Accumulated other comprehensive loss in our Consolidated Balance Sheets. | ||||||||||||||||||||||||
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. Expense for performance based shares is recognized over the vesting period if and when we conclude that it is probable that the performance condition will be achieved. We reassess the probability of vesting at each reporting period for awards with performance conditions and adjust compensation cost based on our probability assessment. | ||||||||||||||||||||||||
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 9: 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. 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 16: Fair Value. | ||||||||||||||||||||||||
Reclassifications | ||||||||||||||||||||||||
During the first quarter of 2015, we discontinued our Redbox Canada operations. We have reclassified the results of Redbox Canada to discontinued operations for all periods presented in our Consolidated Statements of Comprehensive Income. See Note 12: Discontinued Operations for more information. | ||||||||||||||||||||||||
During 2014, we reclassified certain deferred fees associated with the issuance of our Senior Notes due 2019 from other long-term assets to long-term debt and other long-term liabilities. We have reclassified these amounts for all periods presented in our Consolidated Balance Sheets. | ||||||||||||||||||||||||
During 2013, we discontinued four new venture concepts, Rubi, Crisp Market, Orango, 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 12: Discontinued Operations for more information. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
Revision of Previously Issued Financial Statements | ||||||||||||||||||||||||
During the second quarter of 2014, we identified adjustments to prior periods related to purchases of property and equipment included in ending accounts payable which impact the amounts presented as cash paid for purchases of property and equipment in the investing activities section of our consolidated statements of cash flows, the change in accounts payable within the operating activities section of the cash flow statement and the supplemental non-cash investing and financing activities disclosure of purchases of property and equipment included in ending accounts payable. We concluded that the error was not material to any of our prior period financial statements under the guidance of SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality. We applied the guidance of SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements, and revised the prior period financial statements presented. | ||||||||||||||||||||||||
The impact of the immaterial error on our prior period Consolidated Statements of Cash Flows is presented in the following table: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Dollars in thousands | As Reported | Adjustment | As Revised | As Reported | Adjustment | As Revised | ||||||||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | (2,252 | ) | $ | 3,743 | $ | 1,491 | $ | 58,248 | $ | 1,856 | $ | 60,104 | |||||||||||
Net cash flows from operating activities | $ | 324,091 | $ | 3,743 | $ | 327,834 | $ | 463,906 | $ | 1,856 | $ | 465,762 | ||||||||||||
Investing Activities: | ||||||||||||||||||||||||
Purchases of property and equipment | $ | (157,669 | ) | $ | (3,743 | ) | $ | (161,412 | ) | $ | (208,054 | ) | $ | (1,856 | ) | $ | (209,910 | ) | ||||||
Net cash flows from investing activities | $ | (393,448 | ) | $ | (3,743 | ) | $ | (397,191 | ) | $ | (346,650 | ) | $ | (1,856 | ) | $ | (348,506 | ) | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||||||||||||||
Purchases of property and equipment included in ending accounts payable | $ | 12,254 | $ | (5,598 | ) | $ | 6,656 | $ | 27,562 | $ | (1,856 | ) | $ | 25,706 | ||||||||||
Accounting Pronouncements Adopted During the Current Year | ||||||||||||||||||||||||
In May 2013, the FASB issued ASU No. 2013-05, "Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. For public entities, the ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Our adoption of ASU No. 2013-05 in the first quarter of 2014 did not have a material impact on our financial position, results of operations or cash flows. | ||||||||||||||||||||||||
In November 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." This ASU requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when: | ||||||||||||||||||||||||
1 | the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction, and | |||||||||||||||||||||||
2 | the entity intends to use the deferred tax asset for that purpose. | |||||||||||||||||||||||
The ASU changes existing presentation requirements but does not require new recurring disclosures. The ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013 for public entities. Our adoption of ASU No. 2013-11 in the first quarter of 2014 did not have a material impact on our financial position, results of operations or cash flows. | ||||||||||||||||||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the requirements for reporting discontinued operations. Under the ASU discontinued operations is defined as either a: | ||||||||||||||||||||||||
• | Component of an entity, or group of components, that | |||||||||||||||||||||||
◦ | has been disposed of, meets the criteria to be classified as held-for-sale, or has been abandoned/spun-off; and | |||||||||||||||||||||||
◦ | represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, or a | |||||||||||||||||||||||
• | Business or nonprofit activity that, on acquisition, meets the criteria to be classified as held-for-sale. | |||||||||||||||||||||||
We adopted the provisions of ASU 2014-08 during the first quarter of 2015 and applied the guidance to our Redbox Canada discontinued operations. See Note 12: Discontinued Operations for additional information. | ||||||||||||||||||||||||
Accounting Pronouncements Not Yet Adopted | ||||||||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The amendments in the ASU can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures. We are currently evaluating the impact of ASU 2014-09, including the methods of implementation, which is effective for us in our fiscal year beginning on January 1, 2017. | ||||||||||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU describes how an entity’s management should assess whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management should consider both quantitative and qualitative factors in making its assessment. | ||||||||||||||||||||||||
If after considering management’s plans, substantial doubt about an entity’s going concern is alleviated, an entity shall disclose information in the footnotes that enables the users of the financial statements to understand the events that raised the going concern and how management’s plan alleviated this concern. | ||||||||||||||||||||||||
If after considering management’s plans, substantial doubt about an entity’s going concern is not alleviated, the entity shall disclose in the footnotes indicating that a substantial doubt about the entity’s going concern exists within one year of the date of the issued financial statements. Additionally, the entity shall disclose the events that led to this going concern and management’s plans to mitigate them. | ||||||||||||||||||||||||
We are currently evaluating the impact of ASU 2014-15, which is effective for us in our fiscal year beginning January 1, 2016. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Note 3: Property and Equipment | |||||||
December 31, | ||||||||
Dollars in thousands | 2014 | 2013 | ||||||
Kiosks and components | $ | 1,165,925 | $ | 1,105,761 | ||||
Computers, servers, and software | 200,915 | 226,389 | ||||||
Office furniture and equipment | 9,218 | 7,260 | ||||||
Vehicles | 6,234 | 6,553 | ||||||
Leasehold improvements | 29,625 | 23,198 | ||||||
Property and equipment, at cost | 1,411,917 | 1,369,161 | ||||||
Accumulated depreciation and amortization | (983,449 | ) | (848,296 | ) | ||||
Property and equipment, net | $ | 428,468 | $ | 520,865 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Other Intangible Assets | Note 4: Goodwill and Other Intangible Assets | |||||||||||||||
Goodwill | ||||||||||||||||
The carrying amount of goodwill was as follows: | ||||||||||||||||
Dollars in thousands | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Goodwill | $ | 559,307 | $ | 559,307 | ||||||||||||
Goodwill by Segment | ||||||||||||||||
The carrying amount of goodwill by segment was as follows: | ||||||||||||||||
Dollars in thousands | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Redbox | $ | 138,743 | $ | 138,743 | ||||||||||||
Coinstar | 156,351 | 156,351 | ||||||||||||||
ecoATM | 264,213 | 264,213 | ||||||||||||||
Total goodwill | $ | 559,307 | $ | 559,307 | ||||||||||||
We elected to by-pass the qualitative assessment and performed the annual goodwill impairment test based on a quantitative analysis as of November 30, 2014. We estimated the fair value of our goodwill bearing reporting units using both the income and market approaches. Our estimates of fair value can change significantly based on factors such as revenue growth rates, profit margins, discount rates, market conditions, market prices, and changes in business strategies. As the estimated fair value of each reporting unit exceeded its respective carrying value in the first step of the goodwill impairment test it was not necessary to proceed to the second step and there was no goodwill impairment in 2014. | ||||||||||||||||
Other Intangible Assets | ||||||||||||||||
The gross amount of our other intangible assets and the related accumulated amortization were as follows: | ||||||||||||||||
Dollars in thousands | Amortization | December 31, | ||||||||||||||
Period | 2014 | 2013 | ||||||||||||||
Retailer relationships | 5 - 10 years | $ | 53,295 | $ | 53,295 | |||||||||||
Accumulated amortization | (23,200 | ) | (17,768 | ) | ||||||||||||
Retailer relationships, net | 30,095 | 35,527 | ||||||||||||||
Developed technology | 5 years | 34,000 | 34,000 | |||||||||||||
Accumulated amortization | (9,633 | ) | (2,833 | ) | ||||||||||||
Developed technology, net | 24,367 | 31,167 | ||||||||||||||
Other | 1 - 40 years | 16,800 | 16,800 | |||||||||||||
Accumulated amortization | (6,571 | ) | (4,111 | ) | ||||||||||||
Other, net | 10,229 | 12,689 | ||||||||||||||
Total intangible assets, net | $ | 64,691 | $ | 79,383 | ||||||||||||
Amortization expense was as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||||||
Retailer relationships | $ | 5,432 | $ | 6,250 | $ | 4,456 | ||||||||||
Developed technology | 6,800 | 2,833 | — | |||||||||||||
Other | 2,460 | 1,850 | 922 | |||||||||||||
Total amortization of intangible assets | $ | 14,692 | $ | 10,933 | $ | 5,378 | ||||||||||
Less: amortization included in discontinued operations | (38 | ) | (26 | ) | (21 | ) | ||||||||||
Total amortization of intangible assets from continuing operations | $ | 14,654 | $ | 10,907 | $ | 5,357 | ||||||||||
Assuming no future impairment, the expected future amortization as of December 31, 2014 is as follows: | ||||||||||||||||
Dollars in thousands | Retailer | Developed Technology | Other | Total | ||||||||||||
Relationships | ||||||||||||||||
2015 | $ | 4,012 | $ | 6,800 | $ | 2,407 | $ | 13,219 | ||||||||
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 | ||||||||||||
2019 | 4,012 | — | 801 | 4,813 | ||||||||||||
Thereafter | 10,035 | — | 765 | 10,800 | ||||||||||||
Total expected amortization | $ | 30,095 | $ | 24,367 | $ | 10,229 | $ | 64,691 | ||||||||
Equity_Method_Investments_and_
Equity Method Investments and Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Equity Method Investments and Related Party Transactions | Note 5: 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”). 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 following table summarizes Redbox's initial cash capital contribution and subsequent cash capital contributions representing its pro-rata share of requests made by the Joint Venture board of managers: | |||||||||||||
Dollars in thousands | Cash Contributions | ||||||||||||
2012 | $ | 24,500 | |||||||||||
2013 | 28,000 | ||||||||||||
2014 | 24,500 | ||||||||||||
Total cash capital contributions | $ | 77,000 | |||||||||||
On October 19, 2014, the Company and Verizon entered into an agreement whereby we would withdraw from the Joint Venture effective October 20, 2014. Pursuant to the Withdrawal Agreement, all of Redbox’s rights under the Joint Venture’s operating agreement were extinguished for a total payment of $16.8 million made to Redbox and no further capital contributions were required. The $16.8 million payment received was composed of an $11.8 million expense reimbursement payment to satisfy all outstanding amounts due and additional expenses incurred by Redbox inclusive of transition services performed for the Joint Venture to Redbox and a $5.0 million extinguishment payment which is included within Income (loss) from equity method investments within our Consolidated Statements of Comprehensive Income. | |||||||||||||
Other Equity Method Investments | |||||||||||||
We include our equity method investments within other long-term assets on our Consolidated Balance Sheets. As of December 31, 2014 our $1.5 million investment in SoloHealth, Inc., representing 10% ownership, was our only equity method investment. | |||||||||||||
Since we acquired ecoATM on July 23, 2013, the results of ecoATM operations, with the exception of expense for rights to receive cash which are unallocated corporate expenses, are included in our ecoATM segment. See Note 14: Business Segments and Enterprise-Wide Information 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: | |||||||||||||
Year Ended December 31, | |||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | ||||||||||
Trademark gain | $ | — | $ | — | $ | 19,500 | |||||||
Gain on previously held equity interest in ecoATM | — | 68,376 | — | ||||||||||
Proportionate share of net loss of equity method investees: | |||||||||||||
Joint Venture | (25,793 | ) | (42,660 | ) | (20,236 | ) | |||||||
ecoATM and SoloHealth | (530 | ) | (3,313 | ) | (2,179 | ) | |||||||
Total proportionate share of net loss of equity method investees | (26,323 | ) | (45,973 | ) | (22,415 | ) | |||||||
Amortization of difference in carrying amount and underlying equity in Joint Venture | (2,411 | ) | (2,475 | ) | (2,269 | ) | |||||||
Total income (loss) from equity method investments | $ | (28,734 | ) | $ | 19,928 | $ | (5,184 | ) | |||||
A summary of financial information for our equity method investees in the aggregate, as provided to us by the investees, is as follows and includes the balance sheet as of and statement of operations through October 20, 2014, the date of our withdrawal from the Joint Venture, and as of December 31, 2014 and the period ended December 31, 2014 for SoloHealth: | |||||||||||||
Balance Sheets | October 20, | December 31, | |||||||||||
Dollars in thousands | 2014(1) | 2014(2) | 2013 | ||||||||||
Current assets | $ | 9,095 | $ | 3,408 | $ | 32,832 | |||||||
Noncurrent assets | $ | 3,053 | $ | 20,376 | $ | 30,765 | |||||||
Current liabilities | $ | 86,735 | $ | 7,321 | $ | 46,706 | |||||||
Long-term liabilities | $ | — | $ | 18,754 | $ | 23,905 | |||||||
Redeemable preferred stock | $ | — | $ | 23,734 | $ | 23,542 | |||||||
(1) Represents the Joint Venture only | |||||||||||||
(2) Represents SoloHealth only | |||||||||||||
Statement of Operations | Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | ||||||||||
Revenue | $ | 29,963 | $ | 15,824 | $ | 2,067 | |||||||
Cost of sales and service | $ | 68,732 | $ | 25,092 | $ | 10,716 | |||||||
Net loss and loss from continuing operations | $ | 140,919 | $ | 134,911 | $ | 58,510 | |||||||
Related Party Transactions | |||||||||||||
At December 31, 2013, included within accounts receivable, net of allowance, on our Consolidated Balance Sheets, was $5.9 million due from the Joint Venture related to costs incurred by Redbox on behalf of the Joint Venture during the normal course of business. There were no amounts due as of December 31, 2014. |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets and Other Liabilities Disclosure [Abstract] | ||||||||
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities | Note 6: Prepaid Expenses and Other Current Assets and Other Accrued Liabilities | |||||||
Prepaid expenses and other current assets | ||||||||
December 31, | ||||||||
Dollars in thousands | 2014 | 2013 | ||||||
Spare parts | $ | 13,643 | $ | 18,975 | ||||
Licenses | 5,881 | 4,568 | ||||||
Electronic devices inventory | 5,259 | 3,529 | ||||||
Prepaid rent | 1,446 | 1,302 | ||||||
DVD cases and labels | 1,330 | 2,596 | ||||||
Income taxes receivable | 113 | 37,466 | ||||||
Other | 12,165 | 16,273 | ||||||
Total prepaid and other current assets | $ | 39,837 | $ | 84,709 | ||||
Other accrued liabilities | ||||||||
December 31, | ||||||||
Dollars in thousands | 2014 | 2013 | ||||||
Payroll related expenses | $ | 33,343 | $ | 33,852 | ||||
Accrued content library expense | 23,226 | 21,602 | ||||||
Business taxes | 21,629 | 22,939 | ||||||
Insurance | 9,615 | 13,379 | ||||||
Deferred revenue | 6,995 | 4,323 | ||||||
Accrued interest expense | 6,974 | 7,015 | ||||||
Deferred rent expense | 6,162 | 5,713 | ||||||
Service contract provider expenses | 4,191 | 8,134 | ||||||
Other | 24,991 | 17,170 | ||||||
Total other accrued liabilities | $ | 137,126 | $ | 134,127 | ||||
Debt_and_Other_LongTerm_Liabil
Debt and Other Long-Term Liabilities | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||
Debt and Other Long-Term Liabilities | Note 7: Debt and Other Long-Term Liabilities | |||||||||||||||||||||||||||||||||||
Debt | Other Liabilities | Total | ||||||||||||||||||||||||||||||||||
Senior Notes | Credit Facility | Total Debt | Capital Lease Obligations | Asset retirement obligations | Other long-term liabilities | |||||||||||||||||||||||||||||||
Dollars in thousands | Senior Unsecured Notes due 2019 | Senior Unsecured Notes due 2021 | Term Loans | Revolving Line of Credit | ||||||||||||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||||||||||
Principal | $ | 350,000 | $ | 300,000 | $ | 146,250 | $ | 160,000 | $ | 956,250 | ||||||||||||||||||||||||||
Discount | (4,296 | ) | (4,152 | ) | (335 | ) | — | (8,783 | ) | |||||||||||||||||||||||||||
Total | 345,704 | 295,848 | 145,915 | $ | 160,000 | 947,467 | $ | 15,391 | $ | 13,576 | $ | 17,651 | $ | 994,085 | ||||||||||||||||||||||
Less: current portion | — | — | (9,390 | ) | — | (9,390 | ) | (11,026 | ) | — | — | (20,416 | ) | |||||||||||||||||||||||
Total long-term portion | $ | 345,704 | $ | 295,848 | $ | 136,525 | $ | 160,000 | $ | 938,077 | $ | 4,365 | $ | 13,576 | $ | 17,651 | $ | 973,669 | ||||||||||||||||||
Unamortized deferred financing fees(1) | $ | 649 | $ | 1,372 | $ | — | $ | 2,965 | $ | 4,986 | $ | 4,986 | ||||||||||||||||||||||||
Debt | Other Liabilities | Total | ||||||||||||||||||||||||||||||||||
Senior Unsecured Notes due 2019 | Credit Facility | Convertible Notes | Total Debt | Capital Lease Obligations | Asset retirement obligations | Other long-term liabilities | ||||||||||||||||||||||||||||||
Dollars in thousands | Term Loans | Revolving Line of Credit | ||||||||||||||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||||||||||
Principal | $ | 350,000 | $ | 344,375 | $ | — | $ | 51,148 | $ | 745,523 | ||||||||||||||||||||||||||
Discount | (5,317 | ) | — | — | (1,446 | ) | (6,763 | ) | ||||||||||||||||||||||||||||
Total | 344,683 | 344,375 | $ | — | 49,702 | 738,760 | $ | 21,361 | $ | 13,086 | $ | 12,085 | $ | 785,292 | ||||||||||||||||||||||
Less: current portion | — | (42,187 | ) | — | (49,702 | ) | (91,889 | ) | (11,997 | ) | — | (3 | ) | (103,889 | ) | |||||||||||||||||||||
Total long-term portion | $ | 344,683 | $ | 302,188 | $ | — | $ | — | $ | 646,871 | $ | 9,364 | $ | 13,086 | $ | 12,082 | $ | 681,403 | ||||||||||||||||||
Unamortized deferred financing fees(1) | $ | 832 | $ | 1,259 | $ | 2,749 | $ | 186 | $ | 5,026 | $ | 5,026 | ||||||||||||||||||||||||
(1)Deferred financing fees are recorded in other long-term assets in our Consolidated Balance Sheets and are amortized on a straight line basis over the life of the related loan. | ||||||||||||||||||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||||||||||||
Dollars in thousands | Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Cash interest expense | $ | 41,562 | $ | 25,289 | $ | 12,833 | ||||||||||||||||||||||||||||||
Non-cash interest expense: | ||||||||||||||||||||||||||||||||||||
Amortization of debt discount | 2,606 | 4,674 | 7,109 | |||||||||||||||||||||||||||||||||
Amortization of deferred financing fees | 1,510 | 1,720 | 2,126 | |||||||||||||||||||||||||||||||||
Other | — | (550 | ) | (2,700 | ) | |||||||||||||||||||||||||||||||
Total non-cash interest expense | 4,116 | 5,844 | 6,535 | |||||||||||||||||||||||||||||||||
Total cash and non-cash interest expense | 45,678 | 31,133 | 19,368 | |||||||||||||||||||||||||||||||||
Loss from early extinguishment of debt | 2,018 | 6,013 | 953 | |||||||||||||||||||||||||||||||||
Total interest expense | $ | 47,696 | $ | 37,146 | $ | 20,321 | ||||||||||||||||||||||||||||||
Senior Unsecured Notes Due 2019 | ||||||||||||||||||||||||||||||||||||
On March 12, 2013, we entered into an indenture pursuant to which we issued $350.0 million principal amount of 6.000% Senior Notes due 2019 (the “Senior Notes due 2019”) at par for proceeds, net of expenses, of $343.8 million. The expenses were allocated between debt discount and deferred financing fees based on their nature. Each of our direct and indirect U.S. subsidiaries guarantees the Senior Notes due 2019. As of December 31, 2014, we were in compliance with the covenants of the related indenture. | ||||||||||||||||||||||||||||||||||||
Senior Unsecured Notes Due 2021 | ||||||||||||||||||||||||||||||||||||
On June 9, 2014, we entered into an indenture pursuant to which we issued $300.0 million principal amount of 5.875% Senior Notes due 2021 (the "Senior Notes due 2021") at par for proceeds, net of expenses, of $294.0 million. The expenses were allocated between debt discount and deferred financing fees based on their nature. Each of our direct and indirect U.S. subsidiaries guarantees the Senior Notes due 2021. | ||||||||||||||||||||||||||||||||||||
The Senior Notes due 2021 and related guarantees: | ||||||||||||||||||||||||||||||||||||
• | are general unsecured obligations and are effectively subordinated to all of our and our subsidiary guarantors’ existing and future secured debt to the extent of the collateral securing that secured debt, and | |||||||||||||||||||||||||||||||||||
• | will rank equally to all of our and our subsidiary guarantors’ other unsecured and unsubordinated indebtedness. | |||||||||||||||||||||||||||||||||||
In addition, the Senior Notes due 2021: | ||||||||||||||||||||||||||||||||||||
• | will be effectively subordinated to all of the liabilities of our existing and future subsidiaries that are not guaranteeing the Senior Notes due 2021, | |||||||||||||||||||||||||||||||||||
• | require interest payable on June 15 and December 15 of each year, beginning on December 15, 2014, and | |||||||||||||||||||||||||||||||||||
• | mature on June 15, 2021. | |||||||||||||||||||||||||||||||||||
We may redeem any of the Senior Notes due 2021: | ||||||||||||||||||||||||||||||||||||
• | beginning on June 15, 2017 at a redemption price of 104.406% of their principal amount plus accrued and unpaid interest and additional interest, if any; then | |||||||||||||||||||||||||||||||||||
• | the redemption price will be 102.938% of their principal amount plus accrued and unpaid interest and additional interest, if any, for the twelve-month period beginning June 15, 2018; then | |||||||||||||||||||||||||||||||||||
• | the redemption price will be 101.469% of their principal amount plus accrued and unpaid interest and additional interest, if any, for the twelve-month period beginning June 15, 2019; and then | |||||||||||||||||||||||||||||||||||
• | the redemption price will be 100.000% of their principal amount plus accrued interest and unpaid interest and additional interest, if any, beginning on June 15, 2020. | |||||||||||||||||||||||||||||||||||
• | We may also redeem some or all of the Senior Notes due 2021 before June 15, 2017 at a redemption price of 100.000% 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 June 15, 2017, we may redeem up to 35% of the aggregate principal amount with the proceeds of certain equity offerings at 105.875% of their principal amount plus accrued and unpaid interest and additional interest, if any; we may make such redemption only if, after any such redemption, at least 65% of the aggregate principal amount originally issued remains outstanding. | |||||||||||||||||||||||||||||||||||
Upon a change of control as defined in the indenture related to the Senior Notes due 2021, we will be required to make an offer to purchase the Senior Notes due 2021 or any portion thereof. That purchase price will equal 101% of the principal amount of the Senior Notes due 2021 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 Senior Notes due 2021 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 Senior Notes due 2021 restrict our ability and the ability of certain of our 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 related indenture will be subject to a number of important qualifications and exceptions. | ||||||||||||||||||||||||||||||||||||
The indenture related to the Senior Notes due 2021 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 then outstanding may declare the principal amount plus accrued and unpaid interest to be immediately due and payable. As of December 31, 2014, we were in compliance with the covenants of the related indenture. | ||||||||||||||||||||||||||||||||||||
In connection with the issuance of the Senior Notes due 2021 and related guarantees, we agreed to register the Senior Notes due 2021 and related guarantees under the Securities Act of 1933, as amended (the “Securities Act”) so as to allow holders of the Senior Notes due 2021 and related guarantees to exchange the Senior Notes due 2021 and the related guarantees for the same principal amount of a new issue of Senior Notes due 2021 and related guarantees (collectively, the “Exchange Notes”) with substantially identical terms, except that the Exchange Notes will generally be freely transferable under the Securities Act. If we fail to comply with these obligations on time (a “registration default”), we generally will be required to pay additional interest at a rate of 0.25% per annum for the first 90-day period following a registration default and an additional 0.25% per annum for each subsequent 90-day period that such additional interest continues to accrue (provided that such rate may not exceed 1.00% per annum). | ||||||||||||||||||||||||||||||||||||
Revolving Line of Credit and Term Loan | ||||||||||||||||||||||||||||||||||||
On June 24, 2014, we entered into the Third Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) providing for a senior secured credit facility (the "Credit Facility"). The Amended and Restated Credit Agreement amended and restated in its entirety the Second Amended and Restated Credit Agreement dated as of November 20, 2007 and amended and restated as of April 29, 2009 and as of July 15, 2011 and all amendments and restatements thereto. The credit facility provided under the previous credit agreement was replaced by the Credit Facility. As a result of this refinancing activity, in the six months ended June 30, 2014, we recorded a loss on the extinguishment of the previous credit agreement of $1.7 million for certain previously capitalized and unamortized debt issuance costs. The loss on extinguishment is recorded within Interest expense, net in our Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||||||||||||||||||
The Credit Facility consists of (a) a $150.0 million amortizing term loan (the “Term Loan”) and (b) a $600.0 million revolving line of credit (the “Revolving Line”), which includes (i) a $75.0 million sublimit for the issuance of letters of credit, (ii) a $50.0 million sublimit for swingline loans and (iii) a $75.0 million sublimit for loans in certain foreign currencies available to us and certain wholly owned Company foreign subsidiaries (the “Foreign Borrowers”). We may, subject to applicable conditions and subject to obtaining commitments from lenders, request an increase in the Revolving Line of up to $200.0 million in aggregate (the “Accordion”). | ||||||||||||||||||||||||||||||||||||
We (or the Foreign Borrowers, if applicable), subject to applicable conditions, may generally elect interest rates on the Term Loan and Revolving Line calculated by reference to (a) LIBOR (“London Interbank Offered Rate”) (or the Canadian Dealer Offered Rate, in the case of loans denominated in Canadian Dollars or, if LIBOR is not available for a foreign currency, such other interest rate customarily used by Bank of America for such foreign currency) for given interest periods (the “LIBOR/Eurocurrency Rate”) or (b) on loans in U.S. Dollars made to us, Bank of America’s prime rate (or, if greater, (i) the average rate on overnight federal funds plus 0.50% or (ii) the daily floating one month LIBOR plus 1%) (the “Base Rate”), plus a margin determined by our consolidated net leverage ratio. For swingline borrowings, we will pay interest at the Base Rate, plus a margin determined by our consolidated net leverage ratio. For borrowings made with the LIBOR/Eurocurrency Rate, the margin ranges from 125 to 200 basis points, while for borrowings made with the Base Rate, the margin ranges from 25 to 100 basis points. | ||||||||||||||||||||||||||||||||||||
The Amended and Restated Credit Agreement requires principal amortization payments under the Term Loan as follows: | ||||||||||||||||||||||||||||||||||||
Dollars in thousands | Repayment Amount | |||||||||||||||||||||||||||||||||||
2015 | $ | 9,376 | ||||||||||||||||||||||||||||||||||
2016 | 13,126 | |||||||||||||||||||||||||||||||||||
2017 | 15,000 | |||||||||||||||||||||||||||||||||||
2018 | 18,750 | |||||||||||||||||||||||||||||||||||
2019 | 89,998 | |||||||||||||||||||||||||||||||||||
Total | $ | 146,250 | ||||||||||||||||||||||||||||||||||
The Revolving Line matures on June 24, 2019, at which time all outstanding borrowings must be repaid and all outstanding letters of credit must have been terminated or cash collateralized. The maturity date of the borrowings under the Credit Facility may be accelerated to December 18, 2018 if our senior unsecured notes due 2019 remain outstanding on or after such date. We may prepay amounts borrowed under the Term Loan without premium or penalty (other than breakage costs in the case of borrowings made with the LIBOR/Eurocurrency Rate), but amounts prepaid may not be re-borrowed. | ||||||||||||||||||||||||||||||||||||
The Amended and Restated Credit Agreement contains events of default that include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross defaults to certain other indebtedness, and events constituting a change of control. The occurrence of an event of default will increase the applicable rate of interest and could result in the acceleration of our obligations under the Credit Facilities and the obligations of any or all of the Guarantors to pay the full amount of our (or any Foreign Borrower’s) obligations under the Credit Facility. | ||||||||||||||||||||||||||||||||||||
The Amended and Restated Credit Agreement contains certain loan covenants, including, among others, financial covenants providing for a maximum consolidated net leverage ratio (i.e., consolidated total debt (net of certain cash and cash equivalents held by us and our domestic subsidiaries) to consolidated EBITDA) and a minimum consolidated interest coverage ratio, and limitations on our ability with regard to the incurrence of debt, the existence of liens, capital expenditures, stock repurchases and dividends, investments, and mergers, dispositions and acquisitions. Our obligations under the Credit Facility are guaranteed by each of our direct and indirect U.S. subsidiaries (collectively, the “Guarantors”), and if any Foreign Borrower is added to the Credit Facility, the Foreign Borrower’s obligations will be guaranteed by us and each of the Guarantors. As of December 31, 2014, the interest rate on amounts outstanding under the Credit Facility was 1.92% and we were in compliance with the covenants of the Credit Facility. | ||||||||||||||||||||||||||||||||||||
Convertible Debt | ||||||||||||||||||||||||||||||||||||
On September 2, 2014, our 4.0% Convertible Senior Notes (the “Convertible Notes”) matured. The aggregate outstanding principal was $51.1 million at December 31, 2013. | ||||||||||||||||||||||||||||||||||||
The Convertible Notes were convertible as of December 31, 2013 and the debt conversion feature was classified as temporary equity on our Consolidated Balance Sheets. In 2014, we retired or settled upon maturity, a combined 51,148 Convertible Notes for total consideration of $51.1 million in cash and the issuance of 431,760 shares of common stock. The amount by which total consideration exceeded the fair value of the Convertible Notes has been recorded as a reduction of stockholders’ equity. The loss from early extinguishment of the Convertible Notes was approximately $0.3 million and is recorded in Interest expense, net in our Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||||||||||||||||||
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; Bellevue, Washington; and San Diego, California as well as the related unrecognized tax benefits as follows: | ||||||||||||||||||||||||||||||||||||
Dollars in thousands | December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Tenant improvement and deferred rent and other | $ | 13,013 | $ | 9,301 | ||||||||||||||||||||||||||||||||
Unrecognized tax benefit | 4,638 | 2,781 | ||||||||||||||||||||||||||||||||||
Total other long-term liabilities | $ | 17,651 | $ | 12,082 | ||||||||||||||||||||||||||||||||
Repurchases_of_Common_Stock
Repurchases of Common Stock | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Class of Stock Disclosures [Abstract] | |||||||||||
Repurchases Of Common Stock | Note 8: Repurchases of Common Stock | ||||||||||
Board Authorization | |||||||||||
On January 30, 2014, our Board of Directors approved an additional stock repurchase program of up to $500.0 million of our common stock plus the cash proceeds received from the exercise of stock options by our officers, directors, and employees. 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. The tender offer expired on March 7, 2014. | |||||||||||
Repurchases | |||||||||||
Repurchased shares become a part of treasury stock. The shares tendered for tax withholding on vesting of restricted stock awards do not impact the repurchase program approved by our Board. The following tables present a summary of our 2014 authorized stock repurchase balance and repurchases made during the past three years: | |||||||||||
Dollars in thousands | Board Authorization | ||||||||||
Authorized repurchase - as of January 1, 2014(1) | $ | 201,291 | |||||||||
Additional board authorization(1) | 500,000 | ||||||||||
Proceeds from the exercise of stock options | 3,735 | ||||||||||
Repurchase of common stock from open market | (170,582 | ) | |||||||||
Repurchase from tender offer(2) | (370,789 | ) | |||||||||
Authorized repurchase - as of December 31, 2014(1) | $ | 163,655 | |||||||||
Repurchases made in the year ended December 31, | Number of Shares | Average Price per Share (in dollars) | Total Purchase Price (in thousands) | ||||||||
Repurchased | |||||||||||
2014 | |||||||||||
Tender offer(2) | 5,291,701 | $ | 70.07 | $ | 370,789 | ||||||
Open market | 2,633,526 | $ | 64.77 | 170,582 | |||||||
Total 2014 | 7,925,227 | $ | 68.31 | 541,371 | |||||||
2013 | 3,306,433 | $ | 58.98 | 195,004 | |||||||
2012 | 2,799,115 | $ | 49.92 | 139,724 | |||||||
Total | 14,030,775 | $ | 62.44 | $ | 876,099 | ||||||
-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. | ||||||||||
-2 | Fees and expenses totaling $3.7 million associated with the tender offer do not impact the repurchase program approved by our Board, are excluded from the total purchase price shown here and were recorded as part of the cost of treasury stock in our Consolidated Balance Sheets. | ||||||||||
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 7: Debt and Other Long-Term Liabilities for additional information about the terms of the Credit Facility. |
ShareBased_Payments
Share-Based Payments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Share-based Compensation [Abstract] | ||||||||||||
Share-Based Payments | Note 9: 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-14 | |||||||||||
Unissued common stock reserved for issuance under all plans | 1,219 | |||||||||||
Shares available for future grants | 1,090 | |||||||||||
Certain information regarding our share-based payments is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands except per share data | 2014 | 2013 | 2012 | |||||||||
Share-based payments expense: | ||||||||||||
Share-based compensation - stock options | $ | 803 | $ | 1,566 | $ | 2,654 | ||||||
Share-based compensation - restricted stock | 11,214 | 10,504 | 10,593 | |||||||||
Share-based payments for content arrangements | 1,367 | 4,761 | 6,115 | |||||||||
Total share-based payments expense | $ | 13,384 | $ | 16,831 | $ | 19,362 | ||||||
Tax benefit on share-based payments expense | $ | 5,134 | $ | 6,392 | $ | 7,246 | ||||||
Per share weighted average grant date fair value of stock options granted | $ | — | $ | 53.9 | $ | 27.24 | ||||||
Per share weighted average grant date fair value of restricted stock granted | $ | 71.37 | $ | 53.94 | $ | 55.94 | ||||||
Total intrinsic value of stock options exercised | $ | 3,263 | $ | 10,567 | $ | 10,509 | ||||||
Grant date fair value of restricted stock vested | $ | 13,036 | $ | 12,641 | $ | 11,648 | ||||||
31-Dec-14 | ||||||||||||
Dollars in thousands | Unrecognized Share-Based Payments Expense | Weighted-Average Remaining Life | ||||||||||
Unrecognized share-based payments expense: | ||||||||||||
Share-based compensation - stock options | $ | 863 | 1.8 years | |||||||||
Share-based compensation - restricted stock | 20,714 | 2.1 years | ||||||||||
Share-based payments for content arrangements (1) | 1,041 | 0.8 years | ||||||||||
Total unrecognized share-based payments expense | $ | 22,618 | ||||||||||
(1) | Related to 25,000 shares of restricted stock granted to Sony in connection with extending our existing content license agreement. The unrecognized expense associated with these vested shares is recognized over the agreement term. | |||||||||||
Share-Based Compensation | ||||||||||||
Stock options | ||||||||||||
Shares of common stock are issued upon exercise of stock options. The following table presents a summary of stock option activity for 2014: | ||||||||||||
Shares in thousands | Options | Weighted Average Exercise Price | ||||||||||
Outstanding, December 31, 2013 | 248 | $ | 45.72 | |||||||||
Granted | — | $ | — | |||||||||
Exercised | (103 | ) | $ | 36.17 | ||||||||
Canceled, expired, or forfeited | (17 | ) | $ | 52.04 | ||||||||
Outstanding, December 31, 2014 | 128 | $ | 52.59 | |||||||||
Certain information regarding stock options outstanding as of December 31, 2014, is as follows: | ||||||||||||
Options | ||||||||||||
Shares and intrinsic value in thousands | Outstanding | Exercisable | ||||||||||
Number | 128 | 58 | ||||||||||
Weighted average per share exercise price | $ | 52.59 | $ | 51.48 | ||||||||
Aggregate intrinsic value | $ | 2,904 | $ | 1,384 | ||||||||
Weighted average remaining contractual term (in years) | 7.31 | 6.79 | ||||||||||
Restricted stock and performance based 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. 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. | ||||||||||||
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 and subsequent to 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 if and when we conclude that it is probable that the performance condition will be achieved. | ||||||||||||
The following table presents a summary of restricted stock award activity for 2014: | ||||||||||||
Shares in thousands | Restricted Stock Awards | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested, December 31, 2013 | 597 | $ | 52.58 | |||||||||
Granted | 347 | $ | 71.37 | |||||||||
Vested | (190 | ) | $ | 50.41 | ||||||||
Forfeited | (145 | ) | $ | 59.35 | ||||||||
Non-vested, December 31, 2014 | 609 | $ | 62.35 | |||||||||
Share-Based Payments for Content Arrangements | ||||||||||||
We have 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. See Note 17: Commitments and Contingencies for more information on changes in commitments to issue restricted stock for content license agreements. | ||||||||||||
Information related to the shares of restricted stock granted as part of these agreements as of December 31, 2014, is as follows: | ||||||||||||
Whole shares | Granted | Vested | Unvested | Remaining | ||||||||
Vesting Period | ||||||||||||
Sony (1) | 218,348 | 218,348 | — | N/A | ||||||||
Paramount (2) | 300,000 | 255,000 | 45,000 | one day | ||||||||
Total | 518,348 | 473,348 | 45,000 | |||||||||
(1) | Includes 25,000 shares granted and fully vested in 2014 due to one-year contract extension executed in 2014. | |||||||||||
(2) | Vested on January 1, 2015. | |||||||||||
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, of which $1.4 million 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. We recognized $13.3 million and $8.7 million in expense associated with the issuance of rights to receive cash for the twelve months ended December 31, 2014 and 2013, respectively. The expected future recognition of expense associated with the rights to receive cash as of December 31, 2014 is as follows: | ||||||||||||
Dollars in thousands | Expected Expense | |||||||||||
2015 | $ | 4,588 | ||||||||||
2016 | 2,953 | |||||||||||
2017 | 513 | |||||||||||
Remaining total expected expense | $ | 8,054 | ||||||||||
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring | Note 10: 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 the Rubi, Crisp Market, and Star Studio concepts (see Note 12: Discontinued Operations for further information). 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 all discontinued ventures and the workforce reductions were completed in 2014 and we expect no further restructuring charges. | ||||||||||||||||
The detail of restructuring charges incurred by reportable segment (on an allocated basis) and expense type is as follows: | ||||||||||||||||
Dollars in thousands | Cumulative as of December 31, 2014 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||
Redbox | ||||||||||||||||
Severance | $ | 4,306 | $ | 535 | $ | 3,771 | ||||||||||
Coinstar | ||||||||||||||||
Severance | 747 | 23 | 724 | |||||||||||||
Discontinued Operations | ||||||||||||||||
Severance | 1,026 | 155 | 871 | |||||||||||||
Other | 1,873 | 435 | 1,438 | |||||||||||||
Total | $ | 7,952 | $ | 1,148 | $ | 6,804 | ||||||||||
A reconciliation of the beginning and ending liability balance by expense type is as follows: | ||||||||||||||||
Dollars in thousands | Severance | Other | ||||||||||||||
Beginning balance - January 1, 2013 | $ | — | $ | — | ||||||||||||
Costs charged to expense | 5,366 | 1,438 | ||||||||||||||
Costs paid or otherwise settled | (2,858 | ) | (20 | ) | ||||||||||||
Balance as of December 31, 2013 | 2,508 | 1,418 | ||||||||||||||
Costs charged to expense | 713 | 435 | ||||||||||||||
Costs paid or otherwise settled | (3,221 | ) | (1,853 | ) | ||||||||||||
Ending balance - December 31, 2014 | $ | — | $ | — | ||||||||||||
The line items in our Consolidated Statements of Comprehensive Income in which the expenses are recorded are as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Dollars in thousands | Severance | Other | Severance | Other | ||||||||||||
Direct operating | $ | 410 | $ | — | $ | — | $ | — | ||||||||
General and administrative | 148 | — | 4,495 | — | ||||||||||||
Loss from discontinued operations, net of tax | 155 | 435 | 871 | 1,438 | ||||||||||||
Total expense | $ | 713 | $ | 435 | $ | 5,366 | $ | 1,438 | ||||||||
Income_Taxes_Notes
Income Taxes (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes From Continuing Operations | Components of Income Taxes | |||||||||||
The components of income from continuing operations before income taxes were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
U.S. operations | $ | 188,473 | $ | 259,057 | $ | 263,730 | ||||||
Foreign operations | 2,368 | 3,341 | 2,784 | |||||||||
Total income from continuing operations before income taxes | $ | 190,841 | $ | 262,398 | $ | 266,514 | ||||||
Components of Income Tax Expense | ||||||||||||
The components of income tax expense from continuing operations were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
U.S. Federal | $ | 69,117 | $ | 38,876 | $ | — | ||||||
State and local | 12,294 | 10,104 | 4,142 | |||||||||
Foreign | 415 | (424 | ) | 7 | ||||||||
Total current | 81,826 | 48,556 | 4,149 | |||||||||
Deferred: | ||||||||||||
U.S. Federal | (16,232 | ) | (3,642 | ) | 87,715 | |||||||
State and local | 427 | (5,653 | ) | 8,002 | ||||||||
Foreign | 143 | 449 | 345 | |||||||||
Total deferred | (15,662 | ) | (8,846 | ) | 96,062 | |||||||
Total income tax expense | $ | 66,164 | $ | 39,710 | $ | 100,211 | ||||||
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: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S Federal tax expense at statutory rates | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 4.1 | 3.9 | 3.9 | |||||||||
Federal and state credits | (1.1 | ) | (0.9 | ) | (0.8 | ) | ||||||
Domestic production activities deduction | (3.6 | ) | (0.6 | ) | — | |||||||
Recognition of outside basis differences | (1.1 | ) | (15.4 | ) | — | |||||||
ecoATM option payments | 1.4 | 0.7 | — | |||||||||
Valuation allowance | — | 2.3 | — | |||||||||
Acquisition of ecoATM | — | (9.3 | ) | — | ||||||||
Other | — | (0.6 | ) | (0.5 | ) | |||||||
Effective tax rate | 34.7 | % | 15.1 | % | 37.6 | % | ||||||
Our effective tax rate for the year ended December 31, 2014 was lower than the U.S. Federal statutory rate of 35.0% due primarily to the Domestic Production Activities Deduction, which we are entitled to based on our domestic production activities and federal and state tax credits, partially offset by state income taxes. | ||||||||||||
Our effective tax rate for the year ended December 31, 2013 was lower than the U.S. Federal statutory rate of 35.0% due primarily to the following items: | ||||||||||||
• | 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 22.4 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, offset partially by the Domestic Production Activities Deduction. | ||||||||||||
Our effective tax rate for the year ended December 31, 2012 was higher than the U.S. Federal statutory rate of 35.0% due primarily to state income taxes. | ||||||||||||
We did not provide for U.S. income taxes on certain undistributed earnings of foreign operations that were considered permanently invested outside of the United States. 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, 2014, the cumulative amount of earnings upon which U.S. income taxes have not been provided was approximately $18.8 million. | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||
The aggregate changes in the balance of unrecognized tax benefits were as follows: | ||||||||||||
Dollars in thousands | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of the year | $ | 2,781 | $ | 2,383 | $ | 2,455 | ||||||
Additions based on tax positions related to the current year | 1,836 | 824 | — | |||||||||
Additions for tax positions related to prior years | 806 | 18 | 251 | |||||||||
Reductions for tax positions related to prior years | — | (257 | ) | (71 | ) | |||||||
Reductions from lapse of applicable statute of limitations | (784 | ) | (49 | ) | (252 | ) | ||||||
Settlements | — | (138 | ) | — | ||||||||
Balance, end of year | $ | 4,639 | $ | 2,781 | $ | 2,383 | ||||||
We recognize interest and penalties, if any, related to income tax matters in Income tax expense. As of December 31, 2014 we accrued interest of $0.1 million. It was not necessary to accrue interest in 2013 or 2012 or accrue for penalties in any period presented. | ||||||||||||
Tax Years Open for Examination | ||||||||||||
As of December 31, 2014 for our major tax jurisdictions, the years 2011 through 2013 were open for examination by U.S. Federal and most state tax authorities. Additionally, the years 1998 through 2010 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. | ||||||||||||
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, | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Income tax loss carryforwards | $ | 5,690 | $ | 7,347 | ||||||||
Capital loss carryforwards | 5,930 | 5,917 | ||||||||||
Credit carryforwards | 2,929 | 2,289 | ||||||||||
Accrued liabilities and allowances | 22,652 | 14,929 | ||||||||||
Stock-based compensation | 11,901 | 12,547 | ||||||||||
Intangible assets | 17,166 | 17,252 | ||||||||||
Investment basis | — | 3,968 | ||||||||||
Other | 3,776 | 2,148 | ||||||||||
Gross deferred tax assets | 70,044 | 66,397 | ||||||||||
Less: Valuation Allowance | (6,898 | ) | (6,898 | ) | ||||||||
Total deferred tax assets | 63,146 | 59,499 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (68,417 | ) | (93,407 | ) | ||||||||
Product costs | (43,140 | ) | (40,757 | ) | ||||||||
Convertible debt interest | — | (552 | ) | |||||||||
Total deferred tax liabilities | (111,557 | ) | (134,716 | ) | ||||||||
Net deferred tax liabilities | $ | (48,411 | ) | $ | (75,217 | ) | ||||||
Change in Valuation Allowance | ||||||||||||
Dollars in thousands | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Increase in valuation allowance | $ | — | $ | 6,898 | $ | — | ||||||
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 follows: | ||||||||||||
Dollars in thousands | December 31, 2014 | |||||||||||
Federal | State | Foreign | ||||||||||
Net operating loss carryforwards | $ | 257 | $ | 36,457 | $ | 16,448 | ||||||
Deferred tax assets related to net operating loss carryforwards | $ | 90 | $ | 1,286 | $ | 4,314 | ||||||
Years that net operating loss carryforwards will expire between | 2029 to 2034 | 2019 and 2034 | 2033 and 2035 | |||||||||
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 table shows our U.S. state tax credits and related expiration periods. Based upon our projections for future taxable income, we believe it is more likely than not that we will realize the benefits of these credits prior to their expiration. | ||||||||||||
Dollars in thousands | December 31, 2014 | |||||||||||
Amount | Expiration | |||||||||||
U.S state tax credits: | ||||||||||||
Illinois state tax credits | $ | 3,388 | 2016 to 2017 | |||||||||
California U.S. state tax credits | 1,118 | Do not expire | ||||||||||
Total U.S. state tax credits | $ | 4,506 | ||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 12: Discontinued Operations | |||||||||||
Summary Financial Information | ||||||||||||
On January 23, 2015, we made the decision to shut down our Redbox Canada operations as the business was not meeting the Company's performance expectations. On March 31, 2015, we completed the disposal of the Redbox Canada operations. We have reclassified the results of Redbox Canada to discontinued operations for all periods presented in our Consolidated Statements of Comprehensive Income. | ||||||||||||
In addition to Redbox Canada, during 2013, we discontinued certain new ventures. See below for additional information. | ||||||||||||
The following table sets forth the components of discontinued operations included in our Consolidated Statements of Comprehensive Income: | ||||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
Redbox Canada revenue | $ | 11,417 | $ | 6,816 | $ | 1,733 | ||||||
Certain new ventures revenue | 100 | 4,399 | 2,159 | |||||||||
Total revenue | $ | 11,517 | $ | 11,215 | $ | 3,892 | ||||||
Redbox Canada loss before income tax | $ | (23,707 | ) | $ | (19,830 | ) | $ | (8,121 | ) | |||
Certain new ventures loss before income tax | (1,259 | ) | (54,395 | ) | (16,647 | ) | ||||||
Total loss before income tax: | (24,966 | ) | (74,225 | ) | (24,768 | ) | ||||||
Redbox Canada income tax benefit | 6,416 | 5,233 | 2,270 | |||||||||
Certain new ventures income tax benefit | 491 | 21,096 | 6,425 | |||||||||
Total income tax benefit | 6,907 | 26,329 | 8,695 | |||||||||
Redbox Canada loss, net of tax | (17,291 | ) | (14,597 | ) | (5,851 | ) | ||||||
Certain new ventures loss, net of tax | (768 | ) | (33,299 | ) | (10,222 | ) | ||||||
Total loss from discontinued operations, net of tax | $ | (18,059 | ) | $ | (47,896 | ) | $ | (16,073 | ) | |||
Redbox Canada | ||||||||||||
The disposition and operating results of Redbox Canada are presented in discontinued operations in our Consolidated Statements of Comprehensive Income for all periods presented. The following table sets forth the components of discontinued operations included in our Consolidated Statements of Comprehensive Income: | ||||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
Major classes of line items constituting pretax loss of discontinued operations: | ||||||||||||
Revenue | $ | 11,417 | $ | 6,816 | $ | 1,733 | ||||||
Direct operating | 20,027 | 18,278 | 6,297 | |||||||||
Marketing | 2,947 | 2,175 | 1,822 | |||||||||
Research and development | — | 2 | — | |||||||||
General and administrative | 1,078 | 3,088 | 987 | |||||||||
Depreciation and other | 7,354 | 2,760 | 694 | |||||||||
Amortization of intangible assets | 38 | 26 | 21 | |||||||||
Other expense, net | (3,680 | ) | (317 | ) | (33 | ) | ||||||
Pretax loss of discontinued operations related to major classes of pretax loss | (23,707 | ) | (19,830 | ) | (8,121 | ) | ||||||
Income tax benefit | 6,416 | 5,233 | 2,270 | |||||||||
Total loss on discontinued operations | $ | (17,291 | ) | $ | (14,597 | ) | $ | (5,851 | ) | |||
We estimate the cash expenditures after March 31, 2015 related to the disposition of Redbox Canada to be approximately $1.0 million. Significant operating and investing cash flows of Redbox Canada were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
Net loss on discontinued operations | $ | (17,291 | ) | $ | (14,597 | ) | $ | (5,851 | ) | |||
Adjustments to reconcile net loss to net cash flows from operating activities: | ||||||||||||
Depreciation and amortization | 7,392 | 2,786 | 715 | |||||||||
Content library | (787 | ) | (410 | ) | (659 | ) | ||||||
Prepaid and other current assets | (293 | ) | (516 | ) | (3,092 | ) | ||||||
Accounts payable | 627 | 644 | (14 | ) | ||||||||
Accrued payables to retailers | (175 | ) | 247 | 2,023 | ||||||||
Other accrued liabilities | (122 | ) | 506 | 807 | ||||||||
Net cash flows from operating activities | $ | (10,649 | ) | $ | (11,340 | ) | $ | (6,071 | ) | |||
Investing activities: | ||||||||||||
Purchase of property, plant and equipment | (5,494 | ) | (9,330 | ) | (12,098 | ) | ||||||
Total cash flows used in investing activities | $ | (5,494 | ) | $ | (9,330 | ) | $ | (12,098 | ) | |||
Discontinuation of Certain New Ventures | ||||||||||||
During 2013, we discontinued four new venture concepts; Rubi, Crisp Market, Orango, and Star Studio. As a result, 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 recorded in 2013 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 | ||||||||||
We completed the wind-down process of all discontinued ventures in 2014. The results of the discontinued ventures and associated impairment and restructuring charges, net of tax, are recorded within loss from discontinued operations, net of tax in our Consolidated Statements of Comprehensive Income (see Note 10: Restructuring). 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. The continuing cash flows from these operations after discontinuation are insignificant and are not segregated from cash flows from continuing operations in all periods presented in our Consolidated Statements of Cash Flows. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | Note 13: 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: | |||||||||
Year Ended December 31, | |||||||||
In thousands | 2014 | 2013 | 2012 | ||||||
Weighted average shares used for basic EPS | 20,192 | 27,216 | 30,305 | ||||||
Dilutive effect of stock options and other share-based awards | 277 | 447 | 598 | ||||||
Dilutive effect of convertible debt | 230 | 718 | 1,271 | ||||||
Weighted average shares used for diluted EPS | 20,699 | 28,381 | 32,174 | ||||||
Stock options and share-based awards not included in diluted EPS calculation because their effect would be antidilutive | 12 | 14 | 139 | ||||||
Business_Segments_and_Enterpri
Business Segments and Enterprise-Wide Information | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Business Segments and Enterprise-Wide Information | Note 14: 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. Share-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. | ||||||||||||||||||||||||
Changes in our Organizational Structure | ||||||||||||||||||||||||
During the first quarter of 2015, we added ecoATM, our electronic device recycling business, as a separate reportable segment. Previously, the results of ecoATM along with those of other self-service concepts were included in our former New Ventures segment. The combined results of the other self-service concepts, which include product sampling kiosk concept SAMPLEit, are now included in the All Other category in the reconciliation below as they do not meet quantitative thresholds to be reported as a separate segment. All goodwill previously allocated to the New Ventures segment has been allocated to the ecoATM segment. | ||||||||||||||||||||||||
Comparability of Segment Results | ||||||||||||||||||||||||
We have recast prior period results for the following: | ||||||||||||||||||||||||
• | Discontinued operations, consisting of our Redbox operations in Canada which we shut down during the first quarter of 2015. See Note 12: Discontinued Operations for further information; and | |||||||||||||||||||||||
• | The addition of our ecoATM segment and an All Other category, which we added during the first quarter of 2015. | |||||||||||||||||||||||
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 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 ecoATM segment. | ||||||||||||||||||||||||
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 our former New Ventures segment to Loss from discontinued operations, net of tax in our Consolidated Statements of Comprehensive Income for all periods presented. See Note 12: Discontinued Operations 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 ecoATM segments, Corporate Unallocated expenses and All Other. All Other includes the results of other self-service concepts, which we regularly assess to determine whether continued funding or other alternatives are appropriate. | ||||||||||||||||||||||||
Dollars in thousands | ||||||||||||||||||||||||
Year Ended December 31, 2014 | Redbox | Coinstar | ecoATM | All Other | Corporate Unallocated | Total | ||||||||||||||||||
Revenue | $ | 1,881,718 | $ | 315,628 | $ | 94,187 | $ | 53 | $ | — | $ | 2,291,586 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Direct operating | 1,318,919 | 161,214 | 92,182 | 2,821 | 6,585 | 1,581,721 | ||||||||||||||||||
Marketing | 20,969 | 6,346 | 3,513 | 1,272 | 3,193 | 35,293 | ||||||||||||||||||
Research and development | 120 | 531 | 5,691 | 2,854 | 3,851 | 13,047 | ||||||||||||||||||
General and administrative | 135,678 | 27,012 | 12,773 | 3,522 | 11,658 | 190,643 | ||||||||||||||||||
Segment operating income (loss) | 406,032 | 120,525 | (19,972 | ) | (10,416 | ) | (25,287 | ) | 470,882 | |||||||||||||||
Less: depreciation and amortization | (149,236 | ) | (35,471 | ) | (17,031 | ) | (740 | ) | — | (202,478 | ) | |||||||||||||
Operating income (loss) | 256,796 | 85,054 | (37,003 | ) | (11,156 | ) | (25,287 | ) | 268,404 | |||||||||||||||
Loss from equity method investments, net | — | — | — | — | (28,734 | ) | (28,734 | ) | ||||||||||||||||
Interest expense, net | — | — | — | — | (47,644 | ) | (47,644 | ) | ||||||||||||||||
Other, net | — | — | — | — | (1,185 | ) | (1,185 | ) | ||||||||||||||||
Income (loss) before income taxes | $ | 256,796 | $ | 85,054 | $ | (37,003 | ) | $ | (11,156 | ) | $ | (102,850 | ) | $ | 190,841 | |||||||||
Dollars in thousands | ||||||||||||||||||||||||
Year Ended December 31, 2013 | Redbox | Coinstar | ecoATM | All Other | Corporate Unallocated | Total | ||||||||||||||||||
Revenue | $ | 1,967,715 | $ | 300,218 | $ | 31,824 | $ | 28 | $ | — | $ | 2,299,785 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Direct operating | 1,365,368 | 158,562 | 27,271 | 2,162 | 3,636 | 1,556,999 | ||||||||||||||||||
Marketing | 20,835 | 6,244 | 938 | 651 | 1,559 | 30,227 | ||||||||||||||||||
Research and development | 76 | 6,962 | 2,772 | 1,897 | 1,375 | 13,082 | ||||||||||||||||||
General and administrative | 164,634 | 25,944 | 7,868 | 7,683 | 14,164 | 220,293 | ||||||||||||||||||
Segment operating income (loss) | 416,802 | 102,506 | (7,025 | ) | (12,365 | ) | (20,734 | ) | 479,184 | |||||||||||||||
Less: depreciation and amortization | (159,851 | ) | (33,921 | ) | (6,077 | ) | (459 | ) | — | (200,308 | ) | |||||||||||||
Operating income (loss) | 256,951 | 68,585 | (13,102 | ) | (12,824 | ) | (20,734 | ) | 278,876 | |||||||||||||||
Income from equity method investments, net | — | — | — | — | 19,928 | 19,928 | ||||||||||||||||||
Interest expense, net | — | — | — | — | (32,807 | ) | (32,807 | ) | ||||||||||||||||
Other, net | — | — | — | — | (3,599 | ) | (3,599 | ) | ||||||||||||||||
Income (loss) before income taxes | $ | 256,951 | $ | 68,585 | $ | (13,102 | ) | $ | (12,824 | ) | $ | (37,212 | ) | $ | 262,398 | |||||||||
Dollars in thousands | ||||||||||||||||||||||||
Year Ended December 31, 2012 | Redbox | Coinstar | ecoATM | All Other | Corporate Unallocated | Total | ||||||||||||||||||
Revenue | $ | 1,907,040 | $ | 290,761 | $ | — | $ | 350 | $ | — | $ | 2,198,151 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Direct operating | 1,334,602 | 155,740 | — | 1,317 | 863 | 1,492,522 | ||||||||||||||||||
Marketing | 18,675 | 4,938 | — | 478 | 66 | 24,157 | ||||||||||||||||||
Research and development | 739 | 4,455 | — | 1,229 | 334 | 6,757 | ||||||||||||||||||
General and administrative | 158,898 | 26,367 | — | 6,283 | 11,984 | 203,532 | ||||||||||||||||||
Segment operating income (loss) | 394,126 | 99,261 | — | (8,957 | ) | (13,247 | ) | 471,183 | ||||||||||||||||
Less: depreciation and amortization | (147,353 | ) | (36,108 | ) | — | (229 | ) | — | (183,690 | ) | ||||||||||||||
Operating income (loss) | 246,773 | 63,153 | — | (9,186 | ) | (13,247 | ) | 287,493 | ||||||||||||||||
Loss from equity method investments, net | — | — | — | — | (5,184 | ) | (5,184 | ) | ||||||||||||||||
Interest expense, net | — | — | — | — | (15,640 | ) | (15,640 | ) | ||||||||||||||||
Other, net | — | — | — | — | (155 | ) | (155 | ) | ||||||||||||||||
Income (loss) before income taxes | $ | 246,773 | $ | 63,153 | $ | — | $ | (9,186 | ) | $ | (34,226 | ) | $ | 266,514 | ||||||||||
Significant Retailer Relationships | ||||||||||||||||||||||||
Our Redbox and Coinstar kiosks are primarily located within retailers. The following retailers accounted for 10% or more of our consolidated revenue: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Wal-Mart Stores Inc. | 15.5 | % | 15.2 | % | 16 | % | ||||||||||||||||||
Walgreen Co. | 13.8 | % | 14.7 | % | 16.1 | % | ||||||||||||||||||
The Kroger Company | 9.8 | % | 10 | % | 10.7 | % | ||||||||||||||||||
Revenue and Long-lived Assets by Geographic Location | ||||||||||||||||||||||||
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 | 2014 | 2013 | 2012 | |||||||||||||||||||||
U.S. | $ | 2,242,753 | $ | 2,254,790 | $ | 2,154,943 | ||||||||||||||||||
All other | 48,833 | 44,995 | 43,208 | |||||||||||||||||||||
Total revenue | $ | 2,291,586 | $ | 2,299,785 | $ | 2,198,151 | ||||||||||||||||||
Long-lived assets by geographic location were as follows: | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||||||||||||||
U.S. | $ | 1,028,516 | $ | 1,141,299 | $ | 975,334 | ||||||||||||||||||
All other | 43,559 | 43,774 | 30,884 | |||||||||||||||||||||
Total long-lived assets | $ | 1,072,075 | $ | 1,185,073 | $ | 1,006,218 | ||||||||||||||||||
Retirement_Plans_Notes
Retirement Plans (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Note 15: 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 $4.3 million, $4.9 million and $4.0 million in 2014, 2013 and 2012, respectively. |
Fair_Value
Fair Value | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value | Note 16: 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, 2014 | Level 1 | Level 2 | Level 3 | |||||||||
Money market demand accounts and investment grade fixed income securities | $ | 916 | $ | — | $ | — | ||||||
Fair Value at December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||
Money market demand accounts and investment grade fixed income securities | $ | 65,800 | $ | — | $ | — | ||||||
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 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. | ||||||||||||
Trademark 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. | ||||||||||||
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 evaluated 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. 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 loans approximates their fair value and falls under Level 2 of the fair value hierarchy. | ||||||||||||
We estimated the fair value of our convertible debt outstanding using a market rate of approximately 6.0% for similar high-yield debt at December 31, 2013. The estimated fair value of our convertible debt was approximately $50.5 million at December 31, 2013, 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 due 2019 and 2021 outstanding using market rates of approximately 6.0% and 5.875%, respectively, for similar high-yield debt at December 31, 2014. We estimated the fair value of our senior unsecured notes due 2019 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 due 2019 and 2021 was approximately $350.0 million and $300.0 million, respectively, at December 31, 2014. The estimated fair value of our senior unsecured notes due 2019 was approximately $350.0 million at December 31, 2013. These estimated fair values for our senior unsecured notes due 2019 and 2021 were determined based on their stated terms, maturing on March 15, 2019, and June 15, 2021, respectively, and annual interest rates of 6.0% and 5.875%. The fair value estimate of our senior unsecured notes falls under Level 3 of the fair value hierarchy. We have reported the carrying value, face value less the unamortized debt discount, of our senior unsecured notes, issued at par, in our Consolidated Balance Sheets. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||
Commitments and Contingencies | Note 17: 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. | ||||||||||||||||||||
During 2014 we consolidated our ecoATM business offices and facilities into one new location in San Diego, California. The lease for the space we vacated during 2014 will expire in 2015. The new location occupies 53,512 square feet and consists of facilities supporting administration, marketing, engineering, customer service and inventory processing. The lease for this space will expire on October 31, 2024. | ||||||||||||||||||||
Rent expense under our operating lease agreements was $16.8 million, $12.3 million and $9.0 million during 2014, 2013 and 2012, 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, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Gross property and equipment | $ | 41,336 | $ | 48,992 | ||||||||||||||||
Accumulated depreciation | (26,831 | ) | (28,489 | ) | ||||||||||||||||
Net property and equipment | $ | 14,505 | $ | 20,503 | ||||||||||||||||
As of December 31, 2014, our future minimum lease payments are as follows: | ||||||||||||||||||||
Dollars in thousands | Capital Leases | Operating Leases(1) | ||||||||||||||||||
2015 | $ | 11,475 | $ | 18,527 | ||||||||||||||||
2016 | 3,110 | 13,617 | ||||||||||||||||||
2017 | 810 | 11,190 | ||||||||||||||||||
2018 | 311 | 8,808 | ||||||||||||||||||
2019 | 191 | 12,685 | ||||||||||||||||||
Thereafter | 102 | 8,172 | ||||||||||||||||||
Total minimum lease commitments | 15,999 | $ | 72,999 | |||||||||||||||||
Less: amounts representing interest | (608 | ) | ||||||||||||||||||
Present value of capital lease obligations | 15,391 | |||||||||||||||||||
Less: Current portion of capital lease obligations | (11,026 | ) | ||||||||||||||||||
Long-term portion of capital lease obligations | $ | 4,365 | ||||||||||||||||||
(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 $62.0 million as of December 31, 2014. | ||||||||||||||||||||
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. We made purchases in 2014 and 2013 that reduced this commitment by $2.1 million and $7.1 million, respectively. As of December 31, 2014, our remaining commitment is $15.8 million under this arrangement. | ||||||||||||||||||||
Content License Agreements | ||||||||||||||||||||
On November 20, 2014 Redbox announced a contract extension with Paramount Home Entertainment under the existing terms. The one-year extension maintains day-and-date access for our customers to Paramount titles through the end of 2015 and requires us to issue 50,000 shares of additional restricted stock to Paramount during the first quarter of 2015 which will vest immediately. See Note 9: Share-Based Payments for more information about our share-based payments for content arrangements. | ||||||||||||||||||||
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, 2014 is presented in the following table: | ||||||||||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||||||||||
Total | 2015 | 2016 | ||||||||||||||||||
Lionsgate | $ | 128,479 | $ | 71,472 | $ | 57,007 | ||||||||||||||
Sony | 106,356 | 106,356 | — | |||||||||||||||||
Universal | 99,305 | 96,923 | 2,382 | |||||||||||||||||
Paramount | 98,773 | 98,773 | — | |||||||||||||||||
Fox | 39,600 | 39,600 | — | |||||||||||||||||
Warner | 3,559 | 3,559 | — | |||||||||||||||||
Total estimated commitments | $ | 476,072 | $ | 416,683 | $ | 59,389 | ||||||||||||||
General terms of our content license agreements with studios are as follows as of December 31, 2014: | ||||||||||||||||||||
Studio | End Date | Release Date | ||||||||||||||||||
Lionsgate | 9/30/16 | (1) | Day & Date | (2) | ||||||||||||||||
Sony | 9/30/15 | (3) | Day & Date | (2) | ||||||||||||||||
Universal | 12/31/15 | Delay | (4) | |||||||||||||||||
Paramount | 12/31/15 | (3) | Day & Date | (2) | ||||||||||||||||
Fox | 4/21/15 | Delay | (4) | |||||||||||||||||
Warner | 12/31/14 | Delay | (4) | |||||||||||||||||
(1) | Agreement extends the term of the arrangement automatically for an additional year under certain conditions. | |||||||||||||||||||
(2) | Content licensed under the agreement is available for rental on the same day and date as the retail release. | |||||||||||||||||||
(3) | Agreement includes, at the studio’s sole discretion, the option of a one-year extension following the end date. | |||||||||||||||||||
(4) | Content licensed under the agreement is available for rental after a certain number of days following the retail release. | |||||||||||||||||||
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 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
Redbox | $ | 6,627 | $ | 3,195 | $ | 2,616 | $ | 653 | $ | 163 | ||||||||||
Letters of Credit | ||||||||||||||||||||
As of December 31, 2014, we had six irrevocable standby letters of credit that totaled $6.4 million. These standby letters of credit, which expire at various times through September 2015, are used to collateralize certain obligations to third parties. As of December 31, 2014, 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. Redbox has moved to dismiss all remaining claims on mootness grounds, and the Court granted Redbox’s motion on December 11, 2014. The plaintiffs appealed on January 7, 2015. 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. On October 23, 2014, the U.S. Court of Appeals for the Seventh Circuit affirmed the district court’s judgment in Redbox’s favor. | ||||||||||||||||||||
Other Contingencies | ||||||||||||||||||||
During the year ended December 31, 2013, we resolved a previously disclosed loss contingency related to a supply agreement and recorded a benefit of $11.4 million in the direct operating line item in our Consolidated Statements of Comprehensive Income. |
Guarantor_Subsidiaries
Guarantor Subsidiaries | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Guarantor Subsidiaries Disclosure [Abstract] | ||||||||||||||||||||
Guarantor Subsidiaries | Note 18: Guarantor Subsidiaries | |||||||||||||||||||
Certain of our wholly-owned subsidiaries have, jointly and severally, fully and unconditionally guaranteed the Senior Notes due 2019 and 2021. 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, 2014 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 180,889 | $ | 17,939 | $ | 43,868 | $ | — | $ | 242,696 | ||||||||||
Accounts receivable, net of allowances | 3,203 | 43,874 | 1,513 | — | 48,590 | |||||||||||||||
Content library | — | 176,490 | 3,631 | — | 180,121 | |||||||||||||||
Prepaid expenses and other current assets | 21,442 | 23,923 | 1,030 | (6,558 | ) | 39,837 | ||||||||||||||
Intercompany receivables | 40,762 | 467,181 | — | (507,943 | ) | — | ||||||||||||||
Total current assets | 246,296 | 729,407 | 50,042 | (514,501 | ) | 511,244 | ||||||||||||||
Property and equipment, net | 133,923 | 263,412 | 31,133 | — | 428,468 | |||||||||||||||
Deferred income taxes | — | — | 11,378 | — | 11,378 | |||||||||||||||
Goodwill and other intangible assets, net | 249,717 | 374,281 | — | — | 623,998 | |||||||||||||||
Other long-term assets | 6,665 | 1,231 | 335 | — | 8,231 | |||||||||||||||
Investment in related parties | 917,234 | (5,114 | ) | — | (912,120 | ) | — | |||||||||||||
Total assets | $ | 1,553,835 | $ | 1,363,217 | $ | 92,888 | $ | (1,426,621 | ) | $ | 1,583,319 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 12,899 | $ | 153,260 | $ | 2,474 | $ | — | $ | 168,633 | ||||||||||
Accrued payable to retailers | 69,189 | 42,977 | 14,124 | — | 126,290 | |||||||||||||||
Other accrued liabilities | 59,770 | 74,536 | 2,820 | — | 137,126 | |||||||||||||||
Current portion of long-term debt and other long-term liabilities | 20,020 | — | 396 | — | 20,416 | |||||||||||||||
Deferred income taxes | — | 27,961 | 29 | (6,558 | ) | 21,432 | ||||||||||||||
Intercompany payables | 309,932 | 121,015 | 76,996 | (507,943 | ) | — | ||||||||||||||
Total current liabilities | 471,810 | 419,749 | 96,839 | (514,501 | ) | 473,897 | ||||||||||||||
Long-term debt and other long-term liabilities | 949,588 | 22,946 | 1,135 | — | 973,669 | |||||||||||||||
Deferred income taxes | 35,058 | 3,288 | 29 | — | 38,375 | |||||||||||||||
Total liabilities | 1,456,456 | 445,983 | 98,003 | (514,501 | ) | 1,485,941 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 588,105 | 225,729 | 12,393 | (352,635 | ) | 473,592 | ||||||||||||||
Treasury stock | (996,293 | ) | — | — | — | (996,293 | ) | |||||||||||||
Retained earnings | 506,360 | 691,505 | (17,991 | ) | (559,485 | ) | 620,389 | |||||||||||||
Accumulated other comprehensive income (loss) | (793 | ) | — | 483 | — | (310 | ) | |||||||||||||
Total stockholders’ equity | 97,379 | 917,234 | (5,115 | ) | (912,120 | ) | 97,378 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,553,835 | $ | 1,363,217 | $ | 92,888 | $ | (1,426,621 | ) | $ | 1,583,319 | |||||||||
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 | |||||||||||||||
Prepaid expenses and other current assets | 67,664 | 28,234 | 960 | (12,149 | ) | 84,709 | ||||||||||||||
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, net | 251,150 | 387,540 | — | — | 638,690 | |||||||||||||||
Other long-term assets | 7,156 | 11,499 | 420 | — | 19,075 | |||||||||||||||
Investment in related parties | 815,243 | 4,825 | — | (820,068 | ) | — | ||||||||||||||
Total assets | $ | 1,802,376 | $ | 1,359,818 | $ | 101,986 | $ | (1,372,797 | ) | $ | 1,891,383 | |||||||||
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 portion of long-term debt and other long-term liabilities | 103,519 | 3 | 367 | — | 103,889 | |||||||||||||||
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 | 661,627 | 18,748 | 1,028 | — | 681,403 | |||||||||||||||
Deferred income taxes | 45,307 | 13,190 | — | 31 | 58,528 | |||||||||||||||
Total liabilities | 1,273,933 | 557,234 | 92,811 | (552,730 | ) | 1,371,248 | ||||||||||||||
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 income (loss) | (1,161 | ) | — | 394 | — | (767 | ) | |||||||||||||
Total stockholders’ equity | 526,997 | 802,584 | 9,175 | (820,067 | ) | 518,689 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,802,376 | $ | 1,359,818 | $ | 101,986 | $ | (1,372,797 | ) | $ | 1,891,383 | |||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Revenue | $ | 266,848 | $ | 1,975,905 | $ | 48,833 | $ | — | $ | 2,291,586 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 142,472 | 1,415,542 | 23,707 | — | 1,581,721 | |||||||||||||||
Marketing | 7,227 | 27,631 | 435 | — | 35,293 | |||||||||||||||
Research and development | 3,456 | 9,591 | — | — | 13,047 | |||||||||||||||
General and administrative | 39,435 | 150,335 | 873 | — | 190,643 | |||||||||||||||
Depreciation and other | 35,155 | 148,217 | 4,452 | — | 187,824 | |||||||||||||||
Amortization of intangible assets | 1,433 | 13,221 | — | — | 14,654 | |||||||||||||||
Total expenses | 229,178 | 1,764,537 | 29,467 | — | 2,023,182 | |||||||||||||||
Operating income | 37,670 | 211,368 | 19,366 | — | 268,404 | |||||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Loss from equity method investments, net | (530 | ) | (28,204 | ) | — | — | (28,734 | ) | ||||||||||||
Interest income (expense), net | (48,007 | ) | 572 | (209 | ) | — | (47,644 | ) | ||||||||||||
Other, net | 14,077 | 1,334 | (16,596 | ) | — | (1,185 | ) | |||||||||||||
Total other income (expense), net | (34,460 | ) | (26,298 | ) | (16,805 | ) | — | (77,563 | ) | |||||||||||
Income from continuing operations before income taxes | 3,210 | 185,070 | 2,561 | — | 190,841 | |||||||||||||||
Income tax benefit (expense) | (618 | ) | (64,989 | ) | (557 | ) | — | (66,164 | ) | |||||||||||
Income from continuing operations | 2,592 | 120,081 | 2,004 | — | 124,677 | |||||||||||||||
Loss from discontinued operations, net of tax | (803 | ) | (874 | ) | (16,382 | ) | — | (18,059 | ) | |||||||||||
Equity in income (loss) of subsidiaries | 104,829 | (14,378 | ) | — | (90,451 | ) | — | |||||||||||||
Net income (loss) | 106,618 | 104,829 | (14,378 | ) | (90,451 | ) | 106,618 | |||||||||||||
Foreign currency translation adjustment(1) | 368 | — | 89 | — | 457 | |||||||||||||||
Comprehensive income (loss) | $ | 106,986 | $ | 104,829 | $ | (14,289 | ) | $ | (90,451 | ) | $ | 107,075 | ||||||||
-1 | Foreign currency translation adjustment had no tax effect in 2014. | |||||||||||||||||||
CONSOLIDATING 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 | $ | 44,995 | $ | — | $ | 2,299,785 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 138,859 | 1,394,932 | 36,155 | (12,947 | ) | 1,556,999 | ||||||||||||||
Marketing | 6,540 | 23,269 | 418 | — | 30,227 | |||||||||||||||
Research and development | 8,973 | 4,111 | (2 | ) | — | 13,082 | ||||||||||||||
General and administrative | 33,747 | 172,870 | 721 | 12,955 | 220,293 | |||||||||||||||
Depreciation and other | 28,101 | 157,292 | 4,008 | — | 189,401 | |||||||||||||||
Amortization of intangible assets | 2,245 | 8,662 | — | — | 10,907 | |||||||||||||||
Total expenses | 218,465 | 1,761,136 | 41,300 | 8 | 2,020,909 | |||||||||||||||
Operating income (loss) | 36,786 | 238,403 | 3,695 | (8 | ) | 278,876 | ||||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Income (loss) from equity method investments, net | 65,063 | (45,135 | ) | — | — | 19,928 | ||||||||||||||
Interest income (expense), net | (32,930 | ) | 257 | (134 | ) | — | (32,807 | ) | ||||||||||||
Other, net | (3,868 | ) | 479 | (218 | ) | 8 | (3,599 | ) | ||||||||||||
Total other income (expense), net | 28,265 | (44,399 | ) | (352 | ) | 8 | (16,478 | ) | ||||||||||||
Income from continuing operations before income taxes | 65,051 | 194,004 | 3,343 | — | 262,398 | |||||||||||||||
Income tax benefit (expense) | 30,893 | (70,577 | ) | (26 | ) | — | (39,710 | ) | ||||||||||||
Income from continuing operations | 95,944 | 123,427 | 3,317 | — | 222,688 | |||||||||||||||
Loss from discontinued operations, net of tax | (30,834 | ) | (2,708 | ) | (14,354 | ) | — | (47,896 | ) | |||||||||||
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. | |||||||||||||||||||
CONSOLIDATING 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 | $ | 43,208 | $ | — | $ | 2,198,151 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 137,092 | 1,334,227 | 39,541 | (18,338 | ) | 1,492,522 | ||||||||||||||
Marketing | 5,020 | 18,676 | 461 | — | 24,157 | |||||||||||||||
Research and development | 6,018 | 739 | — | — | 6,757 | |||||||||||||||
General and administrative | 23,442 | 161,264 | 494 | 18,332 | 203,532 | |||||||||||||||
Depreciation and other | 30,716 | 144,341 | 3,276 | — | 178,333 | |||||||||||||||
Amortization of intangible assets | 2,346 | 3,011 | — | — | 5,357 | |||||||||||||||
Total expenses | 204,634 | 1,662,258 | 43,772 | (6 | ) | 1,910,658 | ||||||||||||||
Operating income (loss) | 43,272 | 244,779 | (564 | ) | 6 | 287,493 | ||||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Loss from equity method investments, net | (2,179 | ) | (3,005 | ) | — | — | (5,184 | ) | ||||||||||||
Interest income (expense), net | (18,161 | ) | 2,554 | (33 | ) | — | (15,640 | ) | ||||||||||||
Other, net | 98 | (264 | ) | 17 | (6 | ) | (155 | ) | ||||||||||||
Total other income (expense), net | (20,242 | ) | (715 | ) | (16 | ) | (6 | ) | (20,979 | ) | ||||||||||
Income (loss) from continuing operations before income taxes | 23,030 | 244,064 | (580 | ) | — | 266,514 | ||||||||||||||
Income tax expense | (5,518 | ) | (94,138 | ) | (555 | ) | — | (100,211 | ) | |||||||||||
Income (loss) from continuing operations | 17,512 | 149,926 | (1,135 | ) | — | 166,303 | ||||||||||||||
Loss from discontinued operations, net of tax | (8,609 | ) | (2,244 | ) | (5,220 | ) | — | (16,073 | ) | |||||||||||
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. | |||||||||||||||||||
CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income (loss) | $ | 106,618 | $ | 104,829 | $ | (14,378 | ) | $ | (90,451 | ) | $ | 106,618 | ||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||||||||||||||||
Depreciation and other | 35,139 | 150,904 | 9,119 | — | 195,162 | |||||||||||||||
Amortization of intangible assets | 1,433 | 13,259 | — | — | 14,692 | |||||||||||||||
Share-based payments expense | 9,693 | 3,691 | — | — | 13,384 | |||||||||||||||
Windfall excess tax benefits related to share-based payments | (1,964 | ) | — | — | — | (1,964 | ) | |||||||||||||
Deferred income taxes | 304 | (17,232 | ) | (5,683 | ) | — | (22,611 | ) | ||||||||||||
Loss from equity method investments, net | 530 | 28,204 | — | — | 28,734 | |||||||||||||||
Amortization of deferred financing fees and debt discount | 4,116 | — | — | — | 4,116 | |||||||||||||||
Loss from early extinguishment of debt | 2,018 | — | — | — | 2,018 | |||||||||||||||
Other | (1,250 | ) | (548 | ) | 48 | — | (1,750 | ) | ||||||||||||
Equity in (income) losses of subsidiaries | (104,829 | ) | 14,378 | — | 90,451 | — | ||||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | (1,130 | ) | 8,787 | 1,014 | — | 8,671 | ||||||||||||||
Content library | 36 | 20,206 | (495 | ) | — | 19,747 | ||||||||||||||
Prepaid expenses and other current assets | 40,826 | 3,753 | (297 | ) | — | 44,282 | ||||||||||||||
Other assets | 75 | 1,558 | 69 | — | 1,702 | |||||||||||||||
Accounts payable | (3,017 | ) | (65,737 | ) | (158 | ) | — | (68,912 | ) | |||||||||||
Accrued payable to retailers | (1,896 | ) | (5,149 | ) | 198 | — | (6,847 | ) | ||||||||||||
Other accrued liabilities | (840 | ) | 1,988 | 161 | — | 1,309 | ||||||||||||||
Net cash flows from (used in) operating activities(1) | 85,862 | 262,891 | (10,402 | ) | — | 338,351 | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (33,602 | ) | (57,909 | ) | (6,413 | ) | — | (97,924 | ) | |||||||||||
Proceeds from sale of property and equipment | 750 | 1,227 | — | — | 1,977 | |||||||||||||||
Cash paid for equity investments | — | (24,500 | ) | — | — | (24,500 | ) | |||||||||||||
Extinguishment payment received from equity investment | — | 5,000 | — | — | 5,000 | |||||||||||||||
Investments in and advances to affiliates | 166,145 | (178,406 | ) | 12,261 | — | — | ||||||||||||||
Net cash flows from (used in) investing activities(1) | 133,293 | (254,588 | ) | 5,848 | — | (115,447 | ) | |||||||||||||
Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of senior unsecured notes | 295,500 | — | — | — | 295,500 | |||||||||||||||
Proceeds from new borrowing of Credit Facility | 642,000 | — | — | — | 642,000 | |||||||||||||||
Principal payments on Credit Facility | (680,125 | ) | — | — | — | (680,125 | ) | |||||||||||||
Financing costs associated with Credit Facility and senior unsecured notes | (2,911 | ) | — | — | — | (2,911 | ) | |||||||||||||
Settlement and conversion of convertible debt | (51,149 | ) | — | — | — | (51,149 | ) | |||||||||||||
Repurchases of common stock | (545,091 | ) | — | — | — | (545,091 | ) | |||||||||||||
Principal payments on capital lease obligations and other debt | (13,552 | ) | (3 | ) | (441 | ) | — | (13,996 | ) | |||||||||||
Windfall excess tax benefits related to share-based payments | 1,964 | — | — | — | 1,964 | |||||||||||||||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | (520 | ) | — | — | — | (520 | ) | |||||||||||||
Net cash flows from (used in) financing activities(1) | (353,884 | ) | (3 | ) | (441 | ) | — | (354,328 | ) | |||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | ||||||||||||||||
Effect of exchange rate changes on cash | 368 | — | 2,315 | — | 2,683 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | (134,361 | ) | 8,300 | (2,680 | ) | — | (128,741 | ) | ||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Beginning of period | 315,250 | 9,639 | 46,548 | — | 371,437 | |||||||||||||||
End of period | $ | 180,889 | $ | 17,939 | $ | 43,868 | $ | — | $ | 242,696 | ||||||||||
-1 | During the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, 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. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. | |||||||||||||||||||
CONSOLIDATING 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 (loss) | $ | 174,792 | $ | 109,682 | $ | (11,037 | ) | $ | (98,645 | ) | $ | 174,792 | ||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||||||||||||||||
Depreciation and other | 29,640 | 158,801 | 5,259 | — | 193,700 | |||||||||||||||
Amortization of intangible assets | 2,245 | 8,688 | — | — | 10,933 | |||||||||||||||
Share-based payments expense | 9,903 | 6,928 | — | — | 16,831 | |||||||||||||||
Windfall excess tax benefits related to share-based payments | (3,698 | ) | — | — | — | (3,698 | ) | |||||||||||||
Deferred income taxes | 9,228 | (15,727 | ) | (4,434 | ) | — | (10,933 | ) | ||||||||||||
Impairment Expense | 32,444 | 288 | — | — | 32,732 | |||||||||||||||
Loss (income) from equity method investments, net | (65,063 | ) | 45,135 | — | — | (19,928 | ) | |||||||||||||
Amortization of deferred financing fees and debt discount | 6,394 | — | — | — | 6,394 | |||||||||||||||
Loss from early extinguishment of 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 | (408 | ) | 226 | 354 | 1,491 | ||||||||||||||
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 (used in) operating activities(1) | 57,753 | 281,757 | (12,084 | ) | 408 | 327,834 | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (58,763 | ) | (88,431 | ) | (14,218 | ) | — | (161,412 | ) | |||||||||||
Proceeds from sale of property and equipment | 12,147 | 1,189 | 8 | — | 13,344 | |||||||||||||||
Acquisition of ecoATM, net of cash acquired | (244,036 | ) | — | — | — | (244,036 | ) | |||||||||||||
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 (used in) investing activities(1) | (141,883 | ) | (271,901 | ) | 16,647 | (54 | ) | (397,191 | ) | |||||||||||
Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of senior unsecured notes | 343,769 | — | — | — | 343,769 | |||||||||||||||
Proceeds from new borrowing on 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 | ) | |||||||||||||
Conversion 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 | ) | |||||||||||
Windfall excess tax benefits related to share-based payments | 3,698 | — | — | — | 3,698 | |||||||||||||||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | 8,460 | — | — | — | 8,460 | |||||||||||||||
Net cash flows from (used in) financing activities(1) | 156,996 | (217 | ) | (417 | ) | — | 156,362 | |||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | ||||||||||||||||
Effect of exchange rate changes on cash | (105 | ) | — | 1,643 | — | 1,538 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 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 the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, 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. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. | |||||||||||||||||||
CONSOLIDATING 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 | 2,346 | 3,032 | — | — | 5,378 | |||||||||||||||
Share-based payments expense | 10,998 | 8,364 | — | — | 19,362 | |||||||||||||||
Windfall excess tax benefits related to 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 | |||||||||||||||
Amortization of deferred financing fees and debt discount | 9,235 | — | — | — | 9,235 | |||||||||||||||
Loss from early extinguishment of debt | 953 | — | — | — | 953 | |||||||||||||||
Other | (2,343 | ) | (2,720 | ) | 10 | — | (5,053 | ) | ||||||||||||
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 | 57,527 | 1,946 | (184 | ) | 60,104 | ||||||||||||||
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 | 390,670 | (4,289 | ) | (184 | ) | 465,762 | |||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (64,423 | ) | (132,528 | ) | (12,959 | ) | — | (209,910 | ) | |||||||||||
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 | (382,868 | ) | 12,370 | — | (348,506 | ) | |||||||||||||
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 | ) | |||||||||||
Windfall 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 the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, 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. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 19: Subsequent Events |
On January 20, 2015, the Board of Directors of Outerwall Inc. announced that Nora M. Denzel, a director of the Company, was appointed by the Board to serve as Interim Chief Executive Officer of the Company, effective January 18, 2015, and that J. Scott Di Valerio stepped down as the Company’s Chief Executive Officer, effective January 18, 2015, and resigned from the Board, effective January 19, 2015. | |
On January 23, 2015, we made the decision to shut down our Redbox operations in Canada as the business was not meeting the Company's performance expectations and completed its disposal on March 31, 2015. As a result, we updated certain estimates used in the preparation of the financial statements and recognized an additional after-tax expense of $1.5 million in the fourth quarter of 2014 related to accelerated recognition of content library and capitalized installation costs on property and equipment. The remaining value of the content library and capitalized installation costs have been amortized over an expected three-month wind-down period ending March 31, 2015. Prior period results have been recast to reflect Redbox Canada results as discontinued operations. | |
On February 3, 2015, the Board approved an additional stock repurchase authorization of up to $250.0 million of its common stock plus the cash proceeds received from the exercise of stock options by the Company's directors and employees, bringing the total available for repurchases to approximately $413.7 million. | |
On February 3, 2015, our board of directors approved a dividend policy and declared a quarterly cash dividend of $0.30 per share to be paid on March 18, 2015, to all stockholders of record as of the close of business on March 3, 2015. Future quarterly dividend payments will be subject to approval by our board of directors. |
Recast_Financial_Information_N
Recast Financial Information (Notes) | 12 Months Ended | |
Dec. 31, 2014 | ||
Recast Financial Information [Abstract] | ||
Reclassifications [Text Block] | Note 20: Recast Financial Information | |
Certain financial information and footnotes included herein have been recast from the financial information and footnotes included in the Company's Form 10-K dated February 5, 2015, for the year ended December 31, 2014, due to the following items: | ||
• | To align with a change in how our chief operating decision maker evaluates business performance, we added ecoATM, our electronic device recycling business, as a separate reportable segment. Previously, the results of ecoATM along with those of other self-service concepts were included in our New Ventures segment. The combined results of the other self-service concepts, which include our product sampling kiosk concept SAMPLEit, are included in the All Other reporting category as they do not meet quantitative thresholds to be reported as a separate segment. See Note 14: Business Segments and Enterprise-Wide Information for additional information; and | |
• | We discontinued our Redbox Canada operations as the business was not meeting our performance expectations. We have reclassified the results of Redbox Canada to discontinued operations for all periods presented in our Consolidated Statements of Comprehensive Income. See Note 12: Discontinued Operations for additional information. | |
The following footnotes have been recast to conform to the above items: | ||
Note 1 | Organization and Business | |
Note 2 | Summary of Significant Accounting Policies | |
Note 4 | Goodwill and Other Intangible Assets | |
Note 5 | Equity Method Investments and Related Party Transactions | |
Note 10 | Restructuring | |
Note 11 | Income Taxes From Continuing Operations | |
Note 12 | Discontinued Operations | |
Note 14 | Business Segments and Enterprise-Wide Information | |
Note 18 | Guarantor Subsidiaries | |
Note 19 | Subsequent Events |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Commitments and Contingencies, Policy | 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. | ||||||||||||||||||||||||
Principles of Consolidation, Policy | 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, Policy | 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); 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 | 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 $242.7 million and $371.4 million at December 31, 2014, and December 31, 2013, respectively. Of this total, cash equivalents were $0.9 million and $65.8 million, respectively, and consisted 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, 2014, and December 31, 2013, were $81.7 million and $85.5 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, 2014, and December 31, 2013, were $66.5 million and $199.0 million, respectively in cash and cash equivalents held in financial institutions domestically and $11.6 million and $15.2 million, respectively in cash and cash equivalents held in foreign financial institutions. | ||||||||||||||||||||||||
Accounts Receivables, Policy | 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. Amounts expensed for uncollectible accounts and amounts charged against the allowance were immaterial in all periods presented. | ||||||||||||||||||||||||
Content Library | Content Library | |||||||||||||||||||||||
Content library consists of movies and video games available for rent or purchase. We obtain our movie and video game content primarily 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. Amortization charges are 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, we 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 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 we continue to recognize substantially all of the amortization expense 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, Plant and Equipment, Policy | 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 - 10 years | |||||||||||||||||||||||
Redbox kiosks and components | 3 - 5 years | |||||||||||||||||||||||
ecoATM kiosk and components | 5 years | |||||||||||||||||||||||
Computers and software | 3 - 5 years | |||||||||||||||||||||||
Office furniture and equipment | 5 - 7 years | |||||||||||||||||||||||
Leased vehicles | 3 - 6 years | |||||||||||||||||||||||
Leasehold improvements (shorter of life of asset or remaining lease term) | 1 - 11 years | |||||||||||||||||||||||
Internal Use Software, Policy | 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, Finite-Lived, Policy | Intangible Assets Subject to Amortization | |||||||||||||||||||||||
Our intangible assets subject to amortization are primarily composed 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 and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy | 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 and 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 4: Goodwill and Other Intangible Assets. | ||||||||||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy | 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 12: Discontinued Operations for additional information. | ||||||||||||||||||||||||
On January 23, 2015, we made the decision to shut down our Redbox Canada operations as the business was not meeting the Company's performance expectations. On March 31, 2015, we completed the disposal of the Redbox Canada operations. As a result, we updated certain estimates used in the preparation of the financial statements and the remaining value of certain capitalized property and equipment, consisting primarily of installation costs, was amortized over the wind-down period ending March 31, 2015. See Note 12: Discontinued Operations for additional information. | ||||||||||||||||||||||||
Income Tax, Policy | 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. In the event of a tax position where it would not be more likely than not that a tax benefit would be sustained, no tax benefit would be recognized in the financial statements. When applicable, associated interest and penalties have been recognized as a component of income tax expense. See Note 11: Income Taxes From Continuing Operations for additional information. | ||||||||||||||||||||||||
Tax Collected From Customers And Remitted To Governmental Authorities Policy | 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 | Convertible Debt | |||||||||||||||||||||||
In September 2009, we issued $200.0 million aggregate principal amount of 4% Convertible Senior Notes (the “Convertible Notes”). The Convertible Notes were convertible as of December 31, 2013 and the debt conversion feature was classified as temporary equity on our Consolidated Balance Sheets. On September 2, 2014, the Convertible Notes matured. In 2014, we retired or settled upon maturity, a combined 51,148 Convertible Notes for total consideration of $51.1 million in cash and the issuance of 431,760 shares of common stock. The amount by which total consideration exceeded the fair value of the Convertible Notes has been recorded as a reduction of stockholders’ equity. The loss from early extinguishment of the Convertible Notes was approximately $0.3 million and is recorded in interest expense in our Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||||||
Revenue Recognition, Policy | 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. In the fourth quarter of 2014, Redbox launched Redbox Play Pass, a new loyalty program, where customers can earn points redeemable for movie rentals. As customers accumulate points, we defer the estimated fair value of the points earned as deferred revenue (included within other current accrued liabilities). We deferred $1.5 million as of December 31, 2014. | |||||||||||||||||||||||
• | 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. | |||||||||||||||||||||||
• | ecoATM - Revenue is recognized upon the sale and shipment of devices collected at our kiosks to third parties. | |||||||||||||||||||||||
• | All Other - Revenue is recognized in our SAMPLEit concept when the service transaction is complete | |||||||||||||||||||||||
Fees Paid To Retailers Policy | 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 or a fixed fee and is recorded in our Consolidated Statements of Comprehensive Income within 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 Costs, Policy | Advertising | |||||||||||||||||||||||
Advertising costs, which are included as a component of marketing expenses, are expensed as incurred and totaled $11.1 million, $11.8 million and $11.7 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Research and Development Expense, Policy | Research and Development | |||||||||||||||||||||||
Costs incurred for research and development activities are expensed as incurred. | ||||||||||||||||||||||||
Foreign Currency Transactions and Translations Policy | 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, except for those associated with discontinued operations which are included in Loss from discontinued operations, net of tax 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 Accumulated other comprehensive loss in our Consolidated Balance Sheets. | ||||||||||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy | 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. Expense for performance based shares is recognized over the vesting period if and when we conclude that it is probable that the performance condition will be achieved. We reassess the probability of vesting at each reporting period for awards with performance conditions and adjust compensation cost based on our probability assessment. | ||||||||||||||||||||||||
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 9: Share-Based Payments. | ||||||||||||||||||||||||
Fair Value of Financial Instruments, Policy | 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. 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 16: Fair Value. | ||||||||||||||||||||||||
Reclassifications | Reclassifications | |||||||||||||||||||||||
During the first quarter of 2015, we discontinued our Redbox Canada operations. We have reclassified the results of Redbox Canada to discontinued operations for all periods presented in our Consolidated Statements of Comprehensive Income. See Note 12: Discontinued Operations for more information. | ||||||||||||||||||||||||
During 2014, we reclassified certain deferred fees associated with the issuance of our Senior Notes due 2019 from other long-term assets to long-term debt and other long-term liabilities. We have reclassified these amounts for all periods presented in our Consolidated Balance Sheets. | ||||||||||||||||||||||||
During 2013, we discontinued four new venture concepts, Rubi, Crisp Market, Orango, 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 12: Discontinued Operations for more information. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
Revision of Previously Issued Financial Statements | ||||||||||||||||||||||||
During the second quarter of 2014, we identified adjustments to prior periods related to purchases of property and equipment included in ending accounts payable which impact the amounts presented as cash paid for purchases of property and equipment in the investing activities section of our consolidated statements of cash flows, the change in accounts payable within the operating activities section of the cash flow statement and the supplemental non-cash investing and financing activities disclosure of purchases of property and equipment included in ending accounts payable. We concluded that the error was not material to any of our prior period financial statements under the guidance of SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality. We applied the guidance of SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements, and revised the prior period financial statements presented. | ||||||||||||||||||||||||
The impact of the immaterial error on our prior period Consolidated Statements of Cash Flows is presented in the following table: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Dollars in thousands | As Reported | Adjustment | As Revised | As Reported | Adjustment | As Revised | ||||||||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | (2,252 | ) | $ | 3,743 | $ | 1,491 | $ | 58,248 | $ | 1,856 | $ | 60,104 | |||||||||||
Net cash flows from operating activities | $ | 324,091 | $ | 3,743 | $ | 327,834 | $ | 463,906 | $ | 1,856 | $ | 465,762 | ||||||||||||
Investing Activities: | ||||||||||||||||||||||||
Purchases of property and equipment | $ | (157,669 | ) | $ | (3,743 | ) | $ | (161,412 | ) | $ | (208,054 | ) | $ | (1,856 | ) | $ | (209,910 | ) | ||||||
Net cash flows from investing activities | $ | (393,448 | ) | $ | (3,743 | ) | $ | (397,191 | ) | $ | (346,650 | ) | $ | (1,856 | ) | $ | (348,506 | ) | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||||||||||||||
Purchases of property and equipment included in ending accounts payable | $ | 12,254 | $ | (5,598 | ) | $ | 6,656 | $ | 27,562 | $ | (1,856 | ) | $ | 25,706 | ||||||||||
New Accounting Pronouncements, Policy | Accounting Pronouncements Adopted During the Current Year | |||||||||||||||||||||||
In May 2013, the FASB issued ASU No. 2013-05, "Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. For public entities, the ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Our adoption of ASU No. 2013-05 in the first quarter of 2014 did not have a material impact on our financial position, results of operations or cash flows. | ||||||||||||||||||||||||
In November 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." This ASU requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when: | ||||||||||||||||||||||||
1 | the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction, and | |||||||||||||||||||||||
2 | the entity intends to use the deferred tax asset for that purpose. | |||||||||||||||||||||||
The ASU changes existing presentation requirements but does not require new recurring disclosures. The ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013 for public entities. Our adoption of ASU No. 2013-11 in the first quarter of 2014 did not have a material impact on our financial position, results of operations or cash flows. | ||||||||||||||||||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the requirements for reporting discontinued operations. Under the ASU discontinued operations is defined as either a: | ||||||||||||||||||||||||
• | Component of an entity, or group of components, that | |||||||||||||||||||||||
◦ | has been disposed of, meets the criteria to be classified as held-for-sale, or has been abandoned/spun-off; and | |||||||||||||||||||||||
◦ | represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, or a | |||||||||||||||||||||||
• | Business or nonprofit activity that, on acquisition, meets the criteria to be classified as held-for-sale. | |||||||||||||||||||||||
We adopted the provisions of ASU 2014-08 during the first quarter of 2015 and applied the guidance to our Redbox Canada discontinued operations. See Note 12: Discontinued Operations for additional information. | ||||||||||||||||||||||||
Accounting Pronouncements Not Yet Adopted | ||||||||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The amendments in the ASU can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures. We are currently evaluating the impact of ASU 2014-09, including the methods of implementation, which is effective for us in our fiscal year beginning on January 1, 2017. | ||||||||||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU describes how an entity’s management should assess whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management should consider both quantitative and qualitative factors in making its assessment. | ||||||||||||||||||||||||
If after considering management’s plans, substantial doubt about an entity’s going concern is alleviated, an entity shall disclose information in the footnotes that enables the users of the financial statements to understand the events that raised the going concern and how management’s plan alleviated this concern. | ||||||||||||||||||||||||
If after considering management’s plans, substantial doubt about an entity’s going concern is not alleviated, the entity shall disclose in the footnotes indicating that a substantial doubt about the entity’s going concern exists within one year of the date of the issued financial statements. Additionally, the entity shall disclose the events that led to this going concern and management’s plans to mitigate them. | ||||||||||||||||||||||||
We are currently evaluating the impact of ASU 2014-15, which is effective for us in our fiscal year beginning January 1, 2016. |
Organization_and_Business_Tabl
Organization and Business (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Organization And Business [Abstract] | ||||||
Schedule Of Kiosk And Location Count | Our kiosk and location counts as of December 31, 2014, are as follows: | |||||
Kiosks | Locations | |||||
Redbox | 42,280 | 34,740 | ||||
Coinstar | 21,340 | 20,250 | ||||
ecoATM | 1,890 | 1,660 | ||||
All Other | 90 | 90 | ||||
Total | 65,600 | 56,740 | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | The impact of the immaterial error on our prior period Consolidated Statements of Cash Flows is presented in the following table: | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Dollars in thousands | As Reported | Adjustment | As Revised | As Reported | Adjustment | As Revised | ||||||||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | (2,252 | ) | $ | 3,743 | $ | 1,491 | $ | 58,248 | $ | 1,856 | $ | 60,104 | |||||||||||
Net cash flows from operating activities | $ | 324,091 | $ | 3,743 | $ | 327,834 | $ | 463,906 | $ | 1,856 | $ | 465,762 | ||||||||||||
Investing Activities: | ||||||||||||||||||||||||
Purchases of property and equipment | $ | (157,669 | ) | $ | (3,743 | ) | $ | (161,412 | ) | $ | (208,054 | ) | $ | (1,856 | ) | $ | (209,910 | ) | ||||||
Net cash flows from investing activities | $ | (393,448 | ) | $ | (3,743 | ) | $ | (397,191 | ) | $ | (346,650 | ) | $ | (1,856 | ) | $ | (348,506 | ) | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||||||||||||||
Purchases of property and equipment included in ending accounts payable | $ | 12,254 | $ | (5,598 | ) | $ | 6,656 | $ | 27,562 | $ | (1,856 | ) | $ | 25,706 | ||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | ||||||||
December 31, | ||||||||
Dollars in thousands | 2014 | 2013 | ||||||
Kiosks and components | $ | 1,165,925 | $ | 1,105,761 | ||||
Computers, servers, and software | 200,915 | 226,389 | ||||||
Office furniture and equipment | 9,218 | 7,260 | ||||||
Vehicles | 6,234 | 6,553 | ||||||
Leasehold improvements | 29,625 | 23,198 | ||||||
Property and equipment, at cost | 1,411,917 | 1,369,161 | ||||||
Accumulated depreciation and amortization | (983,449 | ) | (848,296 | ) | ||||
Property and equipment, net | $ | 428,468 | $ | 520,865 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill | The carrying amount of goodwill was as follows: | |||||||||||||||
Dollars in thousands | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Goodwill | $ | 559,307 | $ | 559,307 | ||||||||||||
Goodwill by Segment | The carrying amount of goodwill by segment was as follows: | |||||||||||||||
Dollars in thousands | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Redbox | $ | 138,743 | $ | 138,743 | ||||||||||||
Coinstar | 156,351 | 156,351 | ||||||||||||||
ecoATM | 264,213 | 264,213 | ||||||||||||||
Total goodwill | $ | 559,307 | $ | 559,307 | ||||||||||||
Gross Amount Of Other Intangible Assets And The Related Accumulated Amortization | The gross amount of our other intangible assets and the related accumulated amortization were as follows: | |||||||||||||||
Dollars in thousands | Amortization | December 31, | ||||||||||||||
Period | 2014 | 2013 | ||||||||||||||
Retailer relationships | 5 - 10 years | $ | 53,295 | $ | 53,295 | |||||||||||
Accumulated amortization | (23,200 | ) | (17,768 | ) | ||||||||||||
Retailer relationships, net | 30,095 | 35,527 | ||||||||||||||
Developed technology | 5 years | 34,000 | 34,000 | |||||||||||||
Accumulated amortization | (9,633 | ) | (2,833 | ) | ||||||||||||
Developed technology, net | 24,367 | 31,167 | ||||||||||||||
Other | 1 - 40 years | 16,800 | 16,800 | |||||||||||||
Accumulated amortization | (6,571 | ) | (4,111 | ) | ||||||||||||
Other, net | 10,229 | 12,689 | ||||||||||||||
Total intangible assets, net | $ | 64,691 | $ | 79,383 | ||||||||||||
Schedule Of Amortization Of Intangible Assets | Amortization expense was as follows: | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||||||
Retailer relationships | $ | 5,432 | $ | 6,250 | $ | 4,456 | ||||||||||
Developed technology | 6,800 | 2,833 | — | |||||||||||||
Other | 2,460 | 1,850 | 922 | |||||||||||||
Total amortization of intangible assets | $ | 14,692 | $ | 10,933 | $ | 5,378 | ||||||||||
Less: amortization included in discontinued operations | (38 | ) | (26 | ) | (21 | ) | ||||||||||
Total amortization of intangible assets from continuing operations | $ | 14,654 | $ | 10,907 | $ | 5,357 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Assuming no future impairment, the expected future amortization as of December 31, 2014 is as follows: | |||||||||||||||
Dollars in thousands | Retailer | Developed Technology | Other | Total | ||||||||||||
Relationships | ||||||||||||||||
2015 | $ | 4,012 | $ | 6,800 | $ | 2,407 | $ | 13,219 | ||||||||
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 | ||||||||||||
2019 | 4,012 | — | 801 | 4,813 | ||||||||||||
Thereafter | 10,035 | — | 765 | 10,800 | ||||||||||||
Total expected amortization | $ | 30,095 | $ | 24,367 | $ | 10,229 | $ | 64,691 | ||||||||
Equity_Method_Investments_and_1
Equity Method Investments and Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Schedule of Contributions to Equity Method Investment | The following table summarizes Redbox's initial cash capital contribution and subsequent cash capital contributions representing its pro-rata share of requests made by the Joint Venture board of managers: | ||||||||||||
Dollars in thousands | Cash Contributions | ||||||||||||
2012 | $ | 24,500 | |||||||||||
2013 | 28,000 | ||||||||||||
2014 | 24,500 | ||||||||||||
Total cash capital contributions | $ | 77,000 | |||||||||||
Schedule of Equity Method Investments | Income (loss) from equity method investments within our Consolidated Statements of Comprehensive Income is composed of the following: | ||||||||||||
Year Ended December 31, | |||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | ||||||||||
Trademark gain | $ | — | $ | — | $ | 19,500 | |||||||
Gain on previously held equity interest in ecoATM | — | 68,376 | — | ||||||||||
Proportionate share of net loss of equity method investees: | |||||||||||||
Joint Venture | (25,793 | ) | (42,660 | ) | (20,236 | ) | |||||||
ecoATM and SoloHealth | (530 | ) | (3,313 | ) | (2,179 | ) | |||||||
Total proportionate share of net loss of equity method investees | (26,323 | ) | (45,973 | ) | (22,415 | ) | |||||||
Amortization of difference in carrying amount and underlying equity in Joint Venture | (2,411 | ) | (2,475 | ) | (2,269 | ) | |||||||
Total income (loss) from equity method investments | $ | (28,734 | ) | $ | 19,928 | $ | (5,184 | ) | |||||
A summary of financial information for our equity method investees in the aggregate, as provided to us by the investees, is as follows and includes the balance sheet as of and statement of operations through October 20, 2014, the date of our withdrawal from the Joint Venture, and as of December 31, 2014 and the period ended December 31, 2014 for SoloHealth: | |||||||||||||
Balance Sheets | October 20, | December 31, | |||||||||||
Dollars in thousands | 2014(1) | 2014(2) | 2013 | ||||||||||
Current assets | $ | 9,095 | $ | 3,408 | $ | 32,832 | |||||||
Noncurrent assets | $ | 3,053 | $ | 20,376 | $ | 30,765 | |||||||
Current liabilities | $ | 86,735 | $ | 7,321 | $ | 46,706 | |||||||
Long-term liabilities | $ | — | $ | 18,754 | $ | 23,905 | |||||||
Redeemable preferred stock | $ | — | $ | 23,734 | $ | 23,542 | |||||||
(1) Represents the Joint Venture only | |||||||||||||
(2) Represents SoloHealth only | |||||||||||||
Statement of Operations | Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | ||||||||||
Revenue | $ | 29,963 | $ | 15,824 | $ | 2,067 | |||||||
Cost of sales and service | $ | 68,732 | $ | 25,092 | $ | 10,716 | |||||||
Net loss and loss from continuing operations | $ | 140,919 | $ | 134,911 | $ | 58,510 | |||||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets and Other Liabilities Disclosure [Abstract] | ||||||||
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets | |||||||
December 31, | ||||||||
Dollars in thousands | 2014 | 2013 | ||||||
Spare parts | $ | 13,643 | $ | 18,975 | ||||
Licenses | 5,881 | 4,568 | ||||||
Electronic devices inventory | 5,259 | 3,529 | ||||||
Prepaid rent | 1,446 | 1,302 | ||||||
DVD cases and labels | 1,330 | 2,596 | ||||||
Income taxes receivable | 113 | 37,466 | ||||||
Other | 12,165 | 16,273 | ||||||
Total prepaid and other current assets | $ | 39,837 | $ | 84,709 | ||||
Schedule of Other Accrued Liabilities | Other accrued liabilities | |||||||
December 31, | ||||||||
Dollars in thousands | 2014 | 2013 | ||||||
Payroll related expenses | $ | 33,343 | $ | 33,852 | ||||
Accrued content library expense | 23,226 | 21,602 | ||||||
Business taxes | 21,629 | 22,939 | ||||||
Insurance | 9,615 | 13,379 | ||||||
Deferred revenue | 6,995 | 4,323 | ||||||
Accrued interest expense | 6,974 | 7,015 | ||||||
Deferred rent expense | 6,162 | 5,713 | ||||||
Service contract provider expenses | 4,191 | 8,134 | ||||||
Other | 24,991 | 17,170 | ||||||
Total other accrued liabilities | $ | 137,126 | $ | 134,127 | ||||
Debt_and_Other_LongTerm_Liabil1
Debt and Other Long-Term Liabilities (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule of Debt and Other Long Term Liabilities | ||||||||||||||||||||||||||||||||||||
Debt | Other Liabilities | Total | ||||||||||||||||||||||||||||||||||
Senior Notes | Credit Facility | Total Debt | Capital Lease Obligations | Asset retirement obligations | Other long-term liabilities | |||||||||||||||||||||||||||||||
Dollars in thousands | Senior Unsecured Notes due 2019 | Senior Unsecured Notes due 2021 | Term Loans | Revolving Line of Credit | ||||||||||||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||||||||||
Principal | $ | 350,000 | $ | 300,000 | $ | 146,250 | $ | 160,000 | $ | 956,250 | ||||||||||||||||||||||||||
Discount | (4,296 | ) | (4,152 | ) | (335 | ) | — | (8,783 | ) | |||||||||||||||||||||||||||
Total | 345,704 | 295,848 | 145,915 | $ | 160,000 | 947,467 | $ | 15,391 | $ | 13,576 | $ | 17,651 | $ | 994,085 | ||||||||||||||||||||||
Less: current portion | — | — | (9,390 | ) | — | (9,390 | ) | (11,026 | ) | — | — | (20,416 | ) | |||||||||||||||||||||||
Total long-term portion | $ | 345,704 | $ | 295,848 | $ | 136,525 | $ | 160,000 | $ | 938,077 | $ | 4,365 | $ | 13,576 | $ | 17,651 | $ | 973,669 | ||||||||||||||||||
Unamortized deferred financing fees(1) | $ | 649 | $ | 1,372 | $ | — | $ | 2,965 | $ | 4,986 | $ | 4,986 | ||||||||||||||||||||||||
Debt | Other Liabilities | Total | ||||||||||||||||||||||||||||||||||
Senior Unsecured Notes due 2019 | Credit Facility | Convertible Notes | Total Debt | Capital Lease Obligations | Asset retirement obligations | Other long-term liabilities | ||||||||||||||||||||||||||||||
Dollars in thousands | Term Loans | Revolving Line of Credit | ||||||||||||||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||||||||||
Principal | $ | 350,000 | $ | 344,375 | $ | — | $ | 51,148 | $ | 745,523 | ||||||||||||||||||||||||||
Discount | (5,317 | ) | — | — | (1,446 | ) | (6,763 | ) | ||||||||||||||||||||||||||||
Total | 344,683 | 344,375 | $ | — | 49,702 | 738,760 | $ | 21,361 | $ | 13,086 | $ | 12,085 | $ | 785,292 | ||||||||||||||||||||||
Less: current portion | — | (42,187 | ) | — | (49,702 | ) | (91,889 | ) | (11,997 | ) | — | (3 | ) | (103,889 | ) | |||||||||||||||||||||
Total long-term portion | $ | 344,683 | $ | 302,188 | $ | — | $ | — | $ | 646,871 | $ | 9,364 | $ | 13,086 | $ | 12,082 | $ | 681,403 | ||||||||||||||||||
Unamortized deferred financing fees(1) | $ | 832 | $ | 1,259 | $ | 2,749 | $ | 186 | $ | 5,026 | $ | 5,026 | ||||||||||||||||||||||||
(1)Deferred financing fees are recorded in other long-term assets in our Consolidated Balance Sheets and are amortized on a straight line basis over the life of the related loan. | ||||||||||||||||||||||||||||||||||||
Interest Income and Interest Expense Disclosure | Interest Expense | |||||||||||||||||||||||||||||||||||
Dollars in thousands | Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Cash interest expense | $ | 41,562 | $ | 25,289 | $ | 12,833 | ||||||||||||||||||||||||||||||
Non-cash interest expense: | ||||||||||||||||||||||||||||||||||||
Amortization of debt discount | 2,606 | 4,674 | 7,109 | |||||||||||||||||||||||||||||||||
Amortization of deferred financing fees | 1,510 | 1,720 | 2,126 | |||||||||||||||||||||||||||||||||
Other | — | (550 | ) | (2,700 | ) | |||||||||||||||||||||||||||||||
Total non-cash interest expense | 4,116 | 5,844 | 6,535 | |||||||||||||||||||||||||||||||||
Total cash and non-cash interest expense | 45,678 | 31,133 | 19,368 | |||||||||||||||||||||||||||||||||
Loss from early extinguishment of debt | 2,018 | 6,013 | 953 | |||||||||||||||||||||||||||||||||
Total interest expense | $ | 47,696 | $ | 37,146 | $ | 20,321 | ||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | The Amended and Restated Credit Agreement requires principal amortization payments under the Term Loan as follows: | |||||||||||||||||||||||||||||||||||
Dollars in thousands | Repayment Amount | |||||||||||||||||||||||||||||||||||
2015 | $ | 9,376 | ||||||||||||||||||||||||||||||||||
2016 | 13,126 | |||||||||||||||||||||||||||||||||||
2017 | 15,000 | |||||||||||||||||||||||||||||||||||
2018 | 18,750 | |||||||||||||||||||||||||||||||||||
2019 | 89,998 | |||||||||||||||||||||||||||||||||||
Total | $ | 146,250 | ||||||||||||||||||||||||||||||||||
Schedule of Other Long-term Liabilities | ||||||||||||||||||||||||||||||||||||
Dollars in thousands | December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Tenant improvement and deferred rent and other | $ | 13,013 | $ | 9,301 | ||||||||||||||||||||||||||||||||
Unrecognized tax benefit | 4,638 | 2,781 | ||||||||||||||||||||||||||||||||||
Total other long-term liabilities | $ | 17,651 | $ | 12,082 | ||||||||||||||||||||||||||||||||
Repurchases_of_Common_Stock_Ta
Repurchases of Common Stock (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Class of Stock Disclosures [Abstract] | |||||||||||
Schedule of Treasury Stock by Class | The following tables present a summary of our 2014 authorized stock repurchase balance and repurchases made during the past three years: | ||||||||||
Dollars in thousands | Board Authorization | ||||||||||
Authorized repurchase - as of January 1, 2014(1) | $ | 201,291 | |||||||||
Additional board authorization(1) | 500,000 | ||||||||||
Proceeds from the exercise of stock options | 3,735 | ||||||||||
Repurchase of common stock from open market | (170,582 | ) | |||||||||
Repurchase from tender offer(2) | (370,789 | ) | |||||||||
Authorized repurchase - as of December 31, 2014(1) | $ | 163,655 | |||||||||
Repurchases made in the year ended December 31, | Number of Shares | Average Price per Share (in dollars) | Total Purchase Price (in thousands) | ||||||||
Repurchased | |||||||||||
2014 | |||||||||||
Tender offer(2) | 5,291,701 | $ | 70.07 | $ | 370,789 | ||||||
Open market | 2,633,526 | $ | 64.77 | 170,582 | |||||||
Total 2014 | 7,925,227 | $ | 68.31 | 541,371 | |||||||
2013 | 3,306,433 | $ | 58.98 | 195,004 | |||||||
2012 | 2,799,115 | $ | 49.92 | 139,724 | |||||||
Total | 14,030,775 | $ | 62.44 | $ | 876,099 | ||||||
-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. | ||||||||||
-2 | Fees and expenses totaling $3.7 million associated with the tender offer do not impact the repurchase program approved by our Board, are excluded from the total purchase price shown here and were recorded as part of the cost of treasury stock in our Consolidated Balance Sheets. |
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Share-based Compensation [Abstract] | ||||||||||||
Summary Of Grant Information | The following is the summary of grant information: | |||||||||||
Shares in thousands | 31-Dec-14 | |||||||||||
Unissued common stock reserved for issuance under all plans | 1,219 | |||||||||||
Shares available for future grants | 1,090 | |||||||||||
Summary Of Share Based Payments | Certain information regarding our share-based payments is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands except per share data | 2014 | 2013 | 2012 | |||||||||
Share-based payments expense: | ||||||||||||
Share-based compensation - stock options | $ | 803 | $ | 1,566 | $ | 2,654 | ||||||
Share-based compensation - restricted stock | 11,214 | 10,504 | 10,593 | |||||||||
Share-based payments for content arrangements | 1,367 | 4,761 | 6,115 | |||||||||
Total share-based payments expense | $ | 13,384 | $ | 16,831 | $ | 19,362 | ||||||
Tax benefit on share-based payments expense | $ | 5,134 | $ | 6,392 | $ | 7,246 | ||||||
Per share weighted average grant date fair value of stock options granted | $ | — | $ | 53.9 | $ | 27.24 | ||||||
Per share weighted average grant date fair value of restricted stock granted | $ | 71.37 | $ | 53.94 | $ | 55.94 | ||||||
Total intrinsic value of stock options exercised | $ | 3,263 | $ | 10,567 | $ | 10,509 | ||||||
Grant date fair value of restricted stock vested | $ | 13,036 | $ | 12,641 | $ | 11,648 | ||||||
31-Dec-14 | ||||||||||||
Dollars in thousands | Unrecognized Share-Based Payments Expense | Weighted-Average Remaining Life | ||||||||||
Unrecognized share-based payments expense: | ||||||||||||
Share-based compensation - stock options | $ | 863 | 1.8 years | |||||||||
Share-based compensation - restricted stock | 20,714 | 2.1 years | ||||||||||
Share-based payments for content arrangements (1) | 1,041 | 0.8 years | ||||||||||
Total unrecognized share-based payments expense | $ | 22,618 | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table presents a summary of stock option activity for 2014: | |||||||||||
Shares in thousands | Options | Weighted Average Exercise Price | ||||||||||
Outstanding, December 31, 2013 | 248 | $ | 45.72 | |||||||||
Granted | — | $ | — | |||||||||
Exercised | (103 | ) | $ | 36.17 | ||||||||
Canceled, expired, or forfeited | (17 | ) | $ | 52.04 | ||||||||
Outstanding, December 31, 2014 | 128 | $ | 52.59 | |||||||||
Schedule Of Information Regarding Stock Options Outstanding | Certain information regarding stock options outstanding as of December 31, 2014, is as follows: | |||||||||||
Options | ||||||||||||
Shares and intrinsic value in thousands | Outstanding | Exercisable | ||||||||||
Number | 128 | 58 | ||||||||||
Weighted average per share exercise price | $ | 52.59 | $ | 51.48 | ||||||||
Aggregate intrinsic value | $ | 2,904 | $ | 1,384 | ||||||||
Weighted average remaining contractual term (in years) | 7.31 | 6.79 | ||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table presents a summary of restricted stock award activity for 2014: | |||||||||||
Shares in thousands | Restricted Stock Awards | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested, December 31, 2013 | 597 | $ | 52.58 | |||||||||
Granted | 347 | $ | 71.37 | |||||||||
Vested | (190 | ) | $ | 50.41 | ||||||||
Forfeited | (145 | ) | $ | 59.35 | ||||||||
Non-vested, December 31, 2014 | 609 | $ | 62.35 | |||||||||
Schedule of Information Related to Share Based Payments for content Arrangements | Information related to the shares of restricted stock granted as part of these agreements as of December 31, 2014, is as follows: | |||||||||||
Whole shares | Granted | Vested | Unvested | Remaining | ||||||||
Vesting Period | ||||||||||||
Sony (1) | 218,348 | 218,348 | — | N/A | ||||||||
Paramount (2) | 300,000 | 255,000 | 45,000 | one day | ||||||||
Total | 518,348 | 473,348 | 45,000 | |||||||||
Schedule of Expected Amortization Expense of Share-Based Compensation | The expected future recognition of expense associated with the rights to receive cash as of December 31, 2014 is as follows: | |||||||||||
Dollars in thousands | Expected Expense | |||||||||||
2015 | $ | 4,588 | ||||||||||
2016 | 2,953 | |||||||||||
2017 | 513 | |||||||||||
Remaining total expected expense | $ | 8,054 | ||||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring and Related Costs | The detail of restructuring charges incurred by reportable segment (on an allocated basis) and expense type is as follows: | |||||||||||||||
Dollars in thousands | Cumulative as of December 31, 2014 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||
Redbox | ||||||||||||||||
Severance | $ | 4,306 | $ | 535 | $ | 3,771 | ||||||||||
Coinstar | ||||||||||||||||
Severance | 747 | 23 | 724 | |||||||||||||
Discontinued Operations | ||||||||||||||||
Severance | 1,026 | 155 | 871 | |||||||||||||
Other | 1,873 | 435 | 1,438 | |||||||||||||
Total | $ | 7,952 | $ | 1,148 | $ | 6,804 | ||||||||||
A reconciliation of the beginning and ending liability balance by expense type is as follows: | ||||||||||||||||
Dollars in thousands | Severance | Other | ||||||||||||||
Beginning balance - January 1, 2013 | $ | — | $ | — | ||||||||||||
Costs charged to expense | 5,366 | 1,438 | ||||||||||||||
Costs paid or otherwise settled | (2,858 | ) | (20 | ) | ||||||||||||
Balance as of December 31, 2013 | 2,508 | 1,418 | ||||||||||||||
Costs charged to expense | 713 | 435 | ||||||||||||||
Costs paid or otherwise settled | (3,221 | ) | (1,853 | ) | ||||||||||||
Ending balance - December 31, 2014 | $ | — | $ | — | ||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The line items in our Consolidated Statements of Comprehensive Income in which the expenses are recorded are as follows: | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Dollars in thousands | Severance | Other | Severance | Other | ||||||||||||
Direct operating | $ | 410 | $ | — | $ | — | $ | — | ||||||||
General and administrative | 148 | — | 4,495 | — | ||||||||||||
Loss from discontinued operations, net of tax | 155 | 435 | 871 | 1,438 | ||||||||||||
Total expense | $ | 713 | $ | 435 | $ | 5,366 | $ | 1,438 | ||||||||
Income_Taxes_Disclosure_Income
Income Taxes Disclosure - Income Taxes from Continuing Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | The components of income from continuing operations before income taxes were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
U.S. operations | $ | 188,473 | $ | 259,057 | $ | 263,730 | ||||||
Foreign operations | 2,368 | 3,341 | 2,784 | |||||||||
Total income from continuing operations before income taxes | $ | 190,841 | $ | 262,398 | $ | 266,514 | ||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense from continuing operations were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
U.S. Federal | $ | 69,117 | $ | 38,876 | $ | — | ||||||
State and local | 12,294 | 10,104 | 4,142 | |||||||||
Foreign | 415 | (424 | ) | 7 | ||||||||
Total current | 81,826 | 48,556 | 4,149 | |||||||||
Deferred: | ||||||||||||
U.S. Federal | (16,232 | ) | (3,642 | ) | 87,715 | |||||||
State and local | 427 | (5,653 | ) | 8,002 | ||||||||
Foreign | 143 | 449 | 345 | |||||||||
Total deferred | (15,662 | ) | (8,846 | ) | 96,062 | |||||||
Total income tax expense | $ | 66,164 | $ | 39,710 | $ | 100,211 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | 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: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S Federal tax expense at statutory rates | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 4.1 | 3.9 | 3.9 | |||||||||
Federal and state credits | (1.1 | ) | (0.9 | ) | (0.8 | ) | ||||||
Domestic production activities deduction | (3.6 | ) | (0.6 | ) | — | |||||||
Recognition of outside basis differences | (1.1 | ) | (15.4 | ) | — | |||||||
ecoATM option payments | 1.4 | 0.7 | — | |||||||||
Valuation allowance | — | 2.3 | — | |||||||||
Acquisition of ecoATM | — | (9.3 | ) | — | ||||||||
Other | — | (0.6 | ) | (0.5 | ) | |||||||
Effective tax rate | 34.7 | % | 15.1 | % | 37.6 | % | ||||||
Summary of Income Tax Contingencies | The aggregate changes in the balance of unrecognized tax benefits were as follows: | |||||||||||
Dollars in thousands | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of the year | $ | 2,781 | $ | 2,383 | $ | 2,455 | ||||||
Additions based on tax positions related to the current year | 1,836 | 824 | — | |||||||||
Additions for tax positions related to prior years | 806 | 18 | 251 | |||||||||
Reductions for tax positions related to prior years | — | (257 | ) | (71 | ) | |||||||
Reductions from lapse of applicable statute of limitations | (784 | ) | (49 | ) | (252 | ) | ||||||
Settlements | — | (138 | ) | — | ||||||||
Balance, end of year | $ | 4,639 | $ | 2,781 | $ | 2,383 | ||||||
Schedule of Deferred Tax Assets and Liabilities | 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, | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Income tax loss carryforwards | $ | 5,690 | $ | 7,347 | ||||||||
Capital loss carryforwards | 5,930 | 5,917 | ||||||||||
Credit carryforwards | 2,929 | 2,289 | ||||||||||
Accrued liabilities and allowances | 22,652 | 14,929 | ||||||||||
Stock-based compensation | 11,901 | 12,547 | ||||||||||
Intangible assets | 17,166 | 17,252 | ||||||||||
Investment basis | — | 3,968 | ||||||||||
Other | 3,776 | 2,148 | ||||||||||
Gross deferred tax assets | 70,044 | 66,397 | ||||||||||
Less: Valuation Allowance | (6,898 | ) | (6,898 | ) | ||||||||
Total deferred tax assets | 63,146 | 59,499 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (68,417 | ) | (93,407 | ) | ||||||||
Product costs | (43,140 | ) | (40,757 | ) | ||||||||
Convertible debt interest | — | (552 | ) | |||||||||
Total deferred tax liabilities | (111,557 | ) | (134,716 | ) | ||||||||
Net deferred tax liabilities | $ | (48,411 | ) | $ | (75,217 | ) | ||||||
Summary of Valuation Allowance | Change in Valuation Allowance | |||||||||||
Dollars in thousands | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Increase in valuation allowance | $ | — | $ | 6,898 | $ | — | ||||||
Summary of Operating Loss Carryforwards | Our deferred tax assets relating to income tax loss carryforwards and expiration periods are summarized as follows: | |||||||||||
Dollars in thousands | December 31, 2014 | |||||||||||
Federal | State | Foreign | ||||||||||
Net operating loss carryforwards | $ | 257 | $ | 36,457 | $ | 16,448 | ||||||
Deferred tax assets related to net operating loss carryforwards | $ | 90 | $ | 1,286 | $ | 4,314 | ||||||
Years that net operating loss carryforwards will expire between | 2029 to 2034 | 2019 and 2034 | 2033 and 2035 | |||||||||
Summary of Tax Credit Carryforwards | The following table shows our U.S. state tax credits and related expiration periods. Based upon our projections for future taxable income, we believe it is more likely than not that we will realize the benefits of these credits prior to their expiration. | |||||||||||
Dollars in thousands | December 31, 2014 | |||||||||||
Amount | Expiration | |||||||||||
U.S state tax credits: | ||||||||||||
Illinois state tax credits | $ | 3,388 | 2016 to 2017 | |||||||||
California U.S. state tax credits | 1,118 | Do not expire | ||||||||||
Total U.S. state tax credits | $ | 4,506 | ||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table sets forth the components of discontinued operations included in our Consolidated Statements of Comprehensive Income: | |||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
Redbox Canada revenue | $ | 11,417 | $ | 6,816 | $ | 1,733 | ||||||
Certain new ventures revenue | 100 | 4,399 | 2,159 | |||||||||
Total revenue | $ | 11,517 | $ | 11,215 | $ | 3,892 | ||||||
Redbox Canada loss before income tax | $ | (23,707 | ) | $ | (19,830 | ) | $ | (8,121 | ) | |||
Certain new ventures loss before income tax | (1,259 | ) | (54,395 | ) | (16,647 | ) | ||||||
Total loss before income tax: | (24,966 | ) | (74,225 | ) | (24,768 | ) | ||||||
Redbox Canada income tax benefit | 6,416 | 5,233 | 2,270 | |||||||||
Certain new ventures income tax benefit | 491 | 21,096 | 6,425 | |||||||||
Total income tax benefit | 6,907 | 26,329 | 8,695 | |||||||||
Redbox Canada loss, net of tax | (17,291 | ) | (14,597 | ) | (5,851 | ) | ||||||
Certain new ventures loss, net of tax | (768 | ) | (33,299 | ) | (10,222 | ) | ||||||
Total loss from discontinued operations, net of tax | $ | (18,059 | ) | $ | (47,896 | ) | $ | (16,073 | ) | |||
The following table sets forth the components of discontinued operations included in our Consolidated Statements of Comprehensive Income: | ||||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
Major classes of line items constituting pretax loss of discontinued operations: | ||||||||||||
Revenue | $ | 11,417 | $ | 6,816 | $ | 1,733 | ||||||
Direct operating | 20,027 | 18,278 | 6,297 | |||||||||
Marketing | 2,947 | 2,175 | 1,822 | |||||||||
Research and development | — | 2 | — | |||||||||
General and administrative | 1,078 | 3,088 | 987 | |||||||||
Depreciation and other | 7,354 | 2,760 | 694 | |||||||||
Amortization of intangible assets | 38 | 26 | 21 | |||||||||
Other expense, net | (3,680 | ) | (317 | ) | (33 | ) | ||||||
Pretax loss of discontinued operations related to major classes of pretax loss | (23,707 | ) | (19,830 | ) | (8,121 | ) | ||||||
Income tax benefit | 6,416 | 5,233 | 2,270 | |||||||||
Total loss on discontinued operations | $ | (17,291 | ) | $ | (14,597 | ) | $ | (5,851 | ) | |||
Schedule of Discontinued Operations Included in Financial Statements [Table Text Block] | Significant operating and investing cash flows of Redbox Canada were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||
Net loss on discontinued operations | $ | (17,291 | ) | $ | (14,597 | ) | $ | (5,851 | ) | |||
Adjustments to reconcile net loss to net cash flows from operating activities: | ||||||||||||
Depreciation and amortization | 7,392 | 2,786 | 715 | |||||||||
Content library | (787 | ) | (410 | ) | (659 | ) | ||||||
Prepaid and other current assets | (293 | ) | (516 | ) | (3,092 | ) | ||||||
Accounts payable | 627 | 644 | (14 | ) | ||||||||
Accrued payables to retailers | (175 | ) | 247 | 2,023 | ||||||||
Other accrued liabilities | (122 | ) | 506 | 807 | ||||||||
Net cash flows from operating activities | $ | (10,649 | ) | $ | (11,340 | ) | $ | (6,071 | ) | |||
Investing activities: | ||||||||||||
Purchase of property, plant and equipment | (5,494 | ) | (9,330 | ) | (12,098 | ) | ||||||
Total cash flows used in investing activities | $ | (5,494 | ) | $ | (9,330 | ) | $ | (12,098 | ) | |||
Schedule of Asset Impairment Charges [Table Text Block] | Total asset impairment charges related to the concepts and relevant shared service assets were recorded in 2013 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 | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Shares Used for Basic and Diluted EPS Calculations | The following table sets forth the computation of shares used for the basic and diluted EPS calculations: | ||||||||
Year Ended December 31, | |||||||||
In thousands | 2014 | 2013 | 2012 | ||||||
Weighted average shares used for basic EPS | 20,192 | 27,216 | 30,305 | ||||||
Dilutive effect of stock options and other share-based awards | 277 | 447 | 598 | ||||||
Dilutive effect of convertible debt | 230 | 718 | 1,271 | ||||||
Weighted average shares used for diluted EPS | 20,699 | 28,381 | 32,174 | ||||||
Stock options and share-based awards not included in diluted EPS calculation because their effect would be antidilutive | 12 | 14 | 139 | ||||||
Business_Segments_and_Enterpri1
Business Segments and Enterprise-Wide Information (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ||||||||||||||||||||||||
Dollars in thousands | ||||||||||||||||||||||||
Year Ended December 31, 2014 | Redbox | Coinstar | ecoATM | All Other | Corporate Unallocated | Total | ||||||||||||||||||
Revenue | $ | 1,881,718 | $ | 315,628 | $ | 94,187 | $ | 53 | $ | — | $ | 2,291,586 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Direct operating | 1,318,919 | 161,214 | 92,182 | 2,821 | 6,585 | 1,581,721 | ||||||||||||||||||
Marketing | 20,969 | 6,346 | 3,513 | 1,272 | 3,193 | 35,293 | ||||||||||||||||||
Research and development | 120 | 531 | 5,691 | 2,854 | 3,851 | 13,047 | ||||||||||||||||||
General and administrative | 135,678 | 27,012 | 12,773 | 3,522 | 11,658 | 190,643 | ||||||||||||||||||
Segment operating income (loss) | 406,032 | 120,525 | (19,972 | ) | (10,416 | ) | (25,287 | ) | 470,882 | |||||||||||||||
Less: depreciation and amortization | (149,236 | ) | (35,471 | ) | (17,031 | ) | (740 | ) | — | (202,478 | ) | |||||||||||||
Operating income (loss) | 256,796 | 85,054 | (37,003 | ) | (11,156 | ) | (25,287 | ) | 268,404 | |||||||||||||||
Loss from equity method investments, net | — | — | — | — | (28,734 | ) | (28,734 | ) | ||||||||||||||||
Interest expense, net | — | — | — | — | (47,644 | ) | (47,644 | ) | ||||||||||||||||
Other, net | — | — | — | — | (1,185 | ) | (1,185 | ) | ||||||||||||||||
Income (loss) before income taxes | $ | 256,796 | $ | 85,054 | $ | (37,003 | ) | $ | (11,156 | ) | $ | (102,850 | ) | $ | 190,841 | |||||||||
Dollars in thousands | ||||||||||||||||||||||||
Year Ended December 31, 2013 | Redbox | Coinstar | ecoATM | All Other | Corporate Unallocated | Total | ||||||||||||||||||
Revenue | $ | 1,967,715 | $ | 300,218 | $ | 31,824 | $ | 28 | $ | — | $ | 2,299,785 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Direct operating | 1,365,368 | 158,562 | 27,271 | 2,162 | 3,636 | 1,556,999 | ||||||||||||||||||
Marketing | 20,835 | 6,244 | 938 | 651 | 1,559 | 30,227 | ||||||||||||||||||
Research and development | 76 | 6,962 | 2,772 | 1,897 | 1,375 | 13,082 | ||||||||||||||||||
General and administrative | 164,634 | 25,944 | 7,868 | 7,683 | 14,164 | 220,293 | ||||||||||||||||||
Segment operating income (loss) | 416,802 | 102,506 | (7,025 | ) | (12,365 | ) | (20,734 | ) | 479,184 | |||||||||||||||
Less: depreciation and amortization | (159,851 | ) | (33,921 | ) | (6,077 | ) | (459 | ) | — | (200,308 | ) | |||||||||||||
Operating income (loss) | 256,951 | 68,585 | (13,102 | ) | (12,824 | ) | (20,734 | ) | 278,876 | |||||||||||||||
Income from equity method investments, net | — | — | — | — | 19,928 | 19,928 | ||||||||||||||||||
Interest expense, net | — | — | — | — | (32,807 | ) | (32,807 | ) | ||||||||||||||||
Other, net | — | — | — | — | (3,599 | ) | (3,599 | ) | ||||||||||||||||
Income (loss) before income taxes | $ | 256,951 | $ | 68,585 | $ | (13,102 | ) | $ | (12,824 | ) | $ | (37,212 | ) | $ | 262,398 | |||||||||
Dollars in thousands | ||||||||||||||||||||||||
Year Ended December 31, 2012 | Redbox | Coinstar | ecoATM | All Other | Corporate Unallocated | Total | ||||||||||||||||||
Revenue | $ | 1,907,040 | $ | 290,761 | $ | — | $ | 350 | $ | — | $ | 2,198,151 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Direct operating | 1,334,602 | 155,740 | — | 1,317 | 863 | 1,492,522 | ||||||||||||||||||
Marketing | 18,675 | 4,938 | — | 478 | 66 | 24,157 | ||||||||||||||||||
Research and development | 739 | 4,455 | — | 1,229 | 334 | 6,757 | ||||||||||||||||||
General and administrative | 158,898 | 26,367 | — | 6,283 | 11,984 | 203,532 | ||||||||||||||||||
Segment operating income (loss) | 394,126 | 99,261 | — | (8,957 | ) | (13,247 | ) | 471,183 | ||||||||||||||||
Less: depreciation and amortization | (147,353 | ) | (36,108 | ) | — | (229 | ) | — | (183,690 | ) | ||||||||||||||
Operating income (loss) | 246,773 | 63,153 | — | (9,186 | ) | (13,247 | ) | 287,493 | ||||||||||||||||
Loss from equity method investments, net | — | — | — | — | (5,184 | ) | (5,184 | ) | ||||||||||||||||
Interest expense, net | — | — | — | — | (15,640 | ) | (15,640 | ) | ||||||||||||||||
Other, net | — | — | — | — | (155 | ) | (155 | ) | ||||||||||||||||
Income (loss) before income taxes | $ | 246,773 | $ | 63,153 | $ | — | $ | (9,186 | ) | $ | (34,226 | ) | $ | 266,514 | ||||||||||
Schedule of Entity-Wide Information by Major Customers by Reporting Segments | The following retailers accounted for 10% or more of our consolidated revenue: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Wal-Mart Stores Inc. | 15.5 | % | 15.2 | % | 16 | % | ||||||||||||||||||
Walgreen Co. | 13.8 | % | 14.7 | % | 16.1 | % | ||||||||||||||||||
The Kroger Company | 9.8 | % | 10 | % | 10.7 | % | ||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Revenue by geographic location was as follows: | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||||||||||||||
U.S. | $ | 2,242,753 | $ | 2,254,790 | $ | 2,154,943 | ||||||||||||||||||
All other | 48,833 | 44,995 | 43,208 | |||||||||||||||||||||
Total revenue | $ | 2,291,586 | $ | 2,299,785 | $ | 2,198,151 | ||||||||||||||||||
Long-lived assets by geographic location were as follows: | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
Dollars in thousands | 2014 | 2013 | 2012 | |||||||||||||||||||||
U.S. | $ | 1,028,516 | $ | 1,141,299 | $ | 975,334 | ||||||||||||||||||
All other | 43,559 | 43,774 | 30,884 | |||||||||||||||||||||
Total long-lived assets | $ | 1,072,075 | $ | 1,185,073 | $ | 1,006,218 | ||||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on 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, 2014 | Level 1 | Level 2 | Level 3 | |||||||||
Money market demand accounts and investment grade fixed income securities | $ | 916 | $ | — | $ | — | ||||||
Fair Value at December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||
Money market demand accounts and investment grade fixed income securities | $ | 65,800 | $ | — | $ | — | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Capital Leased Assets | 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, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Gross property and equipment | $ | 41,336 | $ | 48,992 | ||||||||||||||||
Accumulated depreciation | (26,831 | ) | (28,489 | ) | ||||||||||||||||
Net property and equipment | $ | 14,505 | $ | 20,503 | ||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | As of December 31, 2014, our future minimum lease payments are as follows: | |||||||||||||||||||
Dollars in thousands | Capital Leases | Operating Leases(1) | ||||||||||||||||||
2015 | $ | 11,475 | $ | 18,527 | ||||||||||||||||
2016 | 3,110 | 13,617 | ||||||||||||||||||
2017 | 810 | 11,190 | ||||||||||||||||||
2018 | 311 | 8,808 | ||||||||||||||||||
2019 | 191 | 12,685 | ||||||||||||||||||
Thereafter | 102 | 8,172 | ||||||||||||||||||
Total minimum lease commitments | 15,999 | $ | 72,999 | |||||||||||||||||
Less: amounts representing interest | (608 | ) | ||||||||||||||||||
Present value of capital lease obligations | 15,391 | |||||||||||||||||||
Less: Current portion of capital lease obligations | (11,026 | ) | ||||||||||||||||||
Long-term portion of capital lease obligations | $ | 4,365 | ||||||||||||||||||
(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 | A summary of the estimated commitments in relation to these agreements as of December 31, 2014 is presented in the following table: | |||||||||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||||||||||
Total | 2015 | 2016 | ||||||||||||||||||
Lionsgate | $ | 128,479 | $ | 71,472 | $ | 57,007 | ||||||||||||||
Sony | 106,356 | 106,356 | — | |||||||||||||||||
Universal | 99,305 | 96,923 | 2,382 | |||||||||||||||||
Paramount | 98,773 | 98,773 | — | |||||||||||||||||
Fox | 39,600 | 39,600 | — | |||||||||||||||||
Warner | 3,559 | 3,559 | — | |||||||||||||||||
Total estimated commitments | $ | 476,072 | $ | 416,683 | $ | 59,389 | ||||||||||||||
Schedule of Estimated Revenue Share Commitments to Retailers | Our minimum commitments under these agreements are presented in the following table: | |||||||||||||||||||
Dollars in thousands | Years Ended December 31, | |||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
Redbox | $ | 6,627 | $ | 3,195 | $ | 2,616 | $ | 653 | $ | 163 | ||||||||||
Guarantor_Subsidiaries_Tables
Guarantor Subsidiaries (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Guarantor Subsidiaries Disclosure [Abstract] | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 180,889 | $ | 17,939 | $ | 43,868 | $ | — | $ | 242,696 | ||||||||||
Accounts receivable, net of allowances | 3,203 | 43,874 | 1,513 | — | 48,590 | |||||||||||||||
Content library | — | 176,490 | 3,631 | — | 180,121 | |||||||||||||||
Prepaid expenses and other current assets | 21,442 | 23,923 | 1,030 | (6,558 | ) | 39,837 | ||||||||||||||
Intercompany receivables | 40,762 | 467,181 | — | (507,943 | ) | — | ||||||||||||||
Total current assets | 246,296 | 729,407 | 50,042 | (514,501 | ) | 511,244 | ||||||||||||||
Property and equipment, net | 133,923 | 263,412 | 31,133 | — | 428,468 | |||||||||||||||
Deferred income taxes | — | — | 11,378 | — | 11,378 | |||||||||||||||
Goodwill and other intangible assets, net | 249,717 | 374,281 | — | — | 623,998 | |||||||||||||||
Other long-term assets | 6,665 | 1,231 | 335 | — | 8,231 | |||||||||||||||
Investment in related parties | 917,234 | (5,114 | ) | — | (912,120 | ) | — | |||||||||||||
Total assets | $ | 1,553,835 | $ | 1,363,217 | $ | 92,888 | $ | (1,426,621 | ) | $ | 1,583,319 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 12,899 | $ | 153,260 | $ | 2,474 | $ | — | $ | 168,633 | ||||||||||
Accrued payable to retailers | 69,189 | 42,977 | 14,124 | — | 126,290 | |||||||||||||||
Other accrued liabilities | 59,770 | 74,536 | 2,820 | — | 137,126 | |||||||||||||||
Current portion of long-term debt and other long-term liabilities | 20,020 | — | 396 | — | 20,416 | |||||||||||||||
Deferred income taxes | — | 27,961 | 29 | (6,558 | ) | 21,432 | ||||||||||||||
Intercompany payables | 309,932 | 121,015 | 76,996 | (507,943 | ) | — | ||||||||||||||
Total current liabilities | 471,810 | 419,749 | 96,839 | (514,501 | ) | 473,897 | ||||||||||||||
Long-term debt and other long-term liabilities | 949,588 | 22,946 | 1,135 | — | 973,669 | |||||||||||||||
Deferred income taxes | 35,058 | 3,288 | 29 | — | 38,375 | |||||||||||||||
Total liabilities | 1,456,456 | 445,983 | 98,003 | (514,501 | ) | 1,485,941 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 588,105 | 225,729 | 12,393 | (352,635 | ) | 473,592 | ||||||||||||||
Treasury stock | (996,293 | ) | — | — | — | (996,293 | ) | |||||||||||||
Retained earnings | 506,360 | 691,505 | (17,991 | ) | (559,485 | ) | 620,389 | |||||||||||||
Accumulated other comprehensive income (loss) | (793 | ) | — | 483 | — | (310 | ) | |||||||||||||
Total stockholders’ equity | 97,379 | 917,234 | (5,115 | ) | (912,120 | ) | 97,378 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,553,835 | $ | 1,363,217 | $ | 92,888 | $ | (1,426,621 | ) | $ | 1,583,319 | |||||||||
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 | |||||||||||||||
Prepaid expenses and other current assets | 67,664 | 28,234 | 960 | (12,149 | ) | 84,709 | ||||||||||||||
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, net | 251,150 | 387,540 | — | — | 638,690 | |||||||||||||||
Other long-term assets | 7,156 | 11,499 | 420 | — | 19,075 | |||||||||||||||
Investment in related parties | 815,243 | 4,825 | — | (820,068 | ) | — | ||||||||||||||
Total assets | $ | 1,802,376 | $ | 1,359,818 | $ | 101,986 | $ | (1,372,797 | ) | $ | 1,891,383 | |||||||||
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 portion of long-term debt and other long-term liabilities | 103,519 | 3 | 367 | — | 103,889 | |||||||||||||||
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 | 661,627 | 18,748 | 1,028 | — | 681,403 | |||||||||||||||
Deferred income taxes | 45,307 | 13,190 | — | 31 | 58,528 | |||||||||||||||
Total liabilities | 1,273,933 | 557,234 | 92,811 | (552,730 | ) | 1,371,248 | ||||||||||||||
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 income (loss) | (1,161 | ) | — | 394 | — | (767 | ) | |||||||||||||
Total stockholders’ equity | 526,997 | 802,584 | 9,175 | (820,067 | ) | 518,689 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,802,376 | $ | 1,359,818 | $ | 101,986 | $ | (1,372,797 | ) | $ | 1,891,383 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Revenue | $ | 266,848 | $ | 1,975,905 | $ | 48,833 | $ | — | $ | 2,291,586 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 142,472 | 1,415,542 | 23,707 | — | 1,581,721 | |||||||||||||||
Marketing | 7,227 | 27,631 | 435 | — | 35,293 | |||||||||||||||
Research and development | 3,456 | 9,591 | — | — | 13,047 | |||||||||||||||
General and administrative | 39,435 | 150,335 | 873 | — | 190,643 | |||||||||||||||
Depreciation and other | 35,155 | 148,217 | 4,452 | — | 187,824 | |||||||||||||||
Amortization of intangible assets | 1,433 | 13,221 | — | — | 14,654 | |||||||||||||||
Total expenses | 229,178 | 1,764,537 | 29,467 | — | 2,023,182 | |||||||||||||||
Operating income | 37,670 | 211,368 | 19,366 | — | 268,404 | |||||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Loss from equity method investments, net | (530 | ) | (28,204 | ) | — | — | (28,734 | ) | ||||||||||||
Interest income (expense), net | (48,007 | ) | 572 | (209 | ) | — | (47,644 | ) | ||||||||||||
Other, net | 14,077 | 1,334 | (16,596 | ) | — | (1,185 | ) | |||||||||||||
Total other income (expense), net | (34,460 | ) | (26,298 | ) | (16,805 | ) | — | (77,563 | ) | |||||||||||
Income from continuing operations before income taxes | 3,210 | 185,070 | 2,561 | — | 190,841 | |||||||||||||||
Income tax benefit (expense) | (618 | ) | (64,989 | ) | (557 | ) | — | (66,164 | ) | |||||||||||
Income from continuing operations | 2,592 | 120,081 | 2,004 | — | 124,677 | |||||||||||||||
Loss from discontinued operations, net of tax | (803 | ) | (874 | ) | (16,382 | ) | — | (18,059 | ) | |||||||||||
Equity in income (loss) of subsidiaries | 104,829 | (14,378 | ) | — | (90,451 | ) | — | |||||||||||||
Net income (loss) | 106,618 | 104,829 | (14,378 | ) | (90,451 | ) | 106,618 | |||||||||||||
Foreign currency translation adjustment(1) | 368 | — | 89 | — | 457 | |||||||||||||||
Comprehensive income (loss) | $ | 106,986 | $ | 104,829 | $ | (14,289 | ) | $ | (90,451 | ) | $ | 107,075 | ||||||||
-1 | Foreign currency translation adjustment had no tax effect in 2014. | |||||||||||||||||||
CONSOLIDATING 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 | $ | 44,995 | $ | — | $ | 2,299,785 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 138,859 | 1,394,932 | 36,155 | (12,947 | ) | 1,556,999 | ||||||||||||||
Marketing | 6,540 | 23,269 | 418 | — | 30,227 | |||||||||||||||
Research and development | 8,973 | 4,111 | (2 | ) | — | 13,082 | ||||||||||||||
General and administrative | 33,747 | 172,870 | 721 | 12,955 | 220,293 | |||||||||||||||
Depreciation and other | 28,101 | 157,292 | 4,008 | — | 189,401 | |||||||||||||||
Amortization of intangible assets | 2,245 | 8,662 | — | — | 10,907 | |||||||||||||||
Total expenses | 218,465 | 1,761,136 | 41,300 | 8 | 2,020,909 | |||||||||||||||
Operating income (loss) | 36,786 | 238,403 | 3,695 | (8 | ) | 278,876 | ||||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Income (loss) from equity method investments, net | 65,063 | (45,135 | ) | — | — | 19,928 | ||||||||||||||
Interest income (expense), net | (32,930 | ) | 257 | (134 | ) | — | (32,807 | ) | ||||||||||||
Other, net | (3,868 | ) | 479 | (218 | ) | 8 | (3,599 | ) | ||||||||||||
Total other income (expense), net | 28,265 | (44,399 | ) | (352 | ) | 8 | (16,478 | ) | ||||||||||||
Income from continuing operations before income taxes | 65,051 | 194,004 | 3,343 | — | 262,398 | |||||||||||||||
Income tax benefit (expense) | 30,893 | (70,577 | ) | (26 | ) | — | (39,710 | ) | ||||||||||||
Income from continuing operations | 95,944 | 123,427 | 3,317 | — | 222,688 | |||||||||||||||
Loss from discontinued operations, net of tax | (30,834 | ) | (2,708 | ) | (14,354 | ) | — | (47,896 | ) | |||||||||||
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. | |||||||||||||||||||
CONSOLIDATING 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 | $ | 43,208 | $ | — | $ | 2,198,151 | ||||||||||
Expenses: | ||||||||||||||||||||
Direct operating | 137,092 | 1,334,227 | 39,541 | (18,338 | ) | 1,492,522 | ||||||||||||||
Marketing | 5,020 | 18,676 | 461 | — | 24,157 | |||||||||||||||
Research and development | 6,018 | 739 | — | — | 6,757 | |||||||||||||||
General and administrative | 23,442 | 161,264 | 494 | 18,332 | 203,532 | |||||||||||||||
Depreciation and other | 30,716 | 144,341 | 3,276 | — | 178,333 | |||||||||||||||
Amortization of intangible assets | 2,346 | 3,011 | — | — | 5,357 | |||||||||||||||
Total expenses | 204,634 | 1,662,258 | 43,772 | (6 | ) | 1,910,658 | ||||||||||||||
Operating income (loss) | 43,272 | 244,779 | (564 | ) | 6 | 287,493 | ||||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Loss from equity method investments, net | (2,179 | ) | (3,005 | ) | — | — | (5,184 | ) | ||||||||||||
Interest income (expense), net | (18,161 | ) | 2,554 | (33 | ) | — | (15,640 | ) | ||||||||||||
Other, net | 98 | (264 | ) | 17 | (6 | ) | (155 | ) | ||||||||||||
Total other income (expense), net | (20,242 | ) | (715 | ) | (16 | ) | (6 | ) | (20,979 | ) | ||||||||||
Income (loss) from continuing operations before income taxes | 23,030 | 244,064 | (580 | ) | — | 266,514 | ||||||||||||||
Income tax expense | (5,518 | ) | (94,138 | ) | (555 | ) | — | (100,211 | ) | |||||||||||
Income (loss) from continuing operations | 17,512 | 149,926 | (1,135 | ) | — | 166,303 | ||||||||||||||
Loss from discontinued operations, net of tax | (8,609 | ) | (2,244 | ) | (5,220 | ) | — | (16,073 | ) | |||||||||||
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. | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
(in thousands) | Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | |||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income (loss) | $ | 106,618 | $ | 104,829 | $ | (14,378 | ) | $ | (90,451 | ) | $ | 106,618 | ||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||||||||||||||||
Depreciation and other | 35,139 | 150,904 | 9,119 | — | 195,162 | |||||||||||||||
Amortization of intangible assets | 1,433 | 13,259 | — | — | 14,692 | |||||||||||||||
Share-based payments expense | 9,693 | 3,691 | — | — | 13,384 | |||||||||||||||
Windfall excess tax benefits related to share-based payments | (1,964 | ) | — | — | — | (1,964 | ) | |||||||||||||
Deferred income taxes | 304 | (17,232 | ) | (5,683 | ) | — | (22,611 | ) | ||||||||||||
Loss from equity method investments, net | 530 | 28,204 | — | — | 28,734 | |||||||||||||||
Amortization of deferred financing fees and debt discount | 4,116 | — | — | — | 4,116 | |||||||||||||||
Loss from early extinguishment of debt | 2,018 | — | — | — | 2,018 | |||||||||||||||
Other | (1,250 | ) | (548 | ) | 48 | — | (1,750 | ) | ||||||||||||
Equity in (income) losses of subsidiaries | (104,829 | ) | 14,378 | — | 90,451 | — | ||||||||||||||
Cash flows from changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | (1,130 | ) | 8,787 | 1,014 | — | 8,671 | ||||||||||||||
Content library | 36 | 20,206 | (495 | ) | — | 19,747 | ||||||||||||||
Prepaid expenses and other current assets | 40,826 | 3,753 | (297 | ) | — | 44,282 | ||||||||||||||
Other assets | 75 | 1,558 | 69 | — | 1,702 | |||||||||||||||
Accounts payable | (3,017 | ) | (65,737 | ) | (158 | ) | — | (68,912 | ) | |||||||||||
Accrued payable to retailers | (1,896 | ) | (5,149 | ) | 198 | — | (6,847 | ) | ||||||||||||
Other accrued liabilities | (840 | ) | 1,988 | 161 | — | 1,309 | ||||||||||||||
Net cash flows from (used in) operating activities(1) | 85,862 | 262,891 | (10,402 | ) | — | 338,351 | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (33,602 | ) | (57,909 | ) | (6,413 | ) | — | (97,924 | ) | |||||||||||
Proceeds from sale of property and equipment | 750 | 1,227 | — | — | 1,977 | |||||||||||||||
Cash paid for equity investments | — | (24,500 | ) | — | — | (24,500 | ) | |||||||||||||
Extinguishment payment received from equity investment | — | 5,000 | — | — | 5,000 | |||||||||||||||
Investments in and advances to affiliates | 166,145 | (178,406 | ) | 12,261 | — | — | ||||||||||||||
Net cash flows from (used in) investing activities(1) | 133,293 | (254,588 | ) | 5,848 | — | (115,447 | ) | |||||||||||||
Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of senior unsecured notes | 295,500 | — | — | — | 295,500 | |||||||||||||||
Proceeds from new borrowing of Credit Facility | 642,000 | — | — | — | 642,000 | |||||||||||||||
Principal payments on Credit Facility | (680,125 | ) | — | — | — | (680,125 | ) | |||||||||||||
Financing costs associated with Credit Facility and senior unsecured notes | (2,911 | ) | — | — | — | (2,911 | ) | |||||||||||||
Settlement and conversion of convertible debt | (51,149 | ) | — | — | — | (51,149 | ) | |||||||||||||
Repurchases of common stock | (545,091 | ) | — | — | — | (545,091 | ) | |||||||||||||
Principal payments on capital lease obligations and other debt | (13,552 | ) | (3 | ) | (441 | ) | — | (13,996 | ) | |||||||||||
Windfall excess tax benefits related to share-based payments | 1,964 | — | — | — | 1,964 | |||||||||||||||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | (520 | ) | — | — | — | (520 | ) | |||||||||||||
Net cash flows from (used in) financing activities(1) | (353,884 | ) | (3 | ) | (441 | ) | — | (354,328 | ) | |||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | ||||||||||||||||
Effect of exchange rate changes on cash | 368 | — | 2,315 | — | 2,683 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | (134,361 | ) | 8,300 | (2,680 | ) | — | (128,741 | ) | ||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Beginning of period | 315,250 | 9,639 | 46,548 | — | 371,437 | |||||||||||||||
End of period | $ | 180,889 | $ | 17,939 | $ | 43,868 | $ | — | $ | 242,696 | ||||||||||
-1 | During the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, 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. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. | |||||||||||||||||||
CONSOLIDATING 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 (loss) | $ | 174,792 | $ | 109,682 | $ | (11,037 | ) | $ | (98,645 | ) | $ | 174,792 | ||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||||||||||||||||
Depreciation and other | 29,640 | 158,801 | 5,259 | — | 193,700 | |||||||||||||||
Amortization of intangible assets | 2,245 | 8,688 | — | — | 10,933 | |||||||||||||||
Share-based payments expense | 9,903 | 6,928 | — | — | 16,831 | |||||||||||||||
Windfall excess tax benefits related to share-based payments | (3,698 | ) | — | — | — | (3,698 | ) | |||||||||||||
Deferred income taxes | 9,228 | (15,727 | ) | (4,434 | ) | — | (10,933 | ) | ||||||||||||
Impairment Expense | 32,444 | 288 | — | — | 32,732 | |||||||||||||||
Loss (income) from equity method investments, net | (65,063 | ) | 45,135 | — | — | (19,928 | ) | |||||||||||||
Amortization of deferred financing fees and debt discount | 6,394 | — | — | — | 6,394 | |||||||||||||||
Loss from early extinguishment of 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 | (408 | ) | 226 | 354 | 1,491 | ||||||||||||||
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 (used in) operating activities(1) | 57,753 | 281,757 | (12,084 | ) | 408 | 327,834 | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (58,763 | ) | (88,431 | ) | (14,218 | ) | — | (161,412 | ) | |||||||||||
Proceeds from sale of property and equipment | 12,147 | 1,189 | 8 | — | 13,344 | |||||||||||||||
Acquisition of ecoATM, net of cash acquired | (244,036 | ) | — | — | — | (244,036 | ) | |||||||||||||
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 (used in) investing activities(1) | (141,883 | ) | (271,901 | ) | 16,647 | (54 | ) | (397,191 | ) | |||||||||||
Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of senior unsecured notes | 343,769 | — | — | — | 343,769 | |||||||||||||||
Proceeds from new borrowing on 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 | ) | |||||||||||||
Conversion 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 | ) | |||||||||||
Windfall excess tax benefits related to share-based payments | 3,698 | — | — | — | 3,698 | |||||||||||||||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | 8,460 | — | — | — | 8,460 | |||||||||||||||
Net cash flows from (used in) financing activities(1) | 156,996 | (217 | ) | (417 | ) | — | 156,362 | |||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Outerwall Inc. | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations and Consolidation Reclassifications | Total | ||||||||||||||||
Effect of exchange rate changes on cash | (105 | ) | — | 1,643 | — | 1,538 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 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 the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, 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. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. | |||||||||||||||||||
CONSOLIDATING 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 | 2,346 | 3,032 | — | — | 5,378 | |||||||||||||||
Share-based payments expense | 10,998 | 8,364 | — | — | 19,362 | |||||||||||||||
Windfall excess tax benefits related to 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 | |||||||||||||||
Amortization of deferred financing fees and debt discount | 9,235 | — | — | — | 9,235 | |||||||||||||||
Loss from early extinguishment of debt | 953 | — | — | — | 953 | |||||||||||||||
Other | (2,343 | ) | (2,720 | ) | 10 | — | (5,053 | ) | ||||||||||||
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 | 57,527 | 1,946 | (184 | ) | 60,104 | ||||||||||||||
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 | 390,670 | (4,289 | ) | (184 | ) | 465,762 | |||||||||||||
Investing Activities: | ||||||||||||||||||||
Purchases of property and equipment | (64,423 | ) | (132,528 | ) | (12,959 | ) | — | (209,910 | ) | |||||||||||
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 | (382,868 | ) | 12,370 | — | (348,506 | ) | |||||||||||||
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 | ) | |||||||||||
Windfall 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 the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, 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. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. |
Organization_and_Business_Deta
Organization and Business (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 23, 2013 | |
Locations | ||||
Kiosk | ||||
Proceeds from the exercise of stock options | $3,735,000 | $12,655,000 | $8,263,000 | |
Goodwill | 559,307,000 | 559,307,000 | ||
Kiosks | 65,600 | |||
Locations | 56,740 | |||
Other Segments [Member] | ||||
Kiosks | 90 | |||
Locations | 90 | |||
Redbox [Member] | ||||
Goodwill | 138,743,000 | 138,743,000 | ||
Kiosks | 42,280 | |||
Locations | 34,740 | |||
Coinstar [Member] | ||||
Goodwill | 156,351,000 | 156,351,000 | ||
Kiosks | 21,340 | |||
Locations | 20,250 | |||
ecoATM [Member] | ||||
Kiosks | 1,890 | |||
Locations | 1,660 | |||
ecoATM [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 77.00% | |||
Payments to Acquire Businesses, Gross | 262,900,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 23,200,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 41,400,000 | |||
Goodwill | $264,200,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2009 | ||||
Quantity | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Convertible Debt | $200,000 | ||||||||
Deferred revenue | 6,995,000 | 4,323,000 | |||||||
Cash and cash equivalents | 242,696,000 | 371,437,000 | 282,894,000 | 341,855,000 | |||||
Reduction in product cost, reported in direct operating expenses, resulting from change in accounting estimate | -1,581,721,000 | [1] | -1,556,999,000 | [1] | -1,492,522,000 | [1] | |||
Repayments of Convertible Debt | 51,149,000 | 172,211,000 | 20,575,000 | ||||||
Gains (Losses) on Extinguishment of Debt | -2,018,000 | -6,013,000 | -953,000 | ||||||
Earnings Per Share, Basic | $5.28 | $6.42 | $4.96 | ||||||
Earnings Per Share, Diluted | $5.15 | $6.16 | $4.67 | ||||||
Advertising Expense | 11,100,000 | 11,800,000 | 11,700,000 | ||||||
Cash Equivalents, at Carrying Value | 900,000 | 65,800,000 | |||||||
Cash Identified For Settling Accrued Payable To Retailer Partners | 81,700,000 | 85,500,000 | |||||||
Number Of Convertible Senior Note Repurchased | 51,148 | ||||||||
Content library, period of amortization | 1 year | ||||||||
Change in Accounting Method Accounted for as Change in Estimate [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Reduction in product cost, reported in direct operating expenses, resulting from change in accounting estimate | 31,800,000 | 21,700,000 | |||||||
Earnings Per Share, Basic | $1.17 | ||||||||
Earnings Per Share, Diluted | $1.12 | ||||||||
Convertible Notes | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Interest rate, per year | 4.00% | 4.00% | |||||||
Repayments of Convertible Debt | 51,100,000 | ||||||||
Gains (Losses) on Extinguishment of Debt | -300,000 | ||||||||
Common Stock [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Conversion of debt, issuance of common stock (shares) | 431,760 | 272,336 | |||||||
UNITED STATES | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Cash and cash equivalents | 66,500,000 | 199,000,000 | |||||||
Foreign Geographical Area [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Cash and cash equivalents | 11,600,000 | 15,200,000 | |||||||
Play Pass [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Deferred revenue | $1,500,000 | ||||||||
Coin Counting Kiosks [Member] | Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 2 years | ||||||||
Coin Counting Kiosks [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||||
Redbox Kiosks [Member] | Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||||
Redbox Kiosks [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||
ecoATM Kiosks [Member] [Member] | Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||
ecoATM Kiosks [Member] [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||
Computer Equipment [Member] | Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||||
Computer Equipment [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||
Office Equipment [Member] | Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||
Office Equipment [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||||
Leased Vehicles [Member] | Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||||
Leased Vehicles [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 6 years | ||||||||
Leasehold Improvements [Member] | Minimum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 1 year | ||||||||
Leasehold Improvements [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 11 years | ||||||||
[1] | “Direct operating†excludes depreciation and other of $125.7 million, $129.1 million and $127.0 million for 2014, 2013 and 2012, respectively. |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Schedule of Error Corrections and Prior Period Adjustments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts payable | ($68,912) | $1,491 | $60,104 |
Net cash flows from operating activities | 327,834 | 465,762 | |
Payments to Acquire Property, Plant, and Equipment | -97,924 | -161,412 | -209,910 |
Net cash flows from investing activities | -397,191 | -348,506 | |
Capital Expenditures Incurred but Not yet Paid | 8,255 | 6,656 | 25,706 |
Scenario, Previously Reported [Member] | |||
Accounts payable | -2,252 | 58,248 | |
Net cash flows from operating activities | 324,091 | 463,906 | |
Payments to Acquire Property, Plant, and Equipment | -157,669 | -208,054 | |
Net cash flows from investing activities | -393,448 | -346,650 | |
Capital Expenditures Incurred but Not yet Paid | 12,254 | 27,562 | |
Restatement Adjustment [Member] | |||
Accounts payable | 3,743 | 1,856 | |
Net cash flows from operating activities | 3,743 | 1,856 | |
Payments to Acquire Property, Plant, and Equipment | -3,743 | -1,856 | |
Net cash flows from investing activities | -3,743 | -1,856 | |
Capital Expenditures Incurred but Not yet Paid | ($5,598) | ($1,856) |
Property_and_Equipment_Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Kiosks and components | $1,165,925 | $1,105,761 |
Computers, servers, and software | 200,915 | 226,389 |
Office furniture and equipment | 9,218 | 7,260 |
Vehicles | 6,234 | 6,553 |
Leasehold improvements | 29,625 | 23,198 |
Property and equipment, at cost | 1,411,917 | 1,369,161 |
Accumulated depreciation and amortization | -983,449 | -848,296 |
Property and equipment, net | $428,468 | $520,865 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Goodwill) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $559,307 | $559,307 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets Disclosure - Goodwill and Other Intangible Assets (Goodwill by Segment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ||
Goodwill | $559,307 | $559,307 |
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 | $264,213 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $64,691 | $79,383 | |
Amortization of intangible assets | 14,654 | 10,907 | 5,357 |
Retailer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 53,295 | 53,295 | |
Intangible assets, accumulated amortization | -23,200 | -17,768 | |
Intangible assets, net | 30,095 | 35,527 | |
Amortization of intangible assets | 5,432 | 6,250 | 4,456 |
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 | 34,000 | |
Intangible assets, accumulated amortization | -9,633 | -2,833 | |
Intangible assets, net | 24,367 | 31,167 | |
Amortization of intangible assets | 6,800 | 2,833 | 0 |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 16,800 | 16,800 | |
Intangible assets, accumulated amortization | -6,571 | -4,111 | |
Intangible assets, net | 10,229 | 12,689 | |
Amortization of intangible assets | $2,460 | $1,850 | $922 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $14,654 | $10,907 | $5,357 |
Amortization of Intangible Assets Including Discontinued Operations | 14,692 | 10,933 | 5,378 |
Disposal Group, Including Discontinued Operation, Amortization | -38 | -26 | -21 |
Retailer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 5,432 | 6,250 | 4,456 |
Developed technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 6,800 | 2,833 | 0 |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $2,460 | $1,850 | $922 |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible Assets (Expected Future Amortization) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | $13,219 | |
2016 | 13,119 | |
2017 | 13,097 | |
2018 | 9,643 | |
2019 | 4,813 | |
Thereafter | 10,800 | |
Intangible assets, net | 64,691 | 79,383 |
Retailer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | 4,012 | |
2016 | 4,012 | |
2017 | 4,012 | |
2018 | 4,012 | |
2019 | 4,012 | |
Thereafter | 10,035 | |
Intangible assets, net | 30,095 | 35,527 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | 6,800 | |
2016 | 6,800 | |
2017 | 6,800 | |
2018 | 3,967 | |
2019 | 0 | |
Thereafter | 0 | |
Intangible assets, net | 24,367 | 31,167 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | 2,407 | |
2016 | 2,307 | |
2017 | 2,285 | |
2018 | 1,664 | |
2019 | 801 | |
Thereafter | 765 | |
Intangible assets, net | $10,229 | $12,689 |
Equity_Method_Investments_and_2
Equity Method Investments and Related Party Transactions (Capital Contributions) (Details) (Redbox Instant By Verizon [Member], USD $) | 1 Months Ended | 12 Months Ended | 36 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Redbox Instant By Verizon [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash Contributions | $14,000 | $24,500 | $28,000 | $24,500 | $77,000 |
Equity_Method_Investments_and_3
Equity Method Investments and Related Party Transactions (Equity Investments and Ownership Percentages) (Details) (USD $) | Feb. 29, 2012 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Redbox Instant By Verizon [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership Percentage | 35.00% | |
SoloHealth [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $1.50 | |
Ownership Percentage | 10.00% |
Equity_Method_Investments_and_4
Equity Method Investments and Related Party Transactions (Schedule of Income (Loss) From Equity Method Investments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||
Nonmonetary Transaction, Gain (Loss) Recognized on Transfer | $0 | $0 | $19,500 |
Gain on previously held equity interest in ecoATM | 0 | 68,376 | 0 |
Proportionate share of net loss of equity method investees | -26,323 | -45,973 | -22,415 |
Amortization of difference in carrying amount and underlying equity in Joint Venture | -2,411 | -2,475 | -2,269 |
Total income (loss) from equity method investments | -28,734 | 19,928 | -5,184 |
Redbox Instant By Verizon [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Proportionate share of net loss of equity method investees | -25,793 | -42,660 | -20,236 |
Other Equity Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Proportionate share of net loss of equity method investees | ($530) | ($3,313) | ($2,179) |
Equity_Method_Investments_and_5
Equity Method Investments and Related Party Transactions (Proportionate Share of Joint Venture Summarized Financial Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenue | $29,963 | $15,824 | $2,067 |
Cost of sales and service | 68,732 | 25,092 | 10,716 |
Net loss and loss from continuing operations | $140,919 | $134,911 | $58,510 |
Equity_Method_Investments_and_6
Equity Method Investments and Related Party Transactions (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 36 Months Ended | ||
Feb. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Extinguishment payment | $16,800,000 | ||||
Reimbursement of Expenses | 11,800,000 | ||||
Payments for (Proceeds from) Other Investing Activities | -5,000,000 | 0 | 0 | ||
Redbox Instant By Verizon [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Percentage | 35.00% | ||||
Payments to Acquire Interest in Joint Venture | 14,000,000 | 24,500,000 | 28,000,000 | 24,500,000 | 77,000,000 |
Due from related parties | $5,900,000 |
Equity_Method_Investments_and_7
Equity Method Investments and Related Party Transactions Disclosure - Equity Method Investments and Related Party Transactions (Summarized Financial Information of Equity Method Investees) (Details) (USD $) | Dec. 31, 2014 | Oct. 20, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | |||||
Equity Method Investments and Joint Ventures [Abstract] | |||||
Equity Method Investment, Summarized Financial Information, Current Assets | $3,408 | [1] | $9,095 | [2] | $32,832 |
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 20,376 | [1] | 3,053 | [2] | 30,765 |
Equity Method Investment, Summarized Financial Information, Current Liabilities | 7,321 | [1] | 86,735 | [2] | 46,706 |
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 18,754 | [1] | 0 | [2] | 23,905 |
Equity Method Investment, Summarized Financial Information, Redeemable Preferred Stock | $23,734 | [1] | $0 | [2] | $23,542 |
[1] | Represents SoloHealth only | ||||
[2] | Represents the Joint Venture only |
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, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets and Other Liabilities Disclosure [Abstract] | ||
Spare parts | $13,643 | $18,975 |
Licenses | 5,881 | 4,568 |
Electronic devices inventory | 5,259 | 3,529 |
Income taxes receivable | 1,446 | 1,302 |
DVD cases and labels | 1,330 | 2,596 |
Income taxes receivable | 113 | 37,466 |
Other | 12,165 | 16,273 |
Total prepaid and other current assets | $39,837 | $84,709 |
Prepaid_Expenses_and_Other_Cur3
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities (Schedule of Other Accrued Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets and Other Liabilities Disclosure [Abstract] | ||
Payroll related expenses | $33,343 | $33,852 |
Accrued content library expense | 23,226 | 21,602 |
Business taxes | 21,629 | 22,939 |
Insurance | 9,615 | 13,379 |
Deferred revenue | 6,995 | 4,323 |
Accrued interest expense | 6,974 | 7,015 |
Deferred rent expense | 6,162 | 5,713 |
Service contract provider expenses | 4,191 | 8,134 |
Other | 24,991 | 17,170 |
Total other accrued liabilities | $137,126 | $134,127 |
Debt_and_Other_LongTerm_Liabil2
Debt and Other Long-Term Liabilities (Schedule Of Debt And Other Long-Term Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | ||||
Debt | ||||
Principal | $956,250 | $745,523 | ||
Discount | -8,783 | -6,763 | ||
Total | 947,467 | 738,760 | ||
Less: current portion | -9,390 | -91,889 | ||
Total long-term portion | 938,077 | 646,871 | ||
Other Liabilities | ||||
Capital Lease Obligations | 15,391 | 21,361 | ||
Capital Lease Obligations, Current | -11,026 | -11,997 | ||
Capital Lease Obligations, Noncurrent | 4,365 | 9,364 | ||
Asset retirement obligations | 13,576 | 13,086 | ||
Asset Retirement Obligation, Current | 0 | 0 | ||
Asset Retirement Obligations, Noncurrent | 13,576 | 13,086 | ||
Other long-term liabilities | 17,651 | 12,085 | ||
Other Long-term Liabilities, Current | 0 | -3 | ||
Other Long-term Liabilities, Noncurrent | 17,651 | 12,082 | ||
Long Term Debt And Other Long Term Liabilities | 994,085 | 785,292 | ||
Current portion of long-term debt and other long-term liabilities | -20,416 | -103,889 | ||
Long Term Debt And Other Liabilities Noncurrent | 973,669 | 681,403 | ||
Unamortized deferred financing fees | 4,986 | 5,026 | [1] | |
Senior Notes | Senior Unsecured Notes due 2019 | ||||
Debt | ||||
Principal | 350,000 | 350,000 | ||
Discount | -4,296 | -5,317 | ||
Total | 345,704 | 344,683 | ||
Less: current portion | 0 | 0 | ||
Total long-term portion | 345,704 | 344,683 | ||
Other Liabilities | ||||
Unamortized deferred financing fees | 649 | 832 | [1] | |
Senior Notes | Senior Unsecured Notes due 2021 | ||||
Debt | ||||
Principal | 300,000 | |||
Discount | -4,152 | -4,500 | ||
Total | 295,848 | |||
Less: current portion | 0 | |||
Total long-term portion | 295,848 | |||
Other Liabilities | ||||
Unamortized deferred financing fees | 1,372 | |||
Convertible Notes | ||||
Debt | ||||
Principal | 51,148 | |||
Discount | -1,446 | |||
Total | 49,702 | |||
Less: current portion | -49,702 | |||
Total long-term portion | 0 | |||
Other Liabilities | ||||
Unamortized deferred financing fees | 186 | [1] | ||
Term Loans | Credit Facility | ||||
Debt | ||||
Principal | 146,250 | 344,375 | ||
Discount | -335 | 0 | ||
Total | 145,915 | 344,375 | ||
Less: current portion | -9,390 | -42,187 | ||
Total long-term portion | 136,525 | 302,188 | ||
Other Liabilities | ||||
Unamortized deferred financing fees | 0 | 1,259 | [1] | |
Revolving Line of Credit | Credit Facility | ||||
Debt | ||||
Principal | 160,000 | 0 | ||
Discount | 0 | 0 | ||
Total | 160,000 | 0 | ||
Less: current portion | 0 | 0 | ||
Total long-term portion | 160,000 | 0 | ||
Other Liabilities | ||||
Unamortized deferred financing fees | $2,965 | $2,749 | [1] | |
[1] | Deferred financing fees are recorded in other long-term assets in our Consolidated Balance Sheets and are amortized on a straight line basis over the life of the related loan. |
Debt_and_Other_LongTerm_Liabil3
Debt and Other Long-Term Liabilities (Schedule Of Interest Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term Debt, Unclassified [Abstract] | |||
Cash interest expense | $41,562 | $25,289 | $12,833 |
Non-cash interest expense: | |||
Amortization of debt discount | 2,606 | 4,674 | 7,109 |
Amortization of deferred financing fees | 1,510 | 1,720 | 2,126 |
Other | 0 | -550 | -2,700 |
Total non-cash interest expense | 4,116 | 5,844 | 6,535 |
Total cash and non-cash interest expense | 45,678 | 31,133 | 19,368 |
Loss from early extinguishment of debt | 2,018 | 6,013 | 953 |
Total interest expense | $47,696 | $37,146 | $20,321 |
Debt_and_Other_LongTerm_Liabil4
Debt and Other Long-Term Liabilities (Schedule of Maturities of Long-term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ||
Total | $956,250 | $745,523 |
Credit Facility | Term Loans | ||
Line of Credit Facility [Line Items] | ||
2015 | 9,376 | |
2016 | 13,126 | |
2017 | 15,000 | |
2018 | 18,750 | |
2019 | 89,998 | |
Total | $146,250 | $344,375 |
Debt_and_Other_LongTerm_Liabil5
Debt and Other Long-Term Liabilities (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 12, 2013 | Jun. 09, 2014 | Dec. 31, 2014 | Sep. 30, 2009 | |
Quantity | |||||||
Debt Instrument [Line Items] | |||||||
Cash interest expense | $41,562,000 | $25,289,000 | $12,833,000 | ||||
Proceeds from issuance of senior unsecured notes | 295,500,000 | 343,769,000 | 0 | ||||
Loss on extinguishment of debt | 2,018,000 | 6,013,000 | 953,000 | ||||
Debt outstanding | 956,250,000 | 745,523,000 | 956,250,000 | ||||
Number of notes retired | 51,148 | ||||||
Conversion of debt, cash | 51,149,000 | 172,211,000 | 20,575,000 | ||||
Senior Notes | Original Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount of debt | 350,000,000 | ||||||
Interest rate, per year | 6.00% | ||||||
Proceeds from issuance of senior unsecured notes | 343,800,000 | ||||||
Senior Notes | Senior Unsecured Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, per year | 5.88% | ||||||
Proceeds from issuance of senior unsecured notes | 294,000,000 | ||||||
Percentage of principal amount of notes required to be offered to purchase the Notes upon a change in control | 101.00% | 101.00% | |||||
Percentage of principal amount of notes required to be offered to purchase the Notes if certain asset sales are made | 100.00% | 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% | 25.00% | |||||
Additional interest payable, per annum, following a registration default, percentage | 0.25% | 0.25% | |||||
Maximum additional interest payable, per annum, following a registration default, percentage | 1.00% | 1.00% | |||||
Debt outstanding | 300,000,000 | 300,000,000 | |||||
Credit Facility | Federal Funds Effective Swap Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate | 0.50% | ||||||
Stated interest rate, minimum | 0.25% | ||||||
Stated interest rate, maximum | 1.00% | ||||||
Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate | 1.00% | ||||||
Stated interest rate, minimum | 1.25% | ||||||
Stated interest rate, maximum | 2.00% | ||||||
Convertible Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, per year | 4.00% | 4.00% | 4.00% | ||||
Loss on extinguishment of debt | 300,000 | ||||||
Debt outstanding | 51,148,000 | ||||||
Conversion of debt, cash | 51,100,000 | ||||||
Period, June 15, 2017 To June 14, 2018 [Member] | Senior Notes | Senior Unsecured Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption rate | 104.41% | 104.41% | |||||
Period, June 9, 2014 To June 14, 2017 [Member] | Senior Notes | Senior Unsecured Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum aggregate principal amount of notes redeemable | 35.00% | 35.00% | |||||
Minimum aggregate principal amount of Notes outstanding after redemption | 65.00% | 65.00% | |||||
Period, June 15, 2018 To June 14, 2019 [Member] | Senior Notes | Senior Unsecured Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption rate | 102.94% | 102.94% | |||||
Period, June 15, 2019 To June 14, 2020 [Member] | Senior Notes | Senior Unsecured Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption rate | 101.47% | 101.47% | |||||
Period, June 15, 2020 To June 15, 2021 [Member] | Senior Notes | Senior Unsecured Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption rate | 100.00% | 100.00% | |||||
Revolving Line of Credit | Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | 1,700,000 | ||||||
Line of credit facility, maximum borrowing capacity | 600,000,000 | 600,000,000 | |||||
Sublimit for issuance of letters of credit | 75,000,000 | 75,000,000 | |||||
Sublimit for swingline loans | 50,000,000 | 50,000,000 | |||||
Sublimit for loans in certain foreign countries | 75,000,000 | 75,000,000 | |||||
Line of credit facility, option to increase borrowing capacity | 200,000,000 | 200,000,000 | |||||
Debt outstanding | 160,000,000 | 0 | 160,000,000 | ||||
Term Loans | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate on amounts outstanding under the credit facility | 1.92% | 1.92% | |||||
Term Loans | Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 150,000,000 | 150,000,000 | |||||
Debt outstanding | $146,250,000 | $344,375,000 | 146,250,000 | ||||
Common Stock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Conversion of debt, issuance of common stock (shares) | 431,760 | 272,336 | |||||
Scenario One [Member] | Period, June 9, 2014 To June 14, 2017 [Member] | Senior Notes | Senior Unsecured Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption rate | 100.00% | 100.00% | |||||
Scenario Two [Member] | Period, June 9, 2014 To June 14, 2017 [Member] | Senior Notes | Senior Unsecured Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption rate | 105.88% | 105.88% |
Debt_and_Other_LongTerm_Liabil6
Debt and Other Long-Term Liabilities Disclosure - Debt and Other Long-Term Liabilities (Schedule of Other Long-Term Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Other Long Term Debt Related To Tenant Improvements And Deferred Rent | $13,013 | $9,301 |
Unrecognized tax benefits net | 4,638 | 2,781 |
Deferred Credits and Other Liabilities, Noncurrent | $17,651 | $12,082 |
Repurchases_of_Common_Stock_Su
Repurchases of Common Stock (Summary Of Authorized Stock Repurchases) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 30, 2014 | ||||
Accelerated Share Repurchases [Line Items] | |||||||
Repurchase of common stock (in shares) | 7,925,227 | 3,306,433 | 2,799,115 | ||||
Summary Of Authorized Stock Repurchases [Roll Forward] | |||||||
Authorized repurchase - as of January 1, 2014 | $201,291,000 | [1] | |||||
Repurchases of common stock | -545,140,000 | -195,004,000 | -139,724,000 | ||||
Authorized repurchase | 163,655,000 | [1] | 201,291,000 | [1] | |||
Open Market Share Repurchase [Member] | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Repurchase of common stock (in shares) | 2,633,526 | ||||||
Summary Of Authorized Stock Repurchases [Roll Forward] | |||||||
Additional board authorization | 500,000,000 | [1] | |||||
Repurchases of common stock | -170,582,000 | ||||||
Tender Offer [Member] | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Repurchase of common stock (in shares) | 5,291,701 | [2] | |||||
Summary Of Authorized Stock Repurchases [Roll Forward] | |||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased, Option to Increase Repurchase Amount, Percentage of Outstanding Shares | 2.00% | ||||||
Additional board authorization | 350,000,000 | ||||||
Repurchases of common stock | ($370,789,000) | [2] | |||||
[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. | ||||||
[2] | Fees and expenses totaling $3.7 million associated with the tender offer do not impact the repurchase program approved by our Board, are excluded from the total purchase price shown here and were recorded as part of the cost of treasury stock in our Consolidated Balance Sheets. |
Repurchases_of_Common_Stock_Su1
Repurchases of Common Stock (Summary of Stock Repurchases During the Year) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Class of Stock Disclosures [Abstract] | |||
Repurchase of common stock (in shares) | 7,925,227 | 3,306,433 | 2,799,115 |
Repurchase of common stock | ($545,140) | ($195,004) | ($139,724) |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accelerated Share Repurchases [Line Items] | ||||
Total shares delivered from DSB Agreement | 7,925,227 | 3,306,433 | 2,799,115 | |
Treasury Stock Acquired, Average Cost Per Share | $68.31 | $58.98 | $49.92 | |
Repurchases of common stock | $545,140 | $195,004 | $139,724 | |
Treasury Stock Shares Acquired Three Years | 14,030,775 | |||
Treasury Stock Acquired, Average Cost Per Share Three Years | $62.44 | |||
Treasury Stock Value Acquired Cost Method Three Years | 876,099 | |||
Open Market Share Repurchase [Member] | ||||
Accelerated Share Repurchases [Line Items] | ||||
Total shares delivered from DSB Agreement | 2,633,526 | |||
Treasury Stock Acquired, Average Cost Per Share | $64.77 | |||
Repurchases of common stock | 170,582 | |||
Tender Offer [Member] | ||||
Accelerated Share Repurchases [Line Items] | ||||
Total shares delivered from DSB Agreement | 5,291,701 | [1] | ||
Treasury Stock Acquired, Average Cost Per Share | $70.07 | [1] | ||
Repurchases of common stock | $370,789 | [1] | ||
[1] | Fees and expenses totaling $3.7 million associated with the tender offer do not impact the repurchase program approved by our Board, are excluded from the total purchase price shown here and were recorded as part of the cost of treasury stock in our Consolidated Balance Sheets. |
Repurchases_of_Common_Stock_Na
Repurchases of Common Stock (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 30, 2014 | |||
Accelerated Share Repurchases [Line Items] | ||||||
Treasury Stock Acquired, Average Cost Per Share Three Years | $62.44 | |||||
Repurchases of common stock (in shares) | 7,925,227 | 3,306,433 | 2,799,115 | |||
Treasury Stock Acquired, Average Cost Per Share | $68.31 | $58.98 | $49.92 | |||
Treasury Stock, Value, Acquired, Excluding Fees | $541,371,000 | |||||
Repurchases of common stock | 545,140,000 | 195,004,000 | 139,724,000 | |||
Open Market Share Repurchase [Member] | ||||||
Class of Stock Disclosures [Abstract] | ||||||
Additional repurchase program, authorized amount | 500,000,000 | [1] | ||||
Accelerated Share Repurchases [Line Items] | ||||||
Repurchases of common stock (in shares) | 2,633,526 | |||||
Treasury Stock Acquired, Average Cost Per Share | $64.77 | |||||
Repurchases of common stock | 170,582,000 | |||||
Tender Offer [Member] | ||||||
Class of Stock Disclosures [Abstract] | ||||||
Additional repurchase program, authorized amount | 350,000,000 | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased, Option to Increase Repurchase Amount, Percentage of Outstanding Shares | 2.00% | |||||
Accelerated Share Repurchases [Line Items] | ||||||
Repurchases of common stock (in shares) | 5,291,701 | [2] | ||||
Treasury Stock Acquired, Average Cost Per Share | $70.07 | [2] | ||||
Repurchases of common stock | 370,789,000 | [2] | ||||
Professional fees paid | $3,720,000 | |||||
[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. | |||||
[2] | Fees and expenses totaling $3.7 million associated with the tender offer do not impact the repurchase program approved by our Board, are excluded from the total purchase price shown here and were recorded as part of the cost of treasury stock in our Consolidated Balance Sheets. |
ShareBased_Payments_Summary_of
Share-Based Payments (Summary of Grant Information) (Details) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Share-based Compensation [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,219 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,090 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payments expense | $13,384 | $16,831 | $19,362 |
Tax benefit on share-based compensation expense | 5,134 | 6,392 | 7,246 |
Per share weighted average grant date fair value of restricted stock granted | $71.37 | $53.94 | $55.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $0 | $53.90 | $27.24 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 3,263 | 10,567 | 10,509 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 13,036 | 12,641 | 11,648 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payments expense | 803 | 1,566 | 2,654 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payments expense | 11,214 | 10,504 | 10,593 |
Content Arrangements [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payments expense | $1,367 | $4,761 | $6,115 |
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, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized Share-Based Payments Expense | $22,618 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized Share-Based Payments Expense | 863 | |
Weighted-Average Remaining Life | 1 year 9 months 6 days | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized Share-Based Payments Expense | 20,714 | |
Weighted-Average Remaining Life | 2 years 1 month 0 days | |
Content Arrangements [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized Share-Based Payments Expense | $1,041 | [1] |
Weighted-Average Remaining Life | 0 years 9 months 0 days | [1] |
[1] | Related to 25,000 shares of restricted stock granted to Sony in connection with extending our existing content license agreement. The unrecognized expense associated with these vested shares is recognized over the agreement term. |
Recovered_Sheet1
Share-Based Payments (Summary Of Stock Option Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
OUTSTANDING, Beginning of year, shares | 248 |
Granted, shares | 0 |
Exercised, shares | -103 |
Cancelled, expired or forfeited, shares | -17 |
OUTSTANDING, Ending balance, shares | 128 |
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 | $45.72 |
Granted, weighted average exercise price | $0 |
Exercised, weighted average exercise price | $36.17 |
Cancelled, expired or forfeited, weighted average exercise price | $52.04 |
OUTSTANDING, Ending balance, weighted average exercise price | $52.59 |
ShareBased_Payments_Schedule_O2
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, 2014 | Dec. 31, 2013 |
Share-based Compensation [Abstract] | ||
Options outstanding, Number | 128 | 248 |
Options outstanding, weighted average per share exercise price | $52.59 | $45.72 |
Options outstanding, aggregate intrinsic value | $2,904 | |
Options outstanding, weighted average remaining contractual term (in years) | 7 years 3 months 22 days | |
Options exercisable, Number | 58 | |
Options exercisable, weighted average per share exercise price | $51.48 | |
Options exercisable, aggregate intrinsic value | $1,384 | |
Options exercisable, weighted average remaining contractual term (in years) | 6 years 9 months 14 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | 597 | ||
Granted (shares) | 347 | ||
Vested, shares | -190 | ||
Forfeited, shares | -145 | ||
NON-VESTED, end of period, shares | 609 | 597 | |
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 | $52.58 | ||
Per share weighted average grant date fair value of restricted stock granted | $71.37 | $53.94 | $55.94 |
Vested, weighted average grant date fair value | $50.41 | ||
Forfeited, weighted average grant date fair value | $59.35 | ||
NON-VESTED, end of period, weighted average grant date fair value | $62.35 | $52.58 |
ShareBased_Payments_Schedule_O3
Share-Based Payments (Schedule Of Information Related To Restricted Stock Granted As Part Of DVD Arrangements) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 347,000 | ||
Vested (shares) | 190,000 | ||
Unvested (shares) | 609,000 | 597,000 | |
Content Arrangements [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 518,348 | ||
Vested (shares) | 473,348 | ||
Unvested (shares) | 45,000 | ||
Sony [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 218,348 | [1] | |
Vested (shares) | 218,348 | [1] | |
Unvested (shares) | 0 | ||
Paramount [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 300,000 | ||
Vested (shares) | 255,000 | ||
Unvested (shares) | 45,000 | [2] | |
Remaining Vesting Period | 0 years 0 months 1 day | [2] | |
[1] | Includes 25,000 shares granted and fully vested in 2014 due to one-year contract extension executed in 2014. | ||
[2] | Vested on January 1, 2015. |
ShareBased_Payments_Rights_to_
Share-Based Payments (Rights to Receive Cash) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining total expected expense | $22,618 |
ecoATM [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2015 | 4,588 |
2016 | 2,953 |
2017 | 513 |
Remaining total expected expense | $8,054 |
ShareBased_Payments_Narrative_
Share-Based Payments (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Jul. 23, 2013 | Dec. 31, 2014 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $22,618,000 | ||
ecoATM [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 8,054,000 | ||
Fair value of original and replacement awards | 32,100,000 | ||
Replacement awards attributable to pre-combination services | 1,400,000 | ||
Expense recognized associated with the issuance of rights to receive cash | 13,300,000 | ||
Content Arrangements [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 1,041,000 | [1] | |
Stock Options [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 863,000 | ||
Restricted Stock [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $20,714,000 | ||
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 | ||
[1] | Related to 25,000 shares of restricted stock granted to Sony in connection with extending our existing content license agreement. The unrecognized expense associated with these vested shares is recognized over the agreement term. |
Restructuring_Amount_Expected_
Restructuring (Amount Expected to be Incurred and Incurred to Date) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
concept | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of discontinued concepts | 4 | |
Restructuring and Related Cost, Incurred Cost | $1,148 | |
Cumulative as of end of period | 7,952 | 6,804 |
Redbox [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 535 | |
Cumulative as of end of period | 4,306 | 3,771 |
Coinstar [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 23 | |
Cumulative as of end of period | 747 | 724 |
Discontinued Operations [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 155 | |
Cumulative as of end of period | 1,026 | 871 |
Discontinued Operations [Member] | Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 435 | |
Cumulative as of end of period | $1,873 | $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, 2014 | Dec. 31, 2013 |
Severance Expense [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $2,508 | $0 |
Costs charged to expense | 713 | 5,366 |
Costs paid or otherwise settled | -3,221 | -2,858 |
Restructuring reserve, ending balance | 0 | 2,508 |
Severance Expense [Member] | Direct Operating Expense [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Costs charged to expense | 410 | 0 |
Severance Expense [Member] | General and administrative [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Costs charged to expense | 148 | 4,495 |
Severance Expense [Member] | Loss from discontinued operations, net of tax [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Costs charged to expense | 155 | 871 |
Other Expenses [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 1,418 | 0 |
Costs charged to expense | 435 | 1,438 |
Costs paid or otherwise settled | -1,853 | -20 |
Restructuring reserve, ending balance | 0 | 1,418 |
Other Expenses [Member] | Direct Operating Expense [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Costs charged to expense | 0 | 0 |
Other Expenses [Member] | General and administrative [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Costs charged to expense | 0 | 0 |
Other Expenses [Member] | Loss from discontinued operations, net of tax [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Costs charged to expense | $435 | $1,438 |
Income_Taxes_Disclosure_Income1
Income Taxes Disclosure - Income Taxes from Continuing Operations (Scheduling of Income from Continuing Operations Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $188,473 | $259,057 | $263,730 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 2,368 | 3,341 | 2,784 |
Income from continuing operations before income taxes | $190,841 | $262,398 | $266,514 |
Income_Taxes_Disclosure_Income2
Income Taxes Disclosure - 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $69,117 | $38,876 | $0 |
Current State and Local Tax Expense (Benefit) | 12,294 | 10,104 | 4,142 |
Current Foreign Tax Expense (Benefit) | 415 | -424 | 7 |
Current Income Tax Expense (Benefit) | 81,826 | 48,556 | 4,149 |
Deferred Federal Income Tax Expense (Benefit) | -16,232 | -3,642 | 87,715 |
Deferred State and Local Income Tax Expense (Benefit) | 427 | -5,653 | 8,002 |
Deferred Foreign Income Tax Expense (Benefit) | 143 | 449 | 345 |
Deferred Income Tax Expense (Benefit) | -15,662 | -8,846 | 96,062 |
Income Tax Expense (Benefit) | $66,164 | $39,710 | $100,211 |
Income_Taxes_Disclosure_Income3
Income Taxes Disclosure - Income Taxes from Continuing Operations (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | |||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 4.10% | 3.90% | 3.90% | |||
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | -1.10% | -0.90% | -0.80% | |||
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Percent | -3.60% | -0.60% | 0.00% | |||
Effective Income Tax Rate Reconciliation, Recognition of Outside Basis Difference, Percent | -1.10% | -15.40% | 0.00% | |||
Effective Income Tax Rate Reconciliation, ecoATM option payments, Percent | 1.40% | 0.70% | 0.00% | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 0.00% | 2.30% | 0.00% | |||
Effective Income Tax Rate Reconciliation, Acquisition of Business, Percent | 0.00% | -9.30% | 0.00% | |||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.00% | -0.60% | -0.50% | |||
Effective Income Tax Rate Reconciliation, Percent | 34.70% | 15.10% | 37.60% | |||
Effective Income Tax Rate Reconciliation, Recognition of Outside Basis Difference, Amount | $16.70 | |||||
Effective Income Tax Rate Reconciliation, Acquisition of Business, Amount | 24.3 | |||||
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount | 17.8 | |||||
Effective Income Tax Rate Reconciliation, Deduction, Other, Percent | 22.40% | |||||
Undistributed Earnings of Foreign Subsidiaries | $18.80 |
Income_Taxes_Disclosure_Income4
Income Taxes Disclosure - Income Taxes from Continuing Operations (Schedule of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2014 | Jan. 01, 2013 | Jan. 01, 2012 | |
Income Tax Disclosure [Abstract] | ||||||
Unrecognized Tax Benefits | $4,639,000 | $2,781,000 | $2,383,000 | $2,781,000 | $2,383,000 | $2,455,000 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 1,836,000 | 824,000 | 0 | |||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 806,000 | 18,000 | 251,000 | |||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | -257,000 | -71,000 | |||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | -784,000 | -49,000 | -252,000 | |||
Tax Adjustments, Settlements, and Unusual Provisions | 0 | -138,000 | 0 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $100,000 |
Income_Taxes_Disclosure_Income5
Income Taxes Disclosure - Income Taxes from Continuing Operations (Schedule of Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of Deferred Tax Liabilities [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $5,690 | $7,347 |
Deferred Tax Assets, Capital Loss Carryforwards | 5,930 | 5,917 |
Deferred Tax Assets, Tax Credit Carryforwards | 2,929 | 2,289 |
Deferred Tax Assets Accrued Liabilities And Allowances | 22,652 | 14,929 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 11,901 | 12,547 |
Deferred Tax Assets, Goodwill and Intangible Assets | 17,166 | 17,252 |
Deferred Tax Assets, Investment in Subsidiaries | 0 | 3,968 |
Deferred Tax Assets, Other | 3,776 | 2,148 |
Deferred Tax Assets, Gross | 70,044 | 66,397 |
Deferred Tax Assets, Valuation Allowance | -6,898 | -6,898 |
Deferred Tax Assets, Net of Valuation Allowance | 63,146 | 59,499 |
Deferred Tax Liabilities, Property, Plant and Equipment | -68,417 | -93,407 |
Deferred Tax Liabilities Product Costs | -43,140 | -40,757 |
Deferred Tax Liabilities Convertible Debt Interest Expense | 0 | -552 |
Deferred Tax Liabilities, Gross | 111,557 | 134,716 |
Deferred Tax Liabilities, Net | $48,411 | $75,217 |
Income_Taxes_Disclosure_Income6
Income Taxes Disclosure - Income Taxes from Continuing Operations (Schedule of Deferred Tax Assets Valuation Allowance) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $0 | $6,898 | $0 |
Income_Taxes_Disclosure_Income7
Income Taxes Disclosure - Income Taxes from Continuing Operations (Schedule of Operating Loss Carry Forwards) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards | $5,690 | $7,347 | |
Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 257 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 90 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 36,457 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 1,286 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 16,448 | ||
Deferred Tax Assets, Operating Loss Carryforwards | $4,314 |
Income_Taxes_Disclosure_Income8
Income Taxes Disclosure - Income Taxes from Continuing Operations (Schedule of Tax Credit Carry Forward) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Tax Credit Carryforward [Line Items] | |
Deferred Tax Assets, Tax Credit Carryforwards, Other | $4,506 |
ILLINOIS | |
Tax Credit Carryforward [Line Items] | |
Deferred Tax Assets, Tax Credit Carryforwards, Other | 3,388 |
CALIFORNIA | |
Tax Credit Carryforward [Line Items] | |
Deferred Tax Assets, Tax Credit Carryforwards, Other | $1,118 |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
concept | |
Discontinued Operations [Abstract] | |
Number of discontinued concepts | 4 |
Discontinued_Operations_Income
Discontinued Operations Income Statement Disclosures of Discontinued Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $11,517 | $11,215 | $3,892 |
Total loss before income tax: | -24,966 | -74,225 | -24,768 |
Total income tax benefit | -6,907 | 26,329 | 8,695 |
Total loss from discontinued operations, net of tax | -18,059 | -47,896 | -16,073 |
Redbox Canada [Member] | |||
Revenue | 11,417 | 6,816 | 1,733 |
Total loss before income tax: | -23,707 | -19,830 | -8,121 |
Total income tax benefit | 6,416 | 5,233 | 2,270 |
Total loss from discontinued operations, net of tax | -17,291 | -14,597 | -5,851 |
Certain New Ventures [Member] | |||
Revenue | 100 | 4,399 | 2,159 |
Total loss before income tax: | -1,259 | -54,395 | -16,647 |
Total income tax benefit | 491 | 21,096 | 6,425 |
Total loss from discontinued operations, net of tax | ($768) | ($33,299) | ($10,222) |
Discontinued_Operations_Redbox
Discontinued Operations Redbox Income Statement Disclosures of Discontinued Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $11,517 | $11,215 | $3,892 |
Amortization of intangible assets | 38 | 26 | 21 |
Total loss before income tax: | -24,966 | -74,225 | -24,768 |
Total income tax benefit | -6,907 | 26,329 | 8,695 |
Total loss from discontinued operations, net of tax | -18,059 | -47,896 | -16,073 |
Redbox Canada [Member] | |||
Revenue | 11,417 | 6,816 | 1,733 |
Direct operating | 20,027 | 18,278 | 6,297 |
Marketing | 2,947 | 2,175 | 1,822 |
Research and development | 0 | 2 | 0 |
General and administrative | 1,078 | 3,088 | 987 |
Depreciation and other | 7,354 | 2,760 | 694 |
Amortization of intangible assets | 38 | 26 | 21 |
Other expense, net | -3,680 | -317 | -33 |
Total loss before income tax: | -23,707 | -19,830 | -8,121 |
Total income tax benefit | 6,416 | 5,233 | 2,270 |
Total loss from discontinued operations, net of tax | ($17,291) | ($14,597) | ($5,851) |
Discontinued_Operations_Redbox1
Discontinued Operations Redbox Significant Operating and Investing Cash Flow Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Total loss from discontinued operations, net of tax | ($18,059) | ($47,896) | ($16,073) |
Redbox Canada [Member] | |||
Total loss from discontinued operations, net of tax | -17,291 | -14,597 | -5,851 |
Depreciation and amortization | 7,392 | 2,786 | 715 |
Content library | -787 | -410 | -659 |
Prepaid and other current assets | -293 | -516 | -3,092 |
Accounts payable | 627 | 644 | -14 |
Accrued payables to retailers | -175 | 247 | 2,023 |
Other accrued liabilities | -122 | 506 | 807 |
Net cash flows from operating activities | -10,649 | -11,340 | -6,071 |
Purchase of property, plant and equipment | -5,494 | -9,330 | -12,098 |
Total cash flows used in investing activities | ($5,494) | ($9,330) | ($12,098) |
Discontinued_Operations_Impair
Discontinued Operations Impairments Related to Discontinued Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impairment expense | $0 | $32,732 | $0 |
Rubi [Member] | |||
Impairment expense | 21,317 | ||
Orango [Member] | |||
Impairment expense | 5,551 | ||
Crisp Market [Member] | |||
Impairment expense | 289 | ||
Star Studio [Member] | |||
Impairment expense | 2,786 | ||
Corporate Assets [Member] | |||
Impairment expense | $2,789 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share Diluted [Line Items] | |||
Weighted average shares used for basic EPS | 20,192 | 27,216 | 30,305 |
Dilutive effect of stock options and other share-based awards | 277 | 447 | 598 |
Dilutive effect of convertible debt | 230 | 718 | 1,271 |
Weighted average shares used for diluted EPS | 20,699 | 28,381 | 32,174 |
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 | 12 | 14 | 139 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||
Revenue | $2,291,586 | $2,299,785 | $2,198,151 | |||
Expenses: | ||||||
Direct operating | 1,581,721 | [1] | 1,556,999 | [1] | 1,492,522 | [1] |
Marketing | 35,293 | 30,227 | 24,157 | |||
Research and development | 13,047 | 13,082 | 6,757 | |||
General and administrative | 190,643 | 220,293 | 203,532 | |||
Segment operating income (loss) | 470,882 | 479,184 | 471,183 | |||
Less: depreciation and amortization | -202,478 | -200,308 | -183,690 | |||
Operating income | 268,404 | 278,876 | 287,493 | |||
Loss from equity method investments, net | -28,734 | 19,928 | -5,184 | |||
Interest expense, net | -47,644 | -32,807 | -15,640 | |||
Other, net | -1,185 | -3,599 | -155 | |||
Income from continuing operations before income taxes | 190,841 | 262,398 | 266,514 | |||
Redbox [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 1,881,718 | 1,967,715 | 1,907,040 | |||
Expenses: | ||||||
Direct operating | 1,318,919 | 1,365,368 | 1,334,602 | |||
Marketing | 20,969 | 20,835 | 18,675 | |||
Research and development | 120 | 76 | 739 | |||
General and administrative | 135,678 | 164,634 | 158,898 | |||
Segment operating income (loss) | 406,032 | 416,802 | 394,126 | |||
Less: depreciation and amortization | -149,236 | -159,851 | -147,353 | |||
Operating income | 256,796 | 256,951 | 246,773 | |||
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 | 256,796 | 256,951 | 246,773 | |||
Coinstar [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 315,628 | 300,218 | 290,761 | |||
Expenses: | ||||||
Direct operating | 161,214 | 158,562 | 155,740 | |||
Marketing | 6,346 | 6,244 | 4,938 | |||
Research and development | 531 | 6,962 | 4,455 | |||
General and administrative | 27,012 | 25,944 | 26,367 | |||
Segment operating income (loss) | 120,525 | 102,506 | 99,261 | |||
Less: depreciation and amortization | -35,471 | -33,921 | -36,108 | |||
Operating income | 85,054 | 68,585 | 63,153 | |||
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 | 85,054 | 68,585 | 63,153 | |||
ecoATM [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 94,187 | 31,824 | 0 | |||
Expenses: | ||||||
Direct operating | 92,182 | 27,271 | 0 | |||
Marketing | 3,513 | 938 | 0 | |||
Research and development | 5,691 | 2,772 | 0 | |||
General and administrative | 12,773 | 7,868 | 0 | |||
Segment operating income (loss) | -19,972 | -7,025 | 0 | |||
Less: depreciation and amortization | -17,031 | -6,077 | 0 | |||
Operating income | -37,003 | -13,102 | 0 | |||
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 | -37,003 | -13,102 | 0 | |||
Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 53 | 28 | 350 | |||
Expenses: | ||||||
Direct operating | 2,821 | 2,162 | 1,317 | |||
Marketing | 1,272 | 651 | 478 | |||
Research and development | 2,854 | 1,897 | 1,229 | |||
General and administrative | 3,522 | 7,683 | 6,283 | |||
Segment operating income (loss) | -10,416 | -12,365 | -8,957 | |||
Less: depreciation and amortization | -740 | -459 | -229 | |||
Operating income | -11,156 | -12,824 | -9,186 | |||
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 | -11,156 | -12,824 | -9,186 | |||
Corporate Unallocated [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | 0 | |||
Expenses: | ||||||
Direct operating | 6,585 | 3,636 | 863 | |||
Marketing | 3,193 | 1,559 | 66 | |||
Research and development | 3,851 | 1,375 | 334 | |||
General and administrative | 11,658 | 14,164 | 11,984 | |||
Segment operating income (loss) | -25,287 | -20,734 | -13,247 | |||
Less: depreciation and amortization | 0 | 0 | 0 | |||
Operating income | -25,287 | -20,734 | -13,247 | |||
Loss from equity method investments, net | -28,734 | 19,928 | -5,184 | |||
Interest expense, net | -47,644 | -32,807 | -15,640 | |||
Other, net | -1,185 | -3,599 | -155 | |||
Income from continuing operations before income taxes | ($102,850) | ($37,212) | ($34,226) | |||
[1] | “Direct operating†excludes depreciation and other of $125.7 million, $129.1 million and $127.0 million for 2014, 2013 and 2012, respectively. |
Business_Segments_and_Enterpri3
Business Segments and Enterprise-Wide Information (Schedule Of Contributions By Major Customers) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Wal-Mart Stores Inc. [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue contributed by major customers | 15.50% | 15.20% | 16.00% |
Walgreen Co. [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue contributed by major customers | 13.80% | 14.70% | 16.10% |
The Kroger Company [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue contributed by major customers | 9.80% | 10.00% | 10.70% |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $2,291,586 | $2,299,785 | $2,198,151 |
Long-Lived Assets | 1,072,075 | 1,185,073 | 1,006,218 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,242,753 | 2,254,790 | 2,154,943 |
Long-Lived Assets | 1,028,516 | 1,141,299 | 975,334 |
All Other Geographic Locations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 48,833 | 44,995 | 43,208 |
Long-Lived Assets | $43,559 | $43,774 | $30,884 |
Retirement_Plans_Disclosure_Re
Retirement Plans Disclosure - Retirement Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $4.30 | $4.90 | $4 |
Fair_Value_Assets_And_Liabilit
Fair Value (Assets And Liabilities Measured At Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | $900 | $65,800 |
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 | 916 | 65,800 |
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 | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Feb. 29, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2009 | Mar. 12, 2013 | Jun. 09, 2014 | Jun. 09, 2011 |
Fair Value Disclosure [Line Items] | |||||||||
Proceeds from Collection of Notes Receivable | $24.80 | ||||||||
Benefit from Release of Indemnification Related Reserve | 2.5 | ||||||||
Convertible Notes | |||||||||
Fair Value Disclosure [Line Items] | |||||||||
Market discount rate | 6.00% | ||||||||
Convertible debt, fair value | 50.5 | ||||||||
Interest rate, per year | 4.00% | 4.00% | |||||||
Senior Notes | Original Notes [Member] | |||||||||
Fair Value Disclosure [Line Items] | |||||||||
Market discount rate | 6.00% | ||||||||
Interest rate, per year | 6.00% | ||||||||
Estimated fair value of senior unsecured notes | 350 | ||||||||
Senior Notes | Senior Unsecured Notes due 2021 | |||||||||
Fair Value Disclosure [Line Items] | |||||||||
Market discount rate | 5.88% | ||||||||
Interest rate, per year | 5.88% | ||||||||
Estimated fair value of senior unsecured notes | 300 | ||||||||
Trademarks [Member] | |||||||||
Fair Value Disclosure [Line Items] | |||||||||
Fair Value Of Trademarks | 30 | ||||||||
Market Royalty Fee Rate | 1.50% | ||||||||
Market discount rate | 45.00% | ||||||||
Notes Receivable [Member] | |||||||||
Fair Value Disclosure [Line Items] | |||||||||
Market discount rate | 18.00% | ||||||||
Money Transfer Business [Member] | |||||||||
Fair Value Disclosure [Line Items] | |||||||||
Cash Received From Sale Of Business | 19.5 | ||||||||
Notes, Loans and Financing Receivable, Gross, Noncurrent | 29.5 | ||||||||
Credit Facility Offered As Part Money Transfer Sale | 4 | ||||||||
Notes Receivable [Member] | |||||||||
Fair Value Disclosure [Line Items] | |||||||||
Asset Impairment Charges | $2.80 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | |
sqft | ||||
Long-term Purchase Commitment [Line Items] | ||||
Purchase commitments | $62,000,000 | |||
Purchases, Margin Reduction of Commitment Amount | 2,100,000 | 7,100,000 | ||
Granted (shares) | 347,000 | |||
Loss Contingency Accrual, Period Increase (Decrease) | 11.4 | |||
Operating Leases, Area | 53,512 | |||
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 | 6,400,000 | |||
Irrevocable standby letters of credit, amount outstanding | 0 | |||
Manufacturing and Service Agreement as Part of Asset Acquisition [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Purchase commitments | 15,800,000 | |||
Purchase obligation, term | 5 years | |||
Minimum margin to be paid | 25,000,000 | |||
Operating Lease [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Lease Extension Period | 5 years | |||
Operating Leases, Rent Expense | $16,800,000 | $12,300,000 | $9,000,000 | |
Paramount [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Granted (shares) | 300,000 | |||
Scenario, Forecast [Member] | Paramount [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Granted (shares) | 50,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies Disclosure - Commitments and Contingencies (Schedule of Capital Leased Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Capital Leased Assets, Gross | $41,336 | $48,992 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | -26,831 | -28,489 |
Capital Leases, Balance Sheet, Assets by Major Class, Net | $14,505 | $20,503 |
Commitments_and_Contingencies_3
Commitments and Contingencies Disclosure - Commitments and Contingencies (Schedule of Minimum Lease Obligations) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $11,475 | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 18,527 | [1] | |
Capital Leases, Future Minimum Payments Due in Two Years | 3,110 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 13,617 | [1] | |
Capital Leases, Future Minimum Payments Due in Three Years | 810 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 11,190 | [1] | |
Capital Leases, Future Minimum Payments Due in Four Years | 311 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 8,808 | [1] | |
Capital Leases, Future Minimum Payments Due in Five Years | 191 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 12,685 | [1] | |
Capital Leases, Future Minimum Payments Due Thereafter | 102 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 8,172 | [1] | |
Capital Leases, Future Minimum Payments Due | 15,999 | ||
Operating Leases, Future Minimum Payments Due | 72,999 | [1] | |
Capital Leases, Future Minimum Payments, Interest Included in Payments | -608 | ||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 15,391 | ||
Capital Lease Obligations, Current | -11,026 | -11,997 | |
Capital Lease Obligations, Noncurrent | $4,365 | $9,364 | |
[1] | Includes all operating leases having an initial or remaining non-cancelable lease term in excess of one year. |
Commitments_and_Contingencies_4
Commitments and Contingencies Disclosure - Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Other Commitments [Line Items] | |
Total | $476,072 |
2015 | 416,683 |
2016 | 59,389 |
Lionsgate [Member] | |
Other Commitments [Line Items] | |
Total | 128,479 |
2015 | 71,472 |
2016 | 57,007 |
Sony [Member] | |
Other Commitments [Line Items] | |
Total | 106,356 |
2015 | 106,356 |
2016 | 0 |
Universal [Member] | |
Other Commitments [Line Items] | |
Total | 99,305 |
2015 | 96,923 |
2016 | 2,382 |
Paramount [Member] | |
Other Commitments [Line Items] | |
Total | 98,773 |
2015 | 98,773 |
2016 | 0 |
Fox [Member] | |
Other Commitments [Line Items] | |
Total | 39,600 |
2015 | 39,600 |
2016 | 0 |
Warner [Member] | |
Other Commitments [Line Items] | |
Total | 3,559 |
2015 | 3,559 |
2016 | $0 |
Commitments_and_Contingencies_5
Commitments and Contingencies Disclosure - Commitments and Contingencies (Revenue Share Commitments) (Details) (Redbox [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Redbox [Member] | |
Revenue Share Commitments [Line Items] | |
Total | $6,627 |
2015 | 3,195 |
2016 | 2,616 |
2017 | 653 |
2018 | $163 |
Guarantor_Subsidiaries_Condens
Guarantor Subsidiaries (Condensed Consolidating Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current Assets: | ||||
Cash and cash equivalents | $242,696 | $371,437 | $282,894 | $341,855 |
Accounts receivable, net of allowances | 48,590 | 50,296 | ||
Content library | 180,121 | 199,868 | ||
Prepaid expenses and other current assets | 39,837 | 84,709 | ||
Intercompany receivables | 0 | 0 | ||
Total current assets | 511,244 | 706,310 | ||
Property and equipment, net | 428,468 | 520,865 | ||
Deferred income taxes | 11,378 | 6,443 | ||
Goodwill and other intangible assets, net | 623,998 | 638,690 | ||
Other long-term assets | 8,231 | 19,075 | ||
Investment in related parties | 0 | 0 | ||
Total assets | 1,583,319 | 1,891,383 | ||
Current Liabilities: | ||||
Accounts payable | 168,633 | 236,018 | ||
Accrued payable to retailers | 126,290 | 134,140 | ||
Other accrued liabilities | 137,126 | 134,127 | ||
Current portion of long-term debt and other long-term liabilities | 20,416 | 103,889 | ||
Deferred income taxes | 21,432 | 23,143 | ||
Intercompany payables | 0 | 0 | ||
Total current liabilities | 473,897 | 631,317 | ||
Long-term debt and other long-term liabilities | 973,669 | 681,403 | ||
Deferred income taxes | 38,375 | 58,528 | ||
Total liabilities | 1,485,941 | 1,371,248 | ||
Commitments and contingencies | ||||
Debt conversion feature | 0 | 1,446 | ||
Stockholders’ Equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 473,592 | 482,481 | ||
Treasury stock | -996,293 | -476,796 | ||
Retained earnings | 620,389 | 513,771 | ||
Accumulated other comprehensive income (loss) | -310 | -767 | ||
Total stockholders’ equity | 97,378 | 518,689 | 549,088 | 513,902 |
Total liabilities and stockholders’ equity | 1,583,319 | 1,891,383 | ||
Reportable Legal Entities | Outerwall Inc. | ||||
Current Assets: | ||||
Cash and cash equivalents | 180,889 | 315,250 | 242,489 | 310,259 |
Accounts receivable, net of allowances | 3,203 | 2,029 | ||
Content library | 0 | 37 | ||
Prepaid expenses and other current assets | 21,442 | 67,664 | ||
Intercompany receivables | 40,762 | 180,100 | ||
Total current assets | 246,296 | 565,080 | ||
Property and equipment, net | 133,923 | 163,747 | ||
Deferred income taxes | 0 | 0 | ||
Goodwill and other intangible assets, net | 249,717 | 251,150 | ||
Other long-term assets | 6,665 | 7,156 | ||
Investment in related parties | 917,234 | 815,243 | ||
Total assets | 1,553,835 | 1,802,376 | ||
Current Liabilities: | ||||
Accounts payable | 12,899 | 17,336 | ||
Accrued payable to retailers | 69,189 | 71,085 | ||
Other accrued liabilities | 59,770 | 59,444 | ||
Current portion of long-term debt and other long-term liabilities | 20,020 | 103,519 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany payables | 309,932 | 315,615 | ||
Total current liabilities | 471,810 | 566,999 | ||
Long-term debt and other long-term liabilities | 949,588 | 661,627 | ||
Deferred income taxes | 35,058 | 45,307 | ||
Total liabilities | 1,456,456 | 1,273,933 | ||
Commitments and contingencies | ||||
Debt conversion feature | 1,446 | |||
Stockholders’ Equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 588,105 | 596,995 | ||
Treasury stock | -996,293 | -476,796 | ||
Retained earnings | 506,360 | 407,959 | ||
Accumulated other comprehensive income (loss) | -793 | -1,161 | ||
Total stockholders’ equity | 97,379 | 526,997 | ||
Total liabilities and stockholders’ equity | 1,553,835 | 1,802,376 | ||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 17,939 | 9,639 | 0 | 0 |
Accounts receivable, net of allowances | 43,874 | 45,672 | ||
Content library | 176,490 | 196,695 | ||
Prepaid expenses and other current assets | 23,923 | 28,234 | ||
Intercompany receivables | 467,181 | 355,418 | ||
Total current assets | 729,407 | 635,658 | ||
Property and equipment, net | 263,412 | 320,296 | ||
Deferred income taxes | 0 | 0 | ||
Goodwill and other intangible assets, net | 374,281 | 387,540 | ||
Other long-term assets | 1,231 | 11,499 | ||
Investment in related parties | -5,114 | 4,825 | ||
Total assets | 1,363,217 | 1,359,818 | ||
Current Liabilities: | ||||
Accounts payable | 153,260 | 215,703 | ||
Accrued payable to retailers | 42,977 | 48,126 | ||
Other accrued liabilities | 74,536 | 71,607 | ||
Current portion of long-term debt and other long-term liabilities | 0 | 3 | ||
Deferred income taxes | 27,961 | 35,292 | ||
Intercompany payables | 121,015 | 154,565 | ||
Total current liabilities | 419,749 | 525,296 | ||
Long-term debt and other long-term liabilities | 22,946 | 18,748 | ||
Deferred income taxes | 3,288 | 13,190 | ||
Total liabilities | 445,983 | 557,234 | ||
Commitments and contingencies | ||||
Debt conversion feature | 0 | |||
Stockholders’ Equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 225,729 | 225,016 | ||
Treasury stock | 0 | 0 | ||
Retained earnings | 691,505 | 577,568 | ||
Accumulated other comprehensive income (loss) | 0 | 0 | ||
Total stockholders’ equity | 917,234 | 802,584 | ||
Total liabilities and stockholders’ equity | 1,363,217 | 1,359,818 | ||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 43,868 | 46,548 | 40,759 | 31,766 |
Accounts receivable, net of allowances | 1,513 | 2,595 | ||
Content library | 3,631 | 3,136 | ||
Prepaid expenses and other current assets | 1,030 | 960 | ||
Intercompany receivables | 0 | 5,093 | ||
Total current assets | 50,042 | 58,332 | ||
Property and equipment, net | 31,133 | 36,822 | ||
Deferred income taxes | 11,378 | 6,412 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Other long-term assets | 335 | 420 | ||
Investment in related parties | 0 | 0 | ||
Total assets | 92,888 | 101,986 | ||
Current Liabilities: | ||||
Accounts payable | 2,474 | 2,979 | ||
Accrued payable to retailers | 14,124 | 14,929 | ||
Other accrued liabilities | 2,820 | 3,076 | ||
Current portion of long-term debt and other long-term liabilities | 396 | 367 | ||
Deferred income taxes | 29 | 0 | ||
Intercompany payables | 76,996 | 70,432 | ||
Total current liabilities | 96,839 | 91,783 | ||
Long-term debt and other long-term liabilities | 1,135 | 1,028 | ||
Deferred income taxes | 29 | 0 | ||
Total liabilities | 98,003 | 92,811 | ||
Commitments and contingencies | ||||
Debt conversion feature | 0 | |||
Stockholders’ Equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 12,393 | 12,393 | ||
Treasury stock | 0 | 0 | ||
Retained earnings | -17,991 | -3,612 | ||
Accumulated other comprehensive income (loss) | 483 | 394 | ||
Total stockholders’ equity | -5,115 | 9,175 | ||
Total liabilities and stockholders’ equity | 92,888 | 101,986 | ||
Eliminations and Consolidation Reclassifications | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | -354 | -170 |
Accounts receivable, net of allowances | 0 | 0 | ||
Content library | 0 | 0 | ||
Prepaid expenses and other current assets | -6,558 | -12,149 | ||
Intercompany receivables | -507,943 | -540,611 | ||
Total current assets | -514,501 | -552,760 | ||
Property and equipment, net | 0 | 0 | ||
Deferred income taxes | 0 | 31 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Investment in related parties | -912,120 | -820,068 | ||
Total assets | -1,426,621 | -1,372,797 | ||
Current Liabilities: | ||||
Accounts payable | 0 | 0 | ||
Accrued payable to retailers | 0 | 0 | ||
Other accrued liabilities | 0 | 0 | ||
Current portion of long-term debt and other long-term liabilities | 0 | 0 | ||
Deferred income taxes | -6,558 | -12,149 | ||
Intercompany payables | -507,943 | -540,612 | ||
Total current liabilities | -514,501 | -552,761 | ||
Long-term debt and other long-term liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 31 | ||
Total liabilities | -514,501 | -552,730 | ||
Commitments and contingencies | ||||
Debt conversion feature | 0 | |||
Stockholders’ Equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | -352,635 | -351,923 | ||
Treasury stock | 0 | 0 | ||
Retained earnings | -559,485 | -468,144 | ||
Accumulated other comprehensive income (loss) | 0 | 0 | ||
Total stockholders’ equity | -912,120 | -820,067 | ||
Total liabilities and stockholders’ equity | ($1,426,621) | ($1,372,797) |
Guarantor_Subsidiaries_Condens1
Guarantor Subsidiaries (Condensed Consolidating Statements of Comprehensive Income) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Condensed Financial Statements, Captions [Line Items] | ||||||
Revenue | $2,291,586 | $2,299,785 | $2,198,151 | |||
Expenses: | ||||||
Direct operating | 1,581,721 | [1] | 1,556,999 | [1] | 1,492,522 | [1] |
Marketing | 35,293 | 30,227 | 24,157 | |||
Research and development | 13,047 | 13,082 | 6,757 | |||
General and administrative | 190,643 | 220,293 | 203,532 | |||
Depreciation and other | 187,824 | 189,401 | 178,333 | |||
Amortization of intangible assets | 14,654 | 10,907 | 5,357 | |||
Total expenses | 2,023,182 | 2,020,909 | 1,910,658 | |||
Operating income (loss) | 268,404 | 278,876 | 287,493 | |||
Other income (expense), net: | ||||||
Loss from equity method investments, net | -28,734 | 19,928 | -5,184 | |||
Interest expense, net | -47,644 | -32,807 | -15,640 | |||
Other, net | -1,185 | -3,599 | -155 | |||
Total other expense, net | -77,563 | -16,478 | -20,979 | |||
Income (loss) from continuing operations before income taxes | 190,841 | 262,398 | 266,514 | |||
Income tax benefit (expense) | -66,164 | -39,710 | -100,211 | |||
Income (loss) from continuing operations | 124,677 | 222,688 | 166,303 | |||
Total loss from discontinued operations, net of tax | -18,059 | -47,896 | -16,073 | |||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | |||
Net income | 106,618 | 174,792 | 150,230 | |||
Foreign currency translation adjustment | 457 | [2],[3] | 856 | [2],[4] | 1,048 | [2],[5] |
Comprehensive income (loss) | 107,075 | 175,648 | 151,278 | |||
Reportable Legal Entities | Outerwall Inc. | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Revenue | 266,848 | 255,251 | 247,906 | |||
Expenses: | ||||||
Direct operating | 142,472 | 138,859 | 137,092 | |||
Marketing | 7,227 | 6,540 | 5,020 | |||
Research and development | 3,456 | 8,973 | 6,018 | |||
General and administrative | 39,435 | 33,747 | 23,442 | |||
Depreciation and other | 35,155 | 28,101 | 30,716 | |||
Amortization of intangible assets | 1,433 | 2,245 | 2,346 | |||
Total expenses | 229,178 | 218,465 | 204,634 | |||
Operating income (loss) | 37,670 | 36,786 | 43,272 | |||
Other income (expense), net: | ||||||
Loss from equity method investments, net | -530 | 65,063 | -2,179 | |||
Interest expense, net | -48,007 | -32,930 | -18,161 | |||
Other, net | 14,077 | -3,868 | 98 | |||
Total other expense, net | -34,460 | 28,265 | -20,242 | |||
Income (loss) from continuing operations before income taxes | 3,210 | 65,051 | 23,030 | |||
Income tax benefit (expense) | -618 | 30,893 | -5,518 | |||
Income (loss) from continuing operations | 2,592 | 95,944 | 17,512 | |||
Total loss from discontinued operations, net of tax | -803 | -30,834 | -8,609 | |||
Equity in income (loss) of subsidiaries | 104,829 | 109,682 | 141,327 | |||
Net income | 106,618 | 174,792 | 150,230 | |||
Foreign currency translation adjustment | 368 | [3] | -105 | [4] | -196 | [5] |
Comprehensive income (loss) | 106,986 | 174,687 | 150,034 | |||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Revenue | 1,975,905 | 1,999,539 | 1,907,037 | |||
Expenses: | ||||||
Direct operating | 1,415,542 | 1,394,932 | 1,334,227 | |||
Marketing | 27,631 | 23,269 | 18,676 | |||
Research and development | 9,591 | 4,111 | 739 | |||
General and administrative | 150,335 | 172,870 | 161,264 | |||
Depreciation and other | 148,217 | 157,292 | 144,341 | |||
Amortization of intangible assets | 13,221 | 8,662 | 3,011 | |||
Total expenses | 1,764,537 | 1,761,136 | 1,662,258 | |||
Operating income (loss) | 211,368 | 238,403 | 244,779 | |||
Other income (expense), net: | ||||||
Loss from equity method investments, net | -28,204 | -45,135 | -3,005 | |||
Interest expense, net | 572 | 257 | 2,554 | |||
Other, net | 1,334 | 479 | -264 | |||
Total other expense, net | -26,298 | -44,399 | -715 | |||
Income (loss) from continuing operations before income taxes | 185,070 | 194,004 | 244,064 | |||
Income tax benefit (expense) | -64,989 | -70,577 | -94,138 | |||
Income (loss) from continuing operations | 120,081 | 123,427 | 149,926 | |||
Total loss from discontinued operations, net of tax | -874 | -2,708 | -2,244 | |||
Equity in income (loss) of subsidiaries | -14,378 | -11,037 | -6,355 | |||
Net income | 104,829 | 109,682 | 141,327 | |||
Foreign currency translation adjustment | 0 | [3] | 0 | [4] | 0 | [5] |
Comprehensive income (loss) | 104,829 | 109,682 | 141,327 | |||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Revenue | 48,833 | 44,995 | 43,208 | |||
Expenses: | ||||||
Direct operating | 23,707 | 36,155 | 39,541 | |||
Marketing | 435 | 418 | 461 | |||
Research and development | 0 | -2 | 0 | |||
General and administrative | 873 | 721 | 494 | |||
Depreciation and other | 4,452 | 4,008 | 3,276 | |||
Amortization of intangible assets | 0 | 0 | 0 | |||
Total expenses | 29,467 | 41,300 | 43,772 | |||
Operating income (loss) | 19,366 | 3,695 | -564 | |||
Other income (expense), net: | ||||||
Loss from equity method investments, net | 0 | 0 | 0 | |||
Interest expense, net | -209 | -134 | -33 | |||
Other, net | -16,596 | -218 | 17 | |||
Total other expense, net | -16,805 | -352 | -16 | |||
Income (loss) from continuing operations before income taxes | 2,561 | 3,343 | -580 | |||
Income tax benefit (expense) | -557 | -26 | -555 | |||
Income (loss) from continuing operations | 2,004 | 3,317 | -1,135 | |||
Total loss from discontinued operations, net of tax | -16,382 | -14,354 | -5,220 | |||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | |||
Net income | -14,378 | -11,037 | -6,355 | |||
Foreign currency translation adjustment | 89 | [3] | 961 | [4] | 1,244 | [5] |
Comprehensive income (loss) | -14,289 | -10,076 | -5,111 | |||
Eliminations and Consolidation Reclassifications | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Revenue | 0 | 0 | 0 | |||
Expenses: | ||||||
Direct operating | 0 | -12,947 | -18,338 | |||
Marketing | 0 | 0 | 0 | |||
Research and development | 0 | 0 | 0 | |||
General and administrative | 0 | 12,955 | 18,332 | |||
Depreciation and other | 0 | 0 | 0 | |||
Amortization of intangible assets | 0 | 0 | 0 | |||
Total expenses | 0 | 8 | -6 | |||
Operating income (loss) | 0 | -8 | 6 | |||
Other income (expense), net: | ||||||
Loss from equity method investments, net | 0 | 0 | 0 | |||
Interest expense, net | 0 | 0 | 0 | |||
Other, net | 0 | 8 | -6 | |||
Total other expense, net | 0 | 8 | -6 | |||
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | |||
Income tax benefit (expense) | 0 | 0 | 0 | |||
Income (loss) from continuing operations | 0 | 0 | 0 | |||
Total loss from discontinued operations, net of tax | 0 | 0 | 0 | |||
Equity in income (loss) of subsidiaries | -90,451 | -98,645 | -134,972 | |||
Net income | -90,451 | -98,645 | -134,972 | |||
Foreign currency translation adjustment | 0 | [3] | 0 | [4] | 0 | [5] |
Comprehensive income (loss) | ($90,451) | ($98,645) | ($134,972) | |||
[1] | “Direct operating†excludes depreciation and other of $125.7 million, $129.1 million and $127.0 million for 2014, 2013 and 2012, respectively. | |||||
[2] | Foreign currency translation adjustment had no tax effect in 2014, 2013 and 2012. | |||||
[3] | Foreign currency translation adjustment had no tax effect in 2014. | |||||
[4] | Foreign currency translation adjustment had no tax effect in 2013. | |||||
[5] | Foreign currency translation adjustment had no tax effect in 2012. |
Guarantor_Subsidiaries_Condens2
Guarantor Subsidiaries (Condensed Consolidating Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
concept | ||||||
Operating Activities: | ||||||
Net income | $106,618 | $174,792 | $150,230 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation and other | 195,162 | 193,700 | 179,147 | |||
Amortization of Intangible Assets Including Discontinued Operations | 14,692 | 10,933 | 5,378 | |||
Share-based payments expense | 13,384 | 16,831 | 19,362 | |||
Windfall excess tax benefits related to share-based payments | -1,964 | -3,698 | -5,740 | |||
Deferred income taxes | -22,611 | -10,933 | 87,573 | |||
Impairment expense | 0 | 32,732 | 0 | |||
(Income) loss from equity method investments, net | 28,734 | -19,928 | 5,184 | |||
Amortization of deferred financing fees and debt discount | 4,116 | 6,394 | 9,235 | |||
Loss from early extinguishment of debt | 2,018 | 6,013 | 953 | |||
Other | -1,750 | -2,039 | -5,053 | |||
Equity in (income) losses of subsidiaries | 0 | 0 | 0 | |||
Cash flows from changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 8,671 | 7,978 | -17,061 | |||
Content library | 19,747 | -22,459 | -30,693 | |||
Prepaid expenses and other current assets | 44,282 | -50,542 | -6,963 | |||
Other assets | 1,702 | 230 | 858 | |||
Accounts payable | -68,912 | 1,491 | 60,104 | |||
Accrued payable to retailers | -6,847 | -4,088 | 10,461 | |||
Other accrued liabilities | 1,309 | -9,573 | 2,787 | |||
Net Cash Provided by (Used in) Operating Activities | 338,351 | [1] | 327,834 | [1] | 465,762 | [1] |
Investing Activities: | ||||||
Purchases of property and equipment | -97,924 | -161,412 | -209,910 | |||
Proceeds from sale of property and equipment | 1,977 | 13,344 | 1,131 | |||
Acquisition of business, net of cash acquired | 0 | 244,036 | 0 | |||
Receipt of note receivable principal | 0 | 22,913 | 0 | |||
Cash paid for equity investments | -24,500 | -28,000 | -39,727 | |||
Payments for (Proceeds from) Other Investing Activities | 5,000 | 0 | 0 | |||
Investments in and advances to affiliates | 0 | 0 | 0 | |||
Net Cash Provided by (Used in) Investing Activities | -115,447 | [1] | -397,191 | [1] | -348,506 | [1] |
Financing Activities: | ||||||
Proceeds from issuance of senior unsecured notes | 295,500 | 343,769 | 0 | |||
Proceeds from new borrowing on Credit Facility | 642,000 | 400,000 | 0 | |||
Principal payments on Credit Facility | -680,125 | -215,313 | -10,938 | |||
Payments of Financing Costs | 2,911 | [2] | 2,203 | 0 | ||
Settlement and conversion of convertible debt | -51,149 | -172,211 | -20,575 | |||
Repurchases of common stock | -545,091 | [3] | -195,004 | -139,724 | ||
Principal payments on capital lease obligations and other debt | -13,996 | -14,834 | -16,392 | |||
Windfall excess tax benefits related to share-based payments | 1,964 | 3,698 | 5,740 | |||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | -520 | 8,460 | 4,592 | |||
Net Cash Provided by (Used in) Financing Activities | -354,328 | [1] | 156,362 | [1] | -177,297 | [1] |
Effect of Exchange Rate on Cash and Cash Equivalents | 2,683 | 1,538 | 1,080 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | -128,741 | 88,543 | -58,961 | [1] | ||
Cash and cash equivalents: | ||||||
Beginning of period | 371,437 | 282,894 | 341,855 | |||
End of period | 242,696 | 371,437 | 282,894 | |||
Number of discontinued concepts | 4 | |||||
Reportable Legal Entities | Outerwall Inc. | ||||||
Operating Activities: | ||||||
Net income | 106,618 | 174,792 | 150,230 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation and other | 35,139 | 29,640 | 30,836 | |||
Amortization of Intangible Assets Including Discontinued Operations | 1,433 | 2,245 | 2,346 | |||
Share-based payments expense | 9,693 | 9,903 | 10,998 | |||
Windfall excess tax benefits related to share-based payments | -1,964 | -3,698 | -5,740 | |||
Deferred income taxes | 304 | 9,228 | 18,578 | |||
Impairment expense | 32,444 | |||||
(Income) loss from equity method investments, net | 530 | -65,063 | 2,179 | |||
Amortization of deferred financing fees and debt discount | 4,116 | 6,394 | 9,235 | |||
Loss from early extinguishment of debt | 2,018 | 6,013 | 953 | |||
Other | -1,250 | 827 | -2,343 | |||
Equity in (income) losses of subsidiaries | -104,829 | -109,682 | -141,327 | |||
Cash flows from changes in operating assets and liabilities: | ||||||
Accounts receivable, net | -1,130 | -1,144 | -371 | |||
Content library | 36 | 1,093 | -673 | |||
Prepaid expenses and other current assets | 40,826 | -43,762 | 1,386 | |||
Other assets | 75 | 201 | 39 | |||
Accounts payable | -3,017 | 1,319 | 815 | |||
Accrued payable to retailers | -1,896 | -6,181 | 7,432 | |||
Other accrued liabilities | -840 | 13,184 | -5,008 | |||
Net Cash Provided by (Used in) Operating Activities | 85,862 | [1] | 57,753 | [1] | 79,565 | [1] |
Investing Activities: | ||||||
Purchases of property and equipment | -33,602 | -58,763 | -64,423 | |||
Proceeds from sale of property and equipment | 750 | 12,147 | 302 | |||
Acquisition of business, net of cash acquired | 244,036 | |||||
Receipt of note receivable principal | 22,913 | |||||
Cash paid for equity investments | 0 | 0 | -10,877 | |||
Payments for (Proceeds from) Other Investing Activities | 0 | |||||
Investments in and advances to affiliates | 166,145 | 125,856 | 96,990 | |||
Net Cash Provided by (Used in) Investing Activities | 133,293 | [1] | -141,883 | [1] | 21,992 | [1] |
Financing Activities: | ||||||
Proceeds from issuance of senior unsecured notes | 295,500 | 343,769 | ||||
Proceeds from new borrowing on Credit Facility | 642,000 | 400,000 | ||||
Principal payments on Credit Facility | -680,125 | -215,313 | -10,938 | |||
Payments of Financing Costs | 2,911 | 2,203 | ||||
Settlement and conversion of convertible debt | -51,149 | -172,211 | -20,575 | |||
Repurchases of common stock | -545,091 | -195,004 | -139,724 | |||
Principal payments on capital lease obligations and other debt | -13,552 | -14,200 | -8,226 | |||
Windfall excess tax benefits related to share-based payments | 1,964 | 3,698 | 5,740 | |||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | -520 | 8,460 | 4,592 | |||
Net Cash Provided by (Used in) Financing Activities | -353,884 | [1] | 156,996 | [1] | -169,131 | |
Effect of Exchange Rate on Cash and Cash Equivalents | 368 | -105 | -196 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | -134,361 | 72,761 | -67,770 | [1] | ||
Cash and cash equivalents: | ||||||
Beginning of period | 315,250 | 242,489 | 310,259 | |||
End of period | 180,889 | 315,250 | 242,489 | |||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||||||
Operating Activities: | ||||||
Net income | 104,829 | 109,682 | 141,327 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation and other | 150,904 | 158,801 | 144,805 | |||
Amortization of Intangible Assets Including Discontinued Operations | 13,259 | 8,688 | 3,032 | |||
Share-based payments expense | 3,691 | 6,928 | 8,364 | |||
Windfall excess tax benefits related to share-based payments | 0 | 0 | 0 | |||
Deferred income taxes | -17,232 | -15,727 | 70,607 | |||
Impairment expense | 288 | |||||
(Income) loss from equity method investments, net | 28,204 | 45,135 | 3,005 | |||
Amortization of deferred financing fees and debt discount | 0 | 0 | 0 | |||
Loss from early extinguishment of debt | 0 | 0 | 0 | |||
Other | -548 | -2,951 | -2,720 | |||
Equity in (income) losses of subsidiaries | 14,378 | 11,037 | 6,355 | |||
Cash flows from changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 8,787 | 10,639 | -15,787 | |||
Content library | 20,206 | -23,357 | -27,079 | |||
Prepaid expenses and other current assets | 3,753 | -6,280 | -8,159 | |||
Other assets | 1,558 | 400 | 848 | |||
Accounts payable | -65,737 | -408 | 57,527 | |||
Accrued payable to retailers | -5,149 | 1,633 | 1,025 | |||
Other accrued liabilities | 1,988 | -22,751 | 7,520 | |||
Net Cash Provided by (Used in) Operating Activities | 262,891 | [1] | 281,757 | [1] | 390,670 | [1] |
Investing Activities: | ||||||
Purchases of property and equipment | -57,909 | -88,431 | -132,528 | |||
Proceeds from sale of property and equipment | 1,227 | 1,189 | 782 | |||
Acquisition of business, net of cash acquired | 0 | |||||
Receipt of note receivable principal | 0 | |||||
Cash paid for equity investments | -24,500 | -28,000 | -28,850 | |||
Payments for (Proceeds from) Other Investing Activities | 5,000 | |||||
Investments in and advances to affiliates | -178,406 | -156,659 | -122,272 | |||
Net Cash Provided by (Used in) Investing Activities | -254,588 | [1] | -271,901 | [1] | -382,868 | [1] |
Financing Activities: | ||||||
Proceeds from issuance of senior unsecured notes | 0 | 0 | ||||
Proceeds from new borrowing on Credit Facility | 0 | 0 | ||||
Principal payments on Credit Facility | 0 | 0 | 0 | |||
Payments of Financing Costs | 0 | 0 | ||||
Settlement and conversion of convertible debt | 0 | 0 | 0 | |||
Repurchases of common stock | 0 | 0 | 0 | |||
Principal payments on capital lease obligations and other debt | -3 | -217 | -7,802 | |||
Windfall excess tax benefits related to share-based payments | 0 | 0 | 0 | |||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | 0 | 0 | 0 | |||
Net Cash Provided by (Used in) Financing Activities | -3 | [1] | -217 | [1] | -7,802 | |
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | 0 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | 8,300 | 9,639 | 0 | [1] | ||
Cash and cash equivalents: | ||||||
Beginning of period | 9,639 | 0 | 0 | |||
End of period | 17,939 | 9,639 | 0 | |||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||||
Operating Activities: | ||||||
Net income | -14,378 | -11,037 | -6,355 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation and other | 9,119 | 5,259 | 3,506 | |||
Amortization of Intangible Assets Including Discontinued Operations | 0 | 0 | 0 | |||
Share-based payments expense | 0 | 0 | 0 | |||
Windfall excess tax benefits related to share-based payments | 0 | 0 | 0 | |||
Deferred income taxes | -5,683 | -4,434 | -1,612 | |||
Impairment expense | 0 | |||||
(Income) loss from equity method investments, net | 0 | 0 | 0 | |||
Amortization of deferred financing fees and debt discount | 0 | 0 | 0 | |||
Loss from early extinguishment of debt | 0 | 0 | 0 | |||
Other | 48 | 31 | 10 | |||
Equity in (income) losses of subsidiaries | 0 | 0 | 0 | |||
Cash flows from changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 1,014 | -1,517 | -903 | |||
Content library | -495 | -195 | -2,941 | |||
Prepaid expenses and other current assets | -297 | -500 | -190 | |||
Other assets | 69 | -371 | -29 | |||
Accounts payable | -158 | 226 | 1,946 | |||
Accrued payable to retailers | 198 | 460 | 2,004 | |||
Other accrued liabilities | 161 | -6 | 275 | |||
Net Cash Provided by (Used in) Operating Activities | -10,402 | [1] | -12,084 | [1] | -4,289 | [1] |
Investing Activities: | ||||||
Purchases of property and equipment | -6,413 | -14,218 | -12,959 | |||
Proceeds from sale of property and equipment | 0 | 8 | 47 | |||
Acquisition of business, net of cash acquired | 0 | |||||
Receipt of note receivable principal | 0 | |||||
Cash paid for equity investments | 0 | 0 | 0 | |||
Payments for (Proceeds from) Other Investing Activities | 0 | |||||
Investments in and advances to affiliates | 12,261 | 30,857 | 25,282 | |||
Net Cash Provided by (Used in) Investing Activities | 5,848 | [1] | 16,647 | [1] | 12,370 | [1] |
Financing Activities: | ||||||
Proceeds from issuance of senior unsecured notes | 0 | 0 | ||||
Proceeds from new borrowing on Credit Facility | 0 | 0 | ||||
Principal payments on Credit Facility | 0 | 0 | 0 | |||
Payments of Financing Costs | 0 | 0 | ||||
Settlement and conversion of convertible debt | 0 | 0 | 0 | |||
Repurchases of common stock | 0 | 0 | 0 | |||
Principal payments on capital lease obligations and other debt | -441 | -417 | -364 | |||
Windfall excess tax benefits related to share-based payments | 0 | 0 | 0 | |||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | 0 | 0 | 0 | |||
Net Cash Provided by (Used in) Financing Activities | -441 | [1] | -417 | [1] | -364 | |
Effect of Exchange Rate on Cash and Cash Equivalents | 2,315 | 1,643 | 1,276 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | -2,680 | 5,789 | 8,993 | [1] | ||
Cash and cash equivalents: | ||||||
Beginning of period | 46,548 | 40,759 | 31,766 | |||
End of period | 43,868 | 46,548 | 40,759 | |||
Eliminations and Consolidation Reclassifications | ||||||
Operating Activities: | ||||||
Net income | -90,451 | -98,645 | -134,972 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation and other | 0 | 0 | 0 | |||
Amortization of Intangible Assets Including Discontinued Operations | 0 | 0 | 0 | |||
Share-based payments expense | 0 | 0 | 0 | |||
Windfall excess tax benefits related to share-based payments | 0 | 0 | 0 | |||
Deferred income taxes | 0 | 0 | 0 | |||
Impairment expense | 0 | |||||
(Income) loss from equity method investments, net | 0 | 0 | 0 | |||
Amortization of deferred financing fees and debt discount | 0 | 0 | 0 | |||
Loss from early extinguishment of debt | 0 | 0 | 0 | |||
Other | 0 | 54 | 0 | |||
Equity in (income) losses of subsidiaries | 90,451 | 98,645 | 134,972 | |||
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 | 0 | 354 | -184 | |||
Accrued payable to retailers | 0 | 0 | 0 | |||
Other accrued liabilities | 0 | 0 | 0 | |||
Net Cash Provided by (Used in) Operating Activities | 0 | [1] | 408 | [1] | -184 | [1] |
Investing Activities: | ||||||
Purchases of property and equipment | 0 | 0 | 0 | |||
Proceeds from sale of property and equipment | 0 | 0 | 0 | |||
Acquisition of business, net of cash acquired | 0 | |||||
Receipt of note receivable principal | 0 | |||||
Cash paid for equity investments | 0 | 0 | 0 | |||
Payments for (Proceeds from) Other Investing Activities | 0 | |||||
Investments in and advances to affiliates | 0 | -54 | 0 | |||
Net Cash Provided by (Used in) Investing Activities | 0 | [1] | -54 | [1] | 0 | [1] |
Financing Activities: | ||||||
Proceeds from issuance of senior unsecured notes | 0 | 0 | ||||
Proceeds from new borrowing on Credit Facility | 0 | 0 | ||||
Principal payments on Credit Facility | 0 | 0 | 0 | |||
Payments of Financing Costs | 0 | 0 | ||||
Settlement and conversion of convertible debt | 0 | 0 | 0 | |||
Repurchases of common stock | 0 | 0 | 0 | |||
Principal payments on capital lease obligations and other debt | 0 | 0 | 0 | |||
Windfall excess tax benefits related to share-based payments | 0 | 0 | 0 | |||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | 0 | 0 | 0 | |||
Net Cash Provided by (Used in) Financing Activities | 0 | [1] | 0 | [1] | 0 | |
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | 0 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 354 | -184 | [1] | ||
Cash and cash equivalents: | ||||||
Beginning of period | 0 | -354 | -170 | |||
End of period | 0 | 0 | -354 | |||
NCR Asset Acquisition [Member] | ||||||
Investing Activities: | ||||||
Acquisition of business, net of cash acquired | 100,000 | |||||
NCR Asset Acquisition [Member] | Reportable Legal Entities | Outerwall Inc. | ||||||
Investing Activities: | ||||||
Acquisition of business, net of cash acquired | 0 | |||||
NCR Asset Acquisition [Member] | Reportable Legal Entities | Combined Guarantor Subsidiaries | ||||||
Investing Activities: | ||||||
Acquisition of business, net of cash acquired | 100,000 | |||||
NCR Asset Acquisition [Member] | Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||||
Investing Activities: | ||||||
Acquisition of business, net of cash acquired | 0 | |||||
NCR Asset Acquisition [Member] | Eliminations and Consolidation Reclassifications | ||||||
Investing Activities: | ||||||
Acquisition of business, net of cash acquired | $0 | |||||
[1] | During the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, 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. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. | |||||
[2] | Total financing costs associated with the Credit Facility and senior unsecured notes issued in the second quarter of 2014 were $8.2 million composed of non-cash debt issue costs of $4.5 million recorded as debt discount associated with our issuance of $300.0 million senior unsecured notes due 2021, $1.5 million in deferred financing fees associated with the senior unsecured notes, and $2.2 million in deferred financing fees associated with the refinancing of our credit facility. The cash payments for financing costs associated with the Credit Facility and senior unsecured notes in 2014 were $2.9 million. The remaining accrued balance of the total financing cost as of December 31, 2014 was $0.8 million. | |||||
[3] | The total cost of repurchases of common stock in 2014 was $545.1 million, which includes $3.7 million in fees and expenses relating to the tender offer recorded as part of the cost of treasury stock in our Consolidated Balance Sheets. The cash payments for the tender offer fees in 2014 were $3.7 million. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 36 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 23, 2015 | Mar. 31, 2015 | Feb. 29, 2012 | Dec. 31, 2014 | Feb. 03, 2015 | ||||
Subsequent Event [Line Items] | |||||||||||
Income tax benefit (expense) | ($66,164,000) | ($39,710,000) | ($100,211,000) | ||||||||
Long-term Purchase Commitment, Amount | 62,000,000 | ||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 163,655,000 | [1] | 201,291,000 | [1] | 163,655,000 | [1] | |||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 1,500,000 | ||||||||||
Dividends Payable, Date Declared | 3-Feb-15 | ||||||||||
Additional repurchase program, authorized amount | 250,000,000 | ||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 413,700,000 | ||||||||||
Common Stock, Dividends, Per Share, Declared | $0.30 | ||||||||||
Dividends Payable, Date to be Paid | 18-Mar-15 | ||||||||||
Dividends Payable, Date of Record | 3-Mar-15 | ||||||||||
Redbox Instant By Verizon [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payments to Acquire Interest in Joint Venture | $24,500,000 | $28,000,000 | $24,500,000 | $14,000,000 | $77,000,000 | ||||||
[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. |